They voted for this man of science: a little-known track is on fire

Another 100 billion market is on the eve of its outbreak.

On this hidden track, China can have at least 2-3 companies with a market value of 100 billion yuan.

This little-known track is on fire.

Origin is a humble IPO. On March 11 this year, ZWSoft successfully listed on the Science and Technology Innovation Board, and its share price soared by 171% on the first day. The stock price performance in the following months was even more amazing: the issue price soared from 150.5 yuan to the latest 527 yuan, and the market value broke through 30 billion yuan. This company, which has been established for more than 20 years, can be said to be a hit overnight, because it has a very golden label: industrial software.

Industrial software has always been known as the “crown” in the industrial field . This track is truly related to the “stuck neck” project of the country’s industrial innovation and development, and has long been monopolized by overseas giants. Now that ZWSoft’s listing has skyrocketed, VC/PE organizations have seen a huge opportunity for domestic replacement of industrial software.

Now, domestic industrial software companies have finally come into the spotlight, and VC/PE enthusiasm is high. Everyone believes that even bigger giants will come out on this track called industrial “infrastructure”. Sanweijia , an industrial software company focusing on the home furnishing field, is also a quasi-unicorn, once again entering the vision of VC/PE.

Born in Guangzhou, the “customized capital”, Sunway Home started with a 3D home design software. Cai Zhisen at the helm was an authentic Chaoshan native. He graduated from South China University of Technology and worked successively in Element Software and Shangpin Home Delivery . In 2013, Cai Zhisen, who had in-depth thinking about the accumulative disadvantages of the home furnishing industry, decided to start a business. He took three former colleagues and founded Sunway Home, committed to using technology to promote industry changes. Early financing was difficult, but Sunway Home still attracted well-known investors such as SoftBank China, Guangfa Xinde, Red Star Macalline and Alibaba , and grew into an invisible champion in the home industry software field.

They voted for this man of science: a little-known track is on fire

An unknown company has a market value of 32 billion

This quasi-unicorn ran out

With an IPO, this hidden track began to emerge.

In March of this year, Guangzhou-based ZWSoft successfully listed on the Shanghai Stock Exchange Science and Technology Innovation Board, becoming the first listed company in A-share R&D and design industrial software. Founded in 1998, Zhongwang Software is mainly engaged in the R&D, promotion and sales of CAD/CAE/CAM and other R&D and design industrial software, and has been rarely paid attention to. It was not until 2018 that ZWSoft carried out the first round of 80 million yuan financing, led by Fortune Caizhi, and the Aerospace Science and Industry Investment Fund and other institutions followed the investment.

However, this company with annual revenue of less than 500 million yuan is now highly sought after by the capital market. After being listed, the stock price of ZWSoft has risen from the issue price of 150.5 yuan per share. As of the close on July 16, the stock price of ZWSoft was 527 yuan, with a market value of over 32 billion yuan.

Easily support tens of billions of market value, ZWSoft has ignited VC/PE’s enthusiasm for industrial software. Sorting out this unpopular track, we found a quasi-unicorn figure-Sanweijia, an industrial software company focused on the field of large home furnishings, also headquartered in Guangzhou. Starting in 2019, Sunway Home has been on the list of “Guangzhou Future Unicorn Innovative Enterprises” for three consecutive years. According to data, Sunway Home has completed four rounds of financing since its establishment. Investors include not only first-line investment institutions such as SoftBank China and Guangfa Xinde, but also giants with industrial backgrounds such as Alibaba and Red Star Macalline.

They voted for this man of science: a little-known track is on fire

Time went back to 2014, when Sanweijia, which had just been established for a year, completed the construction of the founding team, and the funds in hand were almost used. After thinking twice, Cai Zhisen, founder and CEO of Sunway Home, decided to raise funds. But with a technical background, he has never been involved in financing. When he first met with investors, he didn’t even prepare a BP (business plan).

Some people have a beard, and Cai Zhisen “cuts his hair” to express his determination: “If I can’t get the money, I will keep my head bald.” At that time, Cai Zhisen was bareheaded, visiting investors while polishing his business, traveling around Beijing, Shanghai, and Guangzhou Ground. “The financing process was really hard, and fortunately, I found investors who appreciated us.” Cai Zhisen sighed.

