2018.11.29 CoStone Capital Views:
On November 29th, 2018, Yujing became the 12th listed company invested by CoStone Qomolangma Fund. The Fund invested in this company in 2012, holding 9.5% of its shares, a typical CoStone practice of “high investment with quality services”.
On November 29th, 2018, Yujing became the 12th listed company invested by CoStone Qomolangma Fund. The Fund invested in this company in 2012, holding 9.5% of its shares, a typical CoStone practice of “high investment with quality services”.
The Fund, by now, has brought 12 out of 19 portfolio companies to IPO, which is as high as 63%. Five of these listed companies have been valued over 10bn RMB in the market and the total market price of all 12 listed portfolio companies has been over 100bn RMB.
Song Jianbiao, Executive Assistant to CEO of CoStone, present Yujing’s bell-ringing ceremony in Shenzhen Stock Exchange
Yujing is engaged in R&D, design, production, and sales of precision CNC machines. Their main products include multiple wire-cutting machines and polishing machines.
The company has also been recognized and awarded by the China Machinery Industry Federation and Chinese Mechanical Engineering Society, the Ministry of Education, and Hunan provincial government.
Yujing now owns 74 patents (including 12 invention patents).
With the help of CoStone and its resilience, Yujing has seen improvement in product portfolio. Its products now are used in industries of touch screen, back cover of mobile phones, solar photovoltaic, magnetic materials, sapphire.
With reliable product quality, reasonable price, and perfect after-sales service, Yujing has earned good fame. Lens Technology, BYD, Foxconn, and other well-known enterprises are now in deep cooperation with Yujing.
From 2015 to January to March 2018, the operating income of Yujing was 125mn, 158mn, 352mn, and 127mn RMB respectively. The net profit was 14.57mn, 33.11mn and 78.16mn, 36.99mn RMB respectively, a steady year-on-year increase.
Rewritten by Chen Cong, Edited by Li Yunzhen, Du Zhixin
Over the past year, the bull market returned, with technology leading the way.
As I said back in October 2024, the rally that began on September 24 was not merely a rebound, but a reversal. Since then, China's capital markets have undergone a broad revaluation, moving from undervaluation toward fair value.
The Shanghai Composite Index reached its highest level in a decade. The "Yi-Zhong-Tian" trio—Eoptolink, Zhongji Innolight and TFC Communication, three prominent Chinese optical communications stocks—saw their share prices multiply severalfold in a single year. Cambricon's market capitalization briefly exceeded RMB 600 billion. Elsewhere in the technology sector, triple-digit price-to-earnings ratios and valuations exceeding RMB 10 billion became commonplace.
Some investors were greedy; others, fearful. Still others asked me: Are technology stocks in a valuation bubble?
My answer is that what we are witnessing is the hunger and anxiety of an era, reflected in the capital markets. Once you understand this, the current fervor for technology investing is no longer difficult to explain.
Investment has nothing to do with macroeconomics, but everything to do with geopolitics.
China-US relations will shape the investment landscape for decades to come. Geopolitics has played a major role in shaping the hunger and anxiety of our times, fundamentally reshaping the way we invest.
What, then, lies at the heart of China's hunger and anxiety?
The Fourth Industrial Revolution is already underway, yet China has not fully overcome the technological shortcomings left by the Third. There is no time to lose.
This is why some people wonder: Why do Chinese computing chip companies command such high valuations when their technologies still lag so far behind NVIDIA's? Why does NVIDIA trade at just 50 times earnings, while a company hailed as "China's answer to NVIDIA" commands a multiple of 300?
To me, this gets the logic exactly backward.
It is precisely because these companies cannot catch up with NVIDIA in the near term that they command a higher strategic premium. The wider the technological gap, the greater the strategic value.
The further something lies beyond our reach, the stronger our hunger. The harder it is to catch up, the deeper our anxiety. If China were to achieve a complete breakthrough in computing chips one day, valuations might actually come down.
Where can one find China's most spectacular natural landscapes?
Much of the answer, I believe, lies in and around the Hengduan Mountains: the Meili Snow Mountains, Jade Dragon Snow Mountain, Mount Gongga, Mount Siguniang, Jiuzhaigou, and many others. Vast differences in elevation and deep fault lines have given rise to landscapes of extraordinary grandeur.
Hard-tech investing follows a similar logic.
Technological gaps, discontinuities in capabilities, and missing links in industrial systems: a leap in difficulty brings a leap in valuation, and a successful breakthrough can, in turn, bring a leap in returns.
This logic extends well beyond computing chips. It is equally evident in memory semiconductors, commercial spaceflight, and other sectors where China still faces substantial technological gaps with other countries.
It was precisely this conviction that led CoStone Capital, starting in 2016, to decisively focus its investments on three areas: hard tech, emerging industries, and life sciences and healthcare. In this context, "hard tech" refers specifically to important industries in which China faces a technological gap with the United States.
Thanks to this forward-looking strategy, CoStone Capital established an early presence across the full value chains of key sectors, including semiconductors, artificial intelligence, and robotics.
Looking ahead, the frontiers of technological progress and industrial upgrading are boundless. Nor can the gaps in hard technology be closed overnight. The twin windows of opportunity presented by technological innovation and the development of homegrown alternatives to foreign technologies have only just begun to open.
The road ahead is long, but the future holds immense promise.
As an investment firm, CoStone Capital will continue to invest where the hunger and anxiety of each era run deepest, move forward with the tensions that shape our times, and extend our reach toward the most challenging—and most important—frontiers.
Spring 2026