Yunjie Software

Since its founding in 2012, Yunjie Software has focused on one type of customer: mid-market manufacturers with annual revenue from tens of millions to roughly a billion RMB, typically without a dedicated IT function. Its product spans four modules — production planning, procurement, shop-floor execution and finance — positioned between a traditional ERP and a lightweight tool: closer to the shop floor than general financial software, faster to implement than a large ERP.

Customers cluster in machining, electronics assembly, furniture and building materials, and food processing — segments where most relied on spreadsheets or scattered systems before adopting Yunjie. Sales run through a direct team combined with regional resellers, and implementation typically takes one to three months, well short of a large ERP deployment — one reason the company sustains relatively efficient sign-up rates.

The company sits mid-transition: originally built on one-time license fees plus annual maintenance, it has spent recent years migrating customers toward subscription pricing based on user count and module selection. The shift has pushed back some revenue recognition, but meaningfully lifted willingness to keep paying — renewal rates among subscription customers run notably higher than among legacy license customers.

The initial investment in Yunjie Software was made in 2018 under the technology investments strategy, at an early stage of its license-to-subscription transition. The strategy's emphasis on dedicated study of the business model, rather than a snapshot of financial performance, shaped the question: whether churn during the transition could be kept in check, and whether subscription revenue quality would prove out within two to three years.

Yunjie's depth in manufacturing verticals was viewed as its core advantage over generalist vendors: how well the product reflects a given industry's process determines whether a customer, once on subscription, keeps using and expanding it. The thesis weighs vertical depth against feature breadth, betting on depth converting into durable retention.

A large number of mid-market manufacturers still manage planning and inventory through spreadsheets or fragmented systems, with digitization lagging their operating scale — a gap that widens as labor costs rise. These companies typically lack the budget to absorb a large ERP's cost, sustaining demand for software that deploys quickly and speaks the shop floor's language.

Subscription pricing remains at an early stage of penetration in China's manufacturing software market, and acceptance among small and mid-sized customers is still forming — both a real source of friction and an opening for a company that completes the shift early to build a structural head start.

Havrion Capital holds a minority stake in Yunjie Software and maintains regular board-level dialogue on the pace of the subscription transition — how quickly the existing base is migrating, how renewal rates are trending, and whether sales incentives have been realigned to support subscription rather than the old license model.

On the organizational side, the work has included introducing metrics standard to subscription businesses — net revenue retention and acquisition cost benchmarked against peers — so management can spot deviations earlier. Further capital will go toward product development and finer segmentation of the sales team by industry.