Venture capital firm Tiantu Capital files for IPO in Hong Kong

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According to the HKEx on Thursday, Tiantu Capital, a venture capital firm in China, has applied for listing in Hong Kong. JP Morgan Chase & Co. and Huatai International will be its co-sponsors.

Tiantu Capital was founded in 2002 and listed on the National Equities Exchange and Quotations in 2015 and was one of the first professional institutions engaged in equity investment in China. The firm focuses on investing in consumer goods which fall into three broad categories, namely: consumer innovation, new retail and consumer finance. Among the 205 companies invested by Tiantu Capital by the end of 2021, 23 companies have gained $1 billion in market value.

According to the company’s prospectus, Tiantu Capital posted revenue of 2.026 billion yuan ($302 million) in 2021, down 18.63% year-on-year, while the net profit was 735 million yuan, a slight increase from 706 million yuan. in 2020. Regarding the reasons for the decline in revenue, Tiantu Capital explained that the operating profit of the company’s non-asset management business declined due to the epidemic in 2021.

Currently, Tiantu’s team consists of 54 investment and operating professionals, and venture capital ties each investor’s salary to their project’s performance. Wang Yonghua, the current chairman of the company, is also the controller and currently owns 40.35% of the shares. Feng Weidong, chief investment officer of Tiantu Capital, owns 1.35%.

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According to China Insights Consultancy, China’s consumer industry grew from 43.8 trillion yuan in 2017 to 55.5 trillion yuan in 2021 with a compound annual growth rate of 6.1%, and is expected to grow further to reach 73 900 billion yuan in 2026.

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