On December 2, 2021, Loyal Valley Capital (LVC)’s portfolio company, Cloud Village (referred to as “the Company”), a leading online music streaming platform, successfully listed on the main board of the Hong Kong Stock Exchange under the stock code 9899.HK. As NetEase’s music streaming unit, Cloud Village has priced its IPO at HK$205 per share, with a total of 16 million shares issued. The Company has experienced robust growth after LVC’s investment in 2018. Its revenue increased by 345% from RMB 1.1 billion in 2018 to RMB 4.9 billion in 2020, while the gross margin increased significantly and reversed to a positive 0.4% by the first half of 2021. According to the Prospectus, the monthly active users of online music services have reached 184 million in the third quarter of 2021, of which the number of paid members is 27.5 million, representing a CAGR of 95% from 2018 to 2020. With the accelerated pace of development, the Company’s competitive advantages continued to emerge: 1.User group is younger and more educated: 89% of the users are born in the 90s, with over 60% of the users located in tier 1 and tier 2 cities; 2.Iconic playlists and personalized recommendation functions and better community atmosphere: Customized playlists and recommendation functions are major driving forces that attract and retain audiences. According to the Prospectus, the platform had almost 2.8 billion user-generated playlists and of every 10 music streams consumed on the platform, 2.8 came through the recommendation algorithm; over 48% of the users browse the comments section related to the songs and many comments became big hits not only on the platform itself, but went viral all over the internet, indicating a highly interactive user community; 3.Favorable industrial conditions and unique indie musician community help to build its own differentiated advantages: The Company has successively signed copyright agreements with three major record companies; A support system targeting indie musician is more diversified and has attracted more than 300 thousand musicians to register; The music library created by indie musicians contributes to 47% of the total number of plays on the platform. LVC committed a strategic investment in 2018 and we stand firm that the Company has the ability to continuously grow and improve the community from then till now. ”Loyal Valley&#x27;s investment focused on consumption driven by young generation and we captured the competitive differentiation of Cloud Village through deep thematic research,” said Ms. Lisa Ye, Partner of LVC, “After our investment in 2018, LVC has continuously offered various business cooperation within and beyond portfolio companies and provided research reference for the Company&#x27;s strategic development. Cloud Village has established a large sticky user community within the 90s and 00s generation with interesting interactive content and social feature. The personalized recommendation feature based on AI technology further strengthens customer stickiness. The Company also established a long-term competitive advantage by ensuring a steady stream of high-quality music from indie musicians and building a healthy music creation and distribution ecosystem. You can always enjoy the accompany, explore all the possibilities, and be inspired and intrigued by the Cloud.” LVC is proud to partner with Cloud Village and looking forward to more high-quality music content brought by the Company. LVC will also continue to support the Company in the journey of creating a better music experience for the whole society.

On December 2, 2021, Loyal Valley Capital (LVC)’s portfolio company, Cloud Village (referred to as “the Company”), a leading online music streaming platform, successfully listed on the main board of the Hong Kong Stock Exchange under the stock code 9899.HK. As NetEase’s music streaming unit, Cloud Village has priced its IPO at HK$205 per share, with a total of 16 million shares issued. 

