20-F: Cloopen Group Holding Limited Files 2023 Annual Report on Form 20-F
Annual Report
Cloopen Group Holding Limited releases its 2023 annual report, detailing financial performance and key business activities.
Summary
- Cloopen Group Holding Limited has filed its 2023 annual report on Form 20-F.
- The report details the company's financial performance and business activities for the year ended December 31, 2023.
- As of December 31, 2023, the company had 8,703 active customers, including 121 large-enterprise customers.
- The dollar-based net customer retention rate for solutions offered on a recurring basis was 85.8% in 2023.
- The company's revenue for 2023 was RMB 571.0 million (US$80.4 million).
- The net loss for 2023 was RMB 412.4 million (US$58.1 million).
Sentiment
Score: 5
Explanation: The document presents a mixed picture with both positive and negative aspects. While there are improvements in some areas, the overall financial performance is still weak, leading to a neutral sentiment.
Positives
- The dollar-based net customer retention rate for recurring solutions increased to 85.8% in 2023.
- The company is focusing on AI and video technologies to develop innovative features and solutions.
- The company is expanding internationally, which could lead to new growth opportunities.
Negatives
- The company reported a net loss of RMB 412.4 million (US$58.1 million) for 2023.
- Revenue decreased by 3.8% in 2023 compared to 2022.
- The number of active customers decreased from 9,980 in 2022 to 8,703 in 2023.
Risks
- The company operates in a highly competitive market.
- The company's business is subject to extensive regulation in the PRC.
- The company relies on the communications infrastructure and telecommunications resources provided by China's major mobile network operators.
- The ADSs may be prohibited from being traded over the counter in the United States under the HFCAA if the SEC subsequently determines our audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely.
Future Outlook
The company expects to distribute earnings and settle service fees owed under contractual arrangements based on business needs and does not expect to declare dividends in the foreseeable future.
Industry Context
The cloud-based communications industry in China is rapidly evolving and highly competitive, with increasing adoption of digital solutions by enterprises.
Management Changes
| Role | Previous Person | New Person | Effective Date | Reason |
|---|---|---|---|---|
| Director | Changxun Sun | Pengfei Yuan | November 2023 | Resignation |
| Director | Yipeng Li | Ye Yuan | November 2023 | Resignation |
| Director | Xiegang Xiong | Lei Du | November 2023 | Resignation |
| Director | Kui Zhou | Yuanqi Wang | November 2023 | Resignation |
| Director | Qingsheng Zheng | Ming Zhao | November 2023 | Resignation |
| Director | Qingsheng Zheng | Zi Yang | November 2023 | Resignation |
| Director | Lei Du | Qingsheng Zheng | August 2024 | Resignation |
Legal Proceedings
- The company reached a settlement with the SEC regarding employee misconduct and transaction irregularities.
- The company was named as a defendant in a number of lawsuits filed by purchasers of our securities, including class action lawsuits.
Related Party Transactions
- The company provided cloud-based UC&C solutions to subsidiaries of Hi Sun Technology (China) Limited.
- The company purchased project development services from Shanghai Keshen Information Technology Co., Ltd.
Stakeholder Impact
- The company's performance and strategic decisions impact shareholders, employees, customers, and suppliers.
Key Dates
| Date | Description |
|---|---|
| 2008-08-01 | Foreign Exchange Administration Regulations last amended |
| 2014-01-01 | Cloopen Group Holding Limited incorporated |
| 2014-07-01 | SAFE Circular 37 issued |
| 2015-06-01 | SAFE Circular 19 and SAFE Circular 13 became effective |
| 2016-06-09 | SAFE Circular 16 became effective |
| 2017-06-01 | PRC Cybersecurity Law became effective |
| 2017-12-01 | SAT Bulletin 37 became effective |
| 2019-07-30 | Negative List (2019 Version) became effective |
| 2020-01-01 | Foreign Investment Law came into effect |
| 2020-12-18 | Holding Foreign Companies Accountable Act enacted |
| 2021-02-08 | ADSs listed on the New York Stock Exchange |
| 2021-03-22 | Acquisition of EliteCRM completed |
| 2021-06-10 | PRC Data Security Law promulgated |
| 2021-09-01 | PRC Data Security Law took effect |
| 2021-11-01 | Personal Information Protection Law became effective |
| 2021-12-18 | Acquisition of Zhuge Inc. completed |
| 2022-02-15 | Cybersecurity Review Measures took effect |
| 2022-08-26 | PCAOB, CSRC, and Ministry of Finance of the PRC signed the Statement of Protocol |
| 2022-09-01 | Measures on Data Export Security Assessment came into effect |
| 2022-12-15 | PCAOB secured complete access to inspect and investigate PCAOB-registered public accounting firms |
| 2023-03-31 | Overseas Listing Trial Measures became effective |
| 2023-07-10 | CAC published the Provisional Administrative Measures for AIGC services |
| 2023-08-15 | AIGC Administrative Measures became effective |
| 2023-10-25 | Cloopen delisted from NYSE |
| 2025-01-01 | Cyber Data Security Regulations come into force |
Keywords
Cloud-based communications, CPaaS, Cloud-based CC, Cloud-based UC&C, Financial results, Annual report, Cloopen Group
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