China PropTech Industry Report 2020

First New Hot Spot of 2020: New Infrastructure

New infrastructure is more emphasizing 5G, IoT (Internet of Things), artificial intelligence, and other information technology and possessing dual attributes of science and technology and infrastructure, which is quite different from traditional infrastructure.

As a big move is mentioned in the construction of Digital China in the government work report, the new infrastructure construction is also the basic support for the digital and intelligent transformation and upgrading of Chinese enterprises. 13 provinces and cities have released the list of investment plans for key projects in 2020, including 10326 projects, with a total investment of about 34 trillion RMB.

“New infrastructure is the best combination of stimulating effective demand in the short term and increasing effective supply in the long term. At the same time, the most beneficial project of new infrastructure is the construction of a smart city (including sustainable infrastructure, data-driven governance, and digital management). This will also be the macro embodiment of asset digitization”, says Ren Zeping, the President of Evergrande Research Institute.

“In 2019, the market scale of China’s smart city will exceed 10 trillion RMB and will maintain a compound annual growth of 33.38% in the next five years. In 2020, China’s smart city-related market spending will exceed 26 billion US dollars, ranking second in the world, and it is second only to the United States”, shown as public data.

The Next Internet Trend: Urban Renewal

When the age of remnant and assets digital integrates, the next Internet tread of trillion level will be opened, that is, urban renewal. “In 2018, the new supply of office buildings in Beijing is at record lows for accounted for only 10% of the city’s total. In the trend of real estate transformation from development to stock, manufacturing industry to the service industry, and offline to online, urban renewal will continue to develop steadily. The market scale will reach trillion RMB, and it will become the next superstar of Internet trend of the real estate market in the next decade”, says CBRE report.

The increase of remnant property promotes the development of the field of urban renewal. At present, the field has included new content, new retail, new residence, new business, new office, and other business forms, which has become a new growth power of urban economic development. 

Development Momentum of urban renewal 

• Land scarcity. The first and second-tier cities are gradually saturated with land, which can only be solved by improving utilization efficiency.
• Industrial upgrading. After years of industrial upgrading, the original buildings have not met the requirements of the times. 
• Features update. The city needs to be upgraded again, and new engines are needed for economic development. 

China PropTech Industry Report 2020: Space Management

Space management is a dimension from the perspective of the asset operator, which mainly acts on the intermediate link. It refers to the use of new technologies to help the operator better manage the space, replace the original rough human and manual management methods, and improve the use efficiency of the space after the initial construction of the space.

From the perspective of use function, the major categories of space management mainly serve the internal dimensions of space operators, and the functional effects are concentrated in the internal operators. For example, in the case of less relationship with other aspects, improve their own operation efficiency, or directly or indirectly change the operation mode of space, so as to reduce costs.

The main line of space management is digital technology. It is the direct application of management technology development in space to reduce human errors in management and leave traces of management.

1. Space management platform:

All kinds of management platforms are the largest project gathering area in space management. We are dazzled by the management platforms with different functions. But generally speaking, the application of the management platform is to improve management efficiency in the future and make the space more intelligent. So we can do more interaction with users in the future.

At present, the representative tracks in this sector include intelligent buildings, equipment management, integrated services, etc. In terms of form, the coverage is wide, and many suppliers cover all aspects of building space services. In terms of classification, it can even span several fields and tracks. But in terms of function, it is still mainly for the management of operators.

The application of a management platform not only saves the cost of human capital but also has many thinking dimensions. In the future, the operation of the space will become more efficient, and the use of various platforms must also get through to all details.

We mainly divide space management platform projects into two categories: integrated management and auxiliary management.

