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].

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 ...

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]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 7,047,461 thousand, a decrease of 13.8% compared to RMB 8,180,107 thousand in 2022[2] - Gross profit for the same period was RMB 850,169 thousand, representing a significant increase of 97.9% from RMB 429,538 thousand in 2022[2] - Net loss attributable to Kingsoft Cloud Holdings Limited was RMB 2,658,184 thousand, an increase of 18.1% compared to RMB 2,176,340 thousand in 2022[2] - Adjusted gross profit for 2023 was RMB 859,926 thousand, with an adjusted gross margin of 12.2%, up from 5.4% in 2022[5] - Adjusted net loss for 2023 was RMB 1,291,121 thousand, with an adjusted net loss margin of 18.3%, improved from 24.4% in 2022[6] - Adjusted EBITDA for 2023 was RMB (265,064) thousand, with an adjusted EBITDA margin of 3.8%, compared to (754,958) thousand and 9.2% in 2022[6] - The company reported a decrease in pre-tax loss of 18.7% from RMB (2,663,915) thousand in 2022 to RMB (2,165,688) thousand in 2023[2] - Operating loss was RMB 2,108.6 million (USD 297.0 million), an improvement from RMB 2,251.4 million in 2022[17] - Net loss was RMB 2,183.6 million (USD 307.6 million), compared to a net loss of RMB 2,688.4 million in 2022[17] - The company reported a total comprehensive loss attributable to shareholders of RMB (2,074,072) for the year ended December 31, 2023, compared to RMB (1,997,228) in the previous year, marking a 3.9% increase in losses[35] Revenue Breakdown - Total revenue for fiscal year 2023 reached RMB 7,047.5 million (USD 992.6 million), a decrease from RMB 8,180.1 million in 2022[14] - Public cloud service revenue was RMB 4,381.7 million (USD 617.2 million), while industry cloud service revenue was RMB 2,664.0 million (USD 375.2 million)[14] - Revenue from public cloud services was RMB 4,381,741 (USD 617,155) for the year ended December 31, 2023[48] Expenses and Costs - Research and development expenses for 2023 amounted to RMB 784.8 million, with a total of 1,243 R&D personnel as of December 31, 2023[11] - Capital expenditures totaled RMB 1,964.7 million (USD 276.7 million) in 2023, focusing on enhancing generative AI computing capabilities[10] - Sales and marketing expenses decreased to RMB 460.2 million (USD 64.8 million) from RMB 560.1 million in 2022[17] - The company’s total operating costs for the year were RMB 6,197,292 thousand, an increase from RMB 7,750,569 thousand in the previous year, reflecting a rise of approximately 12.5%[34] Assets and Liabilities - Cash and cash equivalents amounted to 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[19] - Total assets as of December 31, 2023, amounted to RMB 15,070,278, a decrease of 13.0% from RMB 17,316,231 in the previous year[36] - The total liabilities increased slightly to RMB 7,824,374 from RMB 7,732,732, reflecting a 1.2% rise[37] - The total equity attributable to shareholders decreased to RMB 6,890,152 from RMB 8,801,020, a decline of 21.6%[37] - Accounts payable as of December 31, 2023, totaled RMB 1,805,083, a decrease of approximately 21.6% from RMB 2,301,958 in 2022[58] Strategic Focus - The company plans to continue focusing on product development and market expansion strategies to improve financial performance in the upcoming periods[3] - The company aims to maintain strict control over costs and expenditures to improve operational efficiency and profitability[13] - The company has expanded its business scope into selected vertical industries, including internet, public services, healthcare, gaming, AI, and financial services[9] Governance and Compliance - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange during the reporting period[26] - The audit committee reviewed the unaudited annual results for the year ended December 31, 2023, ensuring compliance with accounting policies[29] - The company has adopted an insider trading policy to regulate all transactions by directors and employees, ensuring compliance with the standard code[27] Other Financial Metrics - The company did not recommend the distribution of a final dividend for the year ended December 31, 2023[31] - Basic and diluted loss per share for 2023 was RMB 0.61, down from RMB 0.73 in 2022, reflecting an improvement of about 16.4%[56] - The company did not declare any dividends for the years ended December 31, 2023, and 2022[57] - The company reported a net cash used in operating activities for the year ended December 31, 2023, was RMB (169,070), compared to RMB 188,974 in the previous year, indicating a significant shift in cash flow[38]

