SDIC Fund Management Company Ltd. (“SDIC Fund Management”) announced that the investment by Beiing-Tianjin-Hebei Reigon Industrial Cooperative Development Fund, which is managed by SDIC Investment Management Company Ltd., in the Chinese industry leader of CNC machine tool—Beijing Jingdiao Group Company Ltd. (“Beijing Jingdiao”) was completed.

SDIC Fund is a professional private equity fund manager operated independently in market-oriented mode. As one of the largest private equity managers in China, SDIC Fund currently manages approximately RMB 60 billion of capital from diversified LPs, including financial institutions, Social Security Fund, private enterprises and stated-owned enterprises.

Established in 1994, Beijing Jingdiao is committed to providing customers with precision CNC machine tool and full solution for milling, drilling and grinding technics. It is one of the few companies in the world that masters comprehensive technologies including CNC machine tools, CNC systems, CAD/CAM software, high-speed electricity spindles and high-accuracy direct drive rotary stages. Beijing Jingdiao’s products are widely used in areas of precision parts and molds, covering more than 60 sub-sectors such as 3C, molds, auto parts, medical apparatus, military products, etc. The major clients of Beijing Jingdiao include Apple, Samsung, Foxconn and Biel Crystal. Jingdiao Carving Center works on the most demanding processing of surface effect in Apple 3C manufacturing line, which has won high recognition of the client. The headquarter of Beijing Jingdiao and the major research and development base are located in Beijing, and the manufacturing base of complete machine is located in Langfang, Hebei. The R&D and manufacturing base of precision core functional components is located in Tianjin, and many R&D and manufacturing bases and customer testing centers have been built in Ningbo, Suzhou and Guangzhou. It is the first time for Beijing Jingdiao to introduce an external investment partner since its establishment 24 years ago.

The legal services provided by Cathay Associates Kejie for SDIC Fund Management in this transaction included, among others, (i) legal due diligence, (ii) drafting, reviewing and revising the transaction documents, (iii) participating in transaction negotiations and (iv) assisting the closing of the transaction.

The Cathay Associates Kejie team advising this transaction was led by partner Zhang Fang.