you, everyone!

Moderator: Good morning my friends, very happy to come to our live chat VC life, today we have been fortunate to be guests of NATIXIS Asia founder and senior partner of Mr. Wang Gang, Wang welcomed VC visit our total life.

Gang: Good morning my friends!

Moderator: NATIXIS and we will NATIXIS Asia (referred to as NPEA) to all users of the situation to do something to communicate, primarily to introduce some of its investment strategy, investment in the areas of concern to a number of issues and so on. We will also revolve around the rich experience of Wang to us to share some of my friends do, to welcome you all to question their friends.

followed the start of our chat, we first look at NATIXIS and NPEA, so we would like to ask Wang NATIXIS you give us some of the situations in France, it the LP, it concerns the field of investment, including investment of some large international companies?

Gang: NATIXIS actually is a currently ranked second in France, a financial consortium, one of the largest financial group, which mainly includes the business aspects of a traditional commercial banking business One is asset management, there is insurance, there are some companies in the traditional sense of a number of financial management and business.

NATIXIS in June last year, with another French bank mergers, it is France's second largest financial group, while the ninth largest financial groups in Europe, according to the scale of asset management is now in France is the largest Just now we are talking about is the second largest of the banks total assets, is such a great background, we have a relationship with us the whole of this part, that is, direct investment in this part of our global management of more than 30 million euros investment in such a fund a large-scale, distributed in many countries, mainly in Europe, several countries, France is probably more than half of our assets, inside half of the more than 30 million in France, in France will be done through the 7-8 sub-fund to manage this approved more than 10 billion euros of assets. Outside France, Italy, Spain, Germany, has its own funds, in South America, Brazil has its own fund, we have our own in the North American investment banks, this is basically in Europe and the Americas that is the case, this is Asia mainly in Taiwan and the mainland have their own investment business.

Moderator: Actually, after listening to your presentation, it should be the LP is his own bank?

Wang: Yes, NATIXIS main mode of operation is 100% in Asia, this part of the money we use is from the banking group NATIXIS balance sheet is that the assets of our banks, of course, behind him have their own customers, our bank to manage these assets.

Moderator: It has nine funds in Europe, then with China, a relationship is, how are the funds to do it, and then brand it, and then you manage?

Gang: In Europe, they have different modes of cooperation, of course, are NATIXIS as a major brand, some of cooperation, that is, including the 51 percent accounted for NATIXIS, or account for other LP 49 percent, China with our partners is the first LP of all their resources, including the source of all his money is their second, we use their brand, third, we are actually with other independent funds is not the same as , an independent fund may be 10, 20, 50 or LP, we have an LP, with its essentially different from us is to compare a single source of funding, we are only a relatively LP.

Moderator: NATIXIS Asia now is probably the number of funds managed by the scale?

Gang: Asia is probably about 2 billion U.S. dollars.

Moderator: We also know that you have invested in seven cases, four have successfully quit.

Gang: five, partly out of.

Moderator: Now how to fund the case? Investment for the end of it fast?

Gang: We actually, as a so-called one LP fund, which translated into a mean China is the Evergreen fund, which with the Fund in the traditional sense is not the same, is the traditional sense of the Fund is a number of years, such as seven years or so for the end of your funds, the seventh year of the fund are generally the end of this cycle and do a clearing. For us in terms of the fund you a formal vote of two million, you have to count every year how much I have voted, I left many of them can be cast, this is such a balance of traditional fund, but we fund is a long-term funds, this was not the algorithms, and we voted to make money every time the money was also put to vote. We are now cast in the Asian region about 150 million U.S. dollars, including Taiwan and the Mainland, we have been back several times the equivalent of money.

Moderator: We know your concern, there are Suntech, LDK Solar, LDK Solar in particular may be a stealth title, we know that it has just been listed in the United States, we invite the general brief was to choose It's time to judge how you are?

