Hillhouse Capital’s layout in the field of biomedicine has achieved another success.
On August 17, JD released the 2020 second quarterly report and semi-annual report. The financial report also disclosed that Jingdong group subsidiary JD.com Health and Hillhouse Capital signed a definitive agreement on the financing of the B round of non-redeemable preferred stocks of JD.com Health. Hillhouse Capital expects to invest more than US$830 million in total.
The shareholding of JD is healthy, which is a microcosm of Hillhouse Capital’s investment layout this year. Since 2020, Hillhouse Capital has made frequent moves and continued actions. It not only officially launched the tens of billions of early-stage venture capital, but also launched a series of heavy operations in the PE equity, mixed reform, and fixed increase markets. Especially in the field of biomedicine and medical equipment, the”buy, buy, buy” model has been started.
On September 1, at the 2020 Hong Kong Stock Exchange Biotechnology Summit, Hillhouse Capital’s founder and CEO Zhang LeiIn a dialogue with Li Xiaojia, Chief Executive Officer of the Hong Kong Stock Exchange, said that life sciences and biotechnology are expected to usher in a”cambrian explosion”. Zhang Lei also revealed that Hillhouse Capital has invested 120 billion yuan in the field of biomedicine.
As one of the largest asset management investment funds in Asia, Hillhouse Capital invests in TMT, healthcare, consumer and corporate services, and has invested in many iconic outstanding companies, including Tencent, JD, Blue Moon, Meituan Dianping, Didi, WuXi AppTec, etc., their investment landscape is still expanding.
Prefer medical and health care
Hillhouse Capital’s early investments are mostly concentrated in the Internet and technology fields. In recent years, the company’s investment in the medical and health Wider. Especially since the outbreak of the epidemic this year, the fields of biomedicine and general health have received unprecedented attention, and Hillhouse Capital has made frequent actions in this field.
On February 16, Kailyin released a refinancing plan, with a total fundraising of no more than 2.3 billion yuan. Fully subscribed by Hillhouse Capital. Kailaiying is a CDMO (medical contract custom development and production) enterprise. However, on July 22, Kailaiying revised the fixed increase plan, and the fixed increase target was changed from Hillhouse Capital to For 35 specific investors, key information such as lock-up period and pricing base date have also been revised.
On March 26, Hualan Biological disclosed that its subsidiary Hualan Biological Vaccine intends to introduce strategic investment. Hillhouse Capital and Morning One Fund respectively spent 1.242 billion yuan and 828 million yuan to acquire 9%of the vaccine company. , 6%equity. In the same month, Hillhouse Capital invested about 1.056 billion yuan to increase its holdings in Hong Kong stock company MicroPort Medical (00853.HK).
In May, the medical device company Kailitai launched a non-public offering of shares. The planned number of non-public offerings is no more than 58.5 million shares, and the fundraising is no more than 1.096 billion yuan, of which Hillhouse Capital plans to subscribe 21 million shares, the issue price is 18.73 yuan. It is estimated that Hillhouse Capital will subscribe for shares with a total price of 393 million yuan.
On July 12, Healthyuan announced that it plans to introduce a non-public offering of no more than 2.173 billion yuan to introduce war investment capital to supplement working capital, and Hillhouse Capital will subscribe in full.
The reporter of”Entrepreneurship Circle” combed and found that Hillhouse Capital participated in 6 A-share fixed increase this year, 4 of which focused on the biomedical industry.
In fact, Hillhouse has been in the medical field for many years. A set of data provided by Hillhouse Capital shows that Hillhouse has basically completed biomedicine, medical equipment, and high-end hospitals worldwide. , Pharmaceutical retail and other industry chain coverage. It has invested in more than 160 companies, including more than 100 Chinese companies. The total investment amount exceeds 120 billion yuan, and the total market value of the invested enterprises exceeds 2.5 trillion yuan.
In the early morning of August 15th, Beijing time, Hillhouse Capital announced in the US Securities and Exchange Commission (SEC) its US stock positions at the end of the second quarter of 2020. As of the end of the second quarter, Hillhouse Capital held shares of 74 companies in the United States, with a market value of US$10.94 billion (approximately RMB 76 billion). Biopharmaceutical companies have reached 42 seats, holding a market value of more than US$3 billion (nearly 21 billion yuan).
Beyond the scale, from the perspective of subdivisions, Hillhouse Capital is biased towards CRO/CMO/CDMD and innovative drugs.
