PPIO Lists on HKEX Amid Rising Demand for Distributed AI Cloud Services

摘要： Yao Xin, Co-founder, Chairman, and CEO of PPIOAsianFin — PPI...

Yao Xin, Co-founder, Chairman, and CEO of PPIO

AsianFin — PPIO, a distributed cloud computing service provider co-founded by Yao Xin, founder of online video giant PPTV, officially went public on the Hong Kong Stock Exchange on June 20. The IPO was jointly sponsored by ICBC International and Shenwan Hongyuan.

Founded in 2018, PPIO operates through its Cayman Islands-incorporated listed entity, PPLabs Technology Limited. The company initially focused on edge cloud computing services but has rapidly expanded into AI cloud services, capitalizing on surging demand driven by large AI models.

Yao Xin, PPIO’s chairman and CEO, is a seasoned entrepreneur known for launching PPTV in 2005, predating YouTube’s debut and securing over $700 million in funding before selling to Suning in 2014.

After a period in venture capital and corporate governance, Yao returned to entrepreneurship with PPIO, backed by angel investors including Baichuan Intelligence’s Wang Xiaochuan and former Microsoft Azure China President Shen Yuanqing, along with institutional investors such as CCV and Panlin Fund. In May 2025, the company completed an $21 million Series B round led by Harvest Oriental and LCV Pathfinder.

PPIO’s core business segments include edge cloud services and AI cloud computing, serving major telecom operators China Mobile, China Unicom, and China Telecom, alongside cloud giants like Alibaba Cloud.

The company’s computing network covers over 1,200 counties globally with more than 4,000 nodes, supporting over 120,000 registered developers. Its average daily AI token consumption surged from 27.1 billion in December 2024 to 141.9 billion in May 2025, positioning PPIO as one of China’s leading independent AI cloud providers.

Despite rapid revenue growth from RMB 286 million in 2022 to RMB 558 million in 2024, a CAGR of 39.7%, PPIO remains unprofitable, with cumulative losses around RMB 568 million primarily due to share-based payments, convertible preferred shares fair value losses, and heavy R&D investment.

Adjusted net losses totaled approximately RMB 138 million over the same period. The company flagged that future profitability depends on successful technology development, user growth, effective monetization, and operational efficiency. Costs are expected to rise as PPIO scales its AI cloud services and meets public company compliance demands.

In 2024, edge node services accounted for 70% of revenue, edge CDN services 28.1%, and AI cloud computing 1.9%. PPIO’s R&D spending and computing resource costs have grown steadily, underscoring its commitment to technological leadership.

Credit risk is a concern given PPIO’s typical one- to three-month client credit terms, with trade receivables rising from RMB 72.6 million in 2022 to RMB 150.1 million in 2024. The company’s net liabilities also increased significantly, with RMB 114 million cash on hand at year-end 2024.

Yao said the long-standing imbalance between demand and supply in computing power, forecasting that AI model inference costs could fall by over a thousandfold within three years. He envisions a near future where China’s AI sector enters a “free application” era, as inference costs drop below revenue from advertising and value-added services.

Looking ahead, PPIO aims to leverage its IPO proceeds to enhance distributed cloud technologies, upgrade its multimodal AI platform, solidify market share domestically, and pursue expansion into mature and emerging overseas markets.

Seasoned entrepreneurs always view technology from a market perspective, not just technical research. While technological maturity is inevitable, timing is uncertain. All we can do is prepare and wait for the right cycle, Yao noted.

(Note: 1 USD equals about RMB 7.25)