CloudWalk, China AI Company, IPO & Financials Examined

By Isabella Cheng, Published Dec 15, 2020, 10:36am EST

CloudWalk, one of China's 4 AI Unicorns, known inside China as the "AI National Team", for its strong state connections has filed for an IPO.

IPVM Image

This follows just a few weeks after fellow Unicorn Yitu also filed for its IPO on the same market.

In this post, we examine the firm's financials, growth, and products, including:

  • CloudWalk background
  • China Academy of Sciences connection
  • Profit loss and growth examined
  • Shareholder structure
  • CloudWalk OS v. AI Solutions
  • Main verticals
  • Top customers
  • Collaboration with the Zimbabwe government
  • Risks and Opportunities

Executive *******

***** ********* ****** **** to *** *** ***** including ********* *** *** China ******* ** ********, its ********* *********** ****** yellow *****. ******** ** peer ********, ********* *** lower ******* *** * lower ****** **** ******* being ******* *** **** more **** ** ****. How ********* *** ******* against *** * ***** Unicorns, **** ****** *******, will ** * *** issue.

********* ** ******** ** raise ~$*** ******* *** through **** ***. * successful *** **** ***** the ******* **** *********** resources ** *** **** few ***** ** ******. However, *********** *****-** ********'* negative ****** ** *** businesses, ** ** ******* how ********* **** ****** and ******* ******* *** other ***** ** ********.

CloudWalk **********

***************** ****** *********** *** AI ********* ** *** authorities, *****, ********, *** commercial ******* (******, *********** communities, ***.) ********* ** its***+ **** **********. ** ** *** of *****'* * ** unicorns, ******** ****** **** $1 *******, ***** **********,*********, *******. ********* *** ****** at~$*.* ******* ***** ****** ****, ****** it *** *** ****** valuation ** *** ********, just ****** ****'* $* billion *** *********. *** firm, ******* ** **** and ************* ** *********, reported *,*** ********* ** of **** ****.

Connection ** ***** ******* ** ********

IPVM Image

*********, ***** ** *** "AI ******** ****" ******* it *** ** ******* investment, *** "********* **** the ******* ******* ** Sciences," ********* ** *** company *******. ********** ******* ** ********** * *****-*** ******** institution**** **,*** ******** *********************. **** *** ** an *********** ******* ** 2015, ********* ** *** by **** ** (), * ****** ********* at *** ********* ********* of *** ******* ******* of ********. *********'* **** to *** *** ********** are ********* ** *** consistent ********* ********* ** government ***** ****** **** VC/PE ************.

Revenue *****, *** **** ******** ** *****-**

*********'* ******* *** ***** from ***** $** ******* USD ** **** $*** million *** ******* **** and ****. *******, ** reported ~$** ******* *** in ******* ** **** 1/4 ** ****'* ***** revenue ** *** *** of ** ****. **** decrease ** ******* *** mainly *** ** *** effects ** *****-**, ********* explained ** *** *** document. *****, *** ********** Yitu ******** * **** stronger ** **** ******* of ~$** ******* *** (about */* ** *** 2019 ***** *******) ** compared ** *********'* ~$** million ***.

IPVM Image

*******, *********'* ********** *** growth **** ****** **** concerns ***** *** ********. Its *** ******* ****** rate *** **% **** 2018 ** ****, *** its ********** **** ******** 136% ****** ** *** same ******. ********* ** the ******** ** *** 4 ******** *** ** such, ****** **** **** room ** ****.

Comparison ** ***** ***** ** ********

***** *********'* ******* *********** Western ***** ************ ** companies, **** ** *** the ***** ** ******** do, ** ** ***** eclipsed ** *** *** larger ********, ****** *** SenseTime. ******, ***** ********* to *** ** **** reported$*** ******* *** ** 2019 ****** *******, *** ******* ******* reported ***** ********* *** expected$*** ******* *** ** 2019 ****** *******.

