According to its 2021 financial report, Unique Technology Co. Ltd. (UCloud) experienced two consecutive bad years with accumulated losses of nearly 1 billion yuan ($150 million). The significant drop in its stock price has wiped out almost 90% of its market value.

Total revenue has seen an upward trend since 2018 to 2.9 billion yuan ($435 million) in 2021.

However, the income has undergone the opposite. Notably, UCloud’s net loss in 2021 and 2020 were around 630 million yuan and 338 million yuan, respectively, a loss of nearly 1 billion yuan ($350 million) in the last two years.

As of the close of trading on May 6, the stock price of UCloud decreased to 13.18 yuan ($1.98) per share, falling below the issue price of 72 yuan ($10.80). The total market value stayed at around 6 billion yuan ($900 million). Compared with the peak of 126 yuan ($19) in February 2020, nearly 90% of its market value has vanished.

According to Sina, since its establishment in 2012, the cloud computing service provider has prioritized business growth and scale. As a result, they tend to sacrifice profits for rapid revenue growth and the number of customers.

Nevertheless, in the first quarter of 2022, UCloud failed to make profits with a net loss of nearly 140 million yuan ($21 million). Revenue also fell 26% year-on-year to approximately 530 million yuan ($80 million).

UCloud is currently one of China’s top neutral third-party cloud computing service providers. After eight years of operations, its end users reached hundreds of millions. Its business has covered 25 regions globally.

In January 2020, it officially landed on the Science and Technology Innovation Board, making it the first public cloud platform in China.

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