Yonghong Food Co. Ltd, headquartered in the county of Huishui, Guizhou province, is one of the top three players in the Chinese beef jerky market. The Company's most famous product, “Niutou”, or “Bull Head”, is a recognized “China Famous Trademark”, a prestigious title granted to only a handful of branded products. For nearly 30 years Bull Head has been synonymous with taste and quality.

News & Commentary

News

November E-Commerce Sales Show Strong Consumer

As we enter the year-end holiday season, the world’s two largest economies will generate tremendous levels of shopping both online and offline, bringing the sheer scale of China’s consumer growth into sharper focus.Double 11 – The online Chinese consumer is as healthy as ever Sales during November’s “Double 11” promotion reached 120.7bn yuan, or US$18bn, up 32% YoY. Chinese shoppers were enticed to build their shopping carts early, and in return were promised discounts and lightning...

Read more 2016-11-30 | Lunar Capital
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Double 11 a record day for Lunar companies

November 11, or “Double 11”, is now the world’s largest e-commerce shopping day, when merchants offer steep discounts to entice online shoppers. Since its inception in 2009, the day has achieved explosive growth year after year, and market leaders like Alibaba’s Tmall's have drawn the attention of other players, including JD.com, Dangdang, Gome and Suning, and international competitors like Amazon to partake in the frenzy. "Double 11" has grown to epitomize the success and growth of China’s e-commerce...

Read more 2015-11-29 | Lunar Capital
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Yonghong donations feed school children in Guizhou

Yonghong community outreach programs and initiatives have donated more than 1 million RMB worth beef jerky products to seven primary schools in Guizhou province from November 2 to November 11. The Company has been focused on buidling outreach programs to support local communities.

Read more 2015-11-10 | Yonghong
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Leading the Herd

By Holden Mann   Lunar has spent the last two years building Yonghong’s regional beef jerky brand into a national contender. The firm hopes to show the possibilities for progress that come with control deals.   In 2013, the management team at Guizhou Yonghong had a problem. Not with the business itself – the company, then nearing the end of its third decade, was one of the leaders in China’s crowded beef products market, and its Niutou brand of beef jerky was a regional favorite...

Read more 2015-07-20 | AVCJ
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The Case for Buyout Private Equity in China

For the past 35 years, Chinese private businesses have been growing at full tilt, and now account for more than 75% of total gross industrial output. Many of these private companies originated from OEM manufacturing, and thrived in the export-driven economy of yesterday. Cheap labor, low entry costs, and a supportive currency allowed homogeneous competition to grow without check, and the pace of growth often raised environmental, social and governance issues, such as pollution and product quality...

Read more 2015-06-29 | Lunar Capital
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A Growing M&A Culture

M&A activity in China reached record highs in 2014, with the consumer, technology and financial sectors leading the way. According to PWC, total M&A in China surged by 55% in both volume and value, with foreign strategics increasing their activity by 58% and domestics 63%. Last year’s M&A growth provided tailwinds for private equity in China and much needed liquidity for its investors. Exits by trade sale and M&A hit a record high in 2014, accounting for 37% of the total. Trade...

Read more 2015-02-26 | Lunar Capital
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Lunar Capital Update: Achievements in 2014

Our achievements in 2014 continue to serve as a validation of our thesis, strategy and commitment to consumer-focused, operationally-intensive, control-oriented investments in China. Our most recent fund, Lunar Capital Partners-III, is now fully invested with strong prospects for further valuation gains and distributions. Our apparel investment, Yeehoo, ended 2014 with revenue and earnings up significantly, positive margin improvement and e-commerce growth driven by channel expansion, product...

Read more 2015-01-29 | Lunar Capital
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Succession-planning Deals: A Matter of Legacy

By Andrew Woodman Long a feature of the developed markets private equity, succession-planning opportunities are beginning to pop up in emerging Asia. Regardless of geography, convincing a founder to sell his business is a challenge Over the course of three decades, Chinese meat snacks producer Guizhou Yonghong - best known for the popular Niutou jerky brand - has grown from a small rural operation to be one of the leading players in its market. The three founders, who set up the company...

