April 2022
SEAVI Advent Private Equity today announced that its sixth fund, SEAVI Advent Equity VI has completed a partial divestment of its stake in Yuanhang Precision Alloy (NEEQ: 833914) (the “Company”) with the aim of 1) complying with the new Beijing Stock Exchange listing rules, and 2) enhancing the Company’s value by bringing in additional strategic shareholders.
Established in 1994, the Company engages in the research and development, production, and sale of precision nickel-based conductor materials. The Company is the largest nickel strip producer in the People’s Republic of China (“China”) and its product is known for its quality, performance and value. A major focus of the Company is in research and development. This has resulted in a total of 63 authorized patents, including nine (9) authorized invention patents, which has benefited the Company’s product mix.
The Company’s other product, precision nickel-based conductors, is mainly used to transmit power for batteries or battery packs and are often seen in secondary battery products such as lithium-ion batteries, lithium polymer batteries and nickel-metal hydride battery. It is also used as a base metal for the manufacture of various commemorative coins. Terminal applications for the Company’s precision nickel-based conductors mainly include high-end consumer electronic products like smartphones and tablet computers as well as EV battery energy storage systems etc.
SEAVI Advent has been following China’s high-end manufacturing industry closely with a focus on developments within the new energy and new materials sector. In 2017, SEAVI Advent invested in the Company and has since not only witnessed the Company’s growth into an industry leader in nickel strips but also a leader in nickel alloy production.
SEAVI Advent remains the second largest shareholder in the Company despite the partial strategic divestment. SEAVI Advent firmly believes that with the Chinese government supporting the new energy sector, the Company stands in good stead.
Despite the continued challenging macro-economic as well as geopolitical environment, SEAVI Advent continues to provide its investors with medium term liquidity as well as superior investment returns. SEAVI Advent will continue to work closely with its portfolio companies to add value to their businesses in order to deliver medium to long term shareholder value.
About SEAVI Advent Private Equity
SEAVI Advent Private Equity, the independent Asian affiliate of Boston based private equity firm Advent International Corporation, is one of the first private equity and venture capital firms to operate in the Asia Pacific region. Since 1984, the firm has invested over US$600 million in more than 120 Asian companies, from growth to late stage, as well as buyout and control transactions. With a proven track record that includes ranking fourth on Preqin’s Top 10 performance funds for the vintage 2003/04, SEAVI Advent has been instrumental in delivering value to many of its portfolio companies, and has developed an extensive record of successful investments, which include Universal Health International Group (2211.HK), Hainan Shuangcheng Pharmaceutical Co. Ltd (002693.SZ) in the healthcare sector; Weimob Inc. (2013.HK), and Sinofriends in the TMT sector; Tsaker Chemical (1986.HK), and Pengyao Group (300664.SZ) in the new energy & advanced manufacturing sector.
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