Direct Investment

Tuhu Auto Services

Tuhu Auto Services (Tuhu) released its performance report for the first half of 2024. In the first half of the year, Tuhu's operating income for car maintenance was 7.1 billion yuan, a year-on-year increase of 9.3%; adjusted net profit was 358 million yuan, a year-on-year increase of 67.3%; gross profit was 1.8 billion yuan, with a corresponding gross profit margin of 25.9%, an increase of 1.7 percentage points compared to the same period last year. In a challenging market environment, Tuhu implemented a series of effective measures such as tapping into user demand, actively expanding service categories, and optimizing product and service profit structures. As a result, it achieved sustained year-on-year growth in revenue in the first half of the year and a year-on-year increase of over 67% in adjusted net profit.

In terms of stores, as of June 30th, Tuhu's car maintenance workshops totaled 6,311, an increase of 402 from the end of 2023, covering almost all provincial-level administrative regions, over 300 prefecture-level cities, and nearly 1,700 county-level areas in China, maintaining a leading position in the industry. In economically strong provinces and cities, the number of its workshops in Jiangsu, Sichuan, and Fujian exceeded 600, 300, and 200 respectively in the first half of the year. Additionally, the workshops expanded into previously untapped markets, with two workshops opening in Hong Kong.

In the complex and ever-changing capital market environment, Tuhu actively repurchased shares to protect shareholder interests. In the first half of the year, Tuhu repurchased a total of 12,286,900 Class A shares from the open market and canceled them, spending 204 million Hong Kong dollars, further boosting earnings per share. In the first half of the year, globally renowned institutions such as Fidelity increased their holdings in Tuhu, demonstrating confidence in its future development.

Dingdong Fresh

Dingdong Fresh (Dingdong) released its second-quarter financial report for 2024, with revenue of 5.6 billion yuan, a year-on-year increase of 15.7%; GMV was 6.22 billion yuan, up 16.8% year-on-year; Non-GAAP net profit was 103 million yuan, nearly 13 times higher year-on-year, showing outstanding performance.

On one hand, Dingdong adheres to the strategy of reducing costs, increasing efficiency, and achieving stable development through algorithm and supply chain operational improvements, which have led to higher efficiency in boosting order volume and service quality. In this quarter, the average daily order volume per front warehouse of Dingdong exceeded 1,000, a 29.4% increase year-on-year; the average fulfillment time for instant orders was 36 minutes, 2 minutes faster year-on-year. At the same time, self-produced goods are being extended to more retail and food and beverage channels. For example, the meat cutting and processing from Dingdong's own factory, as well as the research and production of grains, soy products, and pre-made dishes, have entered other channels and enterprise markets. Hema's own-brand products are also expanding to the U.S. and Singapore markets.

On the other hand, Dingdong intends to resume its "expansion" strategy. Dingdong Buy has decided to continue expanding the number of front warehouses in the Jiangsu, Zhejiang, and Shanghai regions, with plans to open approximately 80 new front warehouses this year, nearly 40 of which have been opened in the first half of the year. The average daily order volume per warehouse has already exceeded 800.

The company expects significant year-on-year growth in net profit and scale for the rest of this year and the following three quarters, continuing to achieve profitability.

Mininglamp Technology

Mininglamp Technology (Mininglamp) unveiled its first "Generative Marketing" research findings at the "AI Moment · Vision of the Future: 2024 Generative Marketing Forum" on August 30th — the "2024 AI+: Generative Marketing Industry Research Blue Book," which scientifically explains the concept of "generative marketing" and summarizes the latest technological trends and industry practices, providing enterprises with a highly practical reference guide.

Since 2023, Mininglamp has actively embraced generative AI. Within a year, the use of large models by all staff has significantly improved individual and organizational efficiency. Through Mininglamp's developed assistant Copilot, employees can write Agents themselves to seamlessly integrate AI capabilities into their daily workflow. In 2024, the adoption rate of AI tools among all Mininglamp employees has exceeded 95%, with a weekly active user ratio of 70% and over 200,000 cumulative dialogues with large models. In addition to providing generative marketing products and services to enterprises, employees can also flexibly perform various marketing tasks such as content generation, social media insights, and knowledge base accumulation through AI applications.

Wu Minghui believes that "as marketing productivity experiences a major breakthrough, marketing production relationships are being reconstructed, and the business processes and nodes of marketing are changing, we have entered the era of generative marketing. Leading brands in the future will undoubtedly be companies that can fully utilize AI, embrace bold creativity, and believe in data."

 FoF Investment

Over the past three months, a number of portfolio companies of Starquest GPs' have completed the next round of financing in Technological Enterprise Services and Healthcare.

Technological Enterprise Services

Gaorong Ventures portfolio company Adaps Photonics, a 3D sensor chip and solution provider, completed millions of yuan in series C2 financing, led by Jintou Dingxin investment.

MPCI portfolio company DST, a digital intelligent operation service provider for logistics electric vehicles, completed series E+ financing, the total amount of Series E financing has reached nearly 100 million USD. Series E+ financing was led by Twin Towers Ventures, the corporate venture capital arm of Petronas, with existing shareholders following.

Healthcare

Highlight Capital portfolio company Base Therapeutics, a cell therapy and gene therapy products developer, completed tens of millions of yuan in series A2 financing, led by the AEF Greater Bay Area Fund managed by Gobi Partners GBA.

Industry Recognition

Starquest Capital received multiple industry honors

Over the past three months, Starquest Capital has been awarded several industry honors by FOF Research Center, Investors CN and CYZONE. 

On July 29th, FOF Research Center (www.china-fof.com) officially released the 2024 Annual Special List to encourage outstanding institutions and talents in the private equity fund and fund industry, promoting the healthy development of the equity investment industry. Starquest Capital was awarded the "China TOP 9 Best Returns of Market-oriented FOFs in 2024".

On August 20th, Investors CN released the 2024 China Fund Partner Annual List, with Starquest Capital winning the "Top 10 Most Favored FoFs by GPs in 2023-2024."

In June of this year, CYZONE launched the selection for the "Best Practices Award for ESG Investment by Venture Capital Institutions" for the third consecutive year. Combining questionnaire data from nearly a hundred institutions and some institutional research information, the "Top 50 Best Practices Award for ESG Investment by Venture Capital Institutions in 2024" was selected in September to commend the significant achievements of venture capital institutions in practicing ESG investment principles, and Starquest Capital was included in this list.

ESG Insight

On September 11, 2024, Mr. Frankie Fang, Managing Partner of Starquest Capital, was invited to attend the AVCJ Private Equity Forum China 2024. He shared his views on the topic " The green transition: Leading by example".