Meituan IPO on Hong Kong Exchanges and Clearing Limited; 4 Companies Complete Funding Rounds; 8 Companies Win 12 Awards | Source Code Capital Monthly · September

源码资本·September 30, 2018·0·0

Four years since Source Code Capital's founding, the many member companies of the Source Code family have grown into a thriving forest, and Ma Hui has become a platform where Source Code Capital's LPs, partners, and entrepreneurs exchange ideas. *Ma Hui Chronicles* records the small steps of progress made by our friends, shares the joy of growth, and looks forward to an even brighter future.

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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 in their growth, and look forward to an even brighter future.

September

Ma Hui

Journal

Briefing

"Financing"

Meituan (3690.HK) IPO

Listed on Hong Kong Exchanges and Clearing Limited

Yijiupi raised $200 million in Series D funding

Jointly led by Meituan and Tencent

Existing shareholder Source Code Capital continued to increase its stake

WeiMai completed $30 million in Series B funding

Existing shareholder Source Code Capital continued to increase its stake

Juli Xinfang raised tens of millions of dollars in Series B+ funding

Led by Eight Roads, with strategic investment from 58 Group

Existing shareholder Source Code Capital continued to increase its stake

Huishoubao received strategic investment from Alibaba in Series C1

"Upgrades"

ByteDance Nanjing R&D Center

Established AI Research Institute

Knowbox integrated into National Education

Resources Public Service System

Supporting basic education

Pagoda's "Hundred Fruits, Hundred Counties"

Signed with nationally designated poverty counties

Suishou established Finance Business School

Testing knowledge-based monetization

"Quotes"

Wencheng Zheng: "Internet + Education" will inevitably shift to "Technology + Education"

Ye Liu: Five Ultimate Profiles of Future Education Companies

Peng Wang: In the Internet era, innovation reigns supreme through "software and hardware combined"

"Honors"

ByteDance selected by MIIT for AI

and real economy deep integration innovation project

ByteDance, Zenjoy recognized by Facebook

2018 China Top 50 Brands Going Global

2018 China Mobile Apps Going Global Top 15

2018 China Games Going Global Top 15

ByteDance, CHJ Automotive named to 2018

China's Top 100 Most Commercially Valuable AI Enterprises

Pagoda, CHJ Automotive named to

China's Top 50 Most Investment-Worthy Enterprises

Knowbox named to China AI Top 50

Hai Feng Education, Knowbox named to

2018 China Education Industry Hard (Quasi-) Unicorns

2018 China Education Innovation & Growth Top 30

ByteDance, KnowLeGene named to

2018 AI Commercial Value Top 100

Car300 named to 2018 Big Data Hard (Quasi-) Unicorn List

KnowLeGene named to 2018 China Innovative Enterprise

Milestone

Meituan (3690.HK)

IPO on Hong Kong Exchanges and Clearing Limited

On the morning of September 20, at Meituan's listing ceremony at HKEX, CEO Xing Wang led the management team alongside an 85-born Meituan Waimai delivery rider and merchant and user representatives to strike the opening gong, announcing Meituan's official trading debut. The stock rose 6.16% within ten minutes of opening — a standout performance among recent Hong Kong listings.

Food is the paramount necessity of the people. Meituan seized on "eating" — the most central category in the lifestyle services industry — to build a large e-commerce platform. By using food to attract and retain users, then extending into other categories, it gradually covered consumers' entire lifecycle, from "eating" to "living," from food delivery to transportation, business travel, entertainment, and shopping. Meituan built its "Food + Platform" strategic core and achieved a complete online-offline closed loop, forming a super platform.

Yijiupi raised $200 million in Series D funding

Jointly led by Meituan and Tencent

Existing shareholder Source Code Capital continued to increase its stake

On September 20, Source Code Capital portfolio company Yijiupi announced the completion of its Series D funding round at a valuation of $1.1 billion, officially joining China's internet "unicorn club." In October 2016, Yijiupi completed its Series C round. Nearly two years later, it launched a new funding round in June this year and quickly signed the Series D capital increase agreement. The signed Series D funding amount is reportedly $200 million, jointly led by Meituan and Tencent, with follow-on investment from China Everbright Limited and others, and existing shareholder Source Code Capital continued to increase its stake. Lighthouse Capital continued to serve as the exclusive financial advisor for the company's financing.

