Core Viewpoint - Baishan Cloud Holdings Limited has submitted a new listing application to the Hong Kong Stock Exchange, positioning itself as the second-largest independent edge cloud service provider in China by total revenue for 2024, with a market share of approximately 2.0% [2]. Financial Performance - Revenue projections for Baishan Cloud from 2022 to 2025 are as follows: CNY 2.132 billion in 2022, CNY 2.391 billion in 2023, CNY 2.218 billion in 2024, and CNY 963.9 million for the first half of 2025 [3][4]. - The adjusted net losses for the same periods are CNY 166.1 million, CNY 53.7 million, CNY 114.5 million, and CNY 54.6 million respectively, totaling approximately CNY 390 million [2][4]. - The compound annual growth rate (CAGR) of overseas business revenue from 2022 to 2024 is approximately 29.2% [2]. Cash Flow and Debt - The net cash flow from operating activities for Baishan Cloud is projected to be CNY 41.5 million in 2022, -CNY 235,000 in 2023, -CNY 148.2 million in 2024, and CNY 74.3 million for the first half of 2025 [5]. - As of the end of 2022, 2023, 2024, and mid-2025, the company reported net current liabilities of CNY 433 million, CNY 537 million, CNY 369 million, and CNY 450 million respectively [5]. Business Strategy - The funds raised from the listing will be used to expand the service network and product offerings, enhance research and development capabilities, and improve technical capabilities [6][7]. - The company plans to selectively pursue strategic investments and acquisition opportunities that complement its existing services and enhance its technological capabilities [7].

Core Viewpoint - Baishan Cloud Holdings Limited has submitted an updated listing application to the Hong Kong Stock Exchange, highlighting its position as a leading independent edge cloud service provider in China and its strategic focus on edge AI infrastructure [1][2]. Financial Performance - Baishan Cloud's total revenue for the years 2022, 2023, 2024, and the first half of 2025 is reported as 2.132 billion, 2.391 billion, 2.218 billion, and 964 million RMB respectively [1]. - The company's overseas revenue has shown significant growth, with figures of 390 million, 601 million, and 650 million RMB from 2022 to 2024, reflecting a compound annual growth rate of approximately 29.2% [5][6]. Market Position - According to a report by Zhaoshang Consulting, Baishan Cloud is the second-largest independent edge cloud service provider in China, with a market share of approximately 2.0% in the edge cloud service sector, which is projected to reach a market size of 81 billion RMB in 2024 [1][6]. - The company has established a strong presence in emerging markets, with overseas revenue accounting for over 30% of total income by the first half of 2025 [5][7]. Technological Advancements - Baishan Cloud has developed a global integrated edge cloud platform utilizing advanced technologies such as heterogeneous resource management, edge-native technology, and built-in edge security, which significantly enhance digital experiences for clients [1][4]. - The company has achieved a 30% increase in GPU utilization and a 100% improvement in model response speed through the adoption of open-source technologies in its edge AI inference services [4]. Strategic Focus - The company is transitioning from edge cloud services to edge AI infrastructure, with a notable increase in revenue contribution from its security and intelligent computing services, rising from 7.4% in 2022 to 31.9% in the first half of 2025 [2][3]. - Baishan Cloud aims to leverage its global distributed computing network and proprietary scheduling technology to enhance service delivery capabilities and optimize edge AI inference [2][3]. Global Expansion - Baishan Cloud has strategically expanded its operations to Southeast Asia, the Middle East, Central Asia, North Africa, and Latin America, establishing a significant market share in these regions [7][8]. - The company has set up over 1,500 global edge nodes across 290 cities in 60 countries, with a focus on localizing services to better connect with clients [7][8].

