Zhitongcaijing：“Vanguard Trailer Rental” Completes Series A-round Financing of Over RMB 100 Million, CIMC Vehicles (301039.SZ/01839.HK) Further Carries Out Strategic Arrangements
Recently, China Jiangsu Vanguard Trailer Rental Co., Ltd. ("Vanguard Trailer Rental"), a subsidiary of CIMC Vehicles and a semi-trailer time-sharing rental and life cycle management service platform, has announced that it completed its Series A-round financing, attracting over RMB 100 million. This round of financing will be utilized to finance the development of Vanguard Trailer Rental's existing businesses, replenish working capital, and expedite the promotion of its business model.
Found in 2017, Vanguard Trailer Rental primarily engages in trailer rental, tire rental, asset management, and intelligent equipment etc. Since its inception, Vanguard Trailer Rental has been committed to creating a standardized, intelligent, cross-industry and interconnected trailer pool for sharing of drop and pull transportation and logistics equipment and providing logistics customers with time-sharing rental of semi-trailers and life cycle management services.
Recognized by Many Powerful Institutions, Vanguard Trailer Rental Cooperated with Central SOEs Industry Investment Fund for Rural Area to Assist Rural Revitalization
The strategic investors introduced in the Series Around financing include Central Enterprise Rural Industry Investment Fund Co., Ltd. (“Central SOEs Industry Investment Fund for Rural Area”), Shenzhen Investment Holding Donghai Small, Medium and Micro Venture Capital Enterprise, Jiahui Chuangde and Jiahui Chuangyue. All of them are heavyweight and powerful institutions.
The strategic investment of Central SOEs Industry Investment Fund for Rural Area in Vanguard Trailer Rental reflected its long-term optimism about the high growth of the Company and its contribution to China’s rural revitalization. Since its inception, Vanguard Trailer Rental has been targeting the vast semi-trailer rental market in China. It brings a new co-use concept of freight equipment by providing standardized transport equipment for logistics enterprises so that they can choose to rent rather than purchase the equipment. It can be said that Vanguard Trailer Rental is an equivalent of “China Auto Renting Inc.” in the specialty vehicle industry.
In addition to the rapid development that benefited from the industry boom, Vanguard Trailer Rental continued to participate in and regulate the development of China's logistics industry with its own strength, and actively undertook social responsibilities. From the environmental perspective, Vanguard Trailer Rental promotes the sharing economy with its own development and establishes a standardized and specialized semitrailer equipment pool and the application of drop and pull transportation in logistics scenarios. From a social perspective, the clients of semi-trailer served by Vanguard Trailer Rental have already covered 20 enterprises in the regions and underprivileged counties. In this sense, Vanguard Trailer Rental plays a significant role in resolving the three rural issues.
Vanguard Trailer Rental's mobile combination cold chain business primarily engages in the cold chain logistics layout starting from the "first mile" of origin to the "last mile" of cities, construction of cold chain equipment for logistics service, exploration of the sharing and co-use mechanism of refrigerated trucks and mobile refrigerated equipment products. In this way, Vanguard Trailer Rental helps the development of agricultural products in line with rural revitalization and generates remarkable social benefits.
With Verified Business Model, Vanguard Trailer Rental Achieved Rapid Growth of Revenue
After five years of prudent exploration, Vanguard Trailer Rental has successfully verified the implementation capacity and profit potential of its business model. Its revenue has increased steadily, laying the foundation for further development. According to the annual report 2021 of CIMC Vehicles, the revenue of Vanguard Trailer Rental in 2021 achieved a significant YoY increase of 66.6%.
It is noteworthy that the residual value income is a highlight of Vanguard Trailer Rental’s business model. The state-licensed operating life of semitrailers is 15 to 20 years, while the semi-trailers of Vanguard Trailer Rental are depreciated in 5 years, so the residual value of the trailers is higher.
Up to now, as Vanguard Trailer Rental has been operating for five years, its business territory and the number of cooperative clients continue to increase. The number of clients has exceeded 500, the number of operating vehicles has exceeded 5,000, and the number of mobile cold chain equipment has exceeded 2,000. At present, Vanguard Trailer Rental has reached in-depth cooperation with well-known enterprises such as SF Express, ZTO Express, Best Express etc. Moreover, it successfully cooperated with JD Logistics, CHN Energy, Meituan Select, IKEA, etc.
The Highly Anticipated Logistics Transportation Industry is Becoming the Apple of Investors’ Eye in the Capital Market
Against the backdrop of the promising development of the industry, that Vanguard Trailer Rental attracted over RMB 100 million in the Series Around financing will provide sufficient capital guarantee for its own development. At the same time, the strong shareholders lay a solid foundation for the subsequent financing of Vanguard Trailer Rental.
Looking ahead, with the "flexible, convenient and efficient" business model, Vanguard Trailer Rental is expected to create a differentiated one-stop product life cycle solution of "high-end manufacturing + value-added services + financial management", build a new trailer leasing ecological service system of "enjoy trailers without ownership" to secure a broader room for development, and build a higher brand moat for realization of high value.