Tian Tu Capital (1973) H2 2023 earnings summary

Executive summary

• 2023 net loss was RMB875.7 million, versus net profit of RMB532.9 million in 2022, primarily reflecting lower fair values of portfolio investments amid weak capital markets.

• Fund management and direct investment operations continued to grow; AUM reached RMB24.4 billion at year-end, and management remained optimistic about long-term portfolio value growth.

Financial highlights

• Revenue was RMB44.6 million, down from RMB46.0 million in 2022; net investment losses were RMB813.7 million, versus gains of RMB377.2 million.

• Continuing-operations loss was RMB875.7 million, compared with profit of RMB52.2 million in 2022; 2023 discontinued-operations profit was nil, versus RMB480.7 million in 2022.

• Loss attributable to owners was RMB873.0 million; basic loss per share was RMB1.56 for continuing and discontinued operations, versus earnings per share of RMB1.08 in 2022.

• Total equity was RMB7.33 billion at December 31, 2023, broadly level with RMB7.33 billion in 2022; cash and cash equivalents rose to RMB1.12 billion from RMB613.6 million.

Outlook and guidance

• For 2024, management plans to pursue investments and exits prudently, align fundraising and investments with local industrial strengths, and prioritize strategies not reliant on IPO exits.

• Investment focus remains China's consumer sector, with selective expansion into areas such as biotechnology; management expects economic recovery support from government stabilization and growth measures.

• China's 2024 GDP growth target is ~5%; policy priorities include capital-market stability, consumption growth and development of new forms of consumption.