Where the Clouds Rise: Gathering Strength, Treading Lightly, Exploring Western Yunnan — Notes from Yunqi Capital's 2023 Outing

"To reach where others have not, to explore what others have not known."

"There is nothing like this west of this city (western Yunnan)." — During the Chongzhen reign of the Ming dynasty, Xu Xiake, draped in a rain cape and leaning on a walking staff, ventured deep into the southwestern borderlands of Yunnan. Arriving at Tengchong, the "First City at the Frontier's Edge," he recorded this exclamation. It was also in Tengchong that Xu Xiake decided to bring his lifelong travels to a close.

Resolute in purpose, steady in stride, finding one's own meaning in coming and going — this border town preserves not only the traveler spirit of Xu Xiake, but also, across millennia of tree rings and eons of stone carvings, nourishes the craftsmen's quiet perseverance and composure. A handful of fresh tea, a piece of jade carving, a shadow puppet performance — each offers a glimpse into this cultural city's steadfast heart and unflappable calm.

In June, the Yunqi Capital team came to this cultural city to launch their annual Outing retreat. Shaking off urban clamor, team members returned to rustic pleasures — visiting historical sites, wandering mountains and waters, studying culture, connecting with nature, trying new things, and sparking fresh ideas.

Carbon-Starting in Western Yunnan: ESG in Action

Four kilometers west of Tengchong lies Heshun Ancient Town, founded in the Ming dynasty. On June 5, coinciding with World Environment Day, we launched a "Search for Holy Water, Purify the Environment" low-carbon adventure within the town. After a series of team-based challenges — puzzles, pitch-pot games, ancient papermaking — the winning group obtained "holy water" with purifying powers, successfully cleansing the contaminated water source.

Tengchong's "water" ecology is extraordinarily unique. Beihai Wetland, located to the northeast of Tengchong, is the only plateau volcanic barrier lake in southwestern China, formed 600,000 years ago after a volcanic eruption. Dozens of nationally protected animal and plant species make their home here.

In Xu Xiake's travelogue, Beihai Wetland was called "Lower Sea" — "Spanning roughly a thousand mu, filled with lush green grass throughout, floating and interwoven like a mat upon the water, with streams running through it that cannot be lifted."

Since the establishment of the wetland reserve, birds sing and grass grows green — the scenery remains as it was a century ago.

We hope that practicing ESG environmental principles can become part of every team member's life. To that end, we held a "First-Ever Yunqi Charity Auction" to encourage everyone to exchange unused items and contribute to environmental protection through small, everyday actions.

This auction collected 26 items: signed books by renowned authors, children's educational reads, globally limited-edition gaming consoles, home essentials, daily sports gear — and one colleague brought a memento from their volunteer work, hoping the goodwill would continue to spread.

The nearly three-hour auction, moving from the main hall to the tea room, had more heat than the midsummer sun, with a final transaction rate exceeding 100% — every item sold, and the gavel that witnessed this first charity auction also found a new owner. We plan to make the charity auction a recurring event, launched periodically, with all proceeds donated to charitable organizations.

Awn, and Happy

Tengchong's tea culture also dates to the Ming dynasty. With its mountainous terrain and scarce farmland, the mild climate and abundant rainfall make it ideal for tea cultivation.

The day we visited the tea fields happened to be Grain in Ear (Mangzhong). We experienced life as tea farmers — picking, withering, pan-firing, pressing, and crafting tea. It required not just individual dexterity, but also clear coordination and team collaboration.

Tea harvests are often at the mercy of weather, yet working the land demands daily consistency. Vast stretches of tea fields, a fine cup of tea — behind them lies the hard yet fulfilling life of tea farmers. Such is the reward of labor.

The investment market, too, is like the weather — difficult to predict precisely through human effort alone. What we can do is remain steadfast and diligent.

Tengchong's shadow puppetry has an even longer history, with nearly seven hundred years of continuous tradition. Tengchong shadow puppets are crafted from cowhide. Before carving begins, the hide must go through soaking, pressing, drying, and polishing to make it tough and translucent. Then drawn designs are attached to the leather, carved with small knives, and painted. At the shadow puppet hall, we tried our hand at the coloring process, and were fortunate to hear a master puppeteer explain the stories behind this art form's history.

Tengchong's border location gives it immense strategic importance — it was the first county town recaptured by the Chinese Expeditionary Force during the War of Resistance. At the Western Yunnan Anti-Japanese War Memorial Hall, we remembered history and honored the fallen, then paid tribute with flowers at the National Martyrs Cemetery.

Even while immersing ourselves in culture and rustic pleasures, we didn't miss opportunities for meetings and discussions. Accompanied by birdsong and cicada chorus, minds grew more active as we brainstormed how to further strengthen teamwork and improve efficiency.

Beyond the rich cultural experiences, we also charged into wilderness and bustling streets,

Eating mushrooms and singing songs all the way —

• Hiking four hours to a wilderness kitchen in the Gaoligong Mountains for authentic Yunnan barbecue;

• In an ancient Wa ethnic village, hand-roasting glutinous rice cakes over charcoal fire;

• Group photos (and Photoshopping) beside the Rehai "Big Hot Pot";

• Staggering into beef hot pot restaurants in shifts, occupying tables from lunch through afternoon tea to dinner;

• Transferring to the Golden and Silver Pagodas in Mangshi, spotting rainbows, clearing the streets of electric scooters, racing to night market barbecue stalls;

• Unexpectedly booking out an entire Dai ethnic town, securing live music rights;

Giving free rein to our spirits in nature, dialoguing with ourselves within the team — in a collective anchored to the same beacon, each person can draw sufficient strength.

Travelers in this world fear neither wind nor rain, ask neither west nor east. Amid never-ceasing change, Yunqi Capital celebrates its ninth anniversary. Facing an unpredictable market environment, we cherish mutual trust, close bonds, and the power of an open, inclusive team all the more — moving forward with spontaneously united, deeply committed partners, we continually gain the courage to persist and the drive to improve; whether in favorable or adverse circumstances, we will take Xu Xiake's spirit of "reaching where others have not, exploring what others have not known" as our self-admonition, remaining resolute and steady, diligent and earnest, accompanying entrepreneurs toward new landscapes that others have yet to reach.