Gang: you have just done a very good analogy of this is a stealth title, and even a dark horse. Although LDK It is not very high profile, but it will be inside the field of China's leading solar energy company, the company specifically to do with the solar silicon, which is in the upper reaches of Suntech in an industry chain of a company It is set up in 2005, the mid-2006, was formally put into operation, and then the end of 2006 fully comprehensive earnings, the company we contact them early in 2006, when the setting up of six months or so, when they also the preparatory phase, some of the market has not yet formally put into production, some manufacturers build equipment part has not been fully completed, and in some low-volume market, but also not completely scale. We voted in July 2006 the sum of money to go first, then the profits they have not, some sales, but profitability has not.

Moderator: Under the circumstances you determine how such enterprises, a lot of venture capital may not see you, good financial performance, and it does not scale, is not a good look at the whole revenue, in which case may have to postpone its investment, not even voted in, then you see the main indicators of which companies do you think this is worth a vote?

Gang: I think this is an experience of the venture capital business sense to play the role of a real place, because a good performance, the performance had finished three years, the annual results are very beautiful, and basically all of the fund management companies are able to see this is a good company, we are willing to give him money, and this is a very simple thing to determine, depends on several factors, the first is that we on the solar industry are very familiar with this understanding, Suntech we voted in 2005, and in fact our understanding of the solar energy industry in 2004 from the beginning of 2005 we are investing in Suntech, the beginning of 2005 we also invest in another the company is called E-science and technology, is a solar energy company in Taiwan. Therefore, we have accumulated many years experience in all aspects of the situation in the industry, some of the situations in the future, but we understand the very important point, we have invested in LDK because it is the upstream industry chain, and this more to the upper reaches of its supply demand is highlighted with a demand that is far greater than supply, so the more there is a bottleneck in the more bottom-up, so do LDK silicon at the time was far short of demand, as long as you have enough products and qualified products, the market is very huge.

Moderator: They are you optimistic about the market, and is quite a lot of their own resources in this area and experience, the courage to vote in this?

Wang: Yes, there was a very early stage investors have also read a lot of companies have been tracking for a long time, the vast majority of investors are very hesitant, and a real leader for the project they were also not can be obtained under this determination is the only one we were leading investors.

Moderator: At that time, several at the same time into?

Gang: The first round we are only a body, is in July, the second round in September.

Moderator: soon, the first and second rounds between?

Gang: very close to the second round there are about 7 or so.

Moderator: so fast the first round and second round of investment in venture capital which is rare at the time, when considering how the?

Gang: We were with the company's production capacity expansion, the development of the company, there is a lot of recognition, that we very much agree with both the speed of this industry is essential, from the company's founding people, management is concerned, he hoped that the company be able to do a short period of relatively large production capacity, there is a very huge anti-production plan, the plan needs more money, but also a more timely manner to support the funds, so when the first round so we have arranged a second round of the scheme, and the second round of the timetable have been designed, and this premise is the company's production capacity reaches a certain size of our investment in the second round, making its capacity to a higher level.

Moderator: to participate in the second round of venture capital investment in these companies is not convenient to disclose the names of parties?

Gang: This can easily be found in the publicly listed above, including Mitsubishi, including CDH, including China's environmental protection fund, which some of the key a few.

Moderator: They were a team what circumstances? LDK?

Gang: LDK's team in July in this period of time with them in September or in step-by-step process of the formation of this team, not a fully formed good.

Moderator: this process you have to help them play a role in a number of executive search firm?

Gang: We help them identify for example, Chief Financial Officer, Chief Financial Officer of China called, after the CFO of the figures below, we also introduced a number of resources to them.

Moderator: We know that he has just the past month this year is June 1 of the New York Stock Exchange listing, has created China's largest Chinese enterprises in the New York Stock Exchange in the United States, abroad, overseas, one of the largest financing cases, melting of the 469 million U.S. dollars, very quickly this time, only one year, from mass production to the market, the situation was so fast you develop with your support behind the capital, expansion, I think this or a very fast time.

Wang: Yes, very quickly this time, I think that depends largely on the company a very careful plan, a plan, in particular, Xiao-Feng Peng, founder of the company and his management team, the industry as a whole accurate grasp of the operation he was very good ability to supply the entire market for its production of these organizations, as Peng is a very far-sighted people, in fact, we are investing in a number of years before he began to study the industry, so 06 production capacity in the industry as a whole the planning, the future trend of the market he has a very accurate grasp of the foreseeable. At that time, we meet with him mainly in the level of funding to allow them adequate support, IPO is actually a natural thing, is done after three rounds of investment in this capacity as large as a high level, it is bound to go to the U.S. capital markets Prospectus, has done a very good, I feel that the main efforts of the company.