Representative enterprises of space management platform:

• TERMINUS: China’s largest city level intelligent Internet of things platform 
• CHINA INTELLIGENT CLOUD CONTROL: Intelligent real estate Internet of things solution 
• ZCHG: Building asset operation and maintenance of full-cycle cloud service solution
• GEEQEE: Intelligent wireless office comprehensive solution
• ZHONGZHENG INFORMATION: intelligent building ecological platform 
• WUKONG BOX: integrated software and hardware solution for data operation and management of shared space KUBAN: all round asset management and intelligent office system 
• CLOUDSPLUS: the whole intelligent application of building scene
• ZUOLIN: urban space intelligent operation platform
• KITEDGE: intelligent building management solutions
• ESEN: comprehensive digital architecture twin
• XINGKE SOFT: software platform to manage the whole life cycle of building 
• EBUILD: leading brand of smart building solutions
• DYNAMAX: Internet of things intelligent real estate platform
• EFOS: EFOS Internet of things system

Representative enterprises of Space assisted management:

• ASTRA: commercial property informatization and standardized operation management 
• FOURTH WALL: enterprise and construction life cycle management
• HELLOUFU: SaaS platform for property management
• WELTOP: spatial information service provider
• CLOUDANSYS: infrastructure security solution provider
• SMARTEARTH: digital twin whole industry chain service provider
• DIVS TECH: smart real estate big data solution
• EFON SOFT: Big data, AI products, and service providers
• 24E: big data business intelligence (BI) data analysis service
• WOJIA CLOUD: one-stop digital management solution for property and enterprises

Representative enterprises of cooperative assistance:

• E SIGN: all ecological electronic signature service provider
• JUZHOUYUN TECH: cloud ERP of real estate enterprise informatization
• CHANGXIE: lightweight real-time online cloud collaboration document editing tool 
• BAISHI CLOUD: privatization deployment of enterprise communication systems such as video conference, Internet phone, enterprise live broadcast, etc 
• QIBAN: Internet + integrated enterprise service platform
• LOUXIAOER: office scene enterprise service platform

2. Energy services:

Energy services are a part of smart buildings, but their importance seems to be much higher than other parts at present. In a building or park, energy consumption accounts for the largest cost of asset operators. Therefore, the operators also pay great attention to the use and consumption of energy.

In general, intelligent building platforms have the function of monitoring energy use. Would it be better to reduce energy consumption more intuitively after monitoring? Therefore, innovation projects need to have more initiative, which can help operators to control the use of energy more directly, and realize the function of space more efficiently without sacrificing the quality of space.

On the other hand, energy measurement also has a more detailed use scenario. In the process of dividing and merging all kinds of spaces, better tracking of energy use has become a major demand of operators.

We mainly divide energy service projects into energy management and energy measurement.

Representative enterprises of energy management:

• EQUOTA: AI energy intelligent management service provider
• BLMES: whole life cycle intelligent energy efficiency improvement service of large public buildings 
• LEANLOOP: AIOT platform for regional integrated energy intelligent management
• PERSAGY: digital intelligent service provider in the field of building operation and maintenance 
• EN Trak: a multi-class energy management platform scheme
• CUBENERGY TECH: energy saving scheme of energy Internet big data platform.

Energy-saving scheme of energy measurement:

• POWERBEE: one-stop intelligent power management system solution supplier
• CONTROLSYS: intelligent energy management solution for apartment 
• INBESTECH: provide communication chips and modules, intelligent hardware products, and electrical fire monitoring solutions

3. Security system:

Security and fire protection are just the needs of asset operators. These two fields seem to be more common artificial mode, and there is quite a long time use scenarios.

After the introduction of all kinds of new technologies, the disadvantages of low efficiency and high cost of manual mode have gradually emerged. Through the application of mature technologies such as video monitoring and sensor monitoring, combined with the practical application experience, some project parties have found a better scenario solution.

In this section, the access control system should be more important. At present, intelligent access control has become a standard in all kinds of new space, and the competition in the industry is gradually fierce.

We mainly divide energy service projects into access control, security, and fire protection. 

Representative enterprises of entrance guard and security:

• YUNDING: R&D and production of home intelligent security products and services
• DOSHINE INTELLIGENT: independent research and development of Internet of things intelligent access control system 
• OEEO: intelligent access control system and professional level access management solution 
• BANSHENGHUO: intelligent access control system and community service platform
• LINGYUN: provider of access control and asset management solution
• QINLIN TECH: community intelligent access service provider
• XINGWEI TECH: provide intelligent security early warning service
• REJIA: public security solution provider with the Internet of things intelligent terminal as the core 
• ANTLINK: Intelligent security system R&D service provider

Representative enterprises of fire control:

• FAZHIYUN: one-stop intelligent fire control platform
• iFire: fire control information solution provider
• RAYEYE: Intelligent fire control data analysis and application service
• IOT FIRE PROTECTION: smart fire control solutions and service providers

4. AIOT underlying technology:

With the continuous development of the underlying technology of AIOT, various more sophisticated application technologies for the real estate field are also emerging. Here we briefly list some technologies that are relatively related to commercial real estate operation.

