Source Code Capital Portfolio Company ZNLH Announces 1.5 Billion RMB Strategic Financing, Led Series B by Source Code Capital

源码资本·July 30, 2019·0·0

Transforming the traditional engineering equipment industry, empowering the entire upstream and downstream value chain, making engineering more efficient and labor more fulfilling.

On July 30, 2019, ZNLH held its "Gathering Energy, Building Dreams Together" financing launch event in Nanjing. That day, nearly 100 leaders and guests gathered from the Nanjing Municipal Development and Reform Commission, Nanjing Local Financial Supervision and Administration Bureau, Nanjing Yuhuatai District People's Government, China (Nanjing) Software Valley Management Committee, financial institutions, ZNLH suppliers, and investors to witness this milestone moment for the company.

Tianli Yang, Founder & CEO of ZNLH

At the event, Tianli Yang, Co-founder and CEO of ZNLH, announced: "Since completing our $50 million Series B equity round in April 2019, led by Source Code Capital with Buhuo Ventures participating, ZNLH has closed a RMB 150 million Series B+ round led by Five Star Holdings. Our cumulative Series B equity financing now exceeds RMB 500 million. At the same time, ZNLH has secured over RMB 1 billion in strategic financing from leading domestic financial institutions including Industrial and Commercial Bank of China Limited, China Merchants Bank, Bank of Jiangsu, Bank of Ningbo, Guian Hengxin, and Huayun Financial Leasing." At the launch, ZNLH signed strategic cooperation agreements with ICBC, China Merchants Bank, Bank of Jiangsu, and Bank of Ningbo.

Tianli Yang expressed his sincere gratitude to investors and financial institutions for their support and trust, and outlined ZNLH's development model and future strategic layout to attendees. As an integrated engineering equipment service provider combining technology, data, and platform capabilities, ZNLH has seized industry trends since its founding, insisting on technology empowerment and data-driven operations. By leveraging internet, IoT, big data, and AI technologies to upgrade the traditional engineering equipment industry, the company has gradually addressed structural problems such as low asset utilization efficiency and supply-demand mismatches. Through the evolution of its platform model, ZNLH empowers upstream and downstream industry players, making engineering more efficient and labor more rewarding.

In his remarks, Xingshi Wang of Source Code Capital stated that ZNLH is a typical representative of the firm's investments in the industrial internet sector. Under the combined forces of urbanization and industrialization, the arrival of the Lewis turning point, and intelligentization, aerial work platforms have begun rapidly gaining traction. As an industry leader, ZNLH insists on empowering the industry through technology, driving operations with data, and reconstructing the industry supply chain. We believe that as construction machinery represented by aerial work platforms becomes increasingly widespread, ZNLH will become a globally leading construction machinery service platform.

Xingshi Wang, Source Code Capital

Chen Jinhua, Vice President of ICBC Nanjing Branch, spoke on behalf of the financial institutions. He stated that ICBC attaches great importance to its cooperation with ZNLH, and that this strategic cooperation agreement reflects both the bank's original mission of supporting economic development through finance and a deepening of the partnership between ICBC and ZNLH. ICBC will fully leverage its comprehensive, group-level advantages, coordinating with subsidiaries such as ICBC Leasing, ICBC Investment, and ICBC Wealth Management to vigorously support ZNLH's development through multiple channels.

Gu Tao, General Manager of JLG Industries Asia Pacific, spoke on behalf of suppliers. He stated that ZNLH is one of JLG's most important strategic partners in the Asia Pacific region and globally. He expressed confidence that through deeper cooperation between ZNLH and JLG, Chinese users will experience more attentive and meticulous aerial work platform rental services, and that both parties will continue to drive progress for themselves and the industry while shouldering the mission of leadership in aerial work platforms.

Wang Jianguo, Chairman of Five Star Holdings, offered his congratulations to ZNLH. He noted that Nanjing enterprises face a new wave of development dividends in the industrial internet era, and that ZNLH has effectively integrated internet and internet technologies in this 2.0 phase, using data-driven operations to achieve digital management across all business processes — giving ZNLH tremendous potential.

Li Zhujie, Founding Partner of Buhuo Ventures, stated that against the macro backdrop of China's economic, technological, and industrial upgrading, and given the emerging gap in China's working-age labor force, ZNLH's data-driven supply chain creates synergistic value for upstream and downstream industry players, representing unique value and high competitive moats. ZNLH is already a leading enterprise in China's construction machinery rental industry and a typical representative of this wave of industrial internet transformation.

Image source: ZNLH

This financing round will further enhance ZNLH's customer service capabilities, accelerate the adoption and application of aerial work platforms in China, and advance the transformation and upgrading of the country's construction machinery industry.

ZNLH's development has received strong support from the Nanjing Municipal People's Government, Nanjing Yuhuatai District People's Government, and China (Nanjing) Software Valley Management Committee. Nanjing's implementation of an innovation-driven development strategy and its upgraded "mass entrepreneurship and innovation" initiative have created an excellent environment and fertile ground for the convergence of innovation resources and the cultivation of innovative enterprises. The success of this launch event demonstrated to all sectors of society the favorable venture capital environment in which Nanjing's government, financial institutions, and enterprises work together for mutual benefit.

About ZNLH:

Since its founding, ZNLH has completed Pre-A, A, B, and B+ rounds of financing, established strategic partnerships with domestic and international equipment manufacturers (JLG, LGMG, Haulotte, Sinoboom), and grown its fleet to over 10,000 units. Its marketing network covers 20 provinces, 4 municipalities directly under the central government, and 175 prefecture-level cities, with 60 warehousing, logistics, and service support centers, providing safe, efficient, and economical one-stop aerial work construction solutions to over 10,000+ customers.

ZNLH has received honors including "China's Top Ten Aerial Work Platform Rental Brands," "China's Top Ten Rental Enterprises," "Fastest Growing Enterprise in Nanjing Unicorn and Gazelle Enterprise Club," and "China Aerial Work Equipment Rental Industry Annual Most Growth Potential Enterprise Award," and was elected rotating president unit of the Construction Machinery Leasing Branch of China Construction Machinery Association.

Going forward, ZNLH will continue to build new intelligent industrial ecosystems and smart construction site scenarios powered by big data, artificial intelligence, IoT, and other frontier technologies, leading industry transformation.