Perfect Diary's Parent Company Keeps Investing in Private Equity Funds
- Chaileedo Press
- Jun 10, 2022
- 3 min read
Hainan Yipin Supply Chain Management Co., Ltd., a wholly-owned subsidiary of Perfect Diary's parent company Yatsen, invested in private equity funds for the first time. The investment company is Suzhou Yuexiang Equity Investment Partnership. The investment amount has not been disclosed. In addition to its own brands such as Perfect Diary and Pink Bear, Yatsen also acquired international brands such as EVE LOM and Galenic.
Recently, Hainan Yipin Supply Chain Management Co., Ltd., a wholly-owned subsidiary of Perfect Diary's parent company Yatsen, has added a new external investment. The investment company is Suzhou Yuexiang Equity Investment Partnership(hereinafter referred to as “Suzhou Yuexiang”). The investment amount has not been disclosed.
It is reported that Suzhou Yuexiang’s approved establishment date is June 7, 2022, BST (all times in this article are Beijing time). Its main business scope includes private equity funds engaged in equity investment, investment management, asset management and other activities.
According to public information, this is the first foreign investment of Hainan Yipin after its establishment in March 2022. But in fact, Yatsen has never stopped investing abroad. At present, the own brands of Yatsen have been launched such as Perfect Diary, Abby's Choice, Pink Bear, etc., but also acquired high-end skin care brands EVELOM, Galenic, and DR.WU (business in mainland China), micro-ecological skin care brand Eantim, makeup brand Little Ondine.
As China's local beauty companies are listed one after another, more and more companies have begun to invest in investment funds. Last month alone, two Chinese companies, China's leading daily chemical company Lafang China Co., Ltd and global hyaluronic acid giant Bloomage Biotech, both announced their participation in the establishment of investment funds.
On May 19, Lafang China Co., Ltd announced that the equity investment funds it participated in had completed the private investment fund filing procedures with the Asset Mangement Association of China and obtained the Private Investment Fund Filing Certificate. Among them, Lafang China contributed 8 million yuan(about $1.1952 million), with a shareholding ratio of 43.96%.
On May 24, the investment fund Hainan Haixi Private Equity Investment Fund Partnership (Limited Partnership), was jointly established by the global hyaluronic acid giant Bloomage Biotech, with a total fundraising scale of 123.3 million yuan (about $18.31 million), targeting investments in the fields of dermatology and life sciences. This is also the first private equity fund that Bloomage Biotech has participated in since its A-share listing.
In recent years, the wave of new consumption swept in, which has given rise to a large number of new brands but also attracted capital. Although beauty investment has cooled down compared to the previous two years, it is still a popular investment and investment funds have become standard for listed beauty companies.
According to incomplete statistics from CHAILEEDO, these Chinese listed beauty companies have participated in the establishment of more than 10 funds, with a total size of more than 1.5 billion yuan (over 224 million US dollars).
Although various listed companies in China have a wide range of investments, they mainly focus on three tracks: new consumption, technology, and the Internet. In this way, the investment targets, in addition to brands, also extend to production enterprises, raw material enterprises, MCN institutions, advertising and marketing companies, etc. in the industrial chain.
According to the observation of Qeyes, among the investment targets of the four listed Chinese beauty companies, Marubi, S'Young, Proya, and Lafang, there is basically an MCN institution.
According to data from China Internet Network Information Center(CNNIC), as of June 2021, the number of e-commerce live broadcast users in China was 384 million, a year-on-year increase of 75.24 million. In 2021, the transaction scale reached $0.33 trillion, a year-on-year increase of 83.3%, maintaining a high-level speed up. It is estimated that in 2023, the scale of China's e-commerce live broadcast will exceed $0.73 trillion. Obviously, Chinese beauty listed companies do not want to miss the opportunity trends of short videos and live broadcasts.
With China's unpredictable market and increasingly stringent regulations, Chinese beauty listed companies are looking to expand into new business areas and seek growth points to enhance their own competitiveness while also receiving the most direct return on investment.
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