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On May 8, 2020,King Cloud successfully landed on the Nasdaq, bucking the market and entering the cloud, with great momentum. FutureX Skyrim Capital, as the largest external institutional investor before King Cloud went public, struck the bell at the scene. Founder Zhang Qian was wearing a red dress, and she was full of spring breeze and oxygen. Prior to the establishment of Skyrim in 2017, Zhang Qian was the female head of the private equity business of China Asset Management and the case. Although the world in the capital circle has never been more sensitive and fierce than the outside world, she always knows how to learn from the past, and put down the aura to start a business again and never fear the turbulent waves of the times.
When I met Lei Jun in Shenzhen last year, I mentioned Zhang Qian. Boss Lei said that Zhang Qian is a person who has always been devoted to his role with true temperament, whether it is a founder, an investor, or a mother. However, what really makes Zhang Qian outstanding is that in addition to his unique vision, he also has a consistent sense of social responsibility. Starting as a capital, she did not want to act as a capitalist, and supported her career with love. Over the past 20 years, the capital market has responded brilliantly to economic development and wealth creation trends, especially in the global market. The most interesting thing is the number of billionaires and the growth of the new economy and new retail. Technology companies, whether it is ByteDance, Meituan, Xiaomi, or Jinshanyun, are all providing the joy of life and cultural enrichment for the people while achieving their championship.
On the evening of May 8, Zhang Qian, on behalf of all Skyrim Capital colleagues, published an open letter to investors and friends, entitled “Choosing Outstanding Companies in Crisis, Is the Best Hedge Against Risks.” In the face of overwhelming praises and applause from all over the world, the female founder used her unique imagination and calmness to look back at the past and look forward to the future, but inspire everyone in the line: those seemingly towering and unique success They are cumulative, hard-working, and densely arranged, and any loose, fabricated, good and evil work will be seen and discarded. Future X, our future is more exciting than the beginning.
The following is the full text of the letter.
Click the picture to view the Chinese version
I
Today, King Cloud, the leading independent cloud service provider in China invested by Future X Horizon Capital, successfully listed in the United States to ring the bell. After Jinshan Cloud invested in Skyline Capital, the annual revenue of the cloud business has grown rapidly from the initial 130 million to 3.95 billion last year. The excellent management team has handed a bright transcript to shareholders and the market. After the Ruixing coffee fraud incident, many overseas investment institutions questioned China’s stock market. Everyone was full of questions about whether the US capital market would welcome new outstanding Chinese companies to go public.
As the first Chinese high-tech company that chose to go public in the United States after the epidemic, Jinshan Yun received more than 10 times the institutional orders and a dazzling first-day performance. After the listing, the stock price gained a 40% increase in just three and a half days 17 times oversubscription, 260 investors subscribe, which fully shows that the US capital market is still full of expectations for outstanding Chinese technology companies, fully affirming Jinshan Cloud ’s position as China ’s largest independent cloud service company. The successful listing of Jinshan Cloud is of great significance to many Chinese high-tech companies still on the IPO road during the post-epidemic period. At the same time, the super-recovery capabilities of the Chinese government and enterprises in the epidemic will further increase the weight of Chinese companies’ investment in overseas investment institutions.
II
Back in 2015, I was also responsible for the equity business of the China Asset Management Fund. After I voted for Alibaba Meitu Dianping and Didi, the mobile Internet faucets were generally covered. Start thinking about where will the future change the Chinese business track? At this time, the To B track jumped into my eyes, and foreign countries ran out of the super unicorn enterprise represented by Salesforce. The Chinese market will certainly be able to breed a true unicorn for enterprise service. That year I focused on many To B Chinese companies, but after careful analysis, the business model is not mature. Although I saw that many To B companies still need to polish their business models, I found that To B companies all need cost-effective cloud service infrastructure. At this time, Jinshan Cloud caught my attention.
In addition to high technical barriers, heavy asset barriers, and strong first-mover advantage, it is also important to empower the customer’s service spirit. I still remember that in 2009, Lei Jun, chairman of Jinshan Software, visited us with a dozen mobile phones. After talking about Jinshan, he started talking about his Xiaomi business plan. When I met with Lei Jun again on the King Cloud board of directors, I deeply remembered the first sentence he asked me, “What is your understanding of this industry?” Then he advised me bitterly: This is a protracted battle like the Long March , Need long-term continuous investment, need all in mentality. These also illustrate the extremely high threshold of public cloud service providers.
