Experience

Insightful Investing

Leveraging intellectual capital
Financial and operational experience
Deep knowledge of China's culture and industries

  • Company Name:Hunan Fengyue Environment Co. Ltd. (FYEC)
  • Industry:Environmental Services

  • Business Description:FYEC is based in Hunan Province and is a leader in recovering usable materials from the waste generated by mining. The company recovers mainly indium, zinc, lead, and other metals, including silver and copper. The company’s key suppliers are large mining companies in the Chinese mining industry.

Equity Stake

In 2012 we made an investment of US$ 4.84 million into in Hunan Fengyue Environment Co. Ltd. for a 4% stake of the business.

Market Opportunity

Metal recycling market is growing rapidly in recent years. According to the USGS, global secondary production of indium, a rare earth, increased significantly during the past several years and now accounted for a greater share of indium production than primary production. This trend is expected to continue in the future. MinorMetals.com reported on January 11, 2010 that 850 tons of indium was recycled in 2008, which represented approximately 60% of total global indium supply.

China controls over 50% of the world’s refined indium production. As the largest market player in the space, FYEC is well positioned to capitalize on this trend and lead the industry by recycling mining wastes to extract indium as well as other precious metals in China.

Value Creation

Our investment was used to increase capacity and upgrade the company’s technological process.
Partnering with the management team at FYEC, we developed the company with capital, strategic resources and operational expertise in order to accelerate its growth.
As part of our investment, we were able to secure the advisory board chairman seat and were actively engaged in shaping the direction of the business.

Exit

We exited in 2014 through a strategic sale to Shanghai Dingli Technology & Development, a public company listed on the Shanghai Stock Exchange.