Group 1 - The Hong Kong cloud computing sector continues to rise, with Kingsoft Cloud increasing by over 10% [1] - Kingsoft Software has seen an increase of over 5% [1] - Other companies such as Kingdee International, Alibaba-W, and China Software International have also experienced gains [1]

Group 1 - The Nasdaq China Golden Dragon Index has increased by 4.3% [1] - XPeng Motors (XPEV.N) has risen by 8% [1] - Kingsoft Cloud (KC.O) has gained 9% [1] - GDS Holdings (GDS.O) has seen a rise of 7% [1]

Core Viewpoint - Kingsoft Cloud's stock has experienced significant declines following its announcement of a large capital raise, reflecting investor concerns about its financial health and market position [1][2]. Group 1: Company Financials - Kingsoft Cloud's stock price dropped 5.32% in Hong Kong, closing at HKD 6.05, with a market capitalization of HKD 23.02 billion [1]. - The company announced a capital raise of up to HKD 22.64 billion through the issuance of American Depositary Shares and shares at HKD 5.83 each [1]. - Kingsoft Cloud reported a loss of RMB 1.967 billion for the year 2024 [1]. Group 2: Market Reactions - The stock price of Kingsoft Cloud in the U.S. fell by 16.82%, indicating a stronger negative market reaction compared to its Hong Kong counterpart [1]. - Analysts suggest that the large capital raise is a response to the company's ongoing financial struggles and high cash burn in its cloud computing business [1][2]. - There are concerns among investors that the capital raise may signal a lack of confidence in the company's ability to generate profits [2]. Group 3: Industry Context - The rapid development of AI is expected to drive significant investment in the sector, with projections indicating that China's total investment in AI could exceed USD 100 billion by 2028, with a compound annual growth rate of 35.2% from 2024 to 2028 [2]. - Cloud computing is viewed as a foundational technology for AI, suggesting that Kingsoft Cloud's fundraising efforts could strengthen its infrastructure and research capabilities to capitalize on emerging market opportunities [2].

Group 1 - The company, Kingsoft Cloud, announced a public offering of 18,500,000 American Depositary Shares (ADS), with each ADS representing 15 shares of common stock [1] - The offering is supported by strategic shareholders, and Kingsoft Software Group will additionally subscribe to 20% of the total offering size [1] - Proceeds from the ADS issuance will be used for upgrading and expanding infrastructure, investing in technology and product development, and for general corporate and working capital purposes [1]

受人工智能发展带动，云计算业务正处在其高速发展的历史阶段。深耕云计算十余载，金山云已占据行 业中独特的定位和技术服务先发优势。受益于此，2024年金山云业务表现强劲，全年总收入同比增长超 过10%，且收入组合健康，Q4单季度AI账单收入占公有云比例达34%，同比增长近500%，处行业领先 水平。金山云的高质量可持续发展战略已取得阶段性成果，年度毛利率同比提升超过5个百分点。Q4单 季度调整后经营利润率首次转正。这为后续盈利能力的持续提升打下了坚实基础。 鉴于人工智能领域强劲且高度可见的市场需求，金山云积极拥抱人工智能，持续聚焦核心技术进行能力 建设，已围绕基础云、智算网及智算平台全面升级智算能力体系。目前，金山云已在公有云场景和国资 云/政务云场景支持DeepSeek-R1/V3，且已完成基于国产芯片的DeepSeek满血版适配。作为生态内唯一 的战略云平台，金山云将持续受益于生态客户人工智能业务布局带来的需求增量。 2025年4月16日，金山云(NASDAQ:KC，HKEX:3896)宣布，将公开发行18,500,000股美国存托股 （ADS），每ADS代表该公司15股普通股。同时，金山云还授予ADS承销商 ...

