Kingsoft Cloud Holdings Ltd (KC) 2025 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Kingsoft Cloud's second-quarter 2025 earnings conference call. (Operator Instructions)

大家好，感謝您的收聽。歡迎參加金山雲2025年第二季財報電話會議。 （操作員指示）

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Nicole Shan. Please go ahead.

請注意，今天的會議正在錄製中。現在，我想將會議交給今天的演講嘉賓Nicole Shan。請繼續。

Thank you, operator. Hello, everyone, and thank you for joining us today. Kingsoft Cloud's second quarter 2025 earnings release was distributed earlier today and is available on our IR website at ir.ksyun.com as well as on PR Newswire Services. On the call today from Kingsoft Cloud, we have our Vice Chairman and CEO, Mr. Tao Zou; the CFO, Yi Li.

謝謝接線生。大家好，感謝您今天的參與。金山雲2025年第二季財報已於今日早些時候發布，您可以在我們的投資者關係網站ir.ksyun.com以及美通社（PR Newswire Services）上查閱。今天金山雲的電話會議嘉賓包括我們的副董事長兼執行長鄒濤先生和財務長李毅先生。

Mr. Zou will review our business strategies, operations and other company highlights followed by Ms. Li, who will discuss the financial performance. We will be available to answer your questions during the Q&A session that follows. There will be consecutive interpretation of integrations for your convenience and the reference purpose only.

鄒先生將回顧我們的業務策略、營運情況及其他公司亮點，隨後李女士將討論財務表現。我們將在接下來的問答環節中解答您的疑問。會議將提供交替傳譯，以方便您參考。

In case of any discrepancy, management statement in the original language will be followed. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the US Private Security Litigation Reform Act of 1995.

如有任何差異，以原文管理階層聲明為準。在開始之前，我想提醒您，本次電話會議包含前瞻性陳述，其含義符合1934年《證券交易法》（修訂版）第21E條以及1995年《美國私人證券訴訟改革法》的定義。

These forward-looking statements are based upon management's current expectation, current market and operating conditions, and relate to events that involve unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements.

這些前瞻性陳述是基於管理層當前的預期、當前的市場和營運條件，涉及未知風險、不確定性和其他因素的事件，所有這些因素都難以預測，其中許多因素超出了公司的控制範圍，可能導致公司的實際結果、業績或成就與前瞻性陳述中的結果、業績或成就存在重大差異。

Further information regarding this and other risks and uncertainties of factors are included in the company's filings with the US SEC. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required under applicable law. Finally, please note that unless otherwise stated, all financial figures mentioned during this conference call are denominated in RMB.

有關此及其他風險和不確定因素的更多信息，請參閱公司提交給美國證券交易委員會的文件。除非適用法律另有規定，否則本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性陳述的義務。最後，請注意，除非另有說明，本次電話會議中提及的所有財務數據均以人民幣計價。

Now my pleasure to introduce our Vice Chairman and CEO, Mr. Zou. Please go ahead. Thank you.

現在，我很高興介紹我們的副董事長兼執行長鄒先生。請您發言。謝謝。

(spoken in foreign language) (interpreted) Hello, everyone. Thank you and welcome all for joining Kingsoft Cloud second quarter 2025 earnings call. I am Zou Tao, CEO of Kingsoft Cloud. During the past three years, the company firmly implemented high quality and sustainable development strategy, fully embraced AI opportunities and our business fundamentals have taken on a completely new look.

（外語）（口譯）大家好。感謝並歡迎大家參加金山雲2025年第二季財報電話會議。我是金山雲執行長鄒濤。過去三年，公司堅定實施高品質永續發展策略，全力擁抱人工智慧機遇，業務基本面煥然一新。

We have not only achieved the growth in both revenue and profitability, but also extensively upgraded our AI and past cloud service capabilities for the generative AI era. This quarter, our business sustained growth capability was once again verified. The high-speed growth of AI intelligent computing business has driven incremental demand for basic cloud services, further accelerating revenue growth.

我們不僅實現了營收和獲利的雙重成長，更面向生成式人工智慧時代，全面升級了AI及過往雲端服務能力。本季度，我們業務的持續成長能力再次得到驗證。 AI智慧運算業務的高速成長帶動了基礎雲端服務的增量需求，進一步加速了營收的成長。

First, our Q2 revenue reached RMB2.35 billion, representing a year over year growth of 24%, a significant acceleration from previous quarters, 11% year over year. Both public cloud and enterprise cloud achieved year over year growth, among which public cloud increased significantly by 32%, reaching RMB1.63 billion.

第一，我們第二季營收達到人民幣23.5億元，年增24%，較前幾季11%的年增率有顯著提升。公有雲和企業雲均實現年成長，其中公有雲大幅成長32%，達到人民幣16.3億元。

Second, our embracement of AI continues to unleash favorable momentum. This quarter, AI gross billing reached RMB728 million, representing a year over year increase of over 120% and a quarter over quarter growth of 39%, accounting for 45% of public cloud revenue.

