Investment Rating - The report upgrades the investment rating of the company to "Buy" [2] Core Views - The company achieved total revenue of 1.89 billion yuan in Q3 2024, representing a year-on-year growth of 16.0%, primarily driven by accelerated growth in AI business [1] - The adjusted EBITDA margin reached 9.8%, showing strong operational momentum, with a significant year-on-year increase of 12.6 percentage points [1] - The company is expected to continue benefiting from its ecosystem with Xiaomi and Kingsoft, with a revenue cap of 11.3 billion yuan from 2025 to 2027 [1] Summary by Sections Financial Performance - Q3 2024 gross profit was 300 million yuan, up 54.6% year-on-year, with a gross margin of 16.1%, an increase of 4.0 percentage points [1] - Public cloud revenue in Q3 2024 was 1.18 billion yuan, a year-on-year increase of 15.6%, while AI revenue reached 360 million yuan, accounting for 31% of public cloud revenue [1] - Industry cloud revenue was 710 million yuan in Q3 2024, reflecting a year-on-year and quarter-on-quarter increase of 16.7% and 8.0%, respectively [1] Strategic Developments - The company signed a cooperation agreement with Zhuhai High-tech Zone to support the development of a "Cloud Smart City" [1] - The company is focusing on enhancing profitability and sustainability in its industry cloud projects, particularly in public services, healthcare, and finance [1] Profitability Forecast - The adjusted net profit for 2024 is revised down to -2.09 billion yuan, while the forecasts for 2025 and 2026 are adjusted up to -210 million yuan and 160 million yuan, respectively [1] - The company is expected to achieve positive adjusted operating profit margin by 2025 [1]

Group 1 - The core viewpoint of the report is that Kingsoft Cloud's revenue for the third quarter increased by 16% year-on-year, reaching 1.89 billion yuan, slightly exceeding market expectations, primarily driven by significant growth in AI revenue and a recovery in enterprise cloud business [1] - Gross margin improved by 4 percentage points year-on-year [2] - Bank of America expects further improvement in gross margin in the fourth quarter due to the expansion of AI business and adjustments in enterprise cloud projects, raising the target price from HKD 1.7 to HKD 3.4 while maintaining a "neutral" rating [2]

Market Performance - The Dow Jones Industrial Average rose by 139.53 points, or 0.32%, to close at 43,408.47 [1] - The Nasdaq Composite fell by 21.32 points, or 0.11%, to 18,966.14 [1] - The S&P 500 edged up by 0.13 points to 5,917.11 [1] Large-Cap Tech Stocks - Netflix surged over 1% to reach a new high [1] - Apple and Meta saw slight increases [1] - Tesla and Google dropped more than 1% [1] - Amazon, Microsoft, Nvidia, and Intel experienced minor declines [1] Chinese ADRs - The Nasdaq Golden Dragon China Index gained 1.44% [1] - Kingsoft Cloud soared over 42% [1] - iQIYI rose more than 4% [1] - Bilibili increased over 3% [1] - New Oriental and TAL Education Group both climbed more than 2% [1] - XPeng Motors, Baidu, and NIO saw gains of less than 1% [1] - Li Auto fell more than 1% [1]

