Meituan Files for IPO, Three Companies Close Funding Rounds, Code Brain's Sixth Session Visits ByteDance | Ma Hui Journal · June
Four years since Source Code Capital's founding, the many member companies of the Source Code family have grown into a thriving forest. Ma Hui has also become a platform where Source Code Capital's LPs, partners, and entrepreneurs exchange ideas. *Ma Hui Chronicle* is here to record our friends' incremental progress, share the joy of growth, and look forward to an even brighter future.
To Our Readers
Four years since Source Code Capital's founding, our family of portfolio companies has grown into a thriving forest. Ma Hui has become a platform where our LPs, partners, and entrepreneurs exchange ideas. Ma Hui Journal is here to record our partners' progress, share the joy of growth, and look toward an even brighter future.
June Ma Hui Journal
Briefing
"Funding"
Meituan files IPO application with the Hong Kong Stock Exchange
Valuation may reach $60 billion
RELX announces completion of angel round
RMB 38 million funding led by Source Code Capital
HnR New Power receives angel funding
from Source Code Capital of several million RMB
Focusing on preschool children's math education
Cheduoduo raises $17.7 million in Series A
Source Code Capital backs new services for used car trading
"Upgrades"
Hai Feng Education partners with Meituan Dache
To launch "escort mode" for gaokao
Pagoda mini-program accounts for 15% of total online sales
Huishoubao launches mobile phone auto-recycling ATM
Suishou partners with JD.com Alpha platform
First to launch intelligent voice account inquiry
"Quotes"
Pengcheng Ji: Improving work efficiency by 95% for enterprise users.
Jixue Zhang: Elevator media needs a "disruptor."
Jialin Qiu: Internet + healthcare has four stages: floating cloud model, floating ice model, iceberg model, and new healthcare.
"Honors"
Hongjiang Zhang of Source Code Capital ranked
"2018 Top 1000 Global Scientists in Computer Science and Electronics" — #1 in mainland China
ByteDance ranked
#1 among "World's Top Ten AI Startups"
Ziroom, CHJ Automotive, and Nongfenqi listed on
China Entrepreneur "2018 Future Stars"
Edianzu awarded "Best IT Service Platform"
Pagoda listed in "2017 China Franchise Chain Top 100"
The only fruit industry company
Hai Feng Education awarded "Most Influential Education Brand
of the 40 Years of Reform and Opening Up"
WeiMai awarded "2018 China Primary Healthcare
Best Innovation Practice Case"
"Code Brain"
Code Brain Session 6 visits ByteDance
How to Acquire Customers Through Douyin? | Code Brain Session 6
1
Milestone
Meituan files IPO application with the Hong Kong Stock Exchange
Valuation may reach $60 billion
On June 25, Meituan formally filed its IPO application with the Hong Kong Stock Exchange. Market analysis predicts Meituan's valuation could reach $60 billion (approximately HK$468 billion), with expected fundraising of $6 billion (HK$46.8 billion), and listing as early as October. According to the prospectus, Meituan is a domestic life services e-commerce platform with three main business segments: "food delivery," "in-store, hotel & travel," and "new initiatives." Revenue has grown more than 7x over the past three years, from RMB 4 billion in 2015 to RMB 33.9 billion in 2017.
The prospectus shows that in 2017, Meituan's platform completed over 5.8 billion transactions, with gross transaction value of RMB 357 billion and 310 million transacting users. Online partner merchants grew from approximately 3 million in 2015 to approximately 5.5 million in 2017, with 4.4 million active merchants in 2017.
Meituan's development strategy has four directions: first, providing more services to more consumers; second, providing more solutions to more merchants; third, continuous technological innovation; and fourth, selectively pursuing strategic partnerships, investments, and acquisitions. At the same time, Meituan will focus on developing innovative applications, products, and services aimed at providing consumers with greater convenience, supporting merchants in improving service quality and operational efficiency, and enhancing Meituan's big data and artificial intelligence technologies.
