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Key Takeaways:
GreenCloud software has filed for a Hong Kong IPO, reporting its net profit increased by 7% in the first nine months of last year
The provider of software used by hotel operators gets nearly all of its revenue from China
The digital economy has wormed its way into just about everything, bringing not only convenience to consumers but also letting enterprises manage their daily operations more efficiently. After riding that tide to riches with its digital services for the hospitality industry, Hangzhou GreenCloud Software Co. Ltd. is now hoping to sell investors on its story with an IPO to capitalize on Hong Kong's recent strong appetite for just about any type of tech stock.
GreenCloud was established in 2010, and primarily provides property management system (PMS) solutions for hotels. The company made an important adjustment in early 2013 in response to market changes, segmenting its service to focus on two distinct markets: mid-to-high-end hotels on one hand, and mid-to-budget hotels on the other. It went on to bring in multiple new shareholders, including Shanghai Kehui, an entity controlled via contractual arrangements by leading online travel agent Trip.com.
The accommodation sector where GreenCloud operates refers not only to hotels, but also accommodations in cultural tourism complexes and homestays, among others. The global market for such services reached 6.4 trillion yuan ($926 billion) in 2024, with China's sector valued at 975.1 billion yuan that year. As the global economy gradual recovers post-pandemic, China's market is expected to grow roughly 6.7% annually between 2024 and 2029 to reach 1.3 trillion yuan in 2029.
Hotels still make up the big majority of the accommodation sector in China, accounting for nearly 90% of its domestic market in 2024, worth 875.8 billion yuan that year. While the hotel service industry traditionally relied heavily on laborers like reservation ...
