TZGIoT

Connecting European and US companies with the leading Chinese tech SMEs and startups

Company logo
TBD

Context

The development of the Internet of Things (IoT), by which physical devices become
interconnected and interoperable, is becoming one of the largest tech opportunities for
companies, with an estimated USD6trillion to be spent in hardware and software solutions
in the next five years.1
Chinese companies have unique advantages to capture this opportunity, given the countrys
manufacturing ecosystem, which allows for highly competitive product prototyping,
development and market launch;
This not only includes low-cost components, but rather some of the most technologically
advanced devices; among other things, China manufactures the worlds most advanced
laptops, smartphones, drones and several other high-tech products;
International companies cannot ignore the opportunity offered by the best Chinese
technology companies and products; they can have a significant impact on the companys
operations and the value offer to its clients;
However, for international companies accessing the Chinese startup ecosystem is complex.

TZGIoT mission and vision

TZGIoT is founded with the objective of connecting the leading Chinese tech SMEs and
startups with European and US companies.
TZGIoT aims to become a key driver of corporate innovation by becoming a trusted partner
of businesses worldwide and the key gateway for technologically advanced Chinese startup
companies targeting the international markets.
With offices in Shanghai, California and its new base in Madrid, TZGIoT works closely with
companies worldwide.

TZGIoT key differentiating factors

End products for end buyers: we focused on technologically advanced end products that can
have a significant impact on the operations and value offering of international companies;
High-impact product portfolio: we aim at building a small portfolio of the best Chinese
technology products;
Unique product selection capabilities: we work with leading international entrepreneurs,
engineers, and university professors to identify and select the best products;

1
Source: BI Intelligence.
 China-focused: we focus on Chinese companies given their unique advantages to provide
technologically advanced products at a competitive cost and time to market speed;
Client support throughout the product cycle: we support our clients from identification to
product replacement phase.

About TZGIoT
TZGIoT is the technology arm of TZG, a global firm that builds and invests in high-growth
businesses. TZG focuses on early stage companies in China and has private equity,
investment banking, management, technology and new business start-up capabilities. TZG is
unique in that it considers the social and environmental impact of its choices, leveraging its
market knowledge, strategic thinking, and creativity to grow a portfolio of sustainable and
responsible businesses.

Contact
Eddy/Nicole
[goglobal@tzgiot.com]
A. Products2

Product 1: Mobile phone-activated lock (Linglingkaimen, www.linglingkaimen.com):

Product 2: Movable sockets, home/office wiring systems (Shanutec.com, XPower)

Product 3: Batteries for rent (jiediankeji.com (Ankerbox), imlaidian.com)
Product 4: Shared-bike B2B solution (YoBike)

B. Product 1: Mobile-activated lock (Linglingkaimen)

Background: The rise of shared-bikes companies such as Ofo and Mobike in China has brought
major software and hardware innovations; Mobike, for example, has over 100 patents in areas
from manufacturing to hardware and software integration; one of the most interesting
products is the bike lock;

Potential: the mobile-lock combines several characteristics that makes it a very suitable
product for TZGIoT: (i) simple to understand but technologically complex (hardware and
software integration); (ii) incremental rather than disruptive innovation, facilitating adoption by
corporates; (iii) multi-industry use cases; (iv) proven at scale in China (shared bikes, residential);
(v) limited knowledge/adoption of the product in Europe and the US;

Clients/buyers: Real estate, hotels, retailers, leisure facilities, shared economy start-ups;

Company identified: Linglingkaimen (www.linglingkaimen.com):

Rationale: Holds several patents for mobile-activated lock technology;3 (ii) Company profile
indicates that they may find challenges in accessing the international markets at scale;

Technology: Hardware device includes access control terminal that can be activated with
different access control systems; hardware does not require large memory storage, as
information is directly recorded into the back-end system;

Software works through SDK/API interface, which supports built-in third party app (including
WeChat official accounts); basic software function includes remote terminal to generate QR
code or other signals that contain users identity and related data (e.g. time of entry request),
access control terminal to execute opening instruction. Company also provides customized
solution package with more data collection, payment function etc.

2 Under analysis.
3 Linglingkaimen is suing Mobike for patent infringement. See for example http://www.chinaipmagazine.com/en/news-show.asp?id=8950.
Access technology: There are different smart unlocking technologies: QR code, fingerprint,
Bluetooth, NFC, wifi, smart card.
Tech Advantages Disadvantages Competitors
QR code Simple, secure, Mobike, Keyfree
convenient for single use
Fingerprint Safest Expensive hardware, not Traditional competitors
convenient for single use,
with previous fingerprint
required
Bluetooth Low-cost, easy, Security Companies in the US:
convenient Quicklock, iBlulock,
Plantraco, Ceomate,
Elecycle, Vians, Okidokey.
Companies in Cihna:
Eg.:www.tuner168.com
(smart devices driven by
bluetooth)
wifi Low-cost, easy, Security Many, e.g. shared-bike
convenient provider: YouOn
NFC Low-cost, easy, Expensive hardware Several
convenient requirements
IC card Easy to use Easy to lose Traditional competitors

