Finding Extraordinary Opportunity in China’s Telecommunications Media and Technology Industries.

China Capital Group

Finding Extraordinary Opportunity in China’s Telecommunications Media and Technology Industries.

China’s BesTV reports Half-Year Profits Up 54%

Shanghai, July 28, 2012. China Daily: China’s first listed broadcasting new media content provider BesTV announcedin July that its profits in the first half of the year reached 256 million yuan ($40.5 million), up 54 percent year on year.

CCG attends the 13th Annual China Venture Capital & Private Equity Forum

Shenzen, June 11, 2011. China Venture Capital Research Institute: CCG Chairman Ying Wu represented China Capital Group at the 13th Annual China Venture Capital and Private Equity Forum and appeared as a panelist and industry expert with both executive management and investing experience.

CCG Chairman Ying Wu awarded the Edward F. Weston Medal by NJIT

Newark, Novermber 11, 2011. New Jersey Institute of Technology: CCG Chairman Ying Wu is awarded the Edward F. Weston Medal for Professional Achievement from his Alma Mater, the New Jersey Institute of Technology (NJIT).

CCG Chairman Ying Wu Speaks at World Economic Forum

Dalian, September 10-12, 2009. World Economic Forum: CCG Chairman Ying Wu spoke at the World Economic Forum on recalibrating global demand, sustaining China’s next stage of development, and encouraging innovation. 

At China Capital Group our partners are industry experts from China’s TMT sector. We are active owners of the companies we fund. We employ our extensive resource network to nurture and develop the management teams, facilitate access to key decision makers in major accounts, and support strategic partnerships vital to growth.

— Ying Wu, Lead Partner

About China Capital Group
We manage venture capital investments in young, technologically astute companies focused on fast growing Chinese markets in the TMT sector. We are headquartered in Beijing with a regional office in Shanghai.

Our background in the industry provides us with strong analytical judgment when evaluating deals. Our network and reputation in the sector provides us with superior deal sourcing flow. Our many years of experience operating telecommunications and related businesses allow us to improve and assist in the successes of our portfolio companies. We follow the highest standards of ethics, accounting transparency, and corporate governance in our own practices and expect our portfolio companies to do the same.

Our partners have been managing venture private equity since 2007. We formed CCG in 2009.

We are positioned to continue and expand our practice, and we offer investors a singular approach to participate in the monumental shift of China’s economy towards technology and communications driven productivity, recreation, and innovation.

Venture equity investing in China grew dramatically this last decade, and China’s young entrepreneurs are creating enormous value. I am reminded of the fertile ’90s, when I was starting a series of businesses in the U.S. Now China Capital Group is bringing together capital, great ideas, energetic people, hot markets, and seasoned board oversight in this great era of innovation in China.

— Ying Wu, Lead Partner

Team
CCG partners are telecommunications industry experts who have turned their focus towards funding and nurturing the most promising emerging telecommunications, media and technology companies in China.

Ying Wu, Lead Partner

吴 鹰, 首席合伙人

Ying is Lead Partner within CCG. He brings over 27 years of experience in technology innovation and start-up enterprises. 

As co-founder of UTStarcom in 1995 and Chairman and CEO of UTStarcom China, Ying introduced PAS cellular to China, an inexpensive alternative to GSM mobile phones that grew to 100 million subscribers. Under Ying’s leadership, UTS’s China business grew to USD 2 billion. Ying has been active in venture investing for 15 years, first in UTS’s M&A committee and then in PE firms CTC and CCG since 2007 and 2009 respectively.

Simon Le, General Partner

乐 振武, 普通合伙人

Simon’s 24 year career spans roles in technology, sales, marketing, and investing in China. Simon has been with CCG since its formation in 2009, where he runs Shanghai operations. He retains the role as a Principal at CTC Capital, held since 2007.

Simon was SVP Sales and Marketing at UTS China from 2000 to 2007. He was responsible for the entirety of UTS’s sales to Chinese customers.

Simon manages CCG’s Shanghai office.

Wenhong Wu, General Partner

伍 雯弘, 普通合伙人

Wenhong has over 17 years of experience in the technology industry in China. His broad technical skills combined with his business acumen has brought Wenhong into an analytical role in virtually every CCG project. He was with CTC Capital from its inception in 2007 and has been with CCG since 2009.

