HONG KONG, May 6, 2022 /PRNewswire/ — China Resources Enterprise ("CRE") and Fung Investments announced the establishment of a 50/50 US$300 million joint venture investment platform ("the Joint Venture"), focusing on businesses with quality brands, products, services and technologies. The two parties will each be responsible for US$150 million of contribution to the JV.
(left to right) Dr. Victor Fung, Chairman of Fung Investments, Dr. William Fung, Vice-chairman of Fung Investments, Mr. CHEN Ying, Deputy General Manager of China Resources (Group) Company Limited and Mr. WANG Xiangming, Chairman of the Board of China Resources Group at the November 2021 signing of the MOU.
The joint venture will make investments in offshore companies (non-PRC incorporated companies) which sell consumer and lifestyle related quality brands, products, services and/or innovative technology, which have potential for introduction to or expansion in China particularly in the Greater Bay Area and which are in alignment or synergistic with the forecasted consumption growth trends in the Greater Bay Area including in particular with respect to the lifestyle, fashion and healthcare sectors. Leveraging on the distribution network of China Resources Group in China and the Fung Group’s global supply chain, the joint venture partners will help companies expand their businesses.
Mr. Chen Ying, Chairman of the Board and Chief Executive Officer of China Resources Enterprise Ltd and Assistant General Manager of China Resources Group, said by formally establishing the JV with Fung Investments, both China Resources and Fung Investments can give full play to their respective advantages in the future and bring consumer and lifestyle related quality brands products, services and/or innovative technology to the Greater Bay Area, to satisfy Chinese people’s ever-growing needs for a better life.
Dr. Victor Fung, Chairman of Fung Investments, said: "The growth of Chinese consumerism is set to sustain growth and create abundant opportunities for consumer and lifestyle companies that are looking to do business in China. As more Chinese consumers are demanding for new, high‑quality brands, products, services and technologies, we are excited to join forces with CRE to invest in new consumption areas which offer great growth potential such as food, lifestyle, fashion and healthcare."
About China Resources Enterprise (CRE)
CRE was established in 1992 and is the first company within the China Resources Group to be publicly listed. In the past 30 years, CRE participated in mergers and acquisitions as well as integration in 15 industries including beer, properties, consumer products, retail, gas, cement. In the process, CRE incubated brands that enjoy national fame, such as Snow beer, C’est Bon, CR Ng Fung, China Resources Vanguard. The group is currently in warehousing & logistics, commercial properties, coffee, and business investments. In the 14th five-year-plan, CRE is positioned as an internationalized business platform in Hong Kong that incubates new industries within and outside of Mainland China. It will serve the national strategy from Hong Kong, grasping opportunities from consumption upgrade and technological innovation, helping the domestic and international dual circulations.
About Fung Investments
Fung Investments is a global investment company privately owned by the families of Dr. Victor Fung and Dr. William Fung. Fung Investments’ strengths lie in its foresight and ability to connect partners from around the world to invest in sectors that have the potential to transform or lead future developments in Asia, with a focus on Hong Kong and Mainland China. The Fung Group also galvanizes Hong Kong businesses to play an intermediary role in the flow of goods and services to and from China. Its portfolio companies span various sectors including healthcare & wellness, food manufacturing, commercial aviation and real estate.