Zhongyu Residential Completes 50 Million Yuan Series A+ Round | Led by Oasis Capital

Zhongyu is one of the few domestic manufacturers capable of large-scale batch production and supply. Its two founders accumulated extensive industry experience at two publicly listed Chinese building materials companies, enabling them to identify the major trend toward productized interior finishing services and commit to it, making them one of the very few teams today capable of delivering at scale.

Zhongyu Group was co-founded by Wu Tangxiang, a former executive at Oriental Yuhong (002271.SZ), and Liang Baowei, deputy general manager and director of new product development at BNBM (000786.SZ). It is a well-known industry player in prefabricated interior component and system services. The group recently completed a 50 million yuan Series A+ funding round, led exclusively by Oasis Capital. The proceeds will be used to further expand Zhongyu Residential's market presence, develop the Zhongyu Prefabricated Interior Research Institute, and focus on transforming high-performance building materials from traditional construction materials into prefabricated interior components.

Pushing Forward Against the Pandemic, Breaking Through Against the Odds

Within the prefabricated interior finishing industry, there's a saying: "Zhongyu in the south, Heneng in the north," referring to the two leading players, Zhongyu and Heneng. Heneng was established earlier and operates primarily through direct sales, while Zhongyu carved out a different path, focusing on channel operations and positioning itself as a prefabricated interior supply chain service provider — offering component parts, systems, and solutions to renovation companies. This model was chosen for two main reasons: first, prefabricated renovation requires on-site measurement, installation, and other offline services, so strengthening communication with partners improves service quality and smooths project delivery; second, distributors typically pay cash on delivery, reducing the company's cash flow pressure. Currently, the Zhongyu Residential team numbers around 50 people, with manufacturing facilities employing approximately 100 workers. In the second half of this year, Zhongyu Residential will begin preparing for the northern China market, laying groundwork for market expansion in the coming years.

This clear positioning and strategic planning enabled Zhongyu to weather the pandemic's impact and once again earn capital market recognition.

Three Engines Driving Together, Empowering Industry Upgrade

Since its founding, Zhongyu established East China's largest intelligent manufacturing base for prefabricated interior components in Jiangsu. With a fully industrialized production model, the company achieves an annual output of 30,000 sets of whole-house prefabricated interior systems, generating annual output value of 700 million yuan. Previously, Zhongyu Residential has completed supporting services for major projects with companies including Jinke Real Estate, Beijing Chengjian Yatai, Gold Mantis, China Construction Eighth Engineering Division, Beijing Chengjian Seventh Construction, China Resources Land, Greentown Group, and Guangtian, and provided approximately over 10,000 sets of prefabricated components and system solutions for the Beijing Municipal Administrative Center's transitional housing project.

How to better fulfill its role as a service provider is a question Zhongyu has continuously pondered. Its current layout spans three channels — engineering, retail, and strategic — with all three engines driving together to advance the prefabricated industry's comprehensive development and overcome the labor shortages, high costs, and rising labor expenses of traditional renovation.

In the engineering market, Zhongyu Residential's average project value ranges from 1,300–2,500 yuan/m². In retail, its wall system manufacturing price is 150–350 yuan/m² — overall pricing that is reasonable and meets client expectations.

Currently, prefabricated renovation holds a small share of the home decoration market. Wu Tangxiang believes prefabricated renovation still needs a 2–3 year evolution process, encompassing production line upgrades, industry professional training, prefabrication software improvements, and material performance upgrades by building materials manufacturers, with scaled production progressively driving down costs. Meanwhile, traditional renovation is seeing continuously rising labor costs due to worker shortages. Once prefabricated renovation costs fall 10% below traditional renovation costs, prefabricated renovation's market share will see substantial growth. Wu Tangxiang estimates this evolutionary process will take roughly 3–5 years.

The home furnishing industry is on the verge of a track upgrade, and Zhongyu is ready.

Portions of this article sourced from 36Kr exclusive.

Oasis Capital is a new-generation Chinese venture capital firm dedicated to discovering the most vital entrepreneurs of the coming decade in China, growing alongside them, and creating long-term value. "Championing Vitality" is Oasis's vision and mission. This vitality represents both the direction of structural transformation in the era and the resilience and evolutionary power of entrepreneurs. Oasis Capital focuses on early and growth-stage investments, with individual ticket sizes of $3 million to $30 million, concentrating on technology-enabled services in education, healthcare, and enterprise services, supporting China's technology-driven new service upgrade.