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
The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.
Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.
Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.
Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.
These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.
For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.
So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.
At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across
