4 Companies Close Funding Rounds, 7 Firms Undergo Strategic Upgrades: Code Brain Issue 7 Breaks Down WeChat Ecosystem and Mini Program User Acquisition | CodeHui Journal · August

源码资本·August 31, 2018·0·0

Four years since Source Code Capital's founding, the many portfolio companies in its extended family have grown into a thriving forest. The "Ma Hui" has also become a platform for Source Code Capital's LPs, partners, and entrepreneurs to connect and exchange ideas. *Ma Hui Journal* is here to record the small steps of progress made by our friends, share the joy of growth, and look forward to an even brighter future.

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Readers

Four years since Source Code Capital's founding, the portfolio has grown into a thriving ecosystem, and the Code Society has become a platform for our LPs, partners, and founders to connect. Code Society Chronicle is here to record our members' progress, share in their growth, and look toward an even brighter future.

gust

Code

Society

Chronicle

Briefing

"Funding"

YiHang announces RMB 220 million Series B — Source Code Capital backs intelligent mobility

Baibu announces $30 million Series C1 — Existing shareholder Source Code Capital doubles down

Asset360 announces over RMB 100 million Series C — continuing to lead industry development

HaiNeiBian announces Series B — expanding globally to build overseas services platform

"Upgrades"

Toutiao and Intel establish

joint technology innovation lab

Chehejia builds new vehicle base in Chongqing — RMB 11 billion investment for 400,000 annual units

Yidianzu partners with Dell

to tap IT equipment rental and sharing economy

Pagoda's online orders up 270% YoY

ranking #1 in fruit category across major food delivery platforms

Yimidida partners with smart IoT company G7

to build national intelligent trailer transport platform

Cirfinance partners with UnionPay Merchant Services

to deepen micro and small business financial services

Huishoubao sets sail overseas

becoming #1 in mobile and digital device recycling

"Quotes"

Yu Huiyong: The 16-character secret to fruit retail

Zheng Wencheng: Improving customer retention and satisfaction

Zhou Jian: Big data drives reduction and efficiency in agricultural inputs

Wang Peng: Achieving better operational efficiency and more diversified operations comes down to doing big data applications well

"Honors"

Yidianzu, Yimidida, Zuoyehezi, Moran Cognition

named to "Future · Influence" China Industrial Innovation List

Haifeng Education founder and CEO Zheng Wencheng awarded

Model Entrepreneur Figure

Weimai named to 2018 Internet Hospital Innovation Top 10

"Code Brain"

Code Brain Session 7 breaks down WeChat ecosystem and mini-program user acquisition

How to Design Mini-Program Virality and Acquire Users at Low Cost | Code Brain Session 7

Milestone

YiHang announces RMB 220 million Series B

Source Code Capital backs intelligent mobility

On August 24, autonomous driving startup YiHang Intelligence announced RMB 220 million in Series B funding. The round was led by CICC Jiacheng, with follow-on investment from Source Code Capital and CICC Jiazi, while existing shareholder Matrix Partners China continued its support.

YiHang focuses on commercializing autonomous driving products and was the first Chinese startup to secure mass production orders from OEMs. Mass-produced models equipped with YiHang's L2.5 autonomous driving features will hit the market in June 2019, and R&D targeting L4 mass production has already achieved multiple technical breakthroughs.

Wang Xingshi, Executive Director at Source Code Capital, said: "Autonomous driving will reconstruct the entire automotive mobility ecosystem. It represents a technological revolution combining multiple advanced inventions and cross-disciplinary innovations on intelligent vehicles. As a Tier 1 autonomous driving supplier, YiHang is the first domestic company to launch mass-produced autonomous driving systems — a milestone for the entire industry — providing OEMs with highly reliable, high-quality, and low-cost complete autonomous driving solutions. We believe YiHang will work with industry partners to bring autonomous driving to widespread adoption."

Baibu announces $30 million Series C1

Existing shareholder Source Code Capital doubles down

On August 24, textile B2B platform "Baibu" announced $30 million in Series C1 funding, led by Xiongniu Capital, with continued follow-on from Yunqi Capital, Chengwei Capital, and Source Code Capital. Chongying Capital served as financial advisor. The new funding will further expand business scale and build a "better" and "faster" supply chain system to better serve every apparel enterprise.

Founded in April 2014, Baibu is a leading textile B2B platform. Its core team members come from Alibaba, Meituan, VIP.com, Qunar, Inman, Qiushui Yiren, and senior experts from the textile industry, with deep knowledge of fabric production, warehousing, distribution channels, and apparel manufacturing and sales, as well as resources across the textile supply chain.

