Summary of Key Points from the Conference Call Company Overview - **Company**: Kingsoft Cloud (金山云) - **Industry**: Cloud Computing and Artificial Intelligence Core Insights and Arguments 1. **Strong Demand for AI**: Kingsoft Cloud's revenue for Q2 2025 increased by 24% year-on-year, driven primarily by strong demand for artificial intelligence services, which saw a revenue growth of over 120% to 729 million yuan, accounting for 45% of the public cloud business [1][4][9] 2. **Partnership with Xiaomi**: The unique relationship with Xiaomi and Kingsoft Group is expected to drive significant AI computing expenditures towards Kingsoft Cloud, enhancing revenue visibility compared to other AI stocks [1][9][21] 3. **Profitability Challenges**: Adjusted net profit was a loss of 300 million yuan, which was worse than Morgan Stanley's forecast of a loss of 248 million yuan, primarily due to higher-than-expected depreciation costs [1][4][9] 4. **Gross Margin Decline**: Gross margin decreased by 2.4 percentage points year-on-year to 14.4%, attributed to increasingly complex supply chain management and the introduction of third-party computing providers. However, it is expected to stabilize around 15% in the future [1][4][9] 5. **Future Growth Expectations**: Management anticipates that the growth rate of cloud business in the second half of 2025 will exceed that of the first half, supported by the Xiaomi-Kingsoft ecosystem, which saw a 70% year-on-year revenue increase to 629 million yuan in Q2 2025 [1][4][9] Financial Performance Highlights 1. **Q2 2025 Financials**: - **Net Revenue**: 2,349 million yuan, exceeding market expectations by 3% [5] - **Gross Profit**: 339 million yuan, a 6% increase year-on-year [5] - **Operating Loss**: 327 million yuan, with adjusted operating loss at 166 million yuan [5] - **EBITDA**: Adjusted EBITDA was 406 million yuan, reflecting a 570% increase year-on-year [5] - **Net Profit Margin**: Reported net profit margin was -19.5% [5] 2. **Revised Target Price**: The target price for Kingsoft Cloud is maintained at $19.00 (previously $18.50) based on a 4x enterprise value/sales multiple for 2025 [1][10][21] Risks and Considerations 1. **Revenue Recovery Risks**: Potential slower-than-expected revenue rebound could impact the company's financial outlook [11][23] 2. **Margin Improvement Risks**: Profit margin improvements may not materialize as quickly as anticipated due to ongoing supply chain complexities [11][23] 3. **Increased Competition**: The cloud computing industry is facing intensified competition, which could affect market share and profitability [11][23] Additional Important Insights 1. **Market Positioning**: Kingsoft Cloud's valuation is positioned between the average multiples of single business cloud service providers (5.9x) and small/mid-cap SaaS stocks (3.8x) [10][22] 2. **Stock Performance**: Year-to-date stock performance shows a significant increase of 40.8%, indicating strong market interest [13] This summary encapsulates the key points discussed in the conference call, providing a comprehensive overview of Kingsoft Cloud's current performance, future outlook, and associated risks.

Core Viewpoint - Kingsoft Cloud (KC.US) saw a pre-market increase of over 5%, reaching $14.83, following a positive report from UBS regarding its second-quarter performance [1] Financial Performance - Kingsoft Cloud reported a second-quarter revenue of 2.349 billion yuan, representing a year-on-year growth of 24.2%, which exceeded UBS's expectations by 1.5% [1] - Revenue from the Xiaomi ecosystem experienced a robust year-on-year growth of 70% during the same period [1] Future Outlook - UBS forecasts that Kingsoft Cloud's revenue growth for the third quarter will accelerate to 31% compared to the same period last year [1] - For the fiscal year 2025, UBS predicts a revenue growth of 22% for Kingsoft Cloud [1] Target Price Adjustment - UBS raised its target price for Kingsoft Cloud from $14 to $16.5 and reiterated a "Buy" rating [1]

截至2025年中报，金山云营业总收入43.19亿元、净利润-7.71亿元。 本文源自：金融界 8月26日，金山云(03896)盘中下跌2.05%，截至13:32，报7.66元/股，成交3.14亿元。 金山云控股有限公司以提供全球范围内的云服务为主营业务，构建了一整套的云计算基础架构和运营体 系，服务领域涉及互联网、公共服务、数字健康、金融等多个领域。公司运用大数据、人工智能和边缘 计算等高新技术，为500余家优质客户提供超过150种解决方案，并于2020年和2022年分别在美股和港股 完成上市。 作者：行情君 ...

