Zhitong Financial APP learned that as a key enterprise introduced by the government of Jing'an District in Shanghai, Lingxiong Technology (02436), the first stock in China's DaaS industry, has taken substantial steps to strengthen the market layout in East China. A few days ago, Lingxiong Technology, a wholly owned subsidiary of Lingxiong Technology,(Shenzhen)limited company(Abbreviated as "Lingxiong Technology")Set up Lingxiong Meibang Technology in Shanghai(Shanghai)limited company(Abbreviated as "Lingxiong Meibang")And officially put into operation.

It is reported that through the company, Lingxiong Technology aims to integrate high-quality resources in the industry, expand the market share of national printing equipment solutions, further consolidate and enhance the national service capacity and key regional market penetration of its DaaS services, and contribute positive forces to building high-level industrial clusters in Jing'an District of Shanghai.

The "chain main effect" of the industry leader has been significantly introduced and supported by the government.

Since the beginning of this year, Jing'an District of Shanghai has repeatedly thrown an "olive branch" to Lingxiong Technology. On August 31, 2023, Lingxiong Technology was invited to attend the Jing'an District Chief Symposium. On the same day, at the signing ceremony of the Shenzhen special promotion meeting for the key carrier "monthly push" activity in Jing'an District, eight leading enterprises in various fields, including Lingxiong Technology, signed strategic cooperation agreements with the Shanghai Jing'an District Government.

It is understood that the series of activities of "monthly push", the key carrier of Jing'an District, is an important part of the investment promotion work of Jing'an District in 2023, which aims to enhance the comprehensive strength of regional investment attraction, and the key objects of investment attraction are the leading enterprises in strategic emerging industries such as new track, data intelligence, biotechnology and so on. In order to provide a good business environment for key imported enterprises, since March 2023, Jing'an District Government has issued several policies of Jing'an District to speed up attracting and cultivating innovative leading enterprises to build high-level industrial clusters, Jing'an District on speeding up the construction of "Shanghai North High-tech Private Enterprise headquarters gathering area" and other important policies, vigorously support the high-quality development of key imported enterprises.

Why did Lingxiong Technology be introduced and supported by Jing'an District Government? The root cause lies in that Lingxiong Technology is the leading enterprise and the first listed company in the new track of hundreds of billions of DaaS industry, and has a strong "chain main effect".

It is reported that Lingxiong Technology is the largest enterprise-level DaaS supplier in China, providing enterprises with full-stack services, including IT equipment subscription, IT technology subscription services, asset management SaaS and IT equipment recovery, to comprehensively solve the equipment lifecycle management problems faced by Chinese enterprises, and help enterprises achieve cost reduction, efficiency and high-quality development. It is worth mentioning that Lingxiong Technology has been recognized by the Ministry of Industry and Information Technology as a national demonstration platform for public service for small and medium-sized enterprises, a national specialized and special new "Little Giant" enterprise, and is the only enterprise in the DaaS industry that has obtained this "double certification". In addition, Lingxiong Technology is also a national high-tech enterprise. Data show that the revenue of Lingxiong Technology rose sharply to 1.664 billion yuan in 2022, continuing to be number one in the industry.

In terms of giving full play to the role of "chain owner" enterprise master engine, in recent years, while Lingxiong Technology has continuously enriched the connotation and application scenarios of digital closed-loop DaaS services, it has joined more strategic partners to gradually build a huge DaaS ecological service circle, so that full-stack DaaS service solutions can better enable more enterprises to develop with high quality. At the same time, it also continues to promote the formation and wide application of relevant standards and norms in the domestic DaaS industry, for example, as an important drafting unit, it actively participates in the discussion and formulation of standards such as "waste mobile terminal information security management standard", "credit service industry classification and coding standard", "Internet secondhand trading platform construction and management standard" and so on. In March 2023, as the main drafting unit, the national standard "Enterprise Credit Evaluation Index", which participated in the drafting, was officially issued and implemented.

These measures are gradually promoting the standardization and mature development of the whole industry. The size of China's DaaS market has increased from 10.2 billion yuan in 2017 to 34.5 billion yuan in 2021, according to the research report of Zhaoshi Consulting. The size of the entire market is expected to maintain a compound annual growth rate of 32% in the next few years and reach 138.2 billion yuan in 2026.

Some experts pointed out that the strong comprehensive strength of Lingxiong technology and its strong industrial chain drive and agglomeration ability are highly consistent with the development planning of Jing'an District in Shanghai.

It is also reported that according to Lingxiong's technology plan, it will plan to establish a regional headquarters in East China in Shanghai, which will integrate wisdom conservation, green sharing, and functional improvement as a whole, and strive to build an advanced multi-functional platform covering technology research and development, talent exchange and intelligence introduction, regional business coordination, and corporate image display. East China Regional headquarters aims to make use of Shanghai's regional advantages, industrial advantages and talent advantages to radiate the entire Yangtze River Delta region, promote the convenient sharing of digital DaaS services, and enhance the long-term sustainable growth of Lingxiong's overall business.

Strategic shareholders strongly support "Shanghai" and firmly value the future development in the long run.

In particular, it is worth mentioning that Lingxiong Technology was introduced by Jing'an District Government and quickly brought Lingxiong to "Shanghai", which is closely related to the strong support of strategic shareholder Shenzhen Dachen Caizhi Venture Capital Management Co., Ltd. (referred to as "Dachen Caizhi").

It is reported that in March this year, the Jing'an District Government issued a number of policies for Jing'an District to speed up the attraction and cultivation of innovative leading enterprises to build high-level industrial clusters, focusing on the construction of opening and innovation accelerators for large enterprises. The East China regional headquarters established by Lingxiong Technology Planning is the "Jing'an District large Enterprise Innovation and opening Accelerator" project in cooperation with Dachen Caizhi, and Lingxiong Meibang's "Shanghai" operation is an important step in the landing of the project.

