Nanjing Liangrun New Consumer Industry Fund (hereinafter referred to as "Liangrun Fund") and Runxing Ruihua (Shenzhen) Sci-Tech Achievement Transformation Fund (hereinafter referred to as "Shenzhen Sci-Tech Transformation Fund") under CR Capital Management jointly completed the strategic capital increase of Fengyi Technology projects incubated by SF Group. The two funds hope that through this layout of upstream supply chain in subdivided technology fields, they can seize the opportunity of the overall industrial change brought by technological innovation, and jointly discover new business models and modes, thus driving the coordinated development of industrial resources.
About Fengyi Technology:
Fengyi Technology is the only UAV integrated service provider in China which has achieved closed loop of full commercial links. The core technology covers the whole life cycle of UAV logistics, such as mechanical structure, flight control system, navigation system, mission system, power system, battery system, ground hardware system, test system and operation control system; self-built ground support and automation terminals are provided for realizing unmanned scenarios by virtue of a closed-loop system. As the first enterprise in China to obtain the UAV aviation operation (pilot) license, it has completed the construction of systems concerning normalized and large-scale safe operation of logistics UAVs, with fully independent intellectual property rights and nearly 400 declared patents.
Responding to this investment, Mr. Zhu Feng, co-director of CR Liangrun Fund and investment director of Fengyi Technology projects, said that although Fengyi Technology is an enterprise that has just "started" in industrial application, it has been leading the industry, by virtue of continuous exploration and bold innovation in business model, as well as technological accumulation in the past few years. Compared with the logistics UAVs in Europe and the United States, those of Fengyi Technology have advantages in terms of product safety, stability, durability, production cost, application scenarios, and operational efficiency, which have won numerous awards internationally. Meanwhile, in addition to serving as additional logistics capacity within the SF system, the UAVs of Fengyi Technology have also been carried out pilot applications in the transportation of medical supplies and agricultural products for a long time, which has created certain social and economic benefits in related fields. We observed that Fengyi Technology's business can generate close cooperation with CR's industrial sectors, while there is great room for resource coordination with COFCO Capital, Nanjing National Agricultural High-Tech Industry Demonstration Zone and other partners. The project team formed by Liangrun Fund and Shenzhen Sci-Tech Transformation Fund will jointly promote the industrial cooperation and resource coordination between Fengyi Technology and CR's various partners.
Ms. Cai Yajun, co-director of Shenzhen Sci-Tech Transformation Fund, said that Fengyi Technology is a high-quality technology innovation enterprise in Shenzhen, with the world's leading capabilities in UAV and platform data algorithms, operation, maintenance, and control. Backed by the SF system, the emphasis on building a low-altitude logistics network of UAVs covering major city clusters in the Greater Bay Area, with Shenzhen City as the center, will greatly improve the land transportation efficiency, which is an effective solution to alleviate the energy efficiency of transportation in the current logistics industry. The Shenzhen Sci-Tech Transformation Fund attaches great importance to the disruptive innovation of logistics UAVs to the industry and the social and commercial value they will create in the future. This will also become a new highlight and breakthrough of Shenzhen as a pioneering demonstration zone of socialism with Chinese characteristics.
Mr. Jiang Mingtao, CEO of Fengyi Technology, said that with years of exploration and accumulation, the company could realize large-scale commercial application of logistics UAVs. By cooperating with the two funds under CR Capital Management this time, Fengyi Technology will rely on the resources of all parties to further explore and develop the integrated logistics services and instant supply chain market for urban and rural community residents under the guidance of relevant policies, and provide support for the logistics industry to continuously improve service levels, expand service scope and cut down service costs.
With the world's largest logistics market, China is also witnessing its express logistics industry in the stage of rapid development. From January to October 2021, the business volume of national express service enterprises totaled 86.72 billion pieces, increasing by 34.7% YOY; the business revenue totaled 833.98 billion yuan, increasing by 20.7% YOY. Among them, the intra-city business volume totaled 11.34 billion pieces, increasing by 15.1% YOY. The logistics industry is growing at high speed but facing white-hot competition. As a whole, it urgently needs a means of transportation that can improve efficiency and reduce cost. Therefore, the national policies strongly support the intelligent and unmanned characteristics of the logistics industry. Fengyi Technology's logistics UAVs with different loads meet the new requirements arising from the development trend of the industry and adapt to the needs of diversified application scenarios.
In addition to meeting the needs of business development, during the COVID-19 pandemic in 2020, Fengyi Technology's UAVs built a contactless air emergency path within 24 hours in stricken areas, providing small-batch, multi-batch, point-to-point medical and civilian supplies and logistics solutions and transportation in Wuhan and many other areas, alleviating the pressure of supplies transportation and guarantee in the affected areas, with more than 5,200 flights, 730 hours of flight time, and 22,000 kilometers of flight distance, and transporting more than 20 tons of supplies including protective clothing and medicines.
About the Fund
The Liangrun Fund is an industrial investment fund jointly established by CR Capital Management Co., Ltd. (hereinafter referred to as "CR Capital Management"), COFCO Capital Investment Management Co., Ltd. (hereinafter referred to as "COFCO Capital") and Jiangsu Nanjing National Agricultural High-Tech Industry Demonstration Zone Development Group Co., Ltd. (hereinafter referred to as "Nanjing Agricultural High-Tech Group"). The Fund focuses on consumer products related to people's livelihood, as well as innovative technology projects closely related to the new supply chains. Both CR Group and COFCO Group are central enterprises deeply engaged in the field of people's livelihood. Nanjing National Agricultural High-Tech Industry Demonstration Zone is among the first batch of national agricultural high-tech industry demonstration zones in China as well as the only one in the Yangtze River Delta. Relying on their own advantageous resources, all parties give full play to their industrial leading force, and around technology innovation, food industry upgrading and consumption structure upgrading, explore and cultivate high-quality projects, provide valuable value-added services and lead high-quality development of the industry.
The Shenzhen Sci-Tech Transformation Fund is managed by CR Capital Management. It was formed based on the concept of "government support, social capital cooperation and the transformation of scientific research achievements". It focuses on early-stage investment in frontier technologies to form a portfolio of full life-cycle funds for CR Capital Management. The Fund is committed to actively exploring new technologies, new industries and new formats, cultivating new economic growth points, fully coordinating with CR's industrial resources, facilitating the innovative development of technology innovation enterprises in the Greater Bay Area, and contributing to incubation of new businesses by the Group as well as industrial innovation and upgrading.