According to incomplete statistics, Hillhouse Capital’s CRO-owned companies include Kailaiying, Fang Tat Pharmaceuticals, WuXi AppTec, Tigermed Pharmaceuticals; CMO/CDMO holds Hequan Pharmaceuticals; In the field of innovative medicines, Hillhouse Capital holds Cinda Biology, Junshi Biology, Kewang Pharmaceutical, Haihe Pharmaceuticals, BeiGene, Hengrui Pharmaceuticals, Tianjing Biological, CStone Pharmaceuticals and many other companies. Investment from the A round to IPO, the new three board fixed increase.
Among them, BeiGene is Hillhouse Capital’s third largest holding stock, Hillhouse has continued to invest Beijing Shenzhou 8 times. On July 13, Hillhouse announced that it would subscribe for the BeiGene of no less than USD 1 billion (approximately RMB 7 billion). span>. This is also the largest equity investment in the history of global biomedicine.
Hillhouse Capital has also invested in a number of unlisted biopharmaceutical companies, including Chuangsheng Group, Tianjing Biological, Kewang Pharmaceutical, CStone Pharmaceuticals, Jiahe Biological, Zerun Biological, Haihe Biological, Yehui Medicine, Haihe Medicine, etc.
How does Hillhouse Capital deploy the medical and health industry? The reporter of”Entrepreneurship Circle” noticed that at the main forum of Hillhouse Hcare Global Health Industry Summit held a few days ago, Hillhouse Capital’s co-chief investment officer and partner Yi Nuoqing highlighted two aspects:First, the internationalization of innovative drugs; The second is translational medicine.
Continuous expansion of investment landscape
In Hillhouse Capital’s investment landscape, healthcare is only one of its important sectors.
Hillhouse Capital is a long-term structural value investment asset management company. After more than ten years of development, Hillhouse Capital’s current fund management scale exceeds US$65 billion, compared with US$20 million when it was founded in 2005. An increase of 3250 times. In March this year, Hillhouse launched as much as $13 billion in new fundraising.
Hillhouse Capital has been positioned to be a long-term investor with an independent investment perspective from the beginning of its establishment. Hillhouse Capital can conduct concentrated investment and long-term shareholding in unlisted or listed companies, except for this In addition, Hillhouse has a flexible investment scope and can provide financial support in various stages from the start-up stage to the post-listing stage according to the financial needs of the company’s development.
In the early stage of Hillhouse Capital, Zhang Lei invested most of the funds raised at the beginning into Tencent. This was his first investment and the most rewarding investment. Hillhouse Capital invested US$265 million in Jingdong in 2010, becoming the largest single investment in China’s Internet that year.
Up to now, Hillhouse Capital has invested in a large number of outstanding domestic and foreign companies in the fields of consumption and retail, technological innovation, life and health, financial technology, corporate services and advanced manufacturing, including:Tencent, Baidu, JD, Meituan, Ctrip, Qunar, Uber, BeiGene, Gree, Midea, Aier Ophthalmology, Zhongtong Express, Blue Moon, Didi Chuxing, NIO, Kidswant, Mobike, Junshi Bio, WuXi Kangde, Ganli Pharmaceutical, etc.
Since this year, in addition to its deployment in the biomedical field, Hillhouse Capital has also frequently deployed other fields. On June 16, Glodon announced the completion of the non-public offering, Hillhouse Capital was allocated 29,714,700 shares, and the allocated amount was 1.5 billion yuan. Glodon is a cloud computing company in the field of domestic construction software.
On July 17, the lithium battery leader Ningde Times announced the result of a fixed increase of 19.7 billion yuan, and received 100 billion yuan of funds to raise funds. In the end, Hillhouse Capital subscribed for 10 billion yuan and became a big winner.
It is foreseeable that Hillhouse Capital’s investment landscape will continue to expand. The long-term philosophy of this investment fund known as”value investing” will continue to run through every investment of Hillhouse Capital.
In Zhang Lei’s view, long-termism is not only an inevitable path for the transformation of Chinese enterprises, but also a fundamental method for personal training and self-worth realization, whether for enterprises or individuals. In the preface of his forthcoming first book”Value”, he stated that long-termism is not only an inner rule that investors should follow, it can be an excellent perspective to look at the world again.
“Because, for individuals, long-termism is a kind of sobriety that helps people establish a rational cognitive framework and is not affected by short-term temptations and noise. For companies and entrepreneurs, long-term Doctrine is a pattern that helps companies reject the imprisoned zero-sum game and reshape the dynamic moat of the company in the process of continuous innovation and continuous value creation.” Zhang Lei said.