Lenovo Investment Li Jiaqing: A new game of entrepreneurial gene consumption in mind

Li Jiaqing joined Lenovo Investment in 2001 and was promoted to managing director in 2007, as a member of the Investment decision-making committee and head of the Shanghai office, focusing on all the investment themes covered by Lenovo investment.　　Li Jiaqing joined Lenovo in 1998, and was the new business development manager of Lenovo Group.　　At present, Li Jiaqing as Suzhou Angie Technology Co., Ltd. (002635.SZ), Yunnan Hongxiang Pharmaceutical Co., Ltd., such as a series of Lenovo investment enterprise directors. Li Jiaqing has a double degree in mechanical Engineering/economic management at Tsinghua University, Master of Management engineering of Tsinghua University and MBA from Paris.　　As an investor, the key is to judge the different links in an industrial chain, where it is necessary to advance into the ' hit point ', to capture the first sexual opportunities, which links need to invest in the present, must have a systematic investment strategy. Lenovo Investment, founded in 2001, may not be a "star-building" institution for investors ' careers.　　In this management of more than 13 billion yuan fund scale team, born Lenovo Group Business unit, 2001 joined Lenovo Investment, 2003 since the company in east China "open Xinjiang" Li Jiaqing more low-key. [Page] does not rely on the capital market short-term arbitrage Lenovo Investment and Lenovo Group, Hong Yi Investment and Finance branch of Lenovo Holdings of the company. Lenovo's ten-year investment is also equivalent to the growth history of Chinese local VCs, from the dotcom bubble of the early century to a massive invasion of foreign investment and to local PE springing up.　　The Lenovo-born investment agency extends from TMT's strengths to health care, clean technology, consumer industries, modern services, and advanced manufacturing. Ten years ago, the establishment of the institution began with Lenovo's "first gun" in the investment community, the first group of people almost all from the old Lenovo, inherited the manufacturing enterprise "from 10% Gross margin to earn 2% net profit" pragmatic style and cautious thinking, for the later focus on private equity investment (PE) of the establishment of Hong-Yi Investment laid a foundation,　　Turn Lenovo into a more diversified investment-holding platform. In 2011, Lenovo invested in the fifth dollar Fund and the second Renminbi fund, and the two funds combined to reach about $1 billion trillion. As one of the largest investors, the National Social Security Fund is once again involved in the Yuan fund of Lenovo Investment. This makes Lenovo's investment in the current management of the amount of money reached about 13 billion yuan. Lenovo invested more than 150 companies over the past decade.　　According to the information, 20 companies listed on the New York Stock Exchange, Nasdaq, HKEX, Taiwan Stock Exchange, Shenzhen and Gem, Shanghai Stock Exchange Main board, and more than 10 enterprises through the merger method to achieve exit. "Lenovo investment is not a new company, in a fund financing, options, investment, cultivation, exit the complete process is more mature, ten years of investment rhythm almost no big changes." No matter which capital market is hot, we all insist on global financing, investment in China, globalExit。 "As the first" veteran ", Li Jiaqing told reporters that Lenovo's fund cycle is usually 8-10 years, the investment period of 3 years. More than half of the projects focus on the earlier projects. In 2011, Lenovo completed investments in over 30 projects. There are 5 projects completed throughout the year, "because of the capital market, more slowly than the expected pace of the listing, but our enterprises, regardless of the speed of listing, to ensure that the business norms, health, sustainable development."　　The steady-mannered investor said.　　In the current overall economic environment, Li Jiaqing that the relatively long investment cycle, the relatively slow pace of listing will continue in 2012, this may be the normal short-term, it is difficult to rely on the capital market short-term arbitrage to make easy profits. Many of the projects invested by Li Jiaqing are related to the consumption, service and industry upgrades with certain innovative models. In the last two years of the big hot electricity business, Lenovo investment in a number of investment cases, but "no large-scale intervention platform-type project", more is the continuation of the offline consumer investment methods, investment has a brand, channels and in the supply chain has accumulated enterprises,　　Just combine the characteristics of the Internet to the supply chain and marketing aspects of targeted adjustments. "It takes time to breed a product brand. "The main focus of the Li Jiaqing is on the platform project, relying on a lot of money to attract initial passenger flow and create stickiness," he said. And we do not hit short-term in this field, prudent investment in purely capital-driven projects. Lenovo has a very successful investment history and accumulated a lot of experience in the field of consumption. How to create a product supply chain, how to carry out brand building and management, what kind of it information system and the chain mode, and so on, we can still replicate these experiences in online investment. 2012 to 2013 will also actively invest in this area, the perspective is the channel model and business model innovation of the traditional industries. "In the field of electricity and mobile internet, Li Jiaqing uses the" Shuangfeng curve "to explain its investment philosophy. When an industry began to appear interest point aroused public attention, generally considered to enter the "Shuangfeng curve" of the first band. In the process, a group of companies have been quick to invest, quick to make a certain performance, at this time if the capital market is also more cooperation, the recognition of concepts and stories, then a part of the focus of the enterprise in the first band will have the opportunity to achieve the listing, but this does not mean that these enterprises or the entire industry into a real and substantial high-speed growth stage , bubbles tend to appear in this band. However, if an industry does not experience the first band, the market lacks the education of basic users and the construction of infrastructure.　　