Niu Technologies IPO Lands on Nasdaq; 3 Companies Close Funding Rounds; Code Brain Issue 8 Mines India | Code Brain Newsletter · October
Four years since Source Code Capital's founding, the many member companies of the Source Code family have grown into a thriving forest, and the "Ma Hui" has become a platform for Source Code Capital's LPs, partners, and entrepreneurs to connect. *Ma Hui Journal* is here to record the incremental progress of our partners, 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. The Code Brain gathering has become a platform for our LPs, partners, and entrepreneurs to connect. Code Brain Chronicle is here to record every step of progress, share the joy of growth, and look forward to an even brighter future.
October
Code Brain
Chronicle
Briefing
「Funding」
1. NIU (NASDAQ: NIU) IPO
Listed on the Nasdaq Stock Exchange
2. Linlinyi raised tens of millions of USD in Series A funding
3. C Jinrong announced completion of Series B funding
Existing shareholder Source Code Capital continued to increase its stake
4. Edianzu completed $60 million Series D funding
Accelerating enterprise IT services layout
「Upgrades」
1. Meituan organizational upgrade
Focusing on Food + Platform
2. CHJ Automotive released "Li ONE"
A smart electric vehicle without range anxiety
3. GalaxySpace test payload successfully launched
4. Knowbox's "Little Elephant Science"
Launched STEAM science curriculum service system
5. Huishoubao's Cokea Youpin
Launched second-hand phone brand "Little Red Box"
6. Moran Cognitive released smart vehicle OS solution
Expected small-batch trial production by year-end
7. YQN Logistics launched "Air Freight First Class" service
「Quotes」
1. Xing Wang: Focus on the core, hone the fundamentals
2. Xiang Li: No more range anxiety
「Honors」
1. ByteDance founder and CEO Yiming Zhang
Named among 100 Outstanding Private Entrepreneurs in the 40 Years of Reform and Opening Up
2. Haifeng Education founder and CEO Wencheng Zheng
2018 China Innovative Principal — Pioneering Spirit Award
3. Xinchao Media founder and chairman Jixue Zhang
Named among China's New Growth Innovators 30
4. Pagoda won China's Top 50 Chain Brand Quality
5. Zufang founder and CEO Lei Li
Selected for 2018 Hurun 30×30 Entrepreneurship Leaders
「Code Brain」
Code Brain Session 8 — Industry heavyweight shares on the great opportunity of building businesses in India
Explore India: Practical Sharing | Code Brain Session 8
1
Milestone
NIU (NASDAQ: NIU)
IPO on the Nasdaq Stock Exchange
At 9:30 p.m. Beijing time on the 19th, NIU officially listed on the Nasdaq Stock Exchange under the ticker symbol NIU. The company priced its offering at $9 per ADS, with a total of 7 million ADSs (American Depositary Shares) sold. NIU CEO Yan Li, founder and VP of R&D Yilin Hu, and four other founders all arrived at Nasdaq to ring the opening bell. Founded in 2014, NIU is a smart urban mobility solutions provider dedicated to offering global users more convenient and eco-friendly smart urban transportation tools, making city life better.
The smart lithium-ion electric vehicles designed and produced by NIU — the NIU Electric series — have sold over 430,000 units globally, with operations covering 23 countries overseas. In 2017, the company achieved revenue of RMB 769 million, a year-on-year increase of 117%. Latest data shows that in the first half of 2018, revenue reached RMB 557 million, also up 95% year-on-year.
2
Linlinyi raised tens of millions of USD in Series A funding
Source Code Capital co-led the round
Community group buying platform "Linlinyi" announced the completion of tens of millions of USD in Series A funding, co-led by Source Code Capital and Gaorong Ventures, with HSG participating. Just over a month prior, Linlinyi had completed a seed round of tens of millions of RMB led by HSG.
As a Linlinyi board member, Yihao Hao of Source Code Capital stated that community fresh produce group buying represents innovation in both supply chain organization and consumer-facing delivery, and Source Code is optimistic about the long-term potential of this sector. The Linlinyi team currently holds a leading position in East China, with extensive industry experience. We are honored to participate in this round of investment and will support the company's development over the long term.
