Direct Investment

Tuhu Auto Services

Tuhu Auto Services (Tuhu) (09690.HK), the portfolio company of Starquest Capital, was listed on Hong Kong Stock Exchange on September 26,2023 at the offering price of HK $28 per share, with a closing market value of nearly HK $24 billion on the first day.

Tuhu launched a prospectus in Hong Kong before in September, and five institutions, including Tencent, Castrol, Leapmotor, GOTION High-tech and Shanghai Zizhu High-tech Park, participated as cornerstone investors. The investment will include an extensive lineup of cornerstone investors, which reflects the recognition of Tuhu's status in the industry, profit prospects and competitive advantages, as well as their exploration of further cooperation in traffic and ecosystem development.

Since 2019, Tuhu has maintained high growth in revenue and gross margin. According to the prospectus, Tuhu achieved revenue of over 6.5 billion RMB in the first half of 2023, representing a year-on-year growth of 19.3%. The gross profit margin also reached a historical high of over 24%, with the group as a whole achieving profitability.

Junlebao Dairy

Kantar, as an authoritative publisher of consumer brand recognition, released the Global Brand Footprint Report 2023 in early September. Among them, Junlebao Dairy has performed particularly well in China's FMCG market. With its excellent brand strength, channel strength and product innovation, it has reached more than 200 million consumers, and is the fastest growing brand in China's dairy industry with a growth rate of 8.6%. Junlebao Dairy products have a very high degree of recognition among consumers.

According to the Brand Footprint Report, Junlebao Dairy is ranked 24th in China's FMCG market in 2022, continuing to improve compared with the previous year; the penetration rate reached 33.2%, up 2 percentage points from the previous year.

Junlebao Dairy's various product lines are conducting in-depth research on the diversified and personalized health needs of consumers, and based on this, they are committed to introducing healthier and more nutritious products that meet the full spectrum of lifecycle, population, and consumption scenarios, contributing to the upgrading of national health. In the infant formula field, the premium organic formula, Youcui Organic Milk Powder" is a shining example, as it successfully dominated the domestic organic formula market within two years of its launch, ensuring that babies first consume organic products. In the yogurt sector, star products like "Purjoy" additive-free yogurt and "Pureasy" zero-added sugar yogurt were introduced by Junlebao Dairy. Deeply understanding the public's demand for low-sugar health products, Junlebao Dairy's "Pureasy" series has obtained authentic Low Glycemic Index (GI) food quality certifications, making it a leading brand of low-temperature yogurt in China and a pioneer in zero-added sugar yogurt.

As for fresh milk, Junlebao Dairy's Yuexianhuo fresh bottled milk, fortified with INF0.09 second ultra-instantaneous sterilization technology, has become the top high-end bottled fresh milk brand in China, renowned for its genuine active nutrition.

In addition, the United Nations Development Programme (UNDP) and other relevant agencies jointly released a survey report entitled "The Path of Low Carbon Transition: Sustainable Development Actions for Enterprises in China 2022/2023", in which Junlebao Dairy was selected for its innovative practices in value chain low-carbon management. This is the third report in a series of reports by the United Nations Development Programme, Pricewaterhouse Coopers and China Chamber of International Commerce. Junlebao Dairy stands out among many excellent cases, along with Lenovo Group, Siemens (China), Ant Group and other companies, which are the only Chinese dairy enterprises included in the report.

Mininglamp Technology

In the last quarter, Mininglamp Technology won anumber of technical awards. On August 30th, CYZONE, a leading international innovative ecological services platform, held the "AIGC 2023 Technology Application Conference", and released the list of "Most Noteworthy AIGC Companies in 2023". Involving the base layer, model layer and application layer, Mininglamp Technology was selected for the list with its exploration and application in the fields of artificial intelligence and AIGC.

In addition, DBC, CIS, CIW, eNet Academy took the lead in releasing the "Big Data Excellent Service Providers 2023" list, aiming to select the most representative and innovative companies and organizations in the various segments of the big data industry, and to show their unique value. Mininglamp Technology, with its 17 years of data exploration and application in the field of marketing, is a strong candidate in the field of "big data in marketing".

