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].
金山云(03896) - 2023 - 中期财报