Another China concept stock announced that it would go to Hong Kong for secondary listing.
Jinshanyun said on its official website that in order to provide greater liquidity and protection for shareholders in the changing market and regulatory environment, the company is exploring the dual listing of its common shares on the main board of the Hong Kong stock exchange.
As of the closing on March 15, Jinshan cloud’s share price was $3.21. Although the share price rose by more than 20% on the same day, it still fell by more than 80% compared with the issue price of $17. “Despite recent fluctuations in our share price, our business operations are still normal and uninterrupted,” Jinshan cloud said
The reporter of the science and Innovation Board daily learned from a number of jinshanyun employees that jinshanyun needs to realize the stable development of turning loss into profit as soon as possible due to the continuous loss and stock decline. Listing in Hong Kong will help ease the company’s tension in business development.
cost reduction and efficiency increase
Since 2021, Internet companies have started a wave of layoffs. Jinshan cloud also ranks among them. The reporter of the science and Innovation Board daily learned that the layoffs involved Jinshan cloud’s market, legal affairs, medical treatment, digital health, intelligent transportation and other departments, with different proportions in different departments.
“Many unprofitable and abandoned departments have been cut down, such as cloud communication and intelligent transportation have almost disappeared. Many functional departments such as marketing center and legal affairs have also laid off people, accounting for 30-60% ; others may be about 10%.”
To the dissatisfaction of some ordinary employees, this round of layoffs is not in accordance with the performance standards: “some departments have left middle-level cadres or related households and expelled grass-roots workers.”
More employees pointed out that the internal management problems of Jinshan cloud have existed for a long time.
“Jinshan cloud is famous for its numerous hills, various internal friction and standing in line. company often greatly adjusts its structure, once every six months and once for half a year. It keeps trying and making mistakes . I don’t know what I really want. Some professional managers are thinking about cashing out after making money and don’t really care about the development of the company.”
relying on CDN to support revenue
Behind the downsizing of Jinshan cloud is that its phenomenon of “increasing income without increasing profit” continues.
The year-on-year net profit of Jinshan was 38.65 billion yuan, a year-on-year increase of – 3.95% compared with that of Jinshan; The net profit margin of sales was – 20.99%, a year-on-year decrease of 244.66%; The gross profit margin was 3.66%, a year-on-year decrease of 43.95%;
An employee told the reporter that Jinshan cloud relies on CDN to support its revenue all the year round, and the meager profit of this part of business is also one of the reasons for the loss .
Some insiders believe that Jinshan cloud relies on the development of Jinshan system and Xiaomi, and its independence is relatively poor . As mentioned in the prospectus of Jinshan cloud, there were 243 senior customers in 2019, with an average revenue of 15.9 million yuan per senior customer, mainly including Xiaomi and Jinshan, including Xiaomi, Beijing Kingsoft Office Software Inc(688111) , cheetah and Xishanju.
Some employees expressed pessimism about the company’s future: “there is no Jinshan cloud in the top five of the cloud computing market. The giant eats meat, and it may drink some soup at most. It may be further marginalized in the future. I’m afraid it wouldn’t have been possible if it wasn’t supported by Lei.”
went to Hong Kong to raise funds to kill the top five in the market
According to IDC’s public cloud report, Jinshan cloud has fallen out of the top five in the market since 2019 and has been classified as “other manufacturers” since then.
In cloud computing, an industry with significant scale effect, the gap between head enterprises and tail enterprises is gradually widening due to Matthew effect.
Sinolink Securities Co.Ltd(600109) once pointed out that the public cloud industry has high technical barriers and requires huge capital expenditure and R & D investment. For Alibaba and other leading enterprises, opening computing capacity will not incur additional costs, and the scale effect is significant.
An analyst believes that cloud computing is a typical heavy asset operation mode, that is, the more customers, the lower the marginal cost. It is generally difficult to make profits before commercialization reaches economies of scale.
In recent years, head cloud computing manufacturers have fought a price war with financial advantages, which has further squeezed the space of small and medium-sized cloud manufacturers.
Tencent cloud 0.01 won the bid for Xiamen government cloud, Huawei cloud 0 yuan won the bid for Shijiazhuang Beiguo electronic public cloud project, and China Telecom Corporation Limited(601728) 001 yuan won the bid for Liaoyang government cloud, which has triggered heated discussions in the cloud computing industry. Small and medium-sized cloud manufacturers such as Jinshan cloud are difficult to win the price war with giants in terms of resources and financial strength.
At present, the vertical industry has become a new breakthrough direction of Jinshan cloud Jinshan cloud, which started with game cloud and video cloud, is transforming into a vertical industry and deeply cultivating the fields of finance, medical treatment and public services . Q3 financial report shows that the revenue from the industry cloud is 727 million yuan, a year-on-year increase of 77.7%.
Another major breakthrough point is the “neutral” advantage. Jinshan cloud has repeatedly stressed that it will remain neutral and will not pose a threat to the customer’s business. A cloud manufacturer once told reporters that “neutrality” is the competitiveness of small and medium-sized cloud manufacturers compared with internet giants. Since they are not engaged in the business of downstream customers, they will not have a competitive relationship with customers.
Although the market opportunities are still there, the time left for these second tier manufacturers is really running out how to further build business competitiveness, boost team morale and further expand market scale are the difficulties facing Jinshan cloud