Read more 2014-11-04 | AVCJ
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Sourcing Chinese Consumer Transactions

Our investment management process begins with our unique approach to sourcing transactions in our focus industries. The key component to our sourcing methodology is an industry insider approach: our management expertise and operational involvement in fast moving consumer goods (FMCG), apparel, accessories, specialty-retailing and related sectors provides us with the ability to identify and capitalize on  opportunities sourced from multiple channels. We focus on Chinese consumer businesses, and...

Read more 2014-07-27 | Lunar Capital
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Delivering Value Creation

Much of the discussion of our operational involvement in our portfolio revolves around growing top line revenues, controlling costs and streamlining decision making. These are goals that we must drive through deeper, more granular involvement in our companies.  This month we highlight some of the areas for improvement within our businesses that have been particularly low hanging fruits.Product R&D We see improvements through research and development and distribution channel...

Read more 2014-06-29 | Lunar Capital
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Incentivizing Minority Shareholders in a Buyout Deal

Chinese private equity has been overwhelmingly characterized by pre-IPO deals and growth capital investments whereby PE returns were driven by the deployment of investment capital, not human capital or sweat equity. Most firms lacked the culture, will and expertise to take on operationally challenging investments. Meanwhile the scale of buyout opportunities has grown, driven by (1) generational and succession issues, (2) rising levels of mergers and acquisition activity; (3) founders acknowledging...

Read more 2014-04-24 | Lunar Capital
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A Solution to Stress and Succession

Stressed out sextuginarian and septuginarian entrepreneurs are saddled with succession issues, as are their quadregenriarian and quinquagenerian brethren. A 2013 survey of privately-held small- and medium-sized private enterprises conducted by Shanghai Jiaotong University found that 70% will face succession issues within the next five to ten years, and less than 20% of next-generation heirs and heiresses are willing to take on the responsibility for running their companies. Stress is compounded...

Read more 2014-03-19 | Lunar Capital
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Derek Sulger: the Expansion of Middle Class in China

During an interview by PEDaily, a leading web portal in the venture capital and private equity industry in China, Derek Sulger shared his insight on the investment opportunities brought by txpansion of middle class in China.   For more, please click here.

Read more 2013-12-01 | PEdaily
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Burgeoning Bourgeois

The Chinese government has delivered on its promise of creating wealth for the masses, giving consumers purchasing power unimaginable even a decade ago. A recent study by McKinsey stated that the number of upper-middle class households with income between RMB 106,000 and RMB 229,000, has grown from 6% of urban household in 2010 to 14% in 2013. While the number of middle class households still outnumbers the upper-middle class, accounting for 54% of the total, McKinsey estimates that roughly 40...

Read more 2013-10-16 | Lunar Capital
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The Evolution of Retail Formats in China

China’s retail format is evolving as Chinese consumers grow wealthier and savvier. To generate sustainable growth going forward, businesses need to upgrade their retail platforms. Generally speaking, in developed markets where GDP per capita reaches USD 8,000, new retail formats, such as supermarkets, shopping malls and hypermarkets tend to become more attractive to consumers. China has now reached this inflection point. In 2011, GDP per capita for first tier cities, such as Shanghai, Beijing...

Read more 2013-08-14 | Lunar Capital
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Lunar Invests in Chinese Beef Snack Company

Shanghai private equity firm Lunar Capital has bought a majority stake of about 70% in Chinese snack food maker Guizhou Yonghong Food Co., committing up to $50 million to the company. The deal represents one of a handful of Chinese buyouts in a market where private equity investors typically take minority shareholdings in portfolio companies. Proceeds from the round will go toward research and development, and creating new brands that will appeal to niche customer segments, Derek Sulger, managing...

Read more 2013-04-20 | Dow Jones LBO Wire