For example, the Internet of things technology, which naturally has many points of agreement with real estate, is also an indispensable underlying technology in smart buildings, smart homes, and other subdivisions. Edge computing is also a hot word in recent years. At present, its combination with commercial real estate is still less, but it is developing rapidly. Indoor positioning has a wide range of application scenarios in space management, but the current technical standards are still not unified. All kinds of technologies are looking for opportunities to better connect with other fields.

Represents the enterprises of IoT:

• ZIFISENSE: multi-scenario pan industrial Internet of things solution
• YUNZHIYI: smart living space, Internet of things, middle platform and application enabling the service provider 
• FOCUS: focus on the application of IOT technology in the field of real estate
• QT PARKING: enterprise-level Internet of things platform service enterprise
• LINGTEK: Integrated solutions and services of the Internet of things
• POLYSENSE: general sensor and communication IOT infrastructure and service provider 
• BOHAI ZHONGTIAN: develop AIOT products based on machine vision and image recognition technology 
• GEEKU IOT: innovation technology in the field of distributed and scenario CPS IOT
• INFINITE CITY: Provide full scene WiFi network construction and operation services
• RUHR: provide professional security Internet of things solutions and system services

Represents the enterprises of edge computing:

• JIANGXING INTELLIGENT: development of advanced edge computing technology and its application in many fields 
• LITINS: Intelligent factory edge computing solution
• SHENQISHEN: edge computing intelligent service provider
• WEIZHI BIANYUAN CLOUD: edge computing intelligent service provider

Represents the enterprises of indoor positioning:

• UBITRAQ: UWB technology of high precision indoor and outdoor positioning at centimeter-level 
• WIFIPIX: data mining of consumer behavior and scenario information of mobile users
• PALMAP: high precision indoor map and indoor positioning technical service
• JINGWEI TECH: UWB high-precision real-time positioning technology, system product development, and Solutions 
• BRIGHT BEACON: provide 3D application, map application (2D-3D GIS) and data visualization application 

Space Operation 

The most important core of space operation is interaction. Different from the function of Internalization of space management, the operation of space emphasizes the interaction with space users. In other words, we should pay more attention to the function of the external.

From the perspective of stage, space operation acts on the back- end relatively, mainly focusing on the links with the outside. It includes not only making users experience the value of space but also amplifying the value of space in various ways. The projects here try to improve the operation ability of space through various means, and guide the market to accept, so as to finally realize the value of space.

Space ultimately belongs to the user. Only the space that users can identify with is the real space with social attributes and values.

1. Operation software:

Operation software is the most common form. In terms of function, the operation software and management platform overlap to a certain extent, and the boundary between them is also vague. From our perspective, the operating software is more integrated into the user’s data and feedback and pays attention to the economic value generated in the space.

Among these operating software, SaaS software is the largest in number to manage the business of commercial real estate investment services. This part of the business is just needed for the vast majority of asset operators, and the demand is relatively clear. Because of this, there are many kinds of SaaS software in the market, and the competition is relatively homogeneous. This requires the project to have more practical landing scenarios and specific problem-solving capabilities.

On the other hand, auxiliary operation software such as data service is also concerned by the market. With the value of data being paid more and more attention, a variety of data application methods have emerged. Projects that enable operators to learn market data more freely will also be favored by more people. 

