On May 29, 2024, Cloud Factory Technology Holdings Limited (hereinafter referred to as “Cloud Factory Technology”) from Wuxi, Jiangsu, disclosed the prospectus after the hearing on the Hong Kong Stock Exchange, or was listed on the Hong Kong Main Board soon. The forms were submitted on May 31, 2023 and December 5, 2023.
Link to the prospectus after the Yungongchang Technology hearing:
Main business
Cloud Factory Technology, founded in 2013, mainly develops, operates and provides IDC solution services. According to the Frost & Sullivan report, Cloud Factory Technology ranked 11th among operator-neutral service providers in the Internet data center industry in terms of revenue in 2022, with a market share of 0.6%.
Cloud Factory Technology has established a good relationship with major supplier A (one of the state-owned telecom operators). Its infrastructure support forms the backbone of the company's IDC solution services. It is estimated that the service fees paid by Shandong and Inner Mongolia ecosystem partners to this supplier account for 10% to 12%.
Cloud Factory Technology's business is spread across many regions of China, providing cross-regional IDC solutions in 19 provinces and 38 cities with relatively developed economies in China. During the track record period, the company recorded a total bandwidth usage of more than 316,508 gigabits per second.
Cloud Factory Technology is also an active contributor to the development of cross-regional edge computing networks in prefecture-level cities and administrative districts and counties in China. The company launched edge computing services under the company's Lingjing Cloud brand in 2022, and in 2023, the company signed 16 contracts for edge computing services with customers.
Cloud Factory Technology's revenue comes from three business segments: IDC Solution Services, Edge Computing Services, ICT Services, and Other Services.
IDC solution services include providing pre-contract consulting and feasibility advice stages, as well as services including the provision of hosting services and infrastructure management services.
Edge computing services, under the Lingjing Cloud brand, are an extended category of the company's IDC solution services, enabling customers and their customers to create, obtain and provide digital experiences. Edge computing services combine content delivery networks (CDNs) with features traditionally provided by hardware-centric devices (such as DDoS solutions) to bring computing power and logic as close as possible to end users.
ICT services and other services, including ICT services, SMS services, mobile phone package recharge services, and WeChat enterprise applet development services tailored for enterprise customers.
Shareholder structure
According to the prospectus, in the pre-listing shareholder structure of Yungongchang Technology,
Mr. Sun Tao holds 100% of the shares through Ru Yi IT.
Directors and Executives
The board of directors of Yungongchang Technology consists of 7 directors, including:
4 Executive Directors: Mr. Sun Tao (Chairman of the Board), Mr. Jiang Yanqiu (General Manager), Mr. Ji Lijun (Deputy General Manager), and Mr. Zhu Wentao (Deputy General Manager and Director of Lingjingyun Business Department);
Three independent non-executive directors: Mr. Ye Manlin, Mr. Cui Qi, and Ms. Zhao Hong.
In addition to the executive director, executives include Ms. Zhou Xin, Deputy General Manager of the Commercial Department (the spouse of Mr. Ji Lijun), and Ms. Wu Dan, financial manager.
Company performance
According to the prospectus, in the past 2021, 2022 and 2023, Yungongchang Technology's revenue was RMB 464 million, $549 million and RMB 696 million, respectively, and the corresponding net profit was RMB 126.85 million, 8.34 million and 142.24 million yuan, respectively.
Intermediary team
The intermediary team of Yungongchang Technology's IPO mainly consists of SPDB International as its sole sponsor; Ernst & Young as its auditor; Zhong Lun and Zhong Lun (Hong Kong) are the company's Chinese lawyers and the company's Hong Kong lawyers respectively; KWM and KWM (Hong Kong) are their respective Chinese lawyers and Hong Kong lawyers; and Frost Sullivan is the industry consultant.