Financial Data and Key Metrics Changes - Company achieved total revenue of RMB1.89 billion, reflecting a 16% year-over-year increase, marking a return to double-digit growth [15][36] - Adjusted gross profit reached RMB308 million, up 56.7% year-over-year, with an adjusted gross margin of 16.3% [15][38] - Adjusted EBITDA reached RMB185 million, with an adjusted EBITDA margin of 9.8%, showing a significant year-over-year increase of 13 percentage points [10][16] - Net operating cash inflow amounted to RMB228 million, demonstrating strong cash-generating ability from operating activities [16][32] Business Line Data and Key Metrics Changes - Public cloud services revenue reached RMB1.18 billion, representing a year-on-year increase of 16% [17][36] - AI revenue surged to RMB362 million, accounting for 31% of public cloud revenues, with triple-digit year-over-year growth for five consecutive quarters [11][29] - Enterprise cloud services revenue amounted to RMB710 million, up 16.7% year-over-year, driven by increased demand in selected verticals [20][36] Market Data and Key Metrics Changes - Revenue contribution from Xiaomi and Kingsoft ecosystem increased by 36% year-over-year, with the ecosystem clients contributing 28% of public cloud revenue [13][30] - Company’s market share has steadily increased amid a decline in market share for other Internet cloud service providers [14] Company Strategy and Development Direction - Company continues to focus on high-quality and sustainable development strategy, enhancing profitability and cash-generating capabilities [25][41] - Emphasis on AI transformation and collaboration with Xiaomi and Kingsoft ecosystem to capitalize on growth opportunities [12][25] - Plans to explore new AI business models and deepen cooperation with ecosystem partners [12][25] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential from the Xiaomi and Kingsoft ecosystem, driven by strong AI opportunities [45][47] - Anticipated continued improvement in profitability and market share, with a focus on AI and cloud demand [33][35] - Guidance for Q4 2024 indicates expectations for accelerated revenue growth and improved profitability [33][34] Other Important Information - Company has secured additional CapEx resources for AI investments, applying for a cap of RMB11.3 billion for the next three years from related party transactions [59][60] - Strong liquidity position with cash and cash equivalents totaling RMB1,617.9 million [40] Q&A Session Summary Question: Growth potentials of strategic customers and service strategy - Management highlighted the rapid growth of business opportunities from the Xiaomi and Kingsoft ecosystem, supported by strong AI-related functions and customer demand [45][46] Question: Outlook on adjusted EBITDA margin and operating margin - Management noted significant expansion in gross margin and EBITDA margin, with expectations for continued improvement in operating profit [48][50] Question: Margin profile of AI business and revenue from Xiaomi and Kingsoft Group - Management indicated that AI-related products deliver higher gross margins compared to traditional public cloud services, with both segments achieving double-digit growth [54][56] Question: Outlook for CapEx for this year and next year - Management confirmed secured CapEx resources and plans to utilize funding from shareholders to support AI business growth without diluting public shareholders [59][60]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Kingsoft Cloud Holdings Limited 金山云控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3896） （納斯達克股票代碼：KC） (1) 重續及修訂有關二零二二年金山軟件框架 協議的持續關連交易；及 (2) 重續及修訂有關二零二二年小米框架 協議的持續關連交易 獨立董事委員會及獨立股東之獨立財務顧問 重續及修訂持續關連交易 茲提述上市文件。於二零二二年十二月二十日，本公司(i)與金山軟件訂立二零 二二年金山軟件框架協議，內容有關本集團提供雲服務及接受綜合物業管理及 行政服務，初始期限自上市日期起至二零二四年十二月三十一日止為期三年； 及(ii)與小米訂立二零二二年小米框架協議，內容有關本集團提供雲服務、購買 定制終端設備及軟件和接受融資租賃，初始期限自上市日期起至二零二四年十 二月三十一日止為期三年。 董事會欣然宣佈，於二零二四年十一月十九日（交易時段後），本公司( ...

Revenue and Profitability - Total revenue reached RMB 1,885.6 million (USD 268.71 million), a year-on-year increase of 16.0% compared to RMB 1,625.2 million in the same quarter of 2023[8]. - Gross profit was RMB 303.4 million (USD 43.2 million), significantly increasing by 54.6% from RMB 196.2 million in the same quarter of 2023[8]. - Non-GAAP EBITDA was RMB 185.4 million (USD 26.4 million), compared to RMB -45.4 million in the same quarter of 2023, with a non-GAAP EBITDA margin of 9.8%[8]. - Public cloud service revenue was RMB 1,175.5 million (USD 167.5 million), a 15.6% increase year-on-year from RMB 1,016.6 million[13]. - Industry cloud service revenue was RMB 710.0 million (USD 101.2 million), a 16.7% increase year-on-year from RMB 608.5 million[14]. - AI-related business revenue reached RMB 362 million, accounting for approximately 31% of public cloud revenue[11]. - Revenue from the ecosystem related to Xiaomi and Kingsoft saw a significant year-on-year increase of 36%[11]. - Adjusted gross margin increased to 16.3%, a 4.5-fold increase from 3.6% in Q2 2022[11]. - Adjusted EBITDA margin improved from a loss of 8.6% in Q2 2022 to a profit of 9.8%, an increase of 18.4 percentage points[11]. Operating Costs and Losses - Operating costs for the quarter were RMB 1,582.2 million (USD 225.5 million), an increase of 10.7% compared to RMB 1,429.0 million in the same quarter of 2023[15]. - Total operating expenses amounted to RMB 1,447.1 million (USD 206.2 million), including long-term asset impairment of RMB 919.7 million (USD 131.1 million), which increased by 44.6% from RMB 1,001.1 million in the same quarter of 2023[19]. - The operating loss for the quarter was RMB 1,143.8 million (USD 163.0 million), compared to RMB 804.8 million in the same quarter of 2023 and RMB 277.6 million in the previous quarter[22]. - Net loss was RMB 1,061.1 million (USD 151.2 million), an increase from RMB 789.7 million in the same quarter of 2023 and RMB 353.7 million in the previous quarter[22]. Cash Flow and Financial Position - Cash and cash equivalents as of September 30, 2024, were RMB 1,617.9 million (USD 230.6 million), down from RMB 1,837.8 million as of June 30, 2024[23]. - As of December 31, 2023, total assets amounted to RMB 15,070,278, increasing to RMB 16,696,584 by September 30, 2024, representing a growth of approximately 10.8%[38]. - Total liabilities increased from RMB 7,824,374 on December 31, 2023, to RMB 11,125,436 by September 30, 2024, reflecting a rise of about 42.9%[40]. - Cash and cash equivalents decreased from RMB 2,255,287 on December 31, 2023, to RMB 1,617,935 by September 30, 2024, a decline of about 28.3%[38]. - The company reported a net decrease in cash and cash equivalents of RMB (1,091,459) thousand for the three months ended September 30, 2023[53]. Research and Development - Research and development expenses increased by 17.7% year-over-year to RMB 235.9 million (USD 33.6 million), primarily due to rising labor costs[19]. - The company has a strong foundation in cloud technology research and development, which supports its advanced cloud-native products[35]. Strategic Outlook - The company maintained a strong belief in its "high-quality sustainable development strategy," leading to robust performance in the third quarter[11]. - The company expects steady growth in Q4 2024, driven by public cloud and industry cloud, with anticipated accelerated revenue growth and improved profitability[26]. - The company plans to continue its market expansion efforts and invest in new product development to enhance its competitive position in the industry[44]. - The company is focusing on strategic acquisitions to bolster its market presence and drive future growth[44]. Non-GAAP Financial Metrics - The company utilizes several non-GAAP financial metrics, including non-GAAP gross profit and non-GAAP EBITDA, to assess its operational performance[30]. - Non-GAAP gross profit is defined as gross profit excluding stock-based compensation expenses, while non-GAAP gross margin is the percentage of non-GAAP gross profit to revenue[30]. Forward-Looking Statements - Forward-looking statements regarding the company's business outlook and strategic plans are subject to inherent risks and uncertainties[34]. - The company does not undertake to update any forward-looking statements unless required by applicable law[34]. - The company emphasizes the importance of reviewing its financial data in a holistic manner rather than relying on a single financial metric[31].

