Recently, Yidianyun (HK: 02416) announced its 2023 annual results for the year ended December 31, 2023. The financial report shows that the performance of Yidianyun in 2023 has declined to a certain extent. Among them, the adjusted net profit plummeted by about 90% year-on-year, staging a "performance bath".
Specifically, the revenue of Yidianyun in 2023 will be 1.271 billion yuan, a decrease of 7.4% from 1.372 billion yuan in 2022, the gross profit will be 552 million yuan, a decrease of 11.8% from 627 million yuan in 2022, and the total loss and comprehensive expenses for the year will be 901 million yuan, compared with 612 million yuan in the same period of 2022.
On a non-IFRS basis, the adjusted net profit in 2023 was RMB15.213 million, a decrease of 88.7% from RMB135 million in 2022, and the adjusted EBITDA was RMB566 million, a decrease of 14.2% from RMB660 million in 2022. From this point of view, the company's revenue and profit will both decline in 2023.
In terms of revenue composition, in 2023, the revenue from the integrated IT solution and equipment sales revenue of Epoint Cloud will decline. Among them, the subscription method of Epoint Cloud can be used to subscribe and unsubscribe to the integrated office IT solution including hardware and services according to their changing actual needs, a year-on-year decrease of 4.2%.
According to the financial report, the equipment subscription service revenue recognized as leasing revenue in 2023 according to IFRS 16 will be 1.061 billion yuan, accounting for about 83.5% of the total revenue, a decrease of 9.0% from 1.165 billion yuan in 2022, and the office IT technology subscription service revenue will be 55.087 million yuan, which will not be included in 2022.
In 2023, the equipment sales revenue of Yidianyun will be about 138 million yuan, a decrease of 28.4% from 193 million yuan in 2022, and the equipment as software (SaaS) and other revenue will be 16.592 million yuan, an increase of 25.0% from 13.269 million yuan in 2022, which is the only business growth of Yidianyun in 2023.
In its financial report, the group leased its own or leased computer equipment in a pay-as-you-go subscription manner, allowing customers to freely choose the subscription period (generally monthly subscription or up to three years) for a fixed monthly fee, but there was a termination penalty. Corporate customers are eligible for a subscription deposit waiver as long as they meet the required credit profile and pass the Group's internal risk assessment.
This means that most of the revenue of Epoint Cloud comes from the equipment subscription service revenue of the leasing model. In other words, Epoint Cloud is more like a company that is mainly engaged in leasing business. On May 25, 2023, E-Point Cloud was listed on the Hong Kong Stock Exchange with an issue price of HK$10.19 per share, positioning itself as a provider of integrated office IT solutions.
In particular, Yidianyun fell below the IPO issue price on the first day of listing. According to public information, the opening price of Yidianyun on the first day of listing on May 25 was HK$9.46 per share, down 7.16% from the issue price. In fact, the offering in Hong Kong was not fully subscribed.
In addition, the existing shareholders of Epoint Cloud also participated in the sale of shares. Based on the issue price (i.e. HK$10.19 per Offer Share), after taking into account the underwriting commission payable and estimated related expenses, Epoint Cloud estimates that the proceeds from the sale of shares to the selling shareholders under the Global Offering will be approximately HK$418 million.
According to the prospectus, the selling shareholders of Yidianyun include Tianjin Tongrun, City-Scape and Beijing Zaishun Yidian. Among them, Tianjin Tongrun will sell 15.114 million shares of Yidianyun, City-Scape will sell 23.9145 million shares, and Beijing Zaishun Yidian will sell 1.974 million shares.
According to the prospectus, Tianjin Tongrun is the investment company of Koala Fund, City-Scape is affiliated to the Singapore government investment company GIC, and Beijing Zai Shun Yi Point is the investment company of Hongtai Fund. In the equity structure before the listing of Yidianyun, Tianjin Tongrun held 10.40% of the shares, City-Scape held 8.49% of the shares, and Hongtai held 4.42% of the shares through Beijing Zaishun Yidian.
Based on the issue price, without deducting the underwriting commission payable by the selling shareholders and the estimated related expenses, the Koala Fund will "cash out" about HK$154 million, GIC will "cash out" about HK$244 million, and Hongtai Fund will "cash out" about HK$20,115,100.
Previously, Zhang Bin, co-founder and chief operating officer (COO) of Epoint Cloud, said at the time of listing, "The track of enterprise IT services is very long, and the ambition of our group of people does not want to stop there, we want to bring Epoint Cloud to a better and more desirable sea of stars." ”
However, in terms of the performance of the secondary market, Yidianyun has brought heavy losses to investors. As of the close of trading on April 5, 2024, the share price of Yidianyun closed at HK$2.73 per share, down 82.70% from the all-time high of HK$15.78 per share, and down 73.21% from the IPO issue price.
However, Yidianyun is also seeking new breakthroughs. On February 22, 2024, Yidianyun announced that it has entered into a strategic cooperation with Cigna Times, Microsoft's authorized distributor in China. According to the agreement, the two companies will form 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, on the basis of comprehensive strategic cooperation, the two parties can further flexibly adopt various cooperation modes such as product cooperation, project cooperation, and equity cooperation in the future.