Guangzhou Yuexiu Capital Holdings Group, a publicly-listed Chinese financial conglomerate with 194.2 billion yuan ($27.2 billion) in total assets, has teamed up with a domestic smart energy firm for the launch of a 1.5-billion-yuan ($210.4 million) fund.
Yuexiu Capital, through three holding subsidiaries, bankrolled the new fund along with a subsidiary of Chinese residential renewable energy solutions provider Chint Anneng Digital Power, the financial conglomerate announced on Tuesday.
Yuexiu Industrial Investment Fund, a private-market fund management firm affiliated with Yuexiu Capital, serves as the general partner of the new fund.
The fund will primarily invest in residential distributed photovoltaic (PV) power generation infrastructure projects and supporting energy storage facilities, said Yuexiu Capital.
This is the second fund jointly established by Yuexiu Capital and Chint Anneng. It came just over one year after the two companies formed a 1-billion-yuan ($140.3 million) new energy fund in July 2023. Chint Anneng committed 180 million yuan ($25.3 million) to the previous vehicle.
The fund launch comes as Chint Anneng is moving towards an initial public offering (IPO) on the main board of the Shanghai Stock Exchange. Having submitted its IPO application in September 2023, the firm targets a public share sale of up to 6 billion yuan ($841.5 million).
Chint Anneng was last valued at over 30 billion yuan ($4.2 billion) by the end of 2022 when it secured almost 4 billion yuan ($561 million) in its Series B, B+ rounds from investors, including Cloudview Capital and China’s National Green Development Fund. Yuexiu Capital also participated in the investments.
Guangzhou-headquartered Yuexiu Capital claims that it has deployed over 19 billion yuan ($2.7 billion) in the new energy sector as of 2023 end.
Through Yuexiu Industrial Investment Fund, the conglomerate offers private-market strategies, including fund-of-funds (FOF), direct equity investments, as well as real estate and urban renewal-focused mezzanine investments. The group also runs financial leasing, futures, and other business lines.
Under the FOF strategy, its holding subsidiary Yuexiu Industrial Investment Fund has committed to funds managed by general partners like CDH Investments, CITIC Private Equity, CICC Capital, Goldstone Investment, GAC Capital, and SDIC Unity Capital. Its FOF investments focus on three industries, including healthcare, advanced manufacturing, and consumption.
Yuexiu Capital, which has been listed on the main board of the Shenzhen Stock Exchange since 2020, reported a net income of 467.2 million yuan ($65.5 million), against its revenue of nearly 3.03 billion yuan ($425 million) in the first quarter of 2024.
Its Q1 results represented a 21.9% decline in revenue and a 34.4% profit drop compared to the same period last year. But the total assets of the conglomerate grew marginally by 3.8% year-over-year to 194.2 billion yuan ($27.2 billion), according to its latest financials.