Revenue Performance - Total revenue for Q3 2023 was RMB 1,625.2 million (USD 222.8 million), a decrease of 17.5% compared to RMB 1,968.8 million in Q3 2022[4] - Public cloud service revenue was RMB 1,016.6 million (USD 139.3 million), down 24.5% year-over-year from RMB 1,346.0 million[4] - Industry cloud service revenue was RMB 608.5 million (USD 83.4 million), a slight decrease of 2.2% from RMB 622.0 million in Q3 2022[4] - Total revenue for the nine months ended September 30, 2023, was RMB 5,325,011 thousand, a decrease of 12% compared to RMB 6,049,094 thousand for the same period in 2022[15] - The company’s total income from public cloud services for the nine months ended September 30, 2023, was RMB 1,993,662 thousand, down from RMB 2,031,058 thousand for the same period in 2022[15] Profitability and Margins - Adjusted gross margin reached a historical high of 12.1%, up 5.8 percentage points from the same period last year[3] - Gross profit increased by 60.3% year-over-year to RMB 196.2 million (USD 26.9 million)[4] - Public cloud services gross profit reached RMB 48.1 million (USD 6.6 million), a significant improvement from a gross loss of RMB 22.1 million in the same period last year, with a gross margin of 4.7% compared to -1.6% year-over-year[6] - Industry cloud services gross profit was RMB 147.3 million (USD 20.2 million), up from RMB 143.8 million in the same period last year, with a gross margin increase from 23.1% to 24.2%[6] - The adjusted net loss margin for Q3 2023 was -22.1%, an improvement from -27.0% in Q3 2022[20] - The normalized adjusted EBITDA margin for Q3 2023 was -5.9%, compared to -10.3% in Q3 2022, indicating a 43.1% improvement[20] Operating Expenses and Losses - Total operating expenses amounted to RMB 1,001.1 million (USD 137.2 million), compared to RMB 569.7 million in the previous quarter and RMB 626.6 million in the same period last year[6] - Operating loss was RMB 804.8 million (USD 110.3 million), compared to an operating loss of RMB 363.1 million in the previous quarter and RMB 504.2 million in the same period last year[6] - Operating loss for the nine months ended September 30, 2023, was RMB 1,892,192 thousand, compared to RMB 2,149,306 thousand for the same period in 2022, indicating a reduction in losses[15] Cash Flow and Financial Position - Operating cash flow for the quarter was RMB 20.4 million, marking the second consecutive quarter of positive cash flow[3] - Cash flow from operating activities for Q3 2023 was RMB 20,372 thousand, down from RMB 100,929 thousand in Q3 2022[21] - Cash flow from investing activities for Q3 2023 was RMB 165,089 thousand, compared to RMB 323,754 thousand in Q3 2022, showing a decrease of 48.9%[21] - Cash flow used in financing activities for Q3 2023 was RMB (1,263,894) thousand, significantly higher than RMB (130,694) thousand in Q3 2022[21] - The net cash increase for Q3 2023 was RMB (1,078,433) thousand, contrasting with an increase of RMB 293,989 thousand in Q3 2022[21] - Cash and cash equivalents and short-term investments as of September 30, 2023, totaled RMB 2,612.1 million (USD 358.0 million)[8] - The ending cash and cash equivalents for Q3 2023 were RMB 2,731,628 thousand, down from RMB 3,206,354 thousand in Q3 2022[21] Net Loss and Adjusted Metrics - Net loss was RMB 789.7 million (USD 108.2 million), compared to a net loss of RMB 498.3 million in the previous quarter and RMB 801.4 million year-over-year[6] - Non-GAAP net loss narrowed to RMB 313.3 million (USD 42.9 million) from RMB 315.0 million in the previous quarter and RMB 530.7 million in the same period last year[7] - The net loss for Q3 2023 was RMB 498,272 thousand, a decrease from RMB 801,447 thousand in Q3 2022, representing a 37.9% improvement[20] - Adjusted net loss for Q3 2023 was RMB 314,960 thousand, compared to RMB 530,680 thousand in Q3 2022, reflecting a 40.7% reduction[20] - The adjusted EBITDA for Q3 2023 was a loss of RMB 61,395 thousand, an improvement from a loss of RMB 201,994 thousand in Q3 2022, indicating a 69.6% enhancement[20] Strategic Focus and Partnerships - The company continues to deepen strategic planning and cooperation with Xiaomi and Kingsoft to meet AI and cloud demands[3] - The company has a strong focus on cloud services, leveraging advanced cloud-native products and industry-specific solutions[12] - The company is committed to expanding its market presence and enhancing its cloud infrastructure capabilities[12]

Financial Performance - For the six months ended June 30, 2023, revenue decreased by 9.3% to RMB 3,699,803,000 compared to RMB 4,080,307,000 in the same period of 2022[8]. - Gross profit increased significantly by 176.1% to RMB 400,791,000, up from RMB 145,162,000 year-over-year[8]. - Loss before income tax improved by 19.7%, with a loss of RMB 1,100,722,000 compared to RMB 1,370,437,000 in the previous year[8]. - Net loss decreased by 18.9% to RMB 1,107,093,000 from RMB 1,365,284,000 year-over-year[8]. - The company reported a net loss attributable to Kingsoft Cloud Holdings Limited of RMB 1,106,333,000, a decrease of 18.4% from RMB 1,356,246,000 in the previous year[8]. - Total revenue reached RMB 3,699.8 million (USD 510.2 million), with public cloud service revenue at RMB 2,313.2 million (USD 319.0 million) and industry cloud service revenue at RMB 1,385.2 million (USD 191.0 million)[13]. - Adjusted EBITDA loss was RMB 191.9 million (USD 26.5 million), a 37.7% improvement from RMB 307.9 million in the same period last year, with an adjusted EBITDA margin of -5.2% compared to -7.5%[13]. - The