2
RELX announces completion of angel round
RMB 38 million funding led by Source Code Capital
On June 25, domestic e-cigarette brand RELX announced completion of its first round of RMB 38 million funding, led by Source Code Capital with IDG Capital participating. RELX founder Ying Wang stated that the funding will be mainly used for continued product R&D and user service experience upgrades. Following the market-stunning launch of its first-generation product in China, RELX will roll out second-generation new products in China, Europe, the US, and Japan by the end of 2018, with a focus on improving user experience and personalization.
Yungang Huang, Partner at Source Code Capital, said: "The RELX team has a global vision and is doing something with enormous social value. CEO Ying Wang previously worked at Procter & Gamble, Uber, and DiDi, demonstrating strong leadership in her career. The world-class founding team combines composite experience in hardware, consumer goods, and internet — perfectly suited for this endeavor. We look forward to the RELX team bringing more innovation to the industry."
3
HnR New Power receives several million RMB
angel funding from Source Code Capital, focusing on preschool children's math education
Early education content provider "HnR" (New Power) announced it has received several million RMB in angel funding from Source Code Capital. Following this round, it will continue providing science and mathematical logic early education content for children aged 3-8.
HnR New Power was originally positioned as a parenting public account for parents, covering three areas: "scientific parenting, healthy living, and self-actualization," inviting experts and doctors to film videos answering questions. Starting in 2017, it produced a series of science popularization videos directly for children, making early education content its current development focus. Regarding this transformation, founder and CEO Ariel stated that most families in China are dual-income, with children largely cared for by grandparents, so providing content directly to children works better than educating parents to relay information.
On its investment rationale, Source Code Capital stated that HnR New Power's children's science videos have strong appeal for the 3-8 age group, and it sees future potential in the combination of quality content with curriculum-based approaches.
4
Cheduoduo raises $17.7 million in Series A
Source Code Capital backs "new services" for used car trading
Recently, used car trading "new services" platform Beijing Haoche Duoduo Technology Co., Ltd. ("Cheduoduo") announced its Series A funding. This round totals $17.7 million, led by China Growth Capital, with multiple institutions and individuals including Yixin Group, Li Xingxing, and Source Code Capital participating. China Growth Capital and Source Code Capital are both well-known investment institutions in fintech and technology, focusing on new finance, new industry, and new consumption. Yixin Group is a Hong Kong-listed company, an internet auto retail trading platform jointly backed by internet giants Tencent, JD.com, Baidu, and Bitauto.
Cheduoduo founders Wei Zheng and Bo Cai explained that this round of funding will be mainly used to build its new used car trading "new services" brand — Cheduoduo. Through technology upgrades and model innovation, Cheduoduo will first establish a used car consumer finance trading service platform, connecting upstream with diverse used car consumer finance products to create a "used car financial product supermarket," then through direct sales teams covering used car trading markets nationwide, providing full-process services to used car dealers and consumers.
What's New
1
Hai Feng Education partners with Meituan Dache
To launch "escort mode" for gaokao
For a long time, ensuring gaokao candidates arrive smoothly at exam venues has been one of the top concerns for parents. To address this, K12 online education leading brand Hai Feng Education, as gaokao approached, exclusively partnered with Meituan Dache to launch exclusive ride-hailing coupons, available for free by entering the code "Hai Feng Education" in the Meituan Dache, Meituan, and Dianping apps.
Meituan Dache is committed to helping users improve travel efficiency and create better lives. Its goal is to "shift from breadth and user volume growth to providing more comprehensive, in-depth services for individual users," digging deep into users' latent personalized needs to build its own user reputation. This aligns with Hai Feng Education's brand philosophy of "technology-driven personalized education."
2
Pagoda mini-program accounts for 15% of total online sales
Recently, Pagoda announced that since its mini-program launched last August, it has accounted for approximately 15% of total online sales, with projected 2018 annual sales of RMB 400-500 million.
