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].
金山云(03896) - 2023 - 年度财报