While the AI spotlight dominates the current investment landscape, the narrative of value investing extends far beyond a single theme.

Recently, the prestigious AVCJ Private Equity Forum concluded in Hong Kong, marking another successful chapter in the event’s 38-year history. As Asia’s premier industry gathering, this year’s forum drew over 3,400 senior professionals from 44 countries to address strategies for navigating macroeconomic headwinds and uncovering new regional investment trends.

During the event, Sheng Zhang (Michael), CEO of TTGG Ventures, participated in a forum titled "Everything Else: Opportunities Beyond AI."Against the backdrop of an AI-saturated capital market, the discussion pivoted back to the broader frontier tech ecosystem, focusing on "hard tech" trends that are fundamentally reshaping the global economy.

Drawing on TTGG Ventures’ 25 years of deep cultivation in China’s hard-tech sector, Michael shared profound insights into the firm’s investment strategy.

  Market Cycles: Capturing the Essence of Value

"Industry hotspots take  turns like wheels, but enterprises that actually create value will ultimately be recognized," Michael observed, describing the cyclical nature of investment markets. Raising the examples of new energy and semiconductors, Michael pointed out that they were once niche "mysteries"; today, they are mainstream. 

The essence of investing, he stressed, lies in identifying—with genuine foresight—those companies that continuously and fundamentally improve lives and propel society forward, irrespective of whether they fall under the current "AI" umbrella.

AI is undoubtedly an important direction, but we believe that plenty of other industries are undergoing tectonic shifts as well.

New Energy: Fresh Opportunities Emerge Across Global Markets

While China produces nearly half of the world's EVs,  Michael noted that global electrification remains in its early innings.

He highlighted a surge in demand for grid modernization across emerging markets, particularly in Southeast Asia and Africa. This is creating significant export opportunities for Chinese alternative energy firms. Reflecting this conviction, approximately 30% of TTGG Ventures' portfolio is allocated to the alternative energy sector.

  Semiconductors: The Acceleration of Import Substitution

On the semiconductor front, Michael used TTGG portfolio company ESWIN (688783) to delve into the investment thesis behind import substitution.

As the largest domestic manufacturer of 12-inch silicon wafers, ESWIN completed its STAR Market IPO this October. Its global market share has climbed from under 1% just a few years ago to around 5% today, with a trajectory that points toward 25-30% over the next five years. This rapid expansion not only underscores the company’s growth potential but also reflects a broader shift in investment logic and market opportunity, catalyzed by supply chain restructuring. 

In Michael’s view, the accelerating pace of semiconductor localization is creating clearly defined sectoral opportunities for investors.

  Non-AI Fundraising: A Return to Fundamentals

Addressing the funding climate, Michael pushed back against the notion that non-AI startups are uniquely disadvantaged: fundraising is tough for everyone, and many AI startups are struggling too. He reminded that entrepreneurship is inherently a low-probability game, with success rates hovering around 10-20%. 

Rather than chasing labels, he advised that what matters is value creation. He observed market corrections often foster healthier innovation ecosystems: during market froth, R&D discipline often weakens; however, in tighter markets, the focus returns to unit economics, product optimization, and cost efficiency—precisely where we find the best investing opportunities.

With the right strategic direction and long-term commitment, the so-called "funding winter" is far from insurmountable.

  25 Years of Deep Commitment: From Local Roots to Global Reach

Throughout the forum discussions, Michael shared the journey of TTGG Ventures. As one of China's earliest venture capital firms, we has invested in more than 230 companies over 25 years, with 54 achieving successful IPOs, forming a systematic investment footprint across the hard tech landscape.

Next year, TTGG Ventures is preparing to launch the first USD fund, marking a new chapter in our global strategy. "We remain deeply bullish on the resilience and potential of the Chinese economy, while actively seeking out synergies for global industrial collaboration," Michael said.