Summary of Conference Call Records Company and Industry Involved - The conference call primarily discusses **Xiaomi** and its developments in the **AI**, **smart driving**, **IoT**, and **mobile phone** sectors [1][2][3][4]. Core Points and Arguments - **Leadership and Talent Acquisition**: Xiaomi has appointed Zhang Bo to lead its AI brand department, indicating a strategic focus on AI development. The company has also recruited talent from DeepSeek, enhancing its AI capabilities [1]. - **AI Model Development**: Xiaomi launched its second-generation AI model, which has a significantly larger training dataset and improved functionalities, showing an enhancement of over 45% compared to the first generation [1]. - **Smart Driving Sector Growth**: The smart driving segment is expected to see substantial growth, with a delivery target of over 300,000 vehicles for the year, up from over 130,000 last year. This growth will increase the demand for AI functionalities in smart driving applications [2][4]. - **IoT and Mobile Phone Integration**: Xiaomi's IoT business is leading in domestic shipments of smart speakers, and the mobile phone user base has reached 120 million. The integration of cloud-based AI models into mobile devices is anticipated to create strong demand for computational power [3][4]. - **AI Revenue Growth**: AI revenue has shown rapid growth, increasing from 180 million in the previous year to 360 million in the third quarter of the current year, indicating a significant upward trend [5]. - **Profitability and Margin Improvement**: The company has seen improvements in profit margins, with gross margins rising from single digits to approximately 16-17% due to a shift in revenue composition towards AI and away from traditional business segments [6][7]. - **Research and Development Strategy**: Xiaomi is relocating a portion of its R&D team to Wuhan, which may further enhance its innovation capabilities [7]. - **Financial Performance of Subsidiaries**: The financial performance of Kingsoft Cloud, a subsidiary, has improved, with a notable increase in revenue growth driven by AI initiatives [11]. - **Future Projections**: The company anticipates that its revenue from AI-related transactions with Xiaomi will increase in the coming years, with projected revenues of 900 million, 1.1 billion, 1.3 billion, and 1.6 billion over the next three years [9][10]. Other Important but Possibly Overlooked Content - **Market Positioning**: Kingsoft Cloud has established itself as an independent entity, no longer a consolidated subsidiary of Kingsoft, which may enhance its market positioning and operational flexibility [8]. - **External Client Relationships**: The company has begun to engage with external clients, including large model companies, which could diversify its revenue streams beyond Xiaomi [10][11]. - **Investment Opportunities**: There is a suggestion for investors to closely monitor Xiaomi's AI developments, as changes in this area could catalyze growth for related companies like Kingsoft Cloud [12].

本公司董事會（「董事會」）宣佈，長江聯合金融租賃有限公司已同意通過售後回租 若干服務器的方式向金山雲（慶陽）數據信息科技有限公司（「金山雲（慶陽）」）（本 公司的併表聯屬實體）提供融資租賃服務（「建議交易」），融資租賃本金總額為人 民幣500百萬元，期限為3年，由本公司的併表聯屬實體及金山雲（慶陽）的母公司 北京金山雲網絡技術有限公司提供擔保（「擔保」），年利率約為3.88%。 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） 有關融資租賃的自願性公告 本公告乃由金山云控股有限公司（「本公司」）根據融資租賃協議條款自願作出。 本公司相信，建議交易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，建議交易及擔保不構成《香港聯合交易所有 ...

Group 1 - The core viewpoint highlights the strong performance of various companies in the stock market, particularly in the technology and pharmaceutical sectors [1][2][3] - Kingsoft Cloud saw an increase of 11.79%, indicating sustained market confidence in its cloud services business [1] - Notable stock increases include Shandong Xinhua Pharmaceutical at 8.14%, Minmetals Resources at 6.77%, and China General Nuclear Power at 7.32% [2] Group 2 - Technology stocks performed exceptionally well, with SUTENG Technology leading the market with a 12.84% increase [3] - Other companies such as Hisense Home Appliances and Lai Kai Pharmaceutical-B also showed significant gains of 6.19% and 6.12% respectively [2] - The overall market sentiment appears positive, with multiple companies experiencing gains exceeding 5% [2]

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） 於二零二四年十二月三十一日舉行的股東特別大會的投票結果 茲提述金山云控股有限公司（「本公司」）日期為二零二四年十一月二十九日的通 函（「該通函」），當中載列（其中包括）本公司股東特別大會（「股東特別大會」）通 告。除本公告另有界定外，本公告所用詞彙與該通函所界定者具有相同涵義。 董事會欣然宣佈，於股東特別大會上提呈的所有決議案已獲股東以投票表決方式 正式通過。投票結果如下： | | 普通決議案 | | 所投票數及百分比(%) | | | --- | --- | --- | --- | --- | | | | 贊成 | 反對 | 放棄 | | 1. | 動議批准及確認本公司與金山軟件於二零二 | 571,621,983 | 192,030 ...

