The Chinese technology media 36KR reported that MIHOYO, a representative game company in Harajin and 3rd, could have lost up to 40 billion yen in the investment trust business. Mihoyo has filed a lawsuit on June 25 to Minmetals International Trust, a real estate investment trust based in Shanghai, which has undergone investment trusts.
According to 36kr, MIHOYO was aiming for a listing in the stock market in China around 2017, but delays have been delayed one after another. Mihoyo had a strong confidence in his cash flow, but the founder, Hiruu Tsai, withdrawn. After the withdrawal, a venture capital was opened to make a profit by investing in unnecessary emerging businesses. They also proceeded in the direction of operating Mihoyo as an investment company.
Venture capital is basically an investment company that invests in a high-return investment method that invests in future emerging businesses. As an example, Mihoyo is in collaboration with the investment company Nio Capital, investing in Singularity, which develops a small tokamak-type nuclear fusion reactor, which is said to be the next generation. In this way, Mihoyo developed an investment business with a view to the future, investing in other companies, rather than listing himself.
However, MIHOYO’s investment business, which was widely developed, was greatly hurt by an investment trust contract with Mintrust. An investment trust is an investment method in which a trust management company raises funds from investors and invests in behalf of investors. In other words, in this case, a trust operating company Mintrust was unable to make a profit while receiving investment from investors, mihoyo. Some media, including Yahoo! Finance, that Mintrust has failed to make a profit, that there is a headwind of the real estate market that has fallen since May this year in China.
In addition, Mintrust has defaulted (default) in 15 trust projects in the past. The loss of the trust project that has been defaulted is 40 billion yen or more, and it cannot be determined at this stage whether Mihoyo’s damaged amount was caused by default. That’s it.
According to some lawyers who are familiar with Mihoyo’s investment trends, Mihoyo’s actions of dyeing real estate investment trusts were unusual. This is because investment trusts specializing in the real estate business are very unstable in China. Lawyer Zhang SHENGLI says that game companies and real estate businesses that step into such unstable markets are related to fire and ice. He explains that it is an unstable combination that erases each other.
Mihoyo may seem to have been a big pain. However, it is presumed that Mihoyo received about 3 billion US dollars (approximately ¥ 420 billion) as a total sales of the Harajin mobile version (Sensor Tower). With such a financial margin, Mihoyo has announced a new partnership with a GOERTEK acoustic equipment development manufacturer.
Investing in fields with technical innovation is particularly risky. However, Mihoyo keeps choosing a field with technical innovation as an investment destination, without breaking the belief that the motto is Tech Otakus Saves The World. Maybe you want.