Recently, Shanghai LifenGas Co., Ltd. (hereinafter referred to as "Shanghai LifenGas") completed a new round of strategic financing, which was conducted jointly by Shandong New Kinetic Energy Sinochem Green Fund under Sinochem Capital, Suzhou Junzilan Capital Management Co., Ltd. and Shanghai Science and Technology Innovation Center Equity Investment Fund Management Co., Ltd.. Taihe Capital serves as the exclusive long-term financial advisor. In the past year, Shanghai LifenGas has completed three rounds of financing and has been supported and recognized by various investors such as industrial capital, state-owned investment platforms and private equity investment, etc.
Zhang Zhengxiong, the founder of Shanghai LifenGas, expressed that LifenGas' management was surprised by Taihe's understanding of the industrial gas industry and our unique business model. The financing strategy provided also answered our long-standing confusion. The foundation of trust between both parties has been laid during the early planning stage.
During the execution stage, Taihe's execution team communicated efficiently with the capital market and LifenGas’ management. LifenGas actively cooperated and played a leading role in the process. The success of financing depends on the company's business core and the founder's style. Taihe helps the founders improve and better display the corporate image in the capital market.
Shanghai LifenGas was founded in 2015. Its innovative one-stop gas circulation model can cut gas costs by over 50% for customers. It holds over 85% of the market share in photovoltaic gas circulation and has doubled its achievements for three consecutive years. The company has also expanded its business into wet electronic chemical recycling and electronic-grade gas retail areas, gradually becoming a leading enterprise with highly differentiated characteristics in the industrial gas field.
Zhao Chenyang, the investment director of Sinochem Green Fund, stated that the 20th National Congress of the Communist Party of China proposed promoting green and low-carbon economic and social development as a key factor in achieving high-quality development. LifenGas's business development concept of 'creating a low-carbon life' is an important practice for achieving quality development. By focusing on customer needs and utilizing the core capabilities of industrial gas purification, LifenGas has developed a green path for itself. We are optimistic about the extensive application space of LifenGas' chemical purification platform technology and circular economy development concept. We believe that building a modern industrial system will have great potential. We look forward to LifenGas contributing more to promoting green transformation and assisting the dual-carbon goal.
According to Wang Xuejun, chairman of Clivia Capital, Shanghai LifenGas has developed a new gas recycling model based on independently developed technology. This model has become the standard process for photovoltaic companies in the crystal growing manufacturing section. Additionally, the company has developed a wet gas recycling model and applied the idea of gas recycling to electronic chemicals. As a result, the cost of cell production for photovoltaic companies has significantly decreased. We are optimistic about the company's platform capabilities in recycling industrial gases and wet electronic chemicals, with a focus on the photovoltaic field and will continue to support Chinese photovoltaic companies in leading the world with innovation.
The Shanghai Science and Technology Innovation Fund stated that LifenGas has become a benchmark in the segmented track by entering the leading photovoltaic customers through the argon gas recycling business. We are optimistic about the company's ability to expand into multiple products with industrial gas chemical recycling technology as the core. We anticipate that LifenGas will become China's foremost comprehensive industrial gas company, utilizing technological innovation to further reduce costs in photovoltaic and other industries, and to support sustainable development.
Guan Lingzi, Vice President of Taihe Capital, stated that industrial gases are a highly valuable new material category due to their universal application scenarios and unique business model. This makes them a promising investment opportunity with both short-term growth potential and medium-term stability, as well as a high ceiling for long-term growth. However, this good track will inevitably face fierce competition. We have been searching for a segmented gas leader with significant differentiation, and LifengGas's business strategy aligns with our goals. Based on this, LifenGas’s team possesses rare qualities such as tenacity, pragmatism, and sobriety. They have always been down-to-earth in the rapidly developing industry, neither arrogant nor impetuous. We firmly believe that LifenGas has the opportunity and strength to become China’s leading industrial gas provider!
Post time: Jan-05-2024
