2025-11-19 13:17Financial Data and Key Metrics Changes - The company's revenue for Q3 2025 reached RMB 2.48 billion, with a year-over-year growth rate accelerating from 24% in the previous quarter to 31% this quarter [7][19] - Adjusted gross profit for the quarter was RMB 393 million, representing a year-over-year increase of 28% [9][24] - The adjusted operating profit turned from a loss to a profit, reaching RMB 15.36 million, with an adjusted operating profit margin of 0.6% [9][25] - Adjusted net profit recorded a historical positive profit of RMB 28.73 million for the first time [9] Business Line Data and Key Metrics Changes - Public cloud revenue increased significantly by 49% year-over-year, reaching RMB 1.75 billion [7][10] - Intelligent Computing Cloud business gross billings reached RMB 782 million, with a year-over-year growth of around 122% [7][19] - Revenue from the Xiaomi and Kingsoft ecosystem reached RMB 691 million, increasing by 84% year-over-year, accounting for 28% of total revenue [8][9] Market Data and Key Metrics Changes - The demand for artificial intelligence is driving rapid development in Intelligent Computing Cloud and technological innovation in basic public cloud services [8] - The company is focusing on expanding customer coverage and cross-selling between Intelligent Computing Cloud and Basic Cloud services [10][11] Company Strategy and Development Direction - The company aims to leverage the integration of generative artificial intelligence and cloud services to enhance its offerings [7][8] - The strategic focus includes building a solid foundation through the Xiaomi and Kingsoft ecosystem and investing in intelligent computing infrastructure [18] - The company is targeting advantageous verticals and geographical regions to build core competitiveness for future growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of AI business demand and the potential for higher margins as inference demand increases [35][36] - The company plans to continue investing in infrastructure and enhancing technology to meet the growing demands of AI applications [26] Other Important Information - The company successfully raised HKD 2.8 billion in risk equity financing, with allocations for AI infrastructure and operational needs [21] - Capital expenditures for the quarter were RMB 2,787.8 million, primarily for intelligent cloud infrastructure investment [26] Q&A Session Summary Question: Key drivers of AI revenue growth in Q3 and margin trends - Management indicated that AI revenue growth was driven by the recognition of previously delayed revenues and the transition from training to inference demand [33][34] - Future inference demand is expected to exhibit a higher margin profile compared to current training demand [35] Question: Revenue outlook for next year and industry application scenarios - Management expressed confidence in subsequent demand growth for AI business and highlighted the rapid growth of robotic companies and API services as key revenue drivers [41][43] Question: Pricing methodology and trends between AI training and inference - Management noted that pricing for inference and training is based on resource usage, with API token services expected to yield better margins [50][51]