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]

Kingsoft Cloud Holdings Limited Sponsored ADR (KC) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years ...

BEIJING, March 08, 2024 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited (NASDAQ:KC) ("Kingsoft Cloud" or the "Company"), a leading independent cloud service provider in China, today announced that it will release its unaudited financial results for the fourth quarter and fiscal year 2023 ended December 31, 2023 before the open of U.S. markets on Wednesday, March 20, 2024. Kingsoft Cloud's management will host an earnings conference call on Wednesday March 20, 2024 at 8:15 am, U.S. Eastern Time (8:15 pm, ...

BEIJING, March 08, 2024 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX: 3896) (“Kingsoft Cloud” or the “Company”), a leading independent cloud service provider in China, today announced that it will release its unaudited financial results for the fourth quarter and fiscal year 2023 ended December 31, 2023 before the open of U.S. markets on Wednesday, March 20, 2024. Kingsoft Cloud’s management will host an earnings conference call on Wednesday March 20, 2024 at 8:15 am, U.S. Easter ...

BEIJING, Feb. 08, 2024 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited ("we," "Kingsoft Cloud" or the "Company") (NASDAQ:KC), a leading independent cloud service provider in China, today announced that each of the proposed resolutions submitted for shareholders' approval as set forth in the notice of extraordinary general meeting dated January 12, 2024 have been adopted at the meeting held in Beijing, China today. Safe Harbor Statement This announcement contains forward-looking statements. These stateme ...

BEIJING, Jan. 11, 2024 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited ("we," "Kingsoft Cloud" or the "Company") (NASDAQ:KC), a leading independent cloud service provider in China, today announced that it will hold an extraordinary general meeting of the Company's shareholders (the "EGM") at 10:00 a.m., Hong Kong time on February 8, 2024 at Chongxian Hall, 2nd Floor, Conference Building, Taishan Hotel, No. 8 Anning Beili, Xisanqi, Haidian District, Beijing, PRC for the purposes of considering and, if th ...

Kingsoft Cloud Holdings Limited (NASDAQ:KC) Q3 2023 Results Conference Call November 21, 2023 7:15 AM ET Company Participants Wayne Wong - IR Manager Tao Zou - Vice Chairman and CEO Haijian He - CFO Conference Call Participants Xiaodan Zhang - CICC Timothy Zhao - Goldman Sachs Katrina Chiu - Citi Operator Good day and thank you for standing by. Welcome to Kingsoft Cloud's Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, ...

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]