total comprehensive loss attributable to shareholders for the six months ended June 30, 2023, was RMB 973,265,000, compared to RMB 897,537,000 for the same period in 2022, reflecting an increase of approximately 8.4%[90]. - The net loss for the first half of 2023 was RMB (1,107,093) thousand, compared to RMB (1,365,284) thousand in the same period last year, reflecting a reduction in losses[12]. Revenue Breakdown - Revenue from public cloud services decreased by 13.4% year-on-year to RMB 2,313.2 million (USD 319.0 million) from RMB 2,670.0 million, mainly due to the reduction of CDN services[20]. - Industry cloud services revenue recognized at a point in time was RMB 371,724,000 for the six months ended June 30, 2023, up from RMB 351,374,000 in the same period of 2022, indicating an increase of approximately 5.8%[126]. - Industry cloud services revenue recognized over time was RMB 1,013,428,000 for the six months ended June 30, 2023, compared to RMB 1,057,709,000 in the same period of 2022, showing a decrease of about 4.2%[126]. Operational Efficiency - The company aims to improve operational efficiency and reduce losses through strategic initiatives and cost management[10]. - The cost of sales decreased by 16.2% to RMB 3,299.0 million (USD 455.0 million) from RMB 3,935.1 million in the same period of 2022, reflecting enhanced cost control measures[21]. - Operating expenses totaled RMB 1,361.8 million (USD 187.8 million), an increase from RMB 1,230.0 million in the same period of 2022, driven by higher general and administrative expenses due to impairment losses[22]. - Operating loss improved to RMB 961.0 million (USD 132.5 million) from RMB 1,084.9 million in the same period of 2022[22]. Research and Development - Research and development expenses amounted to RMB 409.3 million (USD 56.4 million), with a total of 1,176 R&D personnel as of June 30, 2023[17]. - Research and development expenses were RMB 409.3 million (USD 56.4 million), a decrease from RMB 467.6 million in the same period of 2022, due to improved efficiency and personnel adjustments[22]. - The company emphasizes research and development as a key focus area[181]. Market Strategy - Kingsoft Cloud is exploring new product development and market expansion strategies to enhance revenue streams[10]. - The company has expanded its market presence by developing industry-specific solutions across various verticals, including video, public services, healthcare, gaming, and financial services[14]. - The company plans to continue its market expansion and product development strategies to enhance its competitive position in the cloud services sector[90]. Cash and Liquidity - As of June 30, 2023, the company's cash and cash equivalents amounted to RMB 3,708.7 million (USD 511.5 million), representing an increase of 8.5% from RMB 3,419.2 million as of December 31, 2022[24]. - The company plans to use cash generated from operations and financing activities to meet future working capital and capital expenditure needs[24]. - The cash flow from financing activities resulted in a net cash outflow of RMB (214,796) thousand for the six months ended June 30, 2023, compared to RMB (118,773) thousand in the previous year[100]. Shareholder Information - Major shareholders include Kingsoft Software with 1,423,246,584 shares (37.40%) and The Bank of New York Mellon with 1,326,206,020 shares (34.85%) as of June 30, 2023[37][38]. - Xiaomi Group holds 449,701,000 shares (11.82%) and the Canada Pension Plan Investment Board holds 306,114,735 shares (8.04%) as of June 30, 2023[37][38]. - The company has not proposed an interim dividend for the six months ending June 30, 2023[79]. Corporate Governance - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance accountability[69]. - The company has fully complied with all provisions of the corporate governance code as per the Listing Rules during the reporting period[70]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim consolidated financial statements for the six months ending June 30, 2023[77]. Accounting Policies - The company operates under the US GAAP accounting standards[181]. - The company has maintained its accounting policies consistent with those used in the audited financial statements for the year ended December 31, 2022[102]. - The company has adopted new accounting standards that did not have a significant impact on its interim financial statements[123]. Legal and Compliance - There were no significant litigations or arbitrations involving the company during the reporting period[71]. - The company has no ongoing legal or administrative proceedings that could have a material adverse effect on its business, financial condition, or operating results[160].

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） 內幕消息 截至二零二三年六月三十日止三個月的 未經審核財務業績 本公告乃根據香港聯合交易所有限公司證券上市規則第13.09條及證券及期貨條例 （第571章）第XIVA部刊發。 金山云控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司、 其子公司及併表聯屬實體（統稱「本集團」）根據美國證券交易委員會（「美國證交 會」）適用規則刊發的截至二零二三年六月三十日止三個月未經審核簡明綜合業績 （「第二季度業績」）。 第二季度業績乃根據美利堅合眾國公認會計準則（「美國公認會計準則」）編製，其 有別於國際財務報告準則。 本公告附件一為本公司於二零二三年八月二十二日（美國東部時間）就第二季度業 績刊發的新聞稿全文，其中部分內容可能構 ...