Source Code Capital led Yijiupi's Series B round, marking one of its important investments in the industrial internet space. Through "Ma Hui," it actively facilitated multi-dimensional cooperation between Yijiupi and Meituan, achieving category deepening, category expansion, and strong GMV growth.

WeiMai completed $30 million in Series B funding

Existing shareholder Source Code Capital continued to increase its stake

On September 13, Source Code Capital portfolio company "WeiMai" announced the completion of $30 million in Series B funding. This round was led by Qianji Capital, with follow-on investment from Source Code Capital, Yuanjing Capital, Matrix Partners China, and founder Jialin Qiu personally.

As the lead investor in the angel round, Source Code Capital has followed the company's development since its founding in 2015, bullish on the growth potential of the "Internet + Healthcare" industry, and has continued to increase its stake in subsequent funding rounds. It strongly endorses WeiMai's positioning as a "localized trust-based doctor-patient service platform" and its model of building a new type of localized doctor-patient trust service relationship on its platform — akin to "WeDoctor + Haodf + Alipay." By using internet technology to transform the service efficiency of traditional healthcare, there will be enormous room for future development.

Juli Xinfang raised tens of millions of dollars in Series B+ funding

Led by Eight Roads, with strategic investment from 58 Group

Existing shareholder Source Code Capital continued to increase its stake

Source Code Capital portfolio company and new home e-commerce platform "Juli Xinfang" recently raised tens of millions of dollars in Series B+ funding, with valuation and funding amount both setting new records for the new home e-commerce track. This round was led by Fidelity International's Eight Roads, with existing shareholders Source Code Capital and Vertex following on, strategic investment from 58 Group, and Zhiyuan Capital serving as the exclusive financial advisor. Founded in 2015, Juli Xinfang was among China's earliest internet companies focused on new home transactions. After years of development, e-commerce models have covered most categories, but real estate e-commerce has lagged due to low frequency, long decision cycles, complex products, and unique transaction processes.

As an existing shareholder from the Series A round, Source Code Capital has witnessed Juli Xinfang's development throughout. Source Code Capital's Xingshi Wang commented: "Juli Xinfang deconstructs every link in the transaction, using internet tools to optimize efficiency and experience at each step, greatly improving overall transaction efficiency and service experience, and achieving multi-party win-win development for upstream and downstream customers and consultants."

Huishoubao received strategic investment from Alibaba in Series C1

Source Code Capital portfolio company Huishoubao completed its Series C1 round, with strategic investment from Alibaba Group. The two parties had already established deep cooperation across multiple areas including Idle Fish credit-based recycling, Idle Fish Premium, Taobao and Tmall trade-in programs, and Alibaba Philanthropy. Following this funding, Huishoubao will work with Idle Fish to accelerate the layout of the Idle Fish open platform. Huishoubao will also further expand its offline business, broaden scenarios for precise user reach, complete the online-offline integration of used electronics recycling, and further establish standards across products to services.

Source Code Capital's Yiwen Hao said: "As Huishoubao's Series A investor, Source Code Capital greatly looks forward to the transformative power that the combination of Alibaba's strong resources and Huishoubao's excellent execution capabilities will bring to the used electronics recycling market."

What's New

ByteDance Nanjing R&D Center established

AI Research Institute founded

ByteDance announced it will establish an R&D center in Nanjing. A ByteDance representative explained that over the next two years, the Nanjing R&D center will gradually build a technical R&D team of approximately 300 people, recruiting outstanding technical talent including AI researchers, algorithm engineers, and product R&D engineers.

Additionally, ByteDance's Nanjing R&D Center will establish an AI Research Institute, combining Nanjing's advantages in research talent from higher education institutions with the company's strengths in massive data and advanced technology to jointly tackle fundamental core problems in AI and actively explore product application transformation, cultivate more local AI talent, and promote the development of Nanjing's AI industry ecosystem. The representative also noted that the company will open its existing mentorship programs, young visiting scholar programs, and strategic research cooperation Everest Program to Nanjing university faculty and students.

Knowbox integrated into National Education Resources Public Service System

Supporting basic education

Knowbox officially connected to the National Education Resources Public Service System, overseen by the Central Audio-Visual Education Center. This system is China's educational public infrastructure, designed to serve teachers and students at all levels through educational resources public service platforms. This means Knowbox has achieved interoperability with the National Education Resources Public Service System, and will going forward leverage shared massive data on teaching and learning behaviors to drive the construction and upgrading of national educational infrastructure.

