Our mission is to build world-class companies by matching Chinese market leaders with European “Hidden Champions”. The strengths of European companies lie in strong brand names and world leading technologies but they also face the challenges of high costs, low profit margin, relatively saturated European markets, and capital shortage for fast organic growth or for meeting the OEM’s globalization demand. Therefore China’s lower cost, higher profit margin and huge market seem quite appealing. At the same time, Chinese companies, however, have relatively lagging technologies, inferior R&D capabilities and lower level of automation. There is therefore a strong desire for the advanced technologies in Europe.
Shentou’s Mission
European Companies
Strengths：Strong brand names, world leading technologies
Weakness：High costs, low profit margin, relatively saturated European markets, capital shortage for meeting the OEM’s globalization demand
Chinese Companies
Strengths：Cost advantages and huge markets
Weakness：Relatively lagging technologies, inferior R&D capabilities and lower level of automation
With a clear knowledge of the opportunities and challenges faced by both parties and their complementary advantages, Shentou constantly seeks opportunities of cross-border investment and industry integration by combining China’s markets, cost advantages, capital advantages and European companies’ international brands, technologies and global networks, using capital as a tie.
The Investment Strategy of Shentou can be summarized by the following formula:
