Financial Investment

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Financial investment is the flagship business of SIIC, and an important carrier of the strategy of integrating finance and industry. Currently, the financial investment sector has primarily formed a financial services industry chain of “investment-lending-guarantee-finance”, and obtained financial services licenses of financial company, finance lease, mortgage, small loan, guarantee, private placement, auctioning, bid and tender, etc. The financial investment sector, under the banner of integration between finance and industry, aims to accelerate the development of industrial business and to enhance the level of financial investment business by bringing the lever and scale effect of the finance into full play through collaboration at home and abroad as well as interaction with entity industries. The financial investment business structure is as follows:

Note: Financial enterprises listed above include both direct subsidiaries and non- direct subsidiaries.

SIIC Investment (Shanghai) Co., Ltd.

With the approval from the Ministry of Commerce, SIIC Investment (Shanghai) Co., Ltd was established in December 1994 as a wholly foreign-owned investment company. Currently, the company owns HKD 11 billion worth of total assets, and a net asset over HKD 9 billion.

Investment Shanghai wholly owns “5+1” domestic and overseas joint operation platform, i.e. SIIC Investment (Shanghai) Co., Ltd. (wholly foreign-owned), Shanghai Overseas Company, Shanghai Asset Operation Co., Ltd. (domestic enterprise), Shanghai Industrial Investment Co., Ltd. (overseas enterprise, Hong Kong), Hong Kong South Pacific Hotel Co. Ltd. (overseas enterprise, Hong Kong) - and Shanghai International Asset Management (HK) Co., Ltd. (overseas enterprise, Hong Kong); holding or partially holding “Shanghai Pudong Science and Technology Investment Co., Ltd.”, “Shanghai M&A Fund” and other specialized, market-oriented and diversified business platforms; holding or trusted with financial equities in Haitong Securities (600837.SH), CPIC (601601.SH), Longjiang Bank and other securities, insurance, and commercial banks.

Investment Shanghai integrates a variety of member enterprises, multiple professional license and qualifications, and diversified business platform. It owns overseas enterprises, wholly foreign-owned enterprises, Sino-foreign joint ventures, domestic enterprises, State-owned enterprise, and other forms of enterprises; involves investment subjects and operation platforms of different natures and different types; possesses multiple financial services licenses including the “Private Investment Fund Manager” certificate issued by the Asset Management Association of China, Type 4 license (Advising on securities) and Type 9 license (Asset management) issued by Securities and Futures Commission of Hong Kong.

“Cultivate values and Achieve Win-win”. It is in this spirit that Investment Shanghai, strategically positioned to be a specialized cross-border asset management company, mainly specializes in asset management, industry cultivation, financial service, fund management, equity investment, strategic investment and market value management, etc., persistently adheres to the belief of value investment, focuses on value management, and carefully cultivates values, with a view to make investment activity full-process value activity and secure maximum values for shareholders and partners with value discovery, value creation, value realization and value sharing as the main line.

Shanghai Investment & Asset Management Co., Ltd.

SI Asset, formerly SIG Investment and Development Co., Ltd. (“SI Development”), was founded in May 2013, with three affiliates, Shanghai SI Real Estate Co., Ltd. (“SI Real Estate”), Shanghai Tongda Real Estate Co., Ltd. (“Tongda Real Estate”) and Shanghai Shenglong Investment Management Co., Ltd. (“Shenglong”), sharing one office for integrated operation and management. In July 2013, Tongda Real Estate set up Shanghai SI Capital Management Co., Ltd., a wholly-owned subsidiary, as the company’s financial real estate operation platform for marketization and specialization. In May 2014, Tongda Real Estate was renamed SI Asset. In June 2014, SI Development and its affiliates were collectively incorporated into SIIC. In November 2014, SI Development was renamed Shanghai SI Holding Co., Ltd. (“SI Holding”). In March 2015, as per the unified arrangements by SIIC, SI Holding took part in SIDC’s non-public offering project; all of the equity shares of SI Real Estate, six in-progress project companies affiliated with Tongda Real Estate, and Shanghai New Century Real Estate Service Co., Ltd. were transferred to SI Holding, and thereby injected into SIDC along with SI Holding; the equity shares directly held by SI Holding in other companies were transferred to SI Asset. SIIC received, through transfer by agreement, 100% of the equity shares of SI Asset held by SI Holding. After this round of reconstructing, SI Asset became a directly-owned enterprise of SIIC.

