We are a cloud-based communication service provider ranked third in China by revenue in 2024. Our market share represented 1.8% of the total revenue of China’s cloud-based communications services market in 2024. We were one of the first providers of cloud-based communications services in China, according to F&S. We are one of the few providers in China capable of delivering AI-driven communications services, according to the same source.
Communications Platform as a Service, also known as CPaaS, is at the core of our business, accounting for over 80% of our revenue during the Track Record Period. On our cloud-based CPaaS platform, our customers, principally internet companies, software and information technology companies, and financial institutions, have convenient access to a vast array of integrated telecommunications resources, covering voice, messaging, and mobile data capabilities, which we source from major telecommunications operators and other service providers in China. Additional value-added features, such as data analytics, privacy protection and smart routing, are embedded in our CPaaS. In addition, we offer Contact Center Software as a Service, also known as Contact Center SaaS, which is a suite of cloud-based software services that enable businesses to handle interactions with customers and potential customers.
Leveraging our cloud-based communications capabilities since our inception in 2008, we launched a new business segment, project-based communications solutions, in May 2020. Our solutions utilize software or a combination of software and hardware to facilitate communications and connectivity principally for public sector customers. Common use cases include municipal governance and safety.
Below sets forth a summary of our business segments and the principal services and solutions which we offer:
‧ Cloud-Based Communications Services: Our cloud-based communications services are a series of value-added communications services that are delivered to our customers online mainly through APIs to facilitate messaging, voice, and mobile data communications. Our services mainly comprise:
-CPaaS, through which we enable organizations to conveniently access communication capabilities provided by major telecommunications operators and other service providers through our cloud-based CPaaS platform. Our CPaaS customers can gain access to the following services and embed them on their apps and websites: (i) messaging services, for sending text and RCS messages; (ii) voice services, for making inbound and outbound call; (iii) mobile data services, for offering mobile data packages; and (iv) virtual goods services, for offering gift coupons, in-app membership subscriptions and other digital goods; and
-Contact Center SaaS, which enables businesses to manage and enhance customer interactions and engagement through our convenient and deployment-ready software services. Our Contact Center SaaS services primarily comprise: (i) smart voice navigation, which enables customers to effectively handle voice requests by designing a flow tree; (ii) smart text bot, which enables customers to provide online smart question-and-answer services; (iii) smart service quality check, which enables our customers to efficiently manage the performance of their call agents; (iv) smart service assistance, which provides recommended response to call agents for them to reply to their customers; (v) smart call bot, which communicates with callers through call bots; and (vi) video assistance, which enables customers to initiate video requests in apps or WeChat mini-programs.
‧ Project-Based Communications Solutions: Our solutions utilize software or a combination of software and hardware to enhance communications and connectivity for public section customers across many use cases, such as municipal governance and safety. We leverage various technologies such as data analytics, cloud computing, edge computing, and visual recognition to develop solutions based on a customer’s individualized demand.
‧ Other communications services and accessories: We also offer other communication services and accessories, mainly comprising specialized mobile phones for enforcement authorities, contact center outsourcing, and video conference solutions. Given the fierce competition and low profitability, we have been strategically scaling down this business segment.
Our cloud-based communications service offerings are intended to reduce the complexity for customers to interact with different telecommunications service providers and systems, help customers quickly deploy communications capabilities on their existing apps or websites, improve communications efficiency and enhance user engagement.
Our services and solutions are dedicated to making communications easier, and have been widely applied in the internet, software services, information technology and financial industries in China. In 2022, 2023 and 2024, our services and solutions facilitated communications for over 2,400, 2,400 and 2,100 corporate customers, respectively. In particular, we served a total of 63 key customers during those three years. We had 24, 32 and 32 key customers in 2022, 2023 and 2024, respectively, each contributing over RMB5 million of revenue in a year, which accounted for approximately 80%, 86% and 89% of our total revenue in 2022, 2023 and 2024, respectively.
Since our establishment, we have focused on the research and development of cloud-based communication services. As of December 31, 2024, we have registered 7 invention patents and 201 software copyrights, all of which are related to our main business and services. As of December 31, 2024, approximately 31.1% of our total employee headcount are working in the research and development functions. Our research and development team works seamlessly with our sales team, making sure we continue to improve and develop services that can reflect emerging technological advancements and meet changes in customer needs and industry trends. In recent years, we started to employ various AI tools, such as data analytics, natural language processing, voiceprint recognition and motion recognition, in our service and solution offerings. Our smart service assistance, smart call bot, and project-based communications solutions integrated natural language processing to make them better interact with people. For example, our smart text bot utilizes natural language processing to enable our customers to provide online smart question-and-answer services through text. Smart service assistance utilizes natural language processing to provide recommended responses to call agents for them to reply to their customers.
According to the F&S Report, the total revenue of China’s cloud-based communications services market in 2024 amounted to RMB50.3 billion, comprising China’s CPaaS service market of RMB44.8 billion and China’s Contact Center SaaS market of RMB5.5 billion. From 2020 to 2024, the total revenue of China’s cloud-based communications services market increased from RMB35.5 billion to RMB50.3 billion, growing at a CAGR of 9.1%. In 2029, the total revenue of China’s cloud-based communications services market is expected to reach RMB74.5 billion, representing a CAGR of 8.2% from 2024 to 2029. We ranked third in China’s cloud-based communications services market measured by revenue in 2024, with a market share of approximately 1.8%. Among the top five providers, we had the highest net profit in 2024.
We have earned broad recognition and numerous awards and honors, including being named a “Specialized and New Small Giant Enterprise” in Beijing, winning the “Smart Solution Award for Contact Centers” in 2022, and receiving the “Best Digital Intelligence Technology Supplier Award” at the 2023 New Customer Service Festival. Furthermore, we serve as the Vice Chairman Unit of the Beijing Communications Industry Association and the Executive Deputy Director Unit of the Value-Added Services Professional Committee of the China Communications Enterprise Association. We have also achieved the Certification of CMMI Maturity Level 5, which proves our software development capabilities. These honors are testaments of our technical strengths and market influence.
Our Shares are currently listed on the NEEQ. On June 2, 2015, our Company received approval for listing of its Shares on the NEEQ. On June 16, 2015, all issued Shares of our Company were listed on the NEEQ under the stock code of 832646. For further details, see “History, Development and Corporate Structure” in this document.
Source: Xunzhong (02597) Prospectus (IPO Date : 2025/06/30) |