金山云 年第一季度业绩交流 原文 24 240522_ 2024年05月23日09:51 发言人1 00:00 无效无效无效无效无效无效无效无效。 发言人1 00:22 无效。今天。 发言人2 00:26 今天。 发言人1 00:30 无效。 发言人1 00:40 哎呦。 发言人1 00:47 无效。 ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2024 reached RMB1.78 billion, increasing by 3.1% quarter-over-quarter [6][19] - Adjusted gross profit for the quarter was approximately RMB300 million, marking a 54% year-over-year increase [7][21] - Adjusted EBITDA turned positive for the first time, reaching RMB33.19 million with an adjusted EBITDA margin of 1.9%, improving by 8.9 percentage points year-over-year [6][19] Business Line Data and Key Metrics Changes - Public cloud services revenues were RMB1.19 billion, up 12.9% quarter-over-quarter, with AI revenue surging to RMB160 million, a 93% increase quarter-over-quarter [7][19] - Enterprise cloud services revenues amounted to RMB590 million, reflecting a decrease from RMB670.3 million in the previous quarter due to fewer project deliveries during the Chinese New Year [19][20] Market Data and Key Metrics Changes - Revenues from the Xiaomi and Kingsoft ecosystem contributed 19% to total revenues, an increase of 4 percentage points year-over-year [8] - CDN revenue remained stable, accounting for 23% of total revenues, with ongoing efforts to enhance profitability through high value-added product sales [9] Company Strategy and Development Direction - The company is focused on high-quality and sustainable development, emphasizing high-margin products and services, particularly in AI [15][24] - Kingsoft Cloud has established Kingsoft AI as a wholly-owned subsidiary to capitalize on opportunities in intelligent digital transformation [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of profitability improvements, citing better revenue mix and operational efficiency as key drivers [28][30] - The company anticipates continued growth in AI revenue and plans to invest significantly in infrastructure and technology to support this growth [36][38] Other Important Information - As of March 31, 2024, cash and cash equivalents stood at RMB1.8 billion, providing liquidity for operations and investments [23] - The company was recognized in S&P Global's Sustainable Yearbook and received a single A rating in MSCI ESG ratings, highlighting its commitment to corporate responsibility [24] Q&A Session Summary Question: Expectations for adjusted EBITDA margin improvement and coping with aggressive pricing strategies - Management expects continued improvement in EBITDA margins driven by better revenue mix and operational efficiency, with no numeric guidance provided [28][30] Question: Drivers of significant AI revenue growth and CapEx guidance - AI revenue growth is attributed to diversified client demand and ongoing investments, with total investment in AI expected to multiply compared to the current quarter [36][38]

Exhibit 99.1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Kingsoft Cloud Holdings Limited 金山云控股有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 3896) (Nasdaq S ...

Financial Performance - For Q1 2024, Kingsoft Cloud reported total revenue of RMB 1,775.7 million (approximately USD 245.91 million), a 3.1% increase from RMB 1,722.5 million in Q4 2023, but a 4.8% decrease from RMB 1,864.4 million in Q1 2023[4] - Adjusted EBITDA turned positive at RMB 33.2 million, representing a margin of 1.9%, compared to a loss of RMB 130.5 million in Q1 2023[3] - Adjusted gross profit increased by 53.8% year-over-year to RMB 299.1 million, with an adjusted gross margin of 16.8%, up 6.4 percentage points from 10.4% in Q1 2023[3] - Gross profit was RMB 293.3 million (USD 40.6 million), a significant increase of 51.0% compared to RMB 194.2 million in the same period of 2023, indicating improved revenue quality[6] - Gross margin improved to 16.5%, up from 10.4% in the same period of 2023[6] - Operating loss narrowed to RMB 274.2 million (USD 38.0 million), significantly improved from RMB 342.7 million in the previous quarter and RMB 597.9 million in the same period of 2023[6] - Net loss was RMB 363.6 million (USD 50.4 million), compared to RMB 286.8 million in the previous quarter and RMB 