Core Viewpoint - The company reported a revenue of 2.35 billion yuan in Q2 2025, representing a year-on-year growth of 24%, driven primarily by AI, slightly exceeding expectations [1] - The adjusted net loss was 300 million yuan, corresponding to a loss rate of 13% [1] - The company anticipates accelerated revenue growth in H2 2025 [1] Business Segmentation - AI is the main growth driver, with public cloud service revenue reaching 1.63 billion yuan in Q2 2025, a year-on-year increase of 32% [1] - AI revenue specifically was 730 million yuan, growing over 120% year-on-year, accounting for 45% of public cloud service revenue [1] - Industry cloud service revenue was 720 million yuan, showing a 10% year-on-year growth [1] Customer Contribution - Revenue from Kingsoft and Xiaomi increased to 630 million yuan in Q2 2025, a year-on-year growth of 69.5%, now representing 27% of total revenue [1] - The company has completed 40% of its annual related transaction cap in the first half of 2025 [1] Profitability and Cost Structure - Adjusted gross margin in Q2 2025 was 15%, showing a slight decline both year-on-year and quarter-on-quarter [1] - The decline in profit margin is attributed to a shift in computing power investment from self-purchased capital expenditure to a leasing model, which alleviates debt pressure [1] - Overall expenses remain effectively controlled, with a slight year-on-year increase in absolute values [1] Financial Position - The company completed a new round of financing in Q2, with cash, cash equivalents, and restricted cash reserves totaling 5.52 billion yuan as of the end of June [2] Future Outlook - The synergy effects from the Kingsoft and Xiaomi ecosystem are expected to continue, with ongoing iterations of domestic large models and alleviation of computing power supply concerns [2] - The release of DeepSeek-V3.1 on August 21, utilizing UE8M0 FP8 Scale parameters, is designed for the upcoming generation of domestic chips [2] - The company has slightly adjusted its revenue forecasts for 2025-2027 to 9.409 billion, 11.050 billion, and 12.491 billion yuan respectively, while maintaining a buy rating [2]

Core Viewpoint - Kingsoft Cloud (03896) shares rose over 5% following the release of its Q2 2025 earnings report, indicating positive market sentiment towards the company's performance [1] Financial Performance - Revenue for Q2 2025 reached 2.35 billion yuan, representing a year-on-year growth of 24.2% and a quarter-on-quarter increase of 19.3% [1] - AI billing revenue amounted to 730 million yuan, showing a growth of over 120% year-on-year, with public cloud revenue accounting for 45% of total revenue [1]

Core Insights - Kingsoft Cloud (03896) shares rose over 5% following the release of its Q2 2025 earnings report, with a current price of 7.9 HKD and a trading volume of 613 million HKD [1] Financial Performance - The company reported a revenue of 2.35 billion RMB for Q2 2025, representing a year-on-year growth of 24.2% and a quarter-on-quarter increase of 19.3% [1] - AI billing revenue reached 730 million RMB, showing a growth of over 120% year-on-year, with public cloud revenue accounting for 45% of total revenue [1]

