china-ic-memo

china-ic-memo

Purpose

Draft A-Share Investment Committee Memorandum (IC Memo) — structured decision documents for investment committee reviews.

Data Sources

Primary: iFind MCP (Tier-1 paid) / AkShare MCP (Tier-2 free alternative)

get_quote(ticker)                        → Valuation context
get_financials(ticker, "income")         → Financials
get_industry_stocks(industry="...")       → Peer comparables

Secondary Sources

CNINFO — company filings
Wind / Choice — comprehensive data
Brokerage research reports — existing research
Due diligence report — DD findings

Workflow

Step 1: Structure the Memo

Standard A-share IC memo format:

【机密】投资委员会备忘录

项目名称：[Target Company]
交易类型：[Investment type: 股权投资 / 并购 / 老股转让]
推荐团队：[Team name]
日期：[Date]

═══════════════════════════════════════════

一、投资建议 (Recommendation)
   [One-paragraph summary]
   建议：[批准 / 有条件批准 / 否决]
   投资金额：[XX亿]
   目标股权：[XX%]
   目标价格：[¥XX / EV XX亿]

二、交易概述 (Transaction Overview)
   - 标的公司：[Name], [Industry], [Listing status]
   - 交易结构：[Structure description]
   - 预计交割：[Date]
   - 投资回报预期：[Xx% IRR, Xx MOIC]

三、投资逻辑 (Investment Thesis)
   [3-5 bullet points]
   1. [Key driver 1]
   2. [Key driver 2]
   3. [Key driver 3]

四、市场与行业分析 (Market & Industry)
   - 市场规模：[XX亿], 增速 [X%]
   - 竞争格局：[Description]
   - 政策环境：[Policy context]
   - 趋势判断：[Secular trends]

五、目标公司分析 (Target Analysis)
   - 商业模式：[Description]
   - 竞争优势：[Bullets]
   - 管理团队：[Assessment]
   - 财务表现：[Summary]

六、估值分析 (Valuation)
   - 交易估值：[XX亿 / Xx PE]
   - 可比交易：[Comparable M&A]
   - DCF估值：[XX亿]
   - 估值区间：[XX-XX亿]
   - Upside/Downside：[X% / X%]

七、风险因素 (Risk Factors)
   - [Risk 1]: [Mitigation]
   - [Risk 2]: [Mitigation]
   - [Risk 3]: [Mitigation]

八、交易结构 (Transaction Structure)
   - 投资金额：[XX亿]
   - 股权比例：[XX%]
   - 董事会席位：[X席]
   - 业绩承诺：[如有]
   - 反稀释条款：[Description]
   - 退出安排：[IPO / 并购 / 回购]

九、退出策略 (Exit Strategy)
   - 主要路径：[A股IPO / 并购 / 老股转让]
   - 预计时间：[3-5年]
   - 目标回报：[Xx IRR]
   - 备选方案：[Alternative exits]

十、结论与建议 (Conclusion)
   [Summary and committee ask]
   需要委员会决策的事项：
   1. [Decision item 1]
   2. [Decision item 2]

Step 2: Key Sections Detail

Investment Thesis

Thesis quality check:

Is it specific (not generic)?
Are the 2-3 key drivers clear?
Is there a clear "why now"?
Is the return potential quantified?

Valuation

China-specific valuation considerations:

A-share premium context
Comparable transactions (precedent deals)
Control premium (20-40% typical)
Liquidity discount for restricted shares
DCF with China-specific assumptions

Risk Factors

Standard A-share IC risk framework:

Risk Category	Specific Risks
Market risk	A-share volatility, price limits, retail sentiment
Policy risk	Regulatory changes, industry policy
Corporate governance	Related-party transactions, shareholder pledges, horizontal competition
Industry risk	Overcapacity, technological iteration, worsening competition
Liquidity risk	Lock-up expiry pressure, insufficient trading volume
Exit risk	IPO window, M&A buyer interest
Currency risk	For USD-denominated funds

Exit Strategy

A-share exit analysis:

Route	Timeline	Probability	Expected Multiple
A-share IPO	3-5 years	Medium	3-8x
M&A exit	2-4 years	High	2-4x
Secondary share transfer	2-4 years	Medium	1.5-3x
S fund	1-3 years	Low-Medium	0.8-1.5x NAV

Step 3: Decision Framework

Investment committee decision criteria:

Criterion	Weight	Assessment
Clarity of investment thesis	20%	Strong / Adequate / Weak
Team quality	20%	Strong / Adequate / Weak
Market attractiveness	15%	Large / Medium / Small
Competitive moat	15%	High / Medium / Low
Financial performance	15%	Strong / Adequate / Weak
Valuation reasonableness	10%	Cheap / Fair / Expensive
Risk controllability	5%	Low / Medium / High

Overall recommendation:

Strong recommend: >80% criteria met
Recommend: 60-80% met
Conditional: 40-60% met, conditions clear
Not recommend: <40% met or red flags

Step 4: Conditions & Follow-up

If conditional approval:

Condition	Owner	Deadline
e.g., management due diligence confirmed	[Name]	[Date]
e.g., valuation cap confirmed	[Name]	[Date]
e.g., regulatory feasibility confirmed	[Name]	[Date]

China-Specific Considerations

Decision-Making Context

Factor	China Context
Decision speed	Can be faster or slower depending on SOE vs private
Approval layers	Multiple for large deals (>100 million threshold)
Policy alignment	Industrial policy alignment important
Relationship	Relationships (guanxi) influences deal flow and terms
Documentation	Detailed Chinese documentation required

Common IC Discussion Points

Exit certainty
Valuation negotiation room
Earnout practicality
Board representation
Anti-dilution protection
Liquidation preference
Regulatory approval risk

Red Flags for IC

Red Flag	Typical IC Reaction
Actual controller unclear	Require ownership clarification
High proportion of related-party transactions	Require ring-fencing
Large pledges	Require investigation
Going-concern doubts	Require CF projections review
Valuation significantly higher than peers	Require premium justification
Exit path unclear	Require exit analysis
Management instability	Require retention analysis

Quality Checks

Before presenting:

Memo structure complete
Investment thesis compelling
Valuation analysis thorough
Risks comprehensively identified
Mitigations documented
Exit strategy clear
Conditions specific and measurable
Recommendation supported by analysis

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