Gongpinyihao (工品一号) announced a CNY 100 million series B round of financing on August 27, led by Zhenghan Capital. The investment will be used to develop the regional fast manufacturing centers, warehousing and logistics systems.
"We made this investment based on the optimistic expectations regarding both fastener and the auxiliary businesses, GongPinYiHao's reputation and corporate management ability,"said Yao Zhengye, partner of ZhengHan Capital.
Founded in January 2015, GongPinYiHao positions itself as an online platform focusing on standardized industrial components trading. The company targets at building a controllable and efficient supply chain. The founder Chen Huagen has more than 20 years of experience, possessing industry resources and insights in the fields of manufacturing distribution. The firm's target customers are mainly small and medium-sized Chinese businesses. It has recently disclosed that their sales have been growing at a CAGR of over 100% since the company wad funded. The average customer monthly repurchase rate is about 85%.
The core products displayed on Gongpinyihao's website are self-tapping and drill-tail screws as well as hexagon bolts. To achieve quick prototyping and flexible production for special orders, at present, Gongpinyihao has opened five regional centers in the key fastener trading regions: Yangtze river delta and Pearl river delta.
Being used across a handful of industry verticals, fastener is the most basic type of industrial components. The upstream and downstream companies in the industry are scattered by nature, as there are millions of SKUs existing; in the meantime, the product categories have strict local and international standards.
The demand for smart manufacturing in fastener industry is becoming more urgent, one reason is that the spacious room for advanced technology applications exists in the sector.