china-cim-builder

china-cim-builder

Purpose

Draft A-share M&A CIM (Confidential Information Memorandum) for sell-side M&A processes — comprehensive, confidential company overviews for potential buyers.

Data Sources

Tier 0 — Wind (most comprehensive paid data)

• Coverage: A-shares/Hong Kong & US stocks/funds/indices/bonds/macro/research reports/analytics (44 tools)
• MCP service:wind-mcp(requires WIND_API_KEY key, starting with ak_ )
• Advantages: broadest whole-market coverage, most comprehensive data, includes research reports and quantitative analysis
• Key application:https://aifinmarket.wind.com.cn/#/home

Tier 1 — iFind (paid precise data) / AkShare MCP (Tier-2 free alternative)

get_stock_info(ticker)                        → Company profile
get_quote(ticker)                            → Valuation snapshot
get_historical_data(ticker)                  → Trading history
get_financials(ticker, "income", "annual")    → Historical P&L
get_financials(ticker, "balance", "annual")   → Historical BS
get_financials(ticker, "cashflow", "annual")  → Historical CF
get_industry_stocks(industry="...")            → Industry peers

Secondary Sources

• Cninfo — full annual reports, announcements
• Company official website — IR materials, presentations
• Brokerage research reports — existing research
• Qichacha / Tianyancha — corporate structure, subsidiaries

Workflow

Step 1: Define CIM Scope

CIM types:

Type	Use	Typical Length
Full CIM	Comprehensive sell-side	50-100 pages
Summary CIM	Initial teaser + overview	15-25 pages
Teaser	Anonymous preview	1-2 pages
Management presentation	Buyer meeting	20-40 slides

Step 2: Standard CIM Structure

A-share CIM sections:

一、交易概述 (Transaction Overview)
   - 交易背景
   - 交易结构
   - 时间表

二、公司概览 (Company Overview)
   - 公司简介
   - 发展历程
   - 业务模式
   - 组织结构
   - 管理层介绍

三、行业分析 (Industry Analysis)
   - 市场规模
   - 发展趋势
   - 竞争格局
   - 政策环境

四、经营分析 (Operating Analysis)
   - 业务拆分
   - 核心竞争优势
   - 客户结构
   - 渠道网络
   - 供应链

五、财务分析 (Financial Analysis)
   - 历史财务表现
   - 财务比率分析
   - 盈利质量
   - 现金流分析

六、估值分析 (Valuation Analysis)
   - 交易比较 (可比交易)
   - 交易倍数 (Trading comps)
   - DCF估值
   - 估值区间

七、风险因素 (Risk Factors)
   - 行业风险
   - 公司风险
   - 市场风险
   - 政策风险

八、附录 (Appendices)
   - 详细财务报表
   - 管理层简历
   - 术语表

Step 3: Gather Content

For each section:

1. Company overview: From Cninfo annual report + AkShare
2. Financials: From AkShare / Cninfo (3-5 years)
3. Industry: From research reports, industry data
4. Competitive position: Peer comparison via AkShare
5. Management: From annual report / company official website
6. Valuation: Built from comps + DCF

Step 4: Write the CIM

Writing guidelines:

• Professional, neutral tone
• Factual, avoid superlatives
• Balanced presentation (include risks)
• Chinese business English appropriate for cross-border
• Chinese terminology where buyers expect it

Key sections detail:

Company Overview

• History and evolution
• Current structure (corporate org chart)
• Core business lines with revenue contribution
• Geographic footprint
• Key milestones

Industry Analysis

• Market size and growth trajectory
• Supply/demand dynamics
• Regulatory framework
• Technology trends
• Entry barriers

Financial Analysis

• 5-year historical summary
• Key ratio trends
• Revenue bridge (growth decomposition)
• Margin analysis
• Balance sheet quality
• Cash flow profile

Valuation

• Comparable transactions (precedent deals)
• Trading comparables
• DCF summary
• Valuation range and rationale

Step 5: Quality Standards

CIM quality checklist:

Section	Requirement
Confidentiality	Prominent watermark and notice
Executive summary	Compelling, concise (1-2 pages)
Financials	Complete, consistent, sourced
Industry	Contextual, data-backed
Risks	Comprehensive, not minimized
Formatting	Professional, consistent
Graphics	Charts, tables, org charts

China-Specific Considerations

Regulatory Disclosures

Mandatory disclosure content:

• Related party transactions — flag prominently
• Guarantees to third parties
• Material litigation
• Share pledges
• Competitive businesses of related parties

Ownership Structure

Common in China CIMs:

• Ownership structure diagram
• Actual controller identification
• Concert party arrangements
• ESOP/scheme details
• Restricted shares, lock-up schedule

Industry-Specific Content

Industry	Special CIM Sections
Baijiu	Wholesale price history, channel inventory, brand matrix
Semiconductors	Capacity planning, technology roadmap, customer certification
New energy	Technology iteration, capacity planning, subsidy dependence
Pharmaceuticals	Pipeline portfolio, clinical data, centralized procurement risk
Real estate	Land reserve quality, sell-through rate, financing structure

Valuation Context

A-share premium context:

• A-share companies often trade at premium to H-shares
• Liquidity premium for listed targets
• Control premium expectations (20-40%)
• Privatization premium requirements (30-50%)

Quality Checks

Before finalizing:

• Confidentiality notices prominent
• All financial data sourced
• Industry context complete
• Risk factors comprehensive
• Valuation analysis sound
• Regulatory items flagged
• Formatting professional
• No identifying information leaked (if teaser phase)

Data Source Mode Switch: Set env var IFIND_DATA_SOURCE_MODE to control data source preference.

• ifind-only (strict): Use iFind only, error if unavailable
• ifind-fallback (default): iFind preferred, fallback to AkShare
• akshare-only: Skip iFind, use AkShare only
• wind-only: Wind only, error if unavailable
• wind-fallback: Wind first, fallback to iFind → AkShare