Recently, the new stock market in the Hong Kong stock market has quickly rebounded. The main performance is the eye-catching performance of new stocks on the first day of listing- the new stocks listed in May performed well, and all rose on the first day of listing. For example, the three new stocks of EDA E-Da cloud, auto street, and fun Group, which were listed in the last week of May, all recorded double-digit gains on the first day of listing, especially EDA E-Da cloud in the same industry skyrocketed 84.21% on the first day!

In the last week of May, four companies passed the hearing, among which Jingtai Technology was the first company to be listed through Chapter 18C hearing. The company had just filed with the China Securities Regulatory Commission on April 22. At the same time, a total of 11 new stocks were submitted for review, and most of the prospectuses showed that they were in the first submission state. All these performances show that the pace of the Hong Kong new stock market has been accelerating, and market funds have favored new stock companies with strong technology attributes and scarcity. Therefore, entering the first week of June, it is recommended to pay more attention to enterprises that have recently launched a prospectus and have relevant features.

For example, Cloud Factory Technology Holdings Limited (hereinafter referred to as "Cloud Factory"), which officially launched its prospectus today. On May 29th, the company conducted a hearing through the Hong Kong Stock Exchange and updated its prospectus.

Cloud Factory, known as the first stock of the 'Edge Cloud' in the Hong Kong stock market, may mark the official entry of edge computing services as another focus of attention for investors in the technology industry. The label not only highlights the company's leading position in the edge computing field but also signifies the high recognition and expectations of the capital market for this emerging technology.

Edge computing is a critical development direction in the current technology field, aiming to bring data processing capabilities to the "edge" of the network where data is generated. This distributed computing paradigm aims to reduce latency, enhance real-time processing capabilities, and reduce the burden of data transmission on cloud centers.

In simple terms, the edge cloud is an important infrastructure to support future economic and social development. It is applicable to scenarios such as high-bandwidth, low-latency, high-reliability, and high-security, such as industrial Internet, smart cities, remote medical care, Internet of Things, self-driving cars, and embodied intelligence, which are ubiquitous application scenarios in the future intelligent society. Edge computing and edge cloud have gradually become an indispensable part of the era and economy.

With the extensive application of AI technology and large models, the transfer of computing power structure will trigger an exponential growth in the demand for edge computing and edge cloud in various industries.

According to key data from STL Partners, the potential of the edge computing market is enormous. It is expected to soar from $9 billion in 2020 to $445 billion in 2030, achieving a stunning growth rate of nearly 50 times and demonstrating a trillion-level market size.

(Data source: STL Partners, Huaxi Securities Research Institute)

Looking to the future, the global edge cloud service industry is expected to maintain a strong growth momentum and become a new growth pole in the cloud computing market. According to the increase in the proportion of the future, the overall market space is expected to be in the trillions.

Edge computing services have become a strong driving force for the company's performance growth.

Cloud Factory, established in 2013, is mainly engaged in the development, operation, and provision of IDC solutions and services. The company entered the market through Internet data center (IDC) services and promoted distributed edge networks in various counties, families, and sites across the country, extending its capabilities to various edge cloud services such as computing, networking, and storage in the edge computing field. Cloud Factory's clients mainly include China's leading cloud computing service providers, Internet companies, and blue-chip listed companies.

In addition, the company has established a good relationship with one of China's largest state-owned telecom operators and has become one of its most important ecosystem partners for data center operations in Shandong and Inner Mongolia. Cloud Factory's business covers many regions in China and provides cross-regional IDC solutions in 19 relatively developed provinces and 38 cities in China.

According to the prospectus, Cloud Factory's revenue scale has shown a clear upward trend in recent years, growing from about RMB 464 million in 2021 to about RMB 696 million in 2023, with a compound annual growth rate of 22.3%. This growth mainly benefits from the expansion of the company's business, the growth of customer demand, deep cooperation with major customers, and the introduction of new customers.

Overall, Cloud Factory has established a stable and growing business development model through its focus on IDC and edge computing services and has gradually established a good reputation and leading market position in the market.

