MaHui Member Company Yungu Technology Raises Tens of Millions in B+ Round

Source: 36Kr | Author: Song Hongshan

Hangzhou Cloud Valley Technology, a full-domain collaborative thermal energy management platform, recently announced the completion of a tens-of-millions-of-yuan B+ funding round. This round was led by SPIC Jilin Electric Power and Zhejiang Energy Group. Ding Yun, founder of Cloud Valley Technology, stated that the proceeds will be used for R&D, production, and marketing. Source Code Capital was the investor in the company's Series A round.

The heating industry has long been a high-energy-consumption, high-carbon-emission sector, particularly in northern Chinese cities during autumn and winter. According to data from Tsinghua University's Building Energy Conservation Center, northern urban heating consumed 212 million tons of standard coal equivalent in 2018, generating approximately 550 million tons of carbon emissions — accounting for 26% of building-related carbon emissions and 5.7% of total societal carbon emissions. Against the backdrop of the "dual carbon 2060" goals, heating companies may be designated as priority enterprises for carbon emission control, facing dual constraints on carbon emissions and energy consumption in the future. Addressing energy consumption in the heating industry has become imperative.

In the current energy conservation landscape, heat loss has emerged as a critical source of energy waste. The heating industry chain encompasses the heat source end (such as boiler plants or thermal power plants), the pipeline network that transports heat, and the end-user side (residential households, public buildings, etc.). Statistical data shows that heat loss at the user end accounts for over 70% of total losses throughout the heating process, primarily due to the lack of technical equipment for precise heat metering at the user end. This prevents heating systems from achieving fine-tuned control, resulting in wasted energy resources. Therefore, solving the problem of fine-tuned control at the user end has become crucial — it will help meet dual energy control requirements and resolve disputes among various parties regarding heating settlement.

Founded in 2011, Cloud Valley Technology is a national high-tech enterprise focused on urban centralized heating information products and digital services. The company's products and solutions target the heating market in northern China. Its patented "L-value balance control algorithm," combined with demand-side energy dispatch algorithms in its balance heat meter devices, forms a fully automated thermal energy dispatch closed loop spanning "source, network, load, and storage," building a full-domain collaborative thermal energy management platform. This core technology accelerates the improvement of indoor temperature control, end-user heat metering, and adjustment devices.

Relying on end-user thermal energy demand data, Cloud Valley Technology has achieved closed-loop control of heating systems from the source end to the terminal end, filling the last-mile gap in heating systems. Ding Yun predicts that with recent national policy releases, smart heating will rapidly expand in the existing stock market.

In terms of product shipment volume, as the national carbon neutrality strategy advances, Cloud Valley Technology's balance heat meter terminal device shipments will reach 170,000 units in 2023, ranking among the top three in terminal product shipments. According to Ding Yun: "Cloud Valley Technology is the patent holder of third-generation sensor technology and balance control algorithms. The energy-saving effects of this technology exceed industry averages, and it has been incorporated into the industry standard JB/T13753-2021 Balance Heat Meter. It is also the mainstream technology supported by recent national policy documents promoting heat metering."

Furthermore, Cloud Valley Technology's self-developed balance heat meter innovation extends beyond hardware devices to include embedded internal software. Tailored to the water quality characteristics of northern China's heating systems and combined with thermal energy regulation requirements, the company employed artificial intelligence, edge computing, big data, carbon fiber materials, and other technologies across an eight-year R&D process. The balance heat meter addresses multiple technical challenges of traditional heat meters, including short lifespan, difficult room temperature regulation, and weak balance control algorithms. Its core technologies include electromagnetic flow sensors, patented integrated valve-and-meter structure, AI-based room temperature soft measurement technology, and collaborative energy dispatch technology.

In smart heating platform management, Cloud Valley Technology has developed the "TEMPED Full-Domain Collaborative Thermal Energy Management Platform," which comprises data management, regulation and optimization platforms, and terminal devices combining hardware and algorithms. The platform can operate independently, achieving full closed-loop regulation according to energy-saving requirements specified by heating companies, providing customers with comprehensive heating solutions.

According to Ding Yun, Cloud Valley Technology's business model consists of solutions and EMC (Energy Management Contracting) models — in the former, clients directly purchase bundled hardware and software products from Cloud Valley. Depending on product type and delivery model, client payback periods range from one to two years.

Cloud Valley Technology's founder and CEO Ding Yun graduated from Zhejiang University's automation program. He was a founding team member of Supcon Technology (688777), China's flagship automation enterprise, and served as general manager of Supcon Instruments. An expert in the automation field, he has accumulated over 20 years of practical experience across heat sources, networks, stations, and end users.

Notably, Cloud Valley Technology is pursuing a "smart heating + internet ecosystem" strategic partnership with Ant Group. This collaboration will first be implemented in the Daqing region, and will become the first internet ecosystem smart heating system based on blockchain technology. The initiative aims to participate in solving energy waste problems and advancing carbon reduction goals, while also promoting the adoption of the digital RMB and expanding service boundaries for heating enterprises. Additionally, through Ant Group's blockchain-based digital encryption transmission technology, the partnership will provide trusted data transmission and smart contracts, opening trusted settlement channels for EMC models — thereby building a full smart heating ecosystem model that will also empower Cloud Valley Technology's business model.