Concepts & Topics

Investment Process

Investment Scheme Implementation Process

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When business operators make planned or expansive investments, they have a considerable understanding of the industry ecosystem and product development. If you lack sufficient experience in the industry you wish to invest in, we strongly recommend that you follow a rationally planned implementation process, while maintaining a firm grasp of timeliness during investment processes to avoid missed business opportunities. This helps avoid wrong judgments and planning, which could result in setbacks or failure of the invested business.







Formation of investment schemes
I. Business management goals
1. Business growth
   Capital increase
   Expansion of sales regions
   Equipment updates/technology upgrades
2. Profit maximization
   Achievement of economies of scale
   Increase of production efficiency
   Enhancement of management effectiveness
3. Market share
   Increase of market share
   Extension of product lines
   Expansion of production capacities
4. Other
   Plant relocation
   Social responsibility
   National economy and people’s livelihood
   Business philosophy

II. Strategic conduct (active/passive)
1. Innovation activities
   New products
   New technologies (process/product)
   New uses
2. Capacity expansion
   Current site/domestic/overseas
3. Vertical integration/division of labor
   Current site/domestic/overseas
4. Horizontal integration/division of labor
   Current site/domestic/overseas
5. Diversification
   Current site/domestic/overseas

III. Investment model
   1.Capital increase/debt financing
   2.Startups
   3.Merger/acquisition

Cautious Management of the Investment Process
I. Tackling and consideration of investment issues (investment concepts, confirmation of investment goals)
II. Identification and assessment of investment opportunities
III. Presentation of a preliminary investment scheme
IV. Feasibility research
1. Preliminary feasibility research
   Identification of feasible items and investment directions based on investment opportunity research, follow-up investigation of raw material markets,
   and testing and assessment of technologies
2. Investment feasibility analysis
   Qualitative analysis of scheme feasibility on the basis of comprehensive analysis, calculations, comparisons, and valid arguments; selection of optimal
   plans; and qualitative conclusion of investment scheme feasibility. This shall include the following:
      a. Market feasibility analysis
      b. Technology and manufacturing feasibility analysis
      c. Financial feasibility analysis
      d. Investment efficiency analysis
      e. Risk analysis
V. Investment plan compilation (business plan)
VI. Investment scheme execution
1. Drafting of action plans and schedules
2. Capital-raising measures and budget control
3. Execution of investment schemes and plan revision
4. Follow-up evaluation of progress and results

If business operators are not familiar with invested industries and products, the selection of a turnkey contractor and a professional and trustworthy partner is the best and most effective way to ensure business growth.

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