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Reform fund side pipeline. Page 40 says it all.

Devon Archer
646 436 3745

Begin forwarded message:

From: "Jonathan.li" <jonathan.li@bhrpe.com<mailto:jonathan.li@bhrpe.com>>
To: "Devon Archer" <darcher@rosemontcapital.com<mailto:darcher@rosemontcapital.com>>, "Sebastian Momtazi" <smomtazi@rosemontcapital.com<mailto:smomtazi@rosemontcapital.com>>
Subject: Fwd: SOE reform theme fund pitch book


发自我的 iPhone

以下是转发的邮件：

发件人: 夏雨（Yu XIA） <yu.xia@bhrpe.com<mailto:yu.xia@bhrpe.com>>
日期: 2014年12月28日 GMT-5下午12:13:40
收件人: <jonathan.li@bhrpe.com<mailto:jonathan.li@bhrpe.com>>
抄送: "'xzli'" <xinzhong.li@bhrpe.com<mailto:xinzhong.li@bhrpe.com>>, "'Liu Zhe'" <zhe.liu@bhrpe.com<mailto:zhe.liu@bhrpe.com>>, "'hao.yao'" <hao.yao@bhrpe.com<mailto:hao.yao@bhrpe.com>>, "'Harold Li'" <harold.li@bhrpe.com<mailto:harold.li@bhrpe.com>>, "'David Xu'" <david.xu@bhrpe.com<mailto:david.xu@bhrpe.com>>
主题: SOE reform theme fund pitch book

李总：

附件中是我们准备的国企改革基金Pitch book的初稿。

这个版本供您定夺框架逻辑和主要内容。关于文字表述和图表格式等我们将在下周进一步完善，并根据您对于整体结构的修改意见进行细化。很多细节的地方团队正在完善中，为了避免无效返工，就先用这一版初稿跟您初步沟通一下。

希望您有空的时候团队一起和您电话沟通一下，听取您对于逻辑框架和内容修改意见， 看您什么时间方便？

另附：PPT主要逻辑构架如下：

1、 概览

2、 投资机会：包括国企改制的历史、国企的现状、本次改革的重点、蕴含的投资机会、我们的策略

3、 强大的平台：1）强调我们的股东背景，表明我们extensive connections, 2)完善的公司和基金治理架构

4、 团队和业绩：团队介绍及业绩展示，主要是投资国企的经验。

5、 完善的准备：基金主要条款、基金募资进度及Pipeline。

顺颂商祺！

夏雨 XIA Yu ACCA
渤海华美（上海）股权投资基金管理有限公司
BOHAI HARVEST RST (SHANGHAI) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.
Cell: +86 186-1131-0166
Email: yu.xia@bhrpe.com<mailto:yu.xia@bohaicapital.com>

发件人: Liu Zhe [mailto:zhe.liu@bhrpe.com]
发送时间: 2014年12月28日 22:45
收件人: 'Harold Li'; 'hao.yao'; 'David Xu'; '夏雨（Yu XIA）'
主题: 答复: 答复: 回复：答复: 明天上午1015讨论的基础版本

第1,3,4,5章的内容都调整了。

昊总改的一两张中的颜色什么的我没有完全对上。不过颜色方面等领导把结构定了再一起改吧，现在颜色也有点多。


发件人: Harold Li [mailto:harold.li@bhrpe.com]
发送时间: 2014年12月28日 19:22
收件人: 'hao.yao'; 'David Xu'; 'zhe.liu'; '夏雨（Yu XIA）'
主题: Re: 答复: 回复：答复: 明天上午1015讨论的基础版本

Jay,

I had an attempt at some of the slides for the Executive Summary. I'm not sure if it helps.

Kind Regards,
Harold

On 28/12/2014 17:24, Harold Li wrote:
Dear all,

I’m not sure who is in control of the latest version. As such, I’ve added my comments below.

------------------------------------

Global Changes:
“SOE Reform Fund” replace “SOE Reform Theme Fund”

General Comments

· All headings will need to be changed and revised accordingly. This should be done at the end.

· Do we really need a Table of Contents? It’s not such a complex pitch book!

· We should make a note mentioning the currency conversion rate somewhere

Investment Opportunity
Page 9

· I suggest that this section be titled “Investment Thesis”. Should this passage/paragraph, comment on the two graphs?

· Draft version, of “CHASE THIS CHANCE!!!”
“China’s path towards long-term economic prosperity and economic development is predicated on privatization and the separation of bureaucracy and business. Over the years, the Government has made significant headway through several stages of reforms, which included restructuring SOEs, improving their operations and changing the ownership structure, etc. In more recent times, SOEs in competitive industries have seen the introduction of private capital.
As a result of the 3rd Plenary Session of the 18th Central Committee of the Communist Party of China, the Government has taken the next step and opened up the opportunity for privatization for the majority of SOEs. Right now, China is dominated by SOEs that are operating sub-optimally. The opening up of SOEs to competitive business and encouraging market-oriented public resource allocation, will reinvigorate SOEs and represent an opportunity to realize the untapped potential through improved operational efficiency and profitability. Investors who are able to participate at the early stages of this reform, either through private equity, pre-IPO and IPOs, will reap the benefits of superior returns created by this fundamental transformation in China.”

Page 10

· please tidy up the font size.
Page 11

· So we only have Financial SOEs for 2012 and non-Financial SOEs for 2011?

· Can someone check the number of Financial SOEs? We have 1,088 in the SOE classification section and 1,008 in the diagram. Please correct.
Page 12

· “total urban employment in Chain” can someone please translate this for me.

· What are “industrial SOEs/enterprises”? Have we defined this anywhere?

· “As of end -2013, there were 2,516 companies listed in the A-share market, of which 983 were state-owned, representing approximately 60% of total market capitalization.” This sentence does not fit into the rest of the slide. It raises too many questions/problems. 1) How are listed SOEs defined? 2) How much does the Government hold in these listed SOEs? 3) The listing of new SOEs will actually increase the % to total market cap? Does that mean SOEs are becoming more important, etc

· What is the conclusion for the “Contribution of the public sectors to GDP in China” graph? Public sector contribution is historically high, but has been clearly declining, what conclusion do we want investors to draw here?
Page 13

· The Focus section, is very confusing, in my opinion, needs a complete rewrite. Was this from a CICC report?

· “Several state-owned capital investment and operation companies will be established on a trial” What is a state-owned capital investment and operation company?
Page 14

· Side note, to be honest, I prefer the previous version of the diagram.
Page 15

· Reform Measures don’t really line up with BHR’s opportunities

· Should we call it “BHR’s opportunities” or “investment opportunities”
Page 16 Investment Opportunity I: Monopolized

· I suggest we step by step outline explain the opportunity/strategic i.e. Current situation > Governments attitude towards these sectors > Opportunity exists > Our strategy.

· We need to explain why SOE reforms are seeking to have “Markets play a decisive role in resource allocation” (QUOTE from before) BUT the reality is different.
Page 17 Investment Opportunity II: SOE profitability

· I suggest we step by step outline explain the opportunity/strategic i.e. Current situation > Governments attitude towards these sectors > Opportunity exists > Our strategy.

· To be honest, I’m not really sure how ROE is measured here, i.e. which SOEs are we looking at? With restructure and sell-off of SOE businesses, the listed SOEs should generate a stronger ROE? Etc. I don’t know what the story is.

Strong Platform
Page 21

· Heritage and Development section is weak.
Page 22

· I feel that the BOC and CDB sections can be strengthen. But I don’t know enough about them.

Experienced team and proven track record

· “Bank of Chengdu” replaces “Chengdu Bank”

· “Central Chinese Securities” replaces “Central Securities”
Page 31

· Why are we using the logos of the companies only, investors want the names as well.
Page 35

· “Central Security”, I don’t understand what this is referring to.
Page 38

· The Fund Preference, on the Y-axis. Equities and [what]? The chart doesn’t make sense.

Kind Regards,

Harold Li

渤海华美 Bohai Harvest RST
北京市朝阳区建国路79号华贸中心写字楼2座31层3101（邮编：100025）
3101, 31/F, Tower 2, China Central Place, 79 Jianguo Road, Chaoyang District, Beijing 100025, China
O: 86 10 5969 5858 / F: 86 10 5969 6123 / M: 86 1570 122 3020

发件人: hao.yao [mailto:hao.yao@bhrpe.com]
发送时间: Sunday, December 28, 2014 5:08 PM
收件人: 'David Xu'; 'zhe.liu'; 'Harold Li'; 夏雨（Yu XIA）
主题: 回复： 答复: 明天上午1015讨论的基础版本


各位同事：


我已修改完图表。请在此基础上继续修改完善PPT。

谢谢大家！


姚昊
Hao Yao

渤海华美（上海）股权投资基金管理有限公司
BOHAI HARVEST RST (SHANGHAI) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.
北京市朝阳区建国路79号华贸中心写字楼2座31层3101（100025）
3101, 31/F., Tower 2, China Central Place, 79 Jianguo Road, Chaoyang District, Beijing 100025, China
O: 86 10 5969 5858 / F: 86 10 5969 6123 / C: 86 15822500975
Email: hao.yao@bhrpe.com<mailto:hao.yao@bhrpe.com>


原始邮件
发件人: 夏雨（Yu XIA）<yu.xia@bhrpe.com<mailto:yu.xia@bhrpe.com>>
收件人: 'David Xu'<david.xu@bhrpe.com<mailto:david.xu@bhrpe.com>>; 'hao.yao'<hao.yao@bhrpe.com<mailto:hao.yao@bhrpe.com>>; 'zhe.liu'<zhe.liu@bhrpe.com<mailto:zhe.liu@bhrpe.com>>; 'Harold Li'<harold.li@bhrpe.com<mailto:harold.li@bhrpe.com>>
发送时间: 2015年12月28日(周日) 11:46
主题: 答复: 明天上午1015讨论的基础版本

邮储和中再的文件,邮储的英文版找不到了。。。

夏雨 XIA Yu ACCA
渤 海华美（上海）股权投资基金管理有限公司
BOHAI HARVEST RST (SHANGHAI) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.
Cell: +86 186-1131-0166
Email: yu.xia@bhrpe.com<mailto:yu.xia@bohaicapital.com>

发 件人: 夏 雨（Yu XIA） [mailto:yu.xia@bhrpe.com<mailto:yu.xia@bhrpe.com>]
发送时间: 2014年12月28日 0:27
收件人: 'David Xu'; 'hao.yao'; 'zhe.liu'; 'Harold Li'
主题: 答 复: 明 天上午1015讨 论的基础版本

To YH： 补发原始数据

夏雨 XIA Yu ACCA
渤 海华美（上海）股权投资基金管理有限公司
BOHAI HARVEST RST (SHANGHAI) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.
Cell: +86 186-1131-0166
Email: yu.xia@bhrpe.com<mailto:yu.xia@bohaicapital.com>

发 件人: 夏 雨（Yu XIA） [mailto:yu.xia@bhrpe.com<mailto:yu.xia@bhrpe.com>]
发送时间: 2014年12月28日 0:22
收件人: 'David Xu'; 'hao.yao'; 'zhe.liu'; 'Harold Li'
主题: 明 天上午1015讨 论的基础版本


夏雨 XIA Yu ACCA
渤 海华美（上海）股权投资基金管理有限公司
BOHAI HARVEST RST (SHANGHAI) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.
Cell: +86 186-1131-0166
Email: yu.xia@bhrpe.com<mailto:yu.xia@bohaicapital.com>

发 件人: David Xu [mailto:david.xu@bhrpe.com<mailto:david.xu@bhrpe.com>]
发送时间: 2014年12月27日 10:39
收件人: '夏 雨（Yu XIA）'; 'hao.yao'; 'zhe.liu'; 'Harold Li'
主题: 答 复: SOE Pitchbook 20141224初版汇总

夏总您好,

附件是依照美元与人民币兑换汇率6.2修改后的版本,请您过目,谢谢!!


Best
David


发件人: 夏雨（Yu XIA） [mailto:yu.xia@bhrpe.com<mailto:yu.xia@bhrpe.com>]
发送时间: 2014年12月27日 1:09
收件人: 'David Xu'; 'hao.yao'; 'zhe.liu'; 'Harold Li'
主题: 答复: SOE Pitchbook 20141224初版汇总

大家好：

根据今天讨论，我修改了一下结构，有些图标可能需要昊总帮忙看看。

另外明天会仅就investment opportunity部分对空缺的文字进行补充。然后将完成版发给大家。

大家周六各自修改自己的部分，争取周日上午电话会沟通一下。

辛苦大家了，谢谢！

夏雨 XIA Yu ACCA
渤 海华美（上海）股权投资基金管理有限公司
BOHAI HARVEST RST (SHANGHAI) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.
Cell: +86 186-1131-0166
Email: yu.xia@bhrpe.com<mailto:yu.xia@bohaicapital.com>

发 件人: 夏 雨（Yu XIA） [mailto:yu.xia@bhrpe.com]
发送时间: 2014年12月24日 18:03
收件人: 'David Xu'; 'hao.yao'; 'zhe.liu'; 'Harold Li'
主题: 答 复: SOE Pitchbook 20141224初版汇总


夏雨 XIA Yu ACCA
渤 海华美（上海）股权投资基金管理有限公司
BOHAI HARVEST RST (SHANGHAI) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.
Cell: +86 186-1131-0166
Email: yu.xia@bhrpe.com<mailto:yu.xia@bohaicapital.com>

发 件人: David Xu [mailto:<mailto:david.xu@bhrpe.com>david.xu@bhrpe.com<mailto:david.xu@bhrpe.com>]
发送时间: 2014年12月24日 16:00
收件人: 'hao.yao'; 'yu.xia'; 'zhe.liu'
主题: 答 复: SOE Pitchbook 20141224初版汇总

各位同事,

更新一下汇总的版本,谢谢！！

David


发 件人: hao.yao [mailto:hao.yao@bhrpe.com]
发送时间: 2014年12月24日 15:38
收件人: yu.xia; zhe.liu; david.xu
主题: SOE Pitchbook 20141224初版汇总


各位同事：


附件为目前汇总整理的版本，供大家讨论使用。

谢谢！

姚昊
Hao Yao

渤海 华美（上海）股权投资基金管理有限公司
BOHAI HARVEST RST (SHANGHAI) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.
北京 市朝阳区建国路79号华 贸中心写字楼2座31层3101（100025）
3101, 31/F., Tower 2, China Central Place, 79 Jianguo Road, Chaoyang District, Beijing 100025, China
O: 86 10 5969 5858 / F: 86 10 5969 6123 / C: 86 15822500975
Email: hao.yao@bhrpe.com<mailto:hao.yao@bhrpe.com>


--
Harold Li

渤海华美 Bohai Harvest RST
北京市朝阳区建国路79号华贸中心写 字楼2座31层3101（邮编：100025）
3101, 31/F, Tower 2, China Central Place, 79 Jianguo Road, Chaoyang District, Beijing 100025, China
O: 86 10 5969 5858 / F: 86 10 5969 6123 / M: 1570 122 3020