第二，我們對人工智慧的擁抱持續釋放良好勢頭。本季，人工智慧總流水達7.28億元，年增超過120%，季增39%，佔公有雲收入的45%。

In other words, over the past two plus years, while successfully driving high-quality development in our basic cloud business, we have also built an intelligent computing cloud business of nearly equivalent scale. The rapid development of Gen AI itself and the demand for its implementation across diverse industry verticals have lifted the ceiling of cloud services market. We will continue to embrace AI, enhance our technical capabilities, refine our intelligent computing products, and be a leading player in the era of Gen AI.

換句話說，過去兩年多來，我們在基礎雲端業務成功實現高品質發展的同時，也建構了規模接近基礎雲端業務的智慧運算雲端業務。人工智慧本身的快速發展以及各行各業對人工智慧落地的需求，已經突破了雲端服務市場的天花板。我們將繼續擁抱人工智慧，提陞技術能力，精進智慧運算產品，成為人工智慧時代的領跑者。

Third, as the sole strategic cloud platform of the Xiaomi and Kingsoft Ecosystem, we firmly grasp the enormous demands of ecosystem clients and pursue symbiotic growth and mutual success with the ecosystem.

第三，作為小米和金山生態圈唯一的策略雲端平台，我們牢牢掌握生態圈客戶的龐大需求，與生態圈共生共贏。

This quarter, revenue from Xiaomi and Kingsoft of ecosystem reached the RMB629 million, up 70% year over year, with its contribution to total revenue further increased to 27%. In the first half of 2025, revenue from Xiaomi and Kingsoft Ecosystem reached RMB1.13 billion, accounting for 40% of the total annual cap of related party transactions in 2025.

本季，小米及金山生態收入達人民幣6.29億元，年增70%，佔總營收的貢獻進一步提升至27%。 2025年上半年，小米及金山生態收入達人民幣11.3億元，佔2025年相關交易年度上限的40%。

Benefiting from the continued prosperity of the Xiaomi and Kingsoft Ecosystem and ever-expanding business opportunities, we're fully confident in further growth of ecological business collaboration in the second half of this year.

受益於小米和金山生態的持續繁榮和不斷拓展的業務機會，我們對今年下半年生態業務合作的進一步發展充滿信心。

Now, let me walk you through the key business highlights for the second-quarter of 2025. In public cloud space, revenue reached RMB1.63 billion this quarter, representing a year over year increase of 32%. The development of intelligent computing cloud and basic cloud has been mutually reinforcing with cloud consumption growth from both ecosystems internal and external clients advancing in parallel.

現在，讓我為您回顧一下2025年第二季的主要業務亮點。在公有雲領域，本季營收達到人民幣16.3億元，年增32%。智慧運算雲和基礎雲的發展相互促進，內外兩個生態客戶的雲端消費成長同步推進。

In terms of intelligent computing cloud, the solid demand for training computing power services and the gradually growing demand for inference computing power services have laid a solid foundation for the sustained development of intelligent computing cloud.

在智慧型運算雲方面，訓練算力服務需求的穩固性以及推理算力服務需求的逐步成長，為智慧運算雲端的持續發展奠定了堅實的基礎。

On one hand, the implementation and application of AI across various industries have begun to emerge. Customers, such as large language model companies, internet, audio, video services, real-time communication, online travel agencies and gaming have added incremental demand for AI inference.

一方面，人工智慧在各行各業的落地應用開始湧現，大型語言模型公司、網路、影音、即時通訊、線上旅遊、遊戲等客戶對人工智慧推理的需求不斷增加。

On the other hand, the growth in data volume driven by AI has boosted the growth of basic cloud services, and growth in such high-quality basic cloud services has offset the revenue pressure caused by our proactive scaling down of low margin services.

另一方面，人工智慧驅動的資料量成長推動了基礎雲端服務的成長，而優質基礎雲端服務的成長抵消了我們主動縮減低利潤服務帶來的收入壓力。

In terms of ecological customers, we deepened our co-operation with Xiaomi, integrating the advantageous resources of both parties, providing long term stable and high-performance cloud continuing services for Xiaomi. We also ensured the smooth launch of [Sword Hero State Xero by Sitan games], a subsidiary of Kingsoft, by providing products and services such as database and cloud elastic compute.

生態客戶方面，深化與小米的合作，整合雙方優勢資源，為小米提供長期穩定、高效能的雲端持續服務，並透過提供資料庫、雲端彈性運算等產品與服務，保障金山旗下【劍俠情緣Xero】的順利上線。

In enterprise cloud space, revenue reached RMB724 million this quarter, representing a year over year increase of 10%. In terms of public services sector, we partnered with Kingsoft Office to take the lead in officially releasing the Kingsoft, the government AI all in one server, increasing investment in AI plus public services scenarios, and providing full stack AI capabilities, including intelligent computing services, platform services and large language model services.

企業雲端領域，本季營收達到人民幣7.24億元，年增10%。在公共服務領域，我們與金山辦公室合作，率先正式發布金山政務AI一體機，加大AI+公共服務場景的投入，提供包括智慧運算服務、平台服務、大語言模型服務在內的全端AI能力。

Through the strong cooperation between Kingsoft Cloud and Kingsoft Office, we have successfully integrated AI technology with practical applications in public services sectors. This provides scalable and replicable solutions for customers' digital transformation.

透過金山雲與金山辦公的強大聯合，我們成功將人工智慧技術與公共服務領域的實際應用相結合，為客戶的數位轉型提供了可擴展、可複製的解決方案。

In healthcare sector, drawing on our industry leading capabilities in top-level planning, comprehensive data governance, robust technology foundation and AI capability. We're continuously building the information capabilities for regional healthcare systems and hospitals in the field of digital health.

