On September 29, barely a month after its previous funding round, warehousing equipment and solutions provider PassionIOT announced the completion of a 1.4 million dollar Pre-A+ round of funding. This round was co-led by Shunrong Capital and AA Investment.

PassionIOT has experienced rapid growth in 2021, securing bulk orders and repeat business from industry leaders such as Foxconn, Pegatron, Gree Electric, GoerTek, China Electronics, OPPO, Loncin Electric, AVIC, CASC, CNNC, and CRRC. By the end of Q3, the company had signed sales contracts worth five times more than the same period last year, with recognized revenue surpassing the total for the previous year. PassionIOT also received multiple honors, including the "2021 China Digital Supply Chain Annual Quality Service Award." The new funds will be used to accelerate product development, expand the sales team, and strengthen organizational capabilities. The company aims to expanding into the semiconductor and aerospace industries.

Following the last round of funding, PassionIOT launched several products that were successfully implemented at customer sites. The company's R&D and commercialization capabilities have exceeded investor expectations. Given this success, AA Investment, alongside new investor Shunrong Capital, decided to proceed with this additional funding round.

Zhang Liang, Partner at Shunrong Capital, stated, "Industrial new infrastructure is a key investment area for Shunrong. During the current phase of smart manufacturing transformation, companies must leverage warehousing robots and software technology as part of this new infrastructure to improve warehousing efficiency, enhance material management accuracy, and reduce line-side inventory and workforce needs. PassionIOT, as a leader in this field, has an outstanding founding team, advanced technology, and rapid growth. We are confident in the company's future."

Wang Haoze, Founding Partner of AA Investment, commented, "The rapid rise in labor costs is an external driver for the growth of companies like PassionIOT. Data from the National Bureau of Statistics shows that manufacturing labor costs increased by 50-60% after 2019. Meanwhile, the working-age population is expected to decrease by about 15% every decade. This makes labor shortages and rising costs a norm. The market for robots replacing human labor is expected to grow rapidly, tripling annually. PassionIOT's warehousing robot system not only saves labor costs but also helps companies collect more accurate, real-time data, enabling AI-driven decision-making and management improvements."