Brief description of each of their products: Linglingkaimen has developed several related
products.
Product Function Performance Parameter
LING-O Shake the phone to open CPU Clock Speed 160M
Remote open Support WIFI, BLE 4.0; Transport distance 6m
Real time access management Support Wechat, App or SDK
IC/NFC are selection option
LING-C Shake the phone to open Linux operation system
QR code open CPU Clock Speed 1.2G
Remote open Support twisted or large angle QR code recognition
Real time access management Support WIFI, Bluetooth2.0/BLE 4.0, RJ45 and 485 internet
access, 3G wireless module
Support Wechat, App or SDK
LING-BW Shake the phone to open Linux operation system
NFC/IC card open CPU Clock Speed 1.0G
Remote open Support Wiegand interface for NFC/IC card
Real time access management Support WIFI, Bluetooth2.0/BLE 4.0, RJ45 and 485 internet
access, 3G wireless module
Support Wechat, App or SDK
LING-S Shake the phone to open Linux operation system
QR code open CPU Clock Speed 1.2G
NFC/IC card open Support twisted or large angle QR code recognition
Remote open Support Wiegand interface for NFC/IC card
Real time access management Support WIFI, Bluetooth2.0/BLE 4.0, RJ45 and 485 internet
access, 3G wireless module
Support Wechat, App or SDK
Step-by-step description of the user experience
Use case: building lock
a) Resident (staff or regular visitor with access right)
1) Download app and login with personal information (one-time procedure);
2) Open app and press the open button on the main screen to open the door;
3) Standing close to the door within the transport distance and shake the phone to open the
door (even at black screen)
b) Visitor (one-time access granted)
1) Resident/administrator selects people for which it wants to enable lock rights;
2) Input visitor information;
3) Generate QR code and send it to visitor through Wechat or message (QR code valid only
for one time and defined period of time);
4) Visitor scans QR code at the entrance to open the door.

Patents: Lingyun Tech. Company (parent company of Linglingkaimen) holds 6 patents, 5 of

which are related to lock opening; there are 16 patents hold under
(Dalian Zhihuicheng) which is 100% owned by the Lingyun Tech., 12 out of 16 patents are
related to lock opening; remaining 4 patents are related to security system.

How replicable is their technology? Some competitors are developing similar products using
WIFI, Bluetooth, NFC unlock, but no competitors doing QR code unlock for now. Key
competences for Lingyun might be at QR code unlock technology, as the other three unlock
methods have higher security issues.

Similar companies (in China and US):

In China:
- www.tuner168.com
Providing Bluetooth solution to connect different small devices to the internet; not
specialize in door unlock; not finalized product, focused on chips and development board.
- Key Free: http://www.keyfree.cn/wzsy
Product function most similar to Lingyun, also support QR code unlock; hardware part is
the lock itself, not sure about the compatibility to the existing access system; not found
company holding patent related to QR code unlock technology or other unlock method;
already have successful cases cooperating with real estate developers.
In the US:
- Bluetooth unlock providerQuicklock, iBlulock, Plantraco, Ceomate, Elecycle, Vians,
Okidokey, Mesh Motion;
- QuickLock : NFC and Bluetooth Locking Systemhttps://www.thequicklock.com/
Products of small locks with low price including padlocks and doorlocks; targeting
individual customers for personal use and home use;
- August: Smart home device provider, using APP (http://august.com/ )
Specialize in home door unlock, overlapping the functions by breaking them down into
 different small devices (camera, key pad, NFC and Bluetooth open, remote open);
product price and design positioning between middle-end to high-end.

Value-added services: No solution providing service; no indication of data collection function.

Potential clients/buyers:

Hotels, universities, real estate developers, gyms, car companies, "sharing economy"
companies;
Exhibition events: e.g. Automobile Shanghai, QR activated smart lock gates for different
exhibition halls;
Airbnb hosts: (no need of key handover the face-to-face check-in);
Amusement park or other public places with large volume: (require automatic teller
machine that can enable large volume to quickly access; no need to queue for onsite
ticketing purchasing; save the cost of paper tickets and more environmentally friendly;
collect data for customers for analysis use);
Joint working space: (high rate of staff turnover; lots of visitors; need of visitors registration;
potential security problem due to IC Card unlock; problem of misplacing or lost of IC Card);
Buildings with no front desk staff;
Warehouse and logistics facility (traditional lock for warehouse door or container door does
not provide all-day monitor and record of access opening; provide e-record in backend
system directly instead of print record which is easy to lose and damage;
Potential purchasers: Hotels (NH Hotels, Club Med, Melia, JinJiang), gyms, shared bikes
(Madrid, Barcelona, London, Paris), real estate developers (Wanda, Realia), universities.