IPO of a Chinese Beauty Venture Capital Company Aborts
- Chaileedo Press
- Feb 27, 2023
- 2 min read
Updated: Apr 3, 2023
Tiantu Capital is one of the first professional investment institutions in China and has invested in a number of cosmetic companies such as Flower Knows, HANAJIRUSHI and PUskinology.
Recently, according to the official website of the Hong Kong Stock Exchange, the IPO status of Tiantu Capital Company Limited (hereinafter referred to as Tiantu Capital) has been shown as "lapsed", and it is no longer possible to view or download the listing application materials.
Publicly available information shows that Tiantu Capital was founded in 2002. In 2008, Tiantu Capital took the lead in differentiating itself from its domestic counterparts by focusing its investment projects on the mass consumer market, with its investment projects covering three major consumer upgrading directions: innovative consumption, new retailing, and consumer finance. According to the prospectus, Tiantu Capital is the first consumer-focused investment firm in China and has invested in a total of 205 portfolio companies covering food and beverage, apparel, beauty and other sectors, which has invested in many cosmetic companies such as Flower Knows, HANAJIRUSHI and PUskinology.
In 2015, Tiantu Capital was listed on the New Third Board and suspended its trading on 20 May 2022 in preparation for its listing on the Hong Kong Stock Exchange. On June 30, 2022, Tiantu Capital formally submitted a prospectus to the Hong Kong Stock Exchange to seek listing on the Hong Kong Main Board and passed the listing hearing of the Hong Kong Stock Exchange in November of the same year.
According to interpretation by professional people, if the company fails to complete the hearing or listing within 6 months, the prospectus will automatically lapse and the company needs to supplement the new period of financial data. But it does not mean that the IPO process is terminated, but the company needs to supplement the latest financial data and information within 3 months.
According to the previous prospectus of Tiantu Capital, the prospectus showed that from 2019 to 2021, Tiantu Capital recorded total revenue and net income or loss of 683 million yuan ($98 million), 1.416 billion yuan ($203.2 million) and 808 million yuan ($116 million) respectively. While net profit was 176 million yuan ($25.3 million), 961 million yuan ($138 million) and 592 million yuan ($85 million) respectively. Compared with 2020, net profit in 2021 declined by 38.4%. For the decline in performance, Tiantu Capital said that it was mainly due to a decrease in operating income from the non-asset management business in 2021 due to the impact of the pandemic. In the first half of 2022, Tiantu Capital recorded revenue of 20.88 million yuan ($3 million) and a net gain or loss of 212 million yuan ($30.4 million).
Comments