GuShiio.com The capital market turmoil triggered by DeepSeek continues to ferment.
Affected by news such as shareholders reducing their shares by 1.3% at a high level and the company clarifying its connection with DeepSeek, Six-board bull stock Qingyun Technology (688316.SH) opened sharply lower in early trading today, falling nearly 13%, but its share price suddenly rose and turned red after noon.
GuShiio.comApp noticed that the vast majority of the shares in this reduction were carried out in block transactions, and when the stock price approached a new high on February 10 and February 11, the block transaction discount rate exceeded 33%. Some analysts pointed out that high discount rates usually reflect sellers ‘urgency or lack of market confidence.
However, compared with the recent rocket price, the company has not been profitable four years since its listing, which further highlights the company’s commercialization difficulties. As a small and medium-sized cloud service provider, although FastCloud has benefited from its stock price dividends through its deep connection with DeepSeek, the competitive environment faced by FastCloud may become increasingly fierce in view of the crushing of top manufacturers in terms of scale, technology, cost, etc.
DeepSeek detonates stock price, difficult to hide anxiety about reducing holdings
On the evening of February 12, Fastcloud Technology disclosed that Jiaxing Lanchi Fanchang Investment Partnership (Limited Partnership)(hereinafter referred to as Jiaxing Lanchi) and Tianjin Lanchi Xinhe Investment Center (Limited Partnership), shareholders of the company holding more than 5% shares (hereinafter referred to as Tianjin Lanchi) fulfilled the previously disclosed share reduction plan, and the change in equity hit 1%, reducing the company’s shares in a total by 1.3%.
According to reports, Jiaxing Lanchi reduced its shares by 0.24% through centralized bidding and reduced its shares by 113,730 shares from February 6 to February 10, and reduced its shares by 0.79% through block transactions from February 10 to February 11; Tianjin Lanchi reduced its shares by 0.06% through centralized bidding and reduced its shares by 29,669 shares from February 6 to February 10, and reduced its shares by 0.21% through block transactions from February 10 to February 11.
Source: Announcement
Wind data shows that on February 10, Fastcloud conducted 4 large transactions, with a total transaction of 207,800 shares, a transaction amount of 9.7889 million yuan, an average transaction price of 47.1 yuan, and a discount of 33.31%. On February 11, Fastcloud Technology held two large transactions, with a transaction volume of 270,100 shares and a transaction volume of 15.2622 million yuan. Both transaction prices were 56.51 yuan, and both discount rates were 33.34%.
Source: Wind
A senior securities analyst told GuShiio.comApp that in the A-share market, the discount rate for bulk transactions is generally between 3% and 10%. The discount rate for stocks with better liquidity is lower, and it may exceed 10% for unpopular stocks or large bulk transactions. In extreme cases, if sellers are eager to cash out or the market is pessimistic, the discount rate may exceed 20%, or even close to 30%.
“The discount rate for bulk transactions is the result of a game of long-short power in the market. A high discount rate usually reflects the seller’s urgency or lack of market confidence, but it needs to be comprehensively judged based on the trading background, company fundamentals, etc. rdquo; The above-mentioned person also said.
Catalyzed by the DeepSeek concept, FastCloud’s share price has soared recently. Trading conditions show that within 6 trading days from February 5 to February 12, Fastcloud has had a 20cm daily limit for 6 consecutive trading days. As of yesterday’s close, the company’s share price was reported at 101.72 yuan, with a total market value of approximately 4.862 billion yuan, a record high.
However, with the disclosure of major shareholder reduction and the company’s clarification of the DeepSeek concept, FastCloud’s share price fell sharply in early trading today. As of press time, it fell more than 7% to 94.5 yuan, with the latest market value of 4.5 billion yuan.
In fact, including FastCloud Technology,capital onlineCloud manufacturers, including Ucede, etc., all saw a surge in stock prices after the holiday. On the one hand, they benefited from market sentiment and on the other hand, they actively embraced DeepSeek’s model.