Prior to his PE career, Wenhong was at UTStarcom China, where he headed sales for the southern region and later served as Vice President in charge of strategic marketing and merger and acquisition analysis.

Pan Liu, General Partner

柳 攀, 普通合伙人

Dr. Pan Liu is mainly responsible for third-party payments, mobile Internet, communications and information services, new media, and automotive electronics.

Dr. Liu completed his Bachelor’s and Master’s degrees in Electrical Engineering at Tsinghua University and received his PhD from the New Jersey Institute of Technology (NJIT). He was involved in the research and development of the first generation of digial set-top boxes in China and worked as an architect for U.S Broadcom 3G and 4G wireless systems. Mr. Liu also serves as a technical and financial consultant for several CCG portfolio companies.

Telecommunications, Media and Technology Sector
China’s TMT sector is a wellspring of innovation that both serves and benefits from growing consumer markets, expanding infrastructure, increasing numbers of skilled university graduates, and China’s rapid evolution up the value chain.

Telecommunications — The telecommunications sector includes network services, software applications, and infrastructure.

In China, three large service providers, China Telecom, China Mobile, and China Unicom, serve nearly a billion subscribers. Infrastructure consists of millions of cell towers, millions of kilometers of fiber cables, and increasingly massive arrays of computing and storage on top of layers of communications.

These state-owned giants rely on thousands of small and agile companies to supply goods and services directly to them and their subscribers in the forms of value-added services, terminal equipment, and mobile content and applications.


Media — A mass-market, the media segment encompasses social media, blogs, TV, music, newspapers, books, e-commerce, cloud-based productivity tools, advertising, gaming, entertainment, lottery, education.


Technology — In the past, China has led the world’s supply of labor-intensive manufacturing, but in a characteristic progression, the country is moving up the value chain towards technology-based services. Expect to see leadership emerging in areas such as software applications, robotics, artificial intelligence, microsystems, bio-engineering, materials, and energy management.

Economic growth feeds on innovation. Steam power, railroads, electricity, automobiles, radios, telephones, jet planes, TV, transistors, microcomputers, software, fiber optics, the Internet, cell phones – we are rich because of them. But what innovations will drive the next cycle?

Killer applications and products, disruptive breakthroughs, and the emergence of ingenious corporate leaders are notoriously hard to predict, but we can be certain that the innovation-rich TMT sector companies will play a principal role in solving the big problems and creating the key breakthroughs for human progress.

In China, where change is everywhere, the TMT industries are moving the fastest. Employing top university graduates. Creating and protecting intellectual property. Addressing burgeoning consumer appetites. Creating infrastructure. Pushing the regulatory envelope. Building new brands. Attracting and growing capital. Chinese TMT enjoys a growth market within a growth region.

Key Investments
Since 2009, we have operated two funds and made investments in New Media/IPTV, Mobile Commerce, Cloud-based Productivity Apps, Network Design Tools and Services, and Design and Manufacturing Services.
百视通
New Media & IPTV

BesTV is among the largest IPTV operators in the world with about 10 million users, a base that grows 30% per annum. The Shanghai operation with close to 1.5 million users, about one third of the entire city’s Internet subscribers, is the largest single market in China, and for that matter, the world.

BesTV carries on-demand movies, sports (including exclusive live NBA events), local and out-of-town channels, high definition formats, shopping channels, kids education and entertainment, movies on-demand, and other premium content.

百林通信
Network Design

Network operators want the perfect balance between cost and performance. Indeed, radio network planning and optimization, as it is called, is an art, a science, and an industry. Bynear Telesoft Ltd. designs radio network planning and optimization software, which helps operators plan radio networks on the basis of 3D city maps, detailed models for radio elements, and data gathered from empirical “drive” tests. Bynear has developed a comprehensive suite of 2G and 3G tools. They are the only company in China to combine proprietary software and design services under one roof, and the only one capable of scaling up to become a national supplier.

广东长实通信股份有限公司
Network Design

The three national network service providers in China operate over 1 billion copper subscriber-lines, fiber-optic Internet terminations, and cellular handsets. Construction and ongoing maintenance requires numerous skilled and semi-skilled technicians to perform outside plant construction and maintenance. Changshi Communications Co., Ltd. is the largest third party service company providing these services under contract.

Changshi is the only company of its kind to have scaled its business nationally.  Today they are operating in Guangdong, Yunnan, Hubei, Guangxi, Inner Mongolia, Jiangsu, Guizhou, Hainan, Sichuan, and Shanghai. 