                                                                                        LVC-backed Cloud Village Lists on the Hong Kong Stock Exchange

Education charity initiative is part of an ongoing CSR project, backed by Shanghai-based private equity firm Loyal Valley Capital Shanghai, 29 June 2021: Chinese private equity firm <a href="https://www.loyalvalleycapital.com/en/" target="_blank">Loyal Valley Capital</a> (LVC) and the Bilingual School Affiliated to East China Normal University have unveiled their joint sponsorship of the Loyal Valley Bilingual Kindergarten in Wuyishan Town, in Jiangxi Province, China. This charitable initiative forms part of the &quot;Children of the Valley&quot; CSR project, under which, in December 2017, the Loyal Valley Charity Fund sponsored the Taiyuan She Minority Zhengxin School in Qianshan County.<img class="ql-image" src="https://static.loyalvalleycapital.com/upload/images/1653019579955.jpg"/> The Loyal Valley Capital Charity Fund is providing the Bilingual Kindergarten with computer software and hardware to bring them up to international standards. The school incorporates the latest in environmental facilities and classroom design, while the teaching staff has adopted rich and diverse teaching methods, striving to become local benchmarks for comprehensive teaching quality and professionalism.<img class="ql-image" src="https://static.loyalvalleycapital.com/upload/images/1653019596134.jpg"/> The “Children of the Valley” project focuses on the remote, mountainous areas of the central and western regions of China, building and improving infrastructure to empower students and teachers in preschool and beyond. 60 percent of schoolchildren in these rural regions drop out of school before high school and one of the principal causes is the wage disparity with urban regions, where the average income is 2.5 times higher. China’s rural-urban education gap falls directly in line with the United Nations Sustainable Development Goals, which target unequal education and the disparaging effects of poverty. The U.N. is working with China to end wealth disparities in education and promote inclusivity in classrooms. Loyal Valley Capital became a signatory to the United Nations Principles for Responsible Investment (UNPRI) in 2020, as a demonstration of its commitment to responsible investing, which has seen ESG factors taken into account in its management and operations, including pan-firm training and an ESG handbook. Loyal Valley Capital Founder and CEO Andy Lin said: “We greatly appreciate the support we have received from local government and from our partners East China Normal University Affiliated Bilingual School to enable this project to improve the education chances of young people here in Qianshan County. The mission at Loyal Valley Capital has always been to invest in and foster leaders that make the world a better place and we look forward to making the further investment as part of our Children of the Valley project.” About Loyal Valley Capital: Loyal Valley Capital (“LVC”) is a thematic, research-oriented private equity firm that has been a “partner of choice” for China’s most promising companies. LVC has left a mark in leading players such as Bytedance, one of the world’s most valuable startup and owner of Tik Tok, Didi, one of the world’s largest ride-hailing platform, Bilibli, the NYSE-listed streaming platform, InnoCare, the finest immuno-oncology provider in China, and many market leaders within the region. Loyal Valley Capital believes that fundamental analysis and proprietary deep thematic research are the essences to our successful, long-term, and bottom-up investment approach. LVC prides itself on being a trusted influential shareholder, relentlessly focused on active value creation and accelerating growth via strategic initiatives through its extensive network of business leaders in China. Loyal Valley Capital manages over US$2.1 billion in assets, with a targeted focus within the Consumer, Healthcare, and Advanced Manufacturing sectors on behalf of our global client base. We are shareholders of Bytedance, Bilibili, Didi, Perfect Diary, NetEase Music, Junshi, InnoCare, Akeso, SUPCON, and many other top-tier companies in China. Loyal Valley Capital was founded in 2015 by Andy Lin, the founder of China Universal Asset Management (“CUAM”), the largest asset management firm in China. CUAM played a pivotal role in the growth of China’s capital market, as the firm left a mark in nearly all of China’s most well-known companies including Kweichow Moutai, Midea, Gree, Yunnan Baiyao, Tasly, Humanwell, Goertek, and more, during Mr. Lin’s 11-year tenure. As of Q1 2020, CUAM’s total AUM has amounted to approximately US$ 122 billion. Both CUAM and LVC were established upon the foundation of in-depth research and fundamental analysis.？ In 2020, Loyal Valley Capital was honorably awarded the “Top 10 Most Influential Private Equity Firms in China”, “Top 20 Healthcare Investor in China”, “Top 10 Innovative Drug Investor in China”, and “Top 20 Consumer Investor in China” by 36kr. About Loyal Valley Charity Fund: Loyal Valley Capital Charity Fund was founded by the Loyal Valley Capital team in June 2017. It is a legal charity registered by the Shanghai Municipal Civil Affairs Bureau. LVC is a？public welfare pioneer in the asset management industry, which has a track record of CSR investment. The LVC Charity Fund has successfully built two &quot;Loyal Valley schools&quot; to benefit thousands of students. Loyal Valley Capital plans to continue to cooperate with China&#x27;s best entrepreneurs and its invested companies, to form a close public welfare ecology, with an ethos of responsibility, sustainability, long-term focus, and altruism.

Shanghai, 29 June 2021: Chinese private equity firm Loyal Valley Capital (LVC) and the Bilingual School Affiliated to East China Normal University have unveiled their joint sponsorship of the Loyal Valley Bilingual Kindergarten in Wuyishan Town, in Jiangxi Province, China. This charitable initiative forms part of the "Children of the Valley" CSR project, under which, in December 2017, the Loyal Valley Charity Fund sponsored the Taiyuan She Minority Zhengxin School in Qianshan County. 