Core Viewpoint - Kingsoft Cloud (3896.HK) experienced a significant stock increase of over 6.5%, reaching a monthly high of 8 HKD, driven by strong performance in its Q2 financial results, particularly due to the positive impact of AI on its core business [1] Financial Performance - Kingsoft Cloud reported Q2 revenue of 2.35 billion CNY, representing a year-on-year growth of 24.2% [1] - Adjusted EBITDA for Q2 surged by 570.1% year-on-year, reaching 410 million CNY, with an adjusted EBITDA margin of 17.3%, an increase of 14.1 percentage points year-on-year [1] - Public cloud revenue was 1.63 billion CNY, up 31.7% year-on-year, while industry cloud revenue reached 720 million CNY, growing by 10.1% year-on-year [1] - AI billing revenue amounted to 730 million CNY, showing a year-on-year increase of over 120% [1] - Revenue from Xiaomi and Kingsoft ecosystem reached 630 million CNY, reflecting a year-on-year growth of 69.5% [1] Future Outlook - According to CICC's research report, the revenue growth trend is expected to continue into Q3, supported by the gradual delivery of large-scale clusters [1] - The increasing proportion of revenue from the profit-sharing model and the "three-generation" model (including agency procurement, agency construction, and agency operation) is anticipated to contribute to an improvement in adjusted EBITDA margin for the full year of 2025 [1] - CICC maintains an "outperform" rating for Kingsoft Cloud with a target price of 16.3 USD [1]

Group 1 - The core viewpoint of the article highlights the recent stock performance of Kingsoft Cloud, which saw a 4.93% increase, reaching a price of 7.88 HKD per share with a trading volume of 3.02 billion HKD [1] - Kingsoft Cloud Holdings Limited primarily provides global cloud services, establishing a comprehensive cloud computing infrastructure and operational system, serving various sectors including internet, public services, digital health, and finance [1] - The company utilizes advanced technologies such as big data, artificial intelligence, and edge computing to offer over 150 solutions to more than 500 high-quality clients, and it went public on the US and Hong Kong stock exchanges in 2020 and 2022, respectively [1] Group 2 - As of the mid-2025 financial report, Kingsoft Cloud reported total revenue of 4.319 billion RMB and a net loss of 771 million RMB [2]

8月25日，金山云(03896)盘中上涨5.73%，截至09:30，报7.94元/股，成交5215.91万元。 作者：行情君 金山云控股有限公司以提供全球范围内的云服务为主营业务，构建了一整套的云计算基础架构和运营体 系，服务领域涉及互联网、公共服务、数字健康、金融等多个领域。公司运用大数据、人工智能和边缘 计算等高新技术，为500余家优质客户提供超过150种解决方案，并于2020年和2022年分别在美股和港股 完成上市。 截至2025年中报，金山云营业总收入43.19亿元、净利润-7.71亿元。 本文源自：金融界 ...

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company achieved a revenue of 2.35 billion yuan in Q2 2025, representing a year-on-year growth of 24%, driven primarily by AI services, slightly exceeding expectations [5] - The adjusted net loss for the same period was 300 million yuan, corresponding to a loss rate of 13% [5] - The company expects revenue growth to accelerate in the second half of the year [5] Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 7,047 million yuan - 2024: 7,785 million yuan - 2025E: 9,409 million yuan - 2026E: 11,050 million yuan - 2027E: 12,491 million yuan - Year-on-year growth rates are projected at: - 2023: -14% - 2024: 10% - 2025: 21% - 2026: 17% - 2027: 13% [7] - Adjusted net profit forecasts are: - 2023: -1,291 million yuan - 2024: -825 million yuan - 2025E: -1,072 million yuan - 2026E: -841 million yuan - 2027E: -338 million yuan [7] Business Analysis - AI is identified as the core growth driver, with public cloud service revenue reaching 1.63 billion yuan in Q2 2025, a year-on-year increase of 32% [8] - AI revenue specifically was 730 million yuan, growing over 120% year-on-year, accounting for 45% of public cloud service revenue [8] - Revenue from the partnership with Kingsoft and Xiaomi reached 630 million yuan, a year-on-year increase of 69.5%, now representing 27% of total revenue [8] - The adjustment in computing power investment methods has led to a short-term decline in profit margins, with an adjusted gross margin of 15% in Q2 2025 [8] - The company has a strong cash reserve of 5.52 billion yuan as of the end of June, supporting further investments in AI [8] - Future growth is expected to be driven by AI and the synergistic effects of the Kingsoft and Xiaomi ecosystem [8]