At the end of 2014, Sunway Home and SoftBank China signed an agreement; in April 2015, Sunway Home officially announced the A round of financing, with the investors being SoftBank China and Guangfa Xinde. Speaking of this investment that year, SoftBank China revealed the logic behind it: software changes traditional industries. And Sanweijia is a sentimental and passionate team that can accomplish this.

“The degree of informatization in the home furnishing industry is low, and the chain of this industry is very long-from the raw materials and parts required for home furnishings to the delivery of finished products, and even the final after-sales service, the degree of complexity is rare. Closed loop, that is undoubtedly a very difficult task, who can complete this task, its value will be immeasurable. And the Sanweijia team is doing this difficult and correct thing.” Guangfa Xinde said.

So far, the financing situation of Weiweijia has gradually been opened. At that time, although the company had no financing needs, investors still came to the door actively, and Red Star Macalline was one of them. As a leading domestic home furnishing company, Red Star Macalline believes that artificial intelligence and big data are reconstructing home consumption, and it has been looking for related projects.

March 2018, three-dimensional home completed $ 300 million B round of financing, led by the Meikailong vote, the old shares Neusoft silver Chinese and wide letters with the German vote. Red Star Macalline talked about the logic behind this investment: “When the industrial chain of the home furnishing industry forms a closed loop, customer needs, experience, and awareness of a product can be quickly passed to the factory side. In the past, we It is more about imagining this matter, and Sanweijia has turned our imagination into a real and actionable business case.”

In 2019, China’s venture capital market has entered a cold winter, and VC/PE institutions have become more cautious in their actions. At that time, financing cases of more than 100 million yuan were rare. In such a deserted background, Sunway Home still successfully obtained 500 million yuan investment from Alibaba, which was a sensation. In Cai Zhisen’s view, Sunway Home and Ali share a common goal and can help the entire industry solve industry efficiency issues. After the completion of this round of financing, Weiweijia’s valuation is nearly 3 billion yuan .

Regarding whether Sunway Home has a new round of financing or a listing plan, Cai Zhisen is very frank, “The cash flow of Sunway Home is relatively healthy, and its revenue is relatively stable. Whether financing or going public is actually a matter of course.”

A Chaoshan Polytechnic male,

Resign to start a business and break into this unpopular track

Behind Sanweijia is the entrepreneurial story of a Chaoshan man.

Cai Zhisen was born in the Chaoshan area of ​​Guangdong. After graduating from South China University of Technology in his early years, he entered the leading home design software company-Yuanfang Software. Since then, he has forged an indissoluble bond with the home furnishing industry.

Later, Cai Zhisen joined Shangpin Home Delivery, a leading domestic custom home furnishing company, and served as the company’s vice president. During the period, Cai Zhisen saw the most real side of China’s home furnishing industry: difficult to improve consumer experience, low factory efficiency, serious material loss, and so on. These are “pain points” that need to be resolved urgently.

“In order to get rid of the disadvantages of the home improvement industry, industrial software is the dominant force.” Cai Zhisen recalled that at the time, he didn’t plan so meticulously, but only knew to make software. Subsequently, the 35-year-old Cai Zhisen took his former colleagues Xu Minghua, Xiao Yongchuang, and Li Baosheng to leave the company to start a business. In January 2013, they started their entrepreneurial career in a commercial and residential office in Guangzhou.

At that time, each node in the home furnishing industry “worked independently”, and how to get through the software from design to production was the most urgent need of the home furnishing industry. Cai Zhisen and his team combined their years of experience in developing design software and decided to start with a designer and develop a design software first. In 2014, Sunway Home launched the 3D home cloud design system. There is no need to install the client like AutoCAD and 3dMAX. The operation is simple and the rendering can be produced in ten minutes.

They voted for this man of science: a little-known track is on fire

But the problem soon appeared. At that time, the domestic industry is still very traditional, we have no contact with cloud software concept pieces. Therefore, when this unique product first entered the market, it did not cause a lot of splashes. For this reason, Cai Zhisen had to become a salesperson and took the trouble to explain every detail of cloud software to each customer.

