Daniel Zhu, Partner at China's first cleantech venture capital firm, Tsing Capital, joined OnGreen at their headquarters to discuss market entry strategies into China.

1. Photo by Sandy Xu @ Tsing Capital Doing Well by Doing Good©
Tsing Capital!
!
The Pioneer and Leader of Cleantech Investment in the !
World’s Largest Market!
!

2. Our Vision
Founded in 2001 on the philosophy of “Doing Well by Doing
Good©,” Tsing Capital has since become the global pioneer
and leader in environment and cleantech investment. With the
vision that sustainability would be a fundamental paradigm shift
in human activities and create the greatest economic
opportunity of our time, the firm has invested in cleaner and
better ways of producing and living. As China emerges as the
largest market, Tsing Capital is poised to seek superior returns
for its investors environmentally, socially, and financially.
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3. High GDP = 3 “Highs” in Growth, Energy Consumption & Pollution
In 2010, China’s energy consumption per unit GDP is 5 times of Japan and 3
times of US
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4. Challenge: World Factory vs. World Polluter
Export
Growth
vs.
CO2
Emissions
CO2
Emissions
(megatons)
Exports
($
billion)
7000
1400
6000
1200
5000
1000
4000
800
3000
600
2000
400
1000
200
0
0
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Source: Tsing Capital, blog.cfr.org,
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5. Opportunity: Clean Economy is Government’s Top Agenda
China has gone through 10 years of
Cleantech policy development
2010 & Beyond:
Dominant Priority
2003-2009: • 4 out of 7 strategic
National Agenda emerging sector focus
including New Energy,
• Circular Economy Energy Efficiency,
• Green GDP Sustainable
1990-2002: • Environmentally Transportation and New
Friendly and Resource Materials
Scientific Terms Efficient Society • 12th Five Year Plan
• Established working • Renewable Energy
groups Law
• Ratified UNFCCC and • Green Olympics
Kyoto • Low Carbon Economy Source: Tsing Capital & CGTI Analysis
Dec ‘10
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6. High-Growth Market Opportunity
Environment is Key Theme for China’s 12th Five Year Plan
Strategic Emerging Industries
Highlights 4 out of 7 Cleantech
Related Sectors as Focus Areas by
Central Government Next Bio- High-End New Alt Energy
EE and EP Generation IT Engineering Manufacturing New Energy Materials Vehicles*
Energy efficiency and environment protection is the #1 priority Source: Tsing
Capital & CGTI
All seven emerging industries will contribute at least 8% of GDP by 2015 Analysis Dec ‘10
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7. Aggressive Mandatory Targets for 12th FYP
10 Targets set for China’s 12th Five-Year Plan (with 4 targets continued from 11th Five-Year Plan)
Source: CGTI Analysis Mar ‘11
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8. Clean Economy and Our Focus
Demonstrated Domain Expertise Across a Diverse Spectrum of China’s Clean Economy
§ The global pioneer and leader in environment and cleantech investment, Tsing is poised to
seek superior returns for its investors environmentally, socially and financially in the following
industry sectors:
Eco - Organic
Husbandry Foods
Fertilizer & Green
Pesticides Substitutes
Cleaner
Fossil Sustainable Nano-materials
Agriculture
New
Bio-
Renewables New Materials degradables
Energy
Electrical
Tsing EV's and
Appliances
Energy Capital Transportation
Sustainable Batteries
Efficiency
Energy Public
Transmission Carbon Transportation
Reduction Systems
Environment
Protection
Energy
Generation CER
Air CCS
Water Waste
*Proprietary to Tsing Capital.
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9. Opportunity: China is the World’s Largest Clean Energy Investor
2010
China’s
Clean
Energy
Investment
Reached
$55
Billion
: Who’s Winning the Clean Energy Race 2010 – Pew Charitable Trust
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10. Opportunity: China is the Largest Cleantech Market
#1 solar PV
production (50% of #1 installed base of #1 wind-power
global PV cells in solar water heaters market (200GW
2009, 30GW (over 125 million m2) installation by 2020)
installation by 2020)
#1 auto production
#1 hydro resources and market (13
#1 water demand million new vehicles
(540GW);
in 2009)
#1 in CDM #1 fresh water
And many more
registration farming
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11. Development of Cleantech Investment in China