Financial Performance - Total revenue for the six months ended June 30, 2023, was RMB 3,699.8 million, a decrease of 9.3% compared to RMB 4,080.3 million in the same period of 2022[2]. - Gross profit for the same period was RMB 400.8 million, representing a significant increase of 176.1% from RMB 145.2 million year-over-year, with a gross margin of 10.8% compared to 3.6% in 2022[2][6]. - Adjusted EBITDA loss for the six months ended June 30, 2023, was RMB 191.9 million, a reduction of 37.7% from RMB 307.9 million in the prior year[6]. - The net loss attributable to Kingsoft Cloud Holdings Limited for the six months ended June 30, 2023, was RMB 1,356.2 million, down 18.4% from RMB 1,106.3 million in the same period of 2022[2]. - The adjusted net loss for the six months ended June 30, 2023, was RMB 727.4 million, compared to RMB 910.6 million in the same period of 2022[5]. - The company reported a net loss margin of -29.9% for the six months ended June 30, 2023, compared to -33.5% in the prior year[5]. - The adjusted EBITDA margin improved to -5.2% for the six months ended June 30, 2023, from -7.5% in the same period of 2022[5]. - Operating loss for the six months ended June 30, 2023, was RMB 1,361,773 thousand, compared to an operating loss of RMB 1,230,030 thousand for the same period in 2022[31]. - Operating loss was RMB 961.0 million (USD 132.5 million), an improvement from RMB 1,084.9 million in the same period of 2022, while net loss decreased to RMB 1,107.1 million (USD 152.7 million) from RMB 1,365.3 million[17]. Revenue Breakdown - Public cloud service revenue was RMB 2,313.2 million, while industry cloud service revenue was RMB 1,385.2 million for the reporting period[6]. - Public cloud services revenue was RMB 2,313.2 million, down from RMB 2,669.9 million year-over-year, representing a decline of 13.4%[12]. - Revenue from public cloud services decreased by 13.4% year-on-year to RMB 2,313.2 million (USD 319.0 million) from RMB 2,670.0 million in the same period of 2022, mainly due to the reduction of CDN services[15]. - Total revenue reached RMB 3,699.8 million (USD 510.2 million), a decrease of 9.3% compared to RMB 4,080.3 million in the same period of 2022, primarily due to the active reduction of services provided to CDN customers and the elimination of unprofitable customers[15]. Cost and Expenses - Research and development expenses for the first half of 2023 were RMB 409.3 million (approximately USD 56.4 million), compared to RMB 467.6 million in the same period of 2022, reflecting a decrease of 12.4%[10]. - Operating expenses totaled RMB 1,361.8 million (USD 187.8 million), an increase from RMB 1,230.0 million in the same period of 2022, with R&D expenses decreasing to RMB 409.3 million (USD 56.4 million) from RMB 467.6 million[17]. Cash and Liquidity - Cash and cash equivalents amounted to RMB 3,708.7 million (USD 511.5 million) as of June 30, 2023, representing an increase of 8.5% from RMB 3,419.2 million as of December 31, 2022[18]. - The company’s cash and cash equivalents at the end of the period were RMB 3,823,087, an increase of 37.6% from RMB 2,776,770[36]. - Net cash used in operating activities improved to RMB (206,157) from RMB (282,401), a reduction of 27%[36]. - The company reported a net cash inflow from investing activities of RMB 576,486, a significant turnaround from RMB (1,257,570) in the previous period[36]. Employee and R&D Development - The company has approximately 101,000 servers and achieved EB-level storage capacity as of June 30, 2023[9]. - The Wuhan R&D center has grown to about 400 employees, accounting for over one-third of the total R&D team, with 50% holding master's degrees[10]. - The company had 9,752 employees as of June 30, 2023, with most located in China and the remainder overseas[23]. - The company had a total of 9,752 employees, with 78.0% in solution development and services[24]. Corporate Governance and Compliance - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange during the reporting period[25]. - There were no significant litigations or arbitrations involving the company during the reporting period[26]. - The audit committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023[27]. - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2023[28]. Strategic Initiatives - The company emphasized a commitment to high-quality, sustainable development and customer-centric operations during the reporting period[6]. - The company aims to enhance profitability and maintain sustainable high-quality development in the second half of 2023[11]. - The company continues to focus on cost reduction and efficiency improvement to enhance overall profitability and long-term competitive advantage[9]. - The company launched a new version of its Galaxy Cloud, enhancing usability, compatibility, security, and intelligence for enterprise customers[9]. - The object storage product based on all-flash media improved read and write performance by approximately 100%, suitable for high-performance storage needs[9]. Financial Position - Total assets amounted to RMB 16,133,874, a decrease of 6.8% from RMB 17,316,231 on December 31, 2022[34]. - Total liabilities increased to RMB 7,845,106, up 1.5% from RMB 7,732,732[35]. - Shareholders' equity decreased to RMB 8,288,768 from RMB 9,583,499, reflecting a decline of 13.5%[35]. - The company’s accumulated losses increased to RMB (11,208,569) from RMB (10,102,236), indicating a worsening financial position[35]. - The company’s total equity attributable to shareholders decreased to RMB 7,932,983, down 10% from RMB 8,801,020[35].

