RUIHE DATA (03680.HK): Establishes RMB 100 Million Venture Capital Fund with Indirect 11.9% Stake, Targeting Emerging Pillar and Future Industries

NewTimeSpace News: Ruihe Data Technology Holdings Limited (stock code: 03680) announced on August 7 that the Company's indirect wholly-owned subsidiary, Ruihe Data Technology (Shenzhen) Co., Ltd., has entered into a partnership agreement with Youshi Financial Holding and Hainan Baoshu Investment Co., Ltd. to establish a limited partnership (provisionally named "Xiamen Ruiyi Hongshi Venture Capital Fund Partnership (Limited Partnership)").

According to the announcement, the aggregate committed capital of all partners of the limited partnership is RMB 100 million, under which Youshi Financial Holding, as general partner and fund manager, intends to contribute RMB 100,000 (0.10% of committed capital), while Ruihe Data (Shenzhen) and Hainan Baoshu, as limited partners, intend to contribute RMB 11.9 million (11.90%) and RMB 88 million (88.00%) respectively. The term of the fund is ten years from the date of establishment, comprising a six-year investment period and a four-year exit period, with the general partner entitled to extend the exit period twice by two years each time. During the investment period, management fees are charged at 1% per annum of the limited partners' paid-in capital, with no management fees charged during the exit period and extension periods. Distributable cash income is distributed in full to all partners according to their paid-in capital contributions.

The fund will primarily invest, directly or indirectly through equity investment, in unlisted enterprises that fit its investment strategy, focusing on emerging pillar industries (including but not limited to new energy, new materials, aerospace and the low-altitude economy) and future industries (including but not limited to quantum technology, biomaturfacturing, hydrogen energy and nuclear fusion energy, brain-computer interfaces, embodied intelligence and sixth-generation mobile communications (6G)), with an investment decision committee established as the highest decision-making body.

In terms of the Listing Rules implications, as Youshi Financial Holding is 39.92% owned by Mr. Wu Kezhong, a non-executive director of the Company, it is a connected person of the Company, and the entering into of the partnership agreement and the proposed establishment of the fund constitute a connected transaction of the Company. As one or more applicable percentage ratios exceed 0.1% but are all below 5%, the establishment is subject to the reporting and announcement requirements under Chapter 14A of the Listing Rules but is exempt from the circular, independent financial advice and independent shareholders' approval requirements. Mr. Wu Kezhong has abstained from voting on the relevant Board resolutions.

The Board considers that entering into the partnership agreement aims to improve the Group's return on capital and achieve capital appreciation, strengthen the Group's cooperation with ecosystem enterprises and promote the development of its big data and information technology businesses. According to information provided by Youshi Financial Holding, which is registered as a private fund manager (registration number P1067714), it has managed 29 fund products with approximately RMB 23 billion in assets under management (AUM), invested in 184 projects in aggregate, with 53 projects exited through IPO or M&A and an average exit return of approximately 10.4x, ranking second nationally in terms of exit rate among Chinese private equity institutions, demonstrating its appropriate capability and experience to act as the general partner and manager of the fund.

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