SI Asset strictly adheres to one single strategic positioning, which is “to become a leading financial investment and asset management platform in China”. Based on this strategic positioning, it’s committed to co-developing three major business sectors (asset operation management, emerging industry fund, and urban development fund) with “Finance +” and “Internet +” as the main capital line and the main operation line respectively, capitalizing on four platforms, i.e. SI Asset, SI Capital, Shanghai Real Power Capital Co., Ltd. (“Real Power Capital”), Shanghai Real Estate North Investment and Development Co., Ltd., fulfilling the function as the leading implementer of SIIC’s financial strategies, and facilitating the upgrade and transformation of SIIC’s core industries. Under the overall strategic framework of SIIC, SI Asset is striving to deepen the investment fund commercial model, gradually establish competitive advantages and brand characteristics by investment segment, expand the asset management scale and income scale, establish a diversified large asset management system with multiple dimensions and multiple levels, establish its position and core competitiveness in the industry by investment segment, and ultimately realize the strategic goal of becoming one of the top financial investment and asset management platform companies in China.

Shanghai Huadong Industrial Co., Ltd.

Huadong Industrial, originally a military-owned enterprise, was handed over to local government in 1999, with a registered capital of RMB 200 million and a total asset of RMB 600 million, mainly engaged in providing financial services, running and managing investment enterprises, and providing investment-related consulting and service business.

In recent years, Huadong Industrial has primarily formed the business model with “financial services at the core, supplemented by asset management”. At present, Huadong Industrial has two wholly-owned subsidiaries, namely Shanghai Huadong Asset Operation Co., Ltd. and Shanghai Huahao Investment Management Co., Ltd., and holding or relatively holding companies such as Shanghai Yangpu Huadong Micro-Credit Co., Ltd. and Shanghai Huaquan Trade Storage Co., Ltd. Its business scope covers micro-credit, capital operation and asset management, etc.

Its main financial services asset is Shanghai Yangpu Huadong Micro-Credit Co., Ltd., which, established on October 17, 2011, is mainly specialized in providing financing services for medium, small and micro-sized enterprises. Currently Yangpu Micro-Credit is playing its role as the micro-credit financial services end to the full, developing such products as integration between finance and industry, investment, lending and guarantee, and providing financing services to upstream and downstream small and micro-sized enterprises along the industrial chain by leveraging the large-scale industrial system of SIIC.

SIIC Financial Services Holdings Ltd.

SIIC Financial was established on May 13, 1987 with a registered capital of 409 million RMB. The company is engaged in investment, operation and consultation of various businesses related to capital, asset service and management, as well as international bidding, commodity and technology import and export business.

In recent years, the company, with a focus on investment and operation in two major areas, that is “similar financial business” and “financial intermediary and related supporting services”, has formed a business layout integrating finance leasing, pawn, commercial factoring, auctioning, and bidding, respectively run by five subsidiaries, namely Shanghai Guojin Leasing Co., Ltd., Shanghai Guo Sheng Pawn Co., Ltd., Shanghai Guoli Factoring Co., Ltd., Shanghai SI Tendering Co., Ltd. and Shanghai Possession Auction Co., Ltd. In addition, it has set up Jin Kong Tong, an internet-based asset transfer platform at the corporate level. Currently, it enjoys a relatively higher position in business areas like finance leasing, pawn, auctioning, tendering and bidding, etc.

Shanghai Re-guarantee Co., Ltd.

Shanghai Re-guarantee Co., Ltd. is the only professional re-guarantee institution in Shanghai that was founded with the approval by CPC Shanghai Party Committee and Shanghai Municipal Government, with a business scope covering guarantee, re-guarantee, investment and investment consulting, and asset management, etc. The company was co-invested and established in 2009 by five state-owned shareholders, currently with a registered capital of RMB 1.001 billion; it is the largest local guarantee institution in Shanghai in terms of registered capital and business scale, and also the only guarantee institution with AA+ corporate credit rating on the capital market.

