Source Code Capital portfolio company Kaishan announced the completion of a 100 million RMB Series B funding round, with existing investor Source Code Capital continuing to increase its stake.

On June 16, Kaishan, a new-style baijiu brand, announced the completion of a RMB 100 million Series B round led by YuanSheng Ventures, with follow-on investments from existing shareholders Hillhouse and Source Code Capital. Taihe Capital served as the exclusive financial advisor. Source Code Capital, which led Kaishan's Series A+ round, continued to increase its stake in this round.

Tang Wei, founder and CEO of Kaishan, stated that securing this funding amid the pandemic reflects investors' recognition of Kaishan's commitment to comprehensive innovation, from product R&D to marketing models. The proceeds will primarily be used to expand distribution channels and deepen brand influence among target consumers, ensuring Kaishan's continued leadership in the new-style baijiu category.

About Kaishan

Kaishan positions itself as a new Chinese-style pioneer baijiu brand. After nearly two years of product development, 68 R&D iterations, and nearly 100 process improvements, Kaishan created its proprietary "Jingxiang" (pure aroma) baijiu style. It has obtained a nationally recognized proprietary aroma enterprise standard and became the first to successfully establish a new aroma industry standard.

Since its official launch in November 2018, Kaishan surpassed monthly sales of RMB 10 million in less than a year. The company now offers three product lines — "Kaishan · Seven Sages," "Kaishan · Nine Sons," and "Kaishan · Eighteen Skills" — spanning 42% and 52% ABV tiers. In the first half of 2020, Kaishan launched several new products including "Kaishan Yiyin," "Kaishan Mantanghong," and "Kaishan Xishangmeishao," demonstrating unusually strong product development capabilities for the industry.

Kaishan · Nine Sons product line

Kaishan maintains its focus on consumers in their 20s and 30s who are still developing their palates, employing an integrated online-offline marketing approach to open up consumption channels and gradually building a pioneering baijiu brand image with strong spiritual resonance.

In 2019, Kaishan swept three major awards — "China Alcohol Industry Best Growth Enterprise," "Best Innovation Award," and "Best New Product Award" — while also receiving the "Annual Business Transformer" designation at the China Finance Summit and ranking among the "Top Ten Innovative New Economy Sectors" in People's Daily's Brand Power China weekly. Additionally, Kaishan is one of only two domestic brands to secure co-branding rights for the "600th Anniversary of the Forbidden City" collection; the other is China's most renowned traditional baijiu brand.

Having achieved all this in just one year, Tang Wei reflected: "Building a baijiu brand means becoming friends with time. While our first year post-launch went well and we withstood the pandemic test, the road ahead remains long. In this industry, overnight success is impossible. Identifying a direction and delivering consistently and steadily may ultimately realize a grand and beautiful vision. This is the belief driving everyone at Kaishan. 'Trends come and go, but style endures.' With this conviction, Kaishan hopes to craft, with artisan hands, a new classic for Chinese baijiu that faces the future."

Michael Mao, founding partner of lead investor YuanSheng Ventures, commented: "We see a structural opportunity emerging in the trillion-RMB baijiu consumption track. Established brands are aging, and marketing channels are shifting, creating openings for new brands. Through groundbreaking process innovation, Kaishan has developed an aroma profile better suited to younger consumers' preferences, offering a fresh choice for mid-to-high-end baijiu drinkers. Founder Tang Wei and his team possess exceptional strategic vision, deep industry understanding, and relentless product obsession. We are very optimistic about the company's prospects — Kaishan's potential is boundless."

Chang Kaisi of Source Code Capital stated: "Baijiu is a long-distance race. For male consumers, building a new brand requires not only excellent products as an entry point but also the test of time. The Kaishan team has built on comprehensive product innovation to make sustained investments in channels and brand, continuously accumulating brand equity. As an existing shareholder, we are pleased to see the Kaishan team persist in doing the hard but right things, and we have full confidence in the company's development."

Tang Ruiling, director at Taihe Capital, said: "Generational shifts in consumption provide the underlying driver for consumer goods transformation. Meanwhile, as front-end channels and media further converge, and back-end supply chains undergo deeper integration, the opportunities we see extend beyond new products and new brands to include more efficient product-service iteration and more intelligent resource organization — bringing integrated transformation opportunities. As a social currency, baijiu carries strong spiritual attributes of culture and heritage; its innovation and brand cultivation demand extraordinary persistence and patience. We look forward to Kaishan, with its artisan spirit, continuing to create value for the pioneering evolution of Chinese baijiu."

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