Recently, Bojiang Holdings Co., Ltd. submitted a prospectus to the Hong Kong Stock Exchange, with Everbright Securities International and Deutsche Bank as co-sponsors.
$Broad General Holding Limited (810509.HK)$Is a leading private equity fund manager dedicated to serving high net worth people and empowering Chinese high-tech enterprises.
The data show that Mr. Luo Tian, Ms. Yang Mengqiao, Broad Master, Broad Honor, Broad Lucky, Top King, Xingguang, Gold Luck, Broad Lakeside, Huicheng, Broad Oakheart, Huiyan and Broad Mind are a group of controlling shareholders of the company.
(ownership structure chart, picture source: prospectus)
The company completed its first private equity fund under management on May 18, 2016. as of December 31, 2022, the company's total assets under management was about 9.343 billion yuan, making it the second largest private equity fund manager in China focusing on serving high net worth people. among private equity fund managers focused on investing in the high-tech industry, the company ranks first.
As of December 31, 2022, the fair value of portfolio companies belonging to the shares held by the company's funds was about 8 billion yuan. In portfolio companiesFive companies have grown into unicorns valued at more than $1 billion.
Of the 87 current portfolio companies currently invested, 75 are high-tech companies in different areas, accounting for about 95.8 per cent of the company's total investment cost, according to Bo. Compared with other industries, the exit cycle of the high-tech industry is longer, which is a challenge to the patience and vision of the investors.
As of December 31, 2022, Bo will manage a total of 74 funds with an overall internal rate of return of about 18.7 per cent, which mainly raise funds from outside investors.
(Overview of the performance of the company's funds, photo source: prospectus)
It is worth noting that the company's DPI (income from realized or partially realized portfolio companies and the distribution of portfolio companies divided by paid-in capital) was higher in 2022, mainly due to the partial withdrawal of investments in certain portfolio companies in 2022.
As of December 31, 2022, the company has withdrawn all or part of its investment in seven companies, with a total investment cost of about 433.8 million yuan, realizing an exit value of about 1.2 billion yuan, and a MOIC of about 2.8 times.
In fact, for LP, the cash return they actually receive from the fund does not match the IRR (internal rate of return) shown by GP in private equity activities, while DPI can more directly reflect the "real gold and silver" return. Therefore, more attention has been paid to DPI indicators.
Among the general's products, the Chuangfu series has the best performance, with its internal rate of return, net internal rate of return, MOIC, DPI and TVPI being 21.3%, 20.5%, 3.2 times, 55.9% and 2.9 times, respectively.
(performance of each product of the company, photo source: prospectus)
In terms of operating performance, the company's income mainly comes from the fee income from the fund management business and the investment income from its own funds invested in the managed fund. During the reporting period, the company's total revenue was about 122 million yuan, 215 million yuan and 212 million yuan respectively, and the profit for the year was about 53.597 million yuan, 99.227 million yuan and 107 million yuan respectively.
(summary of consolidated profit, loss and other comprehensive income statement, photo source: prospectus)