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In the competition of technology companies in the field of cloud computing, Easy Point Cloud Co., Ltd. (hereinafter referred to as: Easy Point Cloud), as a technology giant that has just started, was listed on the main board of the Hong Kong Stock Exchange on May 25, 2023 (stock code "02416.HK"), becoming China's "No. 1 office cloud stock". Its issued market value is about 5.852 billion Hong Kong dollars, and the issue price is 10.19 Hong Kong dollars per share. On the opening day, Yidianyun reported HK$9.88, a decrease of 3.042%, and the Hong Kong stock market value was HK$5.674 billion.
According to the prospectus, Yidianyun was born in 2014 and mainly provides one-stop office IT services for small and medium-sized enterprises through subscription. Relying on its own remanufacturing technology and strong operational capabilities, Easy Point Cloud ranks among the top comprehensive solution providers in China. So what is remanufacturing technology? In short, it is a technology that can accurately repair computer failures, bring them to a new machine level and put them back into use. According to Frost & Sullivan's data, Easypoint Cloud has ranked first in China's office IT comprehensive solution industry, with a market share of 19.6% in terms of revenue, and its market share has exceeded the market share of the second to fifth companies. Sum.
An IPO rookie favored by capital
In this public offering of Easy Point Cloud, CEYUAN Investment of Chengdu High-tech Zone is the cornerstone investor. Easy Point Cloud has signed an agreement with it, and the cornerstone investor will subscribe for $19.97 million of Easy Point Cloud's offering shares after the conditions are met. If the offer price is HK$11.00 per share, the number of offer shares it will subscribe for will be 14,248,500 shares.
At present, Yidianyun has 1,115,468 subscription devices and 43,313 active customers. The total number of active customers and the number of service devices of Easy Point Cloud will gradually increase from 2019 to 2020. The total number of active customers in the two years is approximately 22,100 and 28,700, and the number of service devices is approximately 590,000 and 798,000.
In terms of finance, the data of Yidianyun is also rising rapidly. In 2020, 2021, and 2022, its revenue performance will be RMB 813 million, RMB 1.184 billion, and RMB 1.372 billion, respectively. At the same time, the gross profit is also increasing year by year, from 337 million yuan to 565 million yuan, and then to 627 million yuan. During this period, the gross profit margin remained at a relatively high level, respectively 41.4%, 47.7% and 45.7%, showing an upward trend as a whole. In terms of net profit, the results of -88 million, -348 million and -612 million were respectively recorded in the past three years.
Specifically, Yidianyun's business segment income can be said to be distinct. The core business of Easypoint Cloud mainly consists of three parts:
1. Office IT service as you use it: that is, the company purchases/rents computers from upstream suppliers, and then leases these computers to downstream corporate customers (including post-repair and maintenance of equipment) at a subscription fee.
2. Sales of equipment: Provide a series of hosting services around hardware equipment, including equipment configuration, operation and maintenance support, data optimization backup, etc.
3. SaaS and other services: Through SaaS product inventory, it helps corporate customers manage assets and inventory from asset procurement and storage to use and disposal.
The main source of revenue in 2022 is the comprehensive office IT solution that can be used and returned. This business accounts for 84.9% of the total revenue, while the sales business contributes 14.1% of the revenue, and SaaS and other services contribute 1%. income. In terms of equipment sales, Easypoint Cloud sold a part of IT equipment after the end of the lease. Specifically, the number of IT equipment sold in 2020, 2021, and 2022 is 13,956, 15,227, and 16,225 units, respectively, and these devices account for 1.8%, 1.4%, and 1.5% of the total number of equipment subscriptions in the corresponding years. During this period, the average selling prices of Yidianyun devices were RMB 1,568, RMB 1,573 and RMB 1,032, respectively.
This IPO Yidianyun raised a net proceeds of approximately HK$97 million. They plan that in the next three years, the company intends to use about 40.0% of the net proceeds to improve the company's sales and marketing capabilities, expand the company's service network, and increase brand awareness; about 30.0% of the funds will be used to optimize and expand Service content, to meet the increasingly diverse needs of customers, while upgrading technical infrastructure to improve service quality; in addition, about 20.0% of the funds will be invested in upgrading remanufacturing capabilities to improve operational efficiency and save labor costs; finally, the remaining about 10.0% of the funds will be used for working capital and general corporate purposes of the company.
E-Point Cloud has gone through 8 rounds of financing before this IPO hit, including 3 rounds of investment by Hongtai, 2 rounds of investment by Kaola Fund, 5 consecutive rounds of investment by Matrix Partners China, 5 consecutive rounds of investment by Shunwei Capital, and 3 consecutive rounds of investment by Source Code Capital Investment, two rounds of investment by GIC of Singapore Investment Company, two rounds of investment by Yunshi Capital, one round of investment by Yifeng Capital, and one round of investment by Zhongguancun Zhongnuo Investment, etc., with a total financing of 1.426 billion yuan. In its capital composition, Source Code Capital accounts for 21.88%, Jingwei China holds 13.91%, Shunwei Capital holds 11.11%, Kaola Fund holds 10.4%, GIC holds 8.49%, and Hongtai holds 4.42%.
It can be said that Yidianyun has thrived under the escort of many big names in the industry.
Among them, Hongtai Fund is a leading domestic VC investment institution with a scale of over 30 billion. It was co-founded by Yu Minhong, the founder of New Oriental, and Sheng Xitai, the first chairman of Huatai United Securities; Matrix is one of the oldest venture capital funds in the United States. Investment and KPCB are equally famous, and have supported successful companies such as Apple Computer; behind Shunwei Capital is Lei Jun, the founder of Xiaomi Technology.
From Easypoint Rent to Easypoint Cloud
The predecessor of Yidianyun was Yidianzu, which started with the rental of second-hand computers, and rented out second-hand computers to start-up companies after repairing and refurbishing them. With the continuous expansion of scale, the business scope of Easypoint Cloud has also changed. It is no longer satisfied with providing computer rental services, but has begun to provide enterprises with a full range of one-stop office IT services, introducing "office cloud" concept, and thus changed the name of the company from "Easy Rent" to "Easy Cloud". Easy Point Cloud is also the founder of the concept of "office cloud". Zhang Peng, CEO of Easy Point Cloud, explained the company's transformation concept in an interview.
He compared "office cloud" with "public cloud" and explained: "Enterprise IT computing power is divided into server computing power and PC computing power. Server computing power mainly serves external customers of the enterprise, while PC computing power serves Internal employees of the enterprise. When an enterprise purchases a virtual server service, the cloud service provider builds a computing power pool with the server computing power as the core, and maximizes the use of the computing power pool through the software system, which is called "public cloud". When serving physical PC terminals, cloud service providers build computing power pools with PC terminal computing power as the core, and maximize the use of computing power through software systems and remanufacturing factories, which is called 'office cloud'."
As a supplier of comprehensive office IT solutions based on PC equipment, the development prospect of Easypoint Cloud may depend more on the scale of equipment. Although the market is vast, facing the pressure of the capital market and the challenges of industry profitability, Easy Point Cloud needs to find a way to reduce costs after listing to stabilize investor confidence. In particular, office equipment leasing is an asset-heavy business model, which means that Easypoint Cloud needs to deposit a large amount of funds. How to transition from an asset-heavy model to an asset-light model, EasyPointCloud still faces a long road of exploration.
Text: Mikoyan / Data Ape
