Sun Dafei, the Founding Managing Partner & CEO of Triniti Capital, first shared in detail the operation and withdrawal of Phase I Main Fund and Phase I Parallel Fund.
Phase I Fund Basic Operation Situation
At present, a period of fund withdrawal has opened, the performance has reached the inflection point. There were 24 investment projects in the Phase I Main Fund, and 9 projects have been withdrawn. 15 investment projects in Phase I Parallel Fund, and 5 projects have been withdrawn; The financing rate of the invested project in the next round reaches 71%, and GIRR is close to 35%.
Phase I fund belongs to the early stage of investment, the layout is scattered, but in the focus of the process we harvested a number of high-quality projects. They include four pre-IPO companies and one unicorn. The main layout of the investment head projects, accounting for more than 60% of the total investment, laid the cornerstone of the performance of the first phase. After the Covid-19, the head and waist business performance are steadily rising. Among them, the core performance and new orders of the head enterprises were not hindered by the Covid-19; Under the Covid-19, the performance of waist enterprises first slowed and then rose, and there is a clear trend of recovery. In general, the overall performance of the first phase of the fund is good, the performance is commendable.
In terms of the exit management of Phase I Fund projects, the exit strategy is classified management, ensuring the development of some industries while restricting the growth of others ,and emphasis on execution. For the bottom projects, guaranteeing principal bottom line, stick to the terms, and give up relationships in comfort zone. For the waist projects, seizing the opportunity of financing merger and acquisition to exit quickly, increasing the multiple. The exit management mode of DPI and specialist management is adopted. For the head of the projects, combining with high quality securities institutions, strictly control the listing schedule, giving important support in business development. DPI and multiple combination, group management exit management mode is adopted. Over the next two years, the withdrawal of the Phase I fund will be the focus of the Triniti Capital team.
Partner Interaction
At the end of the conference, BOE Senior Vice President Lu Kuan said BOE would like to grow together with Triniti and seek more cooperation opportunities with Triniti and invested enterprises.
Zhang Yiqin, the Founding Partner of ZRC, expressed willingness to continue to participate in the project coordination and cooperation of Triniti and to have an in-depth understanding of the latest development of the invested enterprise Mofang HR. He congratulated Triniti on its excellent achievements so far.
Part2 Phase II Fund Investment Report in 2020
At the investment annual meeting of Phase II Fund in 2020, Sun Dafei, the Founding Managing Partner & CEO of Triniti Capital, gave a detailed explanation on the basic operation situation of Phase II Fund, investment strategies and the next investment and exit management plan. Lu Hai, the Founding Managing Partner, Yang Zhaoguo, the Partner, and Wang Wenchuan, the vice President of investment, conducted in-depth analysis on investment opportunities in segments under the Covid-19.
Phase II Fund Basic Operation Situation
At the beginning of the conference, Founding Partner Sun Dafei introduced the basic operation situation of phase II fund. At present, the focus of the Phase II Fund emerges initial results, performance indicators continue to strengthen. Phase II fund has been invested in 11 enterprises, including 1 unicorn ESWIN, 7 pre-IPO enterprises, 5 enterprises that have completed a new round of financing and 3 enterprises that are about to complete the next round of financing, with an overall refinancing rate of 45%.
In terms of investment strategy and approach, Phase II fund is devoted to creating a head market fund for the industry of semiconductor industry chain, and constructing a unique investment strategy of "in-depth research and excavation under industry focus + five-in-one innovative resource integration". Focus on semiconductor display, silicon and compound semiconductor industry chain, concentrates on materials, devices, equipment and future new direction. In terms of the investment team, a "two vertical and one horizontal" crossover and fusion network of display, IC industrial chain and mobile phone application scene is built, and industrial talents are continuously introduced to build a "composite team" of semiconductor industrial chain investment. At present, Triniti has a compound investment team of 10 people with rich investment experience and strong industrial background.
Semiconductor display industry investment opportunities and Covid-19 impact analysis
In the analysis of investment opportunities and the impact of the Covid-19 in each segment, Wang Wenchuan, the vice President of investment, first analyzed the semiconductor display industry chain.
In the aspect of the development path of semiconductor, China's semiconductor display industry will lead the world. The history of PV and LED shows that the final share of domestic production capacity will reach about 80%, and the rise of terminals will drive the rise of the upstream industrial chain. In terms of the layout of investment strategy, we should grasp the investment opportunities of the third generation of the old, the middle and the young, that is, there are many pre-IPO opportunities for the "old" LCD, investment opportunities for the growth period of the "medium" OLED, and "young" Mini LED & Micro LED in the early stage of the layout technology.
