Wangsu Technology reports strong growth in 2022

By PENG Xin

Wangsu Technology, a leading content delivery network (CDN), has released its 2022 financial report. The company achieved revenue of 5.1 billion yuan (US$350 million), an increase of 11.1 percent. Gross profit stood at 1.3 billion yuan, up by 15.1 percent. Net profit of 190 million yuan, up 15.3 percent.

CDN and edge computing generated 4.8 billion yuan, an increase of 11 percent. CDN is the company's main revenue source. CDN providers typically serve large customers such as live streaming software and video websites.

The CDN industry in China faced intense competition a few years ago, resulting in falling prices and profit margins. However, the situation changed in 2022 when cloud providers shifted their focus from revenue growth to profitability. As a result, the price war in the CDN market subsided, leading to an increase in the gross profit margin for Wangsu Technology's CDN and edge computing business, which reached 26.5 percent, up by 1.2 percent.

Besides the CDN business, Wangsu has explored cloud security and liquid-cooled servers. In 2022, Wangsu launched a security product for API services and announced a 210 million yuan upgrade to its cloud security platform.

Wangsu's overseas business has continued to grow, with its overseas revenue reaching 1.9 billion yuan, up by 22.2 percent. Overseas revenue accounted for 37.3 percent of the company's overall revenue in 2022.