During a recent investor inquiry session, Zhejiang Orient Holdings Group Co.,Ltd. (SHSE: 600120) detailed the operational framework of its fund business segment. The company stated that its overall fund division is structured according to relevant state-owned asset regulations, establishing a management model characterized by 'one control and one participation'.
The 'one control' aspect refers to its wholly-owned subsidiary, Orient Industrial Investment. This entity primarily focuses on creating synergistic fund scenarios around the advantageous industries of the provincial state-owned trade group. It collaborates with the group's industrial resources to jointly initiate and establish funds such as the healthcare industry fund, concentrating on investment and incubation in cutting-edge fields to cultivate future growth engines. Additionally, it utilizes industrial fund instruments to participate in strategic investments in key supply chain segments like cross-border services and logistics.
The 'one participation' aspect points to Hangzhou Orient Jiafu, an investee company of Orient Industrial Investment. This is a market-oriented investment institution co-established by Orient Industrial Investment and a professional team, featuring the characteristics of state-owned background, professional management, and market-driven operations. Its main responsibility is to 'invest early, invest in small companies, and invest in hard technology,' with a greater focus on incubating high-quality enterprises. This approach typically involves a longer investment cycle and a higher risk tolerance.
Its investment direction is primarily the forward-looking layout in frontier technology sectors, such as quantum technology, bio-manufacturing, and embodied AI. It has already announced several representative cases. For instance, in the embodied AI field, the Jinhua Jinwu Minfu Fund, in which the company holds a 34.75% stake, invested 40 million yuan in Qianxun Intelligence, a company developing embodied AI models, and 25 million yuan in Guangyu Xinchen, a company focused on edge-side large model chips. The Hangzhou Xingfu Fund, with a 46.77% stake from the company, invested 11.11 million yuan as an early-stage investor in Aerospace Yuxing. The Hangzhou Junfu Fund, with a 17.78% stake from the company, invested 30 million yuan as an early-stage investor in Weina Hexin in the optical communications field and 30 million yuan in Jiuzhang Yunjie, a provider of AI infrastructure and intelligent computing cloud services.
Over the past decade, 35 companies from the firm's fund division's investment portfolio have completed IPOs, with 13 of those listing on the STAR Market. The company is currently also focusing on the exit arrangements for its existing funds. Notably, the expansion of IPO standards for high-tech enterprises is viewed as a positive signal for fund exits. However, it is important to note that future returns from fund exits do carry inherent uncertainty, and investors should be mindful of the associated investment risks.
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