3
C Jinrong announced completion of Series B funding
Existing shareholder Source Code Capital continued to increase its stake
Pan-supply-chain scenario micro and small enterprise financial solutions provider and Source Code portfolio company C Jinrong officially announced the completion of RMB 120 million in Series B equity funding, led by CBC Capital, with all existing shareholders including Source Code Capital, Yunqi Capital, and Matrix Partners China participating. At the same time, C Jinrong announced it has secured RMB 40 million in venture debt from InnoVen Capital, a subsidiary of Singapore's Temasek Holdings, and SVB Silicon Valley Bank, bringing total Series B equity and debt financing to RMB 160 million. FanZhuo Capital served as exclusive financial advisor for this round.
As a C Jinrong board member, Xingchen Zhang of Source Code Capital stated that Source Code Capital led C Jinrong's Series A round. The company's online-offline integrated customer acquisition and risk control approach has given it unique and very clear competitive advantages in the pan-supply-chain micro and small enterprise lending space. Having passed through its initial validation phase, C Jinrong has developed fairly clear growth momentum, and Source Code Capital remains bullish on and supportive of the company's next stage of development.
4
Edianzu completed $60 million Series D funding
Accelerating enterprise IT services layout
Enterprise IT leasing services and management platform Edianzu announced the completion of $60 million in Series D funding, co-led by existing shareholder Source Code Capital and a sovereign wealth fund. The funds will be mainly used to accelerate the enterprise IT services layout, expand to more cities, and strengthen service capabilities.
As an Edianzu board member, Kaishi Chang of Source Code Capital stated that enterprise users increasingly value the efficiency and flexibility of IT services, and outsourcing non-core IT services is the trend. IT equipment leasing services are an excellent entry point — current penetration remains very low, with enormous growth potential ahead. As an industry leader, Edianzu continues to improve service quality, solidify competitive moats, and maintain high growth. Source Code Capital has long been deeply invested in the industrial internet sector and remains bullish on Edianzu's development.
What's New
1
Meituan organizational upgrade
Strategic focus on Food + Platform
Meituan announced a new round of organizational upgrades through an internal letter. The company will strategically focus on Food + Platform, with "eating" at its core, establishing a user platform and two major business groups — in-store and at-home. On the new business side, the Kualu and Xiaoxiang business units will continue exploring, while an LBS platform will be established. This is reportedly the company's first structural adjustment since going public.
Meituan CEO Xing Wang stated in the internal letter: "To better fulfill our mission of 'We help people eat better, live better,' we will strategically focus on Food + Platform, with 'eating' at the core, honing the fundamentals, and building a multi-layer technology service platform for the life service industry from demand side to supply side."
2
CHJ Automotive's "Li ONE" released
A smart electric vehicle without range anxiety
On October 18, CHJ Automotive released its first mass-production vehicle — the seven-seat SUV Li ONE. The Li ONE features world-leading range-extended electric technology, with NEDC combined range exceeding 700km and urban driving range exceeding 1,000km. For propulsion, it uses a front-rear dual-motor four-wheel-drive system, achieving 0-100km/h acceleration in 6.5 seconds. Through three energy replenishment forms — fast charging, slow charging, and gas-powered generation — it solves the range anxiety and charging anxiety problems of electric vehicles. An advanced thermal management system fully utilizes range-extender waste heat; in -10°C environments, the Li ONE's range degradation can be controlled to 5%, far better than the typical 30% degradation of ordinary EVs, achieving worry-free winter driving.
Li ONE
3
GalaxySpace test payload successfully launched
At 6:57 a.m. on October 25, Source Code portfolio company GalaxySpace's test payload "Yuquan-1" was launched aboard the Long March 4B carrier rocket (CZ-4B) from the Taiyuan Satellite Launch Center. "Yuquan-1" is a self-developed test payload by GalaxySpace, which will conduct experiments in satellite-based high-performance computing, space imaging, and communication links aboard Alibaba's "Candy Jar" mini space station. "Yuquan-1" is located in the payload cabin of the "Candy Jar" mini space station, one of the payloads loaded in the mini space station's payload cabin, powered by the mini space station. This mini space station launch was carried on the Long March 4B carrier rocket's final stage test platform.
