Bairong Yunchuang successfully listed: Deeply cultivating AI and other digital technologies become the technological engine for the digitization transformation of financial services.

On March 31, China's leading independent ai technology platform, Airborne Cloud Creation, was listed on the Hong Kong Stock Exchange (stock code: 6608.HK) with a public offering oversubscribed by 150 times. Airborne Cloud Creation is also the fourth company to adopt a weighted voting rights structure as its main listing location in Hong Kong, following Meituan, Xiaomi, and Kuaishou.

According to public information, Airborne Cloud Creation, established in 2014, is China's leading independent ai technology platform. Leveraging the products and services provided by the cloud-native saas platform, Airborne Cloud Creation can be embedded in the business processes of financial institutions from customer acquisition, loan initiation, insurance underwriting, existing customer operations to post-loan management, providing intelligent decision-making support to financial institutions.

Build asia vets, data analysis capabilities.

Help financial institutions with digitization transformation.

It is explicitly stated in the "14th Five-Year Plan for National Economic and Social Development and Vision 2035 of the People's Republic of China" passed at this year's Two Sessions that the core technology security and controllability of informationization in the financial industry will be promoted to maintain the security of financial infrastructure.

In fact, in recent years, new technologies such as ai, cloud computing, and big data have been widely used in various aspects of financial services, promoting the transformation and upgrading of the financial industry towards online, digital, and intelligent, ensuring the security of financial infrastructure. At the same time, with the comprehensive acceleration of the construction of the digital economy and financial "new infrastructure", there is a growing trend towards the diversification of the main entities in the financial technology market and cooperation, as well as the increasing emphasis on the underlying technology and independent innovation capabilities of financial technology. Traditional financial institutions will also accelerate their transformation in the digitization of technology.

In this process, Baorong Cloud Creation, which focuses on the layout of digital technology, based on a deep understanding of technologies such as artificial intelligence, cloud computing, big data, and financial business, provides comprehensive risk control and marketing empowerment through technology output, quickly solidifying and enhancing the digital transformation capability of financial institutions themselves.

According to the prospectus, the company has built comprehensive AI and data analysis capabilities, along with powerful cloud computing technology and agile product development capabilities, establishing solid core competitive barriers in the industry.

Among them, the company's independently developed cloud-native technology platform offers a variety of modular products, which are skillfully deployed and integrated into customers' IT infrastructure and workflows through standardized APIs, generating visible recurring revenue. At the same time, the platform can also combine multiple modules for independent or combined subscriptions, generating customized end-to-end solutions and reducing IT or system development costs.

The cloud-native nature of the platform enables Baorong Cloud Creation to quickly adapt and deliver products and services, greatly enhancing customer stickiness. Licensed financial institutions contributing annual revenue exceeding RMB 0.3 million are the company's core customers. The number of these customers increased from 62 in 2017 to 237 in 2020. Additionally, due to the subscription-based SaaS payment model, core customers exhibit high stickiness, with the company's core customer retention rate increasing from 89% in 2019 to 96% in 2020.

With the expansion of product range and increased technological investment, Bai Rong Yun Chuang also has a large customer base, providing support to an increasing number of leading financial institutions. As of September 30, 2020, Bai Rong Yun Chuang has served more than 4,200 financial service provider customers in China, including the majority of state-owned banks, over 650 regional banks, most consumer finance companies, more than 90 major insurance companies, and many other financial institutions.

According to disclosures, the proceeds from Bai Rong Yun Chuang's IPO will mainly be used to further enhance product functionality and performance; continuously strengthen R&D investment, explore cutting-edge technologies, improve existing technology infrastructure; expand existing product and service supplies, and engage in strategic investments and acquisitions.

Bai Rong Yun Chuang told Securities Daily reporters that it will continue to maintain a reliable, secure, efficient, and scalable technical infrastructure, continuously enhance the company's AI technology and data analytics capabilities, continuously improve the capabilities and innovation of products and services, to consolidate the company's technological advantages and market leadership position, dedicated to building a leading financial SaaS cloud platform. It will continue to deepen the application of artificial intelligence and big data in the financial sector, help financial institutions in the post-epidemic era digital transformation, and reshape the industry ecosystem.

Profit soared in the fourth quarter of last year.

The future development trend is promising.

According to reports, Bai Rong Cloud's performance has steadily increased, achieving a three and a half times increase in three years. The prospectus shows that Bai Rong Cloud's revenue in 2017, 2018, and 2019 were 0.354 billion yuan, 0.858 billion yuan, and 1.262 billion yuan respectively.

Bai Rong Cloud stated to a journalist from Securities Daily that the rapid revenue growth is mainly due to the company's efficient and scalable business model. The company's proprietary and independently developed cloud-native platform offers a variety of analytical products and services that can be embedded in the business processes of financial services providers, from customer acquisition, loan origination or insurance underwriting, to customer management and post-loan management, empowering the decision-making process of financial institution clients. "This makes it easier for us to establish long-term relationships with customers. As a result, we have established enduring partnerships with customers, and our products and services have built-in recurring elements that can help us achieve significant operational leverage and higher revenue visibility, thereby generating recurring revenues and stable cash flows."

According to reports, the COVID-19 epidemic in 2020 had a negative impact on China's financial services industry, indirectly affecting the business and finances of Bai Rong Cloud. As of September 30, 2020, the company achieved revenue of 0.764 billion yuan, a 17.1% year-on-year decrease, but with the easing of the epidemic, the company's business rebounded rapidly in the fourth quarter of 2020, with annual revenue reaching 1.136 billion yuan, narrowing the year-on-year decline to 9.9%. The financial condition continues to improve, and with the further recovery of the economy, performance is witnessing a strong rebound, with promising future growth.

At the same time, in terms of adjusted net income, the leading growth trend of Bai Rong Yun Chuang is also evident. Data shows that the adjusted net income, excluding non-operating factors such as share-based payments, fair value changes of preferred shares, fair value changes of convertible loans, and listing expenses, for Bai Rong Yun Chuang in 2017-2020 were approximately -83.2 million yuan, -1.6 million yuan, 13.1 million yuan, and 80 million yuan, respectively. After experiencing rapid reduced losses in 2018, Bai Rong Yun Chuang quickly achieved profitability in 2019, and in 2020, despite the impact of the epidemic, achieved a 5.1 times year-on-year high-speed growth. Of particular note is that in the fourth quarter of 2020, Bai Rong Yun Chuang entered a soaring profit mode.

Looking ahead, with the gradual improvement of financial infrastructure, the increasingly mature application of AI technology in the financial sector in the digital era continues to deepen, and the financial service industry's big data analysis service market is experiencing rapid development.

According to Frost & Sullivan data, the total revenue of China's financial services industry big data analysis service market was RMB 109.3 billion yuan in 2019. It is expected that the total revenue will continue to grow rapidly, reaching RMB 252.4 billion yuan by 2024, with a compound annual growth rate of 18.2% from 2019 to 2024.

Some analysts believe that after the effective control of the epidemic in China, the real economy will continue to maintain momentum in growth, consumer demand will gradually recover, the number of newly issued credit cards in 2021 will increase by 157% compared to 2020, and by 40% compared to 2019. Financial institutions are paying increasing attention to risk warning and existing user activities, so there is a need to strengthen credit monitoring.

It is foreseeable that the accelerated transformation of online, digital, and intelligent transformation of financial institutions will create new development opportunities for financial big data analysis solution providers represented by Bairong Yunchuang.

(Article reprinted from the internet)

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