Code Moment | ZNLH Closes Series D Round to Deepen Digital Push

源码资本·December 20, 2022·0·4

Exploring New Engines for Construction Machinery, Charting New Paths for Industrial Upgrading

#MaKe Key Updates from Source Code Capital and MaHui Members

On December 20, 2022, ZNLH (ZNLH Digital Technology Co., Ltd.) announced the completion of its Series D equity and debt financing, and held the "Exploring New Engines for Construction Machinery, Discussing New Links for Industrial Upgrading" launch ceremony for Kaigong Zhihe's settlement in Xiangtan, Hunan. At the event, ZNLH reached an equity financing agreement with Hunan Caixin Industrial Fund; simultaneously, ZNLH will pursue in-depth cooperation with Hunan Caixin Commercial Factoring Co., Ltd. (in preparation) and Hunan Credit Information Co., Ltd. on supply chain finance and big-data credit services.

ZNLH's management stated that proceeds from this round will go toward further technology upgrades and market expansion for its one-stop construction machinery rental platform, as well as building out an efficient digital supply chain, establishing digital financial services capabilities, and cultivating digital talent. Source Code Capital led ZNLH's Series B round and continued to invest in both Series C rounds.

Event site

On the day of the launch, Dong Wei, member of the Xiangtan Municipal Party Committee Standing Committee, Vice Mayor of the People's Government, and Party Secretary of Xiangtan Economic and Technological Development Zone, along with representatives from relevant departments; Peng Jian, Assistant General Manager of Hunan Caixin Financial Holding Group, and other leaders from Caixin Holding Group and financial institutions; representatives from Xiangtan Rural Commercial Bank, China Construction Bank, China Everbright Bank, Bank of Hunan, and other banks; as well as customer, merchant, and supplier representatives gathered to witness this milestone for ZNLH.

Financing signing ceremony

At the launch, Xiangtan municipal leaders offered warm congratulations on the partnership, noting that "demand-driven, market-oriented" development and "dual-wheel drive of technological and institutional innovation" are two long-standing government principles. The construction machinery industry is one of Hunan's three world-class industrial clusters and a critical engine for the province's high-quality real-economy development. Hunan Caixin Financial Holding Group has leveraged its three advantages — local resources, homegrown strengths, and group synergies — to take the construction machinery sector as its entry point, continuously innovating comprehensive financial services, strengthening support for Hunan manufacturing, and comprehensively empowering upstream and downstream enterprises in the construction machinery industry chain. As a leading player in equipment rental, ZNLH has evolved from a single-category provider to a multi-category national supplier, continuously driving industry advancement through digital technology and standardized services to reduce costs and improve efficiency for upstream and downstream partners. This addresses real needs in the construction machinery industry and is an essential link for driving healthy, sustainable development across the industrial chain. Going forward, the government will remain committed to fostering a collaborative, win-win development environment and jointly building a new industry ecosystem.

Since 2017, ZNLH has closely tracked the digital transformation trend in construction machinery, continuously optimizing its network layout, improving supply timeliness, and refining its service system to keep pushing the industry's internet upgrade forward. As its market share has grown, ZNLH has earned recognition from numerous commercial investors, banks, and financial institutions, with its growth speed and quality ranking among the industry's best.

Since 2020, ZNLH has pursued a platform strategy with firm conviction, continuously optimizing products and improving operational efficiency. Amid fierce industry competition, it has carved out an industrial internet path with distinctive ZNLH advantages. At the same time, ZNLH has deepened its internal digital-intelligent transformation while upgrading its organizational structure and talent, bringing in technical and managerial professionals and doubling down on enhancing platform product capabilities and supply chain construction. To build a more comprehensive one-stop engineering equipment rental service, ZNLH successfully transformed from a focus on aerial work platforms to multi-category national operations, forming integrated solutions covering rental, safety, logistics, digitalization, and construction. By deeply integrating digitalization with construction machinery, it provides more efficient and safer full-lifecycle intelligent services spanning equipment rental, contract fulfillment, and management operations through technological innovation. It has also built a future-oriented engineering equipment rental management system covering equipment management, project management, data management, and data dashboards, helping users achieve full-process digital-intelligent upgrades in engineering equipment management — reducing costs, improving efficiency, and continuously enhancing user experience. With clear strategic goals and sound operations, ZNLH has achieved full-lifecycle intelligent service upgrades in construction machinery rental featuring standardized industry elements, online transactions, and intelligent decision-making. It continues to provide safe, efficient digital services for equipment rental, contract fulfillment, management operations, and system empowerment to upstream and downstream industry players, with over 100,000 customers. This strategic upgrade and partnership with Hunan Caixin marks an important milestone of sincere cooperation and mutual benefit. Both parties share strong consensus on exploring the integrated development of the real economy and digital economy, and will leverage their respective strengths to effectively implement a digital platform for the construction machinery industry alongside comprehensive financial solutions. Together with the Xiangtan municipal government and Hunan's advanced manufacturing industrial clusters, ZNLH will contribute further to the high-quality development of China's construction machinery industry, guided by the spirit of the 20th Party Congress.