After 46 years of establishment and 16 years of investment in China, the net value of the global investment portfolio has reached 306 billion Singapore dollars (about 1.53 trillion yuan), the net investment portfolio of the Chinese market has reached 88.7 billion Singapore dollars (about 442.6 billion yuan), and no one in the capital market knows Temasek.

Temasek, which appears in the "Zheng he nautical Chart", was originally the old name of Singapore, which refers to "city by the sea".

Today, 600 years later, it has become synonymous with a generation of VC/PE legends.

It controls almost all of Singapore's most important and largest enterprises, including Singapore Telecom, Singapore Airlines, DBS Bank, Singapore Metro, Singapore Port, Sea Emperor Shipping and Singapore Electric Power. Temasek has always been "the lifeblood of Singapore's economy".

On Sept. 8, 2020, Temasek handed over its fiscal 2020 report: for the first time, the Singapore PE giant's position in China exceeded its investment in Singapore's home market.

Temasek reported that due to the increase in the market value of assets held and net investment, Temasek's portfolio in China rose to 29 per cent, surpassing Singapore (24 per cent) to become its highest market by underlying assets. Investing in Kuaishou Technology Technology, the Beijing-Shanghai high-speed railway and Oukangwei, an ophthalmology platform company, was a major blow for Temasek in fiscal year 2020.

For the most valued Chinese market, Temasek continues to attack.

1.53 trillion has been invested in three major areas.

Black swans are common in 2020, and PE giant Temasek has just handed over a report card.

Temasek reported a net portfolio of 306 billion Singapore dollars (1.53 trillion yuan) in the fiscal year ended March 31, 2020, an increase of 120 billion Singapore dollars (598.8 billion yuan) over the past decade, Temasek reported on Sept. 8, 2020. it has about tripled in the past 20 years.

According to the financial report, Temasek invested S $32 billion and sold off S $26 billion in fiscal year 2020, with an one-year total shareholder return of-2.28%. In the 46 years since its inception in 1974, Temasek's compound annualized total shareholder return has been 14%. The 20-year total shareholder return is 6%. The 10-year total shareholder return is 5%.

In terms of specific investment areas, Temasek took a heavy position in technology, financial services and life sciences in fiscal year 2020.

"We value innovation, including areas such as artificial intelligence, blockchain and cyber security to develop new capabilities. These new business opportunities provide talent and service resources for our portfolio companies and ecosystem partners. "Temasek said.

In the technology sector, Temasek has invested in several technology companies that adapt to structural trends, including Duck Creek Technologies, a US software provider for the property and accident insurance industry, ManoMano, an European home products ecommerce platform, and China's big data solutions company MiningLamp.

In financial services, Temasek has increased its investment in payments and other non-bank financial services companies to benefit from the rapid development of digital financial services, such as Blend, the US digital lending platform.

In life sciences and healthcare, Temasek's investments in fiscal 2020 include Ayre Ophthalmology, Carebridge, the integrated health services group, and biopharmaceutical companies such as Beam Therapeutics, Coherus BioSciences, Transcenta and Vir Biotechnology, which develop new drugs and treatments.

In addition to the above three areas, Temasek has also invested in sustainability for a long time.

In terms of sustainable energy, Temasek has invested in Singapore-based Asian solar developer Sunseap and partnered with EQT Infrastructure to set up O2 Power, a renewable energy company in India.

In addition, with the increased demand for sustainable food production, Temasek has increased its investment in companies producing alternative and plant proteins, such as additional investments in Impossible Foods, Calysta and Perfect Day, as well as new investments in Memphis Meats and Califia Farms.

Yang Jiquan (Yeoh Keat Chuan), Senior Executive Manager of Global Enterprise Development and Vice President of Project Coordination in Singapore, Temasek International, said in the financial report, "the crown disease epidemic has expanded and accelerated the structural trends that guide our investment. These trends are driven by social progress, demographic changes, the transformation of consumption patterns and advanced technology. The pandemic has given us a sharper perspective when looking at these trends. "

"as we shape our portfolio in the future, we will explore innovative companies that are at the forefront, develop cutting edge, or subvert traditional solutions, and create opportunities. "

16 years in China, hidden behind BABA, Tencent, ICBC and CCB

To date, Singapore-based Temasek has 11 offices worldwide: Asia includes Beijing, Hanoi, Mumbai, Shanghai and Singapore; non-Asian regions include London, New York, San Francisco, Washington, D.C., Mexico City and S ã o Paulo.

China is a "blessed place" for Temasek to achieve a soaring business.

In retrospect, Temasek's investment in China has stepped on the right pace twice and made a lot of money. The first time is to invest in a number of large domestic commercial banks after 2004, and the second time is after 2010, Temasek bet on a number of well-known domestic Internet companies.

