Produced by | Bullet Finance
Author | Wang Yajing
Edit | Egg total
American Editor | Qianqian
Audit | Ode
After landing on the Hong Kong stocks, Yidianyun (02416. HK) has finally released its first annual financial report.
In 2023, the company will achieve revenue of 1.271 billion yuan, down 7.4% year-on-year, a loss of 901 million yuan for the year, an increase of 47.3% year-on-year, and an adjusted net profit of 15.213 million yuan, down 88.7% year-on-year.
(Photo / Yidianyun financial report)
In the capital market, the speed of the slide of Yidianyun is not far behind. Wind data shows that as of April 5, Yidianyun closed at HK$2.73 per share, down more than 80% from its peak.
It is difficult to associate such a performance with the "halo" of the company. When it landed on the Hong Kong Stock Exchange, Yidianyun was known as the "first share of office cloud", and behind it were Lei Jun's Shunwei Capital, Yu Minhong's Hongtai Fund and other investors.
Zhang Bin, co-founder and chief operating officer of Yidianyun, once said in his listing speech: "The track of enterprise IT services is very long, and the ambition of our group of people does not want to stop here, we want to bring Yidianyun to a better and more desirable sea of stars." ”
Unexpectedly, in the first year of listing, Yidianyun not only did not run to the "sea of stars", but directly encountered "Waterloo".
Wind data shows that Yidianyun's revenue has maintained a growth trend from 2020 to 2022, and it will directly "change face" in 2023 and move into a downward channel. Not only that, in 2023, the company's net profit loss will reach the highest value in the past five years.
In just one year, why did Yidianyun fall to this?
1. The performance "changed face", and the adjusted net profit plummeted by more than 8%.
After the close of trading on March 28, Yidianyun released its 2023 financial report.
In May 2023, Yidianyun officially landed on the Hong Kong Stock Exchange, which also means that this financial report is the first annual financial report handed over by the company after its listing.
In this extremely important financial report, Yi Dianyun directly staged a "face change show".
The financial report shows that in 2023, the company will achieve revenue of 1.271 billion yuan, a year-on-year decrease of 7.37%, which is very different from the performance before listing.
(Photo / Wind (unit: 100 million yuan))
Wind data shows that from 2020 to 2022, the revenue growth rate of Yidianyun will be 28.58%, 45.57%, and 15.89% respectively, and it has maintained growth.
Behind the decline in revenue is the comprehensive obstruction of the pillar business of Yidianyun.
In 2023, the revenue of on-demand office IT integrated solutions, which contribute more than 8% of the revenue, will be 1.116 billion yuan, a year-on-year decrease of 4.2%. In this regard, Yi Dianyun explained that mainly due to the poor overall economic situation, the operation of small and medium-sized enterprises is under pressure, and they have chosen older equipment.
(Photo / Yidianyun financial report)
At the same time, due to the decrease in equipment sales, the company's equipment sales revenue in 2023 fell by 28.4% year-on-year to 138 million yuan.
After the revenue dropped, the loss of Yidianyun also reached a new height.
In 2023, the company's annual loss was 901 million yuan, an increase of 47.3% compared with 2022, and the adjusted net profit (non-IFRS measure) also changed its growth trend, falling 88.7% year-on-year to 15.213 million yuan.
(Photo / Wind (unit: 100 million yuan))
If you look at this performance on the timeline, it is not difficult to find that since the disclosure of the financial data in 2019, the loss in 2023 has reached a record high.
Wind data shows that from 2019 to 2022, the company's annual losses were 255 million yuan, 88 million yuan, 348 million yuan, and 612 million yuan respectively.
In the first "final exam" after listing, the report card handed over by Yidianyun was really unsatisfactory.
2. Cash flow is precarious, and financing costs remain high
Compared with the decline in revenue and profits, what Yidianyun needs to solve more urgently is the dilemma of the capital chain.
Previously, at the time of the Hong Kong stock IPO, the net amount of funds raised by Yidianyun was about HK $97 million. These funds may only be regarded as a "drop in the bucket" for Yidianyun, which is extremely thirsty for cash flow, and the cash flow pressure it faces should not be underestimated.
According to the financial report, as of December 31, 2023, the company's cash and cash equivalents were 490 million yuan, and short-term borrowings have been as high as 852 million yuan, even if the company's secured bank deposits, time deposits and restricted cash of 37.513 million yuan are added, the liquidity cannot cover the short-term borrowings.
(Photo / Yidianyun financial report)
In addition, Yidianyun also has long-term loans of 668 million yuan, and a total of more than 1.5 billion yuan of loans is already a big mountain on Yidianyun.
Not only that, but the high amount of borrowing has also brought a heavy interest burden to Yidianyun, because the financing cost of enterprises has been high.
According to the financial report, in 2023, the average financing cost ratio of Yidianyun will reach 8.1%, which is lower than 9.4% in 2022, but it is still far from the current LPR (loan prime rate) data.
(Photo / Yidianyun financial report)
The National Interbank Lending Center authorized by the People's Bank of China announced that the LPR on March 20, 2024 was 3.45% for 1-year LPR and 3.95% for LPR over 5 years, both unchanged from the previous month.
If calculated in this way, the financing cost of Yidianyun is as much as twice that of LPR.
In addition to the high interest rate on borrowing, the accumulation of debt has also increased the debt ratio of enterprises.
As at 31 December 2023, the gearing ratio (calculated by dividing the total amount of borrowings, lease liabilities and bonds payable by total equity) was 150.7%.
Generally speaking, the higher the debt-to-capital ratio, the more the company relies on interest-bearing liabilities such as loans or corporate bonds to raise funds, and the greater the debt pressure faced by the company.
On the other hand, why the financing cost of Yidianyun is so high can also be seen from this.
3. The stock price plummeted by 8 percent, is there any play in betting on AI?
In fact, the establishment time of Yidianyun is not long.
In 2014, Ji Pengcheng and his wife Chen Dan established Beijing Yidiantao, a major subsidiary of Yidianyun. In September 2015, Zhang Bin acquired 33.33% of Ji Pengcheng and 100% of Chen Dan's shares and entered Beijing Yidiantao.
(Photo / Yidianyun prospectus)
After that, Yidianyun attracted many investors to join. Before the IPO, Yidianyun received a total of eight rounds of financing, with investors including Hongtai Fund, Shunwei Capital, Koala Fund, Source Code Capital, GIC, etc.
Among them, Hongtai Fund has joined in the angel round of Yidianyun, and has continued to increase its weight in the B and C rounds of financing, Shunwei Capital has invested from Series A to Series C, and Source Code Capital has invested in three rounds, making it the largest external investment institution.
(Photo / Yidianyun prospectus)
And these investors are not small. It is understood that Hongtai Fund was co-founded by Yu Minhong and Sheng Xitai, former chairman of Huatai United Securities, behind Shunwei Capital is Lei Jun, founder of Xiaomi Group, and Source Code Capital has also attracted ByteDance founder Zhang Yiming, Meituan founder Wang Xing, ideal founder Li Xiang and other capital bigwigs to join.
Such a strong investor did not stop the company's stock price from "collapsing" down. On May 25, 2023, Yidianyun landed on the Hong Kong Stock Exchange with an offer price of HK$10.19 per share, which rose to a peak of HK$15.78 per share shortly after listing, and as of the close of trading on April 5 this year, the stock price was only HK$2.73 per share, and the stock price had fallen by more than 80%.
According to the regulations, the lock-up period of the shares held by the investor is 6 months after listing. This also means that November 2023 is the release period for these stocks. If these investors sell their shares and leave the market, the stock prices of companies will inevitably come under pressure.
(Photo / Yidianyun prospectus)
Whether it is the stock price or the performance, there is an urgent need for Yidianyun to inject more confidence. As a result, Yidianyun set its sights on AI.
In the financial report, Epoint Cloud made it clear that it will further develop the new business of AI. In February 2024, the company entered into a strategic cooperation with Cigna, Microsoft's authorized distributor in China, and formed a comprehensive strategic cooperation on the market expansion of Microsoft's Azure OpenAI product matrix and solutions authorized by Cigna Times according to the agreement.
At present, based on Microsoft Azure OpenAI GPT products, Yidianyun has created a GPT+ product that is more suitable for small and medium-sized enterprises through technology expansion and upgrading, but how much benefit this product has brought has not been talked about.
It is true that since the birth of ChatGPT, the AI track has been extremely hot, and there are countless companies that have attracted it. However, as we all know, the development of AI has not yet formed a complete closed loop, and "burning money" and difficulty in making profits are the biggest characteristics of this industry, and capital is one of the biggest shortcomings of Yidianyun.
Next, if you want to go long-term, Yidianyun must not only tell a good "new story", but also improve its performance in a down-to-earth manner.
*The title image in the article comes from: Camera.com, based on VRF protocol.