608.8 million in the same period of 2023[6] - Non-GAAP net loss was RMB 217.3 million (USD 30.1 million), down from RMB 250.4 million in the previous quarter and RMB 412.5 million in the same period of 2023[8] - Non-GAAP EBITDA was RMB 33.2 million (USD 4.6 million), improving from RMB -27.7 million in the previous quarter and RMB -130.5 million in the same period of 2023[8] Revenue Breakdown - Public cloud service revenue rose by 12.9% quarter-over-quarter to RMB 1,187.4 million, driven by increased contributions from AI-related customers[4] - AI-related revenue accounted for approximately 13% of public cloud service revenue in Q1 2024, up from 8% in the previous quarter[3] - Industry cloud service revenue decreased by 12.3% quarter-over-quarter to RMB 588.2 million, and down 17.2% year-over-year from RMB 710.0 million[4] Cost Management - Operating costs decreased by 11.2% year-over-year to RMB 1,482.4 million, with significant reductions in internet data center costs[4] - Total operating expenses decreased to RMB 567.4 million (USD 78.6 million), down from RMB 595.9 million in the previous quarter and RMB 792.1 million in the same period of 2023[6] Research and Development - Research and development expenses increased to RMB 232.0 million (USD 32.1 million), compared to RMB 175.2 million in the previous quarter and RMB 215.4 million in the same period of 2023[6] Cash and Assets - Cash and cash equivalents as of March 31, 2024, were RMB 1,811.7 million (USD 250.9 million), down from RMB 2,255.3 million as of December 31, 2023[8] - As of March 31, 2024, total assets amounted to RMB 15,952,480 thousand, an increase from RMB 15,070,278 thousand as of December 31, 2023, reflecting a growth of approximately 5.85%[15] - Cash and cash equivalents decreased to RMB 1,811,739 thousand from RMB 2,255,287 thousand, representing a decline of about 19.7%[15] - Total liabilities increased to RMB 8,944,691 thousand as of March 31, 2024, up from RMB 7,824,374 thousand, indicating a rise of approximately 14.3%[16] - The company's equity decreased to RMB 7,007,789 thousand from RMB 7,245,904 thousand, a decline of about 3.3%[16] - Accounts receivable net amount increased to RMB 1,649,807 thousand from RMB 1,529,915 thousand, showing a growth of approximately 7.8%[15] - The company reported a total of RMB 6,238,190 thousand in current assets as of March 31, 2024, compared to RMB 6,098,124 thousand, marking an increase of about 2.3%[15] - Short-term bank loans rose to RMB 1,218,629 thousand from RMB 1,110,896 thousand, reflecting an increase of approximately 9.7%[16] - The company’s goodwill remained stable at RMB 4,605,724 thousand as of both reporting dates[15] - Non-current liabilities increased significantly to RMB 1,909,498 thousand from RMB 995,784 thousand, indicating a rise of approximately 91.7%[16] - The company’s restricted cash increased to RMB 279,021 thousand from RMB 234,194 thousand, representing a growth of about 19.1%[15] Sustainability and ESG - The company has invested billions of RMB in AI over the past year, focusing on optimizing its business portfolio and controlling costs[3] - Kingsoft Cloud released its fourth ESG report since its IPO in 2020, highlighting its commitment to sustainable development[3] - The company emphasizes profitability and sustainability in its selected verticals, including public cloud services, state-owned cloud, healthcare, and financial services[4]

Financial Performance - Total revenues for the year ended December 31, 2023, were RMB 8,180.1 million, a decrease of 13.8% from RMB 7,047.5 million in 2022[11]. - Gross profit for 2023 was RMB 429.5 million, representing a significant increase of 97.9% from RMB 850.2 million in 2022[11]. - Net loss attributable to Kingsoft Cloud Holdings for 2023 was RMB 2,688.4 million, an increase of 18.8% compared to RMB 2,183.6 million in 2022[11]. - Non-GAAP adjusted gross profit for 2023 was RMB 859.9 million, up 93.2% from RMB 445.2 million in 2022[24]. - Average revenues per Public Cloud Service Premium Customer decreased to RMB 20.1 million in 2023 from RMB 26.7 million in 2022[21]. - Revenues from public cloud services