Shanghai International Asset Management

SGIL

Shanghai International Shanghai Growth Investment Limited (“SGIL”)

Corporate structure:

Shanghai International Shanghai Growth Investment Limited (“SGIL” or the “Company”) is an investment company incorporated in the Cayman Islands with limited liability in 1993 and is currently listed on the Hong Kong Stock Exchange with ticker 770.HK. Shanghai International Asset Management (HK) Co., Ltd. (“SIAM”) is appointed as the investment manager of SGIL since November 1993.

Philosophy

The Company aims to achieve long-term capital appreciation through direct investments in the Greater China Region. The investment philosophy of the Company is identifying, screening, analyzing, and conducting due diligence on investment potentials, primarily in existing or newly established enterprises with foreign participations under the applicable laws for foreign investment in the PRC. The main realization strategy will be by the sale of investment upon or after their listing or by the sale of investments to joint venture partners, co-investors or third party investors. SGIL also invests in China-related listed securities.
Portfolio Companies which have been listed in world exchanges


Global Market Group Limited (“GMG”)
Bloomberg code: GMC.LN

GMG operates a B2B Internet platform that connects high end Chinese manufacturers with quality international buyers. GMG’s customers can post their profiles and product information in standardized formats, in order to generate trade leads.

SGIL invested in GMG as a holder of preference shares since 2008, SGIL participated in GMG’s growth, business strategies and subsequently, its listing on the Alternative Investment Market of the London Stock Exchange in the United Kingdom on 22 June 2012 with a market capitalization of GBP128 million.

SGIL converted its preference shares investment into ordinary shares and became an equity shareholder of GMG, taking a long term view of its promising future.

Real Nutriceutical Group Limited (“RNG”)
Bloomberg code: 2010.HK

Founded in 1997, RNG is a provider of health-related products, with a primary focus on amino acid-based nutritional supplements in the Chinese market. According to a survey conducted by Euromonitor International Plc., RNG was the largest manufacturer of amino acid-based nutritional supplements in China with a 45% market share in 2011. RNG’s product portfolio stretches across the entire health industry spectrum, including nutritional supplements and general health food, health drinks and pharmaceuticals.

SGIL invested in RNG and became its equity holder in the 2317. RNG listed on the Hong Kong Stock Exchange in February 2010 with a market capitalization of over HKD3 billion. SGIL subsequently

SunArt Retail Group Limited (“SAR”)
Bloomberg code: 6808.HK

SAR operates hypermarkets in first tier cities such as Shanghai and Beijing, populous second and lower tier cities such as Nanjing, Suzhou, Hangzhou, Ningbo, Hefei, Dongguan, Wuhan, Changde, Shenyang, Mudanjiang, Xi’an and Lanzhou, as well as in the suburban areas in first tier cities. As at 30 June 2012, SAR had 240 hypermarket complexes across 24 out of 31 provinces, autonomous regions and municipalities in China. According to Euromonitor estimates, SAR is the largest and fastest growing hypermarket operator in China in terms of sales in 2011 and in market share increase from 2008 to 2011 respectively. Currently, SAR operates hypermarket business under two well-recognized brands, namely “Auchan” (欧尚) and “RT-Mart” (大润发).

SGIL invested in SAR group and became its stake holder in 1998 and subsequently, disposed the holding with substantial gain recorded in 2004. SAR was eventually listed on the Hong Kong Stock Exchange in July 2011 with a market capitalization of around HKD 70 billion.

Semiconductor Manufacturing International Corporation (“SMIC”)
Bloomberg code: SMI.US, 981.HK

SMIC is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) foundry and technology services at 0.35-micron to 40-nanometer.  Headquartered in Shanghai, China, SMIC also has customer service centers and marketing offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong.

SGIL invested in SMIC and became its equity holder in 2001. SMIC obtained dual listing on the Hong Kong Stock Exchange and New York Stock Exchange in March 2004 with a market capitalization of over HKD 85 billion. SGIL subsequently disposed the listed shares of SMIC in the secondary market in several batches and recorded considerable gain.

Harbin Brewery Group Limited (“HBG”)

As one of the oldest brewers in China, HBG has a leading position in Northeast China and produces the Hapi beer brand. Through its subsidiaries, HBG brews, distributes and sells beer in China. HBG was listed on Hong Kong Exchange in June 2002, but was eventually privatized in 2004 by global beer manufacturers.

SGIL invested in HBG and became its bond holder in 2001. HBG was listed on the Hong Kong Stock Exchange in June 2002 with a market capitalization of approximate HKD 2 billion. SGIL redeemed the bond in 2003 and realized a substantial gain.

 

Net Asset Value