Q4 2025 Kingsoft Cloud Holdings Ltd Earnings Call

March 25, 2026

Operator: Good day, thank you for standing by. Welcome to the Kingsoft Cloud's Q4 and Full Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. 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, IRD of Kingsoft Cloud. Please go ahead.

Speaker #2: Good day, and thank you for standing by. Welcome to the Kingsoft Cloud's fourth quarter and full-year 2025 earnings conference call. At this time, all participants are in a listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone.

Speaker #2: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded.

Speaker #2: I would now like to hand the conference over to your speaker today, Nicole Shan, IRD of Kingsoft Cloud. Please go ahead.

Nicole Shan: Thank you, operator. Hello everyone, and thank you for joining us today. Kingsoft Cloud's Q4 and fiscal year 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 Chairman and CEO, Mr. Zou Tao; CFO, Ms. Li Yi; Senior Vice President, Mr. Liu Tao; Senior Vice President, Mr. Tian Kaiyan; Vice President, Ms. Wang Shuang; and Associate Vice President, Mr. Cai Jian. Mr. Zou Tao will review our business strategies, operations, and other company highlights, followed by Ms. Li, who will discuss the financial performance. They will be available to answer your questions during the Q&A session that follows. There will be consecutive interpretation. Our interpretations are for your convenience and reference purpose only. In case of any discrepancy, management's statement in the original language will prevail.

Speaker #3: Thank you, operator. Hello, everyone, and thank you for joining us today. Kingsoft Cloud's fourth quarter and fiscal year 2025 earnings release was distributed earlier today, and it is at ir.csyun.com.

Speaker #3: As well as on PR Newswire services. On the call today from Kingsoft Cloud, we have our Chairman and CEO, Mr. Tao Zou; CFO, Ms. Li Yi; Senior Vice President, Mr. Liu Tao; Senior Vice President, Mr. Tian Kaiyan; Vice President, Ms. Wang Shuang; and Associate Vice President, Mr. Kai Hsien.

Speaker #3: Miss Zhou will reveal our business strategies, operations, and other company highlights. This will be followed by Miss Li, who will discuss the financial performance. They will be available to answer your questions during the Q&A session that follows.

Speaker #3: You will have consecutive interpretation of interpretations for your convenience and reference purposes only. In case of any discrepancy, the management statement in the original language will prevail.

Nicole Shan: 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 U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, some 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. Further information regarding these and other risks, uncertainties, or factors are included in the company's filings with the U.S. SEC.

Speaker #3: 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 U.S. Private Securities Litigation Reform Act of 1995.

Speaker #3: This forward-looking statements are based upon management's current expectations and current market and operating conditions. And related to events that you will know or unknown risks and certainties and other factors.

Speaker #3: 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 majority from those in the forward-looking statements.

Speaker #3: Further information regarding this and other risks, certainties, or factors are included in the company's filings with the US SEC. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under applicable law.

Nicole Shan: The company does not undertake any obligation to update any forward-looking statement 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. It's now my pleasure to introduce our Chairman and CEO, Mr. Zou. Please go ahead.

Speaker #3: Finally, please note that unless otherwise stated, all financial figures mentioned during this conference call are denominated in RMB. It is now my pleasure to introduce our Chairman and CEO, Mr. Tao Zou.

Speaker #3: Please go ahead.时刻的普惠到多模态SOTA模型你追我赶的极致表现，从具身智能突飞猛进跨入物理世界到OpenCloud的自主理解执行闭环，AI正以不可阻挡之势多点进化，串联起从模型、计算机、智能体、算力到产业落地的脉络，重塑千行百业，云计算作为AI五层蛋糕的高度耦合的组成部分，正承接前所未有的庞大计算需求。2025年，金山云继续走高质量可持续发展道路。在AI浪潮中拥抱机遇，在实干中收获成长，取得了财务业绩表现和业务能力沉淀的双丰收，成绩斐然。首先，我们四季度收入达27.6亿元，再创历史新高，同比增长24%。其中，公有云同比大幅增长35%，收入达19亿元。计算业务继续发力，驱动强势增长。四季度账单收入达9.3亿元，同比增长95%，占公有云收入比例达49%。其次，生态内外业务增长齐头并进，一方面生态合作稳固并不断深化。本季度来自小米金山生态的收入达8亿元，同比增长63%，占总收入比例进一步提升至29%。2025年全年我们与小米和金山关联交易逼近额度内上限，达94%。另一方面，生态外客户同样认可我们的产品服务，其占总收入比例超过70%，覆盖众多高增长行业的领军企业。我们前五大非生态客户的收入同比增长达44%，保持强劲增长势头。最后，盈利水平继续提升。本季度经调整毛利率环比提升至17.1%，经调整经营利润率2.0%，再次实现了经营层面的盈利。公司造血能力同比持续显著提升。