This kind of days lasted for nearly half a year, until the product value of Sanweijia appeared-some home improvement companies generated specific decoration plans through 3D graphic design software for store marketing transformation, and the effect was immediate. That year, Sunway Home’s turnover reached 20 million yuan, and even many non-home furnishing industry customers also came here.

But the time to test the judgment of startups has come. Different customers represent different tracks, how should Sanweijia choose? In order to find answers, Cai Zhisen and the founding team analyzed, discussed, and even quarreled, brainstorming round after round. Cai Zhisen always firmly believes that there must be a lot to do in custom home furnishing. Determined, Cai Zhisen reluctantly cut down other areas of business.

As Cai Zhisen expected, the demand for customized home furnishings began to explode in 2016. Relying on the previous technical layout, Sunway Home has begun to emerge suddenly-taking the lead in launching a 3D cloud manufacturing system in the industry, becoming the industry’s first IT service provider to open up the production and sales of custom home furnishing enterprises. Since then, Weiweijia has won two heavy customers in succession-Qumei and Oupai . Relying on the reputation of the industry , Sunway’s reputation spread far, its cloud design and cloud manufacturing systems quickly spread across the country, and the company’s performance developed rapidly.

In 2019, Cai Zhisen began to develop customization for the whole house. At this time, Sunway Home has formed a SaaS tool matrix system including 3D home cloud design system, 3D home cloud manufacturing system, and numerical control system. It is worth mentioning that although domestic high-end industrial software still relied on imports at the time, in the field of custom home furnishing, Sunway created a precedent: from front-end renderings design, to factory dismantling, to CNC machine tools, domestic industrial software can be realized. Substitute.

Today, Sunway Home has accumulated a number of benchmark customers , in addition to the home furnishing industry leaders such as Oupai Home Furnishing , Zhibang Home Furnishing , Dongpeng Ceramics, etc., there are also well-known Japanese home improvement companies Matsushita Living Space, and the internationally renowned bathroom cabinet brand Kohler , The world’s leading machine and equipment manufacturer Halma Group and other internationally well-known home furnishing brands. Having personally experienced the reckless period of China’s home furnishing industry software, Sunway Home now ranks among the first phalanx in China’s home furnishing industry software field and has become the leading startup company on this track.

A drawing to prop up this business

On this battlefield, why did the Sanwei Family break out?

How did Sanweijia change the Chinese home furnishing industry? This starts with a small decoration renderings.

As everyone knows, behind a decoration rendering is a huge business. As far as the decoration style of the room, the placement of the cabinets and wardrobes, the layout of the entrance, the socket and the style of the tiles, the confirmation of these details can not be separated from the decoration renderings. For consumers, an effect picture is the starting point for a better life; for enterprises, this picture is the beginning of a single business.

In the past home furnishing industry, the renderings were drawn three times from design to production, and at least three software from different overseas manufacturers were used, which was time-consuming and labor-intensive. Nowadays, the 3D design software of Sanweijia produces “drawings”, which can quickly generate construction drawings, color flat drawings, quotations, production data reports, etc., directly go to the factory for production, and integrate the marketing, ordering, manufacturing, etc. of the home furnishing industry. The node gets through. In this way, efficiency is improved, and labor and material costs are greatly reduced.

“At present, the digital transformation of Chinese home furnishing enterprises has made great progress, but it is far from deep enough.” Cai Zhisen said frankly that industrial software needs continuous iteration, and we can also interact more closely with the industry. For example, for solid wood door panels, if the marketing, design, and manufacturing links can be coordinated, the efficiency of the entire link will increase even more.

Of course, these innovations are inseparable from strong R&D capabilities. Cai Zhisen admits that there is a certain gap between the current technology of Sunway and AutoDesk and other overseas companies, but the company does not hesitate to invest in technology research and development. It is reported that Sanweijia invests more than 100 million yuan in research and development funds each year . At present, it has built a technical team of hundreds of people in Guangzhou, established a graphics research and development center in Shanghai, and built an Avatar laboratory by itself to develop graphics engines and improve Real-time dynamic rendering capability. In the future, efforts will be made to recruit AI and big data talents.

