Since the beginning of 2023, overall primary market liquidity has contracted, with China and US VC/PE market fundraising and investment trends both declining: fundraising amounts decreased approximately 25% year-over-year; investment quantity and amount decreased 38% and 42% respectively year-over-year. Regarding exits, RMB market IPO numbers slightly rebounded but total fundraising amounts declined, while USD project exits remained difficult, mainly conducted through secondary share transfers.

Established institutions well-versed in the USD market have successively undergone splits, independence, rebranding, and generational transitions, adjusting strategies and actively embracing the local market. Domestic investment institutions that have remained dormant for years have become the group that still perseveres and remains active in the market. Bidding farewell to the internet startup-dominated era, investment targets have become increasingly dispersed across manufacturing and technology sectors, emerging from deeper within industrial chains.

Established in 2007, Harvest Capital has consistently adhered to value investment philosophy as a professional fund focused on China's consumer and service industries, and is one of the few value-creation funds in China with industrial investment capabilities that treats investment like real business. We will remain true to our original aspirations, continue forward, and work hand-in-hand with LPs to jointly support China's new era economic development.