Investment Rating - The report initiates coverage with an "Outperform" rating for the company [5]. Core Insights - The company has strategically optimized its revenue mix, leveraging AI to drive a recovery in high-speed growth. Revenue grew from RMB 3.96 billion in 2019 to RMB 9.06 billion in 2021, with a CAGR of 51.3%. However, revenues declined in 2022 and 2023 due to the pandemic and strategic CDN reductions, recording RMB 8.18 billion and RMB 7.05 billion respectively [2][35]. - The company is a leading cloud service provider in China, focusing on enhancing technology, products, and services. The shift towards AI and revenue optimization has yielded significant results, with expectations for public cloud revenue to grow rapidly in the coming years [4][40]. Summary by Sections Company Overview - Founded in 2012, the company has built a comprehensive cloud infrastructure and operations system, offering over 150 solutions to more than 500 premium clients. Its business is divided into public and industry cloud services, with a strong focus on AI-driven product upgrades [1][36]. Financial Performance - In 2023, the company reported a gross profit of RMB 850 million, a 97.9% increase YoY, with a gross profit margin (GPM) of 12.1%, up 6.8 percentage points. The net profit attributable to shareholders was RMB -2.176 billion, an 18.1% improvement YoY [2][35]. AI and Strategic Initiatives - The establishment of an AI R&D center in 2023 has focused on applications, algorithms, and platforms. The company has formed strategic partnerships to enhance its AI capabilities, with AI revenue reaching RMB 360 million in Q3 2024, accounting for approximately 31% of public cloud revenue [3][48]. Revenue Forecast - The company anticipates public cloud revenue growth of 15.0%, 20.0%, and 22.5% YoY from 2024 to 2026, while industry cloud revenue is expected to grow at a stable rate of 3.0%, 4.0%, and 5.0% YoY during the same period. The gross profit margin is projected to rise to 17.0%, 21.0%, and 24.0% for 2024-2026 [4][40]. Target Price and Valuation - The forecasted revenues for 2024-2026 are RMB 7.784 billion, RMB 8.902 billion, and RMB 10.405 billion, representing YoY growth of 10.5%, 14.4%, and 16.9%. The target price is set at HKD 7.63, based on a 2025 price-to-sales ratio of 3.0x [5][40].

Key Points Industry and Company Involved - **Industry**: Cloud Computing, AI Applications - **Company**: Kingsoft Cloud (KSC), Kingsoft Corporation (KS) Core Views and Arguments - **KSC Growth**: KSC's revenue growth has been robust from 2019 to 2021. However, in 2022, annual revenue decreased by approximately 10%. Despite this, gross margin improved significantly, with adjusted EBITDA margin rising from a loss of 8.6% in Q2 2022 to a positive 9.8% [doc 2][doc 4]. - **KSC Revenue Projections**: KSC's revenue from Kingsoft Software and Xiaomi is expected to grow significantly, with a projected annual growth rate of nearly threefold from 2024 to 2026 [doc 5][doc 6]. - **KSC Valuation**: The target market capitalization for KSC is estimated at around 300 billion HKD [doc 7]. - **KS Financials**: KS's revenue for the first three quarters of 2023 was 29 billion RMB, a 40% increase year-on-year. Profit increased by 200% to 11.5 billion RMB [doc 9][doc 10]. - **KS Valuation**: The total valuation of KS, including the equity value of KSC and Kingsoft Office, could reach 1300-1400 billion RMB under an optimistic scenario [doc 11]. Other Important Points - **KSC's AI Business**: KSC's AI business revenue is expected to be significant by the third quarter of 2023 [doc 4]. - **KSC's Cloud Service Contracts**: KSC has cloud service contracts with Kingsoft Software and Xiaomi, with revenue ceilings of 4.7 billion, 6 billion, and 7.8 billion RMB for 2024, 2025, and 2026 respectively [doc 5]. - **KS's Game Business**: KS's game business, including West Mountain Games and Kingsoft Office, has seen significant growth, with revenue from games increasing by 77% year-on-year and 32% sequentially [doc 9][doc 10]. - **KS's Equity Value**: The equity value of KS, including the equity value of KSC and Kingsoft Office, is estimated at around 800 billion RMB [doc 11]. - **KS's Cash Position**: KS has a cash position of over 240 billion RMB [doc 11]. Recommendations - **KSC**: KSC is recommended for investment, with a target market capitalization of around 300 billion HKD [doc 7]. - **KS**: KS is recommended for investment, with a total valuation of 1300-1400 billion RMB under an optimistic scenario [doc 11]. - **Kingsoft Office**: Kingsoft Office is a core AI application investment target in A-share [doc 13].

