Thursday, 2024 July 18

Chinese tech investors are hungry for emerging consumer brands | China Venture Roundup Volume 49

Find out what moves China tech with us. We round up what you need to know about the local venture scene every Thursday at 8:00 a.m. (GMT +8), covering major investment stories, MNC partnerships, noteworthy startups, industries with the most investments for the week, and more.

Here’s a preview of what you’ll receive in your inbox. Get the full picture by subscribing to China Venture Roundup.

Going Public: IPOs

Li Auto (理想汽车)

On August 12, Chinese vehicle maker Li Auto debuted on the Hong Kong Stock Exchange. According to its prospectus, the funds raised will be used to develop high-voltage full EV technology and full-stack autonomous driving software. Li Auto was listed on NASDAQ in the United States in July 2020.

Li Auto is a pioneer in the commercialization of extended-range electric vehicles in China. Li Auto’s only model, the Li ONE, saw an increase in sales of 251.3% year-on-year from July 2020.

The company plans to launch a luxury extended-range electric SUV in 2022, while it also announced the launch of two other SUV models in 2023. Li Auto also indicated plans to launch at least two high-voltage pure electric vehicles every year from 2023.

Startups on our watchlist

Sermatec Energy (采日能源)

Established in 2017, Sermatec Energy manufactures energy storage products. The firm is also a data service provider for energy storage systems. It offers customized solutions to enterprise clients to ensure the safe and efficient operation of their power systems.

Sermatec Energy’s system has three core energy management technologies. The Battery Management System (BMS) monitors the usage of battery cells through intelligent software, ensuring each cell operates in a balanced state. The Power Conversion System (PCS) controls the charging and discharging of batteries to ensure operational safety. The Energy Management System (EMS) focuses on power generation, power transmission, and overall energy storage systems. Sermatec Energy collects battery data through BMS and transmits control commands to PCS and EMS after analysis, thereby minimizing energy loss.

Currently, the company has carried out projects in more than ten countries and regions around the world, including Germany, Austria, and South Africa.

Sermatec Energy raised over USD 15 million in its Series A led by Sinovation Ventures on August 11. Other investors include two state-owned energy companies, Three Gorges Electric Power, and Shuifa Energy Group.

KrASIA news picks

China’s hungry tech investors line up to back emerging consumer brands

Chinese VCs are increasingly investing in consumer brands that leverage China’s robust existing infrastructure in logistics, e-commerce, and social media to connect with younger consumers. Rising investor attention on these consumer startups is pushing some valuations to nearly ten times their annual earnings. Why? Our editor AJ examines this trend.

China Venture Roundup
China Venture Roundup
China Venture Roundup is a weekly insight newsletter published by 36Kr Global's KrASIA team since 2020, covering top news, market moves and major trends in the Chinese startup and venture investment scene.

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