Jerry Mao

Partner at Lunar Capital

In many ways, Lunar is a boutique, and has not had the privileges associated with buying a large firm over the past few years. We chose not to focus simply on fundraising and growing our AUM, but rather took on the challenge of differentiating through our unique focus on buying and building companies. This has set us apart from our peers, and earned us a reputation for leadership and for our focus on doing what is best for our companies.

We dedicate our entire firm to this focus, and believe that it increases the prospects for our companies to achieve consistent growth while minimizing risk. We seek to leverage control and being actively involved in daily operations to oversee execution and adjust our strategies when necessary. Through our experience, we have proven that we can build the teams and internal processes necessary to run efficient companies, and we constantly seek to maximize our efforts by bringing in more industry expertise, entrepreneurial energy and solutions to the table.

We believe that our investment performance and the results that our companies are delivering to shareholders demonstrate the value of this approach. Yeehoo has benefited tremendously from our efforts to build management, implement a strong corporate culture, and focus on key performance metrics. The Company is growing on almost all measures, and is outperforming its competitors.

Our ability to leverage our industry experience and Yeehoo's platform to drive more investments is a compelling aspect of our investment strategy. Through acquisition, spinoff, hiring, and capital injection, we have grown three other independent baby-related businesses out of Yeehoo, including PeekaBoo, Soho Baby, and I Pinco Pallino. Benefiting from the synergies we seek to create using Yeehoo's network in malls and department stores, all these businesses are growing rapidly. The success we have achieved has fast earned us the reputation as a go-to partner for any children's related businesses in China.

For some time, Lunar has built a team and processes devoted to driving value creation, when quite often there was a view that in China these efforts may not be rewarded. We believe that our investments in Yeehoo, Yonghong, Yunnan Forestry, PeekaBoo, Joysun and others are demonstrating that our approach, as common sense suggests, certainly will and does work. Leveraging control to be involved does, in fact, provide greater opportunity to create value for shareholders.

I am proud to be part of the team that has built a leadership position through focusing on a unique investment strategy, and believe that succession issues and growth challenges will create exponentially more opportunities for Lunar to make new investments over the decades to come.