Without bubbles, initial investment may be insufficient. With the market and industry development, will inevitably be concerned about the degree and the accumulation of funds into the "trough", but at this time the market demand has not declined, from this stage to the second "peak" of the process is the industry's real Gaocheng long-term. This stage is no longer "spell concept", but "can only do according to the traditional industry development path to go, no scale, no surplusBenefits are not available ", this stage is full of good opportunities for investment, but" options "are more difficult.　　[Page] In these two years, the electric dealer entered the first band, and Lenovo investment is waiting to seize the second stage of the opportunity, the difficulty lies in the current domestic "entrepreneurs in this field are mostly Internet origin, really do business to make money entrepreneurs are not many".　　In the mobile internet industry, Lenovo has also invested more than 10 early enterprises, but Li Jiaqing that the industry "the first band has not begun", under the influence of the economic environment, the market is concerned about the heat has not reached the "peak", but the trend is certain. "As an investor, the key is to determine in a different link in an industrial chain, where is the need to advance into the ' hit point ', to capture the first sexual opportunity, which links need to invest in the present. In a single project, no one is better than who, but must have a systematic investment strategy, in fact, there are not many institutions in the industry really systematic strategy. Rely on systematic layout and rhythm control to improve the chances of investing in a future star enterprise, which reflects the level of fund managers. "It can also explain the consistent style of team warfare that Lenovo invests in." Zhu Linan, president of Lenovo Investment, has said he has never been superstitious about star investors and star projects. "In Silicon Valley, an entrepreneur feels honored because Kleiner or Sequoia has voted for him, not because the person who came to talk to you is John or Maik Morritz." "Big consumer" new play at the beginning of 2012, they appear in a sensitive area of high public concern. January, infant food Enterprises Neotrieon to hold media communication, Li Jiaqing said in the meeting, Lenovo investment in 2011 has taken a stake in the enterprise.　　Although no specific amount of investment was disclosed, it was identified as the largest institutional investor in Neotrieon. As we all know, the domestic food industry, especially the dairy industry in the "melamine incident", has been affecting the sensitive nerves of the people. In this much-watched industry, Neotrieon's "controversy" is about its brand "surname or surname West". According to information, Neotrieon was established in 2006, mainly engaged in infant nutrition and formula production and sales, with New Zealand Neotrieon and Shanghai Neotrieon two subsidiaries. New Zealand Neotrieon is mainly responsible for the local sourcing of New Zealand, production packaging and quality control business; Shanghai Neotrieon is mainly responsible for the distribution of its products and domestic sales network construction and after-sales service.　　The Chinese founder, "Only for the Chinese market," "Overseas original brand", many consumers questioned as "false foreign devils." The challenge will be "a lot of action in the big consumer sector, but has been a little high-profile," Lenovo Investment and Li Jiaqing was pushed into the spotlight.　　[Page] "In fact, we are not so concerned about the identity of the brand, it is important whether it is high-quality, nutritious and relatively cost-effective products, business processes are normative, whether it can really bring value to consumers." As for the brand, it is to be established through a long period of customer Word-of-mouthTo。 "Prior to the announcement of the investment, Li Jiaqing in an interview with The Economist about this matter, he has expected the project in the so-called" brand "may be due to some consumers or media misunderstanding and face" controversy. "　　Before deciding to invest, he conducted a long observation, and with the investigation team at home and abroad traced the enterprise product import and export all aspects. "Chinese companies, or companies in China, through capital control or commissioned production integration of overseas resources, in its own brand, its own formula technology, its own procurement and supplier management team on the basis of meeting the dual-related inspection standards, directly in the Chinese market, bypassing the domestic upstream in the supply of resources may exist short board. Frankly tell consumers that the brand is created by the Chinese, Lenovo investment support, global sourcing, including raw materials, production, import and export and sales of the supply chain are transparent. I don't care whether the short time is called ' true Yang brand ' or ' fake foreign brand ', which is beneficial to the healthy development of the market in the long run, so we decided to invest.　　"With Lenovo investing in a high-rise office in the centre of Shanghai overlooking the hustle and bustle of the city, Tsinghua University's engineering and the double degree investors showed great patience in interpreting Lenovo and thinking about their investments." "China's consumption of consumer goods market is huge, as investors, we consider how to invest in this area for a long time, but currently at home does not seem to be a good solution to the problem of resources." And the Neotrieon model is a better solution that we find. It is in the food industry to make some innovation, individual judge of domestic food enterprises under the support of capital ' going out ' may be a long-term trend. "Lenovo investment in the" big consumer sector "investment opportunities have been" strong interest, "Li Jiaqing has publicly indicated that this area can be" another play. "　　The investment in Neotrieon is the practice of "new play". "A project like Neotrieon is not easy to find," he admits. In this field, many enterprises or traders, would rather make quick money, to help the ' big brand ' or foreign two or three line of the ' overseas brand ' to do the Distribution Agent, also do not want to spend time and effort to integrate resources to build their own brands. He told reporters, "This model is mainly integrated control of high-quality resources, brand, to do channels, may initially be light assets rather than a heavy asset model, but the future must be in the resources and supply chain investment." "In 2010 to 2011, Lenovo invested 21 customers (21Cake) cakes, Guangdong Heng Hing AG, Jiangsu Wujin Li-Hua livestock and poultry companies, involved in cakes, aquatic feed, livestock and poultry breeding.　　