Loyal Valley Capital Charity Fund Unveils Bilingual School In Jiangxi Province 

On June 18th, Loyal Valley Capital (LVC)’s portfolio company CARsgen Therapeutics (2171. HK), a global leader fighting against cancer with CAR-T therapy, was successfully listed on the main board of the Hong Kong Stock Exchange and issued its initial public offering priced at HK $32.8 per share, with a total of 94.747 million shares issued. Loyal Valley Capital lead the company’s Series C financing with a total of US$186 million raised in September 2020. CAR-T (also known as Chimeric Antigen Receptor) is a cell therapy technology specialized for T cell immunotherapy against tumors. T cells are a type of lymphocytes in our bloodstream. They are responsible to protect and detect tumor cells hidden within the human body. Based on recent clinical treatment performances, CAR-T has been recognized to have the most potential in completely curing cancer. This was demonstrated on the first patient who had received CAR-T treatment. Emily, the first American patient, who was diagnosed with leukemia, received CAR-T treatment and as a result, she has demonstrated the possibility of surviving cancer-free for more than 9 years. Solid tumors accounts for more than 95% of the total tumor incidences. However, the current five CAR-T cell therapies that have received NDA approval are all targeting hematological tumors. CAR-T treatments for solid tumors still face challenges, such as unfavorable tumor microenvironment, difficulty to identify solid tumor-related antigens and target antigen heterogeneity. In response to this concern, CARsgen adopts a differentiated competitive strategy to improve the safety and effectiveness of its own products targeting against popular hematological tumors. They are also, actively exploring potential &quot;First-in-Class&quot; targets in the field of solid tumors, finding an alternative way to overcome the challenges which the industry is currently facing. In its existing independent research and developed pipeline (except for CT053, CT032, KJ-C2111), the remaining 7 CAR-T products are for the treatment of solid tumors, mainly include CT041 and CT011. Carsgen’s CT041 is the only CAR-T products that is targeting Claudin 18.2, which has obtained IND approval in the world. It is also used to treat solid tumors such as gastric cancer and pancreatic cancer. CT011 is a potential first-in-class GPC3 CAR-T products in the world, and it is currently in clinical phase I in China. As the lead investor in Carsgen’s C round of financing, Loyal Valley Capital has tracked Carsgen for a long time and took half a year to conduct due diligence on the company’s core products, commercialization capability and management team. LVC has used its ecosystem in the medical industry to continuously track the clinical data of core products and maintain close communication with core PIs (principal investigators). In the end, the breakthrough efficacy and the safety advantages of the core products were verified. This reflects LVC’s methodology in its investment, which is to take “huge and unmet clinical needs” as the inspirational starting point in our investment within this industry as well as for our in-depth research. Moreover, the entrepreneurial qualities demonstrated by Dr. Li Zonghai, Co-Founder and CEO of CARsgen Therapeutics, during his entrepreneurial period, was also what drove LVC to lead its C round investment. In regards to the company’s listing, Dr. Li Zonghai said: &quot;IPO is an important step for us to further internationalize and accelerate commercialization. Looking back on our past entrepreneurial history, I am grateful to LVC for its trust and support. I hope LVC can continue to use its ecosystem, strategic positioning,？deep industrial insights in the future. Most importantly, take advantage of the circle, and support CARsgen, CAR-T therapy, and benefit more patients.&quot; Mr. Roy Xie, Partner of LVC, said: &quot;Congratulations to CARsgen Therapeutics for its successful listing! We look forward to what the company’s innovative differentiated cell therapies may bring to its cancer patients worldwide in the future. LVC will continue to support the company’s global R&amp;D research. CARsgen is a globally competitive cell therapy company, and it has created an excellent pipeline with both First-in-Class and Best-in-Class products, especially in the field of solid tumors. Dr. Zonghai Li, the company&#x27;s founder, along with his management team, have a strong strategic layout, innovative and execution ability, as well as a brilliant team spirit. With his support, CARsgen has made a lot of breakthroughs in the field of cell therapy and brought significant clinical benefits. We sincerely wish that CARsgen Therapeutics will continue to accelerate clinical research and development through its IPO. We hope that the products would be launched quickly so as to benefit more patients.

