China's Largest Cloud Server Kingsoft Cloud Files For HK IPO

Technology Author: Jiawei Wu Editor: Yiru Qian Jul 28, 2022 04:47 PM (GMT+8)

From Nasdaq to HKSE, Kingsoft Cloud was not yet profitable.

Kingsoft Cloud

Kingsoft Cloud (Chinese: 金山云, NASDAQ: KC), one of the independent cloud service providers in China, filed documents for a dual primary listing in Hong Kong on July 27.  

Founded in 2012, Kingsoft Cloud successfully went public in the U.S. in May 2020, with its share price reaching a record high of USD 74.67. However, by the close of trading on July 27, Kingsoft Cloud's U.S. shares were USD 3.47 apiece, down more than 95% from the peak.

Featuring in public cloud and industry cloud services, Kingsoft Cloud had 7,951 customers as of December 31, 2021, covering multiple vertical industries from video, public services, healthcare to gaming and financial services.

According to its prospectus, the company achieved sustainable business growth but recorded losses during the reporting period. In 2019, 2020, 2021, Kingsoft Cloud's revenue were CNY 3.96 billion, CNY 6.58 billion, CNY 9.06 billion and CNY 2.17 billion, respectively, with a compounded annual growth rate of 51.3%. Nonetheless, the firm's net loss also witnessed an upward trend over the period from 2019 to 2021, namely CNY 1.11 billion, CNY 0.96 billion 962 million and CNY 1.55 billion, respectively. 

In other words, Kingsoft Cloud's net loss for the past three years reached CNY 3.67 billion. In the first quarter of 2022, its net loss further expanded to CNY 555 million.

The top-ranked cloud infrastructure services market of Q1 2022 in the Chinese mainland was Ali Cloud, Huawei Cloud , Tencent Cloud and Baidu Smart Cloud, per Canalys. In the market with a four-firm concentration ratio (CR4) of 78.8%,  the future for Kingsoft Cloud would never be roses and rainbows.