Zou Tao: 大家好，欢迎参加金山云2025年第四季度及全年业绩电话会。我是金山云CEO周涛。2025年初以来，全球AI行业迎来了一系列里程碑的事件，从DeepSeek时刻的同会，到多模态SOTA模型你追我赶的极致表现，从具身智能突飞猛进跨入物理世界，到OpenCloud的自主理解执行闭环。AI正以不可阻挡之势多点进化，串联起从模型、智算体、智能体、算力到产业落地的脉络，成束千行百业。云计算作为AI五层蛋糕的高度耦合的组成部分，正承接前所未有的庞大智算需求。2025年，金山云继续走高质量可持续发展道路，在AI浪潮中拥抱机遇，在实干中收获成长，取得了财务业绩表现和业务能力沉淀的双丰收，成绩斐然。首先，我们四季度收入达27.6亿元，再创历史新高，同比增长24%。其中公有云同比大幅增长35%，收入达19亿元。智算业务继续发力，驱动强势增长。四季度账单收入达9.3亿元，同比增长95%，占公有云收入比例达49%。其次，生态内外业务增长齐头并进。一方面，生态合作稳固并不断深化。本季度来自小米金山生态的收入达8亿元，同比增长63%，占总收入比例进一步提升至29%。2025年全年，我们与小米和金山关联交易逼近额度内上限，达94%。另一方面，生态外客户同样认可我们的产品服务，其占总收入比例超过70%，覆盖众多高增长行业的领军企业。我们前五大非生态客户的收入同比增长达44%，保持强劲增长势头。最后，盈利水平继续提升。本季度经调整毛利率环比提升至17.1%，经调整经营利润率2.0%，再次实现了经营层面的盈利。公司造血能力同比持续显著提升。

Zou Tao: Hello everyone, and thank you and welcome to Kingsoft Cloud Q4 and Fiscal Year 2025 Earnings Call. I am Zou Tao, CEO of Kingsoft Cloud. Since the beginning of 2025, the global AI industry has reached a series of milestones from the democratization sparked by the DeepSeek moment to the active competition among multimodal SOTA models. From the leap of embodied AI into the physical world to open cloud close to the capability of understanding and execution. AI is evolving with unstoppable momentum, linking across models, agents, computing power to industrial applications, reshaping every sector. As a tightly integrated components of the AI five-layer cake, cloud computing is now meeting an unprecedented surge in demand for intelligent computing. This year, we stayed committed to our high quality and sustainable development strategy, embracing the opportunities in AI era, strengthening our capability through solid execution. We have delivered impressive results, achieving strong financial performance while forging lasting business trends. First, we recorded a historical high quarterly revenue reaching RMB 2.76 billion, representing a year-over-year growth of 24%. Among which, revenues from public cloud services increased by 35% to RMB 1.9 billion. Our intelligent computing services keep driving our growth. The gross billing of AI business reached RMB 926 million, representing a 95% year-over-year and contributing 49% of our public cloud services. Second, growth in our ecosystem and external business segment is progressing hand in hand. On one hand, our ecosystem partnerships have remained strong and continue to deepen. This quarter, Xiaomi and Kingsoft ecosystem revenue reached RMB 804 million, a 63% year-over-year increase, accounting for 29% of total revenue. For the full year 2025, related party transactions with Xiaomi and Kingsoft ecosystem partners reached 94% of our annual cap, almost hitting the limit. On the other hand, our external customers, including leading enterprises across a wide range of high-growth industries, also shown confidence in our products and services, accounting for around 70% of total revenue. Furthermore, revenue from our top five non-ecosystem customers grew by 44% year-over-year, sustaining strong growth momentum. Last but not least, profitability continued to improve this quarter, with adjusted gross margin increasing quarter-over-quarter to 17.1% and adjusted operating margin reaching 2.0%. We have achieved operating level profitability two quarters in a row, and our self-funding capability has shown sustained and significant year-over-year improvement.

