INVESTMENT PROCESS

Our Investment Process is concluded as below:

• Identify potential investment targets:We prefer investing in high quality companies (high operating margins, high returns on assets and equity, good balance sheets etc.), especially those operate in the industries of our interests.

• Collect relevant information:We collect as much as relevant information as possible since we are research driven investor. We attend investment presentations & meetings and read industry publications & sell-side reports & comments from industry experts.

• Conduct a research report based on the understanding of the business:We conduct research reports based on our understanding of selected business. Contents of our research include but not limited to: industry backgrounds, projected future cash flows, competitive advantages, potential risks, future market analysis and valuation of the company. We will determine a price that we would pay for a company (in the case of acquisition or in the case of equity financing) in a negotiated transaction.

• Evaluate the management team:Whether the targeted company’s management team is a high-performance team and whether we can collaborate with then well is crucial while making the investment decision.

• Plan for the risk control:There are always potential risks for investments but there are always methods to appropriately avoid risks at a maximum level.

• Meetings, Discussions and Negotiations:We look for high quality investment opportunities at prices that are at an adequate “margin of safety”. Hence we meet, discuss and negotiate with the team of targeted company.

• Exit:We will sell the company or do an Initial Public Offering according to different business situations after the company has reached our pre-set goals.

Industries of Interests

• Aged/ Senior Care

• Health Care

• Culture communication

•  Education

• Tourism development

• Traditional trade

• Agriculture