在醫療健康領域，憑藉著業界領先的頂層規劃能力、全面的資料治理能力、雄厚的技術基礎和人工智慧能力，持續建構區域醫療體系和醫院在數位健康領域的資訊化能力。

In this quarter, we won the bid for the Changchun Municipal Public Health Information Platform project, facilitating the interconnection and sharing of local health big data.

本季度，我們得標長春市公共衛生資訊平台項目，促進了地方健康大數據的互聯互通和共享。

In addition, we're also working on the construction of the data lake project of Zhujiang Hospital of Southern Medical University and the Cloud Native Hospital Information System of Zhong Nan Hospital of Wuhan University.

此外，我們也正在推動南方醫科大學珠江醫院資料湖計畫、武漢大學中南醫院雲原生醫院資訊系統建置。

In the field of enterprise services, we are committed to implementing AI in multi-industry scenarios and complex business models, truly improving enterprise operational efficiency and achieving process intelligence. This quarter, we took the lead in co-operating with a major state-owned bank to advance the credit report automation project.

在企業服務領域，我們致力於將人工智慧落地於多產業場景與複雜業務模型，真正提升企業營運效率，實現流程智慧化。本季，我們率先與某大型國營銀行合作，推動徵信自動化專案。

Building a benchmark project in the banking industry. We applied AI capabilities end-to-end in complex core business scenarios, enabling intelligence throughout the entire process, including data collection, analysis, decision making and report writing, which has significantly improved the work efficiency of bank account managers.

打造銀行業標竿項目。我們將人工智慧能力端到端應用於複雜的核心業務場景，實現資料收集、分析、決策、報告產生等全流程智慧化，大幅提升銀行客戶經理的工作效率。

In terms of product and technology, we uphold the principle of building success based on technology and innovation, focusing on delivering best in class customer experiences across our core product offerings. We set up basic cloud and intelligent computing cloud R&D teams separately but collaboratively to improve the AI path capabilities on top of our robust public cloud infrastructure.

在產品和技術方面，我們秉持技術創新致勝的理念，專注於在核心產品上提供最佳的客戶體驗。我們分別成立了基礎雲端和智慧運算雲端研發團隊，並在強大的公有雲基礎架構上協同推進AI路徑能力的提升。

This quarter, we continue to optimize our AI switch. Using cloud container services as the foundation, we provide out of the box cloud native components such as heterogeneous resource management, AI workload scattering, intelligence operation and maintenance and resource monitoring, offering full life cycle support for large language model scenarios.

本季度，我們持續優化AI交換機，以雲端容器服務為基礎，提供異質資源管理、AI負載分散、智慧維運、資源監控等開箱即用的雲端原生元件，為大語言模型場景提供全生命週期支援。

We continue to optimize the capabilities of the staff load training inference integration platform, providing data sets, stimulation service capabilities required by the AI industry, as well as full life cycle management of data processing tasks.

我們持續優化人員負荷訓練推理一體化平台能力，提供人工智慧產業所需的資料集、模擬服務能力，以及資料處理任務的全生命週期管理。

Our intelligent computing cloud technologies help customers improve model training performance and save unit costs through optimized resource management, data governance, network communication and protection.

我們的智慧運算雲端技術透過優化資源管理、資料治理、網路通訊和保護，幫助客戶提高模型訓練效能並節省單位成本。

In addition, we released a new version of Kingsoft Cloud Galaxy Stack, supporting multiple mainstream processor platforms and domestic operating systems and improving its compatibility for private deployment scenarios.

此外，我們也發表了新版本的金山雲銀河棧，支援多種主流處理器平台和國產作業系統，並提升了對私有部署場景的兼容性。

Overall, AI is injecting new momentum into cloud computing, while cloud computing, in turn, is essential to support rapid model training and adoption. We continue to build and upgrade our intelligent computing cloud resources, and at the same time, leverage our expertise to enhance AI implementation into key sectors like public services, financial services, healthcare and other fields.

總體而言，人工智慧正在為雲端運算注入新的動力，而雲端運算對於支援快速的模型訓練和應用至關重要。我們持續建構和升級智慧運算雲端資源，同時利用我們的專業知識，推動人工智慧在公共服務、金融服務、醫療健康等關鍵領域的落地。

AI adoption is accelerating in various sectors, and its substantial ability to improve productivity, enhance user experience, and generate additional revenue stream has been verified. Looking ahead, we firmly believe the market opportunities brought by AI revolution has just begun.

人工智慧正在各行各業加速落地，其在提升生產力、增強用戶體驗和創造額外收入方面的巨大潛力已得到驗證。展望未來，我們堅信人工智慧革命帶來的市場機會才剛開始。

We will leverage on the comprehensive capabilities we have accumulated over the past few years by embracing AI continue to deepen our commitment to the Xiaomi and Kingsoft Ecosystem and high-quality external customers and focus on polishing our core products and solution capabilities to create long-term value for customers, shareholders, employees, and other stakeholders.

