Ruihe Data Technology Holdings Limited (Ruihe Data) disclosed that its indirect wholly-owned subsidiary, Ruihe Data (Shenzhen), has signed a partnership agreement with PreIPO Capital and Hainan Baoshu to establish “Xiamen Ruiyihongshi Venture Capital Fund Partnership (Limited Partnership)”.
The vehicle targets total committed capital of RMB100.00 million (approximately HKD108.0 million). • PreIPO Capital, acting as general partner and fund manager, will contribute RMB0.10 million (0.10%). • Ruihe Data (Shenzhen) will inject RMB11.90 million (11.90%) as a limited partner. • Hainan Baoshu will provide RMB88.00 million (88.00%) as a limited partner. All contributions will be paid in cash and funded internally by the respective partners.
Fund parameters • Term: 10 years—6-year investment period plus 4-year exit period, extendable twice for two years each. • Strategy: equity investments in unlisted companies across “emerging pillar” sectors (new energy, new materials, aerospace, low-altitude economy) and “future” industries (quantum technology, hydrogen energy, biomanufacturing, 6G, etc.). • Management fee: 1% per annum of paid-in capital during the investment period; no fee during exit or extension periods. • Exit routes: IPO, M&A, share repurchase, transfer or liquidation.
Connected-transaction status PreIPO Capital is 39.92% owned by non-executive director Mr. Wu Kezhong, making it a connected person under Hong Kong Listing Rules. The partnership therefore constitutes a connected transaction. As the highest applicable percentage ratio is below 5% but above 0.1%, the deal is subject to reporting and announcement requirements only and is exempt from circular, independent financial advice and independent shareholders’ approval.
Strategic rationale Ruihe Data expects the fund structure to enhance overall capital returns, deepen cooperation with ecosystem partners and support growth in its big-data and IT businesses. Leveraging PreIPO Capital’s track record—29 managed funds with RMB23.00 billion in assets and 53 exits averaging a 10.4-times yield—the company aims to access specialised deal flow while limiting liability to its RMB11.90 million commitment.
Governance safeguards include a fund custodian, an investment decision committee and limited-partner oversight rights, while Ruihe Data’s board (excluding the abstaining Mr. Wu) considers the terms fair, reasonable and in shareholders’ best interests.
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