Core Viewpoint - The rapid growth of Kingsoft Cloud's performance is driven by the explosion of AI technology and the recovery of industry cloud demand, with significant increases in revenue and AI business contributions [1][3]. Financial Performance - In Q1 2025, Kingsoft Cloud achieved revenue of 1.97 billion yuan, a year-on-year increase of 10.9% [2][3]. - The adjusted EBITDA for Q1 2025 reached 320 million yuan, reflecting an 8.6-fold increase year-on-year, with an EBITDA margin of 16.2%, up 14.3 percentage points [3]. - The company reported a net loss of 316 million yuan in Q1 2025, an improvement of 11.7% compared to the same period in 2024 [3]. AI Business Growth - AI business revenue surged by 228% year-on-year to 525 million yuan, accounting for 39% of public cloud revenue, making it the largest revenue source for the company [4][6]. - The AI revenue includes significant contributions from large model training and inference services, which represent over 60% of AI income [4]. Strategic Partnerships - Kingsoft Cloud's collaboration with Xiaomi has been fruitful, with revenue from the Xiaomi ecosystem reaching 500 million yuan, a 50% increase year-on-year, and accounting for 25% of total revenue [5][6]. - The joint development of the "MiLM-13B" large model has been successfully implemented in smart devices, achieving over 100 million daily calls [6]. Future Outlook - Management anticipates that AI business revenue will exceed 2 billion yuan in 2025, representing over 45% of total revenue, and aims for AI revenue to account for over 30% of total revenue by 2030 [6]. - The company plans to continue deepening its collaboration with the Xiaomi ecosystem to explore new AI opportunities and enhance value for stakeholders [6].

Core Viewpoint - Kingsoft Cloud's Q1 2025 performance fell short of expectations, with significant declines in key metrics such as gross margin and profit, leading to a sharp drop in stock prices in both US and Hong Kong markets [1][2]. Financial Performance - In Q1 2025, Kingsoft Cloud reported revenue of 1.97 billion yuan, a year-on-year increase of 10.9% but a quarter-on-quarter decline of 11.7%, which was below market expectations [1]. - The gross profit for Q1 was 318 million yuan, a year-on-year increase of 8.5% but a quarter-on-quarter decline of 25.3%, resulting in a gross margin of 16.2%, down 2.9 percentage points from the previous quarter [2]. - The net loss narrowed to 316 million yuan from 364 million yuan year-on-year, but widened from a loss of 200 million yuan in the previous quarter [2]. Business Segmentation - Public cloud services generated revenue of 1.354 billion yuan, a year-on-year increase of 14.0% but a quarter-on-quarter decline of 4.0% [1]. - Industry cloud revenue significantly slowed, reaching 617 million yuan, with a year-on-year increase of 4.8% but a quarter-on-quarter decline of 25.0% [1]. - AI business emerged as a core growth driver, with revenue of 525 million yuan, a staggering year-on-year increase of 228% [1]. Market Outlook - Citibank downgraded Kingsoft Cloud's revenue forecasts for 2025, 2026, and 2027 by 2% due to weaker-than-expected Q1 performance, lowering the target price from $21.5 to $19 [2]. - Nomura's report highlighted that Kingsoft Cloud is expected to benefit from the accelerating AI investment cycle in China, projecting a 20% year-on-year revenue growth in 2025, primarily driven by a 91% increase in AI revenue [3].

Group 1 - The core viewpoint of the article indicates a decline in the stock prices of Kingsoft-related companies, specifically Kingsoft Cloud and Kingsoft Software [1] - As of the report, Kingsoft Cloud (03896.HK) has dropped by 7.59% [1] - Kingsoft Software (03888.HK) has also experienced a decline, falling by 7.49% [1]