Tsing Positioned at the Forefront in the Development of Clean Economy Investment in China
CEF 2002 CEF 2004 CEF III CEF IV
(Fund I) (Fund II) (Fund III) (Fund IV)
Niche Mainstream Leader Dominant
Environment Sustainable Circular
Protection Development Economy Clean Economy
VC cleantech investment in China Smart Grid
(USD in Millions)
Sustainable
2400 Agriculture
2000
Sustainable
Transportation
1600
New
1200 Materials
Wind
Solar
800
Energy
Solid Waste Efficiency
Water Air
400 Treatment
Treatment
Treatment
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e
*Source: Tsing Capital.
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12. 2009: Cleantech Becomes VC/PEs’ Top Focus in China
China VC/PEs’ Investment Focuses in the Next 1-2 Years, over taking traditional investment areas!
Source: CVCA 2009 China PE Industry & Regulatory Environment Survey Report
!
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13. 2010 Q1: Cleantech Becomes VC/PEs’ Largest Investment Sector
No.
2
by
Deals
No.
3
No.
1
by
by
Exits Amount
Source: Zero2IPO, Apr ‘10
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14. 2010 1H Chinese vs. Non-Chinese Cleantech IPOs
2009 Q4 – 2010 Q2: CHINESE Cleantech Companies IPOs = $ 6.3 billion
VS
Source: Cleantech Group, Jul ‘10
2009 Q4 – 2010 Q2: NON-CHINESE Cleantech Companies IPOs = $ 2.0 billion
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15. Pioneer and Leader in China Clean Economy Investment
No.
1
brand
and
largest
cleantech
team
in
China
Since
2001
Strong
first
cleantech
domain
fund
in
China
experFse
and
one
of
the
supported
by
earliest
in
the
Tsinghua
world University
Proven
Largest
superior
track
cleantech
deal
record flow
3
US
funds
+
1
RMB
fund
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16. Tsing Capital Has Grown Significantly Over the Past 9 Years
Dominant
Player
“An evangelist in Chinese
cleantech investment”,
Leader International Financing
CEF IV
Mainstream USD 350M “A visionary leader in
CEF III Yiyun II cleantech venture
Pioneer USD 228M RMB 1500M investment across
CEF 2004 Yiyun I Silicon Valley and China
USD 30M RMB 400M
CEF 2002 with extensive
USD 13M achievements”, Asia
Venture Capital Journal
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Tsing Capital has been selected by
HBS as a case study
Benefits to TC: substantial contribution to management education,
value-add to TC development and maintain valuable relations with
HBS network
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17. Exceptional Management and Resources
Tsing Professionals and Organization Widely Recognized for Pioneering Venture
Investments in the Cleantech Space in China
n “10 Companies to Shape the World in 2020”, Sustainable Excellence (2010)
n #1 of “Top 5 Cleantech VC Ranking”, CCIS / SSG Capital (2010)
n #1 of “Top 10 Greentech VC Firm”, ChinaVenture (2010)
n 2008 “Cleantech Leader Award”, Cleantech Group (2009)
Tsing Capital
n 2008 “Best Corporate Citizenship Growth”, 21st Century News Group (2008)
n 2005 “Cleantech Pioneer Award”, Cleantech Group (2006)
n “2010 China Most Valuable Enterprises Award” No. 7, EZCapital (2010)
n “Top 20 Domestic VC Firms of the Year 2010”, Zero2IPO (2010)
n 2010 Best Clean Tech Company (China), The New Economy Magazine (2010)
n 2009 “Outstanding Corporate Citizen”, Ministry of Civil Affairs (2009)
n 2009 “Top 50 GP’s in China”, China Limited Partners Association (2009)
n “Top 50 VC Firms of the Year”, Zero2IPO (2003-2010)
n “40 China’s Most Powerful People 2009”, BusinessWeek (2010)
n “2010 China’s Best Venture Capitalist” No. 35, Forbes China (2010)
Don Ye
n “2010 Green Person of the Year”, Chinese Esquire (2010)
n Top 50 “China’s Best Venture Capitalist”, Forbes China (2009)
n “25 Promoters of Business Globalization”, Global Entrepreneur (2009)
n “25 Stars of China”, BusinessWeek/China (2009)
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18. Tsing Capital Portfolios Family
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19. Portfolio Achievements 2010
ChinaVenture
CVAwards
Most
Promising
100
Firms

EZCapital
/
Holyzone
“2010
China
Most
Valuable
Enterprises
Award”

SSG
Capital
–
China
Cleantech
Investment
Summit
“Top
5
Cleantech
Enterprise”

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20. Don Ye: Cleaning Up “the World’s Factory” (Cover Story), PE Asia
Don
Ye:
“Cleaning
Up
the
World’s
Factory”
PE
Asia
(June
2011)
“A
true
winner
cannot
shine
without
fierce
compeFFon.
In
a
one-­‐man
ba[le,
you
might
be
first
but
you’re
also
last.”

