Cloopen Group Holding Limited

OTCPK:RAAS.Y Stock Report

Market Cap: US$110.6m

Cloopen Group Holding Balance Sheet Health

Financial Health criteria checks 6/6

Cloopen Group Holding has a total shareholder equity of CN¥831.9M and total debt of CN¥0.0, which brings its debt-to-equity ratio to 0%. Its total assets and total liabilities are CN¥1.4B and CN¥544.3M respectively.

Key information

0%

Debt to equity ratio

CN¥0

Debt

Interest coverage ration/a
CashCN¥908.43m
EquityCN¥831.93m
Total liabilitiesCN¥544.33m
Total assetsCN¥1.38b

Recent financial health updates

Recent updates

Seeking Alpha • Sep 16

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

Summary 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. Cloopen shares dropped 7% after its announcement last week. But at their latest close of $1.01, we should also note the stock is up nearly 30% from where it traded. A couple of new announcements involving internal investigations results for two U.S.-listed Chinese companies are showing why we need the agreement reached last month giving the U.S. securities regulator authority to directly investigate such firms. The group has basically been allowed to self-police itself in the more than two decades since Chinese companies began listing in the U.S., which is hardly reassuring coming from a country where inflating data is almost an ingrained part of the business culture. The practice of inflating data certainly isn’t new, and seems to originate in China’s planned economic era where people were always trying to please their bosses by not only meeting, but often exceeding, their targets. Supervisors often claim ignorance in such situations and pin the blame on rogue underlings. But the reality is that people throughout such organizations are usually responsible, since bosses often pressure their underlings to achieve impossible targets and then pretend not to notice when they know the results they receive are probably exaggerated. Results of the latest internal investigations are coming from cloud services company Cloopen Group Holding Ltd. (RAAS) and retailer Miniso Group Holding Ltd. (MNSO; 9896.HK). Cloopen launched its investigation in May after its former auditor, the China affiliate of KPMG, uncovered evidence of revenue inflation and resigned. Miniso launched its investigation after a short seller accused the company in July of exaggerating its franchise model. These two internal investigations follow two similar ones, including one that we wrote about earlier this week involving online grocer Missfresh (MF), also alleging revenue inflation; and another more famous one in 2020 involving coffee chain Luckin (LKNCY), also involving revenue inflation on a massive scale. In all four cases, suspicions of wrongdoing came from short-seller reports or from the companies’ auditors. In each case, the U.S. Securities and Exchange Commission (SEC) was presumably relegated to the sidelines due to previous Chinese prohibitions banning it from conducting its own investigations. We’ll end the suspense now by saying Cloopen’s investigation found that revenue inflation did indeed occur, though it was less than initially suspected. Meanwhile, Miniso said its investigation found no evidence of wrongdoing. Investors didn’t seem too convinced by either report. Cloopen shares dropped 7% after its announcement last week. But at their latest close of $1.01, we should also note the stock is up nearly 30% from where it traded just before initial announcement of the investigation in May. That seems to indicate that perhaps investors are betting that Cloopen has cleaned up its act and they may be willing to have more faith in the company going forward. Miniso shares were down slightly in Thursday trade after it released its announcement clearing itself. But at its latest close of $5.50, the stock is now at roughly the level it tumbled to after short seller Blue Orca Capital issued its report accusing the company of misrepresenting its franchise model because many of its franchisees were, in fact, invested by the company’s owner. The stock last closed at $7.21 before the short-seller report’s release, meaning the lukewarm response to results of the investigation may show investors remain skeptical about the company. Less-than-expected revenue inflation With all that big-picture background, we’ll take a closer look at the findings of both reports, starting with Cloopen. The company raised $320 million in its New York IPO in February last year, making it one of the last major Chinese listings in New York before most such listings ground to halt starting around July last year. Somewhat ironically, the amount of money Cloopen raised is now roughly double the company’s latest market value of $166 million, showing just how far the stock has fallen from its IPO price of $16. Cloopen said its investigation found its revenue was inflated by 11.6 million yuan ($1.7 million) in last year’s second quarter, representing 4% of the total. The figure was inflated by 17.8 million yuan in the third quarter, or 6% of the total. While any inflation is never good, those figures were lower than the company’s original estimate saying that 5% to 10% of second quarter revenue and 15% to 20% of third quarter revenue might be bogus. Cloopen added the investigation also found that its costs and expenses were inflated by 9.2 million yuan and 1.8 million yuan in last year’s second and third quarters, respectively. The company hasn’t reported any financial results since last year’s third quarter due to the investigation. But it said in its latest announcement that its fourth quarter results from last year “would also fall significantly below its previously announced revenue guidance” of 328 million yuan to 333 million yuan given last November with its third quarter results. Cloopen said it has taken corrective measures, including closing some business departments involved in the fraud and getting rid of or disciplining employees involved. It added the investigation “did not uncover any evidence indicating that the company’s CEO or CFO had participated in the employee misconduct and transaction irregularities.”
Seeking Alpha • Sep 07

Cloopen regains compliance with NYSE minimum price requirement

Cloopen Group (NYSE:RAAS) received letter from the NYSE on September 1, 2022 stating the company has regained compliance with the NYSE's continued listing standard for minimum share price. On May 31, 2022, the NYSE notified the company that it was not in compliance with minimum price requirement.
Seeking Alpha • Jun 29

Cloopen receives NYSE non-compliance letter regarding ADS trading price

Cloopen Group (NYSE:RAAS) received NYSE non-compliance letter dated May 31, 2022, notifying the company that it is below compliance standards due to it's ADSs trading price. The applicable cure period for the company to regain compliance expires on November 30, 2022. The company must bring its share price and average share price back above $1.00 by six months following receipt of the notification.  The company can also demonstrate an accelerated cure based on a $1.00 share price on both the last trading day of any calendar month within the six-month cure period and the average share price over the 30 trading days preceding the end of that month. The company intends to monitor the market conditions of its listed securities and is still considering its options.
Seeking Alpha • Mar 15

Cloopen Group Seeks Growth Through Tencent Deal

Cloopen Group Holding went public in February 2021, raising $320 million in gross proceeds in a U.S. IPO. The firm provides a full suite of cloud-based communications software and services to Chinese companies. RAAS continues to grow but hasn't made any progress toward operating breakeven. While it shows promise with a strategic agreement with Tencent, my outlook on the stock is Neutral.
Seeking Alpha • Aug 19

Cloud Specialist Cloopen Remains Stuck On Earth

Cloopen shares initially soared 24% following the Aug. 11 release of its second quarter results, as it reported healthy revenue growth while still losing money. Cloopen’s stock woes date back to late March when its shares first fell below their IPO price. Cloopen CEO Sun Changxun said on the earnings call he was confident about the company’s future, pointing to a $14.7 billion deal by video-conferencing platform Zoom last month to acquire Five9, a cloud contact center provider.

Financial Position Analysis

Short Term Liabilities: RAAS.Y's short term assets (CN¥1.2B) exceed its short term liabilities (CN¥540.5M).

Long Term Liabilities: RAAS.Y's short term assets (CN¥1.2B) exceed its long term liabilities (CN¥3.9M).

Debt to Equity History and Analysis

Debt Level: RAAS.Y is debt free.

Reducing Debt: RAAS.Y has no debt compared to 5 years ago when its debt to equity ratio was 10.2%.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RAAS.Y has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: RAAS.Y has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 5% each year

Discover healthy companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/18 09:27
End of Day Share Price 2026/06/18 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Cloopen Group Holding Limited is covered by 4 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Citi ResearchCitigroup Inc
Mark LiCitigroup Inc
Huiqun LiCitigroup Inc