Revenue Performance - Total revenue for Q1 2023 reached RMB 1,864.4 million (USD 271.5 million), a decrease of 14.2% compared to RMB 2,173.8 million in Q1 2022[5] - Public cloud service revenue was RMB 1,153.7 million (USD 168.0 million), down 16.4% from RMB 1,380.8 million in the same period last year[5] - Industry cloud service revenue amounted to RMB 710.0 million (USD 103.4 million), a decrease of 10.4% from RMB 792.5 million in Q1 2022[5] - The decline in revenue was primarily due to the proactive scaling down of CDN services and stricter selection of industry cloud projects[5] - The company expects total revenue for Q2 2023 to be between RMB 1.85 billion and RMB 2.0 billion, reflecting current market and operational conditions[11] Profitability and Margins - Gross profit reached RMB 194.2 million (USD 28.3 million), a substantial increase of 142.8% compared to RMB 80.0 million in Q1 2022[5] - Adjusted gross margin rose to a historical high of 10.4%, up from 3.7% in the same quarter last year[5] - The gross margin for public cloud services improved from -3.4% to 2.1%, while industry cloud services saw an increase from 16.1% to 23.8%[4] - Public cloud services gross profit improved significantly to RMB 24.8 million (USD 3.6 million) from a gross loss of RMB 47.2 million in the same period last year, with a gross margin of 2.1% compared to -3.4% year-over-year[7] - Industry cloud services gross profit increased to RMB 169.0 million (USD 24.6 million) from RMB 127.4 million year-over-year, with a gross margin rising from 16.1% to 23.8%[7] - Operating loss narrowed to RMB 597.9 million (USD 87.1 million) from RMB 662.4 million in the previous quarter and RMB 532.8 million year-over-year[7] - Net loss was RMB 608.8 million (USD 88.7 million), compared to RMB 521.7 million in the previous quarter and RMB 554.8 million year-over-year[7] - Non-GAAP net loss improved to RMB 412.5 million (USD 60.1 million) from RMB 552.7 million in the previous quarter and RMB 442.9 million year-over-year[8] - Non-GAAP EBITDA was RMB -130.5 million (USD -19.0 million), an improvement from RMB -245.1 million in the previous quarter and RMB -144.2 million year-over-year, with a margin of -7.0%[8] - The adjusted net loss margin for Q1 2023 was -22.1%, an improvement from -20.4% in Q1 2022[27] Operating Costs and Expenses - Operating costs decreased significantly by 20.2% to RMB 1,670.2 million (USD 243.2 million) from RMB 2,093.9 million in the previous year[5] - Total operating expenses were RMB 792.1 million (USD 115.3 million), down from RMB 824.3 million in the previous quarter and up from RMB 612.8 million year-over-year[7] - Research and development expenses decreased to RMB 215.4 million (USD 31.4 million) from RMB 255.5 million in the previous quarter and RMB 246.6 million year-over-year[7] - The company plans to continue implementing various measures to reduce expenses and aims for quarterly adjusted EBITDA breakeven[4] Cash and Assets - Cash and cash equivalents as of March 31, 2023, were RMB 4,461.6 million (USD 649.7 million), indicating strong and sustainable cash reserves[10] - Cash and cash equivalents increased to RMB 3,568,288 thousand as of March 31, 2023, up from RMB 3,419,166 thousand as of December 31, 2022, reflecting a growth of about 4.4%[18] - The company's accumulated losses increased to RMB (10,709,224) thousand as of March 31, 2023, compared to RMB (10,102,236) thousand as of December 31, 2022, representing an increase of about 6%[19] - The company's total equity decreased to RMB 8,956,153 thousand as of March 31, 2023, from RMB 9,583,499 thousand as of December 31, 2022, reflecting a decline of about 6.5%[19] - The total liabilities decreased to RMB 7,601,105 thousand as of March 31, 2023, down from RMB 7,732,732 thousand as of December 31, 2022, indicating a reduction of approximately 1.7%[19] - The net accounts receivable decreased to RMB 2,232,702 thousand as of March 31, 2023, from RMB 2,402,430 thousand as of December 31, 2022, indicating a reduction of about 7.1%[18] Financial Management - Cash used in operating activities for Q1 2023 was RMB (271,387) thousand (USD (39,517) thousand), compared to RMB (626,008) thousand in Q1 2022, indicating improved cash flow management[28] - The company reported a cash and cash equivalents balance of RMB 3,533,726 thousand (USD 514,550 thousand) at the end of Q1 2023, up from RMB 3,206,354 thousand at the end of Q4 2022[28]