were RMB 4,381.7 million, while revenues from enterprise cloud services were RMB 2,664.0 million in 2023[24]. - Gross margin improved to 12.1% in 2023, compared to 5.3% in 2022[24]. - Adjusted net loss margin for 2023 was 18.3%, an improvement from 24.4% in 2022[17]. Customer and Market Metrics - The number of Public Cloud Service Premium Customers increased to 214 in 2023 from 197 in 2022[21]. - Revenues from public cloud services were RMB 4,381.7 million (US$617.2 million), representing a decrease of 18.3% from RMB 5,360.3 million in 2022[36]. - The single largest customer accounted for 14.7% of total revenue, while the top five customers accounted for 47.3% of total revenue for the year ended December 31, 2023[136]. Research and Development - Research and development expenses were RMB 784.8 million (US$110.5 million), down from RMB 971.2 million in 2022[39]. - The workforce in the Wuhan R&D team grew to over 500 people, accounting for approximately 40% of total R&D personnel[31]. - The company established an AI Research and Development Center in 2023, focusing on application, algorithm, and platform capabilities[30]. Capital and Assets - Total capital expenditure for 2023 was RMB 1,964.7 million (US$276.7 million)[28]. - Cash and cash equivalents as of December 31, 2023, amounted to RMB 2,255.3 million (US$317.7 million), a decrease of 34.0% from RMB 3,419.2 million in 2022[42]. - The total assets of the Consolidated Affiliated Entities amounted to RMB 8,042.7 million as of December 31, 2023, representing approximately 53.4% of the total assets of the Group[123]. Corporate Governance - Kingsoft Cloud is committed to high corporate governance standards, ensuring the protection of shareholder interests and enhancing corporate value[186]. - The Board comprises seven members, including two executive Directors, two non-executive Directors, and three independent non-executive Directors, meeting the independence requirements of the Listing Rules[191][196]. - The Company has fully complied with all code provisions of the Corporate Governance Code during the reporting period[187]. - The Board met five times during the reporting period, with all Directors actively participating in meetings[194]. Loans and Financial Arrangements - Kingsoft Corporation has agreed to provide a loan facility of up to RMB 1.5 billion to the Group from December 5, 2023, to December 31, 2025[85]. - The Group borrowed RMB 500 million from the Unsecured Loan Facility at a fixed annual interest rate of 3.75%, to be fully repaid by September 2024[87]. - Kingsoft Cloud Holdings Limited has entered into multiple loan agreements with Ms. Qiu Weiqin, providing interest-free loans, with repayment structured through equity transfers[105]. Impairment and Recoverability - The company recognized a total impairment loss of RMB 653.67 million (US$92.067 million) on long-lived assets for the year ended December 31, 2023, due to declines in public cloud service revenue[68]. - The company performed a recoverability test for the public cloud asset group as of December 31, 2023, and no further impairment was considered necessary[69]. Compliance and Regulatory Matters - The company has complied with relevant laws and regulations impacting its operations, including the Hong Kong Companies Ordinance and the Corporate Governance Code[80]. - Kingsoft Cloud is in the process of applying for VAT Licenses for value-added telecommunications services, which are essential for its cloud service offerings[118]. - The contractual arrangements are designed to navigate foreign investment restrictions in the PRC, particularly in the telecommunications sector[115]. Employee and Management Structure - The company has a total of 10,493 employees, with 79% (8,265) in solution development and services, 12% (1,243) in research and development, 6% (613) in general and administrative, and 3% (372) in sales and marketing[49]. - The Company has taken out liability insurance to provide appropriate coverage for the Directors[151]. - The roles of chairman and chief executive officer are separated, with Mr. Lei Jun as Chairman and Mr. Zou Tao as acting CEO[198].