On June 18th, Loyal Valley Capital (LVC)’s portfolio company CARsgen Therapeutics (2171. HK), a global leader fighting against cancer with CAR-T therapy, was successfully listed on the main board of the Hong Kong Stock Exchange and issued its initial public offering priced at HK $32.8 per share, with a total of 94.747 million shares issued. Loyal Valley Capital lead the company’s Series C financing with a total of US$186 million raised in September 2020.

LVC-Backed CARsgen Therapeutics Has Successfully Listed on the Hong Kong Stocks Exchange and Made a Breakthrough in Cell Therapy 

Leading designer collectibles maker Pop Mart becomes latest fast-growth Chinese company to stage IPO after backing from Shanghai-based private equity firm Loyal Valley Capital Shanghai, 11 Dec 2020: Private equity firm <a href="https://www.loyalvalleycapital.com/en/" target="_blank">Loyal Valley Capital</a> announces that the <a href="https://www.popmart.com/" target="_blank">Pop Mart</a> Initial Public Offering on the Hong Kong Stock Exchange (HKEX) has become the eleventh IPO among its investment portfolio in 2020. Loyal Valley Capital has invested a total of US$87.5m in Pop Mart and led its most recent funding round in early 2020, alongside other investors such as Sequoia Capital, which saw the company raise over US$100m. The tally of 11 IPOs represents a significant achievement for Loyal Valley Capital, which was founded in 2015 by Andy Lin, previously CEO and Founder of China Universal Asset Management. Of the 63 companies in the Loyal Valley Capital portfolio, across verticals of consumer&#x2F;TMT, healthcare and advanced manufacturing, the firm now expects to progress a further 12 through to IPO in 2021. Aside from Pop Mart, this year’s IPOs have included cosmetics unicorn <a href="https://www.perfectdiary.com/" target="_blank">Perfect Diary</a>, which launched on the New York Stock Exchange, healthcare specialists <a href="https://www.innocarepharma.com/" target="_blank">InnoCare</a> and <a href="https://www.akesobio.com/en/" target="_blank">Akeso</a>, which had their IPOs in Hong Kong, and industrial automation control manufacturer, <a href="http://en.supcon.com/" target="_blank">SUPCON,</a> which listed on Shanghai&#x27;s Stock Exchange STAR Market. The consumer team at Loyal Valley Capital selected Pop Mart for investment due to its position as a market leader in a fast-expanding sector. China has a massive consumer market of 1.4 billion people and the 400 million growing, affluent middle class provides a huge potential customer base with strong purchasing power and demand for designer collectibles. Sales of pop toys and collectibles reached 20.7 billion yuan in China last year, according to a report by Frost &amp; Sullivan. Loyal Valley Capital Partner Lisa Ye, who heads the Consumer Team, said: “We focus on identifying companies like Pop Mart that are experiencing strategic inflection points, with sustained momentum, before they are widely available to the market. Pop Mart has built a commercial closed-loop process from IP incubation to factory production, from online and offline sales to content communities, which has enabled high margins and sets it up for a successful IPO.” Andy Lin, CEO and Founding Partner at Loyal Valley Capital, commented: “This strong 2020 record of progressing portfolio companies to IPO is a result of our long-term deep thematic research and ability to identify potential market leaders through our rigorous investment process and experienced team at Loyal Valley Capital. We have consistently generated stable strong returns for our global client base, and we are looking forward to the upcoming IPOs in 2021.”

Leading designer collectibles maker Pop Mart becomes latest fast-growth Chinese company to stage IPO after backing from Shanghai-based private equity firm Loyal Valley Capital