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21. Don Ye: 40 “China’s Most Powerful People 2009”, BusinessWeek
Don
Ye:
40
“China’s
Most
Powerful
People
2009”
BusinessWeek
(Dec
2009)
Mr.
Don
Ye,
the
Managing
Partner,
was
selected
China’s
Most
Powerful
People
2009
by
BusinessWeek
for
his
pioneering
efforts
in
cleantech
venture
investment
in
China.
Other
notable
people
selected
include
President
Hu
Jintao,
Vice-­‐President
Xi
Jinping,
Premier
Wen
Jiabao,
Alibaba
Founder
and
CEO
Jack
Ma,
Lenovo
Group
Chairman
Liu
Chuanzhi
and
NBA
basketball
star
Yao
Ming.
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22. Tsing Capital in Media 2010
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23. Tsing Capital’s ESG and CSR Performance
Selected as one of “Ten
Impact
by
CEF
Porjolio
Companies
by
Companies That Will
Environmental
and
Social
Categories
in
2009
Shape the World in
2020” in Aron Cramer’s
new book
11,680,668 tons = CO2-e Reduced
176,894 GWh = Clean Energy Generated
US$ 22,589,825 = Invested in Cleantech R&D
30,046 = Green Jobs Created
Sustainable Excellence: The Future of
Business in a Fast-changing World
(Rodale Books, 2010), written by
US$ 26,035,355 = Taxes Paid to Government BSR’s CEO Aron Cramer
Tsing Capital has “set a course for
Chinese private investment that will
be vital to the sustainability of
US$ 91,774 = Spent on Community Development prosperity and growth both for
China and for the world as a whole”
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24. In-House Research Capability
Research
and
Samples
Analysis
Internal
Team
Market
Investment
Dynamics
Team
Industry
Advisors
Experts
External
Research
Peers
and
Insatutes
and
Personal
Associaaons
Contacts
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25. Tsinghua University Resources
Tsinghua Holdings Tsinghua University
n Internationally recognized, prestigious and
n Exclusive asset management arm wholly influential university in China
owed by Tsinghua University n Academic leaders in science and
n Almost 100 companies under management technology, comprising most members of
n 32B RMB revenue in 2008 China Academy of Science and China
Academy of Engineering
n Leading environmental, automotive,
thermal, mechanical, chemical and civil
engineering departments in China
n 71 research institutes/centers, 166
laboratories; Over 1,000 new technologies
developed annually
n Over 60,000 alumni world wide, all over
various sectors
n Strong government backing and extensive
deal flow

Listed /
Science Tsing Incubation Industrial
Non-listed
Park
 Center Bases
Enterprises Capital
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26. Tsing Capital’s Value-add to Portfolios
Social
&
Environmental
System
&
Compliance
AddiFonal
Strengthening
Financing Corporate
Governance
Enhance
Publicity
Tsinghua
University
and
Synergy
amongst
Porjolios
Tsing
Capital R&D
and
Policy-­‐
making
Training
by
Experts
Formulate
Business
e.g.
Finance,
Tax,
BD,
Strategies
LP
Resources:
Market
Dynamics
-­‐
Project
Financing
-­‐
Strategic
Partners
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27. World Class Investor Support
Tsing Capital is supported by many of the world’s most prominent organizations
in the field of cleantech

Strategic Government
Listed
DFIs! Induction
MNCs! Funds!
Companies!
China Environment Yiyun Cleantech
Fund Series! Fund Series!
Financial Family Renowned
Strategic
Private
Institutions! Offices! Enterprises!
Investors!
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28. Tsing Capital Fund Structure
CEF CEF CEF CEF
Yiyun I
! Yiyun !
II
2002 2004 III IV
USD
! RMB
!
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29. For Further Information
Tsing Capital
A 2302, SP Tower
Tsinghua Science Park
Beijing 100084
China
Tel: 8610-8215 1160
Fax: 8610-8215 1150
www.tsingcapital.com
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