Revenue and Profitability - Revenue for 2022 decreased to RMB 8,180.1 million from RMB 9,060.8 million in 2021, representing a decline of 9.7%[7] - Gross profit for 2022 increased to RMB 429.5 million from RMB 351.3 million in 2021, with gross margin improving to 5.3% from 3.9%[7] - Net loss for 2022 widened to RMB 2,688.4 million from RMB 1,591.8 million in 2021[7] - Adjusted gross profit (non-GAAP) for 2022 was RMB 445.2 million, with an adjusted gross margin of 5.4%, up from 4.1% in 2021[10] - Adjusted net loss (non-GAAP) for 2022 was RMB 2,658.2 million, compared to RMB 1,588.7 million in 2021[7] - Adjusted EBITDA (non-GAAP) for 2022 was not explicitly stated, but the company uses this metric to evaluate operational performance[11] - Net loss for 2022 was RMB 2,688,388 thousand (USD 389,779 thousand), compared to RMB 1,591,756 thousand in 2021, representing a significant increase in losses[13] - Adjusted EBITDA for 2022 was RMB -754,958 thousand (USD -109,458 thousand), compared to RMB -343,785 thousand in 2021, indicating a decline in profitability[13] - Total revenue for 2022 reached RMB 8,180.1 million (USD 1,186.0 million), with public cloud services contributing RMB 5,360.3 million (USD 777.2 million) and industry cloud services contributing RMB 2,817.0 million (USD 408.4 million)[17] - Gross profit for 2022 was RMB 429.5 million (USD 62.3 million), a 22.3% increase from RMB 351.3 million in 2021, with a gross margin of 5.3% compared to 3.9% in 2021[17] - Total revenue for 2022 was RMB 8,180.1 million (USD 1,186.0 million), a decrease of 9.7% compared to RMB 9,060.8 million in 2021, primarily due to the proactive reduction in the scale of public cloud service delivery and stricter selection of industry cloud service projects[28] - Public cloud service revenue in 2022 was RMB 5,360.3 million (USD 777.2 million), a decrease of 13.0% from RMB 6,159.1 million in 2021, mainly due to the proactive reduction in service delivery scale[28] - Industry cloud service revenue in 2022 was RMB 2,817.0 million (USD 408.4 million), a decrease of 2.8% from RMB 2,897.8 million in 2021, impacted by the negative effects of COVID-19[28] - Gross profit increased from RMB 351.3 million in 2021 to RMB 429.5 million (USD 62.3 million) in 2022, with gross margin rising from 3.9% to 5.3%[30] - Non-GAAP gross profit increased from RMB 368.8 million in 2021 to RMB 445.2 million (USD 64.5 million) in 2022, with non-GAAP gross margin rising from 4.1% to 5.4%[30] - Net loss increased from RMB 1,591.8 million in 2021 to RMB 2,688.4 million (USD 389.8 million) in 2022, primarily due to personnel optimization-related compensation, credit losses, and Hong Kong listing expenses[30] - Adjusted EBITDA (non-GAAP) was RMB -755.0 million (USD -109.5 million) in 2022, compared to RMB -343.8 million in 2021, with non-GAAP EBITDA margin at -9.2%[30] - Total revenue for 2022 was RMB 8,180,107 thousand (USD 1,186,004 thousand), a decrease from RMB 9,060,784 thousand in 2021[197] - Net loss for 2022 was RMB 2,688,388 thousand (USD 389,779 thousand), compared to a net loss of RMB 1,591,756 thousand in 2021[197] - Public cloud services revenue for 2022 was RMB 5,360,282 thousand (USD 777,168 thousand), down from RMB 6,159,085 thousand in 2021[197] - Industry cloud services revenue for 2022 was RMB 2,816,976 thousand (USD 408,423 thousand), slightly down from RMB 2,897,817 thousand in 2021[197] - Gross profit for 2022 was RMB 429,538 thousand (USD 62,277 thousand), an increase from RMB 351,288 thousand in 2021[197] - Basic and diluted net loss per share was RMB 0.73 (USD 0.11) in 2022, compared to RMB 0.46 in 2021[199] - Total operating expenses increased to RMB 2,680,952 thousand (USD 388,701 thousand) in 2022 from RMB 2,163,680 thousand in 2021[197] - Accumulated deficit increased to RMB 10,102,236 thousand (USD 1,464,687 thousand) in 2022 from RMB 7,451,029 thousand in 2021[196] Customer and Market Trends - The number of premium customers for public cloud services decreased from 222 in 2021 to 197 in 2022, while the average revenue per premium customer remained stable at RMB 26.7 million[15] - The number of premium customers for industry cloud services decreased from 382 in 2021 to 347 in 2022, with average revenue per premium customer dropping to RMB 7.9 million from RMB 10.7 million in 2021[15] - The company's total premium customer base decreased from 597 in 2021 to 537 in 2022, with average revenue per premium customer declining to RMB 14.9 million from RMB 17.0 million in 2021[15] - Revenue from the single largest customer accounted for 19.8% of total revenue, while the top five customers contributed 50.6% of total revenue for the year ended December 31, 2022[78] - Xiaomi was one of the top five customers for the year ended December 31, 2022[79] Cost and Expense Management - Operating costs in 2022 were RMB 7,750.6 million (USD 1,123.7 million), a decrease of 11.0% from RMB 8,709.5 million in 2021, with internet data center costs decreasing by 16.2% to RMB 4,275.3 million (USD 619.9 million)[29] - Depreciation and amortization costs in 2022 were RMB 990.7 million (USD 143.6 million), up from RMB 785.2 million in 2021, mainly due to capital expenditures on electronic equipment[29] - Fulfillment costs in 2022 were RMB 396.8 million (USD 57.5 million), a significant decrease of 78.6% from RMB 1,851.3 million in 2021, due to the negative impact of COVID-19 and strategic focus on selected high-quality projects[29] - Solution development and service costs in 2022 were RMB 1,873.9 million (USD 271.7 million), up from RMB 678.2 million in 2021, primarily due to the full-year consolidation of Camelot[29] - R&D expenses in 2022 were