QingCloud to Go Public on Star Market amid Ferocious Cloud Competition
The company would be the first 'Cloud' stock in China's A-share market.
According to the results of the 71st review meeting of the Listing Committee of the STAR Market, QingCloud passed a review held on September 4, with plans to raise CNY 1.18 billion for upgrading its Cloud products, for research and development (R&D), building infrastructure and liquidity supplement.
The company was founded in 2013 as one of the first companies providing hybrid Cloud solutions in China. Its self-developed hybrid Cloud architecture has been deployed in many sectors like finance, insurance, energy and others.
Hybrid Cloud is a significant trend in the global cloud landscape, as companies usually have multiple requirements like scalability, security, flexibility. It combines on-premise infrastructure, or private clouds, with public clouds so entities can take the advantages of both. For instance, an individual can put sensitive workloads such as financial reporting on the private cloud or on-premise computers, while deploying operations like email on the public Cloud.
QingCloud reported a fast-growing yet unprofitable business. The top line increased by 33.7% to CNY 377 million in 2019. In break down, Cloud product revenue reached CNY 246 million, 65.3% of its total revenue. The Cloud service offered by the firm contributed to the majority of the rest of the revenue. Besides, Qingcloud gave -50.6%,-53.0% and -40% net profit margins in the last three years. The company attributes this to its enormous R&D spending and fierce Cloud market competition.