IBI Participates in the Establishment of the “Honghu No. 1 Venture Capital Fund,” Strategically Laying Out the Industrial Internet + Digital Technology Track

IBI is a leading industrial-internet enterprise in China and was listed on the Main Board of the Shanghai Stock Exchange on July 30, 2019. Built upon industrial e-commerce and underpinned by industrial big data and industrial digitalization, IBI provides online trading of industrial products and raw materials, commercial information services, and digital technology services for related industries. The company is committed to deeply integrating the Internet, IoT, big data, cloud computing, and artificial intelligence with traditional industries, fulfilling its mission of reducing costs and improving efficiency through industrial digitalization.

IBI currently operates three business segments:

1. Industrial Information Service Platform — IBI Resource Network;

2. Industrial E-commerce Platforms — Toodudu, Wdoodoo, Boododo, Zdoodoo, Feidoodoo, Lydodo;

3. Digital Technology Service Platform — IBI SaaS services.

Against the backdrop of sustained rapid growth in the industrial-internet and industrial-digitalization tracks, the company has been vigorously advancing its Platform–Technology–Data strategy, deepening its presence across industrial and supply chains and achieving continuous rapid growth in recent years.

To further seize major opportunities in the development of the industrial internet, proactively deploy advantages in key tracks, and effectively incubate and empower outstanding enterprises and projects in support of IBI’s long-term, high-quality growth, the company has proposed the establishment of an industrial-internet investment fund. By leveraging a fund vehicle to achieve industry–finance integration, the fund will strategically incubate and invest in future-oriented tracks such as the industrial internet and digital technology. This will help advance IBI’s Platform–Technology–Data strategy while, as a sector leader, enabling numerous high-quality companies across the industry to accelerate development and achieve collaborative win–win outcomes—jointly contributing to internet-enabled innovation, cost-reduction and efficiency gains, and long-term sustainable development across China’s industrial sectors.

Drawing on IBI’s industrial background and accumulated business capabilities, the company places strong emphasis on cooperating with top professionals in the capital markets. After extensive communication, Mr. Xu Hai—a seasoned capital-markets professional with over 20 years of investment banking and private-equity experience—together with several other veteran practitioners, joined IBI as a key partner to jointly establish and manage the Honghu No. 1 Venture Capital Fund. Mr. Xu previously served as Executive Director at Goldman Sachs Gao Hua and Managing Director at ICBC International. He was among the first A-share sponsoring representatives in China, the first sponsoring representative introduced by Goldman Sachs to China, and a core member in the creation of its joint-venture securities firm. Holding professional qualifications in both the U.S. and Hong Kong capital markets, he has led financing and listing projects for major enterprises including Mindray, Bank of Ningbo, Ping An Insurance, Bank of Communications, and Agricultural Bank of China. As a founding partner, he set up ICBC’s first equity-investment fund platform and completed equity and mezzanine investments of over RMB 10 billion in leading companies such as Midea Group, Focus Media, and 37 Interactive Entertainment. He has also served as a Director of Midea Group and an Economic Adviser to the Zhangjiakou Municipal Government.

In addition to IBI and its management team, investors in the Honghu No. 1 Venture Capital Fund include the well-known Shengjing Fund of Funds and multiple recognized investors from industrial and financial sectors. The fund’s primary investment directions include:

1. Industrial Internet:

   • Aligned with IBI’s strategic plan, prioritize investment empowerment for new business segments that have been fully evaluated and identified as key areas for development;

   • Within the broader upstream/downstream and adjacent fields of the industrial internet, continuously identify and select outstanding innovative enterprises, and—through sustained empowerment from IBI and its ecosystem—help them optimize business structures, scale operations, enhance corporate governance, accelerate growth and listings, and become industry benchmarks and leaders in their respective niches.

2. Digital Technology:

   • Centered on the digital economy and digital factory themes, with a focus on outstanding companies in industrial software/SaaS, intelligent manufacturing/automation, and digital twins/industrial metaverse.

Looking ahead, the Honghu No. 1 Venture Capital Fund and IBI will continue to deepen cooperation with partners across industry and finance in investment, financing, and industry–finance integration. Together, they will further consolidate the industrial ecosystem, promote the common development and sustained expansion of the industrial-internet sector, and realize a win–win outcome where 1 + 1 > 2.

About Honghu Zhiyuan Investment

Honghu Zhiyuan Investment is a private equity investment management institution jointly initiated and registered with the Asset Management Association of China (AMAC) by IBI—an A-share Main Board-listed leader in the industrial-internet sector—together with experienced professionals from well-known domestic and international financial institutions. By leveraging fund investment to achieve industry–finance integration and strategically deploying future-oriented tracks such as “Industrial Internet + Digital Technology,” Honghu Zhiyuan Investment both:

• advances IBI’s development strategy centered on Platform–Technology–Data, and

• enables numerous outstanding companies in industrial internet and digital technology to accelerate growth and achieve collaborative win–win development—jointly contributing to innovation-driven upgrades, cost-reduction and efficiency gains, and long-term sustainability across the industry.

Honghu Zhiyuan Investment and its managed funds look forward to deepening cooperation with partners in industry and finance for shared development and mutual success.
Business cooperation and investment/financing inquiries:bp@ueiibi.com