We would like to share the outlook to the Post-pandemic opportunities as we step into the new year of 2022.

The turbulences in 2022 have further assured us that investment requires perseverance through these cycles. Companies need to focus on the cash flow to extend their runway and survive to grow.

Investments should come back to what it was in late 2000s, early 2010s: to find companies with the capability to be break-even very quickly with minimum fund raisings.

As we embark on the start of 2023, leaving the COVID situation behind and trade conflict with the US, we eagerly anticipate the emergence of new opportunities:

• China's growing R&D investments in various industries will likely lead to the development of more innovative technologies in fields such as pharmaceuticals, semiconductors, manufacturing, and aerospace.

• Although China has many great consumer goods companies, there are few internationally renowned Chinese brands. We look forward to the emergence of more brands. We think an educated connected consumer class will continue to thrive.

• A future wave of exports is on its way, as Chinese companies gradually transitioning from only "Made In China" to “Chinese Brands”. Companies will move beyond the simple OEM model to participate in the process of design, production, and marketing to create internationally renowned brands. It will take time but it will rise up.

Back on 2022

Despite the headwinds, we are very pleased to recall the year 2022 with you despite headwinds. In 2022：

• Our portfolio companies: Eight portfolio companies completed new rounds of financing, totaling nearly RMB 600 million.

• Our investments: We invested in Eight startups across China and SEA, we keep focusing on Consumption【Reflaunt】【PPD】, Technology, and Cross-border【Project Z】 sectors.

• Fundraising: We formally closed the USD Fund IV.

• Exits: two exits have been completed successfully.

• Accomplishments: Ventech China was awarded "Top 20 Investment Institutions in China's Cross-border and Globalization Sector" by 36kr, "Top 20 Most Socially Responsible GP List" by FOFWEEKLY.

• Ventech Europe: Ventech Europe had a fruitful year as well. It was awarded Top 10 Early-stage Investors in France, invested in twelve new startups (including Impact Fund) and achieved four successful exits.

It has been an unusual, difficult but rewarding year for both Ventech China and our portfolio companies, the whole year can be tracked in the following five keywords: Progression, Innovation, Insight, Connection, and Prospect. 

Progression: Optimize Businesses with Perseverance

Keep: In 2022, Keep's in-app traffic and user retention continued to increase. Sports occasions of the users expanded significantly. Its cordless jump rope, meditation for sleep, medal events, and indoor and outdoor cycling became the hottest sports categories on the internet in 2022. According to third-party data, the peak MAU for Keep in 2022 reached 52 million. A YoY increase of 26.4% in average monthly user usage is also observed. In addition, Keepland expanded at a rate of 100 stores in 10 months in 2022.

Naive Blue: The "legend of tiny photos" continued to make progress, penetrating more cities and exceeding 600 stores by the end of 2022. This year, Naive Blue collaborated with many brands such as Super Monkey, Maybelline, Theory, and New Balance.

DFWY: This year, DFWY further enhanced its core competitiveness in the fintech industry with the "Bisheng SME Digital Empowerment Platform." It was awarded the "IDC China FinTech 50" and the "Excellent Case of Financial Technology Innovation Application" for 2022.

Summer Farm: Summer Farm honed its business model in catering supply chain and continued itsbusiness expansion, covering 120+ cities and serving nearly 300,000 stores by the second half of 2022, also ranking on the list of Hangzhou quasi-unicorns in 2022.

Switchbot: Switchbot was selected for the Amazon Japan platform's "Best Partner Award" for two consecutive years. Also, it achieved the only "Grand Prize" in the Tools & Home Improvement Home category in Amazon Japan. The Switchbot app became the number one smart home app in Japan.

 E-Health Now: E-Health Now has signed contracts with over 160 First Class Grade 3 hospitals across the country and established partnerships with nearly 60 large and medium-sized insurance companies in China. At the same time, E-Health Now's Internet Hospital (Yinchuan) has been officially approved by the Yinchuan Health Commission.