我們將憑藉過去幾年擁抱人工智慧所累積的綜合能力，持續深化對小米、金山生態和優質外部客戶的承諾，專注於打磨核心產品和解決方案能力，為客戶、股東、員工和其他利害關係人創造長期價值。

In addition, this quarter, I would like to extend a warm welcome to the company's new CFO, Ms. Li Yi. I will now pass the call to Li Yi to go over our financials for the second quarter of 2025. Thank you.

此外，本季度，我熱烈歡迎公司新任財務長李毅女士。現在，我會把電話轉給李毅女士，請她介紹我們2025年第二季的財務狀況。謝謝。

Thank you all for joining the call today. It's my pleasure to join Kingsoft Cloud. I'm looking forward to work collaboratively with the team to navigate the challenges, capitalize on opportunities, and do my best to contribute in execution of high-quality and sustainable development strategy. Thanks for the trust of the Board, company, and the stakeholders.

感謝各位今天參加電話會議。我很榮幸能加入金山雲。我期待與團隊攜手共進，共克時艱，把握機遇，為公司高品質、永續發展策略的實施貢獻力量。感謝董事會、公司及各位股東的信任。

Now I will walk you through our financial results for the second-quarter of 2025. This quarter, our AI strategy continues to be successful, driving business discussion across all products. Total revenues for this quarter will be [RMB2,349.2 million] reflecting a 24.2% year on year increase.

現在，我將向大家介紹我們2025年第二季的財務表現。本季度，我們的AI策略持續取得成功，推動了所有產品的業務討論。本季總營收為[23.492億元]，年增24.2%。

Of these revenues from public cloud services were RMB1,625.3 million, up 31.7% from RMB1,234.5 million in the same quarter last year. This growth was primarily fueled by a surge in AI related business with gross billing hitting over 120% year over year increase to RMB728.7 million.

其中，公有雲服務收入為人民幣16.253億元，較去年同期的人民幣12.345億元成長31.7%。這一成長主要得益於人工智慧相關業務的強勁成長，總營收年增超過120%，達到人民幣7.287億元。

Revenues for enterprise cloud services reached the RMB723.9 million, up 10.1% from RMB657.2 million in the same quarter last year, primarily driven by high demand for IT delivery services and steady progress on our external enterprise project delivery.

企業雲端服務收入達到人民幣7.239億元，較去年同期的人民幣6.572億元成長10.1%，主要得益於IT交付服務需求旺盛以及外部企業專案交付的穩步進展。

Protocols of renews was RMB2,010.4 million, up 27.8% year over year, which was mainly due to our investment in infrastructure to support AI business growth. IDC costs increased by 10.3% year over year for RMB728.2 million to RMB803.1 million this quarter, which was mainly due to our increased purchase catering to our new AI clusters demand.

續約協議成本為人民幣20.104億元，年增27.8%，主要由於我們為支持人工智慧業務成長而對基礎設施的投入。本季IDC成本為人民幣8.031億元，年增10.3%，至人民幣7.282億元，主要由於我們為滿足新的人工智慧集群需求而增加採購。

Depreciation and amortization costs increased from RMB265.9 million in the same period last year to RMB552 million this quarter, mainly due to depreciation of newly acquired high performance servers to expand our AI business as well as the regular CPU service to support the computing and storage demands followed by AI customers as the data set (inaudible)

折舊和攤銷成本從去年同期的 2.659 億元增加到本季度的 5.52 億元，主要是由於新收購的高效能伺服器的折舊，以擴大我們的人工智慧業務，以及常規 CPU 服務，以支援人工智慧客戶對資料集（聽不清楚）的運算和儲存需求

Solution development and service costs rose by 14.8% year-over-year from RMB491.1 million to RMB563.7 million, driven by expansion in solution architecture and delivery personnel to revenue growth, fulfillment cost and other costs for RMB25.8 million and RMB65.8 million respectively.

解決方案開發和服務成本年增 14.8%，從人民幣 4.911 億元增至人民幣 5.637 億元，主要由於解決方案架構和交付人員的擴張導致收入增長、履行成本和其他成本分別為人民幣 2580 萬元和人民幣 6580 萬元。

Our adjusted growth profit for this quarter was at RMB350.6 million, increased by 8.4% year over year and 7% quarter over quarter. It was mainly due to the expansion of our revenue scale and the large contribution from AI business.

本季經調整成長利潤為人民幣3.506億元，年增8.4%，季增7%，主要得益於營收規模的擴大以及人工智慧業務的大幅貢獻。

Adjusted growth margin was 14.9% in this quarter, combined with 70% in the second quarter of 2024 and 16.6% last quarter. Our adjusted growth margin has been negatively impacted by the higher cost of service along with the expansion of our AI business, and upfront cost incurred for certain customers for future revenue activity as well as the price pressure of certain large-scale clusters.

本季調整後成長率為14.9%，2024年第二季為70%，上季為16.6%。我們的調整後成長率受到以下因素的負面影響：服務成本的上升以及我們AI業務的擴張；部分客戶為未來收入活動產生的前期成本；以及部分大規模集群的價格壓力。

On the expense side, it's crucial to share compensation costs are totaled adjust the operating expenses for [RMB506.7 million] increased by 1% year over year and 31.2% quarter over quarter of which are adjusted (technical difficulty) for RMB183.1 million decreased by 8.5% from the same quarter last year.

