2nd round of funding in Aesthetic International


 

TIDMYCI 
 
RNS Number : 0876K 
Yangtze China Investment Limited 
13 April 2010 
 

 
 
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| Press Release                |                13 April 2010 | 
+------------------------------+------------------------------+ 
 
 
 
                        Yangtze China Investment Limited 
 
                          ("Yangtze" or "the Company") 
 
Second round of funding for investee 
 Aesthetic International Holdings Group 
                                    Limited 
 
 
Yangtze China Investment Limited (AIM:YCI), a provider of expansion capital to 
China-based enterprises, today announces that Aesthetic International Holdings 
Group Limited ("Aesthetic"), an investee of the Company, has successfully 
completed a second round of funding raising RMB 60 million (approximately US$8.8 
million) from Green Pine Capital Partners Co. Ltd.("Green Pine"), a Chinese 
venture capital fund.  Aesthetic will use the proceeds to expand its successful 
franchise in China's beauty market and to enable it to join up with a partner in 
preparation for a potential domestic listing in the People's Republic of China 
("PRC"). 
 
In this second round of funding, Green Pine will become a 13% holder of the 
enlarged registered capital of a PRC subsidiary of Aesthetic.  To date, Green 
Pine has had RMB 2 billion (approximately US$293 million) of assets under 
management. 
 
This new round of funding represents an appreciation of 2.9 times in Aesthetic's 
pre-money valuation since July 2008, when Yangtze invested US$5 million 
acquiring an interest of 25%.  Following Green Pine's investment, Yangtze's 
interest upon full conversion of the convertible loan note issued by Aesthetic 
becomes approximately 22%. 
 
Aesthetic, a beauty spa franchise based in Beijing, China, markets and sells 
beauty and skincare products and services via its franchise beauty centre sales 
network.  The network now has over 2,000 franchisees in 30 provinces and 160 
cities across China.  It generates revenues principally through the sale of its 
products, with licensing and franchising fees providing additional revenue 
streams. 
 
Recent developments at Aesthetic include: 
+---------------------------------------------------+--------------------------------------------------------+ 
|                                                 · |   The establishment of a beauty school in Chengdu to   | 
|                                                   |   provide skills training for aspiring professional    | 
|                                                   |   beauticians, who would also become customers of      | 
|                                                   |   Aesthetic and purchase its products.  The beauty     | 
|                                                   |   school is in the process of obtaining approvals and  | 
|                                                   |   confirmation of curriculum assessment and            | 
|                                                   |   accreditation.                                       | 
+---------------------------------------------------+--------------------------------------------------------+ 
|                                                 · |   A plastic surgery clinic in Shenyang commenced       | 
|                                                   |   operations in Q4 of 2009.  The clinic is a joint     | 
|                                                   |   venture with a renowned, licensed practitioner of    | 
|                                                   |   Chinese medicine, who aims to strengthen its         | 
|                                                   |   corporate image as a leader of the beauty industry   | 
|                                                   |   in China.                                            | 
+---------------------------------------------------+--------------------------------------------------------+ 
|                                                 · |   Introduction of a new cosmetics and toiletries       | 
|                                                   |   product line to the market in Q4 of 2009.            | 
+---------------------------------------------------+--------------------------------------------------------+ 
 
Aesthetic continues to record impressive growth in profitability, having 
benefitted from the expanding number of female consumers with growing disposable 
income and the PRC Government's drive to stimulate the domestic economy. 
 
Wilfred Wong, Chairman of Yangtze China Investment Limited, said: "We are 
delighted that Aesthetic has received a second round of funding following 
Yangtze's initial US$5 million investment into the business in July 2008 which 
has seen a substantial appreciation in value since that time. 
 
"The Yangtze Board is pleased to see Aesthetic growing from strength to 
strength, and provides its full support to the latest investment.  The backing 
by Green Pine will pave the way for a possible listing for Aesthetic, which 
would be a viable partial exit strategy and would meet the expectations of the 
Board of Yangtze." 
 
                                    - Ends - 
 
 
 
For further information: 
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| Yangtze China Investment Limited   |                        | 
+------------------------------------+------------------------+ 
| Wilfred Wong                       |    Tel: +852 2281 7222 | 
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|                                    |      www.yangtzecn.com | 
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| Collins Stewart Europe Limited     |                        | 
+------------------------------------+------------------------+ 
| Adrian Hadden                      |   Tel: +44 (0) 20 7523 | 
|                                    |                   8350 | 
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|                                    | www.collinsstewart.com | 
+------------------------------------+------------------------+ 
 
Media enquiries: 
+------------------------------------+-------------------------+ 
| Abchurch Communications Limited    |                         | 
+------------------------------------+-------------------------+ 
| Henry Harrison-Topham / Monique    |    Tel: +44 (0) 20 7398 | 
| Tsang                              |                    7712 | 
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| monique.tsang@abchurch-group.com   | www.abchurch-group.com  | 
+------------------------------------+-------------------------+ 
 
Notes to Editors 
 
Yangtze China Investment Limited is a closed-ended investment company 
established to make minority equity and equity-related investments in a 
portfolio of small and medium-sized growth businesses within, or associated 
with, the consumer sector in China.  With a proprietary deal flow, the Group 
focuses on unlisted companies whose business operations are based principally in 
mainland China.  Yangtze will typically seek to invest in companies that are 
revenue generating, ideally profitable or anticipated to generate profits in the 
near term and which the Group believes have strong management teams and market 
leading potential. 
 
Yangtze aims to capitalise on the growing disposable income in China, investing 
primarily in companies operating in a variety of consumer sectors, including 
consumer related technology, media and advertising, entertainment, distribution 
and retailing of consumer goods and services, and health good and services. 
 
Since the free market reforms in 1978, China's GDP has grown on an average of 
9.9% a year and recorded real GDP growth of 9.0% in 2008.    Government reforms 
are transforming the economy, with a focus on domestic consumption, 
infrastructure spending and, now increasingly, upon environmental issues. 
 
For further information, please see www.yangtzecn.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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