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Bloomberg
10 hours ago
- Business
- Bloomberg
Kingsoft Cloud CFO on China AI Trends
Bloomberg Insight Henry He, CFO at Kingsoft Cloud, discusses the trends and opportunities with AI in China. He speaks with Bloomberg's Stephen Engle on the sidelines of the World Economic Forum in Tianjin. (Source: Bloomberg)
Yahoo
13-06-2025
- Business
- Yahoo
Kingsoft Cloud Announces Unaudited First Quarter 2025 Financial Results
BEIJING, May 28, 2025 /PRNewswire/ -- Kingsoft Cloud Holdings Limited ("Kingsoft Cloud" or the "Company") (NASDAQ: KC and HKEX: 3896), a leading cloud service provider in China, today announced its unaudited financial results for the first quarter ended March 31,2025. Mr. Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented, "Despite uncertainties in global supply chain, we believe the importance for cloud services as infrastructure in the AI-era is gaining greater traction. This quarter, our gross billing of AI business increased by 228% year- over-year to RMB525 million, accounting for 39% of our public cloud services. We are confident and fully committed into our AI related investment and high-quality and sustainable business development." Mr. Henry He, Chief Financial Officer of Kingsoft Cloud, added, "Our revenue increased by 10.9% year-over-year, achieving RMB1,970.0 million for the first quarter; however sequentially we experienced seasonal decrease. Our adjusted gross profit was RMB327.7 million, increased by 9.6% year-over-year and decreased by 23.4% quarter-over-quarter. Adjusted gross margin was 16.6% in this quarter, compared with 16.8% in the first quarter 2024 and 19.2% in the fourth quarter last year. Our adjusted operating loss was RMB55.8 million, narrowed by 56% from RMB127.0 million in the same period last year. Our adjusted EBITDA profit achieved RMB318.5 million, representing an adjusted EBITDA margin of 16.2%" First Quarter 2025 Financial Results Total Revenues reached RMB1,970.0 million (US$271.5[1] million), increased by 10.9% year-over-year from RMB1,775.7 million in the same quarter of 2024 and decreased by 11.7% quarter-over-quarter from RMB2,232.1million in the fourth quarter of 2024. The year-over-year increase was mainly due to the expanded revenue from Xiaomi and Kingsoft Ecosystem and AI related customers and our further penetration into enterprise cloud customers. The quarter-over-quarter decrease was mainly due to the seasonality impact for enterprise cloud. Revenues from public cloud services were RMB1,353.5 million (US$186.5 million), increased by 14.0% from RMB1,187.4 million in the same quarter of 2024 and decreased by 4.0% from RMB1,409.8 million last quarter. The year-over-year increase was mainly due to the growth of AI demands. Revenues from enterprise cloud services were RMB616.5 million (US$85.0 million), representing an increase of 4.8% from RMB588.2 million in the same quarter of 2024 and a decrease of 25.0% from RMB822.3 million last quarter. The sequential decrease was mainly due to the Chinese New Year impact and differentiated delivery schedules for various projects. Other revenues were nil this quarter. Cost of revenues was RMB1,651.7 million (US$227.6 million), representing an increase of 11.4% from RMB1,482.4 million in the same quarter of 2024, which was mainly due to our investment into AI computing resources. IDC costs decreased by 6.0% year-over-year from RMB768.5 million to RMB722.8 million (US$99.6 million) this quarter. The decrease was mainly due to our strict control over procurement costs. Depreciation and amortization costs increased from RMB183.5 million in the same quarter of 2024 to RMB378.5 million (US$52.2 million) this quarter. The increase was mainly due to the depreciation of newly acquired servers which were allocated to AI business. Solution development and services costs increased by 13.3% year-over-year from RMB446.0 million in the same quarter of 2024 to RMB505.2 million (US$69.6 million) this quarter. The increase was mainly due to the solution personnel expansion of Camelot. Fulfillment costs and other costs were RMB3.1 million (US$0.4 million) and RMB42.1 million (US$5.8 million) this quarter. Gross profit was RMB318.3 million (US$43.9 million), representing an increase of 8.5% from RMB293.3 million in the same quarter of 2024, demonstrating our improvements in revenue quality and structure. Gross margin was 16.2%, remaining stable compared with 16.5% in the same period in 2024. Non-GAAP gross profit[2] was RMB327.7 million (US$45.2 million), compared with RMB299.1 million in the same period in 2024. Non-GAAP gross margin[2] was 16.6%, compared with 16.8% in the same period in 2024. The improvement of our gross profit was mainly due to the decrease of procurement costs. The sequential decrease of gross margin was mainly due to the growing investment into AI and the delay of high-margin profile enterprise cloud projects in first quarter. Total operating expenses were RMB552.5 million (US$76.1 million), decreased by 2.6% from RMB567.4 million in the same quarter last year and increased by 17.7% from RMB469.5 million last quarter. Among which: Selling and marketing expenses were RMB144.3 million (US$19.9 million), increased by 23.6% from RMB116.8 million in the same period in 2024 and increased by 24.7% from RMB115.8 million last quarter. The increase was due to the increase of one-time-off bonus of share based compensation. General and administrative expenses were RMB182.0million (US$25.1million), decreased by 16.8% from RMB218.7 million in the same period in 2024 and slightly increased by 1.4% from RMB179.5 million last quarter. The year-over-year decrease was mainly due to the decrease of credit loss expense, which was partially offset by the increase of share based compensation. Research and development expenses were RMB226.2 million (US$31.2 million), decreased by 2.5% from RMB232.0 million in the same period in 2024 and increased by 29.9% from RMB174.2 million last quarter. The increase was mainly due to our continuous investment into research and development personnel to enhance our technology competitiveness and increase of share based compensation. Operating loss was RMB234.2 million (US$32.3 million), compared with operating loss of RMB274.2 million in the same quarter of 2024 and RMB43.5 million last quarter. The year-over-year improvement was mainly due to the increase of gross profit and our strict expenses control, while the sequential increase was mainly due to the impact of gross profit and increase of shared based compensation. Non-GAAP operating loss[3] was RMB55.8 million (US$7.7 million), compared with operating loss of RMB127.0 million in the same quarter last year and operating profit of RMB24.4 million last quarter. Net loss was RMB316.1 million (US$43.6 million), compared with net loss of RMB363.6 million in the same quarter of 2024 and RMB200.6 million last quarter. Non-GAAP net loss[4] was RMB190.6 million (US$26.3 million), compared with RMB217.3 million in the same quarter of 2024 and RMB70.3 million last quarter. The year-over-year improvement was mainly due to the revenue quality increase, revenue mix adjustment, strict costs control and expenses control. The quarter-over-quarter decrease was mainly due to the seasonality impact. Non-GAAP EBITDA[5] was RMB318.5 million (US$43.9 million), compared with RMB33.2 million in the same quarter of 2024 and RMB359.7 million last quarter. Non-GAAP EBITDA margin was 16.2%, compared with 1.9% in the same quarter of 2024 and 16.1% in the previous quarter. The increase was mainly due to the expansion of AI businesses with higher margin. Basic and diluted net loss per share was RMB0.08 (US$0.01), compared with RMB0.10 in the same quarter of 2024 and RMB0.05 last quarter. Cash and cash equivalents were RMB2,322.7 million (US$320.1 million) as of March 31, 2025, compared with RMB2,648.8 million as of December 31, 2024. The decrease was mainly due to the investment into operation and the investment into the procurement of computing power equipment. Outstanding ordinary shares were 3,703,014,637 as of March 31, 2025, equivalent to about 246,867,642 ADSs. [1] This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 as certified for customs purposes by the Federal Reserve Bank of New York. [2] Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [3] Non-GAAP operating (loss) profit is defined as operating loss excluding share-based compensation and amortization of intangible assets and we define Non-GAAP operating (loss) profit margin as Non-GAAP operating (loss) profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [4] Non-GAAP net loss is defined as net loss excluding share-based compensation and foreign exchange loss (gain), and we define Non-GAAP net loss margin as adjusted net loss as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [5] Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax (benefit) expense and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. Conference Call Information Kingsoft Cloud's management will host an earnings conference call on Wednesday, May 28, 2025 at 8:15 am, U.S. Eastern Time (8:15 pm, Beijing/Hong Kong Time on the same day). Participants can register for the conference call by navigating to Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique access PIN. To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly. Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating (loss) profit, Non-GAAP operating (loss) profit margin, Non-GAAP EBITDA, Non-GAAP EBITDA margin, Non-GAAP net loss and Non-GAAP net loss margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non-GAAP gross profit as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. We define Non-GAAP operating (loss) profit as operating loss excluding share-based compensation and amortization of intangible assets and we define Non-GAAP operating (loss) profit margin as Non-GAAP operating (loss) profit as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation and foreign exchange loss (gain), and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax (benefit) expense and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors ' assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 as certified for customs purposes by the Federal Reserve Bank of New York. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the " safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the Business Outlook, and quotations from management in this announcement, as well as Kingsoft Cloud's strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud's goals and strategies; Kingsoft Cloud's future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud 's business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud's ability to monetize the customer base; fluctuations in general economic and business conditions in China; and the economy in China and elsewhere generally; China's political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law. About Kingsoft Cloud Holdings Limited Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX:3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals. For more information, please visit: For investor and media inquiries, please contact: Kingsoft Cloud Holdings Limited Nicole ShanTel: +86 (10) 6292-7777 Ext. 6300Email: ksc-ir@ KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands)Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB US$ ASSETSCurrent assets:Cash and cash equivalents 2,648,764 2,322,674 320,073 Restricted cash 81,337 63,670 8,774 Accounts receivable, net 1,468,663 1,807,011 249,013 Short-term investments 90,422 60,245 8,302 Prepayments and other assets 2,233,074 2,254,813 310,722 Amounts due from related parties 318,526 629,876 86,799 Total current assets 6,840,786 7,138,289 983,683 Non-current assets:Property and equipment, net 4,630,052 6,514,205 897,681 Intangible assets, net 694,880 660,926 91,078 Goodwill 4,605,724 4,605,724 634,686 Prepayments and other assets 449,983 444,555 61,261 Equity investments 234,182 232,790 32,079 Operating lease right-of-use assets 137,047 124,585 17,168 Total non-current assets 10,751,868 12,582,785 1,733,953 Total assets 17,592,654 19,721,074 2,717,636 LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable 1,877,004 2,040,574 281,199 Accrued expenses and other current liabilities 3,341,990 3,616,908 498,423 Short-term borrowings 2,225,765 2,550,970 351,533 Income tax payable 69,219 75,532 10,409 Amounts due to related parties 1,584,199 1,471,400 202,764 Current operating lease liabilities 61,258 42,459 5,851 Total current liabilities 9,159,435 9,797,843 1,350,179 Non-current liabilities:Long-term borrowings 1,660,584 1,997,371 275,245 Amounts due to related parties 309,612 494,982 68,210 Deferred tax liabilities 101,677 89,725 12,364 Other liabilities 790,271 1,932,576 266,316 Non-current operating lease liabilities 65,755 63,932 8,810 Total non-current liabilities 2,927,899 4,578,586 630,945 Total liabilities 12,087,334 14,376,429 1,981,124 Shareholders' equity:Ordinary shares 25,689 25,689 3,540 Treasury stock (105,478) (88,114) (12,142) Additional paid-in capital 18,940,885 19,071,212 2,628,083 Statutory reserves funds 32,001 32,001 4,410 Accumulated deficit (14,291,957) (14,605,883) (2,012,744) Accumulated other comprehensive income 566,900 574,660 79,190 Total Kingsoft Cloud Holdings Limited shareholders' equity 5,168,040 5,009,565 690,337 Non-controlling interests 337,280 335,080 46,175 Total equity 5,505,320 5,344,645 736,512 Total liabilities, non-controlling interests and shareholders' equity 17,592,654 19,721,074 2,717,636 KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (All amounts in thousands, except for share and per share data)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Revenues: Public cloud services 1,187,370 1,409,804 1,353,479 186,514 Enterprise cloud services 588,162 822,338 616,498 84,956 Others 152 - - - Total revenues 1,775,684 2,232,142 1,969,977 271,470 Cost of revenues (1,482,431) (1,806,170) (1,651,671) (227,606) Gross profit 293,253 425,972 318,306 43,864 Operating expenses: Selling and marketing expenses (116,752) (115,792) (144,338) (19,890) General and administrative expenses (218,695) (179,536) (181,999) (25,080) Research and development expenses (231,963) (174,155) (226,170) (31,167) Total operating expenses (567,410) (469,483) (552,507) (76,137) Operating loss (274,157) (43,511) (234,201) (32,273) Interest income 8,370 4,176 4,946 682 Interest expense (51,066) (61,821) (82,897) (11,424) Foreign exchange (loss) gain (42,737) (105,572) 9,051 1,247 Other (loss) gain, net (8,207) (2,956) 3,244 447 Other (expense) income, net (11,190) 5,336 (7,012) (966) Loss before income taxes (378,987) (204,348) (306,869) (42,287) Income tax benefit (expense) 15,371 3,706 (9,241) (1,273) Net loss (363,616) (200,642) (316,110) (43,560) Less: net loss attributable to non-controlling interests (4,206) (3,683) (2,184) (301) Net loss attributable to Kingsoft Cloud Holdings Limited (359,410) (196,959) (313,926) (43,259)Net loss per share: Basic and diluted (0.10) (0.05) (0.08) (0.01) Shares used in the net loss per share computation: Basic and diluted 3,614,662,846 3,710,632,202 3,728,092,123 3,728,092,123 Other comprehensive income, net of tax of nil: Foreign currency translation adjustments 20,704 103,658 7,744 1,067 Comprehensive loss (342,912) (96,984) (308,366) (42,493) Less: Comprehensive loss attributable to non-controlling interests (4,247) (3,667) (2,200) (303) Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders (338,665) (93,317) (306,166) (42,190) KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Gross profit 293,253 425,972 318,306 43,864 Adjustments: – Share-based compensation expenses (allocated in cost of revenues) 5,814 1,726 9,365 1,291 Adjusted gross profit (Non-GAAP Financial Measure) 299,067 427,698 327,671 45,155 KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Gross margin 16.5 % 19.1 % 16.2 % Adjusted gross margin (Non-GAAP Financial Measure) 16.8 % 19.2 % 16.6 % KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Net Loss (363,616) (200,642) (316,110) (43,560) Adjustments: – Share-based compensation expenses 103,595 24,774 134,611 18,550 – Foreign exchange loss (gain) 42,737 105,572 (9,051) (1,247) Adjusted net loss (Non-GAAP Financial Measure) (217,284) (70,296) (190,550) (26,257) Adjustments: – Interest income (8,370) (4,176) (4,946) (682) – Interest expense 51,066 