費用方面，關鍵股權激勵費用合計調整後營業費用為[5.067億元人民幣]，年增1%，環比增長31.2%，其中調整後(技術難度)營業費用為1.831億元人民幣，較去年同期下降8.5%。

The decrease was mainly due to the decrease of personal risk resulting by our strategic adjustment for research team. Adjusted selling and marketing expenses for [RMB109.5 million] decreased by 6.8% year over year.

下降主要由於我們對研究團隊進行策略調整，導致個人風險降低。調整後的銷售及市場推廣費用為[人民幣1.095億元]，年減6.8%。

Adjusted general and administration expenses was RMB2,068.1 million increased by 12.8% year over year due to the increase of loss resulting from prepayment (inaudible) supply related to the procurement of certain services.

調整後一般及行政開支為 20.681 億元，較去年同期增加 12.8%，原因是採購某些服務相關的預付款（聽不清楚）供應造成的損失增加。

Our adjusted operating loss was RMB166.4 million, narrowed by 11.7% from RMB188.5 million in the same period last year. The improvement was mainly due to the share-based compensation adjustment. However, the adjusted operating loss increased compared with RMB55.8 million from last quarter, it was mainly due to the increase of credit loss caused by the pre-payment made to certain server providers.

調整後營運虧損為人民幣1.664億元，較去年同期的人民幣1.885億元收窄11.7%。這項改善主要得益於股權激勵計畫的調整。然而，調整後經營虧損較上季的人民幣5,580萬元有所增加，主要由於預付給部分伺服器供應商的款項導致的信用損失增加。

Our non-GAAP EBITDA profit was RMB406 million, increased by [507.1%] from RMB60.6 million in the same cost last year. Our non-GAAP EBITDA margin achieved 17.3% compared with 3.2% in the same quarter of last year. It was mainly due to our strong commitment to AI cloud computing development, strategic adjustment of business structures, and our third strict control over cost and expenses.

我們的非公認會計準則EBITDA利潤為人民幣4.06億元，較去年同期的人民幣6,060萬元成長507.1%。我們的非公認會計準則EBITDA利潤率達17.3%，而去年同期為3.2%。這主要得益於我們對AI雲端運算發展的堅定投入、業務結構的策略性調整以及對成本和費用的嚴格控制。

As of June 30, 2025, our cash and cash equivalent total RMB5,464.1 million, provided a strong liquid position to support operations and AI investment. The increase was mainly due to our public equity offering and private placement with Kingsoft Corporation as well as the pre-payment we received from strategic customers, which will be used to support a further class construction.

截至2025年6月30日，我們的現金及現金等價物總額為人民幣54.641億元，為支援公司營運和人工智慧投資提供了強勁的流動性。現金及現金等價物的成長主要源自於我們與金山軟體的公開發行股票和定向增發，以及我們收到的策略客戶預付款，這些款項將用於支持進一步的課程建設。

This quarter, our capital expenditures, including those financed by third party reached [RMB1,135 million] and right of use assets obtained in exchange for finance leased liability was RMB1,665.8 million.

本季度，我們的資本支出（包括第三方融資的支出）達到[人民幣11.35億元]，以融資租賃負債換取的使用權資產為人民幣16.658億元。

Looking ahead, AI technology has created a wealth of opportunities for cloud computing, not only the computing demands brought by modern training and influencing, we also have enterprise to adopt AI capabilities in today's complex business scenario.

展望未來，AI技術為雲端運算創造了豐富的機遇，不僅有現代訓練和影響帶來的運算需求，還有企業在當今複雜的業務場景中採用AI能力。

Our company, as the enabler of AI, provide cutting edge technology and computer resources to all kinds of customers, how to them to leverage sophisticated AI models and platforms without the need for extensive in-house infrastructure and large amounts of capital expenditures, significantly lower the (inaudible) entry and accelerating technological breaks across various sectors. Thank you all.

作為人工智慧的賦能者，我們公司為各類客戶提供尖端技術和運算資源，幫助他們在無需大量內部基礎設施和資本支出的情況下利用複雜的人工智慧模型和平台，顯著降低（聽不清楚）門檻，並加速各行各業的技術突破。謝謝大家。

Thank you for your attention. We are now happy to take your questions. Please ask your question in both Mandarin, Chinese, and English if possible. Operator, please go ahead. Thank you.

感謝您的關注。現在我們很樂意回答您的問題。請盡可能使用國語、中文和英文提問。接線員，請繼續。謝謝。

(Operator Instructions) Wenting Yu, CLSA.

（操作員指示） 里昂證券的 Wenting Yu。

(spoken in foreign language) I'll translate the question. So the first question is could management share the outlook and guidance on the revenue outlook for the second half of this year, and also the first half of next year, and how's Kingsoft investment pace in AI and autonomous driving infrastructure.

（外語）我來翻譯一下這個問題。第一個問題是，管理階層能否分享今年下半年以及明年上半年的收入前景和指引，以及金山在人工智慧和自動駕駛基礎設施方面的投資進度如何。

Additionally, what are the AI capacities and what trends can industries like AI six tigers and the others, do we observe large model vendors, model installation and reduce demand for computing consumption, and which other industries show strong AI infrastructure demand.