Source Code Capital was Baibu's sole angel round investor. From angel through Series C, we have continued to increase our investment, confident in the company's development. Xingchen Zhang, Vice President at Source Code Capital's investment team, said: "Zhenhong is one of the best entrepreneurs I've ever met. From the initial matching model, to the decisive shift to self-operated inventory, to now exploring services for first-tier distributors — every step has shown tremendous entrepreneurial spirit, resilience, and curiosity. After this round, the company enters a much broader phase of growth. Source Code Capital will continue to back exceptional entrepreneurs like this."

Asset360 announces over RMB 100 million Series C

Continuing to lead industry development

On August 7, next-generation internet financial asset management company Asset360 announced over RMB 100 million in Series C funding, led by Haixia Capital with follow-on from existing investors including SIG. The capital will fund new business exploration, AI product development, and talent acquisition. Asset360 will gradually intelligentize the non-performing asset disposal process, continuously improve technical capabilities, and accelerate product iteration.

Prior to this, Asset360 had completed several funding rounds with support from Source Code Capital, SIG, Huarong Tianze, Weilie Capital, K2VC, Eastern Vision Capital, Jiuchuang Capital, and 58.com's Yao Jinbo. Asset360 CEO Ye Haitao said that non-performing asset disposal, as a critical link in the financial industry chain, has vast market potential, and the rapid growth of internet finance is accelerating service demand. As a pioneer in non-performing asset disposal, to maintain industry leadership and continue leading sector development, exploring how to use data and technology to serve industry needs is essential.

HaiNeiBian announces Series B

Global expansion to build overseas services platform

On August 17, HaiNeiBian announced Series B funding from Trip.com Group. Previously, HaiNeiBian had raised angel funding from ZhenFund, a RMB 35 million Series A led by Shunwei Capital, and a RMB 30 million A+ round from Source Code Capital. This round's proceeds will fund overseas business localization, while Trip.com Group as investor will provide open APIs to help achieve global industrial layout.

Founder and CEO Xie Shimei said that after this round, HaiNeiBian will pursue a "vertical and horizontal" strategic layout: "Vertical" means building an overseas services platform with two dimensions — first, providing more in-depth services for high-net-worth individuals including finance, insurance, healthcare, and children's education; second, deepening the overseas real estate segment by moving into fund and real estate development. "Horizontal" means global expansion, replicating the business model across Asia-Pacific, Europe, and other regions.

What's New

Toutiao and Intel

establish joint technology innovation lab

On August 22, Intel and Toutiao reached strategic cooperation and announced the establishment of a joint technology innovation lab. The collaboration will focus on data center and underlying infrastructure hardware and software optimization, market cooperation, and successful case promotion, spanning big data analytics, artificial intelligence, and other fields.

The joint technology innovation lab is a highlight of the partnership. The lab will drive efforts across technology, products, applications, and ecosystem development. This strategic cooperation combines both parties' industry advantages, providing greater room for AI technology implementation in the content industry.

Chehejia builds new vehicle base in Chongqing

RMB 11 billion planned investment, 400,000 annual units

Beijing Chehejia Information Technology Co. formally signed with Chongqing Liangjiang New Area for a new vehicle production base, with planned investment of RMB 11 billion, covering 1,800 mu, and planned annual capacity of 400,000 units. This follows Chehejia's 2016 announcement of its Changzhou base in Jiangsu as another "intelligent vehicle manufacturing base."

With this base completed, Chehejia's estimated total capacity will reach 700,000 units annually. The base will be constructed in two phases with total planned capacity of 400,000 units annually. Phase I is expected to be completed within 2021 with 200,000 units/year capacity, and will produce at least two intelligent EV models, with annual output value exceeding RMB 40 billion after mass production.

Yidianzu partners with Dell

to jointly tap IT terminal rental and sharing economy market

Yidianzu announced a partnership with Dell, covering Latitude commercial notebooks, OptiPlex commercial desktops, Chengming commercial desktops, monitors, and PowerEdge servers. Based on Dell's product quality, Yidianzu has maintained 20-30% month-over-month growth. The two sides have reached strategic cooperation consensus to jointly develop the IT terminal rental and sharing economy market.

In Yidianzu CEO Ji Pengcheng's view, the main reason for choosing Dell is its deep understanding of the commercial market and excellent products for different application scenarios. He noted that Dell deeply understands enterprise customer needs — knowing what enterprises want, where their pain points and demands lie, and launching cost-effective product solutions for different applications, which is Dell's significant advantage over other IT vendors.