In October 2004, Temasek opened an office in Beijing. On October 18, 2004, China Minsheng Banking Corp announced that it agreed to transfer its 4.55% stake in China Coal Energy Group, its seventh largest shareholder, to Temasek's Asian Financial Holdings Private Co., Ltd.

This is a quick negotiation. It has been only three months since China Minsheng Banking Corp announced that Xinqiao Capital Group had abandoned its shareholding on July 12, 2004.

By taking a stake in China Minsheng Banking Corp, Temasek gained access to Chinese banking. In 2009, Temasek emptied all shares of China Minsheng Banking Corp, cashed out 2.3 billion yuan, and made a profit of more than 1.4 billion yuan.

Since then, Temasek's investment in Bank of China Ltd. has soared.

In July 2005, Temasek signed a memorandum with China Construction Bank Corporation agreeing to buy a 5.1 per cent stake in CCB from Central Huijin Investment Corporation for $1.4 billion. In September, Temasek officially confirmed that it would invest $3.1 billion in Bank of China Ltd. to buy a 10 per cent stake.

In the 2003 fiscal year before entering China, Temasek's net investment asset value was only S $61 billion, and by the time of the financial crisis in 2008, its net investment asset value had reached S $185 billion.

At that time, in addition to banking and financial institutions, Temasek also invested heavily in Chinese non-bank financial institutions, such as CITIC, Ping An Insurance, New China Life Insurance and so on.

In 2012, China Mobile Limited Internet industry broke out.

That year, XIAOMI began to prepare for round B financing, BABA began to prepare the US IPO, Wechat began to hatch in Tencent's system, and Temasek acquired them one by one over the next few years.

Since then, Temasek, which is hidden behind China's banking and Internet giants, has become a force that can not be ignored in China's capital market.

"We feel that in today's world, in terms of the balance between risk and reward, China is the best in the medium to long term, which is why, fundamentally speaking, we still have long-term confidence in the Chinese economy. Wu Yibing, co-president of global corporate development and president of China of Temasek, said at the Bloomberg buyer's Forum on October 24, 2019.

In the next five years, China Healthcare will be hit hard, and the four major investment strategies will be made public.

In the earnings report, Temasek said that in China, everyone has steadily returned to work, and recent data show that China's domestic economy is recovering. "We expect that overall policy will continue to be loose to support the recovery of the economy and the job market. Despite the challenges of implementing reforms, the Government continues to attach importance to economic rebalancing. "

"over the past five years, China's investment environment has changed significantly, both in terms of national governance and the business environment. "

Wu Yibing pointed out at the Bloomberg buyer's Forum that against this background, for large asset owners around the world, such as pension funds in the United States and sovereign funds of various countries, the allocation of RMB assets is still at a very low level. The proportion is only about 2% and 3%, so there will be a lot of room for growth.

In terms of thematic investment, Wu Yibing believes that the next wave of China's economic growth can be laid out in terms of continuously deepening reform and opening up, innovative enterprises, the rise of a new generation of consumers, structural changes in the value chain and supply chain, and leading enterprises building ecosystems.

Among them, Wu Yibing saw that life science and technology is the next major investment opportunity for China.

At present, Temasek's investment in China's medical industry is mainly focused on three aspects: deeply ploughing biomedical scientific and technological innovation and investing in related early companies; heavy holdings of the leading enterprises in China's medical industry, China's medical industry is expected to grow steadily for a long time in the future, and related industry leaders will be the beneficiaries; develop an industrial platform according to China's national conditions and explore and build a new type of medical service industry.

Specifically, Temasek's investment in China will follow four strategies in the next five years.

First of all, cooperate with strong funds to expand more investment and M & An opportunities. Wu Yibing said that 90 per cent of Temasek is a direct investment and the other 10 per cent is in partnership with LP, while Temasek is also one of the largest LP in the world.

Second, invest in early-stage companies and seize the opportunities brought about by innovation. "unlike the traditional VC, we are not trying to get dozens of times the return on an one-time investment, but gradually increase our positions and become its major shareholders after the company's B turn to Pre-IPO. We hope to be able to find future leaders, which is the biggest theme of our investment in early companies. "

Third, become an excellent partner of the core listed company and continue to create returns. Wu Yibing said that Temasek's investment does not end at the time of listing, but hopes to continue long-term cooperation in the secondary market.

Finally, to build an investment platform and ecosystem in line with China's long-term development trend. "in the trend industries, such as health pension, insurance, asset management and other areas, we not only make minority equity investments, but also hope to create a new type of enterprises through mergers and acquisitions. Wu Yibing said.