Core Insights - Baishan Cloud Technology, a leading edge cloud service provider from Guiyang, Guizhou, is seeking to list on the Hong Kong Stock Exchange after a previous failed attempt in December 2023 [1][10] - The company is recognized as the second largest independent edge cloud service provider in China, with a significant global presence [3][4] Company Overview - Established in April 2015, Baishan Cloud focuses on providing comprehensive edge cloud services, including network services, security, and intelligent computing [3] - The edge cloud architecture allows for localized data processing, enhancing response times and reducing bandwidth usage [3] Market Position - According to a report by Zhaoshang Consulting, Baishan Cloud holds approximately 2% market share in the edge cloud service sector in China for 2024 [3] - The global cloud service market is projected to grow from 2.18 trillion yuan in 2020 to 4.68 trillion yuan in 2024, with China's market expected to grow from 261.3 billion yuan to 625.4 billion yuan in the same period [4] Financial Performance - Baishan Cloud reported revenues of 2.13 billion yuan, 2.39 billion yuan, 2.22 billion yuan, and 964 million yuan for the years 2022, 2023, 2024, and the first half of 2025, respectively [7] - The company has incurred cumulative losses of 498 million yuan over the reporting period, indicating it has not yet achieved profitability [7] Service Offerings - The company's services are categorized into network services and security/intelligent computing services, with a growing focus on AI-driven applications [7][9] - The revenue from security and intelligent computing services has increased significantly, accounting for 31.9% of total revenue in the first half of 2025 [9] Global Expansion - Baishan Cloud has established over 1,500 global edge nodes across 290 cities in 60 countries, with a network bandwidth of approximately 93 Tbps [6] - The company has achieved a compound annual growth rate of about 29.2% in overseas revenue from 2022 to 2024, reflecting successful international expansion [6]

Core Viewpoint - Baishan Cloud Holdings Limited has submitted a new listing application to the Hong Kong Stock Exchange after nearly two years, but its financial performance has significantly deteriorated, with revenues declining and losses expanding [1][7]. Financial Performance - For the years 2024 and the first half of 2025, Baishan Cloud's revenue decreased by 7.22% and 12.77% year-on-year, respectively, while losses increased by 113.28% and 54.52% [1][16]. - The total net loss during the reporting period amounted to approximately 390 million yuan [1]. - The company's accounts receivable are high, accounting for over 70% of current assets, indicating a significant portion of working capital is tied up [1][20]. - As of June 30, 2025, Baishan Cloud's bank and other borrowings reached 400 million yuan, while cash and cash equivalents were only 80 million yuan, highlighting a severe liquidity risk [1][24]. Market Position - Baishan Cloud is the second-largest independent edge cloud service provider in China, with a market share of approximately 2.0% in 2024 [2][11]. - The company has not expanded its market share or the number of edge nodes in the past two years, raising questions about its core competitiveness [11][16]. Patent and Legal Issues - Baishan Cloud has been involved in multiple patent infringement lawsuits, including a notable 250 million yuan lawsuit against Wangsu Technology [4][6]. - The company has faced scrutiny from regulators for failing to disclose significant litigation in a timely manner [6][7]. Research and Development - Baishan Cloud exhibits a tendency to prioritize marketing over research and development, with R&D expenses significantly lower than sales expenses [18]. - The average salary for R&D personnel is approximately 18,300 yuan per month, while sales personnel earn an average of 67,500 yuan, indicating a disparity in investment in talent [18]. Accounts Receivable and Risk - As of June 30, 2025, accounts receivable and related items accounted for 89.86% of current assets, with a significant portion overdue [19][20]. - The provision for bad debts on accounts receivable is notably lower than that of peers, raising concerns about the adequacy of these provisions [21][23].

Core Viewpoint - Baishan Cloud Technology, a leading edge cloud service provider from Guiyang, Guizhou, is preparing for a public listing on the Hong Kong Stock Exchange after a previous failed attempt in December 2023, with CITIC Securities and Haitong International as joint sponsors [1][12]. Company Overview - Established in April 2015, Baishan Cloud is headquartered in Guiyang and focuses on providing comprehensive edge cloud services, including network services, security, and intelligent computing [3]. - The company is recognized as the second-largest independent edge cloud service provider in China by total revenue for 2024, with an estimated market share of approximately 2% [3]. Market Growth - The global cloud service market is projected to grow from 2.1798 trillion yuan in 2020 to 4.6796 trillion yuan in 2024, with a compound annual growth rate (CAGR) of 18.6% from 2024 to 2029 [4]. - In contrast, China's cloud service market is expected to expand from 261.3 billion yuan in 2020 to 625.4 billion yuan in 2024, with a higher CAGR of 22.3% during the same period [4]. Business Model and Services - Baishan Cloud offers high-speed, secure, and cost-effective digital experiences through its integrated edge cloud platform, which supports global connectivity and business transformation [5]. - The company has introduced edge intelligent computing cloud solutions to address the limitations of centralized GPU computing, optimizing services for edge AI inference [5]. Financial Performance - From 2022 to the first half of 2025, Baishan Cloud reported revenues of 2.132 billion yuan, 2.391 billion yuan, 2.218 billion yuan, and 964 million yuan, respectively, with cumulative losses amounting to 498 million yuan [9][10]. - The gross profit margins during this period were 9.1%, 12.5%, 8.8%, and 9.3%, indicating significant fluctuations [10]. Revenue Breakdown - The revenue from security and intelligent computing services has rapidly increased, accounting for 7.4%, 17.3%, 23.3%, and 31.9% of total revenue during the reporting period, highlighting a second growth driver for the company [11]. Global Expansion - Baishan Cloud has successfully expanded its global footprint, deploying over 1,500 edge nodes across 290 cities in 60 countries and regions, with a network bandwidth of approximately 93 Tbps [5][6].

Core Viewpoint - The Hong Kong Stock Exchange reported that during the week from October 13 to October 19, 9 companies submitted listing applications, 5 companies passed the hearing, 4 companies launched their IPOs, and 2 new stocks were listed [1]. Group 1: Companies Submitted Listing Applications - Hantian Technology (Xiamen) Co., Ltd. is a leader in the global silicon carbide (SiC) epitaxy industry, focusing on the R&D, mass production, and sales of SiC epitaxy chips, with a projected market share of over 30% in 2024 [2]. - Impression Co., Ltd. is a state-owned cultural tourism service enterprise, ranking eighth in China's cultural tourism performance market in 2024, with revenues of approximately 63.04 million yuan in 2022 [3]. - Guangzhou Yujian Noodle Restaurant Co., Ltd. is the fourth largest operator of Chinese noodle restaurants in China, with a market share of 0.5% in 2024 [4]. - Baishan Cloud Holdings Ltd. is the second largest independent edge cloud service provider in China, with a market share of approximately 2.0% in 2024 [5][6]. - Shouchuang Securities Co., Ltd. is a financial service provider with a strong asset management capability, ranking fifth in revenue growth among 42 A-share listed securities companies from 2022 to 2024 [7]. - Chongqing Qianli Technology Co., Ltd. focuses on AI and mobility solutions, with stable growth in automotive products [8]. - Nanjing Qingtian All Tax Information Technology Co., Ltd. is a leading digital service provider for cross-border enterprises, ranking first in the smart tax solution market in China with a market share of 1.7% in 2024 [9]. - Lakala Payment Co., Ltd. is a leading digital payment provider in Asia, with a market share of 9.4% in 2024 [10]. - Sichuan Xin Hehua Traditional Chinese Medicine Co., Ltd. is one of the largest suppliers of traditional Chinese medicine products in China, ranking second in the market with a 0.4% market share in 2024 [12]. Group 2: Companies Passed Hearing - Seres Group Co., Ltd. focuses on the research, manufacturing, and sales of new energy vehicles, achieving revenues of approximately 340.56 billion yuan in 2022 [13]. - Minglue Technology is a leading data intelligence application software company in China, with revenues of approximately 12.69 billion yuan in 2022 [14]. - Pony AI Inc. specializes in autonomous driving services, with a total operational area exceeding 2000 square kilometers [15]. - Ningbo Joyson Electronic Corp. is a global leader in smart automotive technology solutions, ranking second in China and fourth globally in smart cockpit domain control systems [16][17]. - WeRide Inc. is a pioneer in L4 autonomous driving, with operations in over 30 cities across 11 countries [18]. Group 3: Companies Launched IPOs - Yunji Technology launched its IPO with a subscription that was oversubscribed by 5677 times, raising approximately 189.1 billion HKD [19]. - Haixi New Drug's IPO was delayed for regulatory approval, with a price range of 69.88-86.40 HKD per share [20]. - Jushuitan's IPO was set at 30.60 HKD per share, with a total of 681.66 million shares offered [21]. - Guanghetong's IPO was priced between 19.88-21.5 HKD per share, with a total of approximately 135 million shares offered [21]. Group 4: Newly Listed Stocks - Xuan Bamboo Biotechnology was listed on October 15, 2025, with a closing price of 26.30 HKD per share, reflecting a gain of 126.72% [22]. - Yunji was listed on October 16, 2025, with a closing price of 120.5 HKD per share, reflecting a gain of 26.05% [24].