Founded in 2016, GalaxySpace is committed to developing low-cost, high-performance small satellites at scale through agile development and rapid iteration, building a world-leading low-orbit broadband communication satellite constellation, and establishing a global 5G integrated space-ground communication network. It aims to improve network connectivity for all regions and everyone, providing economical, practical, fast and convenient broadband networks and services, eliminating the digital divide in internet development.
4
Knowbox's "Little Elephant Science"
Launched STEAM science curriculum service system
Recently, Knowbox's "Little Elephant Science" launched a STEAM science curriculum service system, fully synchronized with elementary school science instruction. This initiative fills the gap in equipment and teaching materials for elementary school science education during classroom teaching and after-school practice, providing elementary school science teachers with richer resource support for classroom instruction.
Little Elephant Science is the flagship brand of well-known smart education technology company Knowbox, focusing on family science education and composed of multiple science education platforms. This launched STEAM science curriculum service system includes 240 minutes of experiment videos, 32 premium textbook experiments, 30 extracurricular extension experiments, and 180 types of experiment equipment and other software and hardware supporting services.
5
Huishoubao's Cokea Youpin
Launched second-hand phone brand "Little Red Box"
Cokea Youpin is a second-hand e-commerce platform incubated by Huishoubao. It recently launched China's first second-hand phone brand "Little Red Box." Little Red Box provides a brand-centric solution: "quality" and "after-sales service." More specifically, this means standardization of second-hand phone quality, professional quality inspection, and after-sales service comparable to new phones. First, appearance, motherboard, performance and 57 other quality indicators; second, 7-day no-reason return and exchange, and 180-day warranty service.
Currently, Cokea Youpin Little Red Box has connected online and offline channels. Offline, Cokea Youpin has entered 100,000 3C retail stores. Online, in addition to entering major e-commerce platforms and becoming Taobao's official designated second-hand premium partner, it has also built its own Cokea Youpin mall app.
6
Moran Cognitive released smart vehicle OS solution
Expected small-batch trial production by year-end
After a year and a half of R&D, Moran Cognitive released its smart vehicle OS. It has already reached cooperation with an OEM, with small-batch trial production expected by the end of 2018.
This released OS is adapted for in-vehicle scenarios, integrating self-developed far-field noise reduction, speech recognition, speech synthesis, voiceprint, dialogue model (semantic understanding), interactive enhancement and other technologies, forming a complete solution. This vehicle OS not only supports control commands such as opening the sunroof, but also connects to various application services related to cars and car owners; for example, users can query movie theaters and directly purchase tickets; users can find gas stations and directly group-buy gasoline.
7
YQN Logistics launched "Air Freight First Class"
Opening European charter service
YQN Logistics' "Air Freight First Class" first route has officially launched. The Hangzhou-Liege, Belgium cargo route, jointly built by YQN Logistics and Sinotrans Air Transportation Development Co., Ltd., will open on November 3, with international truck transport connections to Paris, Amsterdam, Frankfurt, Brussels, Luxembourg, Rotterdam and other destinations. "Air Freight First Class" includes comprehensive services such as capacity guarantee, rich routes, all-inclusive pricing, and worry-free operations.
Quotes
Xing Wang (Meituan Founder, CEO)
To better fulfill our mission of "We help people eat better, live better," we will strategically focus on Food + Platform, with "eating" at the core, honing the fundamentals, and building a multi-layer technology service platform for the life service industry from demand side to supply side. Let us continue to adhere to customer-centricity and long-term patience. No attachment to the past, forge ahead with abandon!
Xiang Li (CHJ Automotive Founder, CEO)
We will unprecedentedly create for users a smart electric vehicle without range anxiety. The all-time electric motor drive delivers a quiet and smooth driving experience; with two energy supply forms of charging and refueling, range anxiety can be avoided; winter range degradation is significantly lower than pure EVs; urban driving system overall efficiency far exceeds fuel vehicles, with lower energy costs. With the range extender in use, the Li ONE's driving range comprises two parts: first, battery power provides 180km of range; range extender-generated electricity provides 520km of range, bringing combined range to 700km, which is entirely accomplished by burning fuel. You can understand it as a second ultra-large energy battery pack on the vehicle.
