Tian Tu Capital (1973) H1 2024 earnings summary

Executive summary

• H1 2024 AUM was RMB21.1bn: RMB16.2bn in managed funds and RMB4.9bn in direct investments; fund average IRR was 8.1%.

• Net loss widened to RMB742.2m from RMB189.6m, mainly due to larger unrealized fair-value losses and weaker results from associates and joint ventures.

• H1 investment returns realized through funds and direct investments totaled RMB1,077.5m, mainly from IPO exits, equity transfers, share repurchases and dividends.

Financial highlights

• Revenue was RMB21.5m vs RMB23.4m YoY; no carried interest was recognized in either period.

• Net investment loss was RMB619.6m vs RMB226.3m; it included RMB903.6m unrealized losses on fair-valued associates, partly offset by RMB741.2m unrealized gains on FVTPL liabilities.

• Loss before tax was RMB840.0m; an income tax credit of RMB97.8m, including a RMB108.8m deferred tax credit, contributed to net loss of RMB742.2m.

• Total comprehensive expense was RMB729.9m vs RMB106.4m; equity at June 30, 2024 was RMB6.60bn vs RMB7.33bn at year-end 2023.

Outlook and guidance

• H2 2024 operating conditions were expected to remain challenging amid policy uncertainty, geopolitical tensions, weak consumer sentiment and pressure on discretionary consumer businesses.

• Plans include convertible debt and mezzanine capital to diversify monetization beyond IPOs, corporate venture partnerships, and selective expansion into biotechnology and next-generation information technology.

• Near-term priorities include operational excellence, cash generation, prudent capital management, robust risk management and governance.