NaaS Technology Inc. (NASDAQ: NAAS, “NaaS” or “the Company”) announced that the Company has signed a strategic cooperation agreement with Beijing Jingcheng International Financial Leasing Co., Ltd. (“Jingcheng Leasing”), whereby the two parties will collaborate on the development and implementation of technology and financing services for electric vehicle (“EV”) charging facilities. The strategic cooperation will draw from the strengths of both parties in terms of their respective resources and business advantages, and facilitate the development of new charging infrastructure through the combination of industry expertise and financial expertise.
“The strategic cooperation between NaaS and Jingcheng Leasing will efficiently connect charging station operators’ strong demand for financing services, to the relevant financial services, and, by doing so, further strengthen the integration and utilization of industry resources,” said Xiang Yu, Vice President of Operations, NaaS. “The tie-up will allow NaaS Technology to serve as a ‘connector’ for the industry. The two parties will make their financial services solution for the EV supply chain available throughout China, solving a challenge facing various parties in the industry value chain, while serving to power the ecosystem with financial services. Both parties look forward to collaborating to build and strengthen China’s EV sector.”
The partnership integrates the digital capabilities of NaaS along with Jingcheng Leasing’s financial services to provide operators with one-stop financing solutions, enabling operators to be able to lease the charging pile equipment at the beginning of the construction cycle and opt to pay back the borrowed funds through installments.
By providing this option, operators can proceed with the construction of charging stations and develop a roadmap whereby the construction of the stations is continuous and uninterrupted, ultimately resulting in the build out of fully-functional urban charging networks. In addition, the partnership will also facilitate the sales of charging pile equipment, improve profitability, leading to the development of a virtuous cycle for the industry.
Jingcheng Leasing, is a subsidiary of Beijing Jingcheng Machinery Electric Holding Co., Ltd., and is focused on serving the development of the real economy through Jingcheng Leasing’s abundant funding and diversified product portfolio. Jingcheng Leasing provides high-quality financial leasing products and financial solutions primarily to manufacturers of power generation equipment, environmental protection equipment, CNC machine tools, high-pressure vessels, printing machinery, additive manufacturing and industrial robots.
“NaaS serves many charging pile manufacturers, charging station operators, OEMs and vehicle owners. The cooperation with NaaS enables us to bring financial leasing services to the booming EV charging market and allows us to vastly expand our customer base,” said Jianfeng Jing, General Manager of Jingcheng Leasing. “Jingcheng Leasing looks forward to our successful cooperation, where together we will serve customers through the power of technology and finance, and facilitate the healthy development of the EV charging industry, and in the process, contribute to the development of China’s renewable energy sector, helping towards achieving the country’s dual-carbon goals.”
With the rising popularity of EVs, the market for the construction of charging infrastructure is expanding. In 2020, the construction of charging piles was included in the <<government work report>> for the first time as one of seven new infrastructure projects. State-owned financial services company Guosen Securities predicted that in the next ten years, there will be a need for some 63 million charging piles across China, creating an infrastructure construction market with a value estimated at 1.02 trillion yuan (approx. US$152 billion). Such a market will also create parallel demand for related financing services. In the actual construction of such stations, some small- and medium-sized operators or state-owned enterprises may find themselves unable to complete the construction of their stations due to insufficient funds or poor fund allocation, thereby creating the need for financial solutions.
About NaaS Technology Inc.
NaaS Technology Inc. is one of the largest and fastest growing EV charging service providers in China. The firm is a subsidiary of NewLink, a leading energy digitalization group in China. NaaS provides one-stop services to charging pile manufacturers and operators, OEMs, companies with their own delivery fleets as well as fleet operators, with online, offline, and non-electric services covering the whole value chain across the EV sector. As of 2021, NaaS had connected 290,000 charging piles, with an annual charging capacity of over 1,200 Gigawatt hours, accounting for about 18% of China's public charging market and eliminating 900,000 tons of carbon emissions annually. On June 13, 2022, NaaS Technology Inc. was officially listed on NASDAQ under the stock code NAAS.