Kingsoft Cloud Holdings Limited 金山云控股有限公司 股份代號 : 3896 （於開曼群島註冊成立的有限公司） 2024 年度報告 目 錄 2 公司資料 4 主要摘要 9 業務回顧及展望 12 管理層討論與分析 16 董事會報告 45 董事及高級管理層 49 企業管治報告 68 其他資料 84 獨立核數師報告 90 合併資產負債表 93 合併綜合虧損表 95 合併股東權益變動表 98 合併現金流量表 101 合併財務報表附註 168 五年財務摘要 169 釋義 二零二四 年度報告 2 公司資料 董事會 董事長兼非執行董事 雷軍先生 執行董事 鄒濤先生 （副董事長） 何海建先生 非執行董事 馮宏華先生 （於二零二四年三月二十日獲委任） 仇睿恒博士（ 於二零二四年三月二十日辭任） 獨立非執行董事 喻銘鐸先生 王航先生 曲靜淵女士 審計委員會 喻銘鐸先生 （主席） 曲靜淵女士 王航先生 授權代表 薪酬委員會 曲靜淵女士 （主席） 雷軍先生 喻銘鐸先生 提名委員會 雷軍先生 （主席） 曲靜淵女士 喻銘鐸先生 王航先生 公司治理委員會 鄒濤先生 （主席） 何海建先生 曲靜淵女士 馮宏華先生 ...

3倍做多富时中国ETF-Direxion盘前涨近17%，美股中概股普遍大涨，金山云(KC.O)涨超9%，哔哩哔哩 (BILI.O)、贝壳(BEKE.N)涨超8%，京东(JD.O)、小鹏汽车(XPEV.N)涨近6%。 ...

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company achieved a revenue of 2.2 billion HKD in Q4 2024, representing a year-on-year growth of 30%, with the adjusted operating profit turning positive for the first time at 24.37 million HKD, corresponding to a profit margin of 1.1% [7] - For the full year of 2024, the company reported a revenue of 7.8 billion HKD, a year-on-year increase of 10.5%, with an adjusted net loss of 830 million HKD, narrowing the loss margin by 8 percentage points [7] - The public cloud service revenue in Q4 2024 reached 1.4 billion HKD, growing 34% year-on-year, driven by a significant increase in AI cloud business revenue, which surged approximately 500% to 470 million HKD [7] - The industry cloud service revenue hit a historical high of 800 million HKD in Q4 2024, reflecting a 23% year-on-year growth, with continuous improvement in operational performance [7] - The company's gross margin improved to 19% in Q4 2024, with a full-year gross margin of 17%, an increase of 5 percentage points year-on-year [7] - The company benefits from strategic partnerships with Xiaomi and Kingsoft, with revenue from these collaborations growing 76% year-on-year in Q4 2024 [7] - Revenue forecasts for 2025 and 2026 have been raised to 9.867 billion HKD and 11.412 billion HKD, respectively, with a new forecast for 2027 set at 12.871 billion HKD [7] Financial Data and Earnings Forecast - Projected revenues (in million HKD) for the years 2023 to 2027 are as follows: 7,047 (2023), 7,785 (2024), 9,867 (2025E), 11,412 (2026E), and 12,871 (2027E) [6] - Adjusted net profit forecasts (in million HKD) for the same period are: -1,291 (2023), -825 (2024), -428 (2025E), -178 (2026E), and 173 (2027E) [6] - The projected earnings per share (in HKD) are: -0.36 (2023), -0.23 (2024), -0.11 (2025E), -0.05 (2026E), and 0.05 (2027E) [6]

