In July 2020, Fujian Zongteng Network Co., Ltd (hereinafter referred to as Zongteng Group) declared the accomplishment of Series C funding for 0.5 billion RMB. Led by Taikang Life Insurance, Xiamen C&D Co., Ltd, Zheshang Innovation Capital, Fuzhou Financial Holding Group and Ancheng Capital followed the investment for this funding. China Renaissance was exclusive financial consultant of this funding.
In the past year, Zongteng Group has finished two rounds of funding and accumulative funding amount was more than 1 billion RMB. As one of the largest single financing in the field of China’s cross-border logistics in recent years, this round of financing represented that various investment institutions highly recognized growth potential and development space of Zongteng Group. At the same time, Zongteng Group launched strategic cooperation with China Renaissance – leading financial institution serving new economy in China, which realized complementary advantages of strategic resources and accelerated win-win layout of cross-border logistics ecosystem.
As one of the largest integrated service provider of cross-border logistics in China, its main business focuses on international direct line, overseas warehousing & distribution, distribution service of e-commerce supply chain and related value-added services. Through development for about 12 years, especially since two rounds of funding, the group has made considerable progress. “G2G” core strategy and three strategic deployments released in 2019 have achieved initial success, and integrated service network of cross-border logistics has been built, covering different countries and regions such as US, Europe, Japan and Australia, etc. With 26 overseas warehouses or transfer hubs, total area exceeds 500,000 square meters and 47 direct lines covers 33 countries in six continents. It has more than 1,000 staff abroad and average daily order processing volume exceeds 1 million. The clients include top-ranking cross-border e-commerce sellers, brand owners and export factories.
Strengthen new infrastructure construction, respond to new development opportunities
The epidemic swept across the globe and it caused large impact on cross-border e-commerce industry. The management advantages accumulated by Zongteng Group over the years have been fully reflected during this anti-epidemic action. Through various measures such as launching chartered airplanes, stabilizing operation of overseas warehouses and reinforcing product distribution, it builds a powerful service channel for sellers and greatly promotes own status in industry, which becomes a beautiful landscape in cross-border e-commerce industry.
The epidemic has brought new opportunities for the development of cross-border e-commerce industry. Cross-border logistics industry accelerates upgrading pace and gradually transforms from “perfect competition” to “leading competition”. With new opportunities, cross-border logistics industry shall pay close attention to industry changes, increase capital investment, improve service capability, lay out future-oriented service network and value chain, reinforce “infrastructure service” of cross-border e-commerce, and build higher capital barriers. Therefore, this round of funding is at the right time and it will help Zongteng to achieve larger great-leap-forward development in the next two years. The value created will be deposited on service system and service reputation, thus finally creating powerful service brand and accumulating new advantages for next-stage development.
After this funding, Zongteng Group will still adhere to the enterprise positioning of “global cross-border e-commerce infrastructure service provider”, research new problems, new pattern and new trend of industry development, timely adjust and implement three strategic deployment of “upgrading, opening and spanning”. To be specific, accelerate expansion of customer market in non-Chinese originating countries, intensity trunk line transportation capability, develop branch line transportation network, speed up construction of overseas logistics hubs and warehousing, strengthen last-mile delivery ability, and provide better international e-commerce logistics solution, thus making Zongteng Group become world-leading cross-border logistics service provider and realizing full coverage of Global To Global (G2G).
According to WANG Zuan – CEO of Zongteng Group, under the support of investors and clients as well as common efforts of all members, service brand matrix of group has begun to take shape, direct line and overseas warehousing business have reached a new stage and kept leading position within industry, and value-added business has started well. We will firmly seize new opportunities in the industry, lead business layout with forward-looking vision, exploit service scope, consolidate operation chain, innovate operation middle-ground, expand competitive advantages and reserve future competitive capital. In the next two years, we will strive to deliver a satisfactory answer of ‘G2G’ business to the industry.
WEI Wei, investment director of Taikang Asset, says that rapid development of cross-border export e-commerce manifests the advantages of manufacturing industry chain in China. With this advantage, it’s destined that cross-border export e-commerce will remain rapid growth for a long time in future. Zongteng team owns many years of experience in the cross-border e-commerce industry, knows well about industry pain points and solutions. Through unremitting efforts in cross-border logistics field for nearly 6 years, now Zongteng Group has built cross-border logistics service network that adapts to emerging e-commerce system, and accumulated numerous excellent clients. Continuously increasing daily order scale further promotes service efficiency and reduces average logistics costs, which makes Zongteng become more competitive in industry and obtain more orders. With positive cycle of high barriers to competition, now Zongteng is one of the most competitive enterprises in cross-border e-commerce logistics field in China. Taikang is optimistic about the prospect of cross-border e-commerce market and professional ability of Zongteng. We firmly believe that Zongteng has great potential to stand out and become one of the best logistics enterprises in the world.
As per WANG Yuliang – deputy general manager of C&D Emerging Company, the advantages of China’s manufacturing industry are obvious, e-commerce maturity is world-leading and the trend of trade fragmentation accelerates rapid development of cross-border export e-commerce in China. Founding team of Zongteng is one of the first batches of cross-border e-commerce practitioners in China and they always focus on the construction of cross-border e-commerce export logistics infrastructure. Through more than ten years of efforts, global cross-border logistics direct line and warehousing & distribution service network have been built. With constantly increasing penetration rate of global e-commerce, global e-commerce B2C network will inevitably emerge in future, which means that it will certainly require the support of cross-border e-commerce logistics network that serves the world. By relying on leading advantages, powerful overseas network resources and operation capability, Zongteng shows the best chance to become one of the global cross-border e-commerce logistics infrastructure providers. With global supply chain business, C&D Group will also actively promote the cooperation with Zongteng to achieve win-win development.
WU Jianqing, vice president of investment in Zheshang Innovation Capital, says that Zheshang has been always concerned about investment opportunities in different fields such as new economy and new technology, and is optimistic about long-term development opportunities of cross-border e-commerce industry. As cross-border e-commerce infrastructure service provider, Zongteng Group is leading enterprise in cross-border export B2C logistics industry. In the past six months, being faced with unexpected novel coronavirus and fluctuation of international trade environment, we have witnessed outstanding commercial strain capacity of partners and concerted efforts of team. We firmly believe that with the efforts of president WANG and management team, Zongteng Group will develop better and finally realize Global 2 Global (G2G) cross-border layout.
According to HAN Zhiling – chairman of Fuzhou Financial Holding Group, as one of the demonstration enterprises of digital economy in Fuzhou, Zongteng Group is new engine and new energy to facilitate the construction of “Digital Fuzhou” and “Platform Fuzhou”. Since its establishment, Zongteng Group has kept up with development pace of the era of digital economy. Through comprehensive utilization of new-generation information technology such as internet, big data and artificial intelligence, it promotes standardization, intelligence, synergy and greenization of cross-border e-commerce logistics industry chain. As municipal-level fiscal and financial platform of investment and financing as well as financial engine to facilitate development of real economy in Fuzhou, Fuzhou Financial Holding will provide comprehensive financial support with multiple platforms such as ‘investment funds, insurance, financing + supply chain finance’ for Zongteng Group, and witness its leaping development to become world-leading cross-border logistics service provider.
LI Suli, investment director of Ancheng Capital, says that with consumer demands being starting point and by focusing on pain points of industry development, Zongteng Group has formed integrated schemes for international direct line and overseas warehousing business, which effectively solve core demands of consumers on logistics timeliness and cost control in cross-border e-commerce field. We believe that this round of funding will further strength scale advantages of Zongteng Group, respond to customer demands better, promote ‘G2G’ business and become world-renowned international logistics group early.
As per ZHANG Hui – director of China Renaissance and principal of industry internet field, market wave of globalization opens new era of cross-border e-commerce and upgrading business flow facilitates the revolution of logistics. With gradually increasing penetration rate of cross-border e-commerce, export logistics industry grows rapidly. At the same time, based on timeliness and price advantages, overseas warehousing and international direct line will predominate in future. As the largest cross-border logistics service provider in China, Zongteng Group has always kept its leading status in industry through three core products, namely overseas warehousing & distribution, international direct line and e-commerce service. We hope that this funding will help Zongteng to further implement three strategies ‘upgrading, opening, spanning’, become world-leading cross-border logistics service provider in the world and finally achieve full coverage of Global 2 Global (G2G).
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