SHORELINE CAPITAL MANAGEMENT, LTD.

Thesis

Shoreline Capital Management, Ltd., founded in 2004, is an investment advisory firm specializing in distressed debt and special situations within China. Their core philosophy is to "find value and create value" by identifying and capitalizing on market inefficiencies and distress. The firm's investment strategy centers on distressed debt or equity, including non-performing loans (NPLs) and special situations in China. In structured special situations, the firm provides financing to companies that may have difficulty accessing traditional credit, often with collateral exceeding the financing amount. Shoreline utilizes a proprietary national network for deal sourcing and possesses a deep understanding of the local legal framework for pricing and acquisition. They emphasize adding value through legal or other exercises and realizing investments through third-party sales, litigation, workouts, and liquidations. Risk management is a key focus, adhering to principles of high safety margins and stop-loss strategies. They actively seek opportunities arising from market information asymmetry and inefficiency, aiming for relatively high returns with relatively low risk. Collaboration with other professional teams and external alliances is also a key aspect of their strategy, particularly for counter-cyclical investments. Shoreline Capital Management manages several private investment funds, including Shoreline China Value I, LP, Shoreline China Value II, LP, Shoreline China Value III, LP, and an overflow fund. The investment period for these funds terminated in 2016 due to a key man clause, leading the firm to focus on winding down existing funds and returning capital to limited partners. A