Financial Performance - For the fiscal year ending December 31, 2023, Kingsoft Cloud reported total revenue of RMB 7,047,461 thousand, a decrease of 13.8% compared to RMB 8,180,107 thousand in 2022[7]. - Gross profit for 2023 was RMB 850,169 thousand, representing a significant increase of 97.9% from RMB 429,538 thousand in 2022[7]. - The net loss attributable to Kingsoft Cloud for 2023 was RMB 2,176,340 thousand, a reduction of 18.1% from RMB 2,658,184 thousand in 2022[7]. - Adjusted gross profit for 2023 was RMB 859,926 thousand, with an adjusted gross margin of 12.2%, up from 5.4% in 2022[10]. - The company reported a pre-tax loss of RMB 2,165,688 thousand for 2023, which is 18.7% less than the loss of RMB 2,663,915 thousand in 2022[7]. - Adjusted net loss for 2023 was RMB 2,183,647 thousand (USD 307,559 thousand), compared to RMB 2,688,388 thousand in 2022[12]. - Adjusted EBITDA for 2023 was RMB (265,064) thousand (USD (37,334) thousand), improving from RMB (754,958) thousand in 2022[12]. - Operating loss was RMB 2,108.6 million (USD 297.0 million), compared to RMB 2,251.4 million in 2022[25]. - Net loss was RMB 2,183.6 million (USD 307.6 million), down from RMB 2,688.4 million in 2022[25]. - Non-GAAP net loss was RMB 1,291.1 million (USD 181.9 million), with no previous figure provided for comparison[25]. Revenue Breakdown - Total revenue for 2023 reached RMB 7,047.5 million (USD 992.6 million), with public cloud service revenue at RMB 4,381.7 million (USD 617.2 million) and industry cloud service revenue at RMB 2,664.0 million (USD 375.2 million)[16]. - Revenue from public cloud services was RMB 4,381.7 million (USD 617.2 million), down 18.3% from RMB 5,360.3 million in 2022[23]. - Industry cloud services revenue amounted to RMB 2,664.0 million (USD 375.2 million), a decrease of 5.4% from RMB 2,817.0 million in 2022[23]. Cost Management and Efficiency - Operating costs were RMB 6,197.3 million (USD 872.9 million), a reduction of 20.0% from RMB 7,750.6 million in 2022[23]. - The adjusted gross margin increased significantly, indicating improved operational efficiency and cost management strategies[9]. - Adjusted net loss margin for 2023 was 31.0%, compared to 32.9% in 2022, indicating improved efficiency[12]. - The normalized adjusted EBITDA margin for 2023 was 3.4%, down from 8.9% in 2022, reflecting challenges in operational efficiency[12]. Strategic Initiatives and Future Outlook - The company plans to continue focusing on product development and market expansion to drive future growth[9]. - Kingsoft Cloud is actively exploring new technologies and potential acquisitions to enhance its competitive position in the market[9]. - The management remains optimistic about future performance despite the recent revenue decline, citing strategic initiatives and market opportunities[9]. Research and Development - Research and development expenses were RMB 784.8 million, with a total of 1,243 R&D personnel as of December 31, 2023[19]. - The company established an AI R&D center in 2023, focusing on application, algorithms, and platform capabilities[19]. - The Wuhan R&D team grew to over 500 members, accounting for approximately 40% of the total R&D personnel[19]. Financial Position and Capital Management - Cash and cash equivalents as of December 31, 2023, were RMB 2,255.3 million (USD 317.7 million), a decrease of 34.0% from RMB 3,419.2 million as of December 31, 2022[28]. - The debt-to-equity ratio as of December 31, 2023, was 36.2%, up from 20.1% as of December 31, 2022[30]. - Capital expenditures totaled RMB 1,964.7 million (USD 276.7 million) in 2023, focusing on enhancing high-performance computing capabilities[18]. Corporate Governance and Compliance - The company has established a remuneration committee to determine the compensation policy for directors and senior management[96]. - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[115]. - The company has fully complied with all provisions of the corporate governance code during the reporting period[113]. - The independent non-executive