The National Education Resources Public Service System is China's innovative educational public service infrastructure. Using cloud computing and other technologies, it promotes interoperability between educational public services, regional educational resources platforms, and third-party resources service platforms, jointly serving all levels and types of education and building network communication, sharing, and application environments for the education system and teachers and students nationwide.

Pagoda's "Hundred Fruits, Hundred Counties" officially launched

Signed with nationally designated poverty counties

The Fourth China Fruit Industry Brand Conference was held in Changsha, Hunan, alongside the Second National Fruit Industry Poverty Alleviation Conference. This conference was guided by the All China Federation of Supply and Marketing Cooperatives and Hunan Provincial People's Government, and co-hosted by the China Fruit Marketing Association, China Poverty Alleviation Volunteer Service Promotion Association, and other organizations.

Pagoda attended as an advanced unit in fruit industry poverty alleviation, and completed "Hundred Fruits, Hundred Counties" poverty alleviation strategic cooperation agreements with Mayang County Government in Hunan and Zhouzhi County Government in Shaanxi. As a "new starting point" for Pagoda's poverty alleviation work, under the guidance of the China Poverty Alleviation Volunteer Service Promotion Association, Pagoda will leverage policy as its foundation, capital as its catalyst, technology as its support, and distribution channels as its guarantee to fully develop "Cheng Yi Cheng" (oranges from Mayang County, Hunan) and "Mi Zong" (kiwifruit from Zhouzhi County, Shaanxi), using its full industry chain advantages to help new farmers grow brands and build branded industries.

Suishou established Finance Business School, testing knowledge-based monetization

Empowering finance experts to build a leading financial literacy education platform

China's leading personal finance platform Suishou launched its financial literacy education platform — Suishou Finance Business School — aiming to leverage its large user base and precise financial scenarios to aggregate and empower finance experts, building a systematic financial knowledge learning, education, and sharing platform for users.

Building on years of exploration, Suishou's establishment of Suishou Finance Business School chose knowledge-based monetization as a new approach to financial literacy education. By precisely matching finance experts, it helps learners aspiring to acquire high-quality, trustworthy financial knowledge to improve their financial literacy and overcome financial anxiety.

Quotes

Wencheng Zheng (Founder & CEO, Hai Feng Education)

This year Hai Feng Education will become a ten-thousand-person-scale enterprise. Whoever can more quickly and stably reach ten-thousand-person scale while maintaining per-person efficiency and organizational efficiency at the same level as hundred-person or thousand-person enterprises will take the lead. For the endgame of online education: first, the market size and growth rate of online education will definitely increase substantially. Second, "Internet + Education" will inevitably shift to "Technology + Education." In the future, we hope to become a beloved and trusted education technology enterprise, driven by technology to make personalized teaching accessible to all. In terms of values, I believe the most important thing is empathy. When a parent from a third-tier city spends 10,000 yuan to send their child to our classes, I can feel how hard-won that money is, and we must live up to that money and that trust.

Ye Liu (Founder & CEO, Knowbox)

To summarize the profile of future education companies, it consists of five elements: First, the company should ideally generate rich data scenarios — having both data and scenarios. Second, it should ideally have large-scale personalized service capabilities, here referring to AI. Third, knowledge delivery. The company should ideally also be a film and television company. Why? With AI but no content carrier, if it has film and television content production and video production capabilities, then when providing at large scale, video is after all the best basic carrier of knowledge. It can massively reduce teachers' workload, replace part of teachers' work, and massively reduce teacher training costs. Fourth, it should ideally have strong interactive motivation, achieved through games, so it should be a gaming company. Fifth, supervision, and also large-scale teacher management using human-machine hybrid approaches. So the future education company should be a large-scale AI, film and television, and gaming service company. This is my portrait of the ultimate education company, and I hope Knowbox can become such a company.