Representative enterprises of SaaS:

• CREAMS: build a complete digital business assets management system
• Spacesforce: Build a digital asset management model of the whole process and multi-dimensions 
• DOMESEE: provide an online asset management platform and offline intelligent hardware
• FUSION TREE: provide city and business intelligence engine based on demand
• 1HELLO: SaaS leasing management system for commercial real estate stock market
• GAIA: provide big data and business intelligence solutions for shopping centers and other business forms 
• FANCI: provide asset management and financial services based on the Internet of things of intelligent devices 
• AQUILAFLY CLOUD: provide big data & intelligent decision & payment marketing data intelligent solutions for shopping centers 
• SHAZAM TECH: focus on the innovation and application of new technology in the field of commercial real estate asset management 
• SHUIDI GUANJIA: Intelligent management tools for long-term Apartments
• YUXIAOR: improve the operation efficiency of apartment operators (professional second landlords) through technical means 
• STARHOUSE AI: provide innovative business intelligence and big data visualization analysis solutions for the commercial real estate asset management industry 

Representative enterprises of data services:

• METRODATA TECH: dedicated to big data and AI services
• YUNFANG DATA: collect data of the whole transaction chain
• TUBOSHI: second-hand transaction data covering 43 cities in China
• QUANT URBAN: big data consulting company for urban development services
• GISUNI: comprehensive solutions and service providers of the geographic platform
• GEAHEY: provide consultation and development of 3D application, map application (2D-3D GIS), and data visualization application 
• ALL VIEW CLOUD: provide big data products in the real estate field 

2. Operators:

Operation service can be regarded as the first track in PropTech that has attracted the attention of the industry. From the beginning of WeWork, the concept of joint office has swept the whole world and changed people’s cognition of office space to a large extent. And in China, such as long-term apartments and other forms of business, are also undergoing tremendous changes. In this process, operators have introduced some concepts of science and technology to integrate space operation services through more cutting-edge means. On our industry blueprint, we only take office space as the main line for the time being, while other forms such as long-term apartments and hotels are not included for the time being.

Correspondingly, we pay more attention to some special space operators. In particular, some of the original idle space to activate the new service providers. For example, meeting space, flash space, parking space, etc. are all the new subdivision needs brought by the new business model. Originally, they are only part of the overall space operation. And in this era, they can all stand out and rebuild their own operation system.

Representative enterprises of other space operation:

• POPUPUNION: flash events and flash store operation platform
• READWAY: chain bookstore innovative operator
• 31HUIYI CLOUD: conference industry scene marketing technology service provider
• CANEVENT: one stop online service and management system of Digital Conference 51
• HUIYISHI: professional office meeting space management service provider
• MERAK: provide a comprehensive intelligent conference solution
• TINGTIANXIA: build an intelligent “cloud” parking ecological chain
• HAOTINGCHE: value-added operation service provider of parking space assets in the parking lot 
• ICE TECH: AI parking and solution provider
• RANDO: digital technology-driven management and service organization of urban economic homestay

3. Space Trading:

The value of space needs to be tested in the market, which is the stage of realization of space value. From the perspective of space trading mode, whether it’s for rent or for sale, it’s a process for space holders to actively offer and actively solicit users. In this process, more accurate information dissemination channels are needed to help them reach the expected users more accurately.

In similar brokerage services, the application of big data has become very common. The following is the intervention of artificial intelligence. Through new scientific and technological means, the value realization process of space can break the original artificial barriers to complete transaction services from a more dimensional perspective.

Representative enterprises of space transaction:

• MASHANG BANGONG: office location service platform covering multiple leasing businesses 
• ZHUGE ZHAOFANG: use big data algorithm and artificial intelligence to provide real estate information search service 
• IDEAMAKE: provide scientific and technological support and digital marketing tools for the traditional real estate industry 
• QIAOFANG TECH: provide enabling services for the whole process scenario of real estate transaction 
• JULIVE: new house e-commerce platform based on big data matching mode
• HAOZU: Internet office rental service provider
• DIANDIANZU: an Internet platform providing office leasing and supporting services for growing enterprises 
• ZOOMOFFICES: Intelligent rental platform of flexible office space based on Artificial Intelligence 
• GIGACRE: Internet industry real estate investment platform
• YUN SPACE: short lease platform of commercial space
• MOGU ZUFANG: provide a deep management plan for the whole industry chain of the rental industry 
• LIEJU TECH: real estate + artificial intelligence intelligent marketing service provider 
• KAKAMF: blockchain real estate subscription trading platform

Source: GoCity PropTech Labs