Kingsoft Cloud Q1 2025 Earnings Call Summary Company Overview - **Company**: Kingsoft Cloud - **Quarter**: Q1 2025 - **Revenue**: RMB 1.97 billion, an 11% year-over-year increase [2][3][11] Key Financial Highlights - **Public Cloud Revenue**: Grew 14% YoY to RMB 1.35 billion, driven by strong performance in core business segments [2][3][11] - **AI Business**: Gross billing surged over 200% YoY to RMB 525 million, accounting for 39% of public cloud revenue [2][3][11] - **Xiaomi and Kingsoft Ecosystem Revenue**: Increased by approximately 50% YoY to RMB 500 million, contributing 25% of total revenue [2][3][4][5] - **Non-GAAP Gross Profit**: Rose 9.6% YoY to RMB 327 million, with a non-GAAP EBITDA margin of 16.2%, a 14.3 percentage point increase YoY [2][3][11] - **Non-GAAP Operating Profit**: Resulted in a loss of RMB 55.8 million due to lower enterprise cloud profits and upfront investments in computing resources [2][3][11] - **Enterprise Cloud Revenue**: Increased by 5% YoY to RMB 616 million but saw a 25% sequential decrease due to seasonal slowdowns [2][3][11] Strategic Partnerships - **Xiaomi Collaboration**: Kingsoft Cloud serves as the exclusive strategic cloud platform within the Xiaomi ecosystem, enhancing AI capabilities and driving revenue growth [4][5][10] AI Business Development - **AI Infrastructure**: Accelerating construction of computing clusters with flexible capital deployment, expected to launch services in Q2 2025 [3][6] - **AI Applications**: Advancing AI in public service and healthcare sectors, including a platform for mutual recognition of test results in Wuhan [8][9] Capital Expenditure and Cost Management - **Capital Expenditure**: Reached RMB 605 million, with total cost of revenue increasing by 11% YoY to RMB 1,081.7 million [2][12][13] - **Cost Control**: CRC costs decreased by 6% YoY due to effective cost management [2][13] Market Challenges and Outlook - **Seasonality Impact**: Q1 growth was affected by seasonal factors, including the Chinese New Year, impacting project initiation [17] - **Chip Demand Issues**: Ongoing semiconductor shortages may affect Capex momentum, but short-term impacts are minimal due to prior inventory preparations [24][28] - **Future Growth**: Anticipated better margin profiles driven by AI projects and partnerships, particularly with Xiaomi, in subsequent quarters [21] Industry Trends - **Shift to Smaller Models**: The trend towards smaller AI models is influencing cloud revenue dynamics, with overall cloud usage remaining substantial [25][29] - **Competitive Pricing Pressure**: Aggressive price competition in AI cloud leasing services is impacting gross margins, particularly for new projects [32] Conclusion Kingsoft Cloud's Q1 2025 performance reflects strong growth in public cloud and AI segments, supported by strategic partnerships and effective cost management. However, market challenges such as seasonality and chip demand issues may impact future growth trajectories. The company remains focused on leveraging its ecosystem and advancing AI capabilities to drive long-term value creation.

Group 1: HuanShi Logistics IPO - HuanShi International Logistics Holdings Limited submitted its IPO application to the Hong Kong Stock Exchange on May 27, aiming to list on the main board [1] - The company operates a comprehensive cross-border logistics service with over 6,000 cross-border routes covering approximately 200 countries and regions [1] - Revenue for HuanShi Logistics was reported at $2.06 billion, $776 million, and $1.25 billion for the years 2022, 2023, and 2024 respectively, indicating significant financial improvement [1] Group 2: Kingsoft Cloud Q1 Performance - Kingsoft Cloud announced a total revenue of 1.97 billion yuan for the first quarter ending March 31, 2025, representing a year-on-year growth of 10.9% [2] - Adjusted EBITDA increased 8.6 times to 320 million yuan, with an adjusted EBITDA margin of 16.2%, up 14.3 percentage points year-on-year, driven by the rising contribution of AI revenue [2] - The growth in AI technology application positions Kingsoft Cloud favorably in the competitive cloud computing market [2] Group 3: Basic Semiconductor IPO - Shenzhen Basic Semiconductor Co., Ltd. submitted its IPO application to the Hong Kong Stock Exchange on May 27, focusing on the research, development, manufacturing, and sales of silicon carbide power devices [3] - The company is recognized as the only Chinese enterprise with comprehensive capabilities in silicon carbide chip design, wafer manufacturing, module packaging, and gate driver design and testing [3] - The IPO is expected to enhance the company's R&D and production capabilities, promoting technological breakthroughs and market expansion in China's silicon carbide power device industry [3] Group 4: Qingke Investment Strategy - Qingke Chuangye announced the subscription of financial products totaling 16 million yuan on May 28, issued by Yinhe Jinhui [4] - Prior to this, the company had subscribed to financial products totaling 64 million yuan between April 17, 2024, and November 18, 2024 [4] - This investment strategy aims to optimize the company's capital allocation and improve capital efficiency [4]