Peng Wang (Founder & CEO, Juli Xinfang)

The essential difference between online and offline companies doesn't lie in whether they operate physical stores or build websites, but in whether the entire company's operating system is run by data or by human judgment. Based on this capability, companies can be divided into three development stages: Stage one, data-assisted decision-making, where humans are the decision-making subject and data serves as reference. Stage two, data-guided decision-making, where most people must comply with metrics and data requirements. Stage three, data-driven decision-making, where intelligence provides standards and solutions based on current conditions. Juli Xinfang is currently in the transition from stage two to stage three, and is also the most advanced company in the real estate industry in using data-driven operations. Over the past three years of rapid growth, data applications have played a crucial role for Juli. Having launched in the internet era, Juli Xinfang deeply integrates technology with direct-service operations, improving developer turnover efficiency and reducing cost pressure while optimizing user experience.

Honor & Awards

ByteDance selected by MIIT for AI

and real economy deep integration innovation project

The Ministry of Industry and Information Technology announced the 2018 AI and Real Economy Deep Integration Innovation Project list. This list covers intelligent control, intelligent understanding, manufacturing intelligence enhancement, industrial intelligent upgrading, intelligent livelihood services, training resource service platforms, security guarantee systems, and standard testing and evaluation systems.

Source Code Capital portfolio company ByteDance's selection was for its distributed machine learning platform-based general AI application solution project. Overall, this core foundational project supports the R&D and application of high-precision, low-cost intelligent sensors and AI-specific chips, AI open-source development platform construction, and development computing service platforms meeting complex training needs.

ByteDance, Zenjoy

recognized by Facebook 2018 China Top 50 Brands Going Global

2018 China Mobile Apps, Games Going Global Top 15

Facebook held its 2018 Facebook Overseas Marketing Summit in Shanghai and released the 2018 China Top 50 Brands Going Global list. From July to August 2018, KPMG conducted research among 2,400 consumers of different genders, ages, education levels, and income levels across eight countries, focusing on four key verticals for Chinese companies going global — consumer goods, e-commerce, mobile apps, and games — and combined this with Facebook performance metrics to select the China Top 50 Brands Going Global. Source Code Capital portfolio companies ByteDance and Zenjoy were selected. Additionally, ByteDance was named to the 2018 China Mobile Apps Going Global Top 15, and Zenjoy was named to the 2018 China Games Going Global Top 15.

ByteDance, CHJ Automotive named to

2018 China's Top 100 Most Commercially Valuable AI Enterprises

The 2018 China Artificial Intelligence Summit (CAIS 2018), themed "AI Empowerment, Driving the Future," was held in Nanjing. The conference focused on the current development and future of China's AI industry, with discussions and exchanges on technology, innovation, talent cultivation, and commercial applications.

At this summit, the organizing committee conducted in-depth exploration of the current AI industry and scenario commercialization, combining existing commercial value, development trends in sub-sectors, and product innovation to release the "2018 China's Top 100 Most Commercially Valuable AI Enterprises" list, aiming to provide more reference for industry development and promote rapid industry growth. Based on AI landing scenarios, the list covered 100 enterprises in fields including deep learning, autonomous driving, computer vision, cloud services, AI chips, and big data intelligent hardware. Source Code Capital portfolio companies ByteDance and CHJ Automotive were named to this top 100 list.

Pagoda, CHJ Automotive named to

China's Top 50 Most Investment-Worthy Enterprises

The 2018 PEDaily "China's Top 50 Most Investment-Worthy Enterprises" list was officially announced. As China's first enterprise selection from an investment dimension, Venture50 has accompanied China's equity investment market for thirteen years and has become an authoritative reference standard for judging high-growth enterprise investments, as well as a barometer reflecting the year's most growth-potential enterprises.

This selection included 5,000+ initial evaluation enterprises, with 160+ institutions participating in recommendations and 80+ industry media and 50+ government/park/industry associations providing strong support. Over six months of professional review, more than 500 judges from frontline active institutions participated in evaluation. After meticulous selection through initial evaluation, re-evaluation, and offline roadshows, the 2018 "China's Top 50 Most Investment-Worthy Enterprises" list was born, with Source Code Capital portfolio companies Pagoda and CHJ Automotive making the list.

Knowbox named to China AI Top 50

The only education sector company on the list

The China AI 50 list and related research were released at the World Economic Forum's Davos meeting in Tianjin. Source Code Capital portfolio company and intelligent education technology company Knowbox was selected alongside DJI, SenseTime, and 48 other companies, becoming the only education sector startup on the list.