此外，人工智慧的能力如何？像人工智慧六虎等產業能呈現哪些趨勢？我們是否觀察到大型模型供應商、模型安裝和計算消耗需求的減少？還有哪些產業表現出強勁的人工智慧基礎設施需求？

And the second question is regarding the gross margin. This year KC has adopted more leasing of computer resources, and this had already impacted gross margin in the second quarter. And looking ahead, do we expect gross margin to continue to decline in the coming quarters as we use more leasing? What is the current proportion of this capacity in the overall computer resources pool and what is our target or preferred ratio? Thank you.

第二個問題是關於毛利率的。今年KC更多地採用了租賃的電腦資源，這已經影響了第二季的毛利率。展望未來，隨著我們更多地採用租賃方式，我們預計未來幾季的毛利率會繼續下降嗎？目前租賃容量在整個電腦資源池中佔比是多少？我們的目標或期望比例是多少？謝謝。

(spoken in foreign language) (interpreted) So allow me to translate briefly for Mr. Zao's answer to the first question. So, generally speaking, if you're asking about the expectations for the second half growth, I would say that the second half revenue growth, we would expect that to be stronger and better than the first half. That's the general holistic revenue topline situation that I would like to share with you.

（外語）（口譯）請容許我簡單翻譯一下趙先生對第一個問題的回答。總的來說，如果您問的是下半年成長的預期，我認為下半年的營收成長，我們預計會比上半年更強勁、更好。以上就是我想與大家分享的整體收入狀況。

And secondly, since you ask about that Xiaomi, what I can say is that we are in the process of delivering even larger cluster for Xiaomi's computing power demand. Without further details about the Xiaomi confidentiality concerns.

其次，既然你問到小米，我可以說的是，我們正在為小米的算力需求提供更大的集群。由於小米的保密問題，我不想透露更多細節。

Thirdly, since you ask about the trend, especially in terms of the training versus reference, I would say that after the debut of DeepSeek, the different players in the market started to exhibit different patterns in terms of investment. Some of the players continued to invest heavily in the training of models and that will include the Xiaomi as well, right?

第三，既然你問到趨勢，尤其是在訓練與參考方面，我想說，在DeepSeek推出後，市場上不同的參與者開始在投資方面表現出不同的模式。有些參與者繼續在模型訓練方面投入巨資，其中也包括小米，對嗎？

But some other players actually have to some extent decrease some of the investment in computing power demand. However, we have also been seeing some of the other large enterprises since last year continue to have even stronger inference computing power demand for inference.

但其他一些參與者實際上在一定程度上減少了對運算能力需求的投資。然而，我們也看到，自去年以來，其他一些大型企業對推理運算能力的需求持續增強。

So I guess, generally speaking, it's hard to comment on each player, each customer that we engage with due to customer confidentiality reasons, but I would say that overall speaking, the market demand for AI continues to be very strong.

所以我想，一般來說，由於客戶保密的原因，我們很難對每個參與者、每個我們接觸的客戶進行評論，但我想說，總體而言，市場對人工智慧的需求仍然非常強勁。

So in relation to the question regarding growth profit margin and future trend, I think this is a very good question. I would like to put that into the context of our growth model since last year. If you recall since last year, our old model was purely based on self-procurement, which comes with a high CapEx level and also comes with a high gearing ratio.

關於利潤率成長和未來趨勢的問題，我認為這是一個非常好的問題。我想結合我們自去年以來的成長模式來探討這個問題。如果你還記得的話，我們自去年以來的舊模式完全基於自營採購，這會導致較高的資本支出和負債比率。

We've been asked a lot of questions by the investor community, highlighting to us the potential risk in relation to that model. Since the second half of 2024, given that consideration, we have adjusted and pivoted to some of the new models, which we would call the resource pool model or the profit-sharing model, where CapEx level would be relatively lower and also, we would benefit from lower (inaudible) ratio.

投資者群體向我們提出了很多問題，強調了該模式的潛在風險。自2024年下半年起，考慮到這一點，我們進行了調整，轉向了一些新模式，我們稱之為資源池模式或利潤分享模式。這些模式的資本支出水準相對較低，而且較低的（聽不清楚）比率也能讓我們受益。

So, overall speaking, because of that shift of that procurement model, although there's a slight decrease of keeping margin. However, I would say, we generally achieved the strategic choice that we made for that changing of procurement model and therefore, I think it's actually a quite a good success. It's a successful result.

所以，總體而言，由於採購模式的轉變，雖然利潤率略有下降，但我想說，我們總體上實現了採購模式轉變的戰略選擇，因此，我認為這實際上是一個相當不錯的成功。這是一個成功的結果。

And since you also asked about the ratio between the self-owned assets versus the profit sharing model, I would say that we haven't disclosed the particular number in that regard. However, so far, I can tell you that the self-owned assets still command the majority of those assets on our balance sheet.

既然您也問到自有資產與利潤分享模式的比例，我想說我們還沒有揭露這方面的具體數字。不過，到目前為止，我可以告訴您，自有資產仍然佔據我們資產負債表上資產的絕大部分。

In the future, I would say that in addition to the two models that we already have, we're already exploring a new model, which we have applied in one of the key customers, which I would call the agent model which essentially means that we would do on our customers' behalf with our help.

