Cathay Capital invests in Jieli, a leading Chinese cosmetics manufacturer
July 16, 2020
Cathay Capital has recently completed a new round of investment worth hundreds of millions of RMB in Jieli, a global leader in cosmetics packaging. Jieli thus becomes a new partner in Cathay’s global consumption and intelligent manufacturing ecosystem.
Founded in 1998, Jieli is one of the top three global suppliers of casings for cosmetic pens with an annual output of about 200 million units, equivalent to 8% – 10% of the global market supply. Thanks to its 21 years of successful development, Jieli has built up unparalleled expertise in the research, development, manufacture and sale of eyebrow pencils, eyeliners, lip liners, concealers, and other cosmetic products and prides itself in its ability to supply massive quantities whilst always respecting its strict quality control processes. Jieli is also a pioneer in its field, as demonstrated by the company’s more than 90 domestic and international patents. Jieli has rapidly automated its production lines and quality controls and thus laid solid foundations for further quality improvement and rapid delivery. Widely respected for its excellence in research, development and manufacture, Jieli has established long-term and stable strategic partnerships with well-known global cosmetics brands and filling factories such as L’Oréal, LVMH, Estée Lauder, Intercos, or COSMAX, and cooperates with these companies to carry out cutting-edge research and development projects.
The global cosmetics market is growing rapidly, with forecasts reaching yearly growth rates of more than 10% in China for coming years. This increasingly mature and diverse market requires manufacturers to be fast and innovative, not only with regards to their products and services but in relation to their distribution channels also. Indeed, the development and growth of new domestic makeup brands, such as MINISO, and the sharp rise of e-commerce, WeChat business for example, provides numerous development opportunities which Jieli is quick to seize.
With this funding round, Jieli will further boost its investments in research and development, accelerate the construction and improvement of its smart digital factory, and enhance its ability to rapidly supply cost-effective products to customers.
Chengjie SHAO, founder of Jieli, said “With our 21 years of experience and success in the manufacturing of makeup pens, our ability to rapidly supply massive quantities of excellent and innovative products is clearly established. Thanks to our partnership with Cathay, we will pursue the improvement of Jieli’s competitive strengths, increase investment in product R&D and intelligent manufacturing and pursue our objective of always providing better service to our clients, which in turn will deliver a new round of growth for the company.”
Mingpo CAI, founder and CEO of Cathay Capital, said: “Compared to developed economies, China’s market potential in skin care products and cosmetics is huge and Jieli is one of the leading manufactures in China providing a high quality and comprehensive offering . Furthermore, its R&D, production capacity, and customer service are highly competitive globally. The company has notably gone further and faster than most in improving efficiency through intelligent and flexible transformations of its production lines. I believe that Jieli will continue to meet the local requirements of international cosmetics brands in China as well as the diverse requirements of new Chinese cosmetics brands on the rise. Cathay will fully mobilize its resources in Europe and the US to develop Jieli’s smart factory processes, its international customer portfolio and help it find suitable merger targets, thus consolidating its leadership in the global cosmetics packaging market.”
About Cathay Capital
Cathay Capital Private Equity is a leading international private equity firm focused on cross-border investment and committed to supporting the international expansion of middle-market companies in North America, China and Europe. The firm’s team of 90 professionals is based in New York, Shanghai, Beijing, Paris, Munich, San Francisco and Tel Aviv and leverages its unique business model and platform to create value for companies across three continents. With $2.5 billion in assets under management, Cathay Capital Private Equity has completed over 90 buyouts and growth capital investments across three continents since its inception in 2007. Cathay Capital Private Equity invests in and assists middle-market companies in the consumer goods and services, healthcare, business services and technology industries. For more information, please visit www.cathay.fr
For Cathay Capital
Yoann Besse – Citigate Dewe Rogerson
+33 1 53 32 78 89