Case Studies

A group of European investment bankers requested China Strategies’ assistance in setting up a China Clean Tech Private Equity Fund. Among other things, China Strategies’ vetted the offering memorandum, conducted due diligence analysis of potential private equity investments, researched and analyzed the state of publicly issued clean-tech stocks on the Hong Kong, Shenzhen and Shanghai stock markets and developed an investor newsletter.

A clean-tech portfolio manager sought the assistance of China Strategies to assess an investment in a green-field wind turbine blade manufacturer in China. China Strategies‘ provided the portfolio manager with an overall assessment of the Chinese wind power industry, including such matters as current and projected rates of growth, Chinese government policies incentivizing wind power development, the competitive landscape for wind power equipment manufacturers and regional variations. China Strategies then analyzed the particular investment, by among other things, looking at the existing and potential competition relative to the projected size of the market, identifying key areas of concern, drafting a Chinese language questionnaire and assisting in the bi-lingual due diligence examination of the company’s management.

A listed company requested China Strategies' assistance to explore an acquisition of a Chinese manufacturer. In coordination with the client, China Strategies assembled a preliminary due diligence request and facilitated the client's receipt of financial statements, the company's business plan (including operating and sales plans), market analysis, competitor analysis, equipment specifications and plant layout, location and logistics information and legal structure, permits and licensing documentation. China Strategies translated into English documentation which was in Chinese, including financial statements of the Chinese manufacturer prepared by the China offices of one of the big four accounting firms. Based on its preliminary analysis of the acquisition, the client requested that China Strategies plan a visit to the company for on-site due diligence. China Strategies planned the visit to the Chinese company, accompanied the client's delegation and assisted in the on-site due diligence. Subsequent to the client's visit to China, China Strategies provided the client with on-going assistance, including supplying the client with an analysis of a key market segment in China prepared by China Strategies from original Chinese language sources.

A large processor and distributor of a significant consumer non-durable product sought the assistance of China Strategies to analysis manufacturing capabilities for that product among Chinese producers. China Strategies provided the client with profiles of the significant Chinese producers and based on that analysis qualified a list of producers based on the client's specifications through phone interviews with the manufacturers. China Strategies then planned and implemented a series of visits to seven manufacturers in as many cities in China. China Strategies assisted in the negotiations with the Chinese manufacturers at each stop, by among other things, providing Chinese to English and English to Chinese translations. Subsequent to the client's visit to China, China Strategies provided the client with a trip report summarizing the visits and providing recommendations.