Background information: On July 28, Anjubao held a cloud parking lot press conference in Shanghai. This was Anjubao's third stop of the cloud parking lot press conference after Guangzhou and Beijing - Shanghai Station. Nearly 200 property companies signed cooperation agreements at the press conference. Local property companies participated actively. More than 160 parking lots were signed at the press conference. After the press conference, Anjubao had in-depth exchanges with various investment institutions to discuss the company's current situation and future development plans. Anjubao began to transform the Internet in 2013. When implementing the Internet+ strategy, the company discovered that parking lots are a common problem in many cities, and there are many pain points. According to the company's analysis, there are three major pain points in the current parking lot market: information is asymmetrical and parking spaces are difficult to find; parking spaces are vacant, and efficiency is low; and management is poor. Companies believe that to achieve success in the Internet transformation, they must first seize users from pain points. Smart cloud parking is an important product of Anjubao. A cloud parking lot is a parking lot where car owners can check nearby vacant parking spaces, fees, discounts, etc. in real time through the app/public account, reserve a parking space online, and then pay through mobile payment. The advantages of Anjubao's smart cloud parking lot over traditional parking lots are: simple equipment structure, internet management, automatic license plate recognition, simple payment method (WeChat Pay), and no one on duty. The company's smart cloud parking lot is currently in the expansion stage. Regarding the future revenue generation model, the company has summarized it into three types: the member parking model. By leasing and operating some spare parking spaces in the parking lot and providing information on vacant parking spaces in real time, it is possible to increase the usage rate of parking spaces and achieve a win-win situation. Dynamic preferential parking mode. The parking lot can publish parking information around car owners in real time through the “Pocket Shop” app/WeChat public platform, prepare discount periods at any time, and freely set the number of preferential parking spaces to achieve dynamic management of the parking lot and maximize benefits. By sharing the parking model, owners of monthly parking spaces can share and rent parking spaces during their spare time. In this way, not only can parking spaces be used many times, but they will also benefit themselves, and the value of parking spaces will increase. Research Q&A Q: The company adopted a free strategy in the early stages to seize the market. What are the specific plans for promoting cloud parking? A: The company's annual promotion plan for cloud parking in 2015 is basically divided into two stages: the first stage is July-September, mainly in 12 major cities across the country, and the second stage is to be fully rolled out in 60 major cities across the country in September-December. Since in the early stages, it was mainly about seizing the market and signing up for parking lots, so currently the method of sending free parking equipment to the cloud is used to obtain relevant parking contracts. Currently, the company may cover about 30%-40% of parking lots in Guangzhou in the future, and about 70%-80% of commercial buildings in Pearl River New Town already use cloud parking systems. Since in Guangzhou, the company and WeChat cooperated to carry out one-penny parking (WeChat subsidizes parking fees). After using cloud parking, the number of vehicles entering and leaving at Zhengjia Plaza increased by 50%. The smooth flow of parking spaces led to a large increase in traffic, and the average daily sales volume increased dramatically. The company's cloud parking lot has already formed a good reputation in Guangzhou. Q: How much does it cost for the company to expand the market by giving away cloud parking equipment for free? Does the company have enough capital to stick to this strategy? A: Regarding promotion costs, on average, the cost of successful promotion for a single parking lot is about tens of thousands of yuan, and there are more than 600 parking lots willing to cooperate in Beijing. We will select more than 200 parking lots to give away relevant equipment at a cost of about tens of millions of dollars. Regarding the selection of parking lots, we will first select and expand parking lots in core business districts, prime locations, and densely populated areas. We do not provide full coverage of parking lots in a certain area. In Shanghai, we probably cover about 250 parking lots, and the cost is about tens of millions of dollars. The company now has more than 500 million dollars in cash to support the subsequent promotion of cloud parking. Cloud parking will be the key direction of the company's Internet transformation in the future. Another 2 billion dollars of financing is also aimed at focusing on building a nationwide cloud parking lot. Parking lots added later may no longer be free, and a preferential price sales strategy will be adopted. For cloud parking lots, the priority layout has a first-mover advantage, so the company should seize the current opportunity to gain a head start for future development. Q: In addition to the three revenue generating models mentioned earlier, are there any other ways to profit from cloud parking? A: The cloud parking lot is currently in the promotion stage, but later, data related to the parking lot is transmitted to the cloud. At this time, the company brings in revenue through preferential sales of related supporting equipment. For example, cloud parking lots will also have more advanced vehicle interior guidance systems. Currently, parking lots on the market use sound wave sensors to determine whether a certain parking space is being used. However, Anju Baoyun parking lot uses a specific camera for judgment. Each camera can lock two parking spaces. Compared with sound wave sensing, the camera not only satisfies the most basic parking space idle detection function, but can also monitor the vehicle in real time and record the entire process of the vehicle in the parking lot. Additionally, car owners can search for their car through a mobile phone car search system. The cost of using camera detection is no higher than sound wave sensing. Generally, properties that have accepted Anjubao's free cloud parking equipment will be willing to buy this equipment. In the future, it will be monetized in automotive aftermarket services, e-commerce, and other open cooperation. Furthermore, data sharing will also bring a certain amount of revenue to the company. Currently, more than 70 companies are willing to share data and companies. Q: What is the current promotion progress, and is there any synergy between cloud parking and the company's other businesses? A: The signing speed and market response were strong. More than 600 local companies in Beijing have signed up, and the company will select 200-300 core business districts and free promotions with high commercial value from them. The installation and implementation speed of a single project is about 3-4 days, and there is a time difference with the signed project. Later, the company will adopt teamwork and outsourcing with some construction units to speed up promotion. The number of signings at the Guangzhou, Beijing, and Shanghai press conferences all basically exceeded expectations. The cloud parking lot will have a synergistic effect with the company's other app product, “Surrounding Area Deals”. “Surrounding Discounts” integrates the four functions of shopping, service, sharing, and communication. Relying on the tens of millions of community customers that Anjubao has already cooperated with to introduce consumers and create a new “e-commerce plus store” business model, stores can post relevant discount information on it. Q: Are there any other companies in the market that are currently engaged in related business, and what is the difference between them? A: Currently, among listed companies, there are probably other companies doing it, but there are almost no companies that focus on cloud parking lots like us, let alone companies that promote cloud parking so fast. When measuring the company's cloud parking business, we should look at the business model and promotion speed. Regarding comparable standards, Yuechang Technology's “ETCP Parking” received 50 million US dollars in Series A financing around June this year. Q: What are the company's macro-level goals and vision? A: The company wants to become a “national team” for domestic value-added parking services and change the parking ecology in China.