Another IDC service company IPO, stopping the construction of network system to make more money?
Recently, Cloud Rail Factory Information Technology Holdings Co., Ltd. (hereinafter referred to as "Cloud Rail Factory") submitted an application for listing to the Hong Kong Stock Exchange. As an IDC solution service provider, its comprehensive use of non self built sorting centers is different from the inevitable trend, and its business development mode and profit situation are quite bright.
Ranking center natural resources, 4582 leased chassis
Data data show that the information technology of Cloud Iron Factory was established in 2013, and its function is positioned as an IDC solution service provider. Its main business development is R&D, operation and providing more IDC solution services, followed by the development of edge sorting business. It is commendable to pay high attention to that, unlike other private enterprises that provide more IDC services, Cloud Rail Factory is willing to help build a sorting center, where all natural resources are obtained through leasing.
▲ IDC solution service supply chain of cloud iron factory
On the one hand, the cloud iron factory orders large quantities of natural resources of computing centers from telecommunications companies, telecommunications companies or other small and medium-sized computing center owners and telecommunications companies, mainly including server shell space, power supply and bandwidth power consumption, and pays fastening service fees based on the number of message routers sold.
On the one hand, Cloud Rail Factory provides users with server, switch supply and data transmission consignment services, as well as overall infrastructure management services. Its computing center operation project team is responsible for managing orders, coordinating and monitoring the daily life operation of the computing center's public facilities, and external protection and Internet technicians are constantly stationed in the managed computing center that night
As of December 31, 2022, the computing centers managed by the cloud iron factory have fully covered 18 regions and 35 cities across the country. By December 31, 2022, the total bandwidth usage of the cloud iron factory will exceed 83000 gigabits per second, and the total number of chassis will be 4582.
▲ Number of chassis and origin
Among them, the computing center located in Qingdao provides 2462 more chassis, accounting for less than one-third of the total; Hohhot has 1240 chassis, accounting for 27% of the internal system; the number of chassis in Weifang, Jinan, Xuzhou, Urumqi and other places is below 300.
In the five years of 2020, 2021 and 2022, the investment income of the Cloud Railway Plant will be 276 million, 464 million and 549 million Hong Kong dollars respectively, the adjusted payment cost will be more than 23.385 million yuan, 20.929 million yuan and 13.617 million yuan, and the adjusted pure benchmark interest rate (non international financial statement principle accounting) will be 9.2%, 4.5% and 2.5% respectively.
The return of Cloud Workshop comes from three parts: (1) IDC virtualization services; (2) Edge computing services under Kexiaojian Cloud brand; (3) ICT services and other services. Among them, IDC's virtualization electrics accounts for the highest proportion, with sales of 249 million Hong Kong dollars in 2020 and 539 million Hong Kong dollars in 2023, with a growth rate of 47%. The main reason is the expansion of financial business and the increasing demand of buyers for IDC's virtualization services.
The annual revenue ratio of IDC virtualization has always been more than 90%, reaching 98.2% in 2022.
Main acquirer: broadband operator
The acquirers of Cloud Workshop and: China's state-owned broadband operators and small and medium-sized network equipment investors and operators.
By reference to the application, a state-owned broadband operator is the main network equipment resource advantage acquirer of Cloud Workshop. The cooperation between the two parties began in Qingdao. In 2016, the acquirer A hopes to occupy the first mover advantage in this relatively undeveloped Internet network equipment financial business market. Cloud Workshop obtains distribution services from its new network equipment and assists in operation, Then lay the foundation for long-term cooperation and expand to Jiangsu, Guangdong and other provinces and cities.
As we learned earlier, IDC circle analyzes that the acquirer A is China Mobile.
Refer to statistical analysis, On the premise that the average price of IDC resource advantages remains unchanged, the IDC resource advantages purchased by Cloud Workshop from the largest acquirer have grown strongly in the past three years, and the costs paid were HK $192 million, HK $272 million and HK $265 million, respectively. Despite the high activity of acquirers in the operation, the directors of Cloud Workshop did not excessively rely on acquirer A for multiple causes as mentioned above, and said that acquirer A is unlikely to terminate its cooperation relationship with them.
Cloud Workshop said that it has tried to reduce its dependence on it, and started to use other network equipment as a supplementary acquirer. From the statistical analysis, it is true that the ratio of IDC resource advantages acquired by acquirer A in the overall resource advantages of Cloud Workshop is rising, and the sales expense ratio will climb from 86% in 2020 to 55.2% in 2022.
Main buyers and charging mode
IDC circle found that more than 70% of the returns of Cloud Workshop came from the top five buyers.
Jhunjhunun workshop introduced that the buyers are mainly with China's world leading cloud computing Internet services, Internet companies and blue chip listed companies. Most buyers need customized rather than standardized IDC virtualization services.
In most of the consignment sales and infrastructure management agreements, users generally pay fees according to the specific number of chassis, chassis and IP house number they sell or use and the type of bandwidth they use. The charging items are expressed in the binary price of Ethernet every weekend.
The cloud iron factory shall pay the highest service fee to users according to several ratios of the maximum bandwidth power consumption per week, or the maximum number used. They can usually share any efficiency fluctuations with users. However, there may be a delay in efficiency sharing, which leads to the reversal of the decrease in service fees paid to the cloud iron factory and the decrease in service fees paid to users.
According to Frost Sullivan's report, in 2021, among the IDC solution service providers that fully adopt Shen Lunjian's computing center in China, Cloud Iron Plant will be ranked second in terms of revenue.
All Shen Lunjian rents the resources of the computing center to provide users with IDC services. Do you think this business mode is consolidated, and what are the competitive advantages and disadvantages? Warmly welcome critics to express your views!