RMB 971.2 million, with 1,223 R&D personnel as of December 31, 2022[20] - Total liabilities decreased to RMB 7,732,732 thousand (USD 1,121,139 thousand) in 2022 from RMB 9,585,617 thousand in 2021[195] - Short-term bank loans decreased from RMB 1,348,166 thousand in 2021 to RMB 909,500 thousand in 2022, a decrease of 32.5%[194] - Total current liabilities decreased from RMB 7,515,880 thousand in 2021 to RMB 6,658,626 thousand in 2022, a decrease of 11.4%[194] - Accounts payable decreased from RMB 2,733,487 thousand in 2021 to RMB 2,113,674 thousand in 2022, a decrease of 22.7%[191] Strategic Initiatives and Expansion - The company expanded into the electric vehicle (EV) industry in 2022, providing cloud services to EV manufacturers to support their development and operations[18] - The company implemented cost-saving and efficiency-improving measures in 2022, focusing on sustainable high-quality development and optimizing resources to enhance profitability and long-term competitiveness[19] - The company is focusing on core product technologies such as cloud hosting, cloud-native, industry cloud base, enterprise storage, and big data cloud platforms, aiming to achieve top-tier user experience[20] - The company is strategically approaching the emerging field of large language models, leveraging its neutrality to partner with independent model development companies and strengthening collaboration with Xiaomi Group and Kingsoft Software Group[20] - The company acquired Camelot for a total consideration of approximately RMB 4.76 billion, consisting of RMB 760.9 million in cash and RMB 4 billion in shares[81] - The company granted 27,500,715 restricted share units to Camelot Group employees as part of the acquisition[81] - The company paid RMB 43,980,750 in cash to acquire 3.19% equity in Camelot from its employee incentive platforms[81] Financial Position and Liquidity - Cash and cash equivalents decreased by 18.9% from RMB 4,217.5 million as of December 31, 2021, to RMB 3,419.2 million as of December 31, 2022[32] - The company's debt-to-asset ratio decreased from 24.6% as of December 31, 2021, to 20.1% as of December 31, 2022[35] - The company acquired approximately 9.50% and 3.19% equity in Cloudera Technology in 2022[37] - Cash and cash equivalents decreased from RMB 4,217,528 thousand in 2021 to RMB 3,419,166 thousand in 2022, a decrease of 18.9%[192] - Accounts receivable (net of credit loss allowance) decreased from RMB 3,570,975 thousand in 2021 to RMB 2,402,430 thousand in 2022, a decrease of 32.7%[192] - Short-term investments decreased from RMB 2,491,056 thousand in 2021 to RMB 1,253,670 thousand in 2022, a decrease of 49.7%[192] - Total current assets decreased from RMB 12,412,816 thousand in 2021 to RMB 9,048,353 thousand in 2022, a decrease of 27.1%[192] - Property and equipment (net) decreased from RMB 2,364,103 thousand in 2021 to RMB 2,132,994 thousand in 2022, a decrease of 9.8%[192] - Goodwill remained relatively stable, decreasing slightly from RMB 4,625,115 thousand in 2021 to RMB 4,605,724 thousand in 2022, a decrease of 0.4%[192] - Total assets decreased from RMB 21,078,040 thousand in 2021 to RMB 17,316,231 thousand in 2022, a decrease of 17.8%[192] - Total equity decreased to RMB 9,583,499 thousand (USD 1,389,478 thousand) in 2022 from RMB 11,492,423 thousand in 2021[196] Corporate Governance and Leadership - The company's ADSs are listed on NASDAQ under the ticker "KC" and its shares are listed on the Hong Kong Stock Exchange under the ticker "3896"[41] - The company's board of directors consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[104] - The company has fully complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules[103] - The company's board of directors is responsible for leading and monitoring the company, overseeing the group's business, strategic decisions, and performance[109] - The company's senior management team is responsible for the daily management of the group's business, including general operations, business development, finance, marketing, and operations[109] - The company's independent non-executive directors bring a wide range of business and financial expertise, experience, and independent judgment to the board[106] - The company's chairman and CEO roles are separated, with Lei Jun serving as chairman and Zou Tao as acting CEO[107] - The company has adopted a code of conduct for directors' securities transactions that is no less stringent than the Model Code set out in Appendix 10 of the Listing Rules[103] - The company's board of directors is required to meet at least four times a year, approximately once every quarter[105] - The company's directors are subject to a three-year term, with each director required to retire by rotation at least once every three years[108] - The company has established written guidelines for employees who may have access to non-public price-sensitive information regarding securities transactions[103] - The Audit Committee is composed of three independent non-executive directors: Mr. Yu Mingduo, Mr. Wang