Mr. Henry He, Chief Financial Officer of Kingsoft Cloud, added, "We recorded another strong quarter with growth in both revenue and profits. The Company achieved a double-digit year-on-year growth in total revenue, reaching RMB1,885.6 million, restoring the high-speed growth of revenue. Meanwhile, the growth rates of our gross profit and EBITDA profit far exceed the industry average level. Compared with the adjusted gross profit margin of 3.6% in the second quarter of 2022, which was before the Company carr ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 1 Kingsoft Cloud Holdings Limited 金山云控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3896） （納斯達克股票代碼：KC） 本公司應屆股東特別大會的記錄日期 金山云控股有限公司（「本公司」）董事（各為一名「董事」，統稱為「董事」）會（「董 事會」）宣佈，確定本公司每股面值0.001美元普通股（「股份」）的持有人是否符合 資格出席本公司應屆股東特別大會（「股東特別大會」）及於會上表決的記錄日期將 為香港時間二零二四年十一月二十九日（星期五）營業時間結束時（「股份記錄日 期」）。 為符合資格出席應屆股東特別大會及於會上表決，(1)就登記於本公司香港股份過 戶登記處的股份而言，所有有效的股份過戶文件連同相關股票必須在不遲於香港 時間二零二四年十一月二十九日（星期五）下午四時三十分前送達本公司香港股份 過戶登記處卓佳證券登記有限公司（「香港股份過戶登記處」），地址 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Kingsoft Cloud Holdings Limited 金山云控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3896） 本公司董事會（「董事會」）宣佈，為加快對人工智能基礎設施的投資，於二零二四 年十一月十一日，北京金山雲網絡技術有限公司（本公司的併表聯屬實體，「金山 雲網絡」）與中信金融租賃有限公司（「中信金融租賃」）經公平協商後訂立融資租賃 協議（「該協議」），據此，中信金融租賃同意通過售後回租若干服務器的方式向金 山雲網絡提供融資租賃服務，融資租賃本金總額為人民幣250百萬元。該協議期 限為3年，首期年利率為4.35%。 本公司相信，訂立該協議將通過補充營運資金，拓寬本公司的融資渠道、增加本 公司的流動資金來源及優化本公司資本架構。 於本公告日期，訂立該協議及該協議項下的交易不構成《香港聯合交易所有限公 司證券上市規則》項下的須予公佈的交易或關連交易。 承董事會命 金山云控股有 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Kingsoft Cloud Holdings Limited 金山云控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3896） （納斯達克股票代碼：KC） 董事會會議召開日期 金山云控股有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將於二 零二四年十一月十九日（星期二）舉行董事會會議，以（其中包括）考慮及通過本公 司、其子公司及併表聯屬實體截至二零二四年九月三十日止三個月的未經審計第 三季度業績及其發佈。 本公司的管理層將於北京╱香港時間二零二四年十一月十九日（星期二）下午八時 十五時（即美國東部時間同日上午七時十五時）舉行業績電話會議。 有意參加電話會議的參與者請在會議計劃開始時間前使用下文提供的連結完成在 線登記。於登記後，參與者將收到電話會議進入信息（包括電話會議進入碼、個 人辨識碼（個人進入碼）、撥號以及一封載有如何連入電話會議的詳細指示電子郵 件）。 參與者在線登記： ...