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About Sancus
Sancus Group is a holding company that has diverse businesses, ranging from information technology and media, environment projects, and energy cars, cemeteries and natural resources. We work closely with entrepreneurs, venture capitalists, private equity and other professionals' bodies in order to grasp global business opportunities. Our major focus is the flourishing China market where we have strong business relationships in the region.
The business model of the Sancus Group has been built on the following three principles:
- Focus on Strategic Sectors: We only invest in sectors that we
consider strategic, and treat deals in other sectors which come our way only
opportunistically. But once we take up a deal we fully devote our resources
and attention to it.
Currently we focus on five sectors which we consider strategic:
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1. IT/Media: With over 600 million mobile users, over 200
million Internet users and a TV audience of over 1 billion, the
Chinese media and telecoms market is the world's s largest and with its 1.3
billion population still allows a lot of room for further expansion. We
have strong relationships in the media sector and Sancus Group Chairman
Carson Wen has in his legal practice represented leading media companies in
their IPOs and M&A activities and has extensive regulatory and deal
structuring experience in this sector.
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2. Environment/CDM: Climate change and environmental
pollution is one of the biggest challenges that mankind faces and as such we
see our work in this sector as a mission. Given the global demand for green
technology and renewable energy we also see this sector as providing a
strategic opportunity. Our projects in this field include biomass to
biofuel and co-generation facilities, water treatment, re-cycling and
supply, photovoltaic panels and accessories, and CDM compliant projects.
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3. New Energy Cars: In his Government Work Report
delivered at the plenary session of the National Peoples' Congress in March,
2008 Premier Wen Jiabao listed new energy cars as one of the industries
whose development is high on the national agenda. Sancus Group has since
late 2007 been putting together a group of companies to engage in the supply
of re-chargeable lithium batteries, electric vehicles, special purpose
vehicles and environmentally friendly autoparts. The US$230 million
investment by Warren Buffett in late September, 2008 in Chinese batteries
and cars manufacturer BYD is encouraging news for us as this is an
acknowledgement by the investment guru in the strategic importance of this
sector.
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4. Mining: We take the view that the prices of precious
metals and other commodities willl continue to rise and as such mining
resources are of significant value. We are involved in the development of
precious metal mines in Guangxi Province and raising funds for such mines in
the international capital markets. It is also our plan that the listed
vehicles should look for investment opportunities in overseas mining assets
as such resources are of substantial value to China.
--- 5. Cemeteries: About 8 million people die in China every
year and there are about 40,000 deaths in Hong Kong annually. Neither Hong
Kong nor Mainland China is devoting more land for the building of memorial
parks and columbaria and as such those facilities become resources in short
supply. With the multiple children policy of the Chinese
Government adopted in the 1950s and ending only with the adoption of the One
Child Policy in the mid-1970s, the demand for funeral services and
cemeteries in China is set to increase in the very near future as the
Chinese babyboomers are now in their 50s. The business is not affected by
economic cycles.
We are also considering opportunities to invest in old age homes, the demand
for which is significant given the aging population and the limited home
capacity for caring for the elderly given the inverted family triangle
created by the adoption of the One Child Policy in the 1970s.
- Partnership: At Sancus Group we work with partners in every one of
our deal, mostly with those with special industry knowledge and background.
We also have a religious belief in working with our partners fairly,
transparently and equitably.
- Exit: We plan our exit at the beginning of each deal, in most cases
through the capital markets. This emphasis on planned exit is a
manifestation of our principled approach to deal-making and does not in any
way undermine our commitment to every deal that we elect to do. Once we
decide to take up a deal we fully commit our attention and resources to the
transaction.
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