Technology Editor: Xu Jiu! Report from Xiaomi Technology Park on SegmentFault
On the evening of May 8, domestic time, China’s well-known independent cloud service provider, Jinshan Cloud, went public on Nasdaq in the United States, officially entering the capital market. But because of the outbreak, this launch is a little different — using cloud bells (online video). Since then, Jinshan Cloud has officially become a U.S. stock market and issued shares. Code KC, IPO priced at $17 /ADS.
In addition to being the first “cloud bell” listed company, Jinshan Cloud is also the only pure cloud service provider in China in the US stock market.
Jinshanyun was founded in 2012. In 2014, Lei Jun, chairman of Kingsoft Group, chairman of Jinshan Cloud, founder, chairman and CEO of Xiaomi Group, announced the All in Cloud strategy.
Up to now, relying on a wide range of cloud infrastructure and providing advanced and reliable cloud services, Jinshan Cloud has customized well-structured solutions for various industries. According to Frost and Sullivan, Jinshan Cloud is the third largest Internet cloud service provider in China, with a market share of 5.4 percent in 2019 based on IaaS and PaaS service revenue.
With 5G, industrial Internet, AIOT and mixed reality generating new market space and business opportunities around the world, Jinshan Cloud focuses on technology and continues to innovate while accelerating the layout of emerging industries. According to the official release of Jinshanyun, the fund will be raised $510 million and used for the following purposes:
1) Further invest in technology and product development, including in areas such as artificial intelligence, big data and cloud technology
2) Further invest in upgrading and expanding our infrastructure (approximately 60% of raised funds combined with the first point)
3) To fund the expansion of our ecosystem and international reach
4) To replenish our working capital for general purposes
Judging from these directions, Jinshan Cloud may bet heavily on the core areas of new infrastructure.
Lei Jun, chairman of Jinshanyun, said in a media interview before the bell rang:
“Jinshan Cloud is a company with a sense of mission that adheres to the principle of ‘technology-driven’. The successful listing of Jinshan Cloud in the US stock market is a reflection of the value of Chinese cloud computing enterprises and also represents rational investors’ expectation for a good company with transparent information and proven information. This is a small step for Chinese cloud computing companies to step into the international market, and it will also provide confidence for more companies that adhere to value creation to step into the US capital market.”
Niu Kui-kwong, a partner at IDG Capital, said:
“We are optimistic about Jinshan Cloud for the following reasons. First of all, the growth rate of Jinshan Cloud’s own business and the whole cloud service market is very fast. Cloud service is the inevitable choice for the upgrading of traditional IT of enterprises in the future. In addition, Jinshan Cloud has excellent enterprise service genes, and has an experienced and technology-leading team. The core members of the technical team are all experienced in IT infrastructure construction and management of China’s super large Internet companies. Therefore, Jinshan Cloud is the top project of independent cloud service providers in China that external investment institutions can invest in.”
As cloud computing is one of the most potential vertical fields in the enterprise service market, IDG Capital started a comprehensive layout as early as 2013. At the same time, IDG Capital is also an early investor of SegmentFault. In addition, IDG Capital has also invested in developers such as Kujiele (cloud design platform), Cloud Test (mobile application testing cloud service), Instant Structure (real-time voice and video cloud service) and cloud service companies.
According to the prospectus of Jinshan Cloud, Kingsoft holds 53.8% of Jinshan Cloud’s shares and is the controlling shareholder of the company. Xiaomi Group has participated in the historical financing of Jinshan Cloud and holds 15.8% equity. Futurex Capital’s fund holds 5.7 per cent.
At the same time, Lei Jun is also the chairman and actual controller of Kingsoft Software and Xiaomi, and Lei Jun is actually the actual controller of Jinshan Cloud. If Jinshan Cloud succeeds in going public, it will become the fourth listed company that Lei Jun personally controls after Xiaomi Group, Kingsoft Software and Kingsoft Office.