61,821 82,897 11,424 – Income tax (benefit) expense (15,371) (3,706) 9,241 1,273 – Depreciation and amortization 223,146 376,100 421,901 58,140 Adjusted EBITDA (Non-GAAP Financial Measure) 33,187 359,743 318,543 43,898 – Gain on disposal of property and equipment (23,821) (10,137) (2,110) (291) Excluding gain on disposal of property and equipment, normalized Adjusted EBITDA 9,366 349,606 316,433 43,607 KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Operating loss (274,157) (43,511) (234,201) (32,273) Adjustments: – Share-based compensation expenses 103,595 24,774 134,611 18,550 – Amortization of intangible assets 43,517 43,104 43,781 6,033 Adjusted operating (loss) profit (Non-GAAP Financial Measure) (127,045) 24,367 (55,809) (7,690) – Gain on disposal of property and equipment (23,821) (10,137) (2,110) (291) Excluding gain on disposal of property and equipment, normalized Adjusted operating (loss) profit (150,866) 14,230 (57,919) (7,981) KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Net loss margin -20.5 % -9.0 % -16.0 % Adjusted net loss margin (Non-GAAP Financial Measure) -12.2 % -3.1 % -9.7 % Adjusted EBITDA margin (Non-GAAP Financial Measure) 1.9 % 16.1 % 16.2 % Normalized Adjusted EBITDA margin 0.5 % 15.7 % 16.1 % Adjusted operating (loss) profit margin (Non-GAAP Financial Measure) -7.2 % 1.1 % -2.8 % Normalized Adjusted operating (loss) profit margin -8.5 % 0.6 % -2.9 % KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (All amounts in thousands)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Net cash (used in) generated from operating activities (321,336) 570,222 (418,390) (57,656) Net cash used in investing activities (1,169,017) (1,337,978) (490,393) (67,578) Net cash generated from financing activities 1,112,096 1,802,762 549,998 75,792 Effect of exchange rate changes on cash, cash equivalents and restricted cash (20,464) (15,294) 15,028 2,071 Net (decrease) increase in cash, cash equivalents and restricted cash (398,721) 1,019,712 (343,757) (47,371) Cash, cash equivalents and restricted cash at beginning of period 2,489,481 1,710,389 2,730,101 376,218 Cash, cash equivalents and restricted cash at end of period 2,090,760 2,730,101 2,386,344 328,847 View original content: SOURCE Kingsoft Cloud Holdings Limited Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Kingsoft Cloud Announces Unaudited First Quarter 2025 Financial Results
BEIJING, May 28, 2025 /PRNewswire/ -- Kingsoft Cloud Holdings Limited ("Kingsoft Cloud" or the "Company") (NASDAQ: KC and HKEX: 3896), a leading cloud service provider in China, today announced its unaudited financial results for the first quarter ended March 31,2025. Mr. Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented, "Despite uncertainties in global supply chain, we believe the importance for cloud services as infrastructure in the AI-era is gaining greater traction. This quarter, our gross billing of AI business increased by 228% year- over-year to RMB525 million, accounting for 39% of our public cloud services. We are confident and fully committed into our AI related investment and high-quality and sustainable business development." Mr. Henry He, Chief Financial Officer of Kingsoft Cloud, added, "Our revenue increased by 10.9% year-over-year, achieving RMB1,970.0 million for the first quarter; however sequentially we experienced seasonal decrease. Our adjusted gross profit was RMB327.7 million, increased by 9.6% year-over-year and decreased by 23.4% quarter-over-quarter. Adjusted gross margin was 16.6% in this quarter, compared with 16.8% in the first quarter 2024 and 19.2% in the fourth quarter last year. Our adjusted operating loss was RMB55.8 million, narrowed by 56% from RMB127.0 million in the same period last year. Our adjusted EBITDA profit achieved RMB318.5 million, representing an adjusted EBITDA margin of 16.2%" First Quarter 2025 Financial Results Total Revenues reached RMB1,970.0 million (US$271.5[1] million), increased by 10.9% year-over-year from RMB1,775.7 million in the same quarter of 2024 and decreased by 11.7% quarter-over-quarter from RMB2,232.1million in the fourth quarter of 2024. The year-over-year increase was mainly due to the expanded revenue from Xiaomi and Kingsoft Ecosystem and AI related customers and our further penetration into enterprise cloud customers. The quarter-over-quarter decrease was mainly due to the seasonality impact for enterprise cloud. Revenues from public cloud services were RMB1,353.5 million (US$186.5 million), increased by 14.0% from RMB1,187.4 million in the same quarter of 2024 and decreased by 4.0% from RMB1,409.8 million last quarter. The year-over-year increase was mainly due to the growth of AI demands. Revenues from enterprise cloud services were RMB616.5 million (US$85.0 million), representing an increase of 4.8% from RMB588.2 million in the same quarter of 2024 and a decrease of 25.0% from RMB822.3 million last quarter. The sequential decrease was mainly due to the Chinese New Year impact and differentiated delivery schedules for various projects. Other revenues were nil this quarter. Cost of revenues was RMB1,651.7 million (US$227.6 million), representing an increase of 11.4% from RMB1,482.4 million in the same quarter of 2024, which was mainly due to our investment into AI computing resources. IDC costs decreased by 6.0% year-over-year from RMB768.5 million to RMB722.8 million (US$99.6 million) this quarter. The decrease was mainly due to our strict control over procurement costs. Depreciation and amortization costs increased from RMB183.5 million in the same quarter of 2024 to RMB378.5 million (US$52.2 million) this quarter. The increase was mainly due to the depreciation of newly acquired servers which were allocated to AI business. Solution development and services costs increased by 13.3% year-over-year from RMB446.0 million in the same quarter of 2024 to RMB505.2 million (US$69.6 million) this quarter. The increase was mainly due to the solution personnel expansion of Camelot. Fulfillment costs and other costs were RMB3.1 million (US$0.4 million) and RMB42.1 million (US$5.8 million) this quarter. Gross profit was RMB318.3 million (US$43.9 million), representing an increase of 8.5% from RMB293.3 million in the same quarter of 2024, demonstrating our improvements in revenue quality and structure. Gross margin was 16.2%, remaining stable compared with 16.5% in the same period in 2024. Non-GAAP gross profit[2] was RMB327.7 million (US$45.2 million), compared with RMB299.1 million in the same period in 2024. Non-GAAP gross margin[2] was 16.6%, compared with 16.8% in the same period in 2024. The improvement of our gross profit was mainly due to the decrease of procurement costs. The sequential decrease of gross margin was mainly due to the growing investment into AI and the delay of high-margin profile enterprise cloud projects in first quarter. Total operating expenses were RMB552.5 million (US$76.1 million), decreased by 2.6% from RMB567.4 million in the same quarter last year and increased by 17.7% from RMB469.5 million last quarter. Among which: Selling and marketing expenses were RMB144.3 million (US$19.9 million), increased by 23.6% from RMB116.8 million in the same period in 2024 and increased by 24.7% from RMB115.8 million last quarter. The increase was due to the increase of one-time-off bonus of share based compensation. General and administrative expenses were RMB182.0million (US$25.1million), decreased by 16.8% from RMB218.7 million in the same period in 2024 and slightly increased by 1.4% from RMB179.5 million last quarter. The year-over-year decrease was mainly due to the decrease of credit loss expense, which was partially offset by the increase of share based compensation. Research and development expenses were RMB226.2 million (US$31.2 million), decreased by 2.5% from RMB232.0 million in the same period in 2024 and increased by 29.9% from RMB174.2 million last quarter. The increase was mainly due to our continuous investment into research and development personnel to enhance our technology competitiveness and increase of share based compensation. Operating loss was RMB234.2 million (US$32.3 million), compared with operating loss of RMB274.2 million in the same