“Science and Technology Innovation Board Daily”, Feb. 28 (Reporter Ao Jin) Affected by factors such as the favorable news released by the central bank recently holding a symposium on completing five major financial articles, today, the stock price of COFCO Capital rose and stopped for a while in the afternoon. At the close, COFCO Capital reported 8.87 yuan/share, an intraday increase of 8.97%, with a total market value of 20.437 billion yuan.

In addition, many individual stocks in the diversified financial sector have also emerged from the upward trend. Among them, Jiuding Investment closed higher and closed at 18.04 yuan/share, with a total market value of 7.821 billion yuan. Huajin Capital, Bohai Leasing, CNPC Capital, and Minmetals Capital also rose more than 2% during the day.

Prior to that, the stock price of COFCO Capital closed 3 consecutive ups and downs in late January, and the stock price increased by 33.23% cumulatively. At the time, the general market was also rising. The diversified financial sector where COFCO Capital is a leading pioneer. At the same time, many individual stocks with Chinese characters, including COFCO Capital, also showed strong gains.

Regarding the trend at the time, some industry insiders said that on the one hand, it was related to the State Assets Administration Commission's statement that market value management results would be included in the assessment of central enterprise leaders, and on the other hand, it was related to the national team's defense.

Some market participants also analyzed that today's rise in COFCO Capital's market is related to the national team's market protection. The general market retreated after opening today, and the index rose after noon trading. The leading gains were individual stocks with Chinese characters and large financial sectors.

Returning to COFCO Capital itself, on January 20, the company released its 2023 annual performance report. It is expected to achieve net profit of 990 million yuan to 1.06 billion yuan during the reporting period, an increase of 65.83%-77.56% over the same period last year.

According to public information, COFCO Capital completed a major asset restructuring in early 2019, and its main business changed from the original steel business to financial business. Currently, COFCO Capital's subsidiaries are located in many industries, involving various segments such as life insurance, futures, trusts, banking, industrial investment, and commercial factoring. Among them, life insurance, futures, and trusts are their key business development businesses.

According to the 2023 semi-annual report, COFCO Capital's insurance business contributed the largest share of revenue during the reporting period, accounting for 78.32%, with a specific amount of 9.206 billion yuan; futures followed, accounting for 16.36%; trusts accounted for 5.19%.

As can be seen, private equity investment accounts for a relatively small share of COFCO's current business. According to its official website, the COFCO Group's unified fund management platform is COFCO Agricultural Industry Fund Management Co., Ltd. The official website describes the platform as a market-based PE agency with unique advantages in the field of domestic food consumption. According to Tianyan Research, the platform currently invests in 3 foreign funds and directly invests in 3 projects, namely Bongrong Electromechanical, the developer of linear pump devices for heating management; Sumidagawa Coffee, a retail coffee brand; and China Tea Company, a tea manufacturer and seller.

The “Science and Technology Innovation Board Daily” reporter reviewed its previous announcements and noticed that COFCO Capital will also launch private equity investments through its wholly-owned subsidiary COFCO Capital Investment Management Co., Ltd. (hereinafter referred to as “COFCO Capital Investment Company”).

Since the restructuring, only two private equity investment funds have been announced by COFCO Capital Investment Co., Ltd., including Liangrun (Lishui) Equity Investment Fund Partnership (limited partnership) and China Reform Shuang100 Development Fund Partnership (limited partnership). According to Tianyancha information, the former is currently investing in two projects, namely the food company Le Cuiju and terminal delivery logistics drone developer Fengyi Technology. The latter discovered through downward penetration that its main investments were concentrated in the technology sector, including SoC chip companies Chenxin Technology and Jita Semiconductor.

Also, according to the company's annual report, private equity investors under COFCO Capital include COFCO Fund Management (Tianjin) Co., Ltd., COFCO Capital (Hong Kong) Co., Ltd., etc., but overall, these entities do not have many foreign investments, whether projects or private equity investment funds.

In the middle of last year, COFCO also established a new Industrial Investment Co., Ltd. in Qianhai, Shenzhen, with a registered capital of 3.03 billion yuan. Currently, COFCO Industrial Investment Co., Ltd. has invested in the second phase of the National Survey Collaborative Development Fund Co., Ltd.