File: WRC-ChinaExperience-080402 “ A  China  Experience” By John Chan, CEO Weatherock China Ltd 4 April 2008
<ul><li>Contents </li></ul><ul><li>Brief Introduction </li></ul><ul><li>Investment & Development Strategy </li></ul><ul><l...
Brief Introduction <ul><li>WFOE in China of Weatherock Pte Ltd of Singapore </li></ul><ul><li>Private funds for investing ...
USA Middle-East Iran Southeast Asia Central Asia Russia Europe Scandinavia Pacific  Islands China Japan Team has direct bu...
Brief Introduction <ul><li>WFOE of Weatherock Pte Ltd of Singapore </li></ul><ul><li>Private funds for investing in China ...
Why China? <ul><li>Massive market – population of  1.3B  ; relatively homogenous </li></ul><ul><li>Fastest growing economy...
Brief Introduction <ul><li>WFOE of Weatherock Pte Ltd of Singapore </li></ul><ul><li>Private funds for investing in China ...
Investment & Development Strategy <ul><li>Criteria (“look for gems”) </li></ul><ul><ul><li>- Local Mass Markets </li></ul>...
Investment & Development Strategy <ul><li>ACQUIRE </li></ul><ul><li>CREATE </li></ul><ul><li>PARTNER </li></ul><ul><li>TRA...
Reviewed, discussed & negotiated over 400 companies, businesses, start-ups or investment proposals … invested in 6 : Inves...
<ul><li>Wanzhou “Riverfront” Project </li></ul><ul><li>Wanzhou “Ancient City” Project </li></ul><ul><li>Chengdu Bangkok Ga...
<ul><li>“ CHALLENGES ” </li></ul><ul><li>Language </li></ul><ul><li>Cultural </li></ul><ul><li>Political </li></ul><ul><li...
<ul><li>“ PERCULIARITIES ” </li></ul><ul><li>Propriety (“selective & effective sizing”) </li></ul><ul><li>Copy cats (eg: S...
<ul><li>Some Success Factors   </li></ul><ul><li>Local Presence </li></ul><ul><li>Have the best man or team on the ground ...
Q&A Thank You      If we could be any assistance in your efforts to penetrate  China, please feel free to contact me...
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Weatherock

  1. 1. File: WRC-ChinaExperience-080402 “ A China Experience” By John Chan, CEO Weatherock China Ltd 4 April 2008
  2. 2. <ul><li>Contents </li></ul><ul><li>Brief Introduction </li></ul><ul><li>Investment & Development Strategy </li></ul><ul><li>Investments to-date </li></ul><ul><li>Lessons Learned </li></ul>
  3. 3. Brief Introduction <ul><li>WFOE in China of Weatherock Pte Ltd of Singapore </li></ul><ul><li>Private funds for investing in China </li></ul><ul><li>Shareholders have extensive international business experiences </li></ul>
  4. 4. USA Middle-East Iran Southeast Asia Central Asia Russia Europe Scandinavia Pacific Islands China Japan Team has direct business development & management experiences in many countries worldwide … global local knowledge International Experiences Australia
  5. 5. Brief Introduction <ul><li>WFOE of Weatherock Pte Ltd of Singapore </li></ul><ul><li>Private funds for investing in China </li></ul><ul><li>Shareholders with extensive international business experiences </li></ul><ul><li>Why China? </li></ul>
  6. 6. Why China? <ul><li>Massive market – population of 1.3B ; relatively homogenous </li></ul><ul><li>Fastest growing economy in the world – epicentre of global economic growth; average annual growth rate of about 9.5% in past 2 decades </li></ul><ul><li>Still emerging with growing affluence </li></ul><ul><li>Purchasing power parity over US$ 7 trillion </li></ul><ul><li>220M internet users in 2007 (about 600,000 in 1997); >23% mobile </li></ul><ul><li>530M mobile users in 2007 (about 270M in 2004) spending ~US$70B </li></ul><ul><li>Healthcare spending over US$ 100B annually </li></ul><ul><li>25M privately owned motor vehicles (increase ~18%) in 2007 </li></ul><ul><li>Boeing predicted in 2007 that China will need 3,400 airplanes worth US$340B over next 20 years </li></ul><ul><li>Investments in real estate in 2007 is about US$ 300B </li></ul>
  7. 7. Brief Introduction <ul><li>WFOE of Weatherock Pte Ltd of Singapore </li></ul><ul><li>Private funds for investing in China </li></ul><ul><li>Shareholders with extensive international business experiences </li></ul><ul><li>Why China? </li></ul><ul><li>Mission in China : </li></ul>“ To turn our $1 into $100 within 5 years ”
