Li Xingchun of Lide Group: The era of science and technology innovation has begun, and it is entrusted with professionalism and awe

A few days ago, the 5th China M&A Fund Annual Conference came to an end in Suzhou, li Xingchun, president and CEO of Lide Group, was invited to attend the forum as a guest of the forum, and together with Wei Lidong, president of the China Mergers and Acquisitions Association, Chen Ru, former executive president of BOC Fund Management Company, Yu Mingli, deputy general manager of China Merchants Securities Investment Bank Headquarters, Zhou Qiyong, chairman of Shanghai Innovation Investment Group Co., Ltd., Chen Shiyou, managing director of China International Capital Corporation, and Cai Yong, chairman of Guoyuan Securities Co., Ltd., jointly discussed the " The road to fund development in the era of science and technology" launched a roundtable discussion on the spot.

Self-transformation must take root in the profession

Dr. Li Xingchun, President/CEO of Lide Group, was invited to respond first to the topic of how institutions can self-transform the development of M&A business in the context of the vigorous development of science and technology.

Li Xingchun said that the self-transformation in the era of science and technology innovation is not contradictory to professionalism and concentration, and it can even be said that only by adhering to focus and focusing on professionalism can we respond to changes in the rapidly changing era of science and technology. Taking the transformation and upgrading achievements of the 11-year-old Lide Group in the past three years as an example, what has changed is the business means and structural layout, and what has not changed is the strategy of adhering to financial compliance, the continuous focus on the investment field, and the focus on corporate values, business missions, and customer achievements. Investment is the balance of risk and return, "in-depth research • value investment" has always been the concept of profitable investment, mergers and acquisitions of business areas, is no exception. Relying on our own resource advantages, we continue to invest in the fields of intelligent manufacturing, military-civilian integration, great health, consumption upgrading, and new energy that we are mainly digging deep into, looking for value.

Regarding the thinking of investment banks' self-reform, Yu Mingli, deputy general manager of the headquarters of China Merchants Securities Investment Bank, believes that it is necessary to adapt to the development of professional dynamic demonstration opportunities, and said, "In the next 3-5 years, the standard for measuring securities companies and investment banks is the industry (pricing) ability of your stock issuance." "

Science and technology innovation should be more long-term and professional

"Science and technology" is the most sparkling two words in China's capital market in 2019, in the first anniversary of the establishment of the science and technology innovation board, an important node of the official opening of the market for 100 days, the science and technology innovation board is committed to professional investment and long-term value management, and the original intention of serving the transformation and upgrading of the real economy resonates with the guests on the spot.

In the era of science and technology, the advantages of buyout funds should be brought into play to promote the upgrading of the industry and the transformation of new and old kinetic energy. Science and technology need to be constantly innovated, but for investment, Zhou Qiyong believes that "science and technology and innovation is a kind of re-compatibility of elements and the reengineering of values, which requires deep research and grasp to understand the laws and logic of industrial economic development.

Professionalism and long-term focus is an effective guarantee for the income of fund investment, and Chen Shiyou, managing director of CICC, believes that special attention should be paid to the landing scene, especially technology such as artificial intelligence, and pure technology is difficult to gain the favor of investors

Regarding the investment trends and key points in the era of science and technology, Dr. Li Xingchun, president of Lide Group, believes that the opening of the era of science and technology innovation is the luck of our generation. Several of Lide's previous investments have successfully landed on the Science and Technology Innovation Board, which is related to Lide's insistence on the investment track and also related to Lide's talent concept. He agreed with Guoyuan Securities Cai Yong's most critical investment is the team, that is, the view of people. "When I held a management meeting within the group last year, I stressed that the future of Profits Investment needs to be supplemented by more technical professional investment managers. In the past, most of the investment managers in the investment industry were MBA and financial professionals, but the era of science and technology innovation has come, and the professionalism of investment is more demanding than that of the industrial age. If you want to obtain relatively certain returns responsibly for investors, you must understand the trend of science and technology, understand the development of the industry, understand the state of the technology frontier, understand the height of technical barriers, etc., and really have in-depth research on technology. In the past few years, those who take high salaries are often learning finance and management, and I believe that the country will also undergo some transformation from the entire educational orientation, returning to the state of advocating science and technology of 'learning mathematics, physics and chemistry well, and walking all over the world without fear'. For investment management, the future excellent investment managers should also be cultivated from professional and technical talents. "

