Investment philosophy:
Safeguarding financial security while ensuring long-term profitability; increasing assets’ value by facilitating healthy development of investment targets.
Investment strategy:
We pursue a diversified and prudential investment strategy developed based on the principles of market-orientation and commercialization, whereby target companies with a sound business model and excellent market potential are identified, invested in and fostered, employing a wide variety of investment channels and instruments such as direct investment, private equity, joint investment and debt financing. Efforts are made to tap into the value of assets owned by investment targets, while ensuring effective investment risk control to safeguard CNIC’s long-term interests.
Our Vision：
Growing into a dynamic platform supporting Chinese companies going global, and making a world-class investment company and a market leader in China
1.Energy and resources
CNIC offers financial support and professional services around M&A for the cost-effective development and utilization of resources in such areas as oil and gas exploitation and refining, pipeline transportation, electricity, clean energy, metal minerals and more.
2.International technological exchange
By providing financial support and professional services in the field of M&A, CNIC supports enterprises with technological edges and development potential to cooperate in a wide range of fields. These include high-end equipment, intelligent manufacturing, aerospace, integrated circuits, communication and media, life science and medical treatment, and new materials. This aims to promote the exchange, interconnection, and commercialization of technologies and knowledge, and continuously improve and extend the global technological value chain.
3.Global cooperation in production capacity
CNIC focuses on integrating global resources and optimizing the combination of various factors to help promote the production technology and organizational experience of global enterprises in the fields of iron and steel, nonferrous metals, building materials, railway, electricity and more. We hope to build a mutually beneficial and win-win industrial chain and supply chain system, and contribute towards win-win cooperation and coordinated economic development all over the world.
4.Infrastructure development
CNIC keeps close watch on the industry trends and investment opportunities in the fields of electricity, telecommunications, port, airport, road, and bridge, etc. Through this, CNIC aims to help build a modern infrastructure system that is complete, practical, highly efficient, intelligent, green, safe and reliable, and ultimately promote the socio-economic development of different countries and improve the residents' living conditions.
With an annal production of 400,000 tons of copper concentrate, the Project is deemed as a best practice for mining industry M&A, with a product cash cost ranking in the lowest quartile globally.
The project for methionine production technology and processes of French company Adisseo, which has been promoted by CNIC, has established its presence in Nanjing, with the lowest unit cost of liquid methionine worldwide.
CNIC has invested in the project of constructing the natural gas pipelines in Central Asia, which extends up to 1,833 km overseas, with an annual gas transmission capacity of 55 billion cubic meters during the peak period. The project can provide China with clean natural gas energy for at least 30 years.
CNIC supports the building of the third telecom operator project in the Philippines. This project can inject new vitality into the telecommunications market in the Philippines, helping to promote competition in the telecommunications industry, improve the industry’s service standards, and enhance the well-being of the local people. It is expected to promote the long-term development of the telecommunications industry in the country.
CNIC has set up a risk management system covering risk identification, analysis, assessment and countermeasures, and relevant supervision and rectification activities. Risk management and control have a comprehensive coverage of all investment operations.
The risk management committee under the board of directors oversees the development of the risk management system at the company; assesses and reviews the procedures, quality and outcomes of risk management system operations on a regular basis; reviews the company’s risk management strategies, measures and key risk contingency plans.
CNIC is fully aware of the importance of efficient and effective internal control system operations, and conducts regular inspections on related operations to ensure compliance of business and management operations.
The investment committee under the board of directors is responsible for deliberating the company’s investment strategies, plans and objectives, proposing tactics and policies to ensure the fulfilment of investment objectives, assessing the performance of investment portfolios, and putting forward suggestions for performance improvement.
The project decision-making workflow at the company involves project filing, evaluation and approval. The project team compiles a project proposal based on preparatory research, and the project is filed subject to the approval of the company at the project filing meeting.
The project team conducts due diligence in collaboration with middle/front-office teams, completes structural design, valuation, profit forecast and risk analysis and assessment, and draws up the investment plan, which is then submitted for deliberation and approval at the project appraisal meeting.
With the authorization of the board of directors, CNIC has set up an investment decision-making committee to review and approve project investment decisions.
