Core Insights - In the summer of 2025, TPG sold Samhwa to KKR for 800 billion KRW (approximately 4.136 billion RMB), achieving nearly three times the investment return in less than two years, netting over 3 billion RMB [2][8] - Samhwa, established in 1977, evolved from a small workshop to a leading manufacturer in the Korean beauty packaging industry, known for its precision pump technology [4][6] - TPG's investment strategy involved identifying undervalued assets, implementing operational improvements, and optimizing business focus, which significantly enhanced Samhwa's value before the sale [8][7] Company Overview - Samhwa is recognized as one of the top three manufacturers of cosmetic containers and pumps in South Korea, with major clients including Estée Lauder, LVMH, L'Oréal, and Shiseido, contributing 58% of its sales [4][6] - The company gained the title of "Pump King" after securing a ten-year exclusive supply contract with Estée Lauder [4] Investment Strategy - TPG acquired 100% of Samhwa for 300 billion KRW (approximately 1.551 billion RMB) from the founding family and a private equity fund in November 2023 [4] - TPG's successful investment history includes notable cases such as the turnaround of Continental Airlines and Burger King, showcasing its ability to enhance operational efficiency and profitability [5][6] Operational Improvements - TPG implemented several operational changes at Samhwa, including reducing the number of low-margin SKUs from 1,200 to 400, optimizing global production capacity, and launching a digital customization platform called "PumpLab" [7][8] - The introduction of a new management team aimed to professionalize operations and decision-making processes, moving away from a family-run model [7] Financial Performance - Upon selling Samhwa, TPG not only received 800 billion KRW from the equity sale but also an additional 100 billion KRW in special dividends, resulting in a net gain of 600 billion KRW (approximately 3.1 billion RMB) [8] - The internal rate of return (IRR) for TPG's investment in Samhwa was approximately 75%, with a cash-on-cash return multiple (MOIC) of 3 times [8]

Core Viewpoint - Zhongshan Lianchang Spray Pump Co., Ltd. has identified unauthorized companies exhibiting counterfeit products that infringe on its patents at the 29th Shanghai International Beauty Expo, confirming that the structure and functional parameters of these products are identical to its patented designs [1][3] Company Summary - Zhongshan Lianchang was established in 1994 and is headquartered in Zhongshan, Guangdong Province, focusing on the research, production, and sales of daily chemical lotion pumps, spray pumps, aerosol valves, and cosmetic packaging [3] - The company became a supplier for Procter & Gamble in 2004, gradually entering the international daily chemical market, with current partnerships including major brands such as Procter & Gamble, Unilever, L'Oréal, and Proya [3] Patent and Technology Summary - The patent in question pertains to Zhongshan Lianchang's all-plastic pump, which replaces metal springs and glass beads with plastic materials (PP/HDPE), achieving 100% recyclability of the pump head [3] - The patented design includes features such as a back-suction anti-drip mechanism, which automatically recovers excess cream, as well as impact-resistant and water-resistant structures [3] Industry Context - Patent infringement has become a significant issue in intellectual property rights, with the National Intellectual Property Administration reporting 31,238 administrative cases of patent infringement from January to August 2024, with Zhejiang, Guangdong, and Shanghai being the most affected regions [3] - In the daily chemical industry, patent infringement cases often involve trademark counterfeiting, particularly in high-frequency consumer goods like shampoos and skincare products [5] - Zhongshan Lianchang's actions to protect its intellectual property not only defend its core technology but also support the innovation ecosystem within the industry, especially in light of global environmental trends and the "dual carbon" goals [5]