Both the mini-program and APP use rapid fruit delivery. Mini-program orders have two delivery modes: first, store pickup, where customers can choose any nearby store for self-collection; second, home delivery, with 59-minute delivery within three kilometers of the store, fastest within 30 minutes. The mini-program integrates with online communities, which are WeChat ecosystem-based. The difference from offline stores is that the shopping conversion scenario is online, with the mini-program providing an online venue.
Sun Peng, Pagoda Group Operations Center Director, stated: "We understand the Pagoda mini-program as an important part of the entire WeChat ecosystem chain. What we want to build is a comprehensive integration of WeChat official accounts, community networks, e-commerce infrastructure, store network advantages, and mini-programs, forming a closed loop that overall drives traffic and conversion."
3
Huishoubao launches mobile phone auto-recycling ATM
On June 27, "MWC Shanghai 2018" was held in Shanghai. As a top event in the technology sector, over 600 domestic and international quality enterprises exhibited, showcasing numerous frontier technologies and innovative products. At this exhibition, Huishoubao's mobile phone auto-recycling ATM, built for offline new retail scenarios, made a stunning debut, attracting large numbers of visitors queuing to experience it.
This phone recycling ATM features fully automatic detection, evaluation, recycling, and payment in one go. Simply connect the phone to the internet and place it in the machine's "belly," and it can perform on-site precise detection, provide a recycling quote, and make full payment on the spot. As the first enterprise to develop a mobile phone auto-recycling ATM, Huishoubao's exhibited product has also undergone comprehensive upgrades, including optimization of solutions and hardware, making it the most mature and intelligent product on the market.
4
Suishou partners with JD.com Alpha platform
First to launch intelligent voice account inquiry
Recently, Suishou reached cooperation with JD.com's Alpha platform, launching intelligent voice account inquiry on its Dingdong smart speaker, allowing users to perform intelligent account checks through voice activation. This is another important intelligent feature that Suishou has pioneered in the industry.
After users link the Suishou app to the Dingdong smart speaker, they can access Suishou's services within the speaker and use the intelligent voice account inquiry feature. When using it, users activate the Dingdong speaker by voice, then use query statements to say keywords such as time, category, and amount to trigger Suishou's intelligent account inquiry. Meanwhile, after receiving the voice command, the Dingdong speaker performs real-time data queries and feeds back the queried account data to users through voice broadcast.
Quotes
Pengcheng Ji (Chairman, Edianzu)
The residual value depreciation of enterprise assets and the inventory and management of fixed assets have long been headaches for enterprises. Many enterprises still use relatively primitive internal asset management. According to statistics, Chinese enterprises experience equipment loss rates of approximately 20% annually due to poor management. Addressing the current problems enterprises face with chaotic equipment management, difficult inventory, and high loss rates, Edianzu has launched enterprise-grade asset management software (a fixed asset management SaaS product supporting initialization flash inventory and distributed inventory) — Yi Pandin. Through PC + APP model, combined with Edianzu's big data collection on office equipment, Yi Pandin uses simple operations to complete asset information entry, achieving one-click cloud storage in one second, improving work efficiency by 95% for users.
Jixue Zhang (Chairman, Xinchao Media)
Today, the competitive landscape of the property management industry has changed, with several listed companies. In the past, property management companies were small and fragmented, and advertising space wasn't worth much. But today, companies managing 400-500 million square meters with revenue of RMB 4-5 billion have emerged, and in the future there will be companies managing 1 billion square meters. Total advertising rent for one elevator in first-tier cities has already exceeded RMB 10,000, and will reach RMB 20,000 in the future. For companies managing 500 million to 1 billion square meters, annual elevator advertising rent will exceed RMB 1 billion — this is no small business. The elevator media market is huge, but monopoly leaves property management without bargaining power. The elevator media industry needs a disruptor to bring new dividends. Xinchao plans to invest RMB 10 billion over five years to be this disruptor.