In addition, at the end of 2020, Sunway Home and the School of Mathematical Sciences of the University of Science and Technology of China established the “Advanced Manufacturing Joint Laboratory”. The laboratory has been approved as a provincial research platform and has top Chinese applied mathematicians such as Liu Ligang and Yang Zhouwang. To overcome the problems of home design modeling and algorithm.

Cai Zhisen has always had a wish in his heart, “I hope that when the company is founded 10 years ago, the company’s technology will have a major breakthrough. At that time, it is best for our products to show their value without the introduction of sales personnel.” After more than ten years of fighting, this entrepreneurial veteran has a deeper enthusiasm for the industry.

Another “stuck neck” track

Here, China can give birth to 2-3 100 billion companies

The industrial software industry behind Sanweijia is a “stuck neck” track that is ignored by most people.

If every electronic product is inseparable from the chip, then behind every industrial product and every piece of equipment, industrial software is also indispensable. my country’s industrial software industry started late, with poor copyright awareness, insufficient investment, and heavy reliance on imports. Especially in the industrial software segments such as CAD and CAE, more than 90% of China’s market is monopolized by foreign-funded enterprises .

“Domestic industrial software is either imported overseas, or secondary development based on other people’s software. Once overseas companies set obstacles, it is difficult for us to read the format.” A practitioner in a manufacturing industry in Shenzhen is heartbroken.

Cai Zhisen expressed his intuitive feeling: The gap between Chinese industrial software and foreign counterparts is like “little grass” and “big tree”. Even in the absence of overseas development, the gap between domestic and foreign countries will take 30-50 years to bridge. “What’s more, they are still investing in technology, so the gap between China and foreign countries can only be greater.”

More and more people are beginning to realize the importance of industrial software. On July 2, the Ministry of Industry and Information Technology and other six departments jointly issued the “Guiding Opinions on Accelerating the Cultivation and Development of High-Quality Manufacturing Enterprises”, proposing to improve the independent innovation capabilities of high-quality enterprises, promote the digital development of the industry, and vigorously promote the promotion and application of independent controllable industrial software.

VC/PE also began to make a big splash. According to incomplete statistics, from January 2021 alone, nearly 10 industrial software companies have already obtained financing. A local VC in Beijing analyzed: “From the perspective of industry segments, there is a large gap between R&D and design industrial software and foreign countries, and there is market space for domestic substitution; the market penetration rate of production control industrial software is low, and such products require Cooperating with the industry side, local manufacturers also have a strong competitive advantage.”

Especially as the home of such traditional manufacturing, but also in the “knife slash and burn kind of” stage – the extent of the digital home industry in manufacturing and marketing end of the very low end, lack of enabling industrial strength software. More traditional software companies are still following the old ways of foreign companies, so it is difficult to catch up with others. Therefore, Cai Zhisen believes: “We should no longer climb up the’ladder’ they gave. If we jump out of the rules of the game they set, we can build a ladder to overtake a corner.”

This is exactly what domestic startups such as Sunway Home are doing. They used their own cases to prove a possibility: Based on the rich industrial chain and ecology of China’s manufacturing industry, China’s industrial software has emerged from sub-industries such as home manufacturing, and is expected to achieve corner overtaking.

“With the rise of technologies such as AI, big data, and cloud computing, domestic industrial software companies develop products based on this, and they stand on the same starting line as their counterparts all over the world.” Cai Zhisen is very confident, even if Siemens, AutoDesk, and Dassault enter China’s industrial software companies also have the strength to deal with the vertical segmentation of the home furnishings. Because Chinese companies are willing to subdivide the bottom users of the industry and understand the real customer needs, such overseas giants may not be willing to spend time to deeply serve vertical industry customers.

Another 100 billion market is on the eve of its outbreak. The Ministry of Industry and Information Technology has a set of data: my country’s industrial software product business revenue in 2020 will reach 197.4 billion yuan, and it is expected to exceed 400 billion yuan in 2025. Ride in this one on the track, Choi Chi-sum convinced that “China can give birth to 2-3 100 billion market value of the company.”

Posted by:CoinYuppie,Reprinted with attribution to:
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