 FoF Investment

In the third quarter of 2023, the portfolio invested by Starquest Capital's GP in Healthcare is in process of IPO.

Sherpa Healthcare Partners (“Sherpa”)' portfolio company, HEALTHY TEK (301370.SZ), a comprehensive provider of digital supply chain of medical devices, was listed on Shenzhen Stock Exchange GEM on July 12, 2023 at the offering price of 13.39 yuan per share, raising a total of 945 million yuan of funds. The closing price on the first day of listing rose 94.77% from the offering price, with a market capitalization of more than 10 billion yuan.

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

Technological Enterprise Services

Source Code Capital’s portfolio company, UNISUN Energy and Power, a provider of clean energy solutions, completed a Series C round of financing led by Cathay Capital, with additional investment from old shareholder Source Code Capital.

Gaorong Capital’s portfolio company, UWB chip and solution provider MKSemi completed a Series A round of financing of about 80 million yuan, led by China Merchants Capital, with Gaorong Capital and other institutions.

Healthcare

Sherpa’s portfolio company, SensView, a supplier of solid-state imaging detectors, which completed a Series A + round of financing totaling tens of millions of RMB. This round of financing was solely led by Matrix Partners, together with Chongyuan NaXing Capital and Leli Capital, and its old shareholder Huimei Capital made additional investment. Another portfolio company of Sherpa, Bliss Bio, a research and development company of anti-tumor and bio-innovative drugs, which completed a Series B + + round of financing, was solely led by Eisai China Inc.

TopOlefin, a high-end optical resin material developer invested by Highlight Capital, completed nearly 1 billion B round of financing, led by Xicheng Jinrui and co-led by Raystone Capital. Sunrise Capital, Lanjun Capital and other institutions followed the investment, the old shareholder Libert additional investment; Invested enterprise cancer treatment innovative drug developer Migrasome Therapeutics completed more than 100 million yuan angel round + financing, this round of financing led by Zhongguancun Collaborative Innovation Investment Fund, tsinghuacapital, Zhongguancun Development Qihang Industrial Investment Fund, Beijing Science and Technology Innovation Group, Qingkong Tiancheng followed investment.

Consumption

Panda Capital invested in internet pet service platform Pet'em, completed a Series C + round of financing at RMB200 million. This round of financing was led by Boxin Fund and co-invested by the old shareholders.

Industry Recognition

Starquest Capital received multiple industry honors

On July 7, 2023, the "2023 Annual Forum of Funds of Funds" was successfully held in Xiamen. Meanwhile, the List of 2023 Soft Power of Investment Institution was officially released after the conference. This List gives an overall evaluation of the capabilities of GPs through a combination of open research and objective data. Starquest Capital was included in this List, and it was awarded as "TOP 100 Most Active LPs in Soft Power of Investment Institution in 2023".

On July 19, Chinese Venture officially released the List of Limited Partners for 2022-2023. Mr. Frankie Fang, the Managing Partner of Starquest Capital, was awarded as "China Best Investor in 2022-2023".

On August 7, FOF Research Center officially released the 2023 Special List based on existing data support, research and analysis, in order to encourage outstanding institutions and talents in the fund industry and promote the healthy development of the equity investment industry. Starquest Capital was included in the Special List, and awarded as the "TOP20 Best Returen of Market-oriented FoFs in 2023". Meanwhile, Mr. Frankie Fang, the Managing Partner of Starquest Capital, was awarded as “TOP50 Best Overseas Returnee Investor in 2023”.

ESG Insight

On July 8, 2023, Mr. Frankie Fang, Managing Partner of Starquest Capital, was invited to attend the 2023 Annual Forum of Fund of Funds and the Fourth Lujiang Venture Capital Forum, expressed his views on the topic of "The Historical Turn of China's Venture Capital", and discussed the connotation of China's era of investment.

On August 8, Mr. Frankie Fang was invited to participate in the "Shenzhen Venture Capital Day" event at the 2023 Shiyan Lake International LP Summit in Bao'an. He engaged in a discussion on the topic of  "The New Paradigm of LP and GP Integration Development from an International Perspective." During the forum, he shared his insights on selecting outstanding GPs and focusing on industry-specific targets amidst challenges and constraints.