Financial Associated Press (Beijing, reporter Li Danyu) news, november 2, according to media reports, Yuanqi Forest is about to complete a new round of financing of nearly 200 million US dollars, the current round of investment valuation reached 15 billion US dollars, led by Temasek investment, Sequoia China, Warburg Pincus Capital and other investment.
Yuanqi Forest staff told the New Consumption Daily reporter that there was no response to the matter.
It is worth noting that this is already the second round of financing exposed by Yuanqi Forest during the year. According to Tianyan, in March this year, Yuanqi Forest just completed a round of strategic financing, and the valuation of this round of investment reached 6 billion US dollars. Warburg Pincus Investment, L catterton and Sequoia China led the investment, Temasek followed, Gaorong Capital, Longhu and others followed.
Since 2021, Yuanqi Forest has accelerated the speed of self-built factories and launching new products. Up to now, the five major factories of Yuanqi Forest plan a total investment of 5.5 billion yuan, and the total production capacity will exceed 5 billion bottles after all of them are put into operation. At present, Yuanqi Forest Anhui Chuzhou, Tianjin Xiqing and Guangdong Zhaoqing factories have been completed and put into operation, with an average product research and development cycle of 5.5 months, and the research and development costs have increased by more than 350% year-on-year.
According to media reports, the amount of this round of financing is also related to the self-construction of factories. It will be mainly used for product research and development, self-built factory investment and overseas market expansion.
Earlier, Li Bingqian, general manager of the Yuanqi Forest Production Center, revealed to reporters that under the pressure of international giants, Yuanqi Forest has encountered supplier supply cuts many times from 2018 to 2020, so it began to build its own factory to solve the problems caused by the "foundry model".
After Yuanqi Forest moves towards the heavy asset model, the pressure on the capital chain is self-evident. According to industry analysts, Yuanqi Forest's current marketing, research and development, factory construction and other costs remain high, its main raw material erythritol prices continue to rise, under multiple pressures, profit margins continue to be squeezed, in the short term still need to rely on financing development.
Yuanqi Forest supplier Sanyuan Bio once revealed in the announcement that the domestic erythritol market demand continues to be strong, the product supply is in short supply, and the product price is growing rapidly.
With the rise of sugar-free beverages, Coca-Cola, Nongfu Spring, Unity, Master Kang, Wang Laoji, Xicha, etc. have launched a series of products, which have a certain impact on the market share of Yuanqi Forest.
The above-mentioned industry insiders said that Coca-Cola's sugar-free Colado uses aspartame and acesulfame potassium, etc., and the cost is slightly lower than erythritol, but products such as Small Universe use erythritol. "Brands such as Coca-Cola have formed a relatively perfect system of supplier audit, raw material cost control and so on, and the cost pressure is much smaller than that of Yuanqi Forest, which will be directly reflected in the price."
Although the industry believes that Yuanqi Forest has not yet entered a profitable state, it still maintains its expansion status as a "capital darling". According to the data, yuanqi forest investment business has involved meat products, light food, snacks, wine, etc. Recently, Guanyun, a liquor brand invested by Yuanqi Forest, held a groundbreaking ceremony for the new distillery, with a total investment of 10 billion yuan.