Since its establishment six years ago, by upholding the core values of “serving the overall interests with steadiness, practicability, probity and self-discipline” and sticking to the functional positioning of “market-oriented operation and policy function”, Re-guarantee Limited has consistently dedicated itself to guarantee as its main business, and to serving medium and small-sized enterprises, technological development and the real economy as its main operation direction. It has maintained a rapid growth in its main business, while its various functional and business indicators have stayed firmly ahead of competition in Shanghai market, bringing its role as the policy leader in local finance and state-owned assets area to full play, and consolidating its market dominance in Shanghai guarantee industry.

Re-guarantee Limited has been honored with “Best Service Award in Small and Micro-Credit Industry in China”, “Best Partner in Financing Service Industry for Shanghai SMEs”, nominated for “Shanghai Financial Innovation”, “Best Partner in Shanghai Small Loan Industry”, “Advanced Grass-roots Party Organization in Shanghai Financial System”, and so on. In 2015, the company was granted the most prestigious award in Chinese financial industry - the “Best Risk Control and Financing Guarantee Company of the Year” of the “Golden Dragon Awards • Ranking of Chinese Financial Institutions”, with its top-notch risk control capability in Shanghai guarantee industry and among Chinese re-guarantee institutions. In 2016, in the selection of “Strength of the Decade” in Chinese guarantee industry held by “China Guarantee”, an authoritative magazine in the guarantee industry, the company won the honor of “Most Influential Re-guarantee Institution”.

SIIC Shanghai Venture Capital Co., Ltd.

SIICVC was established on November 30, 2011 with a registered capital of 1 billion RMB according to the principle of “government promotion, market orientation and society participation” using special fiscal funds of the municipality and the enterprise’s own capital, which is part of the important measure adopted by Shanghai Municipal Government to support the development of medium and small-sized enterprises, especially medium and small-sized technology enterprises by facilitating the investment and financing services system innovation of medium and small-sized enterprises through the mechanism of investment, lending and guarantee linked with investment and financing. It is now the legal representative and vice president unit of Shanghai Venture Capital Association, and one of SIIC’s VC investment platforms.

In December 2014, SIICVC set up Shanghai SIIC Fund Management Co., Ltd. (“SIICFM”) as a specialized funding operation platform. With an advantageous background in the finance sector while making advantage of the rich industrial resources of SIIC Shanghai, SIICFM attracts a great variety of financial resources, industrial resources, service resources onto the platform by means of specialized, market-based operation and management, forming two major business functions with its own unique characteristics (namely special fund management and comprehensive financial service) with the innovative business model of “investment + X” at the core. Currently SIICFM is entrusted with all assets of SIICVC, and has initiated and set up multiple special VC funds open to the society, focused on VC and angel investments in such industries as TMT, medicine and health care, intelligence, energy conservation and environmental protection. In addition, SIICFM has also been entrusted with providing professional management services for multiple social funds.

SIIC Group Finance Co., Ltd.

SIIC Finance is a non-banking financial institution within SIIC Shanghai, dedicated to serving SIC Shanghai and its member enterprises.

SIIC Finance, for which the preparation of establishment was approved by CBRC (YJF [2014] No. 36) in January 2014, was approved (HYJF [2014] No. 561) to be set up in August 2014, incorporated in September, and open for business in October. SIIC Finance, with a registered capital of 1 billion RMB, was co-invested by SIIC Shanghai, SPH, SIIC Shanghai Asset Operation Co., Ltd. and SIIC Dongtan Investment & Development (Holdings) Co., Ltd., with a shareholding of 40%, 30%, 20%, and 10% respectively.

Upholding the tenet of “relying on the Group, providing services as the main business, standardizing operation, and maintaining stable and healthy development”, SIIC Finance is sparing no efforts to form a new norm of fund pooling management integrating the Group, the Finance Company itself and member enterprises with a view to improve the fund pooling management and usage effectiveness in strict accordance with the Group’s development strategy of integrating finance and industry.