quarter of 2024 and RMB43.5 million last quarter. The year-over-year improvement was mainly due to the increase of gross profit and our strict expenses control, while the sequential increase was mainly due to the impact of gross profit and increase of shared based compensation. Non-GAAP operating loss[3] was RMB55.8 million (US$7.7 million), compared with operating loss of RMB127.0 million in the same quarter last year and operating profit of RMB24.4 million last quarter. Net loss was RMB316.1 million (US$43.6 million), compared with net loss of RMB363.6 million in the same quarter of 2024 and RMB200.6 million last quarter. Non-GAAP net loss[4] was RMB190.6 million (US$26.3 million), compared with RMB217.3 million in the same quarter of 2024 and RMB70.3 million last quarter. The year-over-year improvement was mainly due to the revenue quality increase, revenue mix adjustment, strict costs control and expenses control. The quarter-over-quarter decrease was mainly due to the seasonality impact. Non-GAAP EBITDA[5] was RMB318.5 million (US$43.9 million), compared with RMB33.2 million in the same quarter of 2024 and RMB359.7 million last quarter. Non-GAAP EBITDA margin was 16.2%, compared with 1.9% in the same quarter of 2024 and 16.1% in the previous quarter. The increase was mainly due to the expansion of AI businesses with higher margin. Basic and diluted net loss per share was RMB0.08 (US$0.01), compared with RMB0.10 in the same quarter of 2024 and RMB0.05 last quarter. Cash and cash equivalents were RMB2,322.7 million (US$320.1 million) as of March 31, 2025, compared with RMB2,648.8 million as of December 31, 2024. The decrease was mainly due to the investment into operation and the investment into the procurement of computing power equipment. Outstanding ordinary shares were 3,703,014,637 as of March 31, 2025, equivalent to about 246,867,642 ADSs. [1] This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 as certified for customs purposes by the Federal Reserve Bank of New York. [2] Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [3] Non-GAAP operating (loss) profit is defined as operating loss excluding share-based compensation and amortization of intangible assets and we define Non-GAAP operating (loss) profit margin as Non-GAAP operating (loss) profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [4] Non-GAAP net loss is defined as net loss excluding share-based compensation and foreign exchange loss (gain), and we define Non-GAAP net loss margin as adjusted net loss as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [5] Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax (benefit) expense and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. Conference Call Information Kingsoft Cloud's management will host an earnings conference call on Wednesday, May 28, 2025 at 8:15 am, U.S. Eastern Time (8:15 pm, Beijing/Hong Kong Time on the same day). Participants can register for the conference call by navigating to Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique access PIN. To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly. Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating (loss) profit, Non-GAAP operating (loss) profit margin, Non-GAAP EBITDA, Non-GAAP EBITDA margin, Non-GAAP net loss and Non-GAAP net loss margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non-GAAP gross profit as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. We define Non-GAAP operating (loss) profit as operating loss excluding share-based compensation and amortization of intangible assets and we define Non-GAAP operating (loss) profit margin as Non-GAAP operating (loss) profit as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation and foreign exchange loss (gain), and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax (benefit) expense and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors ' assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 as certified for customs purposes by the Federal Reserve Bank of New York. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the " safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the Business Outlook, and quotations from management in this announcement, as well as Kingsoft Cloud's strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud's goals and strategies; Kingsoft Cloud's future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud 's business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud's ability to monetize the customer base; fluctuations in general economic and business conditions in China; and the economy in China and elsewhere generally; China's political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law. About Kingsoft Cloud Holdings Limited Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX:3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals. For more information, please visit: For investor and media inquiries, please contact: Kingsoft Cloud Holdings Limited Nicole ShanTel: +86 (10) 6292-7777 Ext. 6300Email: ksc-ir@ KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands)Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB US$ ASSETSCurrent assets:Cash and cash equivalents 2,648,764 2,322,674 320,073 Restricted cash 81,337 63,670 8,774 Accounts receivable, net 1,468,663 1,807,011 249,013 Short-term investments 90,422 60,245 8,302 Prepayments and other assets 2,233,074 2,254,813 310,722 Amounts due from related parties 318,526 629,876 86,799 Total current assets 6,840,786 7,138,289 983,683 Non-current assets:Property and equipment, net 4,630,052 6,514,205 897,681 Intangible assets, net 694,880 660,926 91,078 Goodwill 4,605,724 4,605,724 634,686 Prepayments and other assets 449,983 444,555 61,261 Equity investments 234,182 232,790 32,079 Operating lease right-of-use assets 137,047 124,585 17,168 Total non-current assets 10,751,868 12,582,785 1,733,953 Total assets 17,592,654 19,721,074 2,717,636 LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable 1,877,004 2,040,574 281,199 Accrued expenses and other current liabilities 3,341,990 3,616,908 498,423 Short-term borrowings 2,225,765 2,550,970 351,533 Income tax payable 69,219 75,532 10,409 Amounts due to related parties 1,584,199 1,471,400 202,764 Current operating lease liabilities 61,258 42,459 5,851 Total current liabilities 9,159,435 9,797,843 1,350,179 Non-current liabilities:Long-term borrowings 1,660,584 1,997,371 275,245 Amounts due to related parties 309,612 494,982 68,210 Deferred tax liabilities 101,677 89,725 12,364 Other liabilities 790,271 1,932,576 266,316 Non-current operating lease liabilities 65,755 63,932 8,810 Total non-current liabilities 2,927,899 4,578,586 630,945 Total liabilities 12,087,334 14,376,429 1,981,124 Shareholders' equity:Ordinary shares 25,689 25,689 3,540 Treasury stock (105,478) (88,114) (12,142) Additional paid-in capital 18,940,885 19,071,212 2,628,083 Statutory reserves funds 32,001 32,001 4,410 Accumulated deficit (14,291,957) (14,605,883) (2,012,744) Accumulated other comprehensive income 566,900 574,660 79,190 Total Kingsoft Cloud Holdings Limited shareholders' equity 5,168,040 5,009,565 690,337 Non-controlling interests 337,280 335,080 46,175 Total equity 5,505,320 5,344,645 736,512 Total liabilities, non-controlling interests and shareholders' equity 17,592,654 19,721,074 2,717,636 KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (All amounts in thousands, except for share and per share data)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Revenues: Public cloud services 1,187,370 1,409,804 1,353,479 186,514 Enterprise cloud services 588,162 822,338 616,498 84,956 Others 152 - - - Total revenues 1,775,684 2,232,142 1,969,977 271,470 Cost of revenues (1,482,431) (1,806,170) (1,651,671) (227,606) Gross profit 293,253 425,972 318,306 43,864 Operating expenses: Selling and marketing expenses (116,752) (115,792) (144,338) (19,890) General and administrative expenses (218,695) (179,536) (181,999) (25,080) Research and development expenses (231,963) (174,155) (226,170) (31,167) Total operating expenses (567,410) (469,483) (552,507) (76,137) Operating loss (274,157) (43,511) (234,201) (32,273) Interest income 8,370 4,176 4,946 682 Interest expense (51,066) (61,821) (82,897) (11,424) Foreign