Core Viewpoint - Kingsoft Cloud (KC.US) has shown impressive growth, with Q4 revenue reaching 2.23 billion yuan, a year-on-year increase of 30%, and has achieved overall profitability. The AI revenue has surged by 500% year-on-year, indicating a strong future growth trajectory for the company [1][2]. Group 1 - The strong growth in AI revenue is expected to drive Kingsoft Cloud's future performance, with institutions optimistic about its development [1][2]. - Kingsoft Cloud's partnership with Xiaomi and the framework agreement is projected to generate a total revenue of 11.3 billion yuan from 2025 to 2027 [1]. - The demand for computing power is increasing across various industries, driven by the deployment of large models, which will further enhance Kingsoft Cloud's growth prospects [1]. Group 2 - The anticipated increase in transaction amounts from Xiaomi's AIoT division is expected to exceed 50% in 2024, contributing over 500 million yuan annually to Kingsoft Cloud from 2025 to 2027 [2]. - Analysts predict that Kingsoft Cloud's AI business revenue will expand rapidly, while the non-AI business structure will stabilize [2]. - Citigroup has raised Kingsoft Cloud's target price to $21.5, indicating a potential upside of nearly 40% from the current stock price, reflecting a positive outlook for the company [2].

Summary of Kingsoft Cloud Conference Call Company Overview - **Company**: Kingsoft Cloud - **Founded**: 2012 - **Industry**: Cloud Computing - **Key Products**: Cloud storage, cloud security, big data, artificial intelligence, blockchain, edge computing - **Ownership**: Kingsoft Group (46.8%), Xiaomi (13.8%) - **Stock Listings**: Nasdaq (May 2020), Hong Kong (January 2023) [10][28] Financial Performance - **Q424 Revenue**: Rmb2.23 billion, up 30% YoY and 15% QoQ, exceeding expectations of 22% [2][3] - **Gross Margin**: Increased to 19% YoY, up 3 percentage points QoQ, surpassing the expected 17% [2] - **Operating Expenses**: Excluding impairment loss, fell by 13%, beating market expectations [2] - **Non-GAAP Operating Profit**: Positive for the first time at Rmb24.4 million due to higher gross profit margin and cost discipline [2] - **Non-GAAP Net Loss**: Narrowed to Rmb70 million from Rmb236.7 million in Q324 [2] Segment Performance - **Public Cloud Revenue**: Grew 34% YoY, driven by AI compute demand [2] - **Enterprise Cloud Revenue**: Increased by 23% YoY, supported by demand from public service and state-owned enterprises [2] AI Business Insights - **AI Revenue**: Rmb474 million, up 500% YoY, accounting for 34% of public cloud revenue [3] - **Future Expenditures**: Management anticipates AI-related expenditures (data center leasing, power, and server capex) could reach Rmb10 billion in 2025 [3] - **Ecosystem Revenue**: From Xiaomi and Kingsoft Group was Rmb490 million, up 76% YoY [3] - **Demand Pipeline**: Strong demand expected from Xiaomi and Kingsoft Group over the next three years as AI integrates into various products [3] Cost Management and Profitability - **Data Center Costs**: Reduced to 32% of Q424 revenues, down 7 percentage points QoQ due to resource optimization [3] - **Depreciation Costs**: Approximately 15.4% of revenues increased due to higher AI server depreciation [3] 2025 Outlook - **Management Confidence**: Adjusted operating profit expected to turn positive in 2025, with continued improvement in Q2-Q425 [4] - **Revenue Growth**: Anticipated slight deceleration in Q125 due to enterprise demand seasonality, but potential reacceleration from Q225 as AI capacity increases [4] Valuation and Market Sentiment - **Rating**: Under review with a price target of US$12.50 [6] - **Market Capitalization**: US$4.40 billion [7] - **Forecast Stock Return**: Expected to decline by 32.2% [9] - **Key Investor Debates**: Include sustainability of Xiaomi ecosystem demand, potential uplift in non-AI cloud services due to AI demand, and the possibility of equity financing for AI capex/opex [5] Risks and Challenges - **Downside Risks**: Include lower-than-industry revenue growth, failure to reach net income breakeven, general cloud demand weakness, and slower-than-expected AI development and enterprise adoption [12] Conclusion Kingsoft Cloud demonstrated strong growth in Q424, particularly in its AI segment, with management optimistic about future profitability and revenue growth. However, potential risks and market uncertainties remain, necessitating careful monitoring of the company's performance and market conditions.