ZS Tech: ZS Tech has officially collaborated with many international consumer electronics brands and launched cutting-edge products. At CES 2023, the world's largest technology consumer electronics show, Asus showcased the world's first 16-inch naked eye 3D OLED laptop display technology, once again leading the development of the 3C screen industry. Asus’s screen used ZS Tech's naked eye 3D display technology. Also, ZS Technology officially entered the BOE’s supply chain after it reached a strategic partnership with the BOE Technology Group Co., Ltd.

Innovation: Achieve Breakthroughs Under Pressure

Super Monkey: Super Money started to test immersive fitness: In June 2022, Super Monkey officially launched the immersive fitness course – Super Monkey Meta Curtain. In addition, Super Monkey deeply cooperated with PICO (the top VR brand under TikTok) and customized more than 500 minutes of private fitness courses in the top-level fitness show "Super Combustion Moment”.

 Volant: Volant prepared for its maiden flight: The full-size Volant VE25 X1 technical verification aircraftcompleted the final assembly stage and successfully rolled off the production line in the third quarter. In November, it completed the power-on, power operation, and On-Aircraft Test Procedure (OATP)experiments for all systems, entering the countdown to its maiden flight.

Reflaunt: As a leading resale technology solution provider in the fashion industry, Reflaunt acquired luxury brands such as Balenciaga and retail platforms such as NET-A-PORTER, MR PORTER, Harvey Nichols, and THE OUTNET.

Insight: Embrace Research-Driven and Scientific Decision-Making Processes

Absorptions: The observations of people are always the core part of early-stage investments. In 2022, we initiated extensive conversations with the entrepreneurs/CEOs, and shared their unique insights on the industry, as well as their entrepreneurship and values in the "CEO Talk Series".

• A Conversation with Mr. Li Zhichen, the Founder and CEO of SwitchBot” (link)

• A Conversation with Chinese Aerospace Innovators: Dong Ming, the eVTOL Pioneer and the Founder of Volant (link) 

• A Conversation with Chinese Aerospace Innovators: Professor Liu, the New Material Innovatorand the Founder of Hong Hu Ji Hang (link)

Studies: Grasping the Beliefs Behind Market Noise

• We explored the change of business model with the advancement of information technology and imagined the possibilities in the future.--> Why MNCs Prospered in the TV Era but Struggle in the Internet? (link) 

•  We reviewed the statistics of the post-IPO performance and return on exits to enhance the VC exit strategy. -->Successful Investments Are Achieved by Successful Exits (link) 

• What is the brand moat? What inspiration does Coca-Cola bring to China's cutting-edge consumer companies? -->How to Infuse Coca-Cola's Experience into China's Emerging Brands? (link)

Connection: Thrive Growth through People

Ventech ConNEXTion Series: This is a place where we connect entrepreneurs and pioneers from different industries and sectors. The first ConNEXTion event was held in Shanghai in December 2022, with the theme "Exploring the Next Fashion Frontier". Ventech China, VIP.com, top luxury brands, creative marketing pioneers, and start-ups meet together to discuss the trend in digital channels and marketing in the fashion retail industry.

FLADY X Ventech: Together with the new generation of ladies from FLADY, we explored how to create international brands through the cycles, how to operate the brands with a long-term perspective to enhance brand value, and how to create more outstanding Chinese brands.

Industrial Bank of China Family Office X Ventech: Curt, James, and Matthew LIM, the founder of NFKings, a Ventech China invested company, attended as keynote speakers at the Industrial Bank's "Elite Club Business Elite Plan" event, sharing their unique stories on their growth path with a group of young people, and discussing " Exploring the Digital Transformation of Traditional Industries ".

Prospect: Explore Post-Pandemic Opportunities 

The entrepreneurial soil in China remains fertile. Both government and companies are seeking new paths and seizing opportunities through innovation. Entrepreneurship will grow after getting through the unprecedented challenging period.

We are confident and excited for the next decade. The new journey after the pandemic era begins in 2023, and we look forward to being a part of China’s advancement and prosperity.

In the meantime, we wish you a New Year filled with happiness and good health.