"I'm going to hire a chief scientist." This view thrown by Li Xingchun at the forum site triggered warm applause at the scene. Regarding the resolution that caused the group's board of directors to diverge, Li Xingchun believes that "the shift from capital investment to technology investment is an inevitable trend in the era of science and technology innovation." In the context of the era of science and technology innovation, the capital market does need more scientists to join the investment team. This is a huge change and challenge in this day and age about investing. "

Li De Li Xingchun: Reverence return entrustment

"The advent of the era of science and technology innovation represents, on the one hand, the opportunities in the market have increased, and at the same time, the risks have also increased." The registration system has changed the rules and changed the investment thinking, Dr. Li Xingchun, president of Lide Group, said, "The previous investment may not have to look so deep and so far, for example, we judge that the high probability of the target can be successfully listed, then basically the corresponding investment return will not be bad." However, after the registration system, the pricing more reflects the will of the market, and the company you invest in is completed and listed, but your investment may not necessarily have a positive return, and it may even be a loss. This allows investment to return to the essence of value and away from speculation. Price fluctuations, value regression and differentiation are normal market behaviors, which are the result of handing back the option to the market for game. Therefore, for future investment, we must have a reverence for the heart, but also a reverence for the market, a reverence for the legal system, a reverence for the profession, and a reverence for investors. "

Regarding reverence, Li Xingchun further explained to reporters that good and successful investment is inseparable from reverence. He believes that Chairman Yi's "four reverences" are the basic principles for the valuation and due diligence of the science and technology innovation board.

First of all, "respecting the market and respecting the law" is not only a requirement for fund managers, but also the first requirement for the founders and teams of "hard technology" science and technology innovation enterprises. Only by conforming to the law of development, benefiting human beings, social development, and meeting the needs of science and technology, and at the same time having a high advanced technical barrier in its field, can it gain market recognition, and eventually make a profit, and even become a unicorn;

Second, it is "reverence for the rule of law and obedience to the rules." If the application scenario of a "hard technology" with a breakthrough impact is anti-human, anti-legal, anti-moral, such as human cloning in the field of biomedicine, or even human embryo gene hybridization, this technology is not a good investment target no matter how hard it is;

Again, "reverence for the profession, highlight the main business." Lide's investment team believes that professional and main business indicators are absolutely the top priority in the specific dimension of due diligence on the sci-tech innovation board. In the 11 years of Lide Investment development, due to the coincidence of its own resource endowment, it has accumulated a large amount of valuable investment experience in the fields of information technology, high-end equipment and new energy, and has established a deep cooperative and interactive relationship with domestic and foreign experts and well-known research teams in these fields. It is these experiences that make us know that only by adhering to the investment track can we practice the concept of "in-depth research and value investment". Science and technology innovation forces, is the future force, is the embodiment of the rise of great powers, the "hard technology" of related enterprises, hard must be leading, irreplaceable, short-term difficult to surpass the professional, and the main business of the prominent focus and not drift, is the hard guarantee;

Finally, as an asset manager, the most important thing is to "respect investors and return investors". No matter how perfect the valuation model is, no matter how much due diligence is done, if it cannot bring benefits to investors, it is all a vain and meaningless flicker, and it is a failure to entrust investors. The original intention of valuation and due diligence is to find value and capture value, traditional enterprises have relatively mature industry valuations for reference, there are also mature due diligence necessary indicators for risk control, but the sustainable development, uncertainty, rapid iteration of science and technology innovation, etc., beyond the update of reference systems and indicators, so that managers, investors, and pricing investment banks are facing the status quo of crossing the river by feeling the stones. The closer you get to money, the more human nature is tested. Only a manager with reverence, a responsibility to investors, and a responsibility to win returns for investors will his valuation system and due diligence become more effective in awe. "