We take 10,000 light poles as an example to calculate, the total expenditure is 539 million yuan, according to the project capital investment of 40%, special debt investment of 60%, 15 years of calculation, annual cash inflow is 180 million, cash outflow is 100 million, net cash inflow is 79 million, IRR is 11.99%.

The smart light pole industry sprouted in 18 years, opened in 19 years, and increased in 20 years – the overall exponential growth. According to incomplete statistics, the total size of smart street lamp orders in 2018 is 353 million yuan; In 2019, the total order size was 5.19 billion yuan, an increase of 1368%; In 2020, smart street lights continue to grow at a rapid rate, and as of June 30, 2020, the total order size reached 24.651 billion yuan. If the order volume in the second half of 2020 is slightly higher than the first half of the year, the total project scale in 2020 is expected to reach 44.1 billion yuan.

According to the National Bureau of Statistics, urban road lighting continues to grow, from 16.94 million in 2009 to 27.38 million in 2018, with a compound annual growth rate of 5.48%. According to our calculation, from 2015 to 2019, the penetration rate of smart light poles is 0.0037%, 0.007%, 0.0127% and 0.0237%, respectively.

The number of urban lighting street lamps is huge, from 2014 to 2018, the penetration rate of smart light poles in new urban lighting street lamps every year increased from 0.0022% to 0.0475%, and the total number of smart light poles is expected to reach 50,700 and 150,700 in 2020 and 2021, calculated by the unit price of smart light poles is 20,000 average price. The total potential market space reached 547.6 billion yuan.