Tsing Capital!!

The Pioneer and Leader of Cleantech Investment in the !World’s Largest Market!

!

Doing Well by Doing Good© Photo by Sandy Xu @ Tsing Capital

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Our Vision

Founded in 2001 on the philosophy of “Doing Well by Doing Good©,” Tsing Capital has since become the global pioneer and leader in environment and cleantech investment. With the vision that sustainability would be a fundamental paradigm shift in human activities and create the greatest economic opportunity of our time, the firm has invested in cleaner and better ways of producing and living. As China emerges as the largest market, Tsing Capital is poised to seek superior returns for its investors environmentally, socially, and financially.

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In 2010, China’s energy consumption per unit GDP is 5 times of Japan and 3 times of US

High GDP = 3 “Highs” in Growth, Energy Consumption & Pollution

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Challenge: World Factory vs. World Polluter

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Export  Growth  vs.  CO2  Emissions  CO2  Emissions  (megatons)   Exports  ($  billion)  

Source: Tsing Capital, blog.cfr.org,

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Opportunity: Clean Economy is Government’s Top Agenda

1990-2002: Scientific Terms •  Established working

groups •  Ratified UNFCCC and

Kyoto

2003-2009: National Agenda •  Circular Economy •  Green GDP •  Environmentally

Friendly and Resource Efficient Society

•  Renewable Energy Law

•  Green Olympics •  Low Carbon Economy

2010 & Beyond: Dominant Priority •  4 out of 7 strategic

emerging sector focus including New Energy, Energy Efficiency, Sustainable Transportation and New Materials

•  12th Five Year Plan

China has gone through 10 years of Cleantech policy development�

Source: Tsing Capital & CGTI Analysis Dec ‘10 �

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High-Growth Market Opportunity

Source: Tsing Capital & CGTI Analysis Dec ‘10�

Environment is Key Theme for China’s 12th Five Year Plan

Energy efficiency and environment protection is the #1 priority All seven emerging industries will contribute at least 8% of GDP by 2015

Next Generation IT EE and EP

Bio-Engineering

High-End Manufacturing New Energy New

Materials Alt Energy Vehicles*

Strategic Emerging Industries Highlights 4 out of 7 Cleantech

Related Sectors as Focus Areas by Central Government

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Aggressive Mandatory Targets for 12th FYP

Source: CGTI Analysis Mar ‘11 �

10 Targets set for China’s 12th Five-Year Plan (with 4 targets continued from 11th Five-Year Plan)�

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*Proprietary to Tsing Capital.�

Demonstrated Domain Expertise Across a Diverse Spectrum of China’s Clean Economy

§  The global pioneer and leader in environment and cleantech investment, Tsing is poised to seek superior returns for its investors environmentally, socially and financially in the following industry sectors:

Clean Economy and Our Focus

Fertilizer & Pesticides

Eco - Husbandry

Organic Foods

Green Substitutes

Nano-materials

Bio- degradables

EV's and Batteries

Public Transportation

Systems

CER

CCS

Waste Water

Air

Energy Generation

Energy Transmission

Electrical Appliances

Renewables

Cleaner Fossil

Tsing Capital

Sustainable Agriculture

New Materials

Sustainable Transportation

Carbon Reduction

Environment Protection

New Energy

Energy Efficiency

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Opportunity: China is the World’s Largest Clean Energy Investor

来源: Who’s Winning the Clean Energy Race 2010 – Pew Charitable Trust�

2010  China’s  Clean  Energy  Investment  Reached  $55  Billion

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Opportunity: China is the Largest Cleantech Market

#1 solar PV production (50% of global PV cells in

2009, 30GW installation by 2020)

#1 installed base of solar water heaters

(over 125 million m2)

#1 wind-power market (200GW

installation by 2020)

#1 hydro resources (540GW); #1 water demand

#1 auto production and market (13

million new vehicles in 2009)

#1 in CDM registration

#1 fresh water farming And many more

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Leader Niche

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

VC cleantech investment in China (USD in Millions)

Air Treatment

Sustainable Transportation

*Source: Tsing Capital.