**** ***** ***** ******** CloudWalk's ****** ********* ******* to ****'*:

IPVM Image

Losses / ********** ********

********* ******* * *** loss ** ~$** ******* USD ** ** ****.

IPVM Image

** *** *** **********, CloudWalk ********** *** *************** to ********** *&* ******** and ** ******* ** stock ************, ************ ** 2019. ****'* *** **** was ************ ***** (~$*** million *** ******** ** $20-40 ******* *** ** other *****) ******* ********* reported ~$*** ******* *** in ***** ** * result ** ******* *****-***** compensation (***) ** *********. This ************ ****** ** on *********'* ****** ***** as ** ******** ************** cost. *******, ************** ***** are ****** $*-** ******* USD ******** *** *********, but ** ****, **** number *** ~$*** ******* USD. *********** *** *** ~$200 ******* *** ****, which *** * ****** of ***, *********'* ************** costs *** **** *** still ********** ******* ** those ** ***** *****.

Shareholder *********

*********'* ************ ******* * controlling *********** ****** "********* CloudWalk" *** **+ ******* investment ***** *** ***** shareholder ********.

*********'* *********** ***********, ***** controls **.**% ** *** shares, ** "********* *********", an ****** ****** ***** by**** **(周曦) ****** ********(姚志强), *** *** **-******** of *********. **.**% ** Changzhou ********* ** ***** by **** ** *** 0.12% ** ***** ** Yao ********.

*** ************ **** *** more **** *% ** Yitu's ***** ****** *******:

  • *******(*.**%): ** ** ********** provider ** ***** ******** on ****** ***********, **** transit **********, *** ***** city ********. ******* *** one ** *** ***** institutions ** **** **** CloudWalk *** **** *********~$** ******* *** ** a **** **** *****.
  • ***** ********(*.**%): ** ********** ******* primarily ***** ** *** Zhiqiang, * **-******* ** CloudWalk

* ****** ** *********'* smaller ************ *** ********** entities, ******** ** ***** 10% ** ***** ******. Some ** *** ***** funds *** ********** ************ that **** ********* ****** include:

CloudWalk ********* ****** *. ** *********

********* ****** *** ********: CloudWalk ** (****), * software ********, *** ** solutions, ***** ******* ********.

**** ** * "******-***** software ****** **** ******** AI-related ********* *****, *********, and **** ********** ************ and *********** ************," ********* to ********** ***************** ** * ****** tech ********** ** ******, China. **** ****** ******* for ********** ** ****** and ******* ***** *** AI ************, ******** *** complexity ** ******** ** applications. *** ****** *** also ******* *** ****** various **** *******.

**** *** **** *********** in ***** ******, ****** inspection, *** ***** ************ scenarios,********* ** *** *****, * ***** ******* news ***********. *** ****** is **** ***** **** at ********* *******, ********** "the **** ******* *** systems, ********* **-**** ***** information **** ******** ****-*** data *******" *** ***** digitizing *** ******* ** shipping **********' ******** *** departures **** *********.

IPVM Image

********* *** ************ **** more ** *** ******* from **** ****** **** AI ********* *****. ** 2017 *** ****, ****** 3/4 ** *********'* ***** revenue **** **** ** solutions, *** ** ****, almost **% ** ***** revenue **** **** ** solutions. *******, ** ** 2020, **** *** ****** out ** ****** * 50-50 *****.

IPVM Image

AI ********* ********

********* **** ******** "*************" AI *********, ***** *** mainly ********-*******, ** ********* combines *** ******** **** a ******** ******** *** the ***-****. ********* ***/**** all ** *** ******** but *** *** ******* details ***** *** *******. AI ********* ******* ******* AIoT ********* ********* *** designed *********:

  • ** *******
  • ****** *******
  • ******** *******
  • ****** *********** ******* *******

IPVM Image

Margins **** *** ********* **, *** ********** *** *** ** *********

***** *********'* ******* ******* have ********* **** **% to **% **** *** years, ** ** ***** low ******** ** *** competitor ****'*. ****'* ******* have **** ***** **% since **** *** **** 70% ** ** ****.

IPVM Image

********* *** **** *** AI ********* ******* *** relatively *** ******* ***** is * *** ** customization ******** ********* ** the ********'* *****. *********, CloudWalk ***** ***** ** outsource ********, ********, ** services ** ******** *** entire ********, ***** ****** down *******. *******, ********* pointed *** **** ** 2019 *** ** ****, AI *********' ******* **** increased, ******* ******* ** CloudWalk ******* **** ******, it *** ********* *** own *********** ******** *** AIoT *********. ***, ** solutions *** *** **** CloudWalk ********* ********, ******* to ***** *******.

