Chinese video player and online video provider Baofeng has got listed on Shenzhen GEM (growth enterprise market) on March 24th to raise RMB510 million (US$82 million) funding. Baofeng closed up 44% on the debut day, raising the company’s market cap to RMB1.23 billion.
The company’s founder Zhou Shengjun started Baofeng as a desktop video player in 2003, and soon the service became a favored service for most Chinese users in the PC age.
Baofeng has made several shifts in strategy and technology focus in the following years to keep up with the ever-changing market. Since 2008, it transformed to be a tool streaming content from providers such as Youku when video streaming becoming ubiquitous.
With rise of smart device craze, the company explored virtual reality sector with the launch of a budget VR handset last year. In combination with its video services, VR business will be Baofeng’s key development direction in the future, said Company CEO Feng Xin at the IPO listing ceremony this week.
The 12-year-old company has more than 50 million daily active users and above 200 million active users per month, Feng noted.
Different from other online video services, Baofeng has been recording profits, mainly from advertising, premium subscriptions and gaming. According to the prospectus, the firm has generated a revenue of RMB386 million in 2014, up 18.92% YOY from RMB325 million in 2013. The net profit climbed 8.61% YOY to RMB41.85 million in 2014. Its clients include big names like Taobao, JD, Baidu, Yum!, among others.
Although the road to an IPO is rarely smooth for any company, but it’s fair to say that Baofeng’s journey has been one of the bumpier ones. The Beijing-headquartered firm has filed for IPO two times, once on the U.S. stock market in 2011 and the other one on Shenzhen GEB in 2012, before the milestone finally come into view this week.