Hang, and Ms. Qu Jingyuan, with Mr. Yu Mingduo serving as the chairman[112] - The Remuneration Committee consists of two independent non-executive directors, Ms. Qu Jingyuan and Mr. Yu Mingduo, and one non-executive director, Mr. Lei Jun, with Ms. Qu Jingyuan as the chairman[117] - The Nomination Committee includes one non-executive director, Mr. Lei Jun, and three independent non-executive directors: Ms. Qu Jingyuan, Mr. Yu Mingduo, and Mr. Wang Hang, with Mr. Lei Jun as the chairman[119] - The Corporate Governance Committee comprises two executive directors, Mr. Zou Tao and Mr. He Haijian, one non-executive director, Dr. Qiu Ruiheng, and one independent non-executive director, Ms. Qu Jingyuan, with Mr. Zou Tao as the chairman[121] - No meetings were held for the Audit Committee, Remuneration Committee, Nomination Committee, or Corporate Governance Committee during the relevant period (only two days)[112][117][119][121] - The Remuneration Committee reviewed and approved the compensation details of senior management, with 4 executives earning between RMB 4,000,001 and RMB 8,000,000 in 2022[118] - The Audit Committee is responsible for reviewing and approving financial statements, including quarterly earnings reports and annual reports[112] - The Remuneration Committee is tasked with evaluating and recommending compensation for non-executive directors and ensuring no excessive risk-taking is incentivized by compensation arrangements[115][116] - The Corporate Governance Committee oversees compliance with ESG responsibilities and monitors the company's performance in ESG-related matters[121] - The Nomination Committee evaluates the performance and effectiveness of the board of directors and reviews the qualifications of board candidates[119] - The company has adopted a Board Diversity Policy aiming to achieve and maintain diversity, including gender, age, cultural and educational background, industry experience, technical capabilities, professional qualifications, and skills[123] - As of December 31, 2022, the company employed 9,517 full-time employees, with a gender ratio of approximately 2:1 (6,297 males and 3,220 females)[123] - The Board of Directors consists of one female and six male members, meeting the gender diversity requirements of the Hong Kong Stock Exchange[123] - The company has established mechanisms to ensure the Board receives independent opinions, including evaluating the independence of non-executive directors and allowing directors to seek external professional advice[124] - All directors participated in continuous professional development during 2022, including training on the latest legal regulations and reading materials on directorial expertise[127] - The Board is responsible for assessing and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives and ensuring the establishment and maintenance of an effective risk management and internal control system[129] - The company established an Audit Committee to oversee the execution of risk management policies and ensure the effectiveness of internal control systems[130] - The company implemented a framework for handling and disclosing insider information in compliance with the Securities and Futures Ordinance[131] - The company's independent auditor received a total remuneration of RMB 30,329 thousand for audit and non-audit services in 2022[133] - The company ensures shareholder rights by presenting independent resolutions at general meetings, with voting results published on the company and HKEX websites[134] - The company did not hold any general meetings during the reporting period[135] - Shareholders holding at least 10% of the total voting rights can request a special general meeting[136] - The company adopted a shareholder communication policy to facilitate effective communication with shareholders and other stakeholders[138] - The company's 2023 Annual General Meeting is scheduled for June 2023[138] - The company adopted the second amended and restated articles of association effective from the listing date on December 29, 2022[139] - Lei Jun holds a controlled interest in 449,701,000 shares, representing approximately 11.82% of the company's issued share capital[141][142] - The Bank of New York Mellon Corporation holds a controlled interest in 1,586,516,025 shares (long position) and 1,586,437,950 shares (short position), representing approximately 41.69% of the company's issued share capital[144][145] - Kingsoft holds a beneficial interest in 1,423,246,584 shares, representing approximately 37.40% of the company's issued share capital[144] - Xiaomi Group holds a beneficial interest in 449,701,000 shares, representing approximately 11.82% of the company's issued share capital[144] - JPMorgan Chase & Co. holds a controlled interest in 249,310,245 shares (long position) and 247,595,575 shares (short position), representing approximately 6.55% and 6.50% of the company's issued share capital, respectively[144][145] - As of December 31, 2022, the total number of shares available for issuance under the