3 Companies Secure Additional Funding, 1 Lists on NYSE, 6 B2B Firms Win Multiple Awards | Source Code Capital Monthly · October

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Briefing

"Funding"

Meituan closes new $4 billion funding round

At $30 billion valuation

Qudian successfully lists on NYSE

Zhangshang Fucai raises RMB 20 million angel round

The JD.com of renovation materials

Huishoubao completes RMB 300 million Series B

"Updates"

CHJ Automotive launches "shared mobility" pilot in the US

Juli Xinfang enters strategic partnership with JD.com Real Estate

"Quotes"

Going Head-On: Yiming Zhang's information DNA

Tan Long: Either "make it happen" or "die trying"

Xia Xin: High sales volume alone isn't necessarily a good thing

"Honors"

Meituan, ErGeng win multiple awards at 10th ROI Festival

Smart Parking ETCP ranks Top 20 in "2017 China's 50 Most Investment-Worthy Enterprises" and Top 20 in 2017 China Parking Industry "Golden Mooring Award"

Zhirong Group, Smart Parking ETCP shortlisted in Beijing News' "2017 China Maker of the Year 45"

Yijiupi, Baibu, Ruigu, Cijinrong, Zhaomei.com, Wanhua Mall ranked on multiple lists at 2017 2nd China B2B Summit

1

Milestone

Meituan closes new $4 billion funding round

At $30 billion valuation

On October 19, Meituan — China's largest internet + lifestyle services platform — announced the completion of a new $4 billion funding round at a post-money valuation of $30 billion. Tencent led the round, with new strategic investor The Priceline Group joining. Other major investors included Sequoia Capital, GIC, Canada Pension Plan Investment Board, Trustbridge Partners, Tiger Global, Coatue Management, and China-UAE Investment Cooperation Fund, among other well-known domestic and international institutions.

"After completing this round, the company has entered an entirely new stage," said Xing Wang, CEO of Meituan. "Upholding our mission to help people 'eat better, live better,' Meituan will take on greater social responsibility, drive employment growth, and build a more open and collaborative social enterprise that develops in coordination with society as a whole." To date, Meituan Waimai has directly created over 500,000 delivery jobs. Among these active riders, 31% were previously employed in traditional industries and 10% came from impoverished regions, with 3 million riders having taken orders cumulatively. Following this round, Meituan will increase investment in frontier technologies such as artificial intelligence and autonomous delivery, making high-tech accessible and further advancing the upgrade of modern service industries.

2

Qudian successfully lists on NYSE

On the morning of October 18 US time, Source Code Capital portfolio company Qudian Inc. (NYSE: QD), a leading Chinese fintech firm, officially listed on the New York Stock Exchange, becoming the first overseas-listed consumer finance installment company from China. Qudian offered 37.5 million ADSs at $24 per share. Before underwriters exercised their over-allotment option (greenshoe), the IPO already reached $900 million in size, giving the company a market cap exceeding $7.9 billion, or roughly RMB 52 billion. Under the over-allotment option granted to underwriters, they may purchase up to an additional 5.625 million ADSs within 30 days of the final prospectus filing.

Data shows that in the 12 months ended June 30, 2017, the group's transaction volume exceeded RMB 60 billion. In the first half of 2017, Qudian's total revenue reached RMB 1.833 billion, up 393% year-over-year from RMB 372 million — nearly 4x growth. Net profit was RMB 974 million, up 698% from RMB 122 million in the same period last year — nearly 7x growth. The first-half 2017 net profit already far exceeded the full-year 2016 level, making it China's #1 small-denomination cash credit loan service provider.

3

Zhangshang Fucai raises RMB 20 million angel round

The JD.com of renovation materials

Zhangshang Fucai, a B2B marketplace for renovation materials, recently raised a RMB 20 million angel round from Source Code Capital and Buhuo Ventures. The funding will mainly be used for seed user acquisition, model validation, and sales growth. Founder & CEO Chengkun Xue told 36Kr that Zhangshang Fucai is, simply put, the JD.com of renovation materials.