Speaker #4: Hello, everyone, and thank you. Welcome to Kingsoft Cloud's fourth quarter and fiscal year 2025 earnings call. I am Tao Zou, CEO of Kingsoft Cloud.

Speaker #4: Since the beginning of 2025, the global AI industry has reached a series of milestones. From the democratization sparked by the DeepSeek moment to the active competition among multimodal SOTA models, from the leap of embodied AI into the physical world to OpenCloud's closed-loop capability of understanding and execution.

Speaker #4: AI is evolving with unstoppable momentum, linking across models, agents, computing powers, to industrial applications—reshaping every sector. As a tightly integrated component of the AI five-layer cake, cloud computing is now meeting an unprecedented surge in demand for intelligent computing.

Zou Tao: This year, we stayed committed to our high quality and sustainable development strategy, embracing the opportunities in AI era, strengthening our capability through solid execution. We have delivered impressive results, achieving strong financial performance while forging lasting business trends. First, we recorded a historical high quarterly revenue reaching RMB 2.76 billion, representing a year-over-year growth of 24%. Among which, revenues from public cloud services increased by 35% to RMB 1.9 billion. Our intelligent computing services keep driving our growth. The gross billing of AI business reached RMB 926 million, representing a 95% year-over-year and contributing 49% of our public cloud services. Second, growth in our ecosystem and external business segment is progressing hand in hand. On one hand, our ecosystem partnerships have remained strong and continue to deepen. This quarter, Xiaomi and Kingsoft ecosystem revenue reached RMB 804 million, a 63% year-over-year increase, accounting for 29% of total revenue.

Speaker #4: This year, we stayed committed to our high-quality and sustainable development strategy. Embracing the opportunities in the AI era, we strengthened our capability through solid execution. We have delivered impressive results, achieving strong financial performance while forging lasting business strength.

Speaker #4: First, we recorded a historical high quarterly revenue, reaching RMB 2.76 billion, representing a year-over-year growth of 24%. Among which, revenues from public cloud services increased by 35% to RMB 1.9 billion.

Speaker #4: Our intelligent computing services keep driving our growth. The gross revenue of our AI business reached RMB 926 million, representing a 95% year-over-year increase and contributing 49% of our public cloud services.

Speaker #4: Second, growth in our ecosystem and external business segment is progressing hand in hand. On one hand, our ecosystem partnerships remain strong and continue to deepen.

Speaker #4: This quarter, Xiaomi and Kingsoft ecosystem revenue reached RMB 804 million year-over-year increase, accounting for 29% of total revenue. For the full year 2025, related party transactions with Xiaomi and Kingsoft ecosystem are nearing our annual cap, almost hitting the limit.

Zou Tao: For the full year 2025, related party transactions with Xiaomi and Kingsoft ecosystem partners reached 94% of our annual cap, almost hitting the limit. On the other hand, our external customers, including leading enterprises across a wide range of high-growth industries, also shown confidence in our products and services, accounting for around 70% of total revenue. Furthermore, revenue from our top five non-ecosystem customers grew by 44% year-over-year, sustaining strong growth momentum. Last but not least, profitability continued to improve this quarter, with adjusted gross margin increasing quarter-over-quarter to 17.1% and adjusted operating margin reaching 2.0%. We have achieved operating level profitability two quarters in a row, and our self-funding capability has shown sustained and significant year-over-year improvement.

Speaker #4: On the other hand, our external customers, including leading enterprises across a wide range of high-growth industries, have also shown confidence in our products and services.

Speