NEW GAINS GROUP LIMITED

Hao Tian (1341) buys 49% of investor in fund investing in pre-IPO from Mr Su Junhao | Supplement
Company announcement, 26-Apr-2021
The consideration for 49% of Kingdom Future Ltd is HK$286.24m payable in new shares of Hao Tian at $0.33 per share, giving Mr Su 11.52% of the enlarged Hao Tian. Kingdom Future is investing US$75m in Tise Opportunities Fund SPC, which is investing in New Gains Group Ltd, until now a 100% subsidiary of China Evergrande (3333). Also investing in the fund is CST (0985). For more, see our coverage of Evergrande.

CST (0985) subscribes US$13m of fund to invest in pre-IPO | Supplement
Company announcement, 29-Mar-2021
A supplement 45 days later reveals that the Investment Manager, Great Bay Securities Ltd, is 67% owned by Paul Suen Cho Hung and 33% by Mr Liu Zhiyi. Our database records a person of that name is former Chairman and CEO of EPI (0689). There are also "management shares" held by Tise Capital Management Ltd, which is owned by Bryant Zhang Yu Tao. The fund is US$150m and has invested in 0.714% of New Gains Group Ltd, at a pre-IPO valuation of HKS$163.5bn (US$21bn). Prior to the deal, New Gains was 100% owned by China Evergrande (3333). For more, see our coverage of Evergrande..

China Evergrande (3333) pre-IPO issue of New Gains Group Ltd at stratospheric valuation
Company announcement, 29-Mar-2021
Evergrande is selling 5% for HK$8.175bn and NGG is issuing 5% for the same amount, reducing Evergrande from 100% to 90% of NGG. After restructuring, Evergrande will own 71.76% of NGG, so the investors will have 7.97%, valuing it at HK$205.1bn (US$26.3bn). NGG had 2020 net profit of just CNY102.9m (US$15.8m) and net assets of CNY3.1bn (US$478m), implying an old-money P/E of 1665 and P/B of 55. Evergrande has granted a put at a 15% premium if the IPO does not proceed in 1 year with at least CNY150bn pre-IPO valuation.