4 **** *********

********* ******** * **** verticals, ********* ****:

  • *********** *******: ******* *** ******** verification ******** **** **** banks ********** ***** ******** service ********** *** **** bankers ** ******* ******* fraud
  • *********** **********: ****** ********-******** "***** city" ********, ******** *** just *** *** ******* city *** **** ** track ****** ***** ** and *** ** *********, schools, *****, *** ******* spots
  • *********** *********: ******** ** ******** and ******** ** ******* operational ********** *** ********** of *** *******
  • *********** ********: "***** ******" ********, that ****** "** *********** retail ******* **** **** attention ** **** **********"

*********'* *****-******* ********** *** provide ** ******* ********** in *** ***** ** finance *** ****** ********. "As * ****** ********-****** enterprise **** *** ******* Academy ** ********, ******* can **** *** ***** of ***** *** ****** security *********** **** ********* customers," **** **-******* *** in ***** *********. ******, ********* ********** is ********* **** ** the **** ******* ** 6 ***** *****-***** *****, across ***,*** **** ********, and ** * *** of *****'* ** ***** airports, ********* ** *** prospectus. ********* ** **** the******** ******** ** ****** recognition ************ *** **** ** China *** ******* **********, one ** *****'* ******* securities *********.

Top * *********, ****** ***********

********* *** ************ **% of *** ***** ******* in ***** ** * companies, ***** ** ****-****, its *** * ********* consistently ********* *** **-**% of ***** *****. ***** it ** **** **** in ** **** ********* has ********* *** ***** concentration, ** ** ******* what *** ********** **** look **** *** *** of ****, ********** ** in *** **** ********* has **** * ***** concentration ** ***** ** just * *** *********.

IPVM Image

***** ** ** *** company **** ************ ********* significantly **** *********, ***** makes ***** ** *** sales *** ****** ** integrators **** *** **** on * **** ******* basis, ********** **** ********* when *** ******* ***** a ******** ******** (*.*. for *********** ******* ** transport). ** ****, * single ********** ********* *** almost **% ** *** revenue ** **** ** 2017, ****, *** ****. In ****, *** *** customer *** ** *** traffic ********** *&* ******* owned ** ***** ********* Group, ** ***. ** 2018 *** ****, *** top ********* **** **** technology *********** *** **** up **** **% *********'* 2018/2019 ***** ********.

Collaboration **** ******** **********

********* *** *** ****** its ******* ********* *** sales ****** *** ******* of *****, *** ** was ******** ** * high ************* *********** *********** *** ******** ********** in ****, ** * part ** *** **** and **** **********. *** technology *** ** ** used ** ****** *********, but *********** **********, ****** Zimbabwean ********** ** *********** **** ******* ****** recognition **** **** *** government ** ***** * smart ********* *** ******* system. *******,********* **** ******* *** concerned ***** *** ******* repercussions ** ********'* ********** possibly ******** **** ***** to ***** ** ********* surveillance *****.

Risks / ************* *** *********

*********'* ********* *********** ** not ** ****** ** that ** *** **** competitors. **** ****** ********* is ******* **** *** peers, *** ******* **** grew ** **% ******* 2018-2019 ***, ** ***, revenue *** ******** ** 2020. ******* **** *** relatively *** *******, ** may ****** **** *** CloudWalk ** **** ****** money ** ***** *** overhead *****, ********** ** it ** ***** ******** a *** ** *********** costs (********* *&*, *****, etc.) ** * ***** company. ***** ********* ** an ** *******, ** must ******* **** * other ***** ** ***** out ***** ** * limited ******. ** ** unclear ******* ********* ** well-positioned ** ** ****, financially *** ******* *** products.

********* ***** *** *** background ** * ******* with **** ** *** China ******* ** ******** and *** ******* **********-****** funding ** **** **** of ** **** **** competing ******* ***** ********* for ***** ****** ******** or ******* ********. ***** projects ********* **** * lot ** ***** ***** into **** *** ***** help ***** *********'* ***********. Background *****, ********* **** also ****** **** **** the *** **********'* ******** in ******** * ****** leader ** **, ** government ******** *** **** further ******* *&*.

Comments (0)

Read this IPVM report for free.

This article is part of IPVM's 7,270 reports and 968 tests and is only available to subscribers. To get a one-time preview of our work, enter your work email to access the full article.

Already a subscriber? Login here | Join now
Loading Related Reports