On the afternoon of December 2, 2016, the JIC Investment Workshop “Prospects of Global Advanced Manufacturing Industry and Opportunities for China” was held in Beijing. Ke Ke, Assistant President of China Jianyin Investment (JIC), pointed out in her speech that the powerful manufacturing industry creates a clear path for economic prosperity. She stated that revitalization and sustained development are of strategic significance at the national level. To achieve turn overtaking and industrial upgrading, China's manufacturing sector must actively plan the layout in stages of strategic significance in the industrial chain to cultivate a batch of leading enterprises with technological innovation competitiveness and industrial leadership. As a state-owned investment company with a global vision, China Jianyin Investment has always followed the main route of technological progress and made global layout from two dimensions of strategic investment and industrial operation and through multiple investment modes such as cross-border M&A to advance striding development of China's manufacturing industry.
As the representative of China Jianyin Investment, Zhangchi made a keynote speech on “Leading Resource Allocation and Boosting the Upgrading of the Manufacturing Industry.” He pointed out that JIC, based on its recognition of transformation and upgrading of China's manufacturing industry and its understanding of the demand for capital of China's manufacturing enterprises, thinks that capital should go to the front and center gradually and upgrade from the relatively passive participation of support, assistance, and cooperation to more active leading, optimization, and lifting. Since 2012 when it began to focus on investment in manufacturing, JIC has been met with great change in its role and positioning as a capital provider, from judgment of industrial trends at the beginning, to helping enterprises improve mechanism and management, then to cooperation with enterprises to carry out industrial chain M&A and integration, and then finally to independent holding of a strategic link in industrial value chain.
In 2012, JIC invested in Shengrui Transmission. At that time, the enterprise was not operating well and many investment institutions had given up on it. JIC, however, judged that Shengrui Transmission's independent 8AT automatic transmission presented a technical route with long-term value on the basis of its understanding of the law of industrial development and the cycle of the industry and through repeated research and argument. In 2016, Shengrui Transmission was granted the first prize of the National Award for Science and Technology Progress 2016 for R&D and industrialization of the front-engine front-wheel 8-gear automatic transmission (8AT), which is an affirmation of Shengrui Transmission's nearly 10 years of independent research and development. It also confirms JIC's judgment in technology roadmaps.
Sinocare Inc. is the leader of China's blood sugar monitoring product industry. In order to speed up the course of internationalization, JIC Investment (a subsidiary of JIC group), as a strategic cooperator in Sinocare's global M&A activity, completed the acquisition of globally leading innovative POCT diagnosis equipment supplier PTS together with Sinocare Inc. in 2016, helping it complete the first breakthrough in overseas M&A. In this stage, JIC carried out closer cooperation with industrial enterprises and a more active integration of the industrial chain.
JAC is the only comprehensive automobile group with completely independent brands of all series of commercial and passenger cars in China. In order to optimize relevant resources under JAC, JIC participated in the overall listing of it as a strategic investor in 2013. In the investment, JIC provided JAC with important value output in two aspects. First, JIC supports it in carrying out ownership changes of state-owned enterprise to optimize equity structure. Second, JIC supports it in implementing business restructuring and identifying main business assets, stripping off secondary-line business assets and non-core assets, and streamlining industrial chain and business structure, making its internal management chain smoother.
In 2016, JIC acquired SGD Pharma, the number two leader of the global high-end medical glass package industry in manner of holding, becoming one of the three enterprises able to produce Class I pharmaceutical glass around the world. China's pharmaceutical glass package products are mainly used for the world's low-end medicine market and occupy a lower position in the value chain. By acquiring SGD Pharma, JIC can systematically gain not only advanced technologies and sustainable R&D ability, but also its brand and marketing channel as well as management experience and ability, achieving a breakthrough in technology and commercial threshold, which is of strategic significance for the transformation and upgrading of China's pharmaceutical package industry.
Through the practice of investment in the manufacturing industry, JIC more deeply realized that capital will play a more important role than enterprises in driving the transformation and upgrading of the manufacturing industry, as capital allows flexible resources allocation approaches and more economical and efficient operation and management modes. Capital is also able to overcome “inertia” in the form of matter and function transformation of industrial capital, and is less restrained by the level of its own industry. In this case, investors can reach the front of industrial M&A and industrial integration, optimize enterprises' resources allocation through capital means and then play more leading role in industrial transformation and upgrading and enterprises' resources allocation.