Landing in Shanghai, Selling 100 Million Bags in 7 Months... 7 Companies Reach New Heights, Plus 4 Awards | FreeS Fund Blackboard · May

On the first working day of June, we're releasing the May edition of the FreeS Fund newsletter. We hope to share our latest updates with friends who have long followed and supported us:

• FreeS Fund held a small salon at Shanghai Zhangjiang Inno Workshop, announcing the opening and operation of its Shanghai office.
• FreeS Fund launched a new series for portfolio CEOs called "Frees Tavern."
• FreeS Fund was named to the "New Consumption Industry Best Investment Institutions" Top 20, with founding partner Feng Li selected for the "Consumer Industry Best Investor" Top 20; FreeS Fund also received "2019 China's Growth-Stage VC Investment Institution TOP 20."

We're also sharing good news from the FreeS Fund family:

• Deep Tech: M-Star Technologies successfully debuted its ultra-low-power GNSS module JEDI-100 at IoT Tech Expo Global in London, and released the JEDI-200 — a new ultra-low-power positioning module designed for IoT applications — in Silicon Valley; NextVPU became one of the first companies to join Microsoft's AI and IoT Lab; a smart robot named Daji equipped with SoundAI's far-field intelligent interaction system SoundAI Azero hit the market; Shangyue and Zhaopin jointly built an online, digital procurement platform; DataPipeline partnered with Moka to help optimize Moka's SaaS intelligent recruitment management system.
• Consumer: Three Squirrels released a daily nut consumption big data report, with its daily nut product becoming Tmall's top-selling snack item.
• Awards: Xinyi Information Technology's narrowband IoT communication chip (NB-IoT) project won second prize in the 2019 "Win in Nanjing" Overseas Talent Entrepreneurship Competition finals.

In 2019, FreeS Fund will continue to stay grounded, forge ahead, focus on long-term value, and do what is right rather than what is easy.

FreeS Fund News

1

FreeS Fund Shanghai Office Opens and Begins Operations

On May 24, 2019, FreeS Fund held a small salon at Shanghai Zhangjiang Inno Workshop, announcing the opening and operation of its Shanghai office. Shanghai — once known as the "Ten-Mile Foreign Settlement," now China's largest economic city — has long been the center of East China. The new office reflects FreeS Fund's vision to better discover and serve outstanding entrepreneurs in the region.

FreeS Fund partner and head of East China Jiong Shen is an "old Shanghai hand." Before joining FreeS Fund, he spent over ten years in investing, focusing on two pillar industries in the Pudong Zhangjiang area — semiconductors and biomedicine. His addition will strengthen FreeS Fund's investment presence in semiconductors and biomedicine, better integrate entrepreneurial and investment resources in East China, and deepen partnerships. "Shanghai is the center of East China. A large number of excellent entrepreneurial teams gather here, and with the STAR Market launching in Shanghai last year, the market environment is also improving. We are firmly optimistic about Shanghai, about East China, and about technological innovation," Shen said. (Full report: [FreeS Fund] FreeS Fund Lands in Shanghai, Shanghai Office Begins Operations | FreeS Fund News)

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FreeS Fund Launches "Frees Tavern," a New Series for Portfolio CEOs

"Frees Tavern" is an intimate gathering for portfolio CEOs launched by FreeS Fund. Unlike typical sit-down events with brain-burning presentations, "Frees Tavern" encourages venting and listening — and genuine support. "The addiction of entrepreneurship, the bitterness of entrepreneurship — let's talk over drinks."

On May 23, 2019, "Frees Tavern" opened its doors in Shanghai. About a dozen Shanghai-based CEOs from the FreeS Fund family gathered to drink, eat crawfish, chat, and commiserate. Uncle Feng (Feng Li) reflected on how hard entrepreneurship is, recalling how handsome one CEO looked when they first met — now his face shows more wear. Someone joked, "He used to look like Feng Shaofeng, now he's unrecognizable." When asked what it's like to start a company with her husband, one founder replied, "I often remind myself, 'Even though we disagree a lot at work, I still like you in life.'" Everyone drank and talked to their hearts' content, looking forward to the next gathering.

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FreeS Fund Award News

▍ FreeS Fund Wins Two Pencil Data "True Rankings" Awards

On May 31, at the New Consumption Trend Conference hosted by Pencil Data, the "Pencil Data True Rankings — 2019 New Consumption Industry Trend Rankings" were announced. FreeS Fund was named to the "New Consumption Industry Best Investment Institutions" Top 20, with founding partner Feng Li recognized as one of the "Consumer Industry Best Investors" Top 20.