As a well-known investment institution, Dachen Caizhi has accompanied Lingxiong Technology for six years as a strategic shareholder, and has been strongly supporting and firmly optimistic about the development of Lingxiong Technology for a long time. "from years of observation, Lingxiong Technology is very good in terms of operation ability, management ability, and profit growth. Each stage is fully in line with our investment expectations. This is also the main reason why Dachen Caizhi has increased its investment for four consecutive rounds. " Huang Yuewei, general manager of Dachen Caizhi Shanghai Branch, said.

Lingxiong Technology as the leading enterprise in the DaaS industry, its core barriers are difficult to be surpassed, and its market share will become higher and higher in the future. As a result, the future revenue volume and profit level of Lingxiong Technology has great room for imagination. Therefore, its overall market capitalization performance will be very good in the future. " Huang Yuewei added that this is the typical characteristic of value stocks.

Also as strategic shareholders, Dongfang Fuhai and Shenzhen High-tech Investment Group (referred to as "Shenzhen High-tech Investment") also highly agree with this. Dongfang Fuhai partner Chen Liwei is highly optimistic about Lingxiong's business model, strong growth ability and digital construction ability. "its future value space is huge." Tang Mengyuan, general manager of Shenzhen High-tech Investment Zhengxuan Equity Investment Fund Management Co., Ltd., which is owned by Shenzhen High-tech Investment Co., Ltd., said that Lingxiong Technology, which has become one of the leading enterprises in the industry, has prominent service value, stable profit model and obvious scale effect. It will achieve more considerable development in the future. "long-term firm optimistic about the future development and value of Lingxiong Technology."

The new company has broad prospects under the support of policies and core resources.

In fact, Lingxiong technology planning to establish East China regional headquarters in Shanghai, as an important part of its future strategic planning, has long been traced. After Lingxiong Technology's parent company Lingxiong Technology was successfully listed on the Hong Kong Stock Exchange in November 2022, an important strategic plan is to continue to enrich product categories and enhance service capabilities, and to deepen cooperation with strategic shareholders and business partners. further expand the penetration of core cities and expand the market share of the target market.

Some senior observers pointed out that the establishment and operation of Lingxiong Meibang is actually to lay a good foundation for Lingxiong Technology to build its regional headquarters in East China. The observer further analyzed that Lingxiong Technology has set up molecular companies in nine core first-and second-tier cities, including Beijing, Shanghai, Guangzhou and Shenzhen, and its business scope has fully covered China's economically developed regions such as Beijing, Tianjin, Hebei, Yangtze River Delta, Yangtze River Economic Belt, and Pearl River Delta. These regional markets have relatively high awareness of DaaS services, but there is still huge room for expansion in the penetration of the DaaS market. Lingxiong Technology has a market share of about 4% in the national DaaS market. Although it has always been number one in the industry, there is still huge room for development. If you want to further increase the market share, the most effective way is to join forces and ask for 'output' from the core first-and second-tier cities. "

It is reported that Chen Dongsheng joined Lingxiong Technology and served as the general manager of Lingxiong Meibang. Chen Dongsheng, a senior practitioner in the DaaS industry, has more than 20 years of management experience in providing overall printing equipment rental solutions for customers in various fields, and has a profound influence in the Yangtze River Delta printing rental service market with Shanghai as the core. The joining of Chen Dongsheng will undoubtedly play an important role in Lingxiong Technology to achieve its strategic goal in East China.

"in terms of the matching degree of strategic cooperation, Chen Dongsheng is a very good partner of Lingxiong Technology. The two sides can give full play to their core advantages and jointly provide enterprise users with services covering full-stack printing equipment solutions and IT equipment subscriptions, so as to better help enterprises reduce costs and increase efficiency. Through Lingxiong Meibang, Lingxiong technology can not only further enhance its penetration in the Yangtze River Delta DaaS market, strengthen and enhance national service capacity, more importantly, it can speed up the strategic layout of print business in the national market. " The analyst added.

Haitong International Research News believes that the industry core barriers constructed by Lingxiong Technology include: first, closed-loop DaaS ecology can produce strong synergy, IT equipment utilization is significantly improved, cross-selling consolidates its synergy and high customer stickiness; second, a sound and strong recycling and renovation industry chain has a strong support and synergy for equipment subscription services. Third, the intelligent risk control system is very important to the development of DaaS business, the company maintains a very low bad debt rate all the year round; fourth, the strong support of strategic shareholders.

The relevant person in charge of Lingxiong Research Institute said that Lingxiong Meibang bears the important strategic mission of Lingxiong Technology, and will naturally get the core resources of Lingxiong Technology to protect the new company from opening up the situation quickly. Specifically, while Lingxiong Meibang operates on the basis of Lingxiong's mature business model, it further shares the rich resources of Lingxiong's strategic shareholders Tencent, JD.com, Lenovo, and so on. For example, JD.com 's 10 million-level enterprises have access to traffic, as well as convenience in warehousing management, logistics and distribution services, and Tencent's mass enterprise customer resources in mass creation space. "it can be said that Ling Xiong Meibang's starting point is very high."

In recent years, as major enterprises attach great importance to reducing costs and increasing efficiency, and attach great importance to cash flow, DaaS service is becoming a rigid demand for the operation of major enterprises, and showing a trend of vigorous development. In this context, Ling Xiong Meibang, which integrates many core resources, and has the strong policy support of Shanghai Jing'an District Government, the development prospect is worth looking forward to. " The person in charge of Lingxiong Technology said.