OUR BUSINESS MODEL

 

          During recent years, the exposure of mainland China’s industrial investment market to foreign investors has been steadily increasing. Starting from the early days of Sheffield Investments Limited, a boom of industry investment, represented by the planning and building of regional industry capabilities in Yangtze Delta area, has defined the unprecedented industrial growth around coastal areas of mainland China.

           As an important achievement for Sheffield Investments Llimited in expanding direct financing channels, the first directly-invested manufacturing enterprise, our first shirt factory, was launched in on December 30, 1999. At start It had only 2 million RMB in active assets,  with less than 100 employees, Sheffield Investments Limited had raised 6.08 million yuan with its initial placement. Investors include mainly private and corporate investors from Hong Kong and the United States. Since then our shirt factory has been propelled to a top-rated player within the industry, with assets worth well over 80 million RMB, and annual sales averaging over 100 million RMB.

          Analysts contend that the outstanding performance of Sheffield Investments Limited’s subsidiaries is a tangible achievement from implementing the comprehensive management reform and experimental development of R&D models, and also  is a result of the accelerated financial model reform and continuous innovation. It was a major breakthrough for the reform and innovation in the Mainland China’s industrial investment model system, thus  starting a new era in the development of foreign-invested industrial enterprises.

         Sheffield Investments Limited excels in its business class in four major areas: industrial investment scale to return ratio, industry diversification, subsidiary companies’ performance indices, and market-oriented performance. From launching to investing in its projects, Sheffield Investments Limited is providing precious operating experience for the development of local industrial capabilities.

          As investing pattern is concerned, Sheffield Investments Limited takes the mature international experience as a reference. It selects high-quality enterprises after evaluating risks. Through participating in the management of target companies, it optimizes their governance structure, improves their operational and financial situations, helps them to create value, and at last, takes benefit from selling the shares it held.

           Sheffield Investments Limited inked the latest investment agreement with Xingda Corporation Limited at the end of 2009, which marks yet another achievement for the company’s strategic acquisition plan. According to the agreement, Sheffield Investments Limited invested about 150 million RMB in exchange for the majority shareholding option.

            Sheffield Investments Limited often provides the equity or quasi-equity investment to the unlisted companies with high growth potential. Sheffield Investments Limited will generally get involved in the operations and management of the enterprises it invests into. After those developing enterprises mature, Sheffield Investments Limited may achieve capital appreciation through share transaction.