Moderator: Peng and his deep understanding of the industry, including operators, this kind of management experience, we do feel like LDK Solar solar silicon inside, we do not know how the United States such a view of China a very high-tech companies listed abroad, the Chinese high-tech enterprises listed in the United States to see how they are?

Gang: I think that solar energy industry both in the silicon manufacturers or electronics manufacturing, which industry focus gradually shifted to China, but also very fast, very fast in this transfer, from the beginning of 2004, 2004 Basically, do the Chinese solar industry is very small, very small size of the industry, and now look at what the industry is already a very large scale, and more than a dozen, a few 20 and even a few ten-fold growth, I think China's solar energy industry There are enormous opportunities, mainly in the middle and lower reaches, in the end I am referring to silicon, the electronic chip, downstream refers to the formation of battery manufacturers in China, solar energy manufacturers in the U.S. market with seven overseas listing, the number eight.

Moderator: That is to say that the whole industrial chain to form the edge, or after the effectiveness of the entire cluster on the capital market out of our markets, there are a good judge and look at?

Wang: Yes, why? Because I think China is not only a number of enterprises, because Suntech has just begun and so on, and now it gradually formed a chain, this is the one thing is quite different, for example, the industry is divided into four aspects of chain, each link inside there are a number of heavyweight companies, such as silicon wafers, LDK, this aspect of your battery, there are Suntech, there are a number of other enterprises, the formation of this business, so from China in terms of its layout in the industry chain gradually perfect, and each chain inside the company have a heavyweight inside.
Moderator: and this model is the development of other industries of China have a lot of enlightening?

Gang: I think the manufacturing sector, there are certain scientific and technological content of manufacturing in China are likely to cluster similar effects, including the former electronics industry in China, such as computer, computers, television, TV and so on, this is a very traditional industry, in China there is a very complete industry chain, I think this is a solar cell is relatively high barriers to entry and high-tech industrial components relatively high formation in China is a very interesting things.

Moderator: very good company, and we congratulate Mr. Peng Xiaofeng created to lead the company for overseas listing of Chinese enterprises in the excellent record. Then we will talk about some of NATIXIS other aspects of investment strategy, and I know you mainly focus on investment in traditional industries, in addition to solar energy you have a lot of experience in the energy piece, you said that garbage power generation side comparison of wind power, but also there are some other areas of traditional concern about what?

Gang: We are concerned about the fact, in fact, our investment there is no limit, from the design of the scope of this industry, we are only a very small number of industries do not involve a small number of the several industries including medical drugs, and then we are dealing with very little real estate, in addition we are involved in almost every traditional industries like we are, but our favorite inside the industry's traditional industries have some of the barriers to entry, barriers to entry of the manufacturing sector There is a certain manufacturing techniques such traditional industries, we still see some relationships with the very large consumer goods, there are brands of fast-moving consumer goods, or some of the chain of these industries, a chain selling consumer goods industries. Also included a number of industrial companies, he has done a number of industrial products, technology-based companies. Therefore, we are concerned about not only new energy, new energy in recent years we have been doing a good job because the new energy in the very fast development in recent years, we also continue to invest this much time and effort looking at, including wind energy, You just talked about other waste-to-energy or bio energy, etc., we have a number of related, but we do not just limited to the field of environmental protection.

Moderator: is not limited to investment in some industries, unlike some of the funds voted on TMT?

Wang: Yes, we do not have this restriction.

Moderator: I do not know if you look at the market in addition to the overall size is large enough to support a business listing, or addition to rapid growth, you also concerned about their team for example, micro-, for example, technology this, if you so choose, you may choose to see it more哪块?

Gang: only choose one?

Moderator: choose only one, it单选题, team, technology, market size is not said, this market is high growth, including its overall financial situation, profit is not profit.

