Kpbeauty.com.cn and Yangtze Fund signed an agreement on June 25. Based on the agreement, the former received about US$10M funding from the latter, becoming the first VC deal in domestic beauty industry.

Kpbeauty.com.cn has launched 1600 chain stores across China since its inception in late 2002. According to Guang Chen, CEO of the company, the investment proceeds will be used for the corporate operation, new product R&D, and to attract more league members of the chain stores. Notably, to attract more league members is the new measure for the company to gain more profits.

Yantze Fund debuted on London AIM in May this year. This investment to Kpbeauty.com.cn is its first deal amongst domestic beauty industry. Jiaming Zhou, Beijing Chief Representative of Yangtze Capital Management Co., Ltd., disclosed that they plan to exit in two or three years through IPO.

This plan coincides with the IPO timetable of Kpbeauty.com.cn. Mrs. Chen said his company can float on HKMB or US market. If all goes smoothly, Kpbeauty.com.cn will become China's first beauty listing.