Pagoda's online orders up 270% YoY

ranking #1 in fruit category across major food delivery platforms

During this year's August 18 shopping festival, Pagoda's online channel orders grew 270% YoY compared to 2017, with App downloads up 127% MoM during the 818 period, peaking at 203,000 orders, and delivery time shortened from an average 44 minutes to 30 minutes. During this shopping festival, Pagoda's online sales broke through significantly while continuously improving user experience.

Since entering new retail in 2016, Pagoda's online channel sales have grown rapidly. Currently, Pagoda's online sales performance ranks #1 in the fruit category across major food delivery platforms, becoming an industry leader — bringing fresh fruit e-commerce, long dismissed by skeptics, back into the spotlight.

Yimidida and smart IoT company G7

reach cooperation to build

national intelligent trailer transport platform

On August 6, Yimidida and smart IoT company G7 reached a further cooperation agreement. G7 will provide Yimidida with 2,500 smart trailer rentals, leveraging IoT + AI technology advantages to help Yimidida build a national intelligent trailer transport platform, further driving transformation, upgrading, quality improvement, and efficiency gains in the less-than-truckload logistics market.

The cooperation is built on a joint fleet model, using G7's smart trailers to meet joint fleet needs, achieving real-time vehicle and trailer monitoring and effective control of trailer location and mileage. Yimidida founder and CEO Yang Xingyun said that partnering with G7, a leading smart IoT company, is a tremendous boost both for Yimidida's own transformation and upgrading and for innovative development. Through complementary advantages and mutual development, the two sides will build a new ecosystem for the logistics industry.

Cirfinance partners with UnionPay Merchant Services

to deepen micro and small business financial services market

Cirfinance, a domestic leader in pan-supply chain finance, recently announced deepening cooperation with domestic integrated payment and information services giant UnionPay Merchant Services, to jointly build and upgrade micro and small business financial services for UnionPay Merchant Services' financial service platform "Tiantianfu," providing platform merchants with quality intelligent credit products and efficient, convenient financing experiences.

Tiantianfu is a financial service platform launched by UnionPay Merchant Services headquarters and ChinaPay, committed to providing millions of micro and small merchants on the platform with one-stop financial services including wealth management, loans, factoring, and credit cards.

Huishoubao sets sail overseas

becoming #1 in mobile and digital device recycling

Recently, Huawei and Huishoubao reached strategic cooperation in Russia to jointly provide trade-in services for Russian users. Huishoubao will support Huawei's overseas development strategy, providing local users with professional mobile phone inspection, valuation, and trade-in services, helping users spend less to buy new Huawei devices. This makes Huishoubao the first brand in China's mobile and digital device recycling sector to go overseas.

In expanding the Russian market, Huishoubao and Huawei jointly established a "product + service" model: on one hand, meeting diverse Russian market needs with different series of devices; on the other hand, meeting users' demand for refined services through trade-in programs. Regarding this cooperation, Huishoubao Senior Vice President Xiong Zhou said: Huishoubao will continue providing high-quality services to Russian users, including the most convenient channels for selling idle phones, highly competitive recycling prices, and enabling users to spend less to upgrade to the latest Huawei phones — achieving a win-win-win for Huawei, Huishoubao, and Russian users.

Quotes

Yu Huiyong (Pagoda founder and chairman)

We have a 16-character secret to fruit retail, and it all comes down to solving this problem. Our 16 characters: first, "emotional product"; second, "planned economy"; third, "dynamic consumption management"; fourth, "waste competition." In fact, the quality of fruit retail comes down to freshness. The best way to maintain freshness is volume and speed, but that's not simple to execute. These 16 characters were summarized back in 2007, and they basically cover the entire fruit retail operation — including fruit characteristics, why discounting doesn't work, why display is so important, and even the definition of "good taste" — all determined by fruit characteristics.

Zheng Wencheng (Haifeng Education founder and CEO)

Centering on user satisfaction and experience, Haifeng has built a "three-pillar model" on the back end: content R&D, teaching management, and technology platform. In content R&D, the most important thing is effectively recording teaching process logs to form teaching content materials and data. Haifeng emphasizes small granularity, high standardization, high structuring, completeness, and effective log feedback. In teaching management, due to the non-standardized and experience-good nature of education products, Haifeng emphasizes a B2C model, believing that the education and training industry is difficult to run with C2C or C2B2C models, so teaching must be "heavy" — heavy on standardization, heavy on operations, high frequency beating low frequency. In the technology platform, by effectively collecting teaching process logs and iterating accordingly, it feeds back into the teaching platform and teaching management. These three pillars are interconnected and highly interactive, forming Haifeng Education's core competitiveness.