Core Viewpoint - Baishan Cloud Holdings Limited has submitted a listing application to the Hong Kong Stock Exchange, aiming to enhance its global presence after previously withdrawing its A-share application due to lengthy review processes [4]. Company Overview - Baishan Cloud was established in 2015 and provides a full suite of edge cloud services, including network, security, and computing services [4]. - The company manages a vast array of heterogeneous resources globally, deploying them closer to end-users to accelerate content delivery and enhance user experience [4]. - As of June 30, 2025, Baishan Cloud has deployed over 1,500 global edge nodes across more than 290 cities in 60 countries, with a network bandwidth of approximately 93 Tbps [5]. Market Position - According to a report by Zhaoshang Consulting, Baishan Cloud is the second-largest independent edge cloud service provider in China based on total revenue, with a market share of about 2.0% in 2024 [4]. Financial Performance - The company's revenue for the years 2022, 2023, and 2024, as well as for the first half of 2025, were approximately RMB 2.132 billion, RMB 2.391 billion, RMB 2.218 billion, and RMB 964 million respectively [6]. - Baishan Cloud reported a net loss of RMB 1.933 billion, RMB 0.927 billion, RMB 1.467 billion, and RMB 0.646 billion for the same periods [6]. - In the first half of 2025, the company's revenue decreased by 12.76% year-on-year, with losses widening from RMB 0.58 billion in the first half of 2024 to RMB 0.65 billion [7]. Customer Base - The company served approximately 1,340, 1,300, 1,270, and 880 paying customers in 2022, 2023, 2024, and the first half of 2025 respectively, with a focus on key clients [7].

Core Insights - Baishan Cloud Holdings Limited is planning to go public in Hong Kong after a previous failed attempt in 2023, marking its second IPO application since its establishment in 2015 [2][3] - The company specializes in providing comprehensive edge cloud services, including network services, security, and intelligent computing, aimed at enhancing digital experiences for enterprise clients [2][4] Business Overview - Baishan Cloud was founded in 2015 and offers a full suite of edge cloud services, focusing on high-speed, secure, and cost-effective digital experiences for enterprises and their end-users [2][4] - The company has developed a global integrated edge cloud platform utilizing proprietary technologies, including heterogeneous resource management and edge AI inference [4] Market Position - According to a report by Zr Insights, Baishan Cloud is the second-largest independent edge cloud service provider in China by total revenue as of 2024, with a market share of 2.0% [3] - The company has strategically expanded its operations to over 60 rapidly growing markets across Southeast Asia, the Middle East, Central Asia, North Africa, and Latin America [3] Financial Performance - The company's revenue for the years 2022, 2023, 2024, and the first half of 2025 was reported as RMB 2.132 billion, RMB 2.391 billion, RMB 2.218 billion, and RMB 964 million respectively, with corresponding net losses of RMB 193 million, RMB 93 million, RMB 146 million, and RMB 65 million [12][14] Shareholder Structure - The pre-IPO shareholder structure shows that Mr. Huo Tao holds a combined voting power of approximately 47.45% through various entities [8][9] Management Team - The board of directors consists of nine members, including four executive directors led by Mr. Huo Tao as the CEO, and three independent non-executive directors [11]

