Recently, three funds of China Soft Capital, Shenzhen Yangmei Jinling Industrial Investment Fund Co.,Ltd., Beijing Jinling China Soft Capital Hengyi Investment LLP and Beijing Jinling China Soft Capital Yangming Investment LLP successfully fulfilled the fixed increase of 2 billion RMB investment in Yangmei Chemical Co., Ltd. (600691.SH).

The total amount of this round of fund raising of non-public offering is around 2 billion RMB. After the non-public offering, the total asset and net asset of Yangmei Chemical is increased, the capital strength is obviously enhanced, the asset-liability ratio is reduced, the anti-risk ability and solvency are enhanced, and the overall financial situation is optimized and improved, which laid the foundation to further integrate industrial resources and stabilize capital operations.

Yangmei Chemical Co., Ltd. is a comprehensive energy enterprise, it has been listed in Forbes 500 for several years. In 2014, China Soft Capital and Yangmei Chemical established a strategic cooperative relationship and a fund focused on industrial integration as well as mergers and acquisitions, with a scale of 1.2 billion yuan in the first phase. After China Soft Capital provided an integrated merger and acquisition plan, Yangmei Chemical announced in August 2014 that it would make an increase of 2 billion RMB, and further move toward a leading enterprise in the field of new energy chemicals. From the declaration of the plan, due to the adjustment of the market and regulatory policies during the period, China Soft Capital has cooperated with Yangmei Chemical on many occasions to negotiate and optimize the plan with the regulatory authorities, higher-level units and market institutions. Finally, the plan was successfully achieved.

In the cooperation with Yangmei Chemical, China Soft Capital first proposed industrial structure adjustment, assisted Yangmei Chemical to focus on investment in new coal chemical industry and other industries that have synergy with Yangmei Chemical, and promoted its transformation from traditional agriculture and basic coal chemical industry to emerging industries of high energy efficiency and clean utilization of coal, such as coal-to-ethylene glycol and coal-to-olefins. In addition, China Soft Capital also used its own M&A investment experience to help Yangmei Chemical integrate a number of upstream and downstream industry-leading companies in the subdivisions through equity investment, which laid a solid foundation for its development.

China Soft Capital strives to become the leading technology and finance flagship, by focusing on national strategic emerging industries. 95% of its investment are focused on new generation information technology, high-end equipment manufacturing, energy conservation and environmental protection. It invested in new real economy enterprises such as China Soft Technology (002453.SZ), Beijing Kaiwen Education Technology Co.,Ltd.(002659.SZ), China High Speed Railway Technology Co.,Ltd.(000008.SZ), Focused Photonics Hangzhou Inc (300203.SZ), Shenzhen Megmeet Electrical Co.,Ltd.(002851.SZ) and BSOFT Limited.(300451.SZ), etc. Effective business interaction and industrial collaboration have been formed to help company achieve "new technologies" break through and build "new business models". The completion of this fixed increase in Yangmei Chemical is an important layout of China Soft Capital’s investment in the field of energy conservation and environmental protection. It is aimed to promote the transformation of Yangmei Chemical from traditional real economy to new real economy as well as its integration and development. Besides, the transformation of traditional energy company to green energy can contribute to the environmental protection.