Group 1 - Major technology stocks experienced a decline, with Tesla dropping nearly 5%, Nvidia falling over 2%, and Apple, Microsoft, Netflix, Google, and Amazon all decreasing by over 1% [1] - The three major U.S. stock indices closed lower, with the Dow Jones down 333.59 points (0.77%) at 42,992.21 points, the Nasdaq down 298.33 points (1.49%) at 19,722.03 points, and the S&P 500 down 66.75 points (1.11%) at 5,970.84 points [1] Group 2 - Most popular Chinese concept stocks also saw declines, with the Nasdaq Golden Dragon China Index falling by 1.54% [2] - Zeekr and Fangdd both dropped over 9%, while XPeng and NIO fell over 4%. JD.com and Futu Holdings decreased by over 3%, and Bilibili dropped over 2% [2] - Kingsoft Cloud experienced a significant increase, rising by 23.24% [2]

Core Viewpoint - The Hong Kong stock market has seen significant gains, with Kingsoft Cloud leading the way with a 37.80% increase, driven by increased demand for computing power due to Xiaomi's plans to integrate AI into its ecosystem [1] Group 1: Company Performance - Kingsoft Cloud recorded a leading gain of 37.80% among Hong Kong Stock Connect stocks [1] - Hongteng Precision and Yika followed with increases of 17.76% and 17.05%, respectively [1] - Other companies such as Changfei Optical Fiber, ZTE, Smoore International, Sensong International, Lenovo Holdings, and Jingtai Holdings also performed well, each with gains exceeding 10% [1] Group 2: Market Analysis - Market analysts believe that Xiaomi's strategy to deeply integrate AI will significantly increase the demand for computing power [1] - As a strategic partner of Xiaomi, Kingsoft Cloud is expected to benefit from this increased demand [1]

根据界面新闻消息，小米正在着手搭建自己的GPU万卡集群，将对AI大模型大力投入。 财联社12月27日电，截至发稿，金山云(03896.HK)涨41.68%、小米集团-W(01810.HK)涨5.95%、金山软 件(03888.HK)涨2.38%。 ...

Summary of Conference Call Company and Industry - The conference call pertains to **Kingsoft Cloud** and its performance in the **cloud computing** industry, particularly focusing on AI and traditional cloud services. Key Points and Arguments 1. **Financial Performance**: Kingsoft Cloud reported a significant improvement in its financial metrics, with adjusted EBITDA reaching nearly 10% in the latest quarter, indicating a positive trend post-profitability [2][4][11]. 2. **Revenue Composition**: AI-related revenue now constitutes 31% of the company's total revenue, showing substantial year-over-year growth. Traditional business segments, such as CDN, are experiencing a contraction, with CDN revenue dropping to approximately 16% of total revenue [2][5][6]. 3. **Strategic Shifts**: The company has undergone significant strategic changes over the past quarters, leading to a recovery in revenue and an increase in profit margins. The focus has shifted towards high-margin AI and industry cloud services [3][4][11]. 4. **Client Dependency**: Kingsoft Cloud has reduced its reliance on a single large client, with external clients now contributing about 10% of revenue, down from one-third previously. The company anticipates that revenue from Xiaomi and Kingsoft will grow to 30-40% in the next couple of years [9][13]. 5. **Investment in R&D**: The company is committed to maintaining a strong R&D presence, with plans to establish a second R&D center in Wuhan. This is aimed at supporting the growing demand for AI computing power [10][14]. 6. **AI Revenue Growth**: The company expects AI revenue to exceed 50% of public cloud revenue in the coming years, driven by the increasing demand from the Xiaomi ecosystem [16][17]. 7. **Cost Structure**: The primary costs associated with AI services are attributed to machine procurement, with IDC costs being lower due to strategic location choices. The company is also focused on maintaining a competitive edge in GPU procurement [33][34]. 8. **Future Outlook**: Kingsoft Cloud anticipates stable growth in industry cloud services, with a focus on profitable projects. The company aims to optimize its cost structure and improve profit margins across all business segments [37][39]. Other Important but Possibly Overlooked Content 1. **Capital Expenditure**: The company reported a capital expenditure of approximately 12 billion in Q3, with a total of over 40 billion year-over-year [28][26]. 2. **Market Positioning**: Kingsoft Cloud is positioned as a leading player in the AI cloud segment, with a competitive advantage over smaller firms due to its established client relationships and technological capabilities [24][25]. 3. **Profitability Trends**: The company is targeting a long-term profit margin in the range of 10-20%, aligning with industry standards for leading cloud service providers in China [39][40]. 4. **Ecosystem Collaboration**: The collaboration with Xiaomi is expected to yield stable revenue growth, particularly in the automotive sector, as the demand for AI applications in vehicles increases [7][8][20]. This summary encapsulates the essential insights from the conference call, highlighting the company's strategic direction, financial performance, and market positioning within the cloud computing industry.