移通讯联
SaaS Productivity

EagleLink Technology’s concept is to boost the productivity of China’s mobile, knowledge-based workforce. With a cloud SaaS server side and mobile clients, their architecture is modern and ready for any service, user interface, or terminal form-factor the market requires.

EagleLink is building tools for a few industry verticals. For example, they are working with a 1st tier national insurance company to develop tools for the sales force. A tablet pad can deliver a customer-facing, multi-media tutorial on the insurance product catalog. A wizard can walk the potential buyer through a personalized selection process and allow the salesperson to offer pricing, customization, and even close the deal. Customer profiles can be captured, and access to data can be secured with a physical encryption key/chip.

Other tools allow the salesperson to access company directories, calendars, documents, and log expenses, send secure intra-net messages, and so on.

深圳共进电子或公司
Design & Manufacturing

Many contract manufacturers have made the move up the value chain by replacing in-house R&D resources. Such a business model is called “Original Design Manufacturer (“ODM”). Their customers are typically firms with sales and support capabilities that specify products based on their understanding of market requirements, and then these firms buy both design and manufacturing services from the ODM.  The sales company usually brands the ODM products with its own label.

The Gongjin T&W group of companies, operating in Shenzhen, Shanghai and Taicang, has a full product line of pre-designed products that support broadband networking and video over various wired, wireless, and optical media.  In addition to their catalog products, Gongjin designs and builds a range of products to customer specifications.

职脉招聘
SaaS Productivity

Jobmet Technology Ltd has risen in six years to become the number one supplier of middle-tier, skilled workers in China. The firm benefits from three major trends: urbanization along with the development of secondary and tertiary cities, growth of the domestic consumer sector, and the transition to higher productivity business processes. All create demand for Jobmet services.

Jobmet has developed the largest and most valuable database of its kind that holds the resumes and skill-sets of 22 million people. 150 agents stay connected with the talent pool to keep it fresh, and the company is experimenting with a new social networking site reminiscent of LinkedIn.  The site, called Wawh.com, encourages professionals to contribute valuable professional information about themselves.  Jobmet has developed proprietary applicant tracking tools that can match qualified candidates to requirements from hiring firms at the touch of a button. They are also developing SaaS interfaces to allow their customers to perform their own searches and to manage the recruitment process.

全通教育
SaaS Productivity

In some 20 provinces, China Mobile (CML) offers a service that is branded (roughly translated) “School Message Bridge,” but the service is actually provided by third party service vendors who operate the “bridge.” The largest of these is Guangdong Quantong Education Co. Ltd., headquartered in the city of Zhongshan in Guangdong province near Hong Kong. Quantong currently serves 26 cities in 8 provinces and some 3 million subscribing families.

Parents pay about 10 Yuan (USD 1.60) per month for the service, which conveys a variety of information about their children’s performance in school, including test scores, grades, attendance records, teacher’s comments, school bulletins and more. Quantong collects the data using numerous representatives who directly visit the teachers and school officials.  The company also employs a bank of call-center agents, whom the teachers can call with their reports. Parents feel pressured to sign up for this service lest they be judged by their neighbors as neglectful of their children, and teachers have come to regard their reporting duties as part of their expected service to the school.  In other words, the Message Bridge ecosystem has become entrenched in Chinese society as a modern cultural norm.

联动优势
Mobile Services

500 million cell phone users subscribed to Union Mobile Pay (“UMPay”) services as 2011 drew to a close. 100 million more will join in 2012. This is the astounding scale of electronic mobile payments in modern China.

UMPay’s users receive three kinds of services:

  •  Mobile information services – bank and payment card transactions reported via text message
  • Mobile bill-pay and transfers  — payment of utility bills by texting and mobile apps
  • Mobile micro-payments – smart phone app store, ebooks, lottery and more

The company’s services require strong integration with banks and telecom networks.  It helps that UMPay’s founding investors are China Mobile, China’s largest cell phone network operator, and China UnionPay, the national bankcard association.

Contact China Capital Group

Beijing Office

A-808 Hua Ye Intl Center
39 Dong Si Huan Zhong Road
10025 Beijing
China

+86-1085711515

Shanghai Office

Kirin Plaza Building
666 GuBei Lu
200021 Shanghai
China

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