Loyal Valley Capital Achieves 11 IPOs In 2020 With Pop Mart Listing In Hong Kong

Loyal Valley Capital’s portfolio company Junshi Biosciences (688180.SH), the first A&#x2F;H dual-listed biotech share in China, has made its strong debut on Shanghai’s Sci-Tech innovation board (STAR Market) on July 15, 2020. With a listing price of RMB55.5, Junshi has raised RMB4.83 billion ($691 million) in its IPO. The stock closed at RMB151, with a 172% premium to its IPO price. The total market value of Junshi has exceeded 150 billion as of the close of the first day. Founded in 2012, Junshi was listed in Hong Kong two years ago and the market value has doubled 2.7 times since. The company was previously traded on the National Equities Exchange &amp; Quotations (NEEQ), also known as the New Third Board, but left in favor of the STAR Market. Often affectionately referred to as the ‘little giant of innovative drug’ by Chinese media, Junshi is the industry leader in self-developed PD-1 inhibitor, a class of drugs that has？been proven effective in cancer treatment. The company’s revenue was RMB775 million in 2019, rendering a 265 times increase compared to 2018. consolidating a promising outlook for investors. As an early investor, Loyal Valley Capital’s story with Junshi could be traced back to 2016. Over the years, LVC has participated in multiple rounds of financing for Junshi, which results in our position as Junshi’s largest external investor, with a 9.77% stake in the company’s onshore entity prior to the offering. Junshi’s performance in the capital markets is the perfect testimony of Loyal Valley’s successful investment philosophy – “long-termism, focus &amp; altruism”. Following the mission statement of “investing in extraordinary enterprises of tomorrow”, LVC has been with Junshi through hardships to the stars, devoting knowledge and resources in terms of corporate strategy, product selection and capital market financing.？ Despite Junshi’s three-time touchdown in the capital market, in Andy Lin&#x27;s view, the company is still at its early stage with huge potential unlocked. &quot;China is the second-largest pharmaceutical market in the world. There are about 20 pharmaceutical giants in the United States with a market value over $100 billion and I believe that in the near future, world-class Chinese pharmaceutical companies on par with its U.S. counterparts would emerge.&quot;

Loyal Valley Capital’s portfolio company Junshi Biosciences (688180.SH), the first A/H dual-listed biotech share in China, has made its strong debut on Shanghai’s ？Sci-Tech innovation board (STAR Market) on July 15, 2020.

LVC-backed Junshi Biosciences makes strong debut on Star Market

Shanghai, China, 2 December, 2019 – Loyal Valley Capital (“LVC”) today announced that Loyal Valley Capital Advantage Fund II LP (“LVC USD Fund II”), held a final close at $465 million in capital commitments, including approximately $25 million from the general partner. Demand from investors was strong, with LVC USD Fund II oversubscribed at its hard cap of $440 million. It is LVC’s second US dollar-denominated fund, after closing of Loyal Valley Capital Advantage Fund I LP (“LVC USD Fund I”) at $390 million in 2018. LVC USD Fund II will continue to follow LVC’s disciplined “value investing” strategy that has been successfully applied by LVC since its inception in 2015. LVC USD Fund II will invest in middle-market companies positioned to benefit from secular industry transformation in China. It will continue to focus on LVC’s core areas of domain expertise: New Consumer (Media &amp; Entertainment and Education), Healthcare, Specialty Industrials and Financial Services. The investors in Fund II are a geographically diversified group of long-term oriented institutional investors. They comprise sovereign wealth funds, fund of funds managers, private banks and family offices from across the Americas, Europe and Asia. All institutional investors from LVC USD Fund I have reinvested into this second fund. “We appreciate the extraordinary support from our existing limited partners and the expansion of our investor base amongst leading global institutions. The focus of this group allowed us to move quickly to close Fund II this year. We believe that our truly local, grassroots team and strong entrepreneurial culture focused on continuous improvement will continue to deliver superior performance for our investors.” said Andy Lin, Partner &amp; Founder of LVC. Eaton Partners, a Stifel Company, acted as the exclusive global placement agent for LVC USD Fund II. Kirkland &amp; Ellis LLP provided legal counsel. About Loyal Valley Capital LVC (<a href="https://www.loyalvalleycapital.com/en" target="_blank">https:&#x2F;&#x2F;www.loyalvalleycapital.com&#x2F;en&#x2F;</a>) is a leading private equity firm that has actively been investing in high-quality middle-market companies in China since 2015. LVC is an independent, partner-owned firm with an extensive network spanning public and private companies across China with preferred access to C-level professionals and the most attractive deals in the country. LVC currently manages three private equity funds with assets under management of over $1.6 billion. LVC has a growing team of 50 professionals based in Shanghai, China.

Shanghai, China, 2 December, 2019 – Loyal Valley Capital (“LVC”) today announced that Loyal Valley Capital Advantage Fund II LP (“LVC USD Fund II”), held a final close at $465 million in capital commitments, including approximately $25 million from the general partner. Demand from investors was strong, with LVC USD Fund II oversubscribed at its hard cap of $440 million. It is LVC’s second US dollar-denominated fund, after closing of Loyal Valley Capital Advantage Fund I LP (“LVC USD Fund I”) at $390 million in 2018.