The second edition of the True Rankings launched in early April, with a 50-day selection process. This list focused on the new consumption sector, maintaining principles of objectivity and fairness, committed to discovering innovative enterprises with unique influence in broad consumer areas including food, clothing, housing, transportation, entertainment, education, and light medical care — while also finding the "matchmakers" behind them: investment institutions and investors with deep deployment in the new consumption industry. (Full report: [Pencil Data] Pencil Data True Rankings — 2019 New Consumption Industry Most Influential Investment Institutions TOP 20 List Unveiled)

▍ FreeS Fund Named "2019 China's Growth-Stage VC Investment Institution TOP 20"

In late May, the China Venture Capital Research Institute released the CVCRI · 2019 China Venture Capital Annual Awards · Golden Investment Awards, with FreeS Fund receiving "2019 China's Growth-Stage VC Investment Institution TOP 20."

As a well-known service platform in China's venture capital industry, the China Venture Capital Research Institute relies on its deep research foundation and extensive market survey data. Through multi-dimensional, quantified, and objective data assessment including data research, data verification, performance evaluation, and industry influence, it has created the China Venture Capital Annual Awards · Golden Investment Awards, aiming to honor annual benchmarks in the venture capital industry, record role models in the venture capital market, and promote the development of venture capital. (Full report: [China Venture Capital Forum] CVCRI · 2019 China Venture Capital Annual Awards · Golden Investment Awards | Glory Unveiled)

FreeS Fund Perspectives

▍ Feng Li: Seizing Opportunities in China's Consumer Market and Supply Chain Advantages

From a retail perspective, China has a very unique environment and soil. At present, and for the next 5, 10, or even more years, three things coexist in China: the largest population, the world's biggest consumer market, and the world's most complete industrial chain. This will give rise to a greater number of brands that grow faster and can become larger than other populous countries experienced at similar development stages. (Full report: [EO Intelligence] FreeS Fund Feng Li: To Successfully Build a Brand, Seize China's Consumer and Supply Chain Opportunities | New Retail for Home Furnishings)

▍ Yongcheng Yang: Investing Helps More People Create Value for Society

Joining FreeS Fund was largely a natural attraction based on shared values. We both have an unshakable conviction that whatever we do, whatever we may face, we still insist on doing certain things and not doing others.

As an executive, you're personally executing and achieving goals while helping the company realize value; becoming an investor is a step further, with even greater social responsibility. Because you're helping more entrepreneurs achieve their dreams, helping more people create value for society, and of course also maximizing the efficiency of capital use — that is investing. (Full report: [FreeS Fund] FreeS Fund Lands in Shanghai, Shanghai Office Begins Operations | FreeS Fund News)

FreeS Fund Family Updates

1

Deep Tech | M-Star Technologies Launches Two New Ultra-Low-Power GNSS Modules

From April 25 to 26, Kolmostar made its successful debut at IoT Tech Expo Global 2019 in London — one of the world's largest IoT trade shows — showcasing its ultra-low-power GNSS module JEDI-100. Over the two-day event, the London expo drew more than 300 exhibitors and 9,500 attendees to explore the latest technological innovations in IoT and their applications across transportation, logistics, automotive, manufacturing, energy, government, and smart cities. Kolmostar engaged productively with multiple IoT ecosystem partners, companies, and industry experts, establishing connections to further explore potential business partnerships and collaborations.

On May 14, local time in the western US, Kolmostar unveiled its latest ultra-low-power GNSS module JEDI-200 at IoT World, held at the Santa Clara Convention Center in Silicon Valley. The module is designed specifically for IoT applications such as asset trackers, wearables, smart agriculture, and smart cities. (Full reports: [Kolmostar] Kolmostar's Ultra-Low-Power GNSS Module JEDI-100 Makes Successful Debut at IoT Tech Expo Global in London; [Kolmostar] Kolmostar Unveils New Ultra-Low-Power Positioning Module JEDI-200 for IoT Applications in Silicon Valley)

2

Deep Tech | NextVPU Among First Companies to Join World's Largest AI & IoT Lab

On May 15, 2019, the Microsoft AI and IoT Lab — a collaboration between Microsoft (China) and Shanghai Zhangjiang Group — officially opened on Zhangjiang AIsland and began operations, with an inaugural cohort of 30 domestic and international enterprises and startups. This marked Microsoft's fourth global lab of its kind. NextVPU was among the first companies selected to join. (Full report: [NextVPU] With Microsoft's Backing, NextVPU Joins World's Largest AI & IoT Lab)

