Orient Hontai, Applovin Holdings and the Hontai App Fund

analysisIn September 2016 AppLovin agreed to sell a majority stake to the Chinese private-equity firm Orient Hontai Capital at an enterprise value of $1.42 billion; Adam Foroughi was then chief executive and the only director. In November 2017 he announced that the acquisition would not go ahead; Orient Hontai instead provided $841 million of debt financing, in addition to a 9.98% stake bought in January 2017 for $140 million. Foroughi said the financing let the founders keep full control, and the press attributed the change to opposition from the U.S. government. ^{1 2}

analysisCulper Research later wrote that CFIUS had blocked the sale, that AppLovin repaid the notes in July 2018 at a loss of $423 million, and connected this with Foroughi's April 2025 remark that KKR's 2018 investment was made "to clear out the Chinese investor". A May 2026 crypto-news article called Hao Tang the architect of the 2016 deal. No filing in the record links Tang to Orient Hontai, and the repayment terms are Culper's account. ^{3 4}

analysisAppLovin's Investors' Rights Agreement of August 15, 2018 lists two investors, KKR Denali and Applovin Holdings LLC, with a Beijing address. It defines Applovin Holdings as "Hontai" and Orient Hontai Capital Investment (Chengdu) Co., Ltd. and its stockholders as "Hontai GP". Yuntao Ma signed for Applovin Holdings as director; the same name appears as authorised signatory of Hontai App Fund Limited Partnership, Hontai Capital Cayman Inc. and Yunjoy Capital Cayman Inc. in 2024. ^{1 2}

analysisOn January 3, 2019 a warrant issued to Applovin Holdings in connection with earlier debt financing was transferred to Angel Pride Holdings Limited (26,021,583 Class A shares) and Hontai App Fund (8,794,734 shares), which exercised it for $868 and $293. ³

analysisHontai App Fund held 26,167,242 Class A shares before the IPO, 14.1% of the class. Its general partner is Hontai Capital Cayman Inc., whose controlling stockholder is Yunjoy Capital Cayman Inc. Its 2024 Schedule 13G amendment reports that by December 31, 2023 it had distributed all its AppLovin shares to its limited partners, whom it does not name. ^{1 2 3}

analysisCulper Research asserted that the distribution went mainly to Hao Tang's Midterm Success Limited, whose first Schedule 13G, filed eight days later, showed 23,167,242 shares, exactly 3,000,000 fewer than the fund's last reported holding. Culper also asserted, citing Hong Kong records not in the record, that Tang and Yuntao Ma co-directed Kunshan Technology Investment (HK) Limited and that AppLovin issued 2017 notes to Applovin Holdings and a "Kuntai" company. These are the short seller's inferences; the fund's filings do not name its limited partners. ^{4 2 5}