exchange (loss) gain (42,737) (105,572) 9,051 1,247 Other (loss) gain, net (8,207) (2,956) 3,244 447 Other (expense) income, net (11,190) 5,336 (7,012) (966) Loss before income taxes (378,987) (204,348) (306,869) (42,287) Income tax benefit (expense) 15,371 3,706 (9,241) (1,273) Net loss (363,616) (200,642) (316,110) (43,560) Less: net loss attributable to non-controlling interests (4,206) (3,683) (2,184) (301) Net loss attributable to Kingsoft Cloud Holdings Limited (359,410) (196,959) (313,926) (43,259)Net loss per share: Basic and diluted (0.10) (0.05) (0.08) (0.01) Shares used in the net loss per share computation: Basic and diluted 3,614,662,846 3,710,632,202 3,728,092,123 3,728,092,123 Other comprehensive income, net of tax of nil: Foreign currency translation adjustments 20,704 103,658 7,744 1,067 Comprehensive loss (342,912) (96,984) (308,366) (42,493) Less: Comprehensive loss attributable to non-controlling interests (4,247) (3,667) (2,200) (303) Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders (338,665) (93,317) (306,166) (42,190) KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Gross profit 293,253 425,972 318,306 43,864 Adjustments: – Share-based compensation expenses (allocated in cost of revenues) 5,814 1,726 9,365 1,291 Adjusted gross profit (Non-GAAP Financial Measure) 299,067 427,698 327,671 45,155 KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Gross margin 16.5 % 19.1 % 16.2 % Adjusted gross margin (Non-GAAP Financial Measure) 16.8 % 19.2 % 16.6 % KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Net Loss (363,616) (200,642) (316,110) (43,560) Adjustments: – Share-based compensation expenses 103,595 24,774 134,611 18,550 – Foreign exchange loss (gain) 42,737 105,572 (9,051) (1,247) Adjusted net loss (Non-GAAP Financial Measure) (217,284) (70,296) (190,550) (26,257) Adjustments: – Interest income (8,370) (4,176) (4,946) (682) – Interest expense 51,066 61,821 82,897 11,424 – Income tax (benefit) expense (15,371) (3,706) 9,241 1,273 – Depreciation and amortization 223,146 376,100 421,901 58,140 Adjusted EBITDA (Non-GAAP Financial Measure) 33,187 359,743 318,543 43,898 – Gain on disposal of property and equipment (23,821) (10,137) (2,110) (291) Excluding gain on disposal of property and equipment, normalized Adjusted EBITDA 9,366 349,606 316,433 43,607 KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Operating loss (274,157) (43,511) (234,201) (32,273) Adjustments: – Share-based compensation expenses 103,595 24,774 134,611 18,550 – Amortization of intangible assets 43,517 43,104 43,781 6,033 Adjusted operating (loss) profit (Non-GAAP Financial Measure) (127,045) 24,367 (55,809) (7,690) – Gain on disposal of property and equipment (23,821) (10,137) (2,110) (291) Excluding gain on disposal of property and equipment, normalized Adjusted operating (loss) profit (150,866) 14,230 (57,919) (7,981) KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Net loss margin -20.5 % -9.0 % -16.0 % Adjusted net loss margin (Non-GAAP Financial Measure) -12.2 % -3.1 % -9.7 % Adjusted EBITDA margin (Non-GAAP Financial Measure) 1.9 % 16.1 % 16.2 % Normalized Adjusted EBITDA margin 0.5 % 15.7 % 16.1 % Adjusted operating (loss) profit margin (Non-GAAP Financial Measure) -7.2 % 1.1 % -2.8 % Normalized Adjusted operating (loss) profit margin -8.5 % 0.6 % -2.9 % KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (All amounts in thousands)Three Months EndedMar 31,2024 Dec 31,2024 Mar 31,2025 Mar 31,2025RMB RMB RMB US$ Net cash (used in) generated from operating activities (321,336) 570,222 (418,390) (57,656) Net cash used in investing activities (1,169,017) (1,337,978) (490,393) (67,578) Net cash generated from financing activities 1,112,096 1,802,762 549,998 75,792 Effect of exchange rate changes on cash, cash equivalents and restricted cash (20,464) (15,294) 15,028 2,071 Net (decrease) increase in cash, cash equivalents and restricted cash (398,721) 1,019,712 (343,757) (47,371) Cash, cash equivalents and restricted cash at beginning of period 2,489,481 1,710,389 2,730,101 376,218 Cash, cash equivalents and restricted cash at end of period 2,090,760 2,730,101 2,386,344 328,847 View original content: SOURCE Kingsoft Cloud Holdings Limited Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
21-03-2025
- Business
- Bloomberg
Kingsoft Cloud Expects Operating Profit on AI Adoption
Cloud-computing firm Kingsoft Cloud says it expects to post an operating profit this year as companies integrate AI into their businesses. Kingsoft Cloud CFO Henry He speaks with David Ingles and Annabelle Droulers on "Bloomberg: The China Show." (Source: Bloomberg)
Associated Press
19-03-2025
- Business
- Associated Press
Kingsoft Cloud Announces Unaudited Fourth Quarter and Fiscal Year 2024 Financial Results; First Time Operating Margin Profitable with Accelerated Growing Revenue of AI Cloud
BEIJING, March 19, 2025 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited ('Kingsoft Cloud' or the 'Company') (NASDAQ: KC and HKEX: 3896), a leading cloud service provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024. Fourth Quarter Financial Highlights Total Revenues reached RMB2,232.1 million (US$305.8 million)1, increased by 29.6% year-over-year from RMB1,722.5 million in the same quarter of 2023. Our business has experienced accelerated and high-quality growth and our revenue structure is well-balanced. Gross profit was RMB426.0 million (US$58.4 million), representing a significant increase of 68.3% from RMB253.1 million in the same quarter of 2023. Our profitability has been fundamentally improved. Non-GAAP EBITDA2 was RMB359.7 million (US$49.3 million), compared with RMB-27.7 million in the same quarter of 2023. Non-GAAP EBITDA margin was 16. 1%, compared with -1.6% in the same quarter of 2023. Operating loss was RMB43.5 million (US$6.0 million), compared with operating loss of RMB342.7 million in the same quarter of 2023. Non-GAAP Operating profit (loss) turned profit for the first time, achieving RMB24.4 million (US$3.3 million), compared with RMB-187.6 million in the same quarter of 2023. Non-GAAP Operating profit (loss) margin was 1. 1%, compare with -10.9% in the same quarter of 2023. Mr. Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented, 'We are very pleased to close Fiscal Year 2024 with historically strong financial performance. This quarter, we recorded positive non - GAAP operating profit (loss) for the first time, demonstrating our unwavering execution of the 'High- quality, Sustainable Development Strategy'. Driven by the growing popularity of AI applications, we firmly believe that AI will continue to penetrate into various verticals, improving the efficiency of daily life. This quarter the gross billing of AI business increased by triple-digit year-over-year to RMB474 million. Both our public cloud and enterprise cloud businesses are harnessing the vast potential of AI cloud computing. Meanwhile, we have seen strong growth in demand from our ecosystem. Revenue from Xiaomi and Kingsoft Group increased by 76% year-over-year. We are well on track to build cutting- edge cloud infrastructure and technology to support our ecosystem and expand into the broader AI industry.' Mr. Henry He, Chief Financial Officer of Kingsoft Cloud, added, 'We are very pleased to highlight several significant achievements. First, we achieved profitability in non-GAAP operating profit for the first time since our inception in 2012, demonstrating our strong execution of our high-quality and sustainable development strategy in the past two years. Second, our revenue has been growing for three consecutive quarters year-over-year, and this quarter we achieved a high-speed growth rate of 30% in total revenue, reaching RMB2,232.1 million. Third, gross billing of our Al cloud business increased by around 500% year-over-year to RMB474 million, accounting for as high as 34% of our public cloud revenue. This marks a three-digit year-on-year growth or six consecutive quarters. Fourth, last December, our shareholders approved revenue from connected-party of Xiaomi and Kingsoft Group for next three years of RMB11.3 billion, around 10 times over the revenue of 2023, providing solid support for Company's revenue and