Yuemei Lü, VP at Source Code Capital's investment team, said of the investment: "The materials industry is at a stage ripe for transformation. New models can create significant operational value, margins are sufficiently large, and no strong brands have yet emerged. We're very optimistic about Mr. Xue's team's capabilities and experience being applied in this industry."

4

Huishoubao completes RMB 300 million Series B

Targeting China's hundreds-of-billions used phone recycling market

Shenzhen Huishoubao Technology Co., Ltd., focused on China's used phone recycling market, completed the industry's largest-ever RMB 300 million Series B round in September 2017. Previously, Huishoubao had already raised the industry's largest angel and Series A rounds. This round was led by Strait Capital, with Source Code Capital, Chengwei Capital, CITIC Capital, and SMC following. Used phone recycling alone represents a market of hundreds of billions of RMB in China. Currently, two main models exist: C2B, represented by professional used phone recycling platforms like Huishoubao, and C2C, represented by idle goods trading platforms like Idle Fish and Zhuanzhuan. The two models both serve different user needs and simultaneously involve cross-cutting cooperation.

What's New

1

CHJ Automotive to enter the US

Launching "shared mobility" pilot in San Francisco

On October 11 US Pacific Time, CHJ Automotive formally signed a letter of intent with US car-sharing operator SCOOT Networks. The two parties will use CHJ Automotive's smart light electric SEV as the basis to launch a shared mobility service pilot in the US.

CHJ Automotive is dedicated to building smart electric vehicles and will launch a global mobility services brand, promoting environmentally friendly and convenient smart shared mobility. In June this year, CHJ Automotive already announced the launch of shared mobility services in Paris. This collaboration with SCOOT to launch the pilot project represents CHJ Automotive's first step in deploying shared mobility services in the US. Going forward, the two parties will explore expanding this model to other cities in the US and Europe, offering new possibilities for addressing traffic congestion and parking challenges in major cities.

2

Juli Xinfang enters strategic partnership with JD.com Real Estate

Connecting the full online-to-offline new home transaction process

On the afternoon of October 24, JD.com Real Estate's launch event, themed "JD Selected Homes, Smart Enjoyment," was held at JD.com Group headquarters. Zeng Fuhu, General Manager of JD.com Mall's Lifestyle Business Unit Real Estate Division, signed strategic cooperation agreements on-site with Juli Xinfang, Country Garden, Bluetone, Sino-Ocean, Sohu Focus, and Dasoujia. Regarding JD.com's strategic move into real estate, the company stated at the launch that real estate enterprises no longer face sales challenges but operational ones. The launched JD.com Real Estate will create new integration between real estate and e-commerce, covering residential, commercial, and specialty real estate markets, building a service platform for the great real estate era, and aiming to become the dual champion in traffic and online transaction volume within five years.

It is understood that Juli Xinfang has insisted on a data-driven model using the most authentic data since its founding, with all customers coming from online channels. Juli Xinfang CEO Wang Peng said in a previous speech that Juli Xinfang's self-operated new home e-commerce closely resembles JD.com's approach. "JD.com's products correspond to Juli Xinfang's online property listings, JD.com's logistics correspond to our professional services, and like JD.com, we also have after-sales service — we're still responsible for issues that arise after signing."

Quote

Yiming Zhang (Founder & CEO of Toutiao)

Tan Long (Founder & CEO of ETCP Group)

"For me, from day one of founding ETCP, I wake up every day thinking about how to keep the company alive, and only then about thriving. I call this 'standing at the edge of an abyss, walking on thin ice.' Danger and temptation often coexist. If you're not vigilant enough, you won't sense danger the moment it arrives, and if you don't stay clear-headed in the face of temptation, death won't be far away. When facing difficulties, remember: what you choose not to do matters more than what you do. Never abandon your company's core mission at any time, and stay true to your original aspiration. At the same time, entrepreneurs must always maintain command of their fundamental operations and central business. And keep learning continuously, maintaining exploration of your industry and sensitivity to trends. Because the industry needs us to pioneer and lead. As a veteran entrepreneur, throughout ETCP's journey, I've always held this belief: either make it happen, or 'die trying.'"