directors have confirmed that there are no conflicts of interest between the group and Kingsoft Software during the reporting period[120]. Shareholder and Equity Information - Major shareholder Kingsoft Software owns 1,423,246,584 shares, accounting for 37.40% of the issued share capital[162]. - The company has a total of 449,701,000 shares held beneficially by Xiaomi Group, representing 11.82% of the issued share capital[162]. - The board does not recommend the distribution of a final dividend for the fiscal year ending December 31, 2023[92]. Risks and Challenges - The company faces significant risks related to competition, data security, and potential impairment of goodwill, which constitutes a large portion of total assets[42]. - The company may be adversely affected by the ongoing political tensions between China and the United States[53]. - The company faces significant uncertainties regarding the interpretation and application of current and future Chinese laws and regulations, which may impact the enforceability of contracts with variable interest entities[52]. Related Party Transactions - The company confirmed that all related party transactions were conducted on normal commercial terms and were fair and reasonable to shareholders[85]. - The annual cap for cloud services provided by Kingsoft Group to the company is RMB 265.3 million, with actual transactions amounting to approximately RMB 236.0 million for the year ending December 31, 2023[58].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 WASHINGTON, D.C. 20549 FORM 20-F For the fiscal year ended December 31, 2023. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...

2024年3月22日 公司研究 4Q23 AI 收入环比提升显著，2024 年经调整 EBITDA 有望实现转正 —— 金山云（3896.HK）4Q23 及 2023 年度业绩点评 要点 增持（维持） 当前价：1.86港元 事件：公司发布4Q23及2023全年业绩, 2023全年公司收入70.5亿元，同 比下降 13.8%，主要系公司主动缩减 CDN 业务规模以及更严格地筛选行业 云项目。23 全年公司实现毛利率 12.1%，同比显著提升 6.8pcts，其中 作者 4Q23 毛利率达到 14.7%，实现连续 6 个季度持续提升，主要受益于收入结 分析师：付天姿 构优化及有效的成本控制。2023全年实现归母净亏损21.8亿元，相比2022 执业证书编号：S0930517040002 年26.9亿元的亏损明显收窄。 021-52523692 futz@ebscn.com 持续深化小米&金山生态战略合作，4Q23 AI收入环比提升显著。4Q23公有 云实现收入 10.5 亿元，同比下降 21.7%，主要由于公司继续缩减 CDN 业务 联系人：黄铮 规模并优化客户结构，4Q23 公司 CDN 业务占总营收比例已降至 ...

Financial Data and Key Metrics Changes - For the full year of 2023, adjusted gross margin increased to 12.2%, up from 5.4% in 2022, representing a significant improvement of 6.8 percentage points [6][23] - Adjusted gross profit for 2023 was RMB860 million, nearly doubling from RMB445 million in 2022 [6][23] - Normalized adjusted EBITDA improved to negative 3.4% in 2023 from negative 8.9% in 2022 [6][23] - In Q4 2023, total revenues reached RMB1.72 billion, a 6.0% increase quarter-over-quarter [7][18] - Adjusted gross margin for Q4 2023 was 15.2%, marking a 3.1 percentage point increase quarter-over-quarter [7][18] Business Line Data and Key Metrics Changes - Public cloud services revenue for Q4 2023 was RMB1.05 billion, a 3.5% increase quarter-over-quarter [7][18] - Excluding CDN business, public cloud revenue increased by 11.8% quarter-over-quarter [7] - Enterprise cloud services revenue was RMB670 million, increasing by 10.2% quarter-over-quarter [10][19] - CDN revenue decreased by nearly 10% compared to the previous quarter, contributing approximately 23% of total revenue [10][18] Market Data and Key Metrics Changes - Revenue from the Xiaomi and Kingsoft ecosystem reached 16% of total revenue, up 5 percentage points year-over-year [8] - AI business represented approximately 8% of public cloud revenues, with an 82% increase quarter-over-quarter [9] Company Strategy and Development Direction - The company is strategically adjusting its business mix and embracing AI opportunities to lay a solid foundation for sustainable development [6][16] - Focus on enhancing operational management and building strengths in technology and innovation [6][16] - The company aims to improve profitability through strict cost control and talent training [16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive trend of profitability continuing into 2024, driven by synergies