Zenith Capital Planning to Establish its Holding Group And Raise IPO in H.K.
On May 14th, Tonghua Grape Wine Co.,Ltd released an announcement, bringing Jilin Province Ten-billion Pharmaceutical Industry Investment Fund established by Beijing Zenith Taifu Investment Management Co.,Ltd, Jilin Province Investment Group Co,.Ltd and Tonghua Grape Wine Co.,Ltd to the public. Dr. Ding Jack, President of Zenith Capital has made remarks on that when he was interviewed by the reporter of Securities Times. Preparations have been made for Jilin Province Pharmaceutical Industry Fund for over a half year. Now, the limited partnership agreement is signed and the registration is being processed.
In fact, Zenith Capital has other goals. According to Dr. Ding Jack’s introduction, they plan to set up Zenith Financial Holding Group and the company is expected to be listed in Hong Kong before the end of this year. As it is shown in Tonghua Grape Wine Co.,Ltd’s announcement, Jilin Province Pharmaceutical Industry Fund plans to raise 10 billion yuan. Zenith Capital, as its general partner, plans to contribute 200 million. Its limited partner, Jilin Province Investment Group Co.,Ltd plans to contribute 800 million and Tonghua Grape Wine Co.,Ltd plans to contribute 200 million. The rest fund will be non-publicly collected by other specified objects and its fund manager is responsible for that.
As far as we know, Jilin Province Pharmaceutical Industry Fund cooperates with Jilin Province Investment Group Co.,Ltd, Angel Capital and Venture Capital of Zenith Capital and has echelon investment, parallel investment, joint investment and other investment portfolios to realize the continuity of project life cycles, relay attention and development, promote the incubation of early projects and the development of mature projects scientifically and in good order.
When we refer to the reason for establishing the pharmaceutical industry fund in Jilin, Dr. Ding Jack expressed, “At first, the healthcare industry is counter-cyclical, benefiting from economic structural adjustment, consumption upgrade, improving life quality and life-time dilation. Next, Jilin province features medicine and has formed the combination of teaching, scientific researches, medicine design and production, the matching pharmaceutical industry system of APIs, pharmaceutical intermediates, preparations, medical apparatus and instruments, pharmaceutical excipients, medicinal packages and pharmaceutical machinery, has sprung up a batch of unique pharmaceutical enterprises and regional industrial clusters, such as, Xiuzheng Pharmaceutical Group, Tonghua Dongbao Pharmaceutical Co.,Ltd, Jinlin Aodong Yanbian Pharmaceutical Co.,Ltd, Changchun High & New Technology Industry (Group)Inc. Yisheng Pharmaceutical Company, etc. For historical reasons, the development of Jilin province’s pharmaceutical industry lacks viable long-term marketized capital use solutions. The structure of Jilin province’s pharmaceutical industry is very loose and it is in urgent need of the core power that comes from the pharmaceutical industry integration driven by marketized capital.” And Dr. Ding Jack described Chinese current pharmaceutical industry as a giant but unable to walk upright, “The industry scale is very big but the core of the industry is not ours.” Due to the R & D cycle, R & D expenditures and other factors, small and medium-sized pharmaceutical enterprises at home research and develop less medicine and most of them start from generic drugs. Most Class 1 and Class 2 western medicine falls into generic drugs. Therefore, Dr. Ding Jack said, Jilin Province Pharmaceutical Industry Fund would arrange some money for investing research and development pharmaceutical enterprises to fundamentally promote the upgrading of the pharmaceutical industry.
From Dr. Ding Jack’s introduction, Zenith Capital has invested in Private Doctor, Online Medical System, Bridge Health Database, Health Products and other areas, including Medical Beauty and Medical Plastic under negotiation. Zenith Capital engrafts and integrates its internal resources in its invested companies to produce synergy effects. He also said, “At present, Jilin Province Pharmaceutical Industry Fund is following up a huge investment, whose scale will come to billions. In the future, Jilin Province Pharmaceutical Industry Fund will cooperate with listed companies, such as Tonghua Grape Wine Co.,Ltd and promote the pharmaceutical industry of Jilin province upgrade and integration with the help of the capital market.”
Based on the introduction of the official website, the current asset scale in China of Zenith Capital has exceeded 5 billion yuan, involving health industry based on biological pharmacy, energy industry focusing on renewable energy sources, cloud computing and Internet, Online financing, energy efficiency and environmental protection, new materials, aerospace, seas and oceans, advanced equipment manufacturing, new energy automobile, high-tech service industry and other strategic emerging industries and the upgraded and reformed traditional industries through high and new technologies. And with the establishment of Jilin Province Pharmaceutical Industry Fund, the asset scale of Zenith Capital will further increase to 15 billion yuan.
Besides, according toDr. Ding Jack’s introduction, Zenith Capital plans to set up Zenith Financial Holding Group and Zenith Financial Research Institute this year. The good-quality assets of Zenith Capital will turn over to Zenith Financial Holding Group for unified management. The asset under management of Zenith Financial Holding Group will come to twenty billion yuan after completing the integration. He also said, “Zenith Financial Holding Group is expected to be listed in Hong Kong before the end of 2016.”