未來，我想說，除了我們現有的兩種模式之外，我們還在探索一種新的模式，我們已經將它應用於一個關鍵客戶，我稱之為代理模式，本質上意味著我們會在我們的幫助下代表客戶去做。

We would do the procurement, we would do the construction, and we would do the operation on behalf of that customer. So putting this together, we're actually having three models and the particular adoption of any one of these models will purely depend on the demand of those particular customers and the overall balance that we would like to achieve in terms of hearing ratio and CapEx and indefinite level.

我們會負責採購、施工，並代表客戶進行營運。綜合起來，我們實際上有三種模式，具體採用哪一種模式，完全取決於特定客戶的需求，以及我們希望在預算比率、資本支出和不確定水平方面實現的整體平衡。

So I would say that in general as we continue to run our different models and their com combinations in the next few quarters, we'll have a clearer picture as to where the GP margin was stabilize at. But as far as I can see from this point in time, I would say that GP margin level relatively will stabilize at where we are right now today. Thank you.

所以我想說，總的來說，隨著我們在接下來的幾個季度繼續運行不同的模型及其組合，我們將更清楚地了解毛利率穩定在什麼水平。但就我目前所見，我認為毛利率水準將相對穩定在目前的水準。謝謝。

Xiaodan Zhang, CICC.

張曉丹，中金公司。

(spoken in foreign language) So thanks management for taking my questions and my first question is regarding our capital expenditure plans. So could management update on your capital expenditure plan for this year and what is the expectation for AI computing power that will be ready to use at the year end.

（外語）感謝管理層回答我的問題。我的第一個問題是關於我們的資本支出計劃。管理階層能否更新今年的資本支出計畫？以及對年底投入使用的AI算力的預期是多少？

And secondly, the year over year revenue growth of industry cloud has reaccelerated from the last quarter. So could you please share some color on the demand and also your delivery pace of the industry cloud clients. Thank you.

其次，產業雲的年收入成長從上個季度開始再次加速。您能否分享一下產業雲端客戶的需求狀況以及交付速度？謝謝。

For this year's CapEx expenditure, including sales procurement and lease purchase model. As we mentioned in the last quarter, for the total year, it's around RMB10 billion. For the first half of the year, actually, we have spent around RMB5 billion. As Zou Tao mentioned, now we have three models.

今年的資本支出包括銷售採購和租賃購買模式。正如我們上季度提到的，全年約為100億元。實際上，上半年我們的支出約為50億元。正如鄒濤所提到的，我們現在有三種模式。

So we don't -- because we have quite a strong cash position as of June 31, so that is why at this time, we will adjust our procurement process and models according to the customers' demand. So we still think the whole year the capital expenditure is around the RMB10 billion.

所以我們不會－因為截至6月31日，我們的現金狀況相當強勁，所以目前我們會根據客戶需求調整採購流程和模式。因此，我們仍然認為全年資本支出將在100億元左右。

(spoken in foreign language) (interpreted) So allow me to quickly translate. So first of all, I would say that what you observed is correct that the trend for enterprise cloud revenue in Q2 to grow faster than before. Now the first reason I would say is the advent of DeepSeek.

（外語）（口譯）請容許我快速翻譯一下。首先，我想說，你的觀察是正確的，第二季企業雲端收入的成長趨勢比以往更快。我想說的第一個原因是DeepSeek的出現。

To context, the event of DeepSeek has a very good and very deep impact in terms of the relatively more traditional industries in China. It's like a customer education process. Where we're seeing a lot of strong demand coming from the public services, from healthcare, from education, from financial services, et cetera, etcetera.

具體來說，DeepSeek 的推出對中國相對傳統的產業產生了非常積極和深遠的影響。這就像一個客戶教育的過程。我們看到來自公共服務、醫療保健、教育、金融服務等領域的強勁需求。

However, we currently still have this pinpoint, which is we're still not at the position where we're able to provide our customers with a very easy to use application. So the final landing or application of the software or AI solution is still not there yet.

然而，我們目前仍有一個關鍵點，那就是我們還沒有達到能夠為客戶提供非常易用的應用程式的水平。所以，軟體或人工智慧解決方案的最終落地或應用還未實現。

So the strategy of Kingsoft Cloud, what we internally (inaudible) to me is actually, we need to refrain the impulse to actually spread our work and our energy across too much and too many verticals. Rather, we would ask the company, the people to actually focus on a few focus areas, where we have relative comp competitive advantages.

所以，金山雲的策略，我們內部（我聽不清楚）其實需要克制將工作和精力分散到太多垂直領域的衝動。相反，我們會要求公司和員工真正專注於幾個我們擁有相對競爭優勢的重點領域。

And then working on those solutions to achieve the so-called zero to one breakthrough, and then further do the one to end spreading out an application. So that's what we're doing now internally in terms of the enterprise cloud and its combination with the generative AI.

然後致力於這些解決方案，實現所謂的從零到一的突破，並進一步實現從一到端的擴展應用。這就是我們目前在企業雲及其與生成式人工智慧的結合方面內部正在做的事情。

Now, you also asked about the trend for the second half. Generally speaking, for enterprise cloud, the delivery peak had always exhibited this seasonality that the second half to be better than the first half. So as we look at the forecast for the second half, the growth rates for revenue for the second half of this year, we do expect that to be significantly better and higher than the first half of this year. Thank you.