Core Viewpoint - Kingsoft Cloud reported a revenue of 1.97 billion yuan for Q1 2025, reflecting a year-on-year growth of 10.9% [1] Revenue Breakdown - Public cloud revenue reached 1.35 billion yuan, up 14.0% year-on-year [1] - Industry cloud revenue amounted to 620 million yuan, showing a year-on-year increase of 4.8% [1] EBITDA Performance - Adjusted EBITDA grew 8.6 times year-on-year, reaching 320 million yuan [1] - Adjusted EBITDA margin improved to 16.2%, an increase of 14.3 percentage points year-on-year, primarily driven by the rising contribution of AI revenue [1] AI Revenue Contribution - AI billing revenue for the quarter was 530 million yuan, with a year-on-year growth exceeding 200% [1] - AI revenue accounted for 39% of public cloud revenue during the quarter [1]

Group 1 - The company reported an unaudited financial performance for the three months ending March 31, 2025, with total revenue reaching 1.97 billion yuan (271.51 million USD), representing a year-on-year growth of 10.9% [1] - Public cloud service revenue was 1.354 billion yuan (186.5 million USD), showing a year-on-year increase of 14.0% [1] - Industry cloud service revenue amounted to 617 million yuan (85.0 million USD), with a year-on-year growth of 4.8% [1] Group 2 - Adjusted gross profit was 328 million yuan (45.2 million USD), reflecting a year-on-year increase of 9.6% [1] - Adjusted operating loss narrowed to 55.8 million yuan (7.7 million USD), a reduction of 56% year-on-year [1] - Adjusted EBITDA profit reached 319 million yuan (43.9 million USD), with an adjusted EBITDA margin of 16.2% [1]

Revenue Performance - Total revenue for the first quarter reached RMB 1,970.0 million (approximately USD 271.51 million), representing a year-on-year increase of 10.9% compared to RMB 1,775.7 million in the same quarter of 2024[9]. - Revenue from public cloud services was RMB 1,353.5 million (USD 186.5 million), a year-on-year increase of 14.0% from RMB 1,187.4 million, driven primarily by growing demand for artificial intelligence[9]. - Revenue from industry cloud services was RMB 616.5 million (USD 85.0 million), a year-on-year increase of 4.8% from RMB 588.2 million, but a quarter-on-quarter decrease of 25.0% due to seasonal impacts[11]. - The company experienced a seasonal decline in revenue, with a quarter-on-quarter decrease of 11.7% from RMB 2,232.1 million in the previous quarter[9]. - Kingsoft Cloud's public cloud services revenue for the three months ended March 31, 2025, was RMB 1,353,479 thousand (approximately USD 186,514 thousand), a decrease from RMB 1,409,804 thousand in the previous quarter[30]. Profitability and Loss - Adjusted gross profit was RMB 327.7 million (USD 45.2 million), a year-on-year increase of 9.6%, with an adjusted gross margin of 16.6% compared to 16.8% in the same quarter of 2024[8]. - Operating loss was RMB 234.2 million (USD 32.3 million), improving from RMB 274.2 million in the same quarter last year and from RMB 43.5 million in the previous quarter[15]. - Net loss was RMB 316.1 million (USD 43.6 million), compared to RMB 363.6 million in the same quarter last year and RMB 200.6 million in the previous quarter[16]. - Non-GAAP EBITDA was RMB 318.5 million (USD 43.9 million), with an EBITDA margin of 16.2%, compared to 1.9% in the same quarter last year and 16.1% in the previous quarter[16]. - The improvement in net loss is attributed to enhanced revenue quality, revenue mix adjustment, and strict cost control measures[16]. Operating Expenses - Operating expenses totaled RMB 552.5 million (USD 76.1 million), a decrease of 2.6% year-on-year, but an increase of 17.7% quarter-on-quarter[13]. - General and administrative expenses were RMB 182.0 million (USD 25.1 million), a decrease of 16.8% year-over-year from RMB 218.7 million and a slight increase of 1.4% quarter-over-quarter from RMB 179.5 million[14]. - Research and development expenses were RMB 226.2 million (USD 31.2 million), a decrease of 2.5% year-over-year from RMB 232.0 million and an increase of 29.9% quarter-over-quarter from RMB 174.2 million[15]. - The increase in operating costs was primarily due to investments in AI computing resources[12]. Cash Flow and Financial Position - Cash and cash equivalents as of March 31, 2025, were RMB 2,322.7 million (USD 320.1 million), down from RMB 2,648.8 million as of December 31, 2024, primarily due to operational investments and procurement of computing power equipment[17]. - Total assets increased to RMB 19,721,074 thousand (approximately USD 2,717,636 thousand) as of March 31, 2025, from RMB 17,592,654 thousand as of December 31, 2024[27]. - Total liabilities as of March 31, 2025, were RMB 14,376,429 thousand (approximately USD 1,981,124 thousand), an increase from RMB 12,087,334 thousand as of December 31, 2024[28]. - The company reported a significant increase in accounts receivable, net amounting to RMB 1,807,011 thousand (approximately USD 249,013 thousand) as of March 31, 2025, compared to RMB 1,468,663 thousand as of December 31, 2024[27]. Future Outlook and Strategic Focus - The CEO highlighted a 228% year-on-year growth in AI business revenue, amounting to RMB 525 million, which accounted for 39% of public cloud services[8]. - The company is confident in the sustainable development of its AI-related investments and business[8]. - The company continues to focus on strategic vertical industries, leveraging its extensive cloud infrastructure and advanced cloud-native products[24]. - The company plans to hold an earnings conference call on May 28, 2025, to discuss financial results and future outlook[18].

