Venture Capital Firm Tiantu Capital Applies for Hong Kong IPO

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

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

According to the firm’s prospectus, Tiantu Capital garnered a revenue of 2.026 billion yuan ($302 million) in 2021, a year-on-year decrease of 18.63%, while the net profit was 735 million yuan, a slight increase compared with 706 million yuan in 2020. As for the reasons for the decline in revenue, Tiantu Capital explained that the operating income of the company’s non-asset management business decreased due to the epidemic in 2021.

At present, Tiantu’s team consists of 54 investment and operation professionals, and the venture capital links the salary of each investor with its project’s return. Wang Yonghua, the current chairman of the company, is also the controller and currently holds 40.35% of shares. Feng Weidong, Chief Investment Officer of Tiantu Capital, holds 1.35%.

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According to China Insights Consultancy, China’s consumer industry has increased 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 further increase to 73.9 trillion yuan in 2026.