Zhou Jian (Nongfenqi founder and CEO)

What we want to do in the future isn't simply connecting production processes. We're organized around two data chains: one is people — the operating entities. Based on people, we have a credit system to evaluate them. We have a strong foundation in evaluation systems. Nongfenqi currently has underlying data on over 400,000 large-scale farmers in rural China, tracking them from individual to family and following their growth and changes. This is the foundational layer that will support healthy and normal transactions for agricultural producers and agricultural service providers in the future, so credit is very important. The other is digital production models — this is a very long-term endeavor. There aren't many companies that can truly build crop growth models. We've invested long-term in this area, having invested over RMB 20 million since 2015 with continued investment going forward. It seems abstract, but it's actually two lines: the future is technology and data driven.

Wang Peng (Julive founder and CEO)

From an internet person's perspective, achieving better operational efficiency and more diversified operations comes down to doing big data applications well, thereby guiding more decisions and even directly producing decision data. As long as major players in real estate can bring big data applications to the level of other industries, the entire real estate sector will see substantial improvement in both operational efficiency and diversified expansion. More refined operations, higher efficiency operations, and more diversified expansion must be based on data — relying on human brains is too inefficient. Facing opportunities and challenges, real estate enterprises need to effectively improve in operational efficiency, customer understanding, diversification, and platform expansion.

Honor & Awards

Yidianzu, Yimidida

Zuoyehezi, Moran Cognition

named to "Future · Influence" China Industrial Innovation List

On August 19, 2018, witnessed by MIIT Information Center and Xiamen municipal leaders, MIIT Information Center and Yiou Think Tank jointly released the "Future · Influence" China Industrial Innovation List at the 2018 Maker China Industrial Investment Summit. The list was divided into "Top 50 Most Investment Value" (the "Investment List," for companies founded in 2012 or later, Series B or later, unlisted) and "Top 50 Most Development Potential" (the "Potential List," for companies founded in 2012 or later, pre-Series B).

The selection launched in June 2018, widely soliciting applicant enterprises and gathering detailed information on each company's products/services, industry layout, business model, revenue status, and benchmark customers. From a sample pool of 1,064 enterprises, the "Potential List" and "Investment List" were ultimately formed. Yimidida, Yidianzu, and Zuoyehezi were named to the "Top 50 Most Investment Value," while Moran Cognition was named to the "Top 50 Most Development Potential."

Haifeng Education founder and CEO Zheng Wencheng

awarded Model Entrepreneur Figure

At the Beijing Business Daily 33rd anniversary "In Step with Reform, Moving with the Times" celebration, Haifeng Education CEO Zheng Wencheng was awarded the Model Entrepreneur Figure in the "Entrepreneurial Spirit Ignition" series. The selection was initiated by Beijing Business Daily with 34 media organizations and relevant industry associations. "Entrepreneurial spirit" candidates were broadly solicited around patriotism, striving, contract spirit, innovation, sentiment, craftsmanship, responsibility, and "do no evil."

As a leading figure in online K12 education, "being someone responsible to investors" is the entrepreneurial spirit Zheng Wencheng has always practiced. "Technology-driven · personalized education" — internet education is an important pathway to achieving "education equity." Zheng Wencheng hopes to give Haifeng Education's courses internet wings, using cutting-edge technology to bring the most creative transformation, and bring personalized, equitable education to every family and every child.

Weimai named to 2018

Internet Hospital Innovation Top 10

On August 23, the GIIS 2018 Third China Great Health Industry Upgrade Summit with the theme "New Forces in Healthcare" was held in Beijing. Internet medical newcomer "Weimai" was invited to attend and successfully selected for the "2018 Internet Hospital Innovation Top 10," joining industry leaders to discern the next decade of the medical and health industry and capture the development脉络 of internet + healthcare.

Weimai is the first internet medical enterprise in China to propose the concept of "trust-based healthcare." Localization + trust-based healthcare is the foundation Weimai has consistently practiced: taking cities as units, connecting all local medical resources, providing appointment registration, data inquiry, and comprehensive payment services for all local hospitals on the platform, while onboarding doctors from local hospitals. Breaking spatial, temporal, and service limitations, extending medical services to broader out-of-hospital scenarios, and expanding the service boundaries of hospitals and doctors.

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