[Kingsoft Cloud Third Quarter 2023 Financial Results](index=1&type=section&id=Kingsoft%20Cloud%20Third%20Quarter%202023%20Financial%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted a successful AI strategy, improved profitability for the fifth consecutive quarter, and positive operating cash flow amid a strategic CDN scale-down - The company's AI strategy shows positive results with **rapid growth in AI business revenue** and a strong pipeline[2](index=2&type=chunk) - Kingsoft Cloud is strategically reducing its CDN business, with revenue from the largest CDN customer **decreasing to 12%** in Q3 2023 from 16% in the prior quarter[2](index=2&type=chunk) - **Adjusted gross margin reached a record high of 12.1%**, marking the fifth consecutive quarter of growth and a **5.8 percentage point increase YoY**[2](index=2&type=chunk) - The company achieved a **positive operating cash inflow of RMB 20.4 million**, its second consecutive quarter of positive operating cash flow[2](index=2&type=chunk) [Third Quarter 2023 Financial Highlights](index=2&type=section&id=Third%20Quarter%202023%20Financial%20Highlights) The company's revenue declined due to a CDN scale-down, but gross profit surged and gross margin expanded significantly, while the Non-GAAP net loss narrowed YoY Q3 2023 Key Financial Metrics (YoY) | Metric | Q3 2023 (RMB million) | Q3 2022 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | 1,625.2 | 1,968.8 | -17.5% | | Gross Profit | 196.2 | 122.4 | +60.3% | | Gross Margin | 12.1% | 6.2% | +5.9 p.p. | | Operating Loss | (804.8) | (504.2) | Increased | | Net Loss | (789.7) | (801.4) | Narrowed slightly | | Non-GAAP Net Loss | (313.3) | (530.7) | Narrowed 41.0% | [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total revenues declined 17.5% YoY, driven by a strategic scale-down in public cloud services, while enterprise cloud revenue saw a minor decrease Q3 2023 Revenue Breakdown (YoY) | Revenue Stream | Q3 2023 (RMB million) | Q3 2022 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Public Cloud Services | 1,016.6 | 1,346.0 | -24.5% | | Enterprise Cloud Services | 608.5 | 622.0 | -2.2% | | **Total Revenues** | **1,625.2** | **1,968.8** | **-17.5%** | - The overall revenue decline was primarily a result of the company's proactive decision to scale down CDN services and phase out loss-making clients[3](index=3&type=chunk) [Cost and Profitability Analysis](index=2&type=section&id=Cost%20and%20Profitability%20Analysis) Reduced cost of revenues, particularly IDC costs, drove a significant increase in gross profit and a notable expansion in gross margin across both segments - Cost of revenues fell 22.6% YoY, with Internet Data Center (IDC) costs **decreasing significantly by 31.6%** from RMB 1,078.3 million to RMB 737.7 million[4](index=4&type=chunk) Q3 2023 Gross Profit and Margin by Segment (YoY) | Segment | Gross Profit (RMB million) | Gross Margin (%) | | :--- | :--- | :--- | | **Public Cloud (Q3 2023)** | **48.1** | **4.7%** | | Public Cloud (Q3 2022) | (22.1) | -1.6% | | **Enterprise Cloud (Q3 2023)** | **147.3** | **24.2%** | | Enterprise Cloud (Q3 2022) | 143.8 | 23.1% | [Operating Expenses and Losses](index=3&type=section&id=Operating%20Expenses%20and%20Losses) Operating loss widened due to a significant one-time asset impairment charge, though core operating expenses decreased YoY from cost control measures - The company recorded an **impairment of long-lived assets of RMB 468.5 million**, mainly attributable to the public cloud asset group[9](index=9&type=chunk) Q3 2023 Operating Expenses (YoY) | Expense Category | Q3 2023 (RMB million) | Q3 2022 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Selling and marketing | 116.4 | 143.4 | -18.8% | | General and administrative | 215.7 | 235.1 | -8.3% | | Research and development | 200.4 | 248.1 | -19.2% | [Net Loss and EBITDA](index=3&type=section&id=Net%20Loss%20and%20EBITDA) Non-GAAP net loss and Normalized Non-GAAP EBITDA loss both narrowed significantly, indicating improved underlying profitability despite the reported GAAP net loss Q3 2023 Profitability Metrics (YoY) | Metric | Q3 2023 (RMB million) | Q3 2022 (RMB million) | | :--- | :--- | :--- | | Net Loss | (789.7) | (801.4) | | Non-GAAP Net Loss | (313.3) | (530.7) | | Normalized Non-GAAP EBITDA | (44.1) | (202.0) | - Basic and diluted net loss per share was **RMB 0.22**, the same as in the third quarter of 2022[11](index=11&type=chunk) - As of September 30, 2023, the company had cash, cash equivalents, and short-term investments totaling **RMB 2,612.1 million**[11](index=11&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) The unaudited statements detail the company's financial position, performance showing improved gross profit, and positive operating cash flow [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and liabilities compared to year-end 2022, with cash and equivalents at RMB 2.6 billion Key Balance Sheet Items | Account | Sep 30, 2023 (RMB thousands) | Dec 31, 2022 (RMB thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 2,612,058 | 3,419,166 | | Total current assets | 6,568,591 | 9,048,353 | | Total assets | 14,110,374 | 17,316,231 | | Total current liabilities | 5,610,196 | 6,658,626 | | Total liabilities | 6,621,315 | 7,732,732 | | Total equity | 7,489,059 | 9,583,499 | [Unaudited Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The income statement reflects improved gross profit, but a significant asset impairment led to a substantial operating and net loss for the quarter Q3 2023 Income Statement Highlights (RMB thousands) | Line Item | Three Months Ended Sep 30, 2023 | | :--- | :--- | | Total revenues | 1,625,208 | | Gross profit | 196,240 | | Total operating expenses | (1,001,075) | | Impairment of long-lived assets | (468,535) | | Operating loss | (804,835) | | Net loss | (789,718) | [Unaudited Condensed Consolidated Statement of Cash Flows](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The company generated positive cash from operations for the second consecutive quarter, though cash used in financing led to a net decrease in cash Q3 2023 Cash Flow Summary (RMB thousands) | Activity | Three Months Ended Sep 30, 2023 | | :--- | :--- | | Net cash generated from operating activities | 20,372 | | Net cash generated from investing activities | 165,089 | | Net cash used in financing activities | (1,263,894) | | **Net decrease in cash** | **(1,078,433)** | [Reconciliation of GAAP and Non-GAAP Results](index=9&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section reconciles GAAP to Non-GAAP results, highlighting key adjustments like asset impairment that show a narrower Non-GAAP net loss Q3 2023 Reconciliation of Net Loss to Non-GAAP Net Loss (RMB thousands) | Description | Amount | | :--- | :--- | | Net Loss (GAAP) | (789,718) | | Add: Share-based compensation | 28,102 | | Add: Foreign exchange loss (gain) | (20,200) | | Add: Impairment of long-lived assets | 468,535 | | **Adjusted Net Loss (Non-GAAP)** | **(313,281)** | Q3 2023 Reconciliation to Normalized Adjusted EBITDA (RMB thousands) | Description | Amount | | :--- | :--- | | Adjusted Net Loss (Non-GAAP) | (313,281) | | Adjustments (Interest, Tax, D&A) | 267,879 | | Adjusted EBITDA | (45,402) | | Add: Loss on disposal of property | 1,324 | | **Normalized Adjusted EBITDA** | **(44,078)** | [Supplementary Information](index=4&type=section&id=Supplementary%20Information) This section provides details on Non-GAAP measures, exchange rates, forward-looking statements, and conference call information - The company uses Non-GAAP measures such as Non-GAAP gross profit, Non-GAAP net loss, and Non-GAAP EBITDA to evaluate operating performance, excluding items like share-based compensation and impairment charges[15](index=15&type=chunk) - The RMB to US$ exchange rate used for convenience in this report is **RMB 7.2960 to US$ 1.00**, the rate on September 29, 2023[17](index=17&type=chunk) - The report includes a safe harbor statement, cautioning that forward-looking statements are subject to inherent risks and uncertainties[18](index=18&type=chunk)

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].