Looking back at history, from the steam engine of the Industrial Revolution to the Internet of the Information Age, every technological leap has reshaped the industrial landscape, giving rise to new business models and economic growth points.

Today, as the core driving force of a new round of technological revolution, AI is profoundly transforming the face of various industries. From healthcare to finance, from manufacturing to services, the application of AI technology continues to unlock potential in enhancing operational efficiency across industries and creating new industrial value.

In this transformation, the IT industry, as the foundational support and technical guarantee for AI development, is providing critical support for the implementation and application of AI technology by focusing on the development of high-performance computing equipment, advanced data processing tools, and intelligent products and services. At the same time, the development of AI is further accelerating the transformation and upgrading of the IT industry, whether it is the accelerated replacement of IT equipment or the innovation and creation of various new IT devices, such as the emergence of Physical AI hardware products like smart robots, smart sensors, and intelligent monitoring equipment, all of which are driving the IT industry towards greater efficiency and intelligence.

However, in this context, traditional IT equipment procurement and management models have struggled to meet enterprises’ needs for rapid technological iteration and cost control. In response to this challenge, the DaaS (Device as a Service) model, with its flexible equipment leasing, full lifecycle management, and intelligent services, has become an ideal choice for enterprises to address these issues. It not only redefines how companies acquire and utilize IT equipment but also effectively helps reduce the costs and risks associated with equipment upgrades, while improving the efficiency and flexibility of equipment management, enabling companies to respond quickly to market and technological changes.

In the DaaS industry, Lingxiong Technology, as a leading enterprise, may be entering a new phase of growth opportunities. This company, which started selling computers in 2004, has built a diverse ecosystem encompassing the entire lifecycle management and digital services of IT equipment, from leasing to recycling, after over 20 years of accumulation.

So, how should we view the growth opportunities for Lingxiong Technology in the AI era?

01

Reconstructing the Full Lifecycle Management of Equipment to Create a New Paradigm for Efficient Operations

Generally speaking, corporate equipment management often faces two fundamental contradictions. On one hand, there is the rigidity of equipment procurement versus the flexibility of business needs. On the other hand, there is the rapid pace of technological iteration versus the long-term nature of asset depreciation.

Traditional solutions either involve purchasing more backup machines when budgets are ample, extending the service life of equipment when budgets are tight, or making temporary purchases to meet sudden demands, all of which lead to high procurement and maintenance costs.

Under the DaaS model, equipment is no longer a one-time capital expenditure but an operational expense that can be paid monthly. The ‘rent-and-return-at-any-time’ service model also grants businesses high flexibility in equipment deployment, allowing them to dynamically adjust the number of subscribed devices based on actual operational needs, thus achieving elastic management of equipment resources while effectively alleviating cash flow pressure. Corporate clients are also spared from bearing the costs of equipment disposal and maintenance; they only need to update their equipment upon service expiration to continuously use devices that meet business requirements, further optimizing resource utilization efficiency and reducing operational burdens.

Data from institutions such as Lingxiong Research Institute shows that, compared with traditional procurement models, the DaaS services provided by Lingxiong Technology can save corporate clients up to 97.4% of initial investment and help them reduce total costs by 30% over three years.

As the AI era, cloud computing, and mobile office solutions become more prevalent, enterprises are increasingly demanding finer granularity in equipment management, transitioning from previous rough management practices to refined operations. Cost-reducing and efficiency-boosting DaaS services are gradually becoming an essential requirement for enterprise operations.

Lingxiong Technology, as a leading company in the DaaS sector, has seized opportunities to completely reshape and activate the value of equipment.

On one hand, through front-end subscription, it transforms ‘buying’ into ‘subscribing’.

Compared to the traditional equipment procurement model, which often requires a large lump-sum investment, under today’s accelerating pace of equipment upgrades, this approach can easily lead to asset idling and waste. Lingxiong Technology’s subscription model, however, allows companies to flexibly choose equipment configurations, quantities, and usage durations according to their changing business needs, pay as needed, and receive accompanying IT technical services, significantly lowering initial investment costs and operational risks for enterprises.

On the other hand, through midstream remanufacturing, it transforms ‘idle’ into ‘new’.

By centrally recycling and remanufacturing idle equipment, Lingxiong Technology optimizes equipment supply chain management, improves the circulation efficiency of devices and resource allocation, reduces the idle time of equipment in the market and waste in circulation processes, while meeting the cost-control needs of different customer groups for equipment, thereby enhancing asset utilization and overall operational efficiency of the company.

Finally, relying on digital transformation, it achieves a value transformation from ‘physical’ to ‘digital’.

As one of the first companies in the industry to initiate digital transformation, Lingxiong Technology, through continuous and in-depth digital development, not only provides corporate clients with more precise, efficient, and personalized services to meet diverse needs in equipment operation and management, but also ensures seamless information flow across all internal processes. Moreover, through data accumulation at various stages, and analysis based on an overall digital architecture, it effectively supports various operational aspects such as process control, risk management, and data analysis, thereby achieving more refined operational management.