Core Viewpoint - The competitive landscape in the edge cloud service market is intensifying, as Baishan Cloud Technology Co., Ltd. approaches its IPO in Hong Kong. The disclosed financial data and operational conditions have raised concerns due to significant fluctuations in various financial metrics, including a drastic drop in net profit margin exceeding 100% [1] Business Focus - Baishan Cloud primarily provides edge cloud services, including network services, security, and intelligent computing services. Network services involve optimizing resource allocation to enhance service efficiency, while security and intelligent computing services offer data protection and smart computing support for clients [2] Payment Model - The company relies heavily on client payments, with payment terms typically ranging from 30 to 90 days post-billing. This dependency on timely payments poses a risk to cash flow, particularly if clients delay payments [3] Financial Performance - Revenue has shown significant volatility, with total revenue figures for 2022 to the first half of 2025 as follows: 2022: 2,132,462 thousand RMB, 2023: 2,390,511 thousand RMB (up 12.09% from 2022), 2024: 2,217,882 thousand RMB (down 7.22% from 2023), and 2025 H1: 963,905 thousand RMB. Notably, overseas revenue has increased significantly, with a 54.24% growth in 2023 compared to 2022 [4] - The company has reported continuous losses, with net profit figures as follows: 2022: -191,548 thousand RMB (-8.98% net margin), 2023: -93,145 thousand RMB (-3.89% net margin), 2024: -139,781 thousand RMB (-6.30% net margin), and 2025 H1: -62,027 thousand RMB (-6.43% net margin). The net profit margin has fluctuated dramatically, indicating concerns over profitability [5] - Gross margin has slightly decreased, with figures for 2022 to 2025 H1 as follows: 2022: 9.06%, 2023: 12.45%, 2024: 8.79%, and 2025 H1: 9.27%. The fluctuations suggest challenges in cost control, which may impact future profitability [6] Revenue Structure Changes - The revenue structure is shifting, with network services remaining dominant but declining in proportion. Security and intelligent computing services have seen rapid growth, with a 163% increase in 2023 compared to 2022, and a 68.28% increase in 2025 H1 compared to 2024 [7] Related Party Transactions - The company has related party transactions involving guarantees provided by directors, which may pose financial risks if issues arise with these related parties [8] Financial Challenges - The company faces a heavy debt burden, with bank and other borrowings amounting to 399,869 thousand RMB and lease liabilities of 31,908 thousand RMB as of June 30, 2025. Additionally, trade receivables have shown increasing impairment risks, which could pressure asset quality and cash flow [9] Competitive Positioning - The lack of comparative data in the prospectus makes it difficult for investors to assess Baishan Cloud's competitive position within the industry, complicating investment decisions [10] Customer and Supplier Concentration - Customer concentration has decreased, with the percentage of revenue from clients accounting for 10% or more of total revenue dropping from 63.65% in 2022 to 52.84% in 2025 H1. However, the lack of detailed disclosure regarding major suppliers raises concerns about supply stability [11] Management Stability - The company's ownership structure has remained stable, with management compensation showing some fluctuations. However, the absence of a clear incentive mechanism for management may affect long-term company performance [12] Overall Risks - Baishan Cloud faces multiple risks, including market competition, technological innovation, and regulatory compliance, which collectively increase uncertainty regarding its future development [14]

Group 1: TSMC (TSM) - TSMC's Q2 2025 total revenue reached NT$933.79 billion, a year-on-year increase of 38.6%, equivalent to US$30.1 billion, exceeding the company's guidance of US$28.8 billion[8] - Advanced process revenue contributed 74% of total revenue, with 3nm and 5nm processes accounting for 24% and 36% respectively[9] - The company raised its 2025 revenue growth forecast to 30% year-on-year, with a projected net profit of NT$16,043 billion for 2025, reflecting a compound annual growth rate (CAGR) of 38.3% over three years[11] Group 2: Cloud Factory Technology (2512) - Cloud Factory Technology's revenue is projected to grow at a CAGR of 15.1% from 2021 to 2024, with 2024 revenue expected to be NT$708 million, a year-on-year increase of 1.68%[14] - The company aims to leverage its IDC solutions and edge computing services, with the edge computing market in China expected to grow from NT$99.4 billion in 2024 to NT$310.2 billion by 2028, reflecting a CAGR of 33.8%[15] - The target price for Cloud Factory Technology is set at HK$7, representing a potential upside of 52.17% from the current price of HK$4.6[17] Group 3: Tencent (700) - Tencent's target price is set at HK$660, indicating a potential increase of 26.6% from the current price of HK$519[28] - The company is expected to maintain steady growth in its core business, with projected total revenue of RMB 728.3 billion for 2025, reflecting a year-on-year increase of 10.31%[30] - Tencent's advertising AI tools are evolving from a "toolset" to a "workflow platform," enhancing efficiency for small and medium-sized businesses[23]