Incident: On November 10, 2023, the company issued an announcement. Century Kaihua, a new partner, was added to the Harmonious Green Industry Fund managed by the company's subsidiary. Century Kaihua will pledge an investment of RMB 300 million to the partnership in cash. As of November 10, the total amount pledged by the Harmonious Green Industry Fund was RMB 7.950 billion.

The payment scale of the new fund has exceeded the target total pledge amount, and the fund-raising has exceeded expectations. As the company's second phase fund, Harmonious Green Industry Fund was established in October 2022. At the time of establishment, the fund pledged a total of 3.25 billion yuan. Since then, partners Caixin Jixiang Life, Hunan Caixin Finance, Zhejiang Zhengtai New Energy, Pujiang County Equity Investment Management Co., Ltd., and Century Kaihua have been added one after another. Previously, the company announced a target commitment scale of 7.5 billion yuan. Currently, the total amount of fund pledges has reached 7.95 billion yuan, and the pledge scale has exceeded the target total pledge amount. The company began collecting management fees in May of this year, and subsequent investors will make additional payments on management fees. As of the announcement date, the company is managing three investment funds with a total management scale of 25.4 billion dollars. It mainly invests in industries encouraged by the country, such as technology, advanced manufacturing, semiconductors, new energy, consumption and services.

The company actively carried out repurchase work, fully demonstrating the company's confidence. On October 24, the company issued an announcement stating that based on confidence in the company's future continued and stable development and recognition of its internal value, the company plans to repurchase the company's shares at an amount not less than RMB 50 million (inclusive) and no more than RMB 10 million (inclusive), with a repurchase price of no more than RMB 22 per share. The repurchase of shares will be used for employee stock ownership plans or equity incentive plans to further improve the corporate governance structure, establish a long-term incentive and restraint mechanism, ensure the achievement of the company's long-term business goals, and enhance the overall value of the company. On November 1, for the first time, the company used its own capital to repurchase 296,600 shares of the company through a special securities repurchase account through centralized bidding transactions, accounting for 0.04% of the company's total share capital. The total transaction amount was RMB 4.55 million (excluding transaction fees).

Investment suggestions: The second phase fund raised more than expected, and the exit benefits of the first phase of the fund were gradually realized. The company's repurchases showed confidence and optimism that the company's performance would be released at an accelerated pace. The two funds managed by the company in 2017, Harmonious Jinyu and Harmonious Jinhong, were based on the fair value of the investment portfolio as of June 30, 2023. The company generated a total investment income of 1,571 billion yuan, and based on the distribution income of the two funds at the end of the maximum life period of the two funds, the company expects to receive 1.1 billion yuan in excess performance compensation, and the company's performance is expected to be released at an accelerated pace. The 2023-2024 results are expected to be 10.62 billion yuan and 1,443 billion yuan respectively, with a year-on-year difference of +28.7% and +35.8%, respectively. The current stock price corresponds to 11.2×PE in 2023.

Risk warning: large fluctuations in the capital market; fund investment returns fall short of expectations; stricter regulatory policies