您也問到了下半年的趨勢。一般來說，對於企業雲而言，交貨高峰期總是呈現季節性，下半年的表現會比上半年好。因此，當我們展望下半年的預測時，我們確實預期下半年的營收成長率會明顯好於上半年。謝謝。

[Zhong Xu, CITIC].

[鐘旭，中信]。

(spoken in foreign language) So I will translate the question. We see that the current chip supply that is undergoing some changes. H20 resumes supply, B330A and other chips will also be sold. But at the same time, issues such as chip security vulnerabilities may also suggest that the next development needs to be more cautious. Do we have made strategy adjustments through our pursuance ideas such as embracing domestic production. Thank you.

（外語）我來翻譯一下這個問題。我們看到目前的晶片供應正在發生一些變化。 H20恢復供應，B330A等晶片也將開始販售。但同時，晶片安全漏洞等問題也可能意味著下一步的發展需要更加謹慎。我們是否透過追求國產化等策略進行了戰略調整？謝謝。

(spoken in foreign language) (interpreted) Okay. So actually to your question, we've been given this a lot of thinking and contemplation from a strategy perspective in 2023 as we started to venture into the generative AI computing cloud business because this is the general broader picture under the final US geopolitical conflict, which gave rise to huge uncertainty in the supply chain.

（外語）（口譯）好的。實際上，對於您的問題，我們在2023年開始進軍生成式人工智慧運算雲端業務時，從戰略角度對此進行了大量思考和考量，因為這是最近美國地緣政治衝突下的總體形勢，這導致了供應鏈的巨大不確定性。

So on one hand -- now given that backdrop, on one hand, we embrace the compliance chips that are supplied in China. And on the other hand, we have also been closely monitoring and following domestic firms for supply chain.

因此，一方面──在這樣的背景下，我們一方面歡迎在中國供應的合規晶片。另一方面，我們也一直在密切監測和追蹤國內企業的供應鏈。

To be quite fair, the restriction for H20 actually happened on the day of our equity for issuers and the ensuing lifting of that restriction happened a few months later. However, we're not too surprised by that because given the backdrop, given the conflict nature. Also, we have been close business cooperation with suppliers for domestic chips in China, starting from one firm to many firms and actually a few of them we have very deep collaboration with.

公平地說，H20的限制實際上是在我們發行股票的當天就生效的，而幾個月後該限制才得以解除。不過，考慮到當時的背景和衝突的性質，我們對此並不感到驚訝。此外，我們一直與中國國內晶片供應商保持著密切的業務合作，從一家公司發展到多家公司，實際上我們與其中一些公司有著非常深入的合作。

So in summary, although, they have been back and forth in terms of supply chain uncertainty, however, there's no material impact to our capability to supply to supply and satisfy the demands of our customers. Now, also zooming into our particular situation, right, because the majority of our customers are large customers like key accounts, the large customers, and combining the strategy that talked about, so far, our capacity and all these channels that we have built both for domestic chips and also for overseas chips are sufficient to supply the demand.

總而言之，儘管供應鏈不確定性方面一直反覆，但這對我們的供貨能力和滿足客戶需求的能力沒有實質影響。現在，再來看看我們的具體情況，因為我們的客戶大多是大客戶，例如關鍵客戶，大客戶。結合我們之前談到的策略，到目前為止，我們的產能以及我們為國內晶片和海外晶片建立的所有管道都足以滿足需求。

So that is the situation right now in the short term. However, I do think that in the longer term, if there's going to be, for example, like a killer app, Gen AI application where the inference demands for customers experience explosive growth, and then the demands from the industry surge significantly.

短期來看，情況就是這樣。但我認為，從長遠來看，如果出現一款殺手級應用，例如通用人工智慧應用，客戶的推理需求會呈現爆炸性成長，那麼產業需求也會大幅成長。

We do think that there's a chance that in the future the supply would not be able to meet the demand. So in short, in the future, the balance between supply and demand largely depends on the domestic chips capabilities as well as their performance.

我們確實認為未來有可能出現供應無法滿足需求的情況。所以簡而言之，未來供需平衡很大程度取決於國產晶片的能力和性能。

Personally, I take a relatively conservative view that I think in the future, if demand should surge like that, there's a chance that the domestic chip supply will not be able to meet the demand in the market in China, but that's for the longer term. Thank you.

我個人持相對保守的看法，我認為未來如果需求激增，國內晶片供應有可能無法滿足中國市場的需求，但這只是長期來看。謝謝。

Thank you. I would now like to turn the conference back to Nicole Shan for closing remarks.

謝謝大家。現在請Nicole Shan致閉幕詞。

Thank you. Due to time, we conclude our earnings call today. Thank you once again for joining us today. If you have any further questions, please feel free to contact our team. Look forward to speaking with you again next quarter. Have a nice day. Thank you. Goodbye.

謝謝。由於時間關係，我們今天的財報電話會議到此結束。再次感謝您今天的參與。如果您還有其他問題，請隨時聯絡我們的團隊。期待下個季度再次與您溝通。祝您有美好的一天。謝謝。再見。

This concludes today's conference call. Thank you for participating. You may not disconnect.

今天的電話會議到此結束。感謝您的參與。請勿斷開連接。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分由現場翻譯人員朗讀。該翻譯人員由贊助本次活動的公司提供。