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Deep Tech | SoundAI Powers Tencent's Next-Gen Honor of Kings Smart Robot

The 2019 Tencent Global Digital Ecosystem Conference took place as scheduled in Kunming, Yunnan, where Tencent launched its next-generation Honor of Kings smart robot — Daji "Starlight Enchantress." "At your command, master," this robot equipped with SoundAI's far-field intelligent interaction system SoundAI Azero transforms into a conversational real-time encyclopedia, attentive assistant, and playful companion in daily life. It achieves high-fidelity recreation of the licensed game character's appearance and voice while delivering an outstanding intelligent interactive experience for players. Leveraging its self-developed far-field intelligent interaction system SoundAI Azero, SoundAI can create highly personalized smart robot solutions for clients, potentially bringing more beloved IP characters into everyday life. (Full report: [SoundAI] Tencent Smart Robot Daji Goes Live — SoundAI Brings New Tech to Meet You Among the Stars)

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Deep Tech | Shangyue Partners with Zhaopin to Build Online, Digital Procurement Platform

On May 8, 2019, the "Zhaopin Enterprise Procurement Digital Platform Project Signing Ceremony" was held in Beijing, attended by Cheng Jin, VP of Zhaopin Group, and Miao Feng, founder and CEO of Shangyue. Going forward, Shangyue will provide industry-leading procurement digitalization solutions to help Zhaopin build a dedicated enterprise procurement mall, more efficiently connecting suppliers with procurement users and extending the e-commerce procurement experience to all employees. (Full report: [TMTpost] Zhaopin and Shangyue Build Online, Digital Procurement Platform)

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Deep Tech | DataPipeline Partners with Moka to Enhance Recruitment Efficiency

Moka and DataPipeline have launched a collaboration built on professional data integration and application foundations. Using a distributed underlying framework, DataPipeline provides batch-and-stream data fusion and management services to achieve sub-second, near-real-time data processing. This helps Moka rapidly establish data pipelines, enabling enterprise HR teams to break down barriers with IT departments. Through self-service BI, teams can access data more quickly and conveniently, analyzing and comparing large volumes of resume data from various channels to provide scientific data support for talent acquisition insights, while significantly improving HR recruitment efficiency. (Full report: [DataPipeline] In the Era of Fast Data, Moka and DataPipeline Partner to Enhance Recruitment Efficiency)

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Consumer | Three Squirrels' Daily Nuts Become Tmall's Top-Selling Snack Item

On May 5, Three Squirrels released a big data report on its Daily Nuts product, which had become the highest-grossing snack item on Tmall. Since launching in September of the previous year, this upgraded Daily Nuts product has sold over 100 million bags, claiming the title of top Daily Nuts seller across all platforms and outselling the second and third-place competitors combined.

Behind this sales championship lies more than a year of product refinement by Three Squirrels' R&D team. The researchers first reengineered the product mix, conducting extensive formulation trials to optimize taste, appearance, and nutrition. They ultimately settled on a blend of six premium nuts and three dried fruits — a combination that distinguishes this Daily Nuts product from other mixed nuts on the market with more complete, balanced nutrition. Beyond that, the team established product standards far exceeding industry norms for kernel size, plumpness, and moisture content. Additionally, Three Squirrels thoughtfully developed a pregnancy-specific version to meet expectant mothers' nutritional needs. (Full report: [New Food Review] Three Squirrels' Daily Nuts Tops Tmall Snack Sales, Cumulative Sales Exceed 100 Million Bags)

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FreeS Fund Family Awards

▍Xinyi Information Technology's NB-IoT Communication Chip Project Wins Second Prize at Overseas Talent Entrepreneurship Competition

On May 7, the 2019 "Win in Nanjing" Overseas Talent Entrepreneurship Competition finals were held in Nanjing. Xinyi Information Technology advanced from the North American division to the finals, where it won second place. Vice Governor Guo Yuanqiang personally presented the certificate and trophy.