Gang: I think this team is certainly a choice, because even the best technology is not a good team or of no commercial value.

Moderator: Fine if that team, you will see what areas they target?

Gang: There are so many, and the extent of his professional, he is a very strong executive ability, he is not there is sufficient communication skills, transparency, understanding of the industry itself is not very deep, there are not enough forward-looking in the industry.

Moderator: Well, we have the following main NATIXIS around a number of issues, including the NPEA something to do with a number of friends that we have the following on his personal Wang rich experience to do something for everyone to share, At that time, then we know that you study in Anhui Province after graduation went to New Zealand, then why is it such a choice, we are at that time to the United States, to Europe?

Gang: will not be able to, ah, the environment at that time decided that it is not a visa.

Moderator: there is your school of Business Administration?

Wang: Yes, read the MBA, after graduating from go after a big second-largest local telecommunications company, British Telecom in New Zealand is a telecommunications operator.

Moderator: What do the main work here?

Gang: the main job of operating levels, on their financial investment in some external, some internal finance, with the analysis of the underlying programs.

Moderator: is a graduate and the number on the deal.

Gang: That's right.

Moderator: after you do not return to Guangzhou, the state hearing?

Wang: Yes, in yet another New Zealand company, Fuji Xerox is also the duty to do the financial sector, and then to a state hearing in Guangzhou, and CFO.

Moderator: We say that venture capital is an angel, but sometimes in our industry called it the devil, it is not in your development when it would exercise its right of capital to you from the Board of Directors with founder, or you do not meet the other the development of enterprises, there will be an adjustment, or you sell out, I do not know that you look at how the thing is?

Gang: IDG is not a driving force behind because it was great respect for IDG was the founder of the management and shareholders will, because this project is to do the project Wang, Wang is now to CDH go. I was the representative of management, companies have two options at that time, the first option is to sell technology to AsiaInfo, the second option is to accept a sum of 10 million U.S. dollars of financing, the company bigger.

Moderator: Why did not elect to receive financing, a lot of entrepreneurs in this case, after I took the further development of finance, listed.

Gang: I think there are many reasons, one reason for this is that at that time to accept the proposed science and technology AsiaInfo acquisition is very favorable terms, in fact 47 million U.S. dollars should be able to offer high - Guangzhou hearing at that time to the state capital markets, and even the price of IPO, so this is a very attractive price. The second, he paid a high value is the proportion of cash, more than two-thirds, so this is the second reason. The third reason, at the time of 01,02 in the Nasdaq bubble burst in the Internet-related stocks after, IPO is not particularly clear at the time, especially for high-tech company, in 2002, the outlook for 2003 is still very unclear Therefore, it can continue to move forward, we will have to wait for the resumption of the asset market after the IPO will be a good opportunity to appear at that time that the sale of a number of reasons based on this technology to the AsiaInfo is a good choice, but the two Basically, a company co-operation followed by a strong cooperation in the joint.

Moderator: At that time, mainly Zobon AsiaInfo inquiry in the field of mobile communications software application development, as well as the resources of some of our customers?

Gang: That's right.

Moderator: We know that this time the case has become a fact, IDG is also a lot of surplus, and he received more than 10 million U.S. dollars of income, of course, in addition to earning three times the cost, the end of 1000 million?

Gang: it is estimated that.

Moderator: We have to balance this account.

Gang: I remember that he is about 30 million yuan into, out of the million probably.

Moderator: 10,000,000 U.S. dollars.

Gang: I remember it was around 90 million yuan.

Moderator: At that time, the price is more than 10 million U.S. dollars. In fact, you do to help the state information technology has been two years after the company sold to others, selling where you do after work?

Gang: I put it after the sale, of course, the decision to sell is not what I can do a CFO is a collective decision of the Board of Directors, after the completion of this transaction, I went to the company now.

Moderator: how to consider at the time? At that time, should be in 2002, venture capital in 2002 the Internet bubble burst, we have the first half of 2002 should be a little bit of recovery, the entire venture capital can be said to be China's Internet bubble to the bite, or a little of the impact of trauma, you Why in this context can be thought of or decided to introduce NATIXIS to China?