Xia Xin (CEO of Jiaoer Waimai)

High sales volume alone isn't necessarily a good thing. What matters is serving every customer well. From a platform rules perspective, sales volume has become less important than in the past: previously, merchant traffic could only be obtained through ranking position, and sales volume determined ranking — only high sales could get you more customers. But now the ranking rules have changed, the weight of sales volume has weakened, and the ability to gain customers through ranking has also declined. There are now more customer acquisition methods on the platform. We've passed the stage of purely pursuing sales volume; the comprehensive operational health index is what should be your focus.

Honor & Awards

1

Meituan, ErGeng win multiple awards

at 10th ROI Festival

On October 19, the 10th ROI Festival — the world's first business creativity awards ceremony — was successfully held in Shanghai. A marketing case submitted by Meituan's dining platform strategy won silver in the E-commerce Platform Media category and bronze in the Social Marketing Media category. ErGeng, through its high-quality native short video content marketing, won one gold, one silver, and one bronze in the Business Creativity Awards, one bronze in the Best Business Creative Content Award, and placed third in the inaugural "ROI Festival Brand Creative Brief Competition."

This year's ROI Festival surpassed all previous editions in scale and influence. Compared to last year, participating companies and entries grew 24.8% and 3.5% respectively, with over 558 companies submitting 3,117 works. It also featured the strongest judging panel to date, with 126 final-round judges — the most geographically diverse and industry-wide jury among Asian creative awards.

2

Smart Parking ETCP ranks on

"2017 China's 50 Most Investment-Worthy Enterprises" Top 20

2017 China Parking Industry "Golden Mooring Award" Top 20

On October 26, Zero2IPO's 12th China Venture 50 selection conference concluded in Beijing. As China's first enterprise selection from an investment dimension, it has become the most authoritative reference standard for judging high-growth enterprise investments in the industry. This Venture 50 list targets pre-IPO companies that have raised Series A or beyond, representing the barometer of the year's most growth-potential enterprises. Through its transformation of traditional parking and establishment of a smart parking large-platform ecosystem, ETCP ranked in the Top 20 and became the only selected enterprise in the smart parking industry.

That same day, the 5th Urban Static Traffic and Smart Parking Forum & China Parking Industry "Golden Mooring Award" ceremony was held in Beijing. The "Golden Mooring Award," an important award in China's parking industry, is regarded as one of the most authoritative security industry review projects domestically. Smart Parking ETCP was named to the "Golden Mooring Award" Top 20 enterprises list for its outstanding contributions to the smart parking field.

3

Zhirong Group, Smart Parking ETCP

shortlisted in Beijing News' "2017 China Maker of the Year 45"

The "Finding China Makers" annual roadshow event, created by Beijing News, has concluded. "Finding China Makers" aims to find entrepreneurs who will change the world and great companies that will shape the future. This year, over 1,000 entrepreneurial projects participated in the sea selection, covering cultural entertainment, internet film and television, new retail + platforms, smart cities, frontier technology, big health, internet education, enterprise services, consumption upgrade, and internet finance. Nearly 200 projects entered the 2017 annual roadshow round. Based on on-site judges' scoring, Zhirong Group and Smart Parking ETCP successfully made the annual 45.

4

Yijiupi, Baibu, Ruigu

Cijinrong, Zhaomei.com, Wanhua Mall

ranked on multiple lists at 2017 2nd China B2B Summit

On October 27, under the guidance of the National Industrial Information Security Development Research Center and China E-Commerce Association, and hosted by B2B Neican, the 2017 2nd China B2B Summit & 1st China B2B Expo was grandly held. Over 2,000 B2B industry elites from across the country participated in this annual B2B industry event, witnessing the release of five major weighty lists on-site.

Among them, Yijiupi, Baibu, Ruigu, Zhaomei.com, and Wanhua Mall were named to the "2017 China B2B Top 100 Enterprises" list. Cijinrong was named to the "2017 China B2B E-commerce Top 30 Service Providers" list. Yijiupi Founder & CEO Chaocheng Wang, Baibu Founder & CEO Zhenhong Zhao, Zhaomei.com Founder & CEO Song Cui, Ruigu Founder & CEO Yang Gao, and Wanhua Mall Founder & CEO Lei Li were named to the "2017 China B2B 100 Industry Leaders" list.

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