  8. 8. Investment & Development Strategy <ul><li>Criteria (“look for gems”) </li></ul><ul><ul><li>- Local Mass Markets </li></ul></ul><ul><ul><li>- Growth Industry </li></ul></ul><ul><ul><li>- Unique Value (niches) </li></ul></ul><ul><ul><li>- Scalability (network) </li></ul></ul><ul><ul><li>- Entry Barrier (knowledge) </li></ul></ul><ul><li>Portfolio </li></ul><ul><ul><li>- Objectives & Criteria </li></ul></ul><ul><ul><li>- Resources – Cashflow & Gestation </li></ul></ul><ul><ul><li>- Entrepreneurial & Opportunistic </li></ul></ul><ul><li>Modus Operandi (“Local Knowledge, Local Resources, Local Markets”) </li></ul><ul><li>Bridge & Connect </li></ul><ul><li>IPO </li></ul>
  9. 9. Investment & Development Strategy <ul><li>ACQUIRE </li></ul><ul><li>CREATE </li></ul><ul><li>PARTNER </li></ul><ul><li>TRANSFORM </li></ul><ul><li>DEVELOP </li></ul><ul><li>GROW </li></ul><ul><li>Leadership </li></ul><ul><li>Management </li></ul><ul><li>Technology </li></ul><ul><li>Strategic Development </li></ul><ul><li>Financing </li></ul>Inputs Sustained Profitability • Network Across China • Growth Engine • Growth Potential • Leadership Position • Values Local Mass Markets • Growth Industry • Unique Value (niches) • Scalability (network) • Entry Barrier (knowledge) • Criteria <ul><li>CONSOLIDATED </li></ul><ul><li>IPO READY </li></ul>
  10. 10. Reviewed, discussed & negotiated over 400 companies, businesses, start-ups or investment proposals … invested in 6 : Investments To-date PanXin Mobile Social Platform Web 3.0 Platform (“Your Home On The Web”) Property Development & Investment Property Development … plus 2 lessons learned
  11. 11. <ul><li>Wanzhou “Riverfront” Project </li></ul><ul><li>Wanzhou “Ancient City” Project </li></ul><ul><li>Chengdu Bangkok Gardens Project </li></ul>Yangtze River Yangtze River Development Strategies for Property Business : <ul><li>Local knowledge, local markets </li></ul><ul><li>Captive Market Positioning (“niches”) </li></ul><ul><li>Target 3 rd and 4 th tier cities </li></ul><ul><li>Create network of “local partners” </li></ul><ul><li>Growth by M&A </li></ul><ul><li>Consolidate & IPO </li></ul>3
  12. 12. <ul><li>“ CHALLENGES ” </li></ul><ul><li>Language </li></ul><ul><li>Cultural </li></ul><ul><li>Political </li></ul><ul><li>Environmental </li></ul><ul><li>Transparency (“information-deficiency”) </li></ul><ul><li>Consistency in laws & regulations (“planning impediment”) </li></ul><ul><li>Bureaucratic governmental agencies (“defy logic”) </li></ul><ul><li>Complicated & excessive taxation system (“dual-book system”) </li></ul><ul><li>Unstructured business & industry practices </li></ul>Lessons Learned Caveats : 1) Personal perspective 2) Linked to Weatherock’s circumstances
  13. 13. <ul><li>“ PERCULIARITIES ” </li></ul><ul><li>Propriety (“selective & effective sizing”) </li></ul><ul><li>Copy cats (eg: Starbucks, KFC) </li></ul><ul><li>Legal redress (long & tedious process with uncertainties) </li></ul><ul><li>Timing (market readiness) </li></ul><ul><li>Resistance to exposure </li></ul><ul><li>Local intents (objective time-frame) </li></ul><ul><li>Local staff (eg: integrity, loyalty & ability; “team building”) </li></ul><ul><li>Local values, aspirations & mindset </li></ul>Lessons Learned (cont’d)
  14. 14. <ul><li>Some Success Factors </li></ul><ul><li>Local Presence </li></ul><ul><li>Have the best man or team on the ground </li></ul><ul><li>Local industry knowledge </li></ul><ul><li>Local network & business relationship </li></ul><ul><li>Effective management of local contents & resources </li></ul><ul><li>Captive market positioning (“niches”) </li></ul><ul><li>Financial resources </li></ul><ul><li>Staying power </li></ul><ul><li>Flexibility (“adaptive strategy”) </li></ul>Lessons Learned (cont’d)
  15. 15. Q&A Thank You      If we could be any assistance in your efforts to penetrate China, please feel free to contact me Mobile : +86-139 80952914 Email : [email_address]

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