Core Viewpoint - Anhui Haima Cloud Technology, a leading provider of real-time cloud rendering services for cloud gaming in China, has submitted its prospectus for an IPO on the Hong Kong Stock Exchange, aiming to raise capital despite significant losses and low profitability metrics [1] Company Summary - Haima Cloud holds a 17.9% market share in China's real-time cloud rendering service market for cloud gaming, with a projected compound annual growth rate (CAGR) of 33.8% from 2022 to 2024, expecting revenue to reach 520 million yuan in 2024, reflecting a year-on-year growth of 54.4% [1] - Despite revenue growth, the company has reported net losses of 246 million yuan, 218 million yuan, and 186 million yuan over the past three years, totaling 650 million yuan in cumulative losses, indicating weak profitability efficiency [1] - The company's gross margin has been consistently low, with a peak of 26.6% in 2024, compared to an average gross margin of 56.6% for mid-sized gaming companies listed in Hong Kong [1][2] - The primary cost driver for Haima Cloud is computing power, which accounts for approximately 91.0%, 68.9%, and 89.4% of sales costs from 2022 to 2024, severely limiting gross margin improvement [2] Financial Health - The company has relied heavily on financing to support its operations, with net cash outflows from operating activities of 490 million yuan, 1.65 billion yuan, and 680 million yuan from 2022 to 2024, totaling 2.821 billion yuan [3] - Investment activities have also resulted in net cash outflows of 400 million yuan, 530 million yuan, and 340 million yuan during the same period [3] - Financing activities have provided net inflows of 465 million yuan, 2.185 billion yuan, and 1.066 billion yuan over the three years, indicating a dependency on external funding [3] Debt and Compliance Issues - As of the end of 2024, the company reported total assets of approximately 7.008 billion yuan and total liabilities of 2.057 billion yuan, resulting in a debt-to-asset ratio exceeding 293%, significantly higher than the industry average [5] - The company's short-term debt repayment capability is concerning, with current liabilities surging to 2.04 billion yuan, a 241% increase from 2023, and a current ratio of only 0.2, well below the healthy threshold of 1 [5] - Compliance issues have arisen, with the Ministry of Industry and Information Technology notifying the company in April 2025 for problems related to personal information collection and SDK information disclosure, which could jeopardize client relationships and require additional costs for rectification [5] Industry Outlook - The overall market size for real-time cloud rendering services in China is limited, with projections of only 2.6 billion yuan in 2024 and 11.6 billion yuan by 2029, while major players like Tencent and NetEase dominate the market with substantial internal capabilities [6] - The competitive landscape poses challenges for third-party platforms like Haima Cloud, as major internet and gaming companies can fulfill most of their rendering needs internally, constraining the growth potential for external service providers [6]

Core Viewpoint - HaiMa Cloud has submitted an application for a Hong Kong IPO, positioning itself as the largest GPUaaS provider for real-time cloud rendering in China's cloud gaming industry, with a projected revenue CAGR of 33.8% from 2022 to 2024, despite ongoing losses [1][10]. Group 1: Company Overview - HaiMa Cloud is recognized as the largest GPUaaS provider for real-time cloud rendering in China, holding a market share of 17.9% in 2024 [3]. - The company has established long-term partnerships with major players in the industry, including China Mobile and several leading game developers, serving over 28,000 games as of December 31, 2024 [5]. Group 2: Financial Performance - Revenue is expected to grow from RMB 290.29 million in 2022 to RMB 519.53 million in 2024, reflecting a CAGR of 33.8% [10]. - Despite revenue growth, the company has not achieved profitability, with losses projected at RMB 186 million in 2024, down from RMB 246 million in 2022 [10]. - The gross profit margin is projected to decline from 26.6% in 2023 to 24.9% in 2024, influenced by high R&D and administrative expenses [11]. Group 3: Customer Concentration - The company exhibits high customer concentration, with revenue from its top five clients accounting for 72.7% of total revenue in 2024 [2][7]. - Migu Culture, a digital entertainment company, is the largest client, contributing 42.5%, 46.4%, and 35.7% of total revenue in 2022, 2023, and 2024, respectively [9]. Group 4: Investment and Use of Proceeds - The funds raised from the IPO will be allocated towards infrastructure investment, R&D for core platform software, and the development of emerging products, including enhancements in gaming AI capabilities [13].

Core Viewpoint - Haima Cloud is positioned as a leading provider of GPUaaS in China, focusing on real-time cloud rendering services for various industries, including gaming and digital entertainment, with a strategic plan for IPO in 2025 [2][3]. Group 1: Company Overview - Established in 2013, Haima Cloud is the first company in China to design and develop its own servers for real-time cloud rendering [2]. - Since 2019, the company has strategically deployed GPUaaS on a large scale, becoming the largest provider of real-time cloud rendering services in China [2]. - As of December 31, 2024, Haima Cloud serves nine out of the top ten market participants in China's cloud gaming industry and has partnerships with major players like China Mobile and leading game developers [2]. Group 2: Market Position - According to Zhaosheng Consulting, Haima Cloud ranks first among real-time cloud rendering service providers in China's cloud gaming sector, holding a market share of 17.9% based on 2024 revenue [3]. Group 3: Infrastructure and Expansion - Haima Cloud operates over 10,000 GPU servers and 63 high-performance GPU computing nodes globally, making it one of the largest and most widely distributed GPU computing infrastructures for real-time cloud rendering in China [4]. - The company has established computing nodes in countries such as Singapore and Vietnam, with ongoing deployments in the UK, France, Germany, Japan, South Korea, Australia, Poland, and Canada [4]. Group 4: Financial Performance - Revenue figures for Haima Cloud from 2022 to 2024 are as follows: CNY 290 million, CNY 337 million, and CNY 520 million, reflecting a compound annual growth rate (CAGR) of 33.8% [4]. - Gross profit for the same period was CNY 62 million, CNY 89 million, and CNY 129 million, with a CAGR of 44.9% [4]. - The gross margin percentages were 21.2%, 26.6%, and 24.9% for the years 2022, 2023, and 2024, respectively [4]. Group 5: IPO Fund Utilization - The net proceeds from the IPO will primarily be used for continuous infrastructure investment, funding R&D related to core platform software, developing and promoting emerging products, and supporting ongoing development of gaming AI capabilities [5].