This year's annual meeting theme was "Creating an Innovative Society in the Fourth Industrial Revolution," focusing on cutting-edge technology experiences around artificial intelligence. The China AI 50 list released at the meeting收录了中国50家最成功，也最具有未来发展潜力的中国AI企业，为中国日益蓬勃的AI行业提供了详实的、公司层面的独到见解。这份榜单考量了多位因素，研究了1000多家公司，采访了诸多行业专业人士，重审了大量现有的研究和数据，历经数月才最终得以呈现，对国内人工智能行业整体的进行详尽分析。在涉猎领域层面，这50家明星企业大都集中在计算机视觉、语音技术、机器人、自动驾驶、AI芯片等领域，作业盒子是唯一一家智能教育公司。

Hai Feng Education, Knowbox named to

2018 China Education Industry Hard (Quasi-) Unicorns

2018 China Education Innovation & Growth Top 30

The "2018 Education Industry Unicorn Summit," hosted by Cyzone and co-organized by iHeima, Chuangyejia, and Matchbox, was held in Beijing. At the conference, the "2018 China Education Industry Hard (Quasi-) Unicorn List" was officially released, with 50 education enterprises selected. Starting in July, after nearly two months, 74 investment institutions participated in project recommendations, 197 education enterprises registered, and 2,126,618 people participated in online voting. Ultimately 50 education enterprises stood out, with Source Code Capital portfolio companies Hai Feng Education and Knowbox selected.

The 2018 Innovation China DEMOCHINA Finals and Autumn Summit, hosted by Cyzone, was held in Hangzhou. This Innovation China Autumn Summit focused on internet education for the first time, featuring an Internet Education Summit and China VC Investment Summit Forum, and presenting the 2018 China Education Innovation & Growth Top 30 list. The list was compiled by Cyzone Research Center after systematic research on 200+ domestic internet education enterprises, evaluating enterprises across multiple dimensions including core team strength, development capability, funding capability, and innovation capability. Source Code Capital portfolio companies Hai Feng Education and Knowbox made the list.

ByteDance, KnowLeGene

named to 2018 AI Commercial Value Top 100

The 2018 "China Artificial Intelligence International Cooperation Conference" was held in Chengdu, themed "Intelligence Leading Industrial Upgrading, Cooperation Accelerating Integrated Win-Win." The conference provided in-depth interpretation of AI technology development trends and explored the future of AI development. At the conference, the "2018 AI Commercial Value Top 100 List" was announced, with Source Code Capital portfolio companies ByteDance and KnowLeGene selected.

This list was jointly released by Artificial Intelligence magazine and Robot Industry magazine, precisely evaluating AI enterprises and their related capabilities from practical technology and application perspectives. The focus was on finding and encouraging enterprises committed to AI research, especially those that have entered actual scenario applications and received capital market attention. It also emphasized guiding accelerated integration of AI with the real economy, making AI technology and products available to industries and the general public more quickly.

Car300 named to 2018

Big Data Hard (Quasi-) Unicorn List

The "China Unicorn (Autumn) Summit," hosted by Nanjing Gulou District People's Government and co-organized by Gulou High-Tech Zone Management Committee, Gulou District Development and Reform Bureau (Economic and Information Bureau), Cyzone, and B2B Circle (an enterprise service vertical media under iHeima), was successfully held. At the summit, the "2018 Big Data Hard Unicorns and Quasi-Unicorns" list was announced.

This selection launched on July 1, combining institutional recommendations and enterprise self-nominations. After two months of preliminary review, voting, and final review, over 100 projects registered with total votes exceeding 480,000. Finally, the review panel comprehensively evaluated online voting with five criteria — advancement, innovation, growth, scale, and sustainability — selecting 20 China Big Data Hard Unicorns and 30 China Big Data Quasi-Unicorns. Source Code Capital portfolio company Car300 was selected.

KnowLeGene named to 2018 China Innovative Enterprise

The Economic Observer's Eighth Innovation Summit was held in Beijing. This summit, themed "Intelligence · Meeting the Future," focused on enterprise development directions in the new era, integrating authoritative think tanks to establish a scientifically rigorous evaluation system. From multiple dimensions including strategy, talent, leadership, culture, technology, products, and business models, it selected the most innovative enterprises of 2018. With industry-leading technological innovation capabilities, Source Code Capital portfolio company KnowLeGene was selected for the "2018 China Innovative Enterprise" list released at the summit.

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