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21st Century Business Herald reporter Zhao Na reports

On July 26, Yida Capital released the "2023-2024 ESG Report" (hereinafter referred to as the "Report"). This is the fifth "ESG Investment Report" released by the company, which discloses to investors and other stakeholders the company's philosophy on ESG issues in its operations, the management methods it has established, the work it has promoted, and the results it has achieved.

As in previous years, the "Report" also presents to the industry this team's understanding of the times, observations on the industry, and requirements for themselves.

This year's "Government Work Report" proposed to "vigorously promote the construction of a modern industrial system and accelerate the development of new quality productivity", and mentioned cutting-edge emerging industries such as hydrogen energy, new materials, innovative drugs, new growth engines such as biomanufacturing, commercial aerospace, and low-altitude economy, and new tracks such as quantum technology and life sciences.

"The VC industry is receiving unprecedented support from the country's top-level design." Ying Wenlu, chairman of Yida Capital, said that the core content of the national plan to cultivate new quality productivity is also the direction that the venture capital industry has been pursuing and the track it has been working on for a long time. The VC industry shoulders an important historical mission and has unique value in promoting a virtuous cycle of technology, industry, and finance and boosting the development of new quality productivity.

Nearly 1,000 companies have invested in total

Yida Capital was established through the internal mixed-ownership reform of Jiangsu Hi-Tech Investment Group in 2014. It mainly focuses on long-term research and value investment in key core technology fields such as life sciences, semiconductors, new energy, new materials, new generation information technology, aerospace and military industry.

Since its establishment, Yida Capital has invested in a total of 910 companies, 90% of which are small and medium-sized technology companies, including 321 provincial-level specialized and innovative enterprises, 198 national-level specialized and innovative "little giants" enterprises, and 11 national manufacturing single champions. Among them, 32 "little giants" enterprises have successfully listed on the A-share market.

Among them, the company has made 105 investments in 2023, invested in 95 outstanding startups, with investments in key technology fields accounting for more than 97%, and 13 new IPO companies. At the same time, the company's equity investment fund sector allocated more than 4.6 billion yuan to investors in 2023.

The Central Economic Work Conference at the end of 2023 proposed for the first time to "encourage the development of venture capital and equity investment" and made it one of the important contents of leading the construction of a modern industrial system with scientific and technological innovation.

China is currently in a period of independent and controllable transformation, an accelerated period of industrial upgrading, and an explosive period of technological innovation. In the historical stage of "three phases overlapping", all walks of life are working hard to climb, and there are difficulties and confusions during the period. However, the more such crossroads, the more it can temper the judgment of an institution. The more such a critical moment, the more it can show the vitality of an institution.

Ying Wenlu introduced that after fully analyzing the internal and external environment, Yida Capital will continue to develop along the main line of high-level self-reliance in science and technology and strengthening and supplementing the supply chain. At the same time, the team is using ESG to measure and guide the invested companies to reduce the occurrence of black swan and gray rhino events. Strengthen the construction of its own ESG standard system and greatly increase the safety cushion of equity investment.

ESG operations introduce the “Red and Blue Army Mechanism”

As ESG becomes the cornerstone of investment institutions' capacity building and strategy formulation, Yida Capital's investment in this field has been increasing year by year in recent years.

Looking back to 2018, Yida Capital began to fully transform into the technology track. It was the first in the industry to propose that technology investment shift from "Nice to have" to "Have to have", and sorted out 14 key core areas for future technology investment for key investment layout.

The report shows that Yida Capital's average investment intensity in 14 key technology fields over the past five years has exceeded 90%. Among them, the company continued to deepen its investment layout in the field of hard technology in 2023, paying more attention to high-end technology and independent innovation, and making investment in segmented tracks and industrial chains clearer.

Specifically, in 2023, the company continued to deepen its investment in fourteen key core technology tracks, including semiconductors, intelligent manufacturing, new materials, new generation information technology, new energy and life sciences. The number of investment projects in core technology tracks accounted for 97.1%, and the amount accounted for 97.6%, setting a new high.

Yida Capital is also constantly making new explorations in ESG management, such as the "Red and Blue Army Mechanism".

A reporter from 21st Century Business Herald learned that Yida Capital actively promoted the reform of the investment review system in 2023 and established a "1+4" investment review system that highlights industry attributes. That is, an ESG review committee will be established at the company level to continuously optimize the ESG investment standard system and practice ESG investment; at the same time, four industry investment review committees will be established, namely the New Generation Information Technology and Semiconductor Investment Review Committee, the New Energy, ICT and Digital Economy Investment Review Committee, the New Materials and High-end Manufacturing Investment Review Committee, and the Great Health Investment Review Committee.

The "blue" in the "red and blue army mechanism" refers to the blue army mechanism that newly introduced 24 industry, risk control and compliance experts to serve as investment review committee members, which aims to strengthen project risk control and improve the professionalism and efficiency of investment decisions.

First expansion of western fund territory

This newspaper reported at the end of June that the total subscribed scale of the National Small and Medium-sized Fund's sub-funds exceeded 108 billion yuan, with a total of 42 funds.

Among the sub-fund managers of the National Small and Medium-sized Fund, Yida Capital is one of the first four management institutions and one of the very few fund managers in the industry that has received investment from the National Small and Medium-sized Fund twice.

The report shows that the total scale of the small and medium-sized enterprise development series funds managed by Yida Capital has reached 8.5 billion yuan. Since its establishment, it has focused on strategic emerging industries and helped small and medium-sized enterprises build "specialization, precision and innovation" capabilities.

Among them, the Small and Medium-sized Enterprises No. 1 Fund has invested in 140 projects, of which 118 enterprises were selected into the echelon of specialized, refined and innovative enterprises, accounting for 84.29% of the total number of investment projects. The Small and Medium-sized Enterprises No. 2 Fund has completed investment in 87 projects, of which 70 were selected into the echelon of specialized, refined and innovative enterprises, accounting for 80.46% of the number of invested projects.

In addition to the small and medium-sized series of funds, the company has also established a number of regional specialized and innovative funds to fully utilize the industrial endowment advantages of various regions and expand the space for industrial and financial cooperation.

Relying on a wealth of fund products, Yida Capital has deeply promoted the integration of specialized and innovative "small giant" enterprises into the industrial chain, supplementing and strengthening the strategic emerging industries. The reporter learned that Yida Capital first expanded its western fund territory in 2023, and the 500 million yuan Chengdu Yida Jiaozi Huantou Xinghua Venture Capital Fund has officially landed.

"The blueprint for future development is already very clear. For the venture capital industry, only by seeing the direction clearly and strengthening confidence can we better seize the opportunities of the times." Ying Wenlu told reporters that venture capital has entered an era of refined cultivation, which puts greater pressure on the professional capabilities of institutions. "For professional players, in the current industry environment, they need to rely on capacity building and strategy adjustments to consolidate development and control risks. In the long run, brand institutions with a good venture capital culture and insisting on being 'good kids' are expected to win greater development space."