Author: yvonne

Kimberly Jin & Ling Yang

China’s consumer sector is poised for one of its most lucrative vintages with investors able to take advantage of falling valuations, the AVCJ Private Equity & Venture Forum China 2023 heard.

“There will be attractive entry points in the next 12-18 months,” said Karen Lai, a managing director at LionRock Capital, a Hong Kong-based investment firm that targets cross-border buyouts of global consumer brands that offer a China growth angle.

Tian Ai, a managing director at consumer-focused private equity firm L Catterton, identified the next 6-12 months as an optimal entry point. Many companies are conducting a strategic review of their portfolios, carving out non-core assets to ease balance sheet pressure and concentrate on core business areas. This should lead to tremendous opportunities, he noted.

Lai was also bullish on take-privates and PIPEs, citing the downward adjustment in public market valuations. At the same time, the valuation gap between private and public markets has narrowed due to reduced liquidity and shrinking investor appetite. She added that companies previously demanding EBITDA multiples in the high teens are now settling for single digits.

However, investors must be selective. Lai advocated the use of downside protection through contingent value rights (CVR) and earnout structures. Ai stressed the importance of focusing on companies that are either profitable or have a clear path to profitability.

Gunther Hamm, a partner at Hopu Investments who leads the firm’s mid-cap Hopu Magnolia strategy, suggested that the best opportunities can be found in sub-sectors that are still underpenetrated and underdeveloped, such as cosmetics and skincare.

Others highlighted the potential of direct-to-consumer brands that can leverage China’s manufacturing and supply chain capabilities to address overseas demand. Ai referenced L Catterton portfolio companies BloomChic, a D2C fashion brand for plus-size clothes that mainly targets the US, and Tenways, the electric bicycle business that manufactures in China and primarily distributes in Europe.

Ian Lee, a managing partner at Dewu Capital, an early-stage investor that deploys renminbi- denominated funds, added that investors should be mindful of changing consumer behaviour in China. But at the same time, Ai noted that the sector is among the least impacted by geopolitical tensions and regulatory uncertainties, while Lai emphasized the resilience of consumer.

Despite a broader economic downturn, retailers are still prospering, Lai said, referencing the 61% spike in China sales reported by Canadian activewear label Lululemon in the second quarter.

Viva Goods Company Ltd. (933.HK) has been successfully transferred listing from GEM (8032.HK) to the Mainboard of HKSE on 27 June 2023. 

The company is a multi-brand operator principally engaged in design, development, branding and sales of lifestyle. The Company is also involved in the sports experience segment, including the operation, service provision and investment of sports destinations, sports competitions and events, as well as an e-sports club. 

This transfer of listing would further promote Viva Goods’ recognition through the public and strengthen their position in the industry which will be conducive to their future growth, financing flexibility and business development.

Inter Milan Website

Lautaro’s 74th-minute goal seals a 3-0 aggregate win over AC Milan

We’ve dreamt of this moment so many times. So many times. We’ve fought, worked, run, hoped, sweated. So, so much. From disappointments to triumphs, from friendlies to finals. We dreamt of this moment and now it is here, and we’re all celebrating it together. The 75,000 at San Siro and the millions of Nerazzurri brothers and sisters all over the world. It is our moment. Milano is ours, and we’re the ones flying to Istanbul for the Champions League final. It couldn’t be more beautiful. We’ve won another derby and reign supreme in the city. Lautaro, our Lautaro. The man of the match and the only goalscorer of the return leg. It was never in doubt: Inter were too strong, too focused, too – well – everything. Inter, Inter, Inter. We’re in the final, and we’ll never get tired of shouting it.

C’è solo l’Inter. There is only Inter. A fourth derby win in five this campaign, with the Nerazzurri once again the superior side tonight. In front of boisterous home crowd who lent their incredible support throughout, Lautaro Martinez’s 74th-minute finish sealed a 3-0 aggregate victory.

In a match with a tense build-up, Leao made his return for an AC Milan side who found themselves two behind following the first leg. But Inter, whose line-up was the same one that took to the pitch six days ago, set their stall out in a focused and determined manner. It was hard to hear the referee: the noise at San Siro was deafening. The away side looked for individual inspiration, with Hernandez getting forward and trying to make a nuisance of himself. Meanwhile, Inter were combining quickly on the counter. The first scare of the game came in the eleventh minute as Onana saved Diaz’s effort from twelve yards out.

It was a vital stop and a potentially defining moment. Inter started to increase the pressure as the minutes went by, although Leao did fire narrowly wide after a burst forward in the 38th minute. At the other end, Maignan somehow kept out a Dzeko header from a Calhanoglu free-kick.

The 0-0 scoreline at half-time suited Inter, even if the first half was slightly marred by a muscle problem for Mkhitaryan, who was replaced by Brozovic. The second period kicked off and Inter were attentive, closing all the gaps to play in. The Nerazzurri didn’t need to accelerate. As for AC Milan, they just couldn’t get going. And when Gosens and Lukaku entered the fray, the Rossoneri crumbled.

A historic moment arrived in the 74th minute: the goal that sealed Inter’s spot in the Champions League final for the sixth time in history. Gosens and Lukaku were involved and the latter picked out Lautaro, who beat Maignan at his near post. Pure unbridled joy. The Nerazzurri never looked back and completely controlled the final 20 minutes. There were battles, fouls, bookings and moments of tension. And there were attempts from Lautaro and Lukaku as Inzaghi’s men went for a second. But they didn’t need a second goal. Inter emerged victorious and are now in the Champions League final. This is our moment, and it’s very black and blue.