Cloopen: A Clean Cloud, or Still Under Stormy Skies?

Cloud services provider’s investigation confirms revenue inflation last year, while separate, but similar, investigation by retailer Miniso finds no evidence of misleading claims involving its franchise model Key Takeaways: An internal investigation by cloud services provider Cloopen found the company inflated its revenue by about 5% in last year’s second and third quarters The new China-U.S. information-sharing agreement could help restore investor confidence in such U.S.-listed Chinese companies By Doug Young A couple of new announcements involving internal investigations results for two U.S.-listed Chinese companies are showing why we need…

Read More »

Kingsoft Cloud Gets Pelted by Storm Over Locked Novel

Shares of China’s largest independent cloud services provider fell 12% after a social media storm erupted over a novelist who lost access to her work Key Takeaways: Kingsoft Cloud’s shares fell after it stopped an author from accessing her novel saved on its platform on suspicion she may have violated Chinese law The cloud services provider’s shares have lost three-quarters of their value this year on concerns about U.S.-China tensions and the company’s slowing growth By Doug Young This was one story that software maker Kingsoft Cloud (KC.US) probably didn’t…

Read More »

Luckin 2.0? Freefalling Cloopen Flags Potential Irregularities, Spooking Investors

The provider of cloud-based services said it will start an internal probe into employee misconduct and transaction irregularities, following the recent resignation of its auditor Key takeaways: •      Cloopen said it formed an independent special committee to look into employee misconduct and transaction irregularities discovered by auditor KPMG •      Even before the disclosure, the company’s stock was freefalling amid U.S. law firm allegations that the company made false or misleading statements By Warren Yang An association with anything fraudulent can send a stock into freefall – a lesson that cloud-based…

Read More »

Share Buybacks Bring Mixed Results for Smart Share Global, Cloopen

Two China tech firms are the latest in a recent string to announce share repurchases with hopes of boosting their sagging stocks Key points: Smart Share Global’s shares surged after it announced a $50 million stock buyback plan, while Cloopen’s were largely unchanged after it separately unveiled a similar plan Purchasing by a major institutional buyer may have fueled Smart Share Global’s surge, as such big buyers look for bargains among depressed Chinese shares   By Doug Young It could well be called “A Tale of Two Buybacks.” A day…

Read More »

Cloud Specialist Cloopen Remains Stuck on Earth

Company’s shares rally after latest results announcement shows solid growth, only to sink, then rise again, as stock trades at fraction of IPO price Key takeaways: Cloopen’s revenue grew 48% in the second quarter, and it forecast similar gains in the third quarter, as it chases share in China’s lucrative cloud services market Despite strongly rising revenues and more large enterprise customers, the company’s shares are still hovering near all-time lows By Mia Shanley It’s the Chinese cloud stock that just refuses to take flight. That’s despite another robust quarter…

Read More »

Cloopen’s Sinking Stock Defies Fundamentals, Lawyers

Cloud services provider’s stock has lost half its value since its strong February IPO, despite solid performance in its post-listing reports Key takeaways: Cloopen’s growth appears stable and may even be accelerating as it gains a foothold in China’s lucrative cloud services market A sharp decline in the company’s stock post-IPO has left many scratching their heads, including two shareholder lawsuit specialists By Doug Young There’s plenty of mystery surrounding stocks trading on China’s domestic markets in Shanghai and Shenzhen, where rumor and behind-the-scenes manipulation often play as big or…

Read More »