Jialin Qiu (Founder & CEO, WeiMai)
The evolution of "Internet + healthcare" is divided into four stages: 1.0 Floating Cloud Model, based on doctor-doctor and doctor-patient communication platforms and communities, characterized by being unrelated to hospitals and unrelated to data. 2.0 Floating Ice Model, represented by numerous local appointment platforms, characterized by being related to hospitals but unrelated to data, because they are not connected to hospital data and payments, with hospitals as the service unit. 3.0 Iceberg Model, city-based, where online you can not only make appointments but also complete medical payments, medical insurance settlement, report queries, prescription queries, and online consultation with attending doctors. 4.0 New Healthcare, establishing a user-centered personalized + precise service system.
Honor & Awards
1
Hongjiang Zhang of Source Code Capital ranked
"2018 Top 1000 Global Scientists in Computer Science and Electronics" — #1 in mainland China
The Guide2Research website recently released the 2018 ranking of the top 1000 scientists in computer science and electronics by H-index. Professor Anil K. Jain of Michigan State University surpassed Nobel laureate Herbert Simon to become the new #1. Source Code Capital Investment Partner Hongjiang Zhang ranked #1 in mainland China.
Guide2Research's latest 2018 ranking of top scientists in computer science and electronics is based on H-index metrics provided by Google Scholar and DBLP. H-index (the number of papers with citation count higher than or equal to h) is a means of measuring both scientist productivity and research impact, quantifying not only citation count but also based on the number of papers.
Among the top 1000 global scholars in computer science and electronics, 11 scientists from mainland China were selected. Among them, Source Code Capital Investment Partner Hongjiang Zhang ranked global TOP 29, #1 in mainland China. Weiying Ma, AI Lab Director at Source Code Capital portfolio company ByteDance, ranked second.
2
ByteDance ranked #1 among "World's Top Ten AI Startups"
Recently, Nanalyze, one of the world's largest investment forums in the technology sector, combined data from Crunchbase and CB Insights AI Top 100 to list the world's top ten AI startups, with ByteDance ranking #1.
The list notes that Toutiao, a Chinese startup founded in 2012, has become the world's largest AI startup and also the highest-valued. Toutiao is the news aggregation platform of Beijing-based ByteDance, focused on the Chinese market, using artificial intelligence to manage users' news feeds and autonomously write news reports, serving hundreds of millions seeking news subscriptions.
3
Ziroom, CHJ Automotive, and Nongfenqi listed on
China Entrepreneur "2018 Future Stars"
Recently, the China Entrepreneur "Future Stars — 2018 Most Promising Emerging Enterprises" selection results were announced, with Ziroom, CHJ Automotive, and Nongfenqi making the list.
The "Future Stars" list was launched by China Entrepreneur magazine in 2001 and has been held for 18 consecutive years, widely recognized by the industry and investment community. The "Future Stars" list is based mainly on five dimensions: competitive advantage, business innovation, executive team, financial condition, and development prospects, focusing on new drivers of China's economic growth, and is considered a barometer of potential and rising stars in the business world. In the past 17 editions, the list has included Tencent, Baidu, JD.com, Xiaomi, DiDi and other companies that have now become giants in their respective segments.
4
Edianzu awarded "Best IT Service Platform"
Recently, the Internet Weekly 20th Anniversary large-scale event was held by the Chinese Academy of Sciences' Internet Weekly, Chinese Academy of Social Sciences Information Research Center, and eNet Silicon Valley Power. The event invited enterprises, institutions, and organizations that have led, influenced, or transformed their respective fields through technology, models, or ideas, to jointly select "China Internet 20 Years and Great Nation Brands Top 1000," with Edianzu awarded "Best IT Service Platform."
