Industrial investors are rushing in, RBF revenue-sharing investment and financing ecosystem
On April 18-19, the Yinli-Longpine Ecosystem Co-Creation Conference, jointly hosted by Yinli Group, Longpine Capital, and MicroConnect, was successfully held in Zhaoqing under the theme "Ecosystem Co-Creation, Investment Empowerment, and MicroConnect Nourishment." Relevant investment institutions, industry experts, and ecosystem partners gathered to exchange ideas on topics such as "modern financial innovation, new business and operating models, the resilience and vitality of the consumer market, and future trends in the consumer industry," aiming to drive innovation and build a sustainable business ecosystem.
Building the Chain Industry Ecosystem and Creating Small but Beautiful Chain Enterprises
"Opening chain stores to franchising and building a chain industry ecosystem not only benefits the industry but also enhances brand influence, creating small but beautiful chain enterprises." — Pei Liang, Honorary President of the China Chain Store & Franchise Association
Amid economic downturns and the exploration of innovative transformations, the chain industry faces numerous challenges. In the stage of stock competition, the growth challenges for top chain enterprises mainly focus on brand building and product quality. MicroConnect, as an innovative investment and financing model, provides financial support to small and medium-sized chain enterprises, addressing funding issues in the early stages of entrepreneurship. In the future, the chain industry hopes to build a healthy ecosystem to navigate difficult times smoothly and embrace future development.
Persistence and Change
"We remain firmly optimistic about China's economic development prospects and are committed to the consumer sector." — Jiang Yuemin, Founder and Chairman of Longpine Capital
Consumption accounts for over 50% of China's GDP, marking a shift in economic momentum from investment to consumption. Consumption potential is mainly reflected in the demand for high-quality services and manufacturing, as well as the basic needs of new urban populations during urbanization. In 2024, companies will seek growth opportunities under normal conditions, and brands will refine their products and services more meticulously.
Against the backdrop of slowing retail sales growth, adhering to value investment and investment cooperation principles is paramount. At the same time, expanding the ecosystem and participating in RBF (Revenue-Based Financing) models, combining the advantages of equity investment and RBF, MicroConnect provides non-dilutive financial capital to small or growing enterprises through the MicroConnect Macao Exchange (MCEX). In the future, Longpine Capital aims to become a leader in the "equity investment + RBF" model in the consumer sector, creating greater value for investors.
MicroConnect's Modern Financial Innovation
"MicroConnect pioneered the concept of revenue-sharing venture capital, a new form of venture capital that, compared to traditional equity venture capital, offers significant advantages in valuation difficulty, risk, exit mechanisms, and market size, comprehensively lowering the threshold for venture capital." — Meng Zhaoli, Dean of the MicroConnect Research Institute and Chief Digital Economist of MicroConnect
Technological innovation is crucial for driving financial market development. Revenue-sharing venture capital values companies based on future revenue over several years rather than long-term value, reducing risk and allowing investors to exit anytime on the secondary market, tapping into China's potential market of up to 70 trillion yuan.
The Australian-style IPO, as a plug-and-play financing method, offers advantages such as low cost, speed, and flexible scale. MicroConnect will provide real estate developers, brand owners, and other ecosystem partners with more diversified services, tools, and solutions to help them unlock the value of digital assets.
Dr. Ge Long, Chairman of Glonghui Information Technology Co., Ltd., shared valuable market insights and future trend analyses with attendees, drawing on his extensive macroeconomic and financial investment experience.
Innovation and Quality in Business, Constant Renewal in Commerce
"Three keywords for today's consumer changes are 'quality-price ratio,' 'self-love,' and 'returning to local and nearby.' Businesses that offer high cost-performance, focus on physical and mental health, and embody local characteristics and human touch will resonate more with consumers." — Ding Liye, Chairman of Yinli Group
Although the growth rate of disposable income and consumer confidence remains relatively low, consumption contributed 82.5% to economic growth in 2023, a record high, making it the main engine of macroeconomic growth.
REITs (Real Estate Investment Trusts) are significant for the sustainable and endogenous development of China's commercial real estate. They complete the business model loop of "investment, financing, management, and exit," providing new value anchors and promoting market-oriented operations. This aligns well with MicroConnect's philosophy, and the hope is to continue collaborating in the future, sailing together through challenges.
Encounters and Foresight About the Future
Ding Liye, Chairman of Yinli Group, and Zhang Gaobo, Founder and CEO of MicroConnect
"Following market changes, it is important to build an ecosystem that includes asset discovery, investor participation, and exchange functions, allowing all contributors to share in the benefits. The future of ecosystem construction and exchange platform development will undoubtedly be vibrant." — Zhang Gaobo
At last year's official launch of the MicroConnect Macao Exchange (MCEX), Mr. Ding Liye and Mr. Zhang Gaobo engaged in a dialogue about "good money and good storefronts." This conversation felt like a sequel, as they discussed investment strategies in the current economic environment, the constants of the consumer market, the application of technology in driving business model innovation, and ecosystem building.
Mr. Zhang Gaobo noted that even amid economic fluctuations, consumer behavior persists, though consumption methods and preferences change. Adapting to market changes and flexibly adjusting investment strategies is particularly important.
The conference also unveiled a series of ecosystem strategic cooperation projects. Zhu Yali, General Manager of the MicroConnect Macao Exchange (MCEX), presented the "Shopping Mall Ecosystem Partner—RBF Lead Investor" plaque to Song Xuedong, Executive President of Longpine Capital. Yinli-Longpine Capital established a special fund for the MicroConnect Macao Exchange (MCEX) to invest in shopping mall revenue-sharing assets. The launch of this fund will further support the development of shopping mall ecosystems, providing investors with opportunities to participate in consumer asset returns. Additionally, the signing ceremony of the "Food Industry Equity Investment Fund" jointly initiated by Ziyan Food and Longpine Capital signaled deep investment and cooperation in the food industry chain and supply chain.
A roundtable forum on the theme "Resilience and Vitality of the Consumer Market," moderated by Liu Chenyan, Vice President of MicroConnect, featured discussions with Li Chuhua, CFO of Yinli Group; Li Mingbo, CEO of Lelecha; Li Kaihua, General Manager of Yukua; and Cao Haijun, Founder of Ru Aishang. They shared their experiences and strategies in facing consumer market challenges and how brands can find new growth opportunities.
During the ecosystem enterprise speeches, Ma Yingyu, Partner of 52Hz, and Deng Saifeng, Deputy General Manager of Zhaolong Technology, delivered insightful presentations on "High-End Chain French Cuisine Under New Business Models" and "Empowering Commerce—Zhaolong Technology's Ecosystem Layout," respectively.
This was not only a grand event in the business and financial sectors but also an in-depth exploration and discussion of the future business ecosystem. Amid waves of change, how to seize opportunities, address challenges, and build a sustainable business ecosystem is a question every enterprise and individual must ponder. Whether in financial innovation, chain operations, or investment strategies, proactive adaptation to market changes and innovation-driven sustainable development are essential.
$Yinhua CSI HK Equities Consumption Theme ETF(159735.SZ) $内地消费(000942.SH)
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