Environment Protection Clean Economy Sustainable

Development

Solid Waste Treatment

Circular Economy

Water Treatment

Wind Solar

New Materials

Smart Grid

Energy Efficiency

Sustainable Agriculture

Mainstream Dominant

CEF 2002 (Fund I)

CEF 2004 (Fund II)

CEF III (Fund III)

CEF IV (Fund IV)

Tsing Positioned at the Forefront in the Development of Clean Economy Investment in China

Development of Cleantech Investment in China

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2009: Cleantech Becomes VC/PEs’ Top Focus in China

China VC/PEs’ Investment Focuses in the Next 1-2 Years, over taking traditional investment areas!Source: CVCA 2009 China PE Industry & Regulatory Environment Survey Report!

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2010 Q1: Cleantech Becomes VC/PEs’ Largest Investment Sector

Source: Zero2IPO, Apr ‘10

No.  2  by  Deals

No.  3  by  Exits

No.  1  by  Amount

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2010 1H Chinese vs. Non-Chinese Cleantech IPOs

2009 Q4 – 2010 Q2: CHINESE Cleantech Companies IPOs = $ 6.3 billion

2009 Q4 – 2010 Q2: NON-CHINESE Cleantech Companies IPOs = $ 2.0 billion

VS�

Source: Cleantech Group, Jul ‘10

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No.  1  brand  and  largest    

cleantech  team  in  China  

Strong  domain  experFse  

supported  by  Tsinghua  University

Largest  cleantech  deal  

flow

3  US  funds  +  1  RMB  fund

Proven  superior  track  

record

Since  2001  first  cleantech    fund  in  China  and  one  of  the  earliest  in  the  

world

Pioneer and Leader in China Clean Economy Investment

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Tsing Capital Has Grown Significantly Over the Past 9 Years

“A visionary leader in cleantech venture investment across Silicon Valley and China with extensive achievements”, Asia Venture Capital Journal�

“An evangelist in Chinese cleantech investment”, International Financing�

Tsing Capital has been selected by HBS as a case study

Benefits to TC: substantial contribution to management education, value-add to TC development and maintain valuable relations with

HBS network�

Dominant Player

Pioneer

Mainstream

CEF 2002 USD 13M

CEF 2004 USD 30M

CEF III USD 228M

Yiyun I RMB 400M

Leader

CEF IV USD 350M

Yiyun II RMB 1500M

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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n  “10 Companies to Shape the World in 2020”, Sustainable Excellence (2010) n  #1 of “Top 5 Cleantech VC Ranking”, CCIS / SSG Capital (2010) n  #1 of “Top 10 Greentech VC Firm”, ChinaVenture (2010) n  2008 “Cleantech Leader Award”, Cleantech Group (2009) n  2008 “Best Corporate Citizenship Growth”, 21st Century News Group (2008) n  2005 “Cleantech Pioneer Award”, Cleantech Group (2006) n  “2010 China Most Valuable Enterprises Award” No. 7, EZCapital (2010) n  “Top 20 Domestic VC Firms of the Year 2010”, Zero2IPO (2010) n  2010 Best Clean Tech Company (China), The New Economy Magazine (2010) n  2009 “Outstanding Corporate Citizen”, Ministry of Civil Affairs (2009) n  2009 “Top 50 GP’s in China”, China Limited Partners Association (2009) n  “Top 50 VC Firms of the Year”, Zero2IPO (2003-2010)

n  “40 China’s Most Powerful People 2009”, BusinessWeek (2010) n  “2010 China’s Best Venture Capitalist” No. 35, Forbes China (2010) n  “2010 Green Person of the Year”, Chinese Esquire (2010) n  Top 50 “China’s Best Venture Capitalist”, Forbes China (2009) n  “25 Promoters of Business Globalization”, Global Entrepreneur (2009) n  “25 Stars of China”, BusinessWeek/China (2009)

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Tsing Professionals and Organization Widely Recognized for Pioneering Venture Investments in the Cleantech Space in China

Exceptional Management and Resources

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Tsing Capital Portfolios Family

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EZCapital  /  Holyzone  “2010  China  Most  Valuable  Enterprises  Award” �

Portfolio Achievements 2010

ChinaVenture  CVAwards  Most  Promising  100  Firms �

SSG  Capital  –  China  Cleantech  Investment  Summit  “Top  5  Cleantech  Enterprise” �

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Don Ye: Cleaning Up “the World’s Factory” (Cover Story), PE Asia

Don  Ye:  “Cleaning  Up  the  World’s  Factory”  PE  Asia  (June  2011)  

“A  true  winner  cannot  shine  without  fierce  compeFFon.  In  a  one-­‐man  ba[le,  you  might  

be  first  but  you’re  also  last.”   �

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Don Ye: 40 “China’s Most Powerful People 2009”, BusinessWeek

 

Don  Ye:  40  “China’s  Most  Powerful  People  2009”  BusinessWeek  (Dec  2009)    Mr.   Don   Ye,   the   Managing   Partner,   was  selected  China’s  Most  Powerful  People  2009  by  BusinessWeek  for  his  pioneering  efforts  in  cleantech  venture  investment  in  China.  Other  notable  people  selected  include  President  Hu  Jintao,   Vice-­‐President   Xi   Jinping,   Premier  Wen   Jiabao,   Alibaba   Founder   and   CEO   Jack  Ma,   Lenovo   Group   Chairman   Liu   Chuanzhi  and  NBA  basketball  star  Yao  Ming.

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Tsing Capital in Media 2010

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Tsing Capital’s ESG and CSR Performance

Impact  by  CEF  Porjolio  Companies  by                      Environmental  and  Social  Categories  in  2009  

11,680,668 tons = CO2-e Reduced

176,894 GWh = Clean Energy Generated

US$ 22,589,825 = Invested in Cleantech R&D

30,046 = Green Jobs Created

US$ 26,035,355 = Taxes Paid to Government

US$ 91,774 = Spent on Community Development

Selected as one of “Ten Companies That Will Shape the World in

2020” in Aron Cramer’s new book

Sustainable Excellence: The Future of Business in a Fast-changing World (Rodale Books, 2010), written by

BSR’s CEO Aron Cramer Tsing Capital has “set a course for Chinese private investment that will

be vital to the sustainability of prosperity and growth both for

China and for the world as a whole”

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In-House Research Capability

Research  and  

Analysis  Team  

Investment  Team  

Market  Dynamics  

Internal    

Industry  Experts   Advisors  

Research  Insatutes  and  Associaaons  

Peers  and  Personal  Contacts  

External    

Samples    

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Tsinghua University Resources

Tsinghua Holdings

Listed / Non-listed Enterprises�

Tsing Capital

Industrial Bases�

Incubation Center

Science Park �

n  Exclusive asset management arm wholly owed by Tsinghua University

n  Almost 100 companies under management n  32B RMB revenue in 2008�

Tsinghua University

n  Internationally recognized, prestigious and influential university in China

n  Academic leaders in science and technology, comprising most members of China Academy of Science and China Academy of Engineering

n  Leading environmental, automotive, thermal, mechanical, chemical and civil engineering departments in China

n  71 research institutes/centers, 166 laboratories; Over 1,000 new technologies developed annually

n  Over 60,000 alumni world wide, all over various sectors

n  Strong government backing and extensive deal flow �

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Tsing Capital’s Value-add to Portfolios

Tsing  Capital

Training  by  Experts  e.g.  Finance,  Tax,  BD,  Market  Dynamics LP  Resources:  

-­‐   Project  Financing  -­‐  Strategic  Partners

Tsinghua  University  R&D  and  Policy-­‐

making  

Formulate  Business  Strategies  

Enhance  Publicity  and  Synergy  

amongst  Porjolios

Social  &  Environmental  System  

&  Compliance Strengthening  

Corporate  Governance AddiFonal  Financing

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World Class Investor Support

Tsing Capital is supported by many of the world’s most prominent organizations in the field of cleantech �

DFIs! Strategic MNCs!

Financial Institutions!

Family Offices!

China Environment Fund Series!

Government Induction

Funds!Listed

Companies!

Renowned Private

Enterprises!Strategic Investors!

Yiyun Cleantech Fund Series!

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Tsing Capital Fund Structure

CEF 2002

CEF 2004

CEF III

CEF IV Yiyun I! Yiyun II!

USD! RMB!

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For Further Information

Tsing Capital A 2302, SP Tower Tsinghua Science Park Beijing 100084 China Tel: 8610-8215 1160 Fax: 8610-8215 1150 www.tsingcapital.com