Gang: The more a more low excellent opportunity to invest, the more the climax, but the risk to investors because the industry at a low ebb when you can buy very cheap investment company, so at that time was in 2002 when a low ebb, and venture capital companies to do better than some long, basically never been so many investors in this market, so relatively few players. The second, NATIXIS was more appropriate to China to find a team to explore business in China, they were also read at home a lot of projects, but did not succeed. In fact, we have known for a long time, and there is contact with the beginning of 2001, there are exchanges, they also want to invest in Guangzhou, the state inquiry, because they sell the item after AsiaInfo not made, but they have a strong will to carry out at home this, we cooperate with him, the whole of China in May 2002 from the beginning of the establishment of the China business.

Moderator: NATIXIS in this process in addition to such a fancy you have a strong background in such a professional, financial, investment in all aspects of the candidates for very comprehensive, he also see your team which, or at the time you set up when the team asked who joined together to do this work?

Gang: We have a very capable team, because in 2002 a low ebb, VC and PE-time low, so we just started is relatively lean, most of whom are my colleagues and Hong Kong, and gradually we have taken strategy from 2002 to, in fact, our strategy has also not changed is that we do is the very essence, the first very fine, I do not want to do a lot of one-year project, I do a single relatively small number of projects, but We do the quality requirements of the project is the best. So why five years in 2002 to the present time we only had seven items, but its success rate is very high, so we are not in favor of a very large team, but that the project selected. Now we have eight teams, including four people in Shanghai, Hong Kong has three people, we have two people in Taiwan, we will also continue to expand.

Moderator: Do you think now is the management of our funds, including investment in the team, do you think a lot of foreign venture capital come in, and competing aspects of how do you think?

Gang: I think competition is very fierce, the recent one or two years in this market there are a lot of investors in the competition, there are three categories, one is the traditional long-term investment in the PE, as we do in China for many years this level. The second level is the original early to do some investment, VC, early stage venture capital funds are now also beginning to switch to a number of long-term business, we are devoted to make long-term, but they do have some early, but now they started to invest into long-term business. The third category is new to some, that is, the last year from the United States, Europe from a number of new funds, in the domestic set up a new team of investment, including in China, has established the new home of many new funds, so the competition is relatively is more intense, but I think that really understanding this market is not a lot of people, so that gradually we will be, why now a lot of money piled on the long-term business, because long-term business in China is very high returns basically there are several times in return.

Moderator: This is our concern about the long-term business NPEA one of the reasons?

Gang: The most important reason is its very high rate of return, which is why so much passion to chase the causes of long-term enterprise.

Moderator: What do you think of China's early stage there is any good, we asked a lot of guests before, that is now very hot venture capital, capital is very large, or can not find a large number of investment projects, how do you view this situation? Early or not China is a lack of funds?

Gang: The early lack of funds is not a matter of fact, there are挺多early VC, all the money now he is chasing a hot return, you are an early investment in enterprises may have to wait three years, and even five years, while a long-term business investment may only take two years time there will be a very high return, and the early returns relative to the investment returns of enterprises can also say that in almost a level, you invest in a Early returns of enterprises may be five times, ten times, and now long-term business may have voted three times to five times, so you will vote in long-term enterprise to see more clearly, a shorter period, the rate of return is very good, a lot of people pursuit of such projects, but I think this situation will not long be maintained.

Moderator: because the whole development of the Chinese economy, or China, the level of the whole project, or more good opportunity, more long-term business opportunities, resulting in the opportunity cost of venture capital from the point of view, and will not see more of the project early, may lead to a resurgence of such opportunities do not have to look at my early days, and slowly done.

Wang: Yes, slowly return to the level of a more rational, such as long-term returns do not have much business, too much money, he will naturally return to a rational process.

Moderator: NPEA you are investing in the business to judge, or to see, or depending on your point of view to see the whole of China's enterprises to invest in long-term rate of return of approximately how much?

Gang: You said that the current return of the industry?

Moderator: That's right.

Gang: I think you are multiplying.

Moderator: three times to five times the average, then?