It can be said that under the DaaS model, enterprises have shifted from the traditional “buying equipment” to “subscribing to services.” This model not only optimizes enterprise equipment management costs and flexibility but also achieves a transition from “one-time depreciation” to “multiple value creation” through equipment recycling and remanufacturing. It can effectively extend the lifecycle of equipment and even create new market demand. Meanwhile, by using digital means to manage and maintain equipment, enterprises can shift from “reactive repairs” to “proactive prevention” and “risk isolation,” improving equipment efficiency and reliability while reducing operational risks.

In a nutshell, although the equipment remains the same, its value no longer unidirectionally depreciates but instead bounces back like a ping-pong ball—each rebound generates part of the profit while opening up new operational space for enterprises. This is precisely the unique value and appeal demonstrated by DaaS companies such as Lingxiong Technology.

02

AI-driven service upgrades to build a new ecosystem of intelligent collaboration.

While the DaaS model brings flexibility in equipment management and cost optimization to enterprises, technological changes continue to reshape the business operating environment. With the advent of the AI era, the DaaS industry has now positioned itself at the forefront of technological innovation. The rapid development of AI technology has not only increased the demand for high-performance computing equipment but also accelerated the frequency of enterprise equipment upgrades. Enterprises must not only deal with the replacement of traditional equipment but also face the introduction and management of emerging technology devices such as AI computing equipment. This not only increases the cost of equipment procurement but also presents new challenges for equipment management and maintenance.

Specifically, each technological upgrade may mean that enterprises need to invest substantial funds in purchasing new equipment while addressing the disposal of outdated equipment. Additionally, the management and maintenance of emerging technological devices such as AI computing equipment require specialized technical knowledge and experience, which places higher demands on an enterprise’s IT team. For many enterprises, this is not just a cost issue but also a management challenge.

Against this backdrop, the DaaS industry is presented with unprecedented new opportunities. The DaaS model can help enterprises effectively address these challenges by reducing equipment upgrade costs and simplifying equipment management processes through flexible equipment leasing and management services. Enterprises can flexibly select and lease required equipment based on changes in their business needs. Meanwhile, DaaS service providers can offer professional equipment maintenance and technical support, helping enterprises better manage their equipment and ensure efficient operation.

Based on this, Lingxiong Technology, which has extensive experience in the DaaS industry, has constructed two business pathways – an “implicit line” and an “explicit line” – leveraging its deep technical expertise and keen insight into market demand. Through continuous technological innovation and high-quality services, it provides enterprises with more flexible, efficient, and low-cost equipment management solutions.

Implicit Line: AI empowers internal operations to enhance efficiency and user experience.

In terms of internal operations, Lingxiong Technology was among the first to apply AI technology to its own business, driving quality improvement and efficiency enhancement.

For instance, in terms of customer service, Lingxiong Technology has launched an automated AI customer service system designed to operate around the clock. This system can respond to customer inquiries in real time, quickly provide answers to questions, and significantly enhance the customer experience. Additionally, the AI customer service system generates a substantial amount of data for analyzing customer needs, trends, and feedback, helping the company continuously optimize its services.

In risk control, Lingxiong Technology leverages big data analytics to continuously strengthen its risk management and credit approval systems, effectively reducing its own business risks while significantly improving operational efficiency and decision-making accuracy.

Explicit Focus: AI-related leasing services empower customer value enhancement and business expansion.

Externally, Lingxiong Technology uses hardware leasing as an entry point to offer subscription services for AI computing devices such as servers. This not only meets customers’ urgent demand for AI computing power but also creates new growth opportunities and market potential for Lingxiong Technology itself.

Currently, the application of AI technology is deepening and expanding across various industries, leading to explosive growth in demand for AI computing power. Whether large enterprises are conducting large-scale data mining and machine learning model training or small and medium-sized businesses are exploring AI-driven innovations, robust computing capabilities are essential. However, purchasing and maintaining high-performance AI computing equipment often require significant capital investment and technical support, posing a major challenge for many companies.

Lingxiong Technology’s leasing and recycling services for computing equipment provide customers with a flexible, efficient, and cost-manageable solution. Customers can flexibly choose devices with different configurations and performance levels based on their business needs and budgets, subscribing on-demand without having to make substantial upfront investments. This model not only lowers the technological barriers and costs for businesses but also improves equipment utilization, avoiding idle assets and waste. Meanwhile, leveraging its rich experience and professional expertise in the DaaS field, Lingxiong Technology ensures that customers receive reliable hardware support and service guarantees during usage.

It can be said that, driven by AI technology, Lingxiong Technology has not only achieved efficiency improvements and risk control in internal operations but also provided more valuable services to customers externally, opening up new avenues for its development. It is foreseeable that as AI technology becomes deeply integrated into DaaS services, Lingxiong Technology will continue to explore more innovative use cases, optimize service models, improve service quality, and build a new ecosystem of intelligent collaboration, creating greater value for both customers and itself.