However, the value of the DeepSeek concept stocks of related companies remains to be tested. FastCloud also clarified related matters: DeepSeek is an open source large language model, and any user can conduct training based on this model for free, and then conduct personalized development or model optimization. Some of the company’s products are also connected to DeepSeek, but the company has not signed a service cooperation agreement with DeepSeek and has no business cooperation with it. This matter has no material impact on the current main business. Investors are advised to make prudent decisions and invest rationally.
Fastcloud also stated that as of the announcement disclosure date, the company did not directly or indirectly hold equity in Hangzhou Deep Search Artificial Intelligence Basic Technology Research Co., Ltd.(DeepSeek is a large model owned by Hangzhou Deep Search Artificial Intelligence Basic Technology Research Co., Ltd.).
Continued losses of nearly 800 million yuan, the future is long
Compared with the recent beautiful stock price, Fastcloud’s performance is difficult to explain.
Data shows that Fastcloud Technology landed on the Science and Technology Innovation Board of the Shanghai Stock Exchange in March 2021, becoming the first share of hybrid cloud in China. However, since its listing, its revenue scale has never been able to make a big breakthrough and it has never achieved profit.
The financial report shows that from 2019 to 2023, Fastcloud’s total revenue was 377 million yuan, 429 million yuan, 424 million yuan, 305 million yuan, and 336 million yuan respectively. The decline was obvious in 2021 and 2022. Although it improved in 2023, it has not returned to the level of previous years. During the same period, the net profit attributable to the parent company was-190 million yuan, -163 million yuan, -283 million yuan, -244 million yuan and-170 million yuan respectively, and it has never achieved profit after listing.
Although the company will reduce losses in 2024, it is still far from reaching profit. According to the performance forecast released by Fastcloud Technology on January 24, it is expected that the net loss in 2024 will be 97.9073 million yuan, a decrease of 72.1651 million yuan from the loss for the same period last year; the non-net profit loss will be 112 million yuan, a decrease of 61.6351 million yuan from the loss for the same period last year.
Regarding the main reasons for the reduction in performance losses, Fastcloud said that the company’s AI computing cloud services have continued to contribute revenue and gross profit, and the company’s AI computing cloud services have been recognized by customers; the company has implemented a more refined operation for the traditional public cloud business, reducing costs and improving gross profit.
Data shows that domestic computing power is expanding rapidly at an average annual compound growth rate of nearly 30%. This explosive growth combined with DeepSeek’s low-cost model is triggering an efficiency revolution in AI.
At present, small and medium-sized cloud service providers are adding more intelligent computing. Fastcloud has publicly stated that AI computing services have become a very important new growth point for the company. However, surrounded by giants, small and medium-sized cloud service providers such as Fastcloud Technology are in a difficult situation.
“If training and reasoning costs are reduced, it may be easier for small and medium-sized cloud service providers to enter the market and use price advantages to attract customers. However, the crushing effect of top manufacturers may be stronger.& rdquo;
A person who has been engaged in the computing power industry for a long time believes that giants such as AWS, Azure, and Google Cloud will also adopt low-cost technology to further use scale advantages to reduce prices and squeeze the living space of small and medium-sized manufacturers. In addition, if small and medium-sized manufacturers rely too much on third-party technologies (such as DeepSeek’s closed-source model), they may lose their autonomy and their profit margins will be controlled upstream. Once technology updates or cooperation changes, their services will be affected.
It is worth noting that on November 26, 2024, Fastcloud announced that its subsidiary Qingyun Zhijian recently received an early termination notice of the “GPU Computing Power Service Agreement” and “Supplementary Agreement” issued by customers. The customer hopes to use August 31, 2024 as the cancellation date, and the original contract will be terminated early.
It is reported that this large computing power order was first disclosed on January 3, 2024. The main transaction content is that Qingyun Smart Computing provides customers with a certain amount of GPU computing power services and storage, with a total contract fee of RMB 170 million. Fastcloud said that if the termination agreement is subsequently signed, it is expected to have a certain impact on the company’s operating results.(This article is launched on GuShiio.comApp, author| Ma Qiong)
