Core Viewpoint - Baishan Cloud Holdings Limited is reapplying for a mainboard listing on the Hong Kong Stock Exchange, marking a significant step in its journey as an independent edge cloud service provider amidst the global cloud computing landscape transformation [1][2]. Company Background - Established nearly a decade ago, Baishan Cloud has faced multiple challenges in its listing attempts, including a failed application for the Sci-Tech Innovation Board in 2020 and a lapsed application for the Hong Kong Stock Exchange in 2024 [2][5]. - The company is now returning with a clearer strategic direction, a more mature technology system, and a steadily growing global business footprint [2][4]. Market Position - According to a report by Zrac Consulting, Baishan Cloud is the second-largest independent edge cloud service provider in China, holding approximately 2.0% market share in 2024 [5][6]. - The company positions itself as a neutral service provider, avoiding direct competition with clients, which has helped build trust [6]. Financial Performance - Baishan Cloud's revenue figures from 2022 to 2024 were 2.132 billion, 2.391 billion, and 2.218 billion RMB, respectively, with a 7% decline in 2024 compared to 2023 and a 12.77% drop in the first half of 2025 [7][8]. - The company has been operating at a loss, with net losses of 1.933 billion, 0.927 billion, and 1.467 billion RMB from 2022 to 2024, and a net loss of 0.65 billion RMB in the first half of 2025 [8]. Business Structure Transformation - The company is shifting its business structure towards higher value-added services, with revenue from security and intelligent computing services increasing from 1.57 billion RMB (7.38% of total revenue) in 2022 to 5.17 billion RMB (23.3% of total revenue) in 2024 [9][10]. Global Expansion - As of June 30, 2025, Baishan Cloud has deployed over 1,500 global edge nodes across 290 cities in 60 countries, with a network bandwidth of approximately 93 Tbps [11]. - The company's overseas business has shown significant growth, with a compound annual growth rate of about 29.2% from 2022 to 2024, and overseas revenue accounting for 37.1% of total revenue in the first half of 2025 [13][14]. Opportunities in AI - The rise of AI applications and corresponding demand for edge computing presents new opportunities for Baishan Cloud, which has launched a "large model API" product to provide low-latency and stable services [15]. - The CEO emphasized the evolution of edge computing from "traffic nodes" to "intelligent computing units" as a core paradigm for next-generation AI infrastructure [15]. Industry Outlook - The global edge cloud service market is projected to grow from 549.8 billion RMB in 2024 to 1,458 billion RMB by 2029, with a compound annual growth rate of 21.5% [17]. - The Chinese market is expected to grow even faster, from 81 billion RMB in 2024 to 251.5 billion RMB by 2029, with a compound annual growth rate of 25.4% [18].

Group 1 - The gap in AI model and capital expenditure between Chinese and American internet companies is narrowing, with major global models led by OpenAI, Anthropic, Google, and Tesla, while Chinese companies like DeepSeek and Alibaba's Tongyi Qwen are emerging in the first tier [1] - The GPQA test results show that the top 25 models are primarily composed of OpenAI, Anthropic, Microsoft, Google, and Meta, with a low representation from Chinese companies; DeepSeek-V3/R1 is expected to disrupt the global AI landscape upon its release in late 2024 or early 2025, representing China's open-source model aligning with SOTA [1] Group 2 - Major tech companies are heavily investing in large model training, boosting their own computing power demand through training and inference; cloud providers are also offering large model APIs on their platforms, leading to increased external computing power supply [2] - Capital expenditure (CapEx) density for Microsoft, Google, Meta, and Amazon reached 34.8%, 23.3%, 35.8%, and 18.7% respectively in Q2 2025; Chinese internet giants like Baidu, Alibaba, and Tencent saw significant year-on-year increases in CapEx of 10.2%, 162.7%, and 319.1% to 2.3 billion, 31.8 billion, and 36.6 billion yuan respectively [2] - Chinese internet companies are accelerating their AI investments, although their CapEx as a percentage of revenue still lags behind that of overseas giants by about a year [2] Group 3 - Investment recommendations include Meituan, which has potential for valuation recovery; Kingdee International, benefiting from sustained growth in cloud business and subscription transformation; Lenovo Group, expected to enter a slow bull trend with AI PC product cycles; and Tencent Holdings, recommended as a long-term preference [2]