03

Seizing policy and demand dividends to capture new opportunities for value multiplication.

Driven by AI technology, the DaaS industry is undergoing unprecedented transformation. Lingxiong Technology, with its outstanding performance in technological innovation and business expansion, has already achieved remarkable success in this field. However, technological progress is just one of many factors driving corporate development. In today’s complex and ever-changing market environment, policy support and shifts in market demand also play crucial roles in shaping a company’s growth trajectory.

From the current perspective, the convergence of AI technology, policy incentives, and market demand has created an unprecedented development opportunity for Lingxiong Technology.

On the technology front, the rapid development of AI technology is reshaping the entire industry ecosystem, creating a larger market space.

Looking solely at the computing power market, according to IDC forecasts, China’s intelligent computing power scale will maintain rapid growth. By 2025, the market size of China’s AI computing power is expected to reach USD 25.9 billion, representing a year-on-year increase of 36.2%; by 2028, this figure is projected to soar to USD 55.2 billion.

Focusing on Lingxiong Technology, through its innovative practices in the AI computing power equipment leasing sector, the company not only provides customers with flexible, efficient, and cost-controllable solutions but also continuously drives the intelligent upgrading of the entire industry. Additionally, through the application of AI technology, Lingxiong Technology can better manage the full lifecycle of equipment, optimize business processes, and enhance overall operational efficiency. It is foreseeable that with the continuous growth of market demand and ongoing technological innovation, Lingxiong Technology is well-positioned to capture a larger market share in future competition and become an indispensable force in the AI era.

At the policy level, government initiatives such as the ‘trade-in’ policy and the in-depth implementation of the ‘AI+’ action plan provide strong support for enterprises in terms of equipment renewal and technological upgrades. These policies not only encourage companies to upgrade their equipment but also promote the widespread application of AI technology across various industries, potentially leading to explosive growth in Physical AI.

Specifically, according to the opinions issued by the State Council on the in-depth implementation of the ‘AI+’ action, it explicitly states that by 2027, the penetration rate of new-generation smart terminals and intelligent agents will exceed 70%, and by 2030, it will surpass 90%. As an industry leader, Lingxiong Technology is well-positioned to fully capitalize on these policy incentives, further expanding its market share and increasing market penetration.

In terms of market demand, enterprises are showing a stronger trend toward the essential need for cost reduction and efficiency improvement through DaaS (Device as a Service) offerings.

Facing a complex and ever-changing external competitive environment, companies are increasingly focusing on cost control and improving operational efficiency. Lingxiong Technology’s DaaS services help enterprises reduce initial investment costs and operational risks while enhancing equipment utilization through equipment leasing, flexible subscription models, and technical support. Moreover, the application of AI technology further spurs the demand for equipment upgrades. To remain competitive, enterprises must continuously update their equipment to keep up with advancements in AI technology, which in turn creates more growth opportunities for Lingxiong Technology.

Based on the above three major drivers—technological advancements, policy support, and growing market demand—it is evident that Lingxiong Technology, leveraging its leading position in the industry, is able to better meet customer needs and seize growth opportunities through continuous service optimization and technological innovation.

Returning to the capital markets and looking at the international landscape, it is clear that Lingxiong Technology’s business model bears striking similarities to that of Cintas (CTAS.US) in the US stock market. Both companies achieve efficient utilization of related products through a full lifecycle management service model, continuously creating value for customers. Currently, Cintas’s total market capitalization exceeds USD 80 billion, with a price-to-sales ratio close to 8x. This valuation reflects the market’s high recognition of its business model and positive expectations for its future growth potential. In contrast, Lingxiong Technology’s price-to-sales ratio of just 0.63x appears significantly undervalued. Clearly, this valuation discrepancy suggests substantial room for value discovery. Through the aforementioned analysis, it is apparent that Lingxiong Technology operates in a prime growth sector, laying the foundation for high growth potential. Its business model demonstrates both stability and rarity, positioning the company to benefit continuously from the surging demand of the AI era and ushering in a new phase of value appreciation.

04

In conclusion

Overall, Physical AI is not a concept but an engineering wave that ’embeds intelligence into every gear.’ In the future, AI will be integrated into various scenarios of life, from smart homes to intelligent transportation, from industrial automation to healthcare. The applications of AI will be ubiquitous. The devices supporting all of this will become the key to driving the implementation and popularization of AI technology.

Against this backdrop, Lingxiong Technology, with its unique business model, provides a novel solution for equipment management and services in the AI era: allowing customers to move forward with reduced burdens through a subscription model at the front end; enhancing overall equipment utilization through remanufacturing at the mid-end while converting depreciated equipment into new profit sources; and reducing risks and improving efficiency through digital operations at the back end.

As the rapidly evolving changes of the AI era unfold, Lingxiong Technology has positioned itself at the gateway to Physical AI, acting as the intermediary that offers, collects, and polishes the tools—building the most scarce ‘IT infrastructure’ for the AI era.