The competition brought together 33 entrepreneurial teams selected from 364 applicants across four international divisions — Munich, Singapore, Silicon Valley, and Beijing. Participants competed in fields spanning software and information services, biomedicine, energy conservation and environmental new materials, artificial intelligence, and future networks — all key industries and emerging sectors that Nanjing is actively developing. (Full report: [Xinyi Information Technology] 2019 "Win in Nanjing" Overseas Talent Entrepreneurship Competition: Xinyi Information Technology Project Wins Second Prize)

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FreeS Fund Family Perspectives

▍NextVPU's Feng Xin Peng: Behind the Thick Fog Lies a Mountain of Gold — As Captain, You Can Only Strain to See Farther and Adjust More Nimbly

For more than a decade, one key reason semiconductors struggled to generate returns was hardware oversupply. PCs were already powerful enough that ordinary consumers couldn't perceive meaningful CPU performance improvements, making them more willing to pay for software instead. But with advances in AI, existing hardware has fallen behind algorithmic development. Now, even modest hardware performance gains translate into noticeably better user experiences — and higher willingness to pay. At large companies, it's common for a chip to go from spring to autumn for mass production because of technical challenges encountered along the way. Competition among world-renowned semiconductor companies is fundamentally a war for talent.

Entrepreneurship is a process of responding to challenges as they come — problems always outnumber expectations. You finally recruit people, then face the organizational challenge of uniting them. You push forward, technical challenges arise, competition shifts dynamically. You want to do something more ambitious, you need to raise more money. Much of this can't be planned because there are too many variables. You're like a captain who knows there's a mountain of gold behind the thick fog, but you don't know which route will get you there safely. So all you can do is strain to see as far as possible and adjust as nimbly as you can. Only when you look back at those excruciating challenges do you realize what "what doesn't kill you makes you stronger" truly means. (Full report: [Southern People Weekly] Chip-Making Chronicle: "Everyone Has a Plan Until They Get Punched in the Face")

▍Onion Math's Yang Linfeng: Online education should be understood as an expansion of the boundaries of a person's learning experience

Looking at the big picture, the boundaries of socialization are becoming increasingly blurred — the walls between school, family, and society will keep being broken down and rebuilt. If you only see online education as an upgraded version of offline tutoring, you're thinking too small. But if you elevate your understanding of online education to how it expands the boundaries of a person's learning experience — freeing them from the constraints of their city, their access to teachers, their family environment — the significance becomes far greater. That's what Onion Math is truly trying to do.

We've been working to weave together technology and educational methods — whether that's multimedia tech, AI, pedagogical R&D, or cognitive psychology — into a rich human-computer interactive product. (Full report: [Jing Perspective] Going Downmarket, Cross-Border Integration... How Onion Math Plays Its "Upgrade" Card)

▍Chicecream's Lin Sheng: Consumers crave fresh stimulation; the era of blockbuster single products is over

The essence of a trend is taking a product to the extreme while constantly refreshing it. Why is creating a trend not that hard? First, the product can be different — strikingly different — in one specific way. There are plenty of examples: spicy strips, buldak noodles. As long as you make something the average consumer finds slightly off-putting, it'll grab attention. That attention easily turns into a trend during the trial phase. Second, create a topic that goes viral across the entire internet — this is harder, and it's the second path to trendiness. Third, build buzz through peripheral channels: find major influencers, cross over with other brands, get more people to endorse the new thing. Any of these can quickly capture consumer attention for a new brand or product and make it trend to some degree. That's the methodology for becoming "trendy."

Today, any private Chinese company with sales above 30 million yuan has dozens or even hundreds of SKUs. That's not a good thing, because the logic behind it is "produce everything." In recent years, China has rarely seen true blockbuster single products. Now if something sells 300 million or 1 billion yuan, that's considered decent. Blockbusters will become rarer, and accidental blockbusters even rarer. Because consumers need more fresh stimulation. So the era of blockbuster single products is over, and product lifecycles will shrink too.

Back when we made blockbusters, information was asymmetric and change was slow. Companies would pour 100 million yuan into promoting one blockbuster product. Once it reached scale, that product would enjoy a very long lifecycle. The company didn't need to keep investing heavily, but profits kept flowing. Today the risk is: we spend a fortune building a blockbuster, and even if it takes off, the payoff window has gotten much shorter. That's terrifying. So our view is: flavors don't need to be memorable. We want people to remember Chicecream, not a particular Chicecream flavor. (Full report: [FBIF Food & Beverage Innovation] After the Trend, Ice Cream Brand Chicecream Wants to Become Consumers' "Habit")

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▲ IPO, New Zealand Team Building, Funding, New Launches... 2019: Strive, Err, Fall, Triumph | FreeS Fund Monthly · January

▲ IPO, 7 Insights, 20+ Awards... 2019: Keep "Doing What's Right, Not What's Easy" | FreeS Fund Monthly · December

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