Honor & Awards
1
ByteDance founder and CEO Yiming Zhang
Named to "100 Outstanding Private Entrepreneurs in the 40 Years of Reform and Opening Up"
On October 24, the All-China Federation of Industry and Commerce held a press conference in Beijing, releasing the "List of 100 Outstanding Private Entrepreneurs in the 40 Years of Reform and Opening Up." On the occasion of the 40th anniversary of reform and opening up, to publicize the tremendous achievements of private economic development, showcase the demeanor of private entrepreneurs as builders of the socialist cause with Chinese characteristics, vigorously promote excellent entrepreneur spirit, and encourage non-public economy figures to "remain true to our original entrepreneurial aspirations and carry forward the reform cause," the United Front Work Department of the CPC Central Committee and the All-China Federation of Industry and Commerce decided to recommend and publicize 100 outstanding private entrepreneurs in the 40 years of reform and opening up, among whom Source Code portfolio company ByteDance founder and CEO Yiming Zhang was named.
2
Haifeng Education founder and CEO Wencheng Zheng
Named "2018 China Innovative Principal — Pioneering Spirit Award"
The "2018 TOWER Education Innovation Conference" hosted by Principal Bang was recently held in Shanghai. This conference gathered over 1,000 education and training brands including Haifeng Education, New Oriental Education & Technology Group, TAL Education Group, and NetEase Education. The conference focused on "education innovation," jointly facing new transformations and challenges in the industry, aiming to integrate more resources into the education and training industry and promote the mutual growth of education entrepreneurs. Source Code portfolio company Haifeng Education founder and CEO Wencheng Zheng, with his spirit of continuous innovation and enterprise, won the "2018 China Innovative Principal — Pioneering Spirit Award."
3
Xinchao Media founder and chairman Jixue Zhang
Named among "China's New Growth Innovators 30"
Harvard Business Review Chinese Edition and Tencent Marketing Academy collaborated for the first time to jointly select and release the "China's New Growth Innovators 30" list, using objective data on real performance and market performance to evaluate the performance of Chinese enterprise leaders. On October 16, the list was unveiled in Shanghai. Source Code portfolio company Xinchao Media Group founder and chairman Jixue Zhang won the "China's New Growth Innovators 30" digital innovation figure award for pioneering the "offline media traffic-ization" business model and establishing China's first community media big data platform.
4
Pagoda
Won "China's Top 50 Chain Brand Quality" and two other major awards
Recently, the 7th China Brand Chain Development Conference was held in Shenzhen. Since 2012, the China Brand Chain Development Conference has been successfully held for seven sessions, inviting nearly 400 representative industry entrepreneurs and experts, with considerable industry influence and authority.
Source Code portfolio company Pagoda has been highly recognized by the industry this year for building brand quality and influence, becoming a benchmark enterprise in the brand chain industry's development. It simultaneously won three major awards: "China's Top 50 Chain Brand Quality," "China's Top 50 Chain Brand Influence," and "China's Top 50 Chain Brand Growth Potential," with the first two awards having been won for three consecutive years.
5
Zufang founder and CEO Lei Li
Selected for "2018 Hurun 30×30 Entrepreneurship Leaders" list
The Hurun Research Institute released the 2018 Hurun 30×30 Entrepreneurship Leaders for the second consecutive year, with Source Code portfolio company Zufang founder and CEO Lei Li selected. This list aims to find entrepreneurship leaders under 30 in China, relying on the Hurun Rich List database to conduct in-depth research and comprehensive analysis of nearly 500 innovative enterprises, with a total of 300 young talents from ten industries making this year's list.
View More Code Brain Chronicles
Code Brain Chronicle · September | Meituan IPO on Hong Kong Exchanges and Clearing Limited 4 companies completed funding 8 won 12 awards
Code Brain Chronicle · August | 4 companies completed funding 7 strategic upgrades Code Brain Session 7 detailed WeChat ecosystem and mini-program customer acquisition
Code Brain Chronicle · July | 3 companies completed funding 5 named 2018 China Pre-Unicorns
Code Brain Chronicle · June | Meituan filed IPO application 3 companies completed funding Code Brain Session 6 visited ByteDance
Code Brain Chronicle · March | 5 companies received funding multiple named China's Top 100 Unicorns
Code Brain Chronicle · January | 6 companies completed funding 2 named latest Global Unicorn List
Code BrainChronicle · August | Funding, Upgrades and Honors
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