The choice of a good industry is important, but people are still the key to business success. I remember that Dr. Zhang Hongjiang, the CEO of Kingsoft, was a 60-year-old former Microsoft executive in the industry. His muscle strain was still working overtime when he was approaching midnight with young people. Every time I think of Wang Yulin, CEO of King Cloud, I am touched by his sense of responsibility. I was deeply touched by the entrepreneurial spirit of the Jinshan Cloud management team. I am an undergraduate in computer science and come from a Java programmer. Every time I go to the Jinshan Software Building, I think of the bloodiest young people like me in the 1990s who are here to work hard and hope to build China’s own software giant. Thirty years later, another wave of new cloud service teams gathered here to build China’s largest independent cloud company, and I am really proud of them.
III
From 2015 to 2020, we assisted Jinshan Cloud through every milestone. From China Fund to FutureX Sky Capital, we have invested more than US $ 150 million in Jinshan Cloud, and helped the company introduce multiple high-quality strategic and financial investment institutions to support the company’s completion. A total of more than 800 million US dollars of financing has helped the company continue to open up its territory, welcoming top-level customers in China and even the world to stay on the Jinshan Cloud platform, accompanied by the founding team to fight in the bloody battlefield of the cloud repeatedly. All our resources accompany them to achieve double, triple and triple growth.
Today we finally saw the IPO of companies with a revenue scale of nearly RMB 4 billion on To B and Cloud Service Track. The epidemic highlights the importance of digital connectivity. In order to respond to the crisis of the epidemic, the traditional industry has gone online quickly, and data around the world is exploding in trillions. Because of the huge capital investment, high-tech gold content, and high business barriers, the cloud market can only be a business that the US and Chinese technology giants have taken over the world. China’s cloud service penetration rate is less than 10%, and the commercial informatization rate is low. China’s local cloud service market alone will bring huge growth potential to leading companies.
As the largest independent cloud service provider in China, Jinshan Cloud has been focusing on the software technology track for 30 years. The parent company Jinshan Group has been competing with customers for less business. The team has been working together for nearly ten years, focusing on industry cloud solutions, forging ahead, and serving the spirit. Strong is their unique advantage. This track product has just matured and is still in an explosive period. We expect that this track will continue to have high-quality companies with tens of billions of market value potential similar to Jinshan Cloud.
IV
As Jinshan Cloud celebrates its contrarian IPO, we are grateful to the founders of Jinshan Group, Zhang Xuanlong, to seek the trust of Bo Jun, Lei Jun, Zhang Hongjiang, Zou Tao, Wang Yulin, and the Jinshan Cloud team, so that FutureX Sky Capital can be fortunate to be the largest external Shareholders participated in the rapid development of Kingsoft Cloud. Thanks for the trust of each LP, the struggle of more than a dozen colleagues, and the support of every shareholder, so that we can firmly all in assist Jinshan Yunrun.
For more than ten years since I entered the investment industry, I have been in all of China. Since the first day of the establishment of FutureX Sky Capital, we have been in the technology track of all in China. In the past we have invested in WuXi PharmaTech, Alibaba, Meituan, Didi, Meitu, ByteDance, Weilai Technology leaders such as Xiaomi. After this epidemic, we deeply understand how technology can help Chinese people resume work and production faster, while ensuring safety and returning to normal work and life as quickly as possible.
In the face of huge challenges such as the epidemic in the world, we still believe that the choice of technology companies with X (unlimited potential) representing Future (future) in the crisis for equity investment is a world pattern of risk and uncertainty beyond expectations The best hedge. We have always focused on investing in the era of intelligence, from the application layer cloud infrastructure to the chip base layer to the software Saas layer. We firmly believe that intelligent and hardworking Chinese technology entrepreneurs will work with our FutureX Sky Capital to serve innovative world-wide When customers, continue to climb the peak of technology and performance returns。Thank u all。