profit growth. We believe we are well on track to meet the ecosystem's fast-growing demands and build a solid cloud infrastructure to support its AI development. Notably, in this quarter, we are thrilled to report that revenue from Xiaomi and Kingsoft Group increased by 76% year-over-year, validating the effectiveness of our ecosystem strategy.' Fourth Quarter 2024 Financial Results Total Revenues reached RMB2,232.1 million (US$305.8 million), increased by 29.6% year-over-year from RMB1,722.5 million in the same quarter of 2023 and increased by 18.4% quarter-over-quarter from RMB1,885.6 million in the third quarter of 2024. The year-over-year increase was mainly due to the expanded revenue from Xiaomi and Kingsoft Ecosystem and AI related customers, incremental demands and more projects delivered from enterprise cloud approaching year-end. Revenues from public cloud services were RMB1,409.8 million (US$193.1 million), increased by 34.0% from RMB1,052.0 million in the same quarter of 2023 and increased by 19.9% from RMB1, 175.5 million last quarter. The year-over-year increase was mainly due to the growth of AI demands. ______________________ 1 This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 as certified for customs purposes by the Federal Reserve Bank of New York. 2 Non-GAAP EBITDA is defined as non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See 'Use of Non-GAAP Financial Measures' set forth at the end of this press release. Revenues from enterprise cloud services were RMB822.3 million (US$112.7 million), representing an increase of 22.7% from RMB670.3 million in the same quarter of 2023 and an increase of 15.8% from RMB710.0 million last quarter. We keep focusing in selected verticals such as public services cloud, state-owned assets cloud, healthcare, financial services and private enterprise services, enhance our solutions with AI capabilities and take profitability and sustainability of the enterprise cloud projects as our priorities. Other revenues were nil this quarter. Cost of revenues was RMB1,806.2 million (US$247.4 million), representing an increase of 22.9% from RMB1,469.3 million in the same quarter of 2023, which was in-line with our revenue expansion. IDC costs decreased by 2.6% year-over-year from RMB740.4 million to RMB721.5 million (US$98.8 million) this quarter. The decrease was in line with the scale down of our CDN services and our strict control over procurement costs. Depreciation and amortization costs increased from RMB146.9 million in the same quarter of 2023 to RMB343.1 million (US$47.0 million) this quarter. The increase was mainly due to the depreciation of newly acquired servers which were related to AI business. Solution development and services costs increased by 10.8% year-over-year from RMB502.9 million in the same quarter of 2023 to RMB557.0 million (US$76.3 million) this quarter. The increase was mainly due to the solution personnel expansion of Camelot. Fulfillment costs and other costs were RMB102.4 million (US$14.0 million) and RMB82.2 million (US$11.3 million) this quarter. Gross profit was RMB426.0 million (US$58.4 million), representing a significant increase of 68.3% from RMB253.1 million in the same quarter of 2023, demonstrating our improvements in revenue quality and structure, as well as strict cost control. Gross margin was 19. 1%, compared with 14.7% in the same period in 2023. Non-GAAP gross profit3 was RMB427.7 million (US$58.6 million), compared with RMB262.5 million in the same period in 2023. Non-GAAP gross margin3 was 19.2%, compared with 15.2% in the same period in 2023. The significant improvement of our gross profit and margin was mainly due to our strategic adjustment of revenue mix, expansion of AI revenues, optimized enterprise cloud project selection and efficient cost control measures. Total operating expenses were RMB469.5 million (US$64.3 million), decreased by 21.2% from RMB595.9 million in the same quarter last year and decreased by 67.6% from RBM1,447.1 million last quarter. Among which: Selling and marketing expenses were RMB115.8 million (US$15.9 million), decreased by 8.4% from RMB126.5 million in the same period in 2023 and decreased by 4.4% from RMB121.1 million last quarter, the decrease was due to the decrease of share-based compensation. General and administrative expenses were RMB179.5 million (US$24.6 million), decreased by 39.0% from RMB294.2 million in the same period in 2023 and slightly increased by 5.4% from RMB170.4 million last quarter. The year-over-year decrease was mainly due to the decrease of credit loss expense. Research and development expenses were RMB174.2 million (US$23.9 million), decreased by 0.6% from RMB175.2 million in the same period in 2023 and 26.2% from RMB235.9 million last quarter. The decrease was mainly due to the decrease of share-based compensation. Operating loss was RMB43.5 million (US$6.0 million), compared with operating loss of RMB342.7 million in the same quarter of 2023 and RMB1,143.8 million last quarter. The improvement was mainly due to the increase of gross profit and our strict expenses control. Non-GAAP operating profit (loss)4 was RMB24.4 million (US$3.3 million), compared with operating loss of RMB187.6 million in the same quarter last year and RMB140.2 million last quarter. Our non-GAAP operating profit (loss) turned breakeven for the first time and verified our high quality and sustainable development strategy. Net loss was RMB200.6 million (US$27.5 million), compared with net loss of RMB286.8 million in the same quarter of 2023 and RMB1,061.1 million last quarter. Non-GAAP net loss5 was RMB70.3 million (US$9.6 million), narrowed down compared with RMB250.4 million in the same quarter of 2023 and RMB236.7 million last quarter. The improvement was mainly due to the revenue quality increase, revenue mix adjustment, strict costs control and expenses control. ______________________ 3 Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See 'Use of Non-GAAP Financial Measures' set forth at the end of this press release. 4 Non-GAAP operating loss is defined as operating loss excluding share-based compensation, impairment of long-lived assets and amortization of intangible assets and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. See 'Use of Non-GAAP Financial Measures' set forth at the end of this press release. 5 Non-GAAP net loss is defined as net loss excluding share-based compensation, impairment of long-lived assets and foreign exchange (gain) loss, and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. See 'Use of Non-GAAP Financial Measures' set forth at the end of this press release. Non-GAAP EBITDA6 was RMB359.7 million (US$49.3 million), compared with RMB-27.7 million in the same quarter of 2023 and RMB185.4 million last quarter. Non-GAAP EBITDA margin was 16. 1%, compared with -1.6% in the same quarter of 2023 and 9.8% last quarter. The increase was mainly due to the expansion in gross profit and our strict control over costs and expenses. Basic and diluted net loss per share was RMB0.05 (US$0.01), compared with RMB0.08 in the same quarter of 2023 and RMB0.29 last quarter. Cash and cash equivalents were RMB2,648.8 million (US$362.9 million) as of December 31, 2024, compared with RMB1,617.9 million as of September 30, 2024. The increase was mainly due to the increased cash receipts from operating activities and the increase in bank loan drawdowns. Fiscal Year 2024 Financial Results Total Revenues reached RMB7,785.2 million (US$1,066.6 million), representing an increase of 10.5% from RMB7,047.5 million in 2023. The increase was due to the strong demands from AI business and enterprise cloud projects increase, while partially offset by our proactive scale-down of CDN services within public cloud services. Revenues from public cloud services were RMB5,007.3 million (US$686.0 million), representing an increase of 14.3% from RMB4,381.7 million in 2023. Revenues from enterprise cloud services were RMB2,777.8 million (US$380.6 million), representing an increase of 4.3% from RMB2,664.0 million in 2023. Other revenues were RMB0.1 million (US$0.02 million). ______________________ 6 Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See 'Use of Non-GAAP Financial Measures' set forth at the end of this press release. Cost of revenues was RMB6,444.3 million (US$882.9 million), representing a slight increase of 4.0% from RMB6, 197.3 million in 2023. Among which: IDC costs decreased by 9.9% to RMB2,892.1 million (US$396.2 million) from RMB3,211.2 million in 2023. The decrease was in line with our cost control measures adjustment of CDN services. Depreciation and amortization costs were RMB1,090.1 million (US$149.3 million), compared with RMB774.0 million in 2023, mainly due to the depreciation of new acquired servers related to AI business. Fulfillment costs were RMB235.7 million (US$32.3 million), representing an increase of 2.7% from RMB229.5 million in 2023. The increase was in line with enterprise cloud projects increase. Solution development and services costs were RMB1,993.1 million (US$273.1 million) in 2024, compared with RMB1,804.8 million in 2023. The increase was mainly due to the revenue expansion of Camelot business. Gross profit increased by 57.7% to RMB1,340.9 million (US$183.7 million) in 2024, from RMB850.2 million in 2023. Gross margin increased to 17.2%, from 12. 