within the Xiaomi and Kingsoft Group ecosystems [23] - The company is optimistic about the demand for AI-related services and the potential for new customer growth [34][36] Other Important Information - The company signed a loan facility agreement with Kingsoft Corporation for RMB1.5 billion to support AI business development [9][22] - Cash and cash equivalents, along with long-term investments, amounted to RMB2.3 billion as of December 31, 2023, ensuring sufficient liquidity for operations [22] Q&A Session Summary Question: Can management provide insights on the AI strategy and CapEx plans? - Management highlighted the competitive positioning of AI products and the ongoing investment based on customer demand, though specifics on CapEx were not disclosed [25][30][31] Question: What are the drivers for gross margin improvement moving forward? - Management identified three key drivers: the stable CDN revenue contribution, cost-cutting measures, and improved project quality leading to higher margins [26][27][28] Question: What is the outlook for the enterprise cloud segment in 2024? - Management noted opportunities arising from the migration of state-owned asset companies to the cloud and the integration of digital assets with cloud services [42][45] Question: How does the company view the competitive landscape and pricing pressures? - Management acknowledged ongoing price competition but emphasized that customer satisfaction and service quality are more critical than pricing alone [46][48]

Revenue Performance - Total revenue for Q4 2023 reached RMB 1,722.5 million (USD 242.6 million), a 6.0% increase from RMB 1,625.2 million in Q3 2023, but a 19.2% decrease from RMB 2,131.0 million in Q4 2022[5] - Total revenue for the fiscal year 2023 was RMB 7,047.5 million (USD 992.6 million), a decrease of 13.8% from RMB 8,180.1 million in 2022[10] - Public cloud service revenue was RMB 4,381.7 million (USD 617.2 million), down 18.3% from RMB 5,360.3 million in 2022[10] - Industry cloud service revenue was RMB 2,664.0 million (USD 375.2 million), a decrease of 5.4% from RMB 2,817.0 million in 2022[10] - Public cloud service revenue increased by 3.5% quarter-over-quarter to RMB 1,052.0 million (USD 148.2 million), but decreased by 21.7% year-over-year from RMB 1,344.3 million[5] - Industry cloud service revenue was RMB 670.3 million (USD 94.4 million), a 10.2% increase from the previous quarter but a 14.7% decrease year-over-year[5] Profitability and Margins - Adjusted gross margin for 2023 was 12.2%, significantly up from 5.4% in 2022, with adjusted gross profit nearly doubling to RMB 859.9 million from RMB 445.2 million[4] - Gross profit reached RMB 253.1 million (USD 35.7 million), a significant increase of 56.3% compared to RMB 162.0 million in the same period of 2022, with a gross margin of 14.7% compared to 7.6% in 2022[7] - Operating loss narrowed to RMB 342.7 million (USD 48.3 million), significantly improved from RMB 804.8 million in the previous quarter and RMB 662.4 million in the same period of 2022[7] - Net loss was RMB 286.8 million (USD 40.4 million), a considerable reduction from RMB 789.7 million in the previous quarter and RMB 521.7 million in the same period of 2022[7] - The net loss for the three months ended December 31, 2023, was RMB 521,657 thousand, compared to a net loss of RMB 286,836 thousand for the same period in 2022, representing an increase in losses of 82%[26] - The net loss margin for the three months ended December 31, 2023, was -24.5%, compared to -16.7% for the same period in 2022, indicating a worsening profitability situation[27] Cost Management - Operating costs decreased by 25.4% year-over-year to RMB 1,469.3 million (USD 206.9 million), with IDC costs down 30.0% to RMB 740.4 million (USD 104.3 million)[5] - The company plans to continue strict cost control and believes there is potential for further improvement in profitability in 2024[4] - Total operating expenses amounted to RMB 595.9 million (USD 83.9 million), a substantial decrease from RMB 1,001.1 million in the