According to the Hong Kong Stock Exchange on March 14, Bairong Yunchuang (Bairong Inc) heard through the main board of the HKEx, with Morgan Stanley, CICC and Min Bank Capital acting as co-sponsors.

Belong Yunchuang is China's leading independent AI technology platform, providing services for the financial services industry.

According to Frost Sullivan, the company is the largest independent financial big data analysis solution provider in China in terms of 2019 revenue (which has been included in precision marketing service income).

Belong Yunchuang has established expertise in analyzing consumers' financial and behavioral patterns, which can generate key data insights and enable financial services providers to improve their service efficiency and risk management capabilities.

As of September 30, 2020, the company has served more than 4200 financial service provider customers (including 2438 paid financial service provider customers) in China, including the vast majority of Chinese state-owned banks, more than 650 regional banks, the vast majority of Chinese consumer finance companies, more than 90 major insurance companies and a number of other financial service providers.

According to the prospectus, the total income for the three years ended December 31, 2019 and the nine months ended September 30, 2020 was 354 million yuan (RMB, the same below), 858 million yuan, 1.262 billion yuan and 764 million yuan. The losses during the period were 353 million yuan, 182 million yuan, 94.14 million yuan and 116 million yuan.

The total revenue recorded by Bailongyun in 2020 was 1.137 billion yuan, down 9.9% from the same period last year. In terms of revenue composition, data analysis service is still the revenue pillar of Belong Yunchuang, contributing 532 million yuan in 2020, an increase of 1.8% over the same period last year, accounting for 46.8% of total revenue. Precision marketing service revenue decreased from 405 million yuan in 2019 to 265 million yuan, a decrease of 34.7% year on year, and its share in total revenue also decreased from 32.1% to 23.3%. Insurance distribution services earned 338 million yuan, an increase of 1.9 percent over the same period last year.

According to Bairong Yunchuang, the COVID-19 epidemic had a negative impact on China's financial services industry in 2020, followed by a decline in the demand for big data analysis and precision marketing services from financial service providers. Bailong recorded a gross profit of 838 million yuan in 2020. The net loss expanded to 109 million yuan from 94.14 million yuan in 2019, and the loss increased by 15.8% compared with the same period last year. In 2020, Bairong Yunchuang's gross profit margin was 73.7%, down more than 3 percentage points from 77% in 2019.

It is worth mentioning that according to the previous prospectus, as of September 30, 2020, the loss in the first three quarters of Bailong reached 116 million yuan, which means that the performance of Bailong has improved in the fourth quarter, with a net profit of 7 million yuan.

Established in March 2014, Bairong Yunchuang is a financial technology application platform. The company insists on technology-driven, enabling digital innovation and transformation of financial institutions to help inclusive finance.

In the first half of 2019, Bairong Yunchuang completed 1 billion yuan C round financing, which was led by Guoxin Fund, and the old shareholder Sequoia Capital also made an additional investment.

Belong Yunchuang's data analysis products and cloud native solutions can help financial service provider customers optimize marketing and make smarter credit decisions. Its strong technology and leading service capabilities support a growing number of leading financial services providers, many of which are state-owned and regional banks, leading consumer finance companies, online lending platforms and large insurance companies.

The company's competitive advantage revolves around its proprietary and comprehensive data tag library, AI big data's analytical skills and agile product development capabilities. By accumulating proprietary data and working with third-party partners, Bairong has established one of the largest and most comprehensive databases covering a wide range of consumer data tags using financial and non-financial indicators.

In the early stage of business development, Belong Cloud Chuang relied on a number of data partners to provide it with a variety of necessary data tags to develop early algorithm-driven models and risk scoring products to meet customer risk management needs. As companies expand their product range, increase technology investment, and gain market share, they gradually build a data analysis ecosystem that enables them to accumulate rich data tags and enhance industry expertise by working with multiple external data partners and interacting with financial service provider customers.

Bailong Cloud's investment in technology has enabled it to develop a powerful intelligent cloud native technology platform to support product research and development and deliver products and services to customers.

The company's big data analysis engine helps financial service provider customers strengthen their decision-making, marketing and distribution. The data technology platform offers a variety of modular products that can be easily provisioned through standardized API and integrated into the customer's IT infrastructure and workflows.

At the same time, Belong Yunchuang can also integrate multiple modules and customized models to provide customers with customized end-to-end solutions. The cloud-based nature of the platform enables companies to quickly adapt and deliver products and services to meet the rapidly changing needs of financial service providers and to ensure the richness and diversity of data tags. The resulting data ecosystem enables companies to continuously expand their databases, consolidate their data processing and analysis capabilities, and help customers improve their decision-making capabilities.

In addition, with Belong Yunchuang's technology infrastructure, the company is able to organize and process a large number of data call requests from financial service providers while reducing operating costs. For example, they have the ability to process hundreds of millions of data analysis calls from financial service providers every hour. In 2019, Belong Yunchuang processed about 2.48 billion call requests from financial services providers, while in the nine months ended September 30, 2020, it processed about 3.14 billion call requests.