Gang: three to five times is good, many companies have made long-term business can be achieved, I think the average rate of return are generally two to five times to check a recent two years with the United States Hong Kong IPO market can be found about two to five times, a good can be done three times, four times, have almost a double.

Moderator: chatting chatting we talked about the following topic will be, that is, a number of traditional industries and investment. We know from last year, or even the beginning of 2005, investment in traditional industries gradually for many VC, including the Chinese and the financial consultants, investment firms have chosen a whole, as many flocked to a large number of VC that we no longer look at the case of the TMT industry, or TMT industry to see fewer and fewer cases have gone to traditional industries, such a large number of VC to go into traditional industries and traditional industries do you think this is what kind of opportunity? Or how you look at this competition?

Gang: pros and cons, I feel that too much hot money era, a good growth-oriented enterprises have many options for growth-oriented enterprises is a good thing, because they have full access to choice funds, and then he can further the development of a three-year five years ago to spend money on them is far from being so easy, much easier now.

disadvantage is the price is rising because a large amount of capital projects in order to fight high prices, this is bound to push down the rate of return, and even some not particularly good also sell a good price, you may two years after three years the return will be reflected in the return is not too good, some not particularly experienced fund of funds, of course, some items are not particularly good for a great project, may be to plant some fall, make mistakes .

Moderator: This is the one of the industry just like a cycle, such a situation is normal, in the VC which will depend on which perspective is more investment, or is a very good team business sense.

Gang: That's right.

Moderator: Do you think traditional industries such investment opportunities, you will now see the items? Now look at the case at hand?

Gang: I just also mentioned that the industrial manufacturing industry, for example, to do some quite high-tech manufacturing, product may be sold to China a number of clients or customers abroad, and then consumer goods, refers to the brand of consumer goods, or with the chain model, which is one, there is one with clean energy, environmental protection, energy-related does not necessarily make it solar, that is, outside the solar energy, including wind you just say energy, environmental protection or energy other than these, we are also looking at a large. We also look at the other number, not much, but look at what some of the areas of TMT.

Moderator: We are China's venture capital industry in 2004, when there is a sudden expansion of the entire industry, and now a lot of foreign venture capital firms have entered China, what do you think that the Chinese the entire venture capital industry development and venture capital industry is a kind of evaluation of how? Foreign capital, including its largest venture capital firms to enter China, the Chinese venture capital industry or role.

Gang: I think that is a good promotion of it, first of all, it can bring a lot of advanced foreign concept, and the large venture capital into China, generally speaking it does not work very norms is to look at the project, some players may be pushed to very high prices, this is another matter, and secondly, it can train a large number, after a few years a large number of successful local venture capitalists in China, because China is very the lack of a good investor, because the Chinese for more than five years if it is done to do PE or venture capital, and it is very rare, and are generally a few years, less than five years experience.

Moderator: We talk to NATIXIS is also the case in France, we do not know the risk of investment in Europe, we feel like the whole KP, like Sequoia are from the United States, we generally feel that it is less positive than the United States, then quickly into China, how do you see?

Wang: Yes, the real number of active fund in Europe in terms of far is relatively low. Europe in terms of capital itself is biased in favor of long-term investment approach, and the European fund has entered a new market is very careful with their choice of a cautious approach is related, as one of the few NATIXIS very early into the China, but also because they have a Chinese team is well aware of the local market, many of China's team may also want to fund Europe into China, but China may be their depth of understanding is not so.

Moderator: This may also give us, just like you do out of a group of people to the United States, we have a lot of returnees come back to go abroad to study, I am talking about you in this age group represented by the young camp, go back, probably with the United States more information about this communication?

Gang: A relationship between the United States because many of the mainstream VC through which the United States, returnees, there is a bridge, they understand very clearly the situation in China, but this may not be so strong in Europe, understanding of China.

Moderator: Now we talked a problem, how do you kind of look at China's capital market? We also know that China's capital market is very hot, very large funds, leading to our entire stock market is also very popular, the word can only be described as popular, how can you look at the capital market in China now? Another is the "Limited Partnership Act," enactment of this law, its Chinese venture capital firms how to grow you are a judge and is expected to?