Core Viewpoint - HaiMa Cloud Technology Co., Ltd. is pursuing an IPO in Hong Kong despite significant revenue growth from 2022 to 2024, it has not yet achieved profitability [1][4]. Group 1: Financial Performance - Revenue for HaiMa Cloud is projected to grow from approximately RMB 290 million in 2022 to RMB 520 million in 2024 [4]. - The company has incurred losses of RMB 246 million, RMB 218 million, and RMB 186 million for the years 2022, 2023, and 2024 respectively, indicating ongoing financial challenges [4]. - The gross profit margin has fluctuated, with figures of 21.2%, 26.6%, and 24.9% for the years 2022, 2023, and 2024 respectively [5]. Group 2: Business Model and Revenue Sources - HaiMa Cloud claims to be the largest GPU as a Service (GPUaaS) provider in China, with its cloud gaming GPUaaS business expected to account for nearly 90% of revenue by 2024 [3]. - The company has three main business segments: cloud gaming GPUaaS, cloud-native content services, and other services [3]. Group 3: Key Customers and Related Transactions - Migu Culture Technology Co., Ltd. is the largest customer, contributing 42.5%, 46.4%, and 35.7% of HaiMa Cloud's revenue from 2022 to 2024 [2][7]. - Migu Culture holds a 13.62% stake in HaiMa Cloud, highlighting the interconnectedness of their business relationship [2][7]. - China Mobile, the parent company of Migu Culture, has also been a significant supplier, with procurement amounts representing 8.2%, 0.2%, and 0% of total purchases from 2022 to 2024 [8]. Group 4: Operational Challenges - High administrative and research & development expenses have been significant factors contributing to the company's losses, with administrative expenses accounting for 24.5%, 26.4%, and 15.2% of revenue, and R&D expenses accounting for 46.1%, 33.5%, and 19.4% of revenue from 2022 to 2024 [6].

Group 1 - Company Anhui Haimacloud Technology Co., Ltd. (Haimacloud) is planning to list on the Hong Kong Stock Exchange, with funds raised intended for infrastructure investment, R&D, product development, and working capital [1] - Haimacloud holds a 17.9% market share in China's real-time cloud rendering service market for cloud gaming, with projected revenue of 520 million RMB in 2024 and a three-year compound annual growth rate (CAGR) of 33.8% [2][3] - Despite revenue growth, the company has accumulated losses of 650 million RMB over three years, with net losses of 246 million RMB, 218 million RMB, and 186 million RMB from 2022 to 2024 [3][4] Group 2 - Haimacloud's gross profit margins are low, with rates of 21.2%, 26.6%, and 24.9% from 2022 to 2024, significantly below industry averages [4][5] - The company's cost structure is heavily influenced by computing resources and IDC costs, which accounted for approximately 91% of sales costs in 2022, leading to pressure on gross margins [7][8] - Financing costs have also eroded profits, with financing costs reaching 108 million RMB, 110 million RMB, and 119 million RMB from 2022 to 2024, exceeding gross profit margins [7][9] Group 3 - Haimacloud's revenue concentration is high, with the top five customers contributing 72.7% of total revenue in 2024, and the largest customer, Migu Culture, accounting for 35.7% [10][11] - The company relies on a limited number of suppliers, with the top five suppliers accounting for 70.1% of total purchases in 2024, which poses risks if suppliers increase prices [12][13] - The company has experienced significant cash outflows, with a net cash outflow of 2.821 billion RMB over three years, relying heavily on financing to sustain operations [14][15] Group 4 - Haimacloud faces regulatory risks, having been reported by the Ministry of Industry and Information Technology for issues related to personal information collection, which could impact customer relationships [20][22] - The cloud gaming industry is growing rapidly, with a projected CAGR of 35.4% from 2024 to 2029, but the overall market size remains limited, with only 2.6 billion RMB expected in 2024 [22][23] - Despite being the market leader in real-time cloud rendering services, Haimacloud's position is threatened by major players like Tencent and Alibaba, who can internalize their rendering needs [23]