15 Nov 2024 – At precisely 9:30am in the morning, Dr. Zhou Min, CEO of CM Venture, with Guofu Hydrogen CEO Wang Kai, rang the ceremonial gong together in Zhangjiagang, China, Guofu Hydrogen’s home city.

At exactly the same time, Guofu Hydrogen’s Chairman Wu Pinfang, also rang the gong from all the way in Hong Kong’s HKEX’s stage.

The new stock symbol ‘2582’ started running on the HKEX, with Guofo’s IPO price quickly rising above its initial offer price.

Guofu Hydrogen, a leading hydrogen equipment full-industry-chain solutions provider in China, has officially marked its entry into the Hong Kong stock market. This was a truly momentous occasion for CM Venture itself, portfolio company Guofu Hydrogen and CM Venture’s LPs. 

Guofu Hydrogen has consistently held the number one market share in China for 5 consecutive years in hydrogen production, storage, transportation, fueling, and utilization equipment manufacturing. They plan to issue 6 million shares globally, with an indicative offering price of HKD 65 per share. Proceeds will be used to expand production capacity and enhance R&D capabilities. 

On its first trading day, Guofu’s stock price surged to 86 HKD by 9:10 am, achieving a remarkable 32.31% increase.

As the second-largest shareholder with a 6.38% stake, CM Venture will reap nearly 6x returns on its initial investment, with an IRR exceeding 40%, consistent with predictions made during the Series A round. This milestone underscores CM Venture’s in-depth foresight and expertise in early-stage deep-tech investments.

‘Predict, Select, Build, Partner’ – our proven investment approach
Since our founding, we have adhered to our core philosophy: investing in early-stage technology projects with strong growth potential. Our 4-step approach relies on meticulous research and well-defined logic to guide investment decisions. ‘Predict’, which looks at market fundmentals vs technology readiness, ‘Select’, which is based on 6 strict criteria for when investing in startups, ‘Build’, where we help our startups grow with support with professional expertise and insights, and ‘Partner’, where all startups, partners and LP come together in a ecosystem for opportunities, lead generation and more.

Our 10-year journey on hydrogen as a viable energy source

• 2009: CM Venture initiated research and evaluation of the emerging hydrogen market in China, which was still in its infancy.
• 2011: As Air Products’ (AP) China strategic advisor, CM Venture mapped the hydrogen value chain, forecasting market readiness within five years.
• 2016: AP China commissioned CM Venture again to update its industry analysis. CM Venture projected that a robust hydrogen economy would emerge in three years.
• 2019: After years of research, CM Venture predicted that hydrogen equipment manufacturers would be the first beneficiaries in the hydrogen market. This was about the same time we invested in Guofu in its Series A round.

Guofu Hydrogen: a strategic partnership
In late 2018, Guofu Hydrogen was spun off from its parent company as an independent company. Recognizing its enormous potential, CM Venture participated in Guofu’s Series A round with a clear investment thesis:

1. Hydrogen market prospects as a key future energy source.
2. Guofu’s market leadership in technology and share.
3. Strong capabilities and background of its founding team.

Our confidence in hydrogen as a viable source of clean energy was demonstrated through our participation across 5 successive funding rounds, providing both capital and strategic support.

Beyond funding – continuous guidance and support from our team

• Key talent recruitment: assisted in sourcing professionals across R&D, sales, and other domains.
• International partnerships: acted as a bridge between Guofu and new global partners.
• Industry connections: organized industry forums and facilitated dialogue with upstream and downstream partners to expand Guofu’s business opportunities.

Guofu Hydrogen’s journey of growth
From its initial financing to its successful IPO, Guofu Hydrogen has continually exceeded expectations. Throughout their journey, we have provided steadfast support, a symbol of our commitment to building long-term value for all our portfolio companies. Aside from combining deep industry research, sharp judgment, and a robust ecosystem, we also believe that scientists and technologists can bring unmatched clarity in evaluating and supporting science-driven innovations. 

To greater successes ahead
We’ll continue to pursue our mission to identify high-growth early-stage projects in hard tech sectors. With our scientist-driven perspective, we aim to uncover and nurture more promising innovation to advance technology and industrial development. We would also like to extend our gratitude to our LPs, including BASF, BAT / Btomorrow Ventures, General Electric, Henkel, SABIC, Samsung, 利物盛 (Levson), 临港, 天津润丰, 宝山国投, and 杨浦科创. Their trust and support have been instrumental in the shared journey with Guofu Hydrogen’s spectacular growth and success.