[email protected], page-8

HOPU is HQed in Singapore but it’s a Chinese VC company. My understanding is that it’s Chair (Mr Fang) has close connections to the ruling party in Beijing.

According to media reports at the time, Mr Molyneux was engaged by HOPU to negotiate it’s holding in PDN. I imagine Mr Fang was subsequently instrumental in having Mr Molyneux installed as MD

Until recently CNNC appeared to be a commited long-term partner of PDN. I saw Mr Molyneux’ close relationship with Mr Fang, and Mr Fang’ (reportedly) close relationship with Beijing, and Beijing’ control over CNNC, as a happy coalescence of interests.

In retrospect, I should have viewed the convaluted and opaque nature of these relationships as a risk not a strength of the PDN investment thesis. I was also naive in thinking interests of all parties would coincide in all instances.