1% in 2023. Non-GAAP gross profit increased to RMB1,357.8 million (US$186.0 million) in 2024, from RMB859.9 million in 2023. Non-GAAP gross margin increased to 17.4% in 2024 from 12.2% in 2023. Such increases were primarily because of the optimization of revenue mix and our effective cost controls. Selling and marketing expenses were RMB479.4 million (US$65.7 million), compared with RMB460.2 million in 2023. The increase was mainly due to the increase of share-based compensation. General and administrative expenses were RMB834.9 million (US$114.4 million), compared with RMB1,060.0 million in 2023. The decrease was mainly due to the decrease of credit loss expense. Research and development expenses were RMB846.0 million (US$115.9 million), compared with RMB784.8 million in 2023. The increase was mainly due to the rise in personnel-related expenses. Impairment of long-lived assets was RMB919.7 million (US$126.0 million), mainly attributable to impairment of long-lived assets dedicated to assets of low-margin services. Operating loss was RMB1,739.0 million (US$238.2 million), compared with RMB2, 108.6 million in 2023. Non-GAAP operating loss was RMB431.3 million (US$59.1 million), significantly narrowed compared with RMB1,092.8 million in 2023. Non-GAAP operating loss margin was 5.5%, significantly improved from 15.5% in 2023. Net loss was RMB1,979.0 million (US$271.1 million), significantly narrowed from net loss of RMB2, 183.6 million in 2023. Non-GAAP net loss was RMB825.3 million (US$113.1 million), compared with Non-GAAP net loss of RMB1,291.1 million in 2023. Non-GAAP EBITDA was RMB638.9 million (US$87.5 million), compared with RMB-265.1 million in 2023. Non-GAAP EBITDA margin was 8.2%, compared with -3.8% in 2023. Basic and diluted net loss per share was RMB0.54 (US$0.07), compared with RMB0.61 in 2023. Outstanding ordinary shares were 3,687,690,772 as of December 31, 2024, equivalent to about 245,846,051 ADSs. Conference Call Information Kingsoft Cloud's management will host an earnings conference call on Wednesday, March 19, 2025 at 8:15 am, U.S. Eastern Time (8:15 pm, Beijing/Hong Kong Time on the same day). Participants can register for the conference call by navigating to Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique access PIN. To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly. Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ('U.S. GAAP'). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP operating loss margin, Non-GAAP EBITDA, Non-GAAP EBITDA margin, Non-GAAP net loss and Non-GAAP net loss margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non- GAAP gross profit as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non- GAAP gross profit as a percentage of revenues. We define Non-GAAP operating loss as operating loss excluding share-based compensation, impairment of long-lived assets and amortization of intangible assets, and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation, foreign exchange (gain) loss and impairment of long-lived assets, and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors' assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate ofRMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 as certified for customs purposes by the Federal Reserve Bank of New York. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates' and similar statements. Among other things, the Business Outlook, and quotations from management in this announcement, as well as Kingsoft Cloud's strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ('SEC'), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud's goals and strategies; Kingsoft Cloud's future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud's business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud's ability to monetize the customer base; fluctuations in general economic and business conditions in China; and the economy in China and elsewhere generally; China's political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud's filings with the SEC. All information provided in this press release and in the attachments is as ofthe date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law. About Kingsoft Cloud Holdings Limited Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX:3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals. For more information, please visit: For investor and media inquiries, please contact: Nicole Shan Tel: +86 (10) 6292-7777 Ext. 6300 Email: [email protected] KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands) Dec 31, 2023 Dec 31, 2024 Dec 31, 2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 2,255,287 2,648,764 362,879 Restricted cash 234,194 81,337 11,143 Accounts receivable, net 1,529,915 1,468,663 201,206 Short-term investments — 90,422 12,388 Prepayments and other assets 1,812,692 2,233,074 305,930 Amounts due from related parties 266,036 318,526 43,638 Total current assets 6,098,124 6,840,786 937,184 Non-current assets: Property and equipment, net 2,186,145 4,630,052 634,315 Intangible assets, net 834,478 694,880 95,198 Goodwill 4,605,724 4,605,724 630,982 Prepayments and other assets 870,781 449,983 61,647 Equity investments 259,930 234,182 32,083 Amounts due from related parties 56,264 — — Operating lease right-of-use assets 158,832 137,047 18,775 Total non-current assets 8,972,154 10,751,868 1,473,000 Total assets 15,070,278 17,592,654 2,410,184 LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 1,805,083 1,877,004 257,149 Accrued expenses and other current liabilities 2,838,085 3,341,990 457,851 Short-term borrowings 1,110,896 2,225,765 304,928 Income tax payable 63,961 69,219 9,483 Amounts due to related parties 931,906 1,584,199 217,034 Current operating lease liabilities 78,659 61,258 8,392 Total current liabilities 6,828,590 9,159,435 1,254,837 Non-current liabilities: Long-term borrowings 100,000 1,660,584 227,499 Amounts due to related parties 40,069 309,612 42,417 Deferred tax liabilities 142,565 101,677 13,930 Other liabilities 634,803 790,271 108,267 Non-current operating lease liabilities 78,347 65,755 9,008 Total non-current liabilities 995,784 2,927,899 401,121 Total liabilities 7,824,374 12,087,334 1,655,958 Shareholders' equity: Ordinary shares 25,443 25,689 3,519 Treasury stock (208,385) (105,478) (14,450) Additional paid-in capital 18,811,028 18,940,885 2,594,891 Statutory reserves funds 21,765 32,001 4,384 Accumulated deficit (12,315,041) (14,291,957) (1,957,990) Accumulated other comprehensive income 555,342 566,900 77,665 Total Kingsoft Cloud Holdings Limited shareholders' equity 6,890,152 5,168,040 708,019 Non-controlling interests 355,752 337,280 46,207 Total equity 7,245,904 5,505,320 754,226 Total liabilities, non-controlling interests and shareholders' equity 15,070,278 17,592,654 2,410,184 KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (All amounts in thousands, except for share and per share data) Three Months Ended Twelve Months Ended Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2024 RMB RMB RMB RMB RMB US$ RMB RMB US$ Revenues: Public cloud services 1,051,966 1,187,370 1,234,542 1,175,535 1,409,804 193,142 4,381,741 5,007,251 685,991 Enterprise cloud services 670,331 588,162 657,238 710,039 822,338 112,660 2,663,993 2,777,777 380,554 Others 153 152 - - - - 1,727 152 21 Total revenues 1,722,450 1,775,684 1,891,780 1,885,574 2,232,142 305,802 7,047,461 7,785,180 1,066,566 Cost of revenues (1,469,312) (1,482,431) (1,573,433) (1,582,220) (1,806,170) (247,444) (6,197,292) (6,444,254) (882,859) Gross profit 253,138 293,253 318,347 303,354 425,972 58,358 850,169 1,340,926 183,707 Operating expenses: Selling and marketing expenses (126,477) (116,752) (125,708) (121,117) (115,792) (15,863) (460,221) (479,369) (65,673) General and administrative expenses (294,240) (218,695) (266,249) (170,374) (179,536) (24,596) (1,060,022) (834,854) (114,375) Research and development expenses (175,155) (231,963) (203,959) (235,912) (174,155) (23,859) (784,807) (845,989) (115,900) Impairment of long-lived assets - - - (919,724) - - (653,670) (919,724) (126,002) Total operating expenses (595,872) (567,410) (595,916) (1,447,127) (469,483) (64,318) (2,958,720) (3,079,936) (421,950) Operating loss (342,734) (274,157) (277,569) (1,143,773) (43,511) (5,960) (2,108,551) (1,739,010) (238,243) Interest income 12,442 8,370 9,945 4,517 4,176 572 78,410 27,008 3,700 Interest expense (46,992) (51,066) (59,414) (57,404) (61,821) (8,469) (146,026) (229,705) (31,469) Foreign exchange gain (loss) 74,011 (42,737) (6,999) 135,777 (105,572) (14,463) (57,211) (19,531) (2,676) Other (loss) gain, net (16,741) (8,207) (7,829) 6,046 (2,956) (405) (32,673) (12,946) (1,774) Other income (expense), net 33,776 (11,190) (4,961) 4,433 5,336 731 100,363 (6,382) (874) Loss before income taxes (286,238) (378,987) (346,827) (1,050,404) (204,348) (27,994) (2,165,688) (1,980,566) (271,336) Income tax (expense) benefit (598) 15,371 (6,891) (10,662) 3,706 508 (17,959) 1,524 209 Net loss (286,836) (363,616) (353,718) (1,061,066) (200,642) (27,486) (2,183,647) (1,979,042) (271,127) Less: net loss attributable to non-controlling interests (2,688) (4,206) (542) (3,931) (3,683) (505) (7,307) (12,362) (1,694) Net loss attributable to Kingsoft Cloud Holdings Limited (284,148) (359,410) (353,176) (1,057,135) (196,959) (26,981) (2,176,340) (1,966,680) (269,433) Net loss per share: Basic and diluted (0.08) (0.10) (0.10) (0.29) (0.05) (0.01) (0.61) (0.54) (0.07) Shares used in the net loss per share computation: Basic and diluted 3,570,915,939 3,614,662,846 3,649,307,331 3,655,882,906 3,710,632,202 3,710,632,202 3,558,354,940 3,658,088,876 3,658,088,876 Other comprehensive (loss) income, net of tax of nil: Foreign currency translation adjustments (67,636) 20,704 (530) (112,296) 103,658 14,201 102,241 11,536 1,580 Comprehensive loss (354,472) (342,912) (354,248) (1,173,362) (96,984) (13,285) (2,081,406) (1,967,506) (269,547) Less: Comprehensive loss attributable to non-controlling interests (2,662) (4,247) (570) (3,900) (3,667) (502) (7,334) (12,384) (1,697) Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders (351,810) (338,665) (353,678) (1,169,462) (93,317) (12,783) (2,074,072) (1,955,122) (267,850) KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage) Three Months Ended Twelve Months Ended Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2024 RMB RMB RMB RMB RMB US$ RMB RMB US$ Gross profit 253,138 293,253 318,347 303,354 425,972 58,358 850,169 1,340,926 183,707 Adjustments: – Share-based compensation expenses (allocated in cost of revenues) 9,330 5,814 5,076 4,252 1,726 236 9,757 16,868 2,311 Adjusted gross profit (Non-GAAP Financial Measure) 262,468 299,067 323,423 307,606 427,698 58,594 859,926 1,357,794 186,018 KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage) Three Months Ended Twelve Months Ended Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Gross margin 14.7 % 16.5 % 16.8 % 16.1 % 19.1 % 12.1 % 17.2 % Adjusted gross margin (Non-GAAP Financial Measure) 15.2 % 16.8 % 17.1 % 16.3 % 19.2 % 12.2 % 17.4 % KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage) Three Months Ended Twelve Months Ended Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2024 RMB RMB RMB RMB RMB US$ RMB RMB US$ Net Loss (286,836) (363,616) (353,718) (1,061,066) (200,642) (27,486) (2,183,647) (1,979,042) (271,127) Adjustments: – Share-based compensation expenses 110,437 103,595 45,649 40,423 24,774 3,394 181,645 214,441 29,378 – Foreign exchange (gain) loss (74,011) 42,737 6,999 (135,777) 105,572 14,463 57,211 19,531 2,676 – Impairment of long-lived assets - - - 919,724 - - 653,670 919,724 126,002 Adjusted net loss (Non-GAAP Financial Measure) (250,410) (217,284) (301,070) (236,696) (70,296) (9,629) (1,291,121) (825,346) (113,071) Adjustments: – Interest income (12,442) (8,370) (9,945) (4,517) (4,176) (572) (78,410) (27,008) (3,700) – Interest expense 46,992 51,066 59,414 57,404 61,821 8,469 146,026 229,705 31,469 – Income tax expense (benefit) 598 (15,371) 6,891 10,662 (3,706) (508) 17,959 (1,524) (209) – Depreciation and amortization 187,542 223,146 305,304 358,540 376,100 51,525 940,482 1,263,090 173,043 Adjusted EBITDA (Non-GAAP Financial Measure) (27,720) 33,187 60,594 185,393 359,743 49,285 (265,064) 638,917 87,532 – (Gain) loss on disposal of property and equipment - (23,821) - (10,667) (10,137) (1,389) 22,996 (44,625) (6,114) Excluding loss or gain on disposal of property and equipment, normalized Adjusted EBITDA (27,720) 9,366 60,594 174,726 349,606 47,896 (242,068) 594,292 81,418 KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage) Three Months Ended Twelve Months Ended Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2024 RMB RMB RMB RMB RMB US$ RMB RMB US$ Operating loss (342,734) (274,157) (277,569) (1,143,773) (43,511) (5,960) (2,108,551) (1,739,010) (238,243) Adjustments: – Share-based compensation expenses 110,437 103,595 45,649 40,423 24,774 3,394 181,645 214,441 29,378 – Impairment of long-lived assets - - - 919,724 - - 653,670 919,724 126,002 – Amortization of intangible assets 44,656 43,517 43,415 43,460 43,104 5,905 180,459 173,496 23,769 Adjusted operating (loss) profit (Non-GAAP Financial Measure) (187,641) (127,045) (188,505) (140,166) 24,367 3,339 (1,092,777) (431,349) (59,094) – (Gain) loss on disposal of property and equipment - (23,821) - (10,667) (10,137) (1,389) 22,996 (44,625) (6,114) Excluding loss or gain on disposal of property and equipment, normalized Adjusted operating (loss) profit (187,641) (150,866) (188,505) (150,833) 14,230 1,950 (1,069,781) (475,974) (65,208) KINGSOFT CLOUD HOLDINGS LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for percentage) Three Months Ended Twelve Months Ended Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Net loss margin -16.7 % -20.5 % -18.7 % -56.3 % -9.0 % -31.0 % -25.4 % Adjusted net loss margin (Non-GAAP Financial Measure) -14.5 % -12.2 % -15.9 % -12.6 % -3.1 % -18.3 % -10.6 % Adjusted EBITDA margin (Non-GAAP Financial Measure) -1.6 % 1.9 % 3.2 % 9.8 % 16.1 % -3.8 % 8.2 % Normalized Adjusted EBITDA margin -1.6 % 0.5 % 3.2 % 9.3 % 15.7 % -3.4 % 7.6 % Adjusted operating (loss) profit margin (Non-GAAP Financial Measure) -10.9 % -7.2 % -10.0 % -7.4 % 1.1 % -15.5 % -5.5 % Normalized Adjusted operating (loss) profit margin -10.9 % -8.5 % -10.0 % -8.0 % 0.6 % -15.2 % -6.1 % KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (All amounts in thousands) Three Months Ended Twelve Months Ended Dec 31, 2023 Dec 31, 2024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2024 RMB RMB US$ RMB RMB US$ Net cash generated from (used in) operating activities 16,787 570,222 78,120 (169,070) 628,419 86,093 Net cash used in investing activities (1,414,761) (1,337,978) (183,302) (673,186) (3,620,445) (495,999) Net cash generated from (used in) financing activities 1,154,815 1,802,762 246,977 (227,852) 3,255,418 445,990 Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,013 (15,294) (2,095) 25,863 (22,772) (3,119) Net (decrease) increase in cash, cash equivalents and restricted cash (242,146) 1,019,712 139,700 (1,044,245) 240,620 32,965 Cash, cash equivalents and restricted cash at beginning of period 2,731,627 1,710,389 234,322 3,533,726 2,489,481 341,057 Cash, cash equivalents and restricted cash at end of period 2,489,481 2,730,101 374,022 2,489,481 2,730,101 374,022