" 始于卖资源的智算生意，搏的是当下的资本，还是对未来的确 信？ " 作者丨赵之齐 编辑丨胡敏 "未来智算业务一定会成为独立云厂营收的主要支柱，不然也没有别的支柱了"，算力行业人士王志苦笑。 2022年底，王志所在的独立云厂，也在卖CDN、公有云价格战中伤痕累累。当时云计算市场头部集中， 留给中小厂商的空间微乎其微；即便是成功上市的优刻得（UCloud）、青云科技、金山云等，持续的营 收下滑和亏损加剧，也已让资本们有些失去信心。 直到生成式AI的出现，独立云厂窥见新的希望，王志所在的公司开始了在智算领域的第一个尝试：卖资 源。他清晰地记得，2023年初完成了第一单A800机器成交后，脑中浮现出的第一个念头： "赌对了！" 当时，一台八卡的A800机器租赁价七八万一个月，市场已觉得有些昂贵，谁知，在那之后两年，算力价 格一度水涨船高——2023年底，英伟达推出的包括A800、A100、H800等五种特供显卡被列入禁令，加 上2024年的AI狂奔，有行业人士透露，A800服务器市价曾达到100-200万一台，H800服务器达到200- 300万一台，A100价格也从10万炒到了20万。而王志所在的公司，智算业务布 ...

Core Viewpoint - Kingsoft Cloud Holdings Limited will release its unaudited financial results for Q1 2025 on May 28, 2025, before U.S. market opening [1] Group 1: Financial Results Announcement - The financial results will cover the period ended March 31, 2025 [1] - The announcement is scheduled for before the opening of U.S. markets on May 28, 2025 [1] Group 2: Earnings Conference Call - Kingsoft Cloud's management will host an earnings conference call on May 28, 2025, at 8:15 am U.S. Eastern Time [2] - The corresponding time for Beijing/Hong Kong is 8:15 pm on the same day [2] Group 3: Preregistration Information - Participants can preregister for the conference call via a provided link to receive dial-in numbers and access codes [3] - After preregistration, participants will receive a calendar invite with the necessary details to join the conference [3] Group 4: Webcast Availability - A live and archived webcast of the conference call will be available on the Company's investor relations website [4] Group 5: Company Overview - Kingsoft Cloud is a leading cloud service provider in China, offering a comprehensive cloud platform with extensive infrastructure and industry-specific solutions [5]