As a leading enterprise in the office computer leasing industry, Edianzu continuously optimizes products and services, breaking through new heights in industry development and leading healthy industry development, being the first to propose a deposit-free leasing model. Currently, Edianzu serves 20,000 enterprise clients, over 2,000 listed companies and unicorns, with more than 250,000 leased devices, market share exceeding 80%, product renewal rate reaching over 90%, and 4-hour on-site service satisfaction rate exceeding 99%.
5
Pagoda listed in "2017 China Franchise Chain Top 100"
The only fruit industry company
The China Chain Store & Franchise Association recently released the 2017 China Franchise Chain Top 100 list. The report shows that Shenzhen Pagoda Industrial Development Co., Ltd. ranked 25th in the China Franchise Chain Top 100 with RMB 6.78 billion in sales, becoming the only listed fruit chain brand.
Pagoda also made the China Franchise Chain Top 100 in the 2016 list, ranking 44th. In 2017 it made the list again, with its ranking jumping to 25th in the franchise chain top 100, showing clear upward momentum. Pagoda, ranked 25th this time, had 2017 sales of RMB 6.78 billion and a total of 2,707 stores in 2017, becoming the only fruit chain enterprise among the chain top 100 enterprises.
6
Hai Feng Education awarded
"Most Influential Education Brand of the 40 Years of Reform and Opening Up"
The 2018 China Private Education Leaders Summit and the 40 Years of Reform and Opening Up Private Education Brand Ceremony was recently held in Beijing. This summit was hosted by the Education Science Research Institute of China Academy of Management Sciences and the Consulting Department of China Academy of Management Sciences. The summit aimed to implement the spirit of the 2018 Government Work Report regarding education development, deeply study the newly revised Law on the Promotion of Private Education, promote the healthy development of China's private education, and recognize and publicize units and individuals who have made outstanding contributions to China's private education over the 40 years of reform and opening up.
As a leading brand in K12 online education, Hai Feng Education was invited to participate and was awarded "Most Influential Education Brand of the 40 Years of Reform and Opening Up" by the conference. At the same time, Hai Feng Education founder Wencheng Zheng was awarded "2018 Top Ten Figures in the Private Education Industry" for his outstanding contributions, and was appointed as "Vice Chairman of the China Private Education Leaders Alliance."
7
WeiMai awarded "2018 China Primary Healthcare"
Best Innovation Practice Case Award
On June 9, the 2018 Primary Healthcare Innovation Practice Summit was held in Hangzhou, Zhejiang, hosted by the National Engineering Laboratory for Internet Medical Systems and Applications, Sir Run Run Shaw Hospital Affiliated with Zhejiang University School of Medicine, Internet Healthcare Industry Alliance, and VBData, with support from the China Medical Devices Association Smart and Mobile Healthcare Branch and China Information Association Medical and Health Industry Branch.
Previously, the search for 2018 China Primary Healthcare Innovation Practice Best Cases officially began. Over two months, 142 primary healthcare project cases were collected from 27 provinces and cities. Cases were analyzed and evaluated from multiple dimensions including industrial policy, business model feasibility, technological advancement, primary healthcare coverage breadth, and primary healthcare popularization effects, with innovative primary healthcare-related enterprises researched and experts conducting repeated review and screening. Finally, 8 categories totaling 26 best practice cases were selected, with WeiMai winning the grand prize for its unified payment platform's medical insurance card-free payment innovation and practice.
More Ma Hui Journals
Ma Hui Journal · March | 5 Companies Receive Funding, Multiple Listed on China Unicorn TOP100
Ma Hui Journal · January | 6 Companies Complete Funding, 2 Listed on Latest Global Unicorn List
Ma Hui Journal · October 3 More Receive Funding, 1 NYSE IPO, 6 B2B Companies Receive Multiple Awards
Ma Hui Journal · September | 4 Global Unicorns Listed, 1 Files Application, 2 More Receive Funding
Ma Hui Journal · August | Funding, Upgrades and Honors
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