previous quarter and RMB 824.3 million in the same period of 2022[7] Research and Development - The company established an AI research center and launched a Model-as-a-Service (MaaS) solution, enhancing data security features[4] - The workforce at the Wuhan research center exceeded 500 employees by the end of 2023, representing about 40% of the total R&D staff[4] - Research and development expenses were RMB 175.2 million (USD 24.7 million), further reduced from RMB 200.4 million in the previous quarter and RMB 255.5 million in the same period of 2022[7] Financial Position - Cash and cash equivalents and short-term investments totaled RMB 2,255.3 million (USD 317.7 million) as of December 31, 2023, indicating strong cash reserves[9] - Total current assets decreased from RMB 9,048,353,000 in 2022 to RMB 6,098,124,000 in 2023, a decline of approximately 32.3%[20] - Total non-current assets increased from RMB 8,267,878,000 in 2022 to RMB 8,972,154,000 in 2023, an increase of approximately 8.5%[20] - Total assets decreased from RMB 17,316,231,000 in 2022 to RMB 15,070,278,000 in 2023, a decline of approximately 12.9%[20] - Total current liabilities increased from RMB 6,658,626,000 in 2022 to RMB 6,828,590,000 in 2023, an increase of approximately 2.6%[20] - The total liabilities as of December 31, 2023, were RMB 7,824,374 thousand, slightly up from RMB 7,732,732 thousand in 2022, an increase of 1.2%[21] Future Outlook - The company is focusing on high-quality revenue expansion and improving profitability while creating value for customers, shareholders, employees, and society[4] - The company plans to hold an earnings conference call on March 20, 2024, at 8:15 AM ET[14] - The company plans to focus on expanding its public cloud services, which generated revenue of RMB 1,051,966 thousand for the three months ended December 31, 2023, compared to RMB 1,344,293 thousand in the same period of 2022, indicating a strategic shift in focus[22] Non-GAAP Metrics - The company utilizes several non-GAAP financial metrics to assess its operational performance, including non-GAAP gross profit and non-GAAP EBITDA[15] - Non-GAAP net loss was RMB 250.4 million (USD 35.3 million), compared to RMB 313.3 million in the previous quarter and RMB 552.7 million in the same period of 2022[9] - Adjusted EBITDA for the twelve months ended December 31, 2023, was RMB (726,170) thousand, compared to RMB (754,958) thousand for the same period in 2022, showing a slight improvement in operational performance[26] - The adjusted net loss for the three months ended December 31, 2023, was RMB (552,677) thousand, compared to RMB (250,410) thousand for the same period in 2022, representing a 120% increase in adjusted losses[26] - The adjusted net loss rate for the three months ended December 31, 2023, was -25.9%, compared to -14.5% for the same period in 2022, highlighting a decline in financial health[27] Cash Flow and Investments - The company reported a decrease in cash flow from operating activities to RMB 16,787 thousand for the three months ended December 31, 2023, down from RMB 370,446 thousand for the same period in 2022, reflecting operational challenges[28] - The net cash used in investing activities for the three months ended December 31, 2023, was RMB (1,414,761) thousand, compared to RMB (1,414,761) thousand for the same period in 2022, indicating a significant increase in investment outflows[28] - The company reported a net cash provided by financing activities of RMB 1,154,815 thousand for the three months ended December 31, 2023, compared to a net cash used of RMB (806,656) thousand for the same period in 2022, indicating a positive shift in financing[28] Currency and Exchange - The exchange rate used for converting RMB to USD is 7.0999 RMB per 1.00 USD as of December 31, 2023[17] - The company experienced a foreign exchange loss of RMB (132,290) thousand for the three months ended December 31, 2023, compared to a loss of RMB (74,011) thousand for the same period in 2022, indicating increased volatility in currency exchange[26]