As a result of the Covid-19, the global semiconductor display industry's short-term supply and medium-term demand has been impacted in some degree, but they basically recovered in April . On the demand side, the Covid-19 has a greater impact on global consumer confidence. At the same time, the Covid-19 also accelerated the exit of Korean LCD industry, bringing good news to the domestic LCD industry. The projects already invested and to be invested by Triniti will face the market with low localization rate of LCD and the OLED market with fast growth rate, which will not be affected much.
IC industrial chain Investment opportunities and Covid-19 impact analysis
Next, the Partner Yang Zhaoguo commented IC industrial chain development views. At present, the global semiconductor market began to recover, the scale of semiconductor materials plate is stable.
The Chinese mainland has been growing into the world's largest market for semiconductor equipment, expected to reach nearly $15 billion this year and $16.4 billion in 2021. The overall volume of domestic semiconductor equipment is still small, and the localization rate of semiconductor materials is low. In the future, the information technology application and innovation industry will become a market with huge potential, and it is in urgent need to establish a leading enterprise of advanced packaging in China. In addition, Phase II Fund is imminent, domestic semiconductor equipment, materials are expected to usher in a golden period of development.
In addition, the Covid-19 has little impact on the semiconductor industry, nor has it prevented the investment of the Triniti and the excavation of high-quality underwater reserve projects. Instead, the China-Us confrontation has accelerated the investment rate of domestic substitute import.
Analysis of investment Opportunities in the industry chain of mobile application scenarios and the impact Covid-19
Under the mobile application scene industry chain segment, Founding Managing Partner Lu Hai made an in-depth analysis of the industry situation and the development of Triniti .
In 2019, 1.37 billion mobile phones were produced worldwide, and 695 million domestic mobile phones were produced. Domestic mobile phones have kept rising against the trend, accounting for half of the world's total. Continuous innovation and trade wars in mobile phones have accelerated the development of Chinese enterprises. Through the integration of layout IC, semiconductor display and mobile phone scene, three runways are formed. With the deepening of two vertical and one horizontal industrial resources of Triniti, cross-fire and complementary coordination form verification channels and post-investment resources, which are easy to be favored by the target. Mobile phone innovation will never stop. Triniti will continue to pay attention to new demands and new technologies, especially in the fields of camera shooting, radio frequency, heat dissipation and charging, which cooperate with IC and display. Ranking by cost proportion, continuously excavating high-value subdivision fields; Basing on the benchmarking enterprises in the industry, the grey horse marks in the upstream supply chain of materials and equipment are explored.
Although the mobile phone application scene industry is in a short-term downturn under the impact of the Covid-19 and the supply recovery is slow, we believe that domestic mobile phones are expected to restructure the industrial pattern in the future.
Phase II fund investment and exit management
Founding Managing Partner and CEO Sun Dafei shared the next investment and exit management plan of Triniti. Phase II fund investment projects bloom in many places, investment results can be expected, Triniti of continuous excavating fusion projects under two vertical and one horizontal investment strategy. Semiconductor equity investment market in China is active, and the Phase II fund will follow the trend. We will continue to provide in-depth industrial resource connection and financing services after investment, and cooperate with competitive securities companies to accelerate the project business development and capitalization process.
At the end of the conference, Zhang Han, the Managing Director of ORIZA FOFS, Sun Dafei, the Founding Managing Partner and CEO of Triniti Capital, and Lu Hai, the Founding Managing Partner, had an in-depth discussion on the division of investment among Triniti Capital and the reasons for the differences in the development trend of the industry under the Covid-19.
The year 2020 is the fifth year of Triniti Capital. Triniti has been trying to explore in the past few years, harvest past achievements and growth, summarize past mistakes and experience, and finally create a semiconductor industrial chain investment layout and complete a brand new transformation.Thanks for the support and trust of partners, we wish we could make more achievements in the new year, accompany each other and grow together.
About Triniti Capital
Triniti Capital concentrates on the field of science and technology, focuses on the investment in the semiconductor industry chain, and mainly invests in the domestication of materials, equipment and devices under the background of scientific and technological innovation.It has invested in more than 30 enterprises such as ESWIN, Shandong Jingdao Electronics, QST, Darbond Technology, Hperions, HOZEL, Keihin Optical, SeiChiTech,Re-Fire, Air Touch, Yiguo, Yuanfu Logistics, Dream Maker, Ponhu Technology.
Triniti Capital is committed to building an excellent market fund in the field of semiconductor. Adhering to the enterprise philosophy of "Commitment, Temperature and Discipline", Triniti Capital has been deepening industrial chain resources, seeking out outstanding entrepreneurs and working with them to create value together.