From its investment projects, Lenovo's investment in this kind of enterprises more value brand and industry chain control ability. It takes a brand to sell a premium in order to share benefits with upstream companies and not focus on lowering costs.　　Both brand and industrial chain control, enterprises can maintain a stable and reasonable profit level for a long time. 2011 Li Jiaqing led its team-led investment in Li-hua livestockPoultry, is the current domestic second rhubarb feather chicken breeding enterprises, aquaculture base covering Jiangsu, Zhejiang, Anhui, Shandong, Henan, Guangdong and other provinces. Compared to the fast-food industry generally using the rapid industrial culture of the "foreign species" white feather chicken, the Chinese people have 50% of the consumption is commonly known as "Earth Chicken" or "quality chicken" chicken market. This industry has traditionally been very fragmented, with small-scale, free-range farmers vulnerable to the volatility of market prices, control of outbreaks, control of broiler quality and feeding costs, or risk resilience. Li Hua's advantage lies in the formation of breeding and development from the ancestral generation of chickens, to its own feed production, vaccine bulk procurement and strong IT system support, such as the integration of aquaculture monitoring means, and the systematic management of the breeding community or farmers to mature cooperation between the final control channels and sales, and formed its own "Li Hua snow-capped mountains Xueshan" brand.　　Not only bring the farmers rich, but also make the industry gradually concentrated, more controllable security.　　In his view, modern agricultural enterprises should be the industrial chain every link can benefit, the emergence of real control in the industrial chain of enterprises, may better solve the information asymmetry caused by market volatility, as well as food quality and safety problems.　　"From the point of view of solving the final problem", this is Li Jiaqing and Lenovo investment in modern agriculture and food investment in the way of thinking.　　There's an entrepreneur gene in your head. In fact, Lenovo's more than 20 years of industrial background and historical experience, has accumulated a "team, strategy, with a team," such as a set of replicable system of enterprise management, this may also be Lenovo investment is different from other VC unique place. Li Jiaqing said one of the biggest successes of Lenovo investment in the past decade has been the accumulation of professional teams for each investment focus area. The team used in-house training + to bring in talent, reaching over 50 people in the last year. They want to use "professional people to do professional investment".　　[Page] It is said that the investment company to Lenovo Internal advisory team "teaching" appointment can even use "scramble" to describe. In the Li Jiaqing of the women's brand de, even from the beginning of the investment has not been determined, to comb the business process for the enterprise. In the post Management phase, Lenovo's investment advisory team continues to help companies build cultural and business strategies and build Team confidence.　　Li Jiaqing says he has developed a habit of traveling to any city, and if there is a local de store, he will have to take the time to turn around or communicate face-to-face with local regional leaders. "We as investors, do not interfere with the operation of enterprises, but the degree of participation is very deep, including brand cooperation, external mergers and acquisitions, and even ERP (Enterprise resource Planning) system selection."　　"De last year, the terminal retail sales of more than 2 billion yuan, revenue and profit scale for several years to maintain more than 100% growth."　　He is said to have spent nearly half his personal time on invested companies. And that's why, in the case of a failure in Lenovo's funds to be put on an in-house platform, ready to be consulted and discussed at each fund, few entrepreneurial groupsTeam Fundamentals fail. "Lenovo Investment as an investor also tries to act as a bridge between entrepreneurs and all other investors," he said. We tend to do a lot of investment before we ' should ' do it, for example, to help entrepreneurs introduce their clients, bring in talent, explore strategies, and participate in business meetings, this process also allows us to more accurately judge a person, we even have a good relationship with the entrepreneur's family. This does not mean that our investment decisions take a long time, but in a certain amount of time, through intensive work, deepen understanding of people. "All this experience and caution does not mean that the investor who calls himself" the entrepreneur gene in his brain "lacks passion. "Sometimes looking at a project, even when it's small, has a very strong impulse that they can fly as soon as we inject money into it," he said. It's like looking at a target for a long time, and there must be an emotional urge to pull the trigger. This is very exciting.　　"he said. Lenovo's next five-year goal is to "sit in the first row of Chinese private-equity investment and invest in a great company under China's opportunities." The chances of this opportunity are high in areas such as mobile Internet, consumption, modern services, and health care, which are the focus of Li Jiaqing. He and his team in the down-to-earth work, also look forward to "lucky pull the trigger that moment."