Our strategic investment business focuses on long-term equity investments using our own capital. We view it as a natural extension of our other businesses, allowing us to deepen our relationship with clients by participating in their value creation and engaging them into the ‘‘AMTD SpiderNet.
We typically source investment opportunities identified through ‘‘AMTD SpiderNet,’’ and focus on investing in innovative internet platforms, financial technology companies, other new economy companies, and other financial institutions. Our buy-side resources allow us to stay close to the market and provide early access to leading players in key industries that benefit from China’s globalization developments and rapid growth in innovation industry.
• Leveraging ‘‘AMTD SpiderNet.’’ We leverage ‘‘AMTD SpiderNet’’ throughout the investment process to source investments, evaluate opportunities, and provide value added solutions to the investees after our investment. Our portfolio companies are our strategic partners.
• Value investment. We focus on long-term value creation from our investment and how the investments can contribute to our stakeholder of the ‘‘AMTD SpiderNet,’’ rather than looking for short-term returns. Therefore, we do not trade our investments frequently in the secondary market for profit. We have not disposed of any portion of the strategic investments in our current portfolio since the acquisition.
• Synergy with portfolio companies. We have an experienced team for post-investment value creation. We have a board seat in most of our portfolio companies and we devote a lot of our resources to work closely with their management to advise on their strategy, capital markets plan, and support them in their execution process.
Our strategic investment portfolio is comprised of Bank of Qingdao, Royole Corporation, 58 Finance, and FinEX Asia.
- Bank of Qingdao
Bank of Qingdao is the largest city commercial bank in Shandong province and among the first batch of city commercial banks established in China. Its business covers three major areas including corporate banking, retail banking, and financial markets. Bank of Qingdao is headquartered in Qingdao, with 14 branches in Shandong Province, and will continuously expand its business network to all major cities in Shandong province as at the end of 2018. Bank of Qingdao is highly recognized by customers for its excellent professional and differentiated services. It won the ‘‘Banking Information Technology Risk Management Research Achievement Award’’ issued by China Banking and Insurance Regulatory Commission in the past four years. Meanwhile, it also obtained numerous awards, such as second prize of the 18th national business management modernization innovation achievement, ‘‘Best Small and Medium-sized Bank’’ (Golden Dragon Award), ‘‘Best Management Innovation Bank’’ (Golden Cicada Award), and ‘‘Best City Commercial Bank’’ (Golden Diamond Award). Moreover, the Bank of Qingdao is among China’s top 500 service enterprises. Bank of Qingdao was listed on the main board of the Stock Exchange of Hong Kong Limited (SEHK: 3866) in December 2015 and completed its A share listing on the Shenzhen Stock Exchange in January 2019 (SZSE: 002948), being the second ‘‘A+H’’ dual-listed Chinese city commercial bank.
- 58 Finance
- FinEX Asia
Royole is a world leader in flexible displays, flexible sensors, and related smart devices. It focuses on creating the next-generation human-computer interaction and product research, development, manufacturing, and sales. Royole began its operations in the Silicon Valley, Hong Kong, and Shenzhen. During the past six years it has obtained multiple rounds of investment from well-known domestic and foreign venture capital institutions. Royole has built an international team of over 2,000 talents from over 20 countries and regions around the world, and has become one of the fastest-growing technology unicorns in the world. Royole currently owns over 3,000 core technology intellectual property rights and sells products to over 20 countries and regions. In 2018, Royole launched the volume production of quasi-G6 for fully flexible displays and the world’s first commercial foldable smartphone with a fully flexible display, FlexPai.
58 Finance is the financial technology platform that is majority-owned by Mr. Jinbo Yao, the chief executive officer and principal shareholder of 58.com Inc. (NYSE: WUBA), currently the largest online classifieds platform in China as measured by traffic and revenue. Its major brands include 58.com, Ganji, Anjuke, Zhuan Zhuan, and 58 Town. Its ecosystem covers housing, cars and other life services, and provides rich client base and synergy for 58 Finance. Since its inception, 58 Finance’s car financing business has grown rapidly. Under the impetus of other internet giants in the financial sector, 58 Finance has been well received in the capital markets. 58 Finance targets to extend the life cycle of customers using its full scope capacities and creates a multi-scenario, multi-asset as well as multiproduct integrated financial services platform.
FinEX Asia is a HKSFC-licensed asset management services provider specializing in fixed income, alternative, and private equity investments. Its management team possesses extensive experience in risk management, private equity, asset management, and financial technology. It is amongst the first global tech-enabled asset management platforms connecting professional and institutional investors from Asia with global assets through innovative fintech. FinEX Asia is headquartered in Hong Kong with representative offices in Singapore and Taiwan.