The D round financing of Science and Engineering Data Transmission was completed, led by China Zhongji Investment.

Recently, China Zhongji Investment completed a D-round lead investment in Wuhan University of Technology Digital Communication Engineering Co., Ltd. (hereinafter referred to as “WUT Digital Communication”)

Founded in 2014, WUT Digital Communication is an internet technology company focusing on big data services for the publishing industry. The company is committed to innovating the digital products and service formats in the publishing field, creating a profit model of “value-added services for paper books” with content providers as the main commercial value, and leading the technological upgrading and industrial development direction of digital dissemination publishing in China.

WUT Digital Communication, with its deep understanding of the publishing industry and innovative spirit, has independently developed the RAYS media integration system, which covers the management, production, processing, publishing and operation of all media resources, and can directly help publishers and editors create content services that break through paper books, thereby deeply meeting the reading needs of readers.

WUT Digital Communication establishes a reader entry point on paper books and provides various scenario-based and diversified digital resources and services for paper books, including teaching guidance and interactive video live broadcasts. Recently, WUT Digital Communication has successively launched cooperation with platforms such as Himalaya, Wang Houxiong Education, Lazy Reading, and VIPKID, continuously expanding the scope of content services, and creating a “modern paper book” with multiple interactive contents.

Currently, WUT Digital Communication has reached exclusive cooperation with 237+ publishers and 34,000+ editors in China, creating an additional profit of 500 million yuan for the publishing industry and having a huge and positive impact on industry development.

When talking about the reasons for investing in WUT Digital Communication, Wu Fushun, partner and managing director of China Zhongji Investment, stated the following points:

1. The business model is unique

The integrated development of publishing is a key direction for the upgrading and transformation of traditional publishing that is strongly promoted by the State Administration of Press and Publication, but it has been in the exploration stage for a long time. WUT Digital Communication is one of the first batch of enterprises to obtain the qualification of the “National Publishing Integration Development Laboratory” and is the earliest operator to propose the cooperation with publishers on value-added content services for paper books. At that time, the entire industry was in its infancy in the value-added service sector, lacking ideas and motivation. The emergence of WUT Digital Communication provided publishers with detailed implementation plans, enabling value-added services for paper books to quickly rise in the industry, gradually establishing the role of industry benchmark, and possessing strong industry influence.

2. High-threshold industry, exclusive position

There are 585 publishing houses in China, all of which are state-owned enterprises, and the industry has a high threshold for entry. WUT Digital Communication has signed exclusive contracts with more than 237 publishing houses. The binding of publisher resources is the core barrier of the company. In addition, through the exclusive binding of editors and authors, it has obtained a market exclusive position in multiple dimensions.

3. Zero customer acquisition cost, zero production cost

WUT Digital Communication has locked in the source of content production—editors. It obtains customers at zero cost through readers scanning codes, does not need to produce products itself, and directly uses the content resources and distribution channels of publishers to provide value-added content services to readers across the country.

Wu Fushun also mentioned that the integration of the internet and the publishing and media industry has great space for cooperation and synergy, and is currently an underdeveloped area that has not yet been empowered by the internet. The management team of WUT Digital Communication consists of senior experts in the publishing industry, senior editors, and senior internet developers and operators, possessing very rich industry resources from publishers and the internet. The future business development of the company has great imagination space.

Wen Yuanhua, president and partner of China Zhongji Investment, said that the Chinese publishing industry is in a period of profound change and a key period of industrial transformation and upgrading. China Zhongji Investment hopes to promote the in-depth development of publishing integration and help readers achieve comprehensive, accurate, convenient, and in-depth acquisition of knowledge and information through its own investment.