Especially the edge computing service launched in 2022 has brought new sources of revenue to the company and gradually formed a new growth point. In 2023, the revenue from edge computing services accounted for 2.6% and the company's revenue from edge computing services increased rapidly from about 5.2 million RMB in 2022 to about 18.06 million RMB in 2023, showing the company's development potential and competitiveness in this business field.

The proportion of revenue generated by ICT services and other services decreased from 5.8% in 2021 to 0.6% in 2023, indicating that the company is gradually focusing on IDC solution services and newly developed edge computing services.

This also reflects that the edge computing service, which is clearly defined as the "second growth curve", has become an important driving engine for the company's future performance maintenance growth trend and relay growth. With the development of 5G/6G, AI, IoT and other technologies, the demand for edge computing services will continue to grow, and the market is expected to continue to expand in the coming years.

Pioneer in the edge cloud field: technology strength and market competitiveness receive dual certification.

In recent years, the country has been promoting digital transformation and upgrading of the economy. Therefore, traditional cloud computing in the fields of public cloud, private cloud and hybrid cloud is not new. According to the "relay" order, edge cloud is expected to become a rising star in the field of cloud computing.

Although China's edge computing capabilities and market are still in the initial stage, the shadow of edge data centers has appeared in the list of typical cases of the "2021-2022 National New Data Center Case List". Since 2019, the edge computing industry has continuously gained policy support. Particularly, the implementation of heavy policies promoting the construction of digital infrastructure has objectively driven the rapid development of the edge computing industry. With continuous support from industrial policies, breakthroughs in key technologies and the accelerated formation of a national computing power network, China's edge computing industry will usher in sustained development opportunities and will continue to provide strong technical support for the country's digital transformation.

(Information source: public information, China government website)

However, there are not many manufacturers that focus on providing edge computing services for customers and industries from the point of view of edge cloud. Then, Yunworks, with its dual support of technical strength and market competitiveness, has quickly emerged as an industry leader.

According to public information, the company has been selected for two consecutive years as one of China's top 20 edge computing companies, ranking eighth on the list in 2024, a rise of ten places from last year.

Yunworks' product advantages and market competitiveness have also been widely recognized by the industry.

For example, in 2023, the company's "Lingjing Cloud" brand, with its EdgeAIoT product, successfully became a featured case of the China Internet Conference. This honor not only highlights the company's innovative strength in the field of edge computing technology, but also reflects its advancedness and innovation ability in digital transformation.

It is reported that Lingjing Cloud's EdgeAIoT product can match and pre-install AI algorithms according to different business scenarios to meet diverse needs, and has been successfully applied in various scenarios such as smart parks, municipal engineering, agriculture, eco-friendly concepts and dining etc.

One particularly outstanding innovative application is that Yunworks assembles edge computing hosts, cameras, Beidou positioning and road inspection control tablets and other equipment on Wenzhou municipal road inspection vehicles, further demonstrating the broad prospects for its application in the field of intelligent transportation.

In addition, the company won the "Excellent Product Solution Award", "Edge AI Excellent Practice Award" and was rated as the most promising edge computing enterprise of 2023 at the Global Edge Computing Conference and won the "Golden Edge Award" and many other honors. Its performance is the most powerful evidence of the company's technological strength and market competitiveness.

The reconstruction of the edge and the arrival of the global productivity era.

In the rapidly changing technology industry, the role of the first-mover advantage cannot be overstated. Yunworks has not only established its leadership position within the industry, but has also taken the lead among its competitors in the capital markets, and has won the title of "the first publicly listed company of Edge Cloud" in Hong Kong Stock Exchange. This is expected to further consolidate its first-mover advantage in the emerging edge cloud and edge computing services field, thus having reason to have greater expectations for its future development.

The large-scale deployment of AI applications and large models on intelligent terminals will inevitably lead to one thing - the continuous maturity of edge computing technology and the continuous expansion of its application scenarios in various industries. Edge computing and edge cloud, as key components to reconstruct global production capacity under the AI era, are more likely to become the core engine that drives the continuous upgrading of various "high-precision and advanced" industries and enterprises.

As an important beneficiary of the AI era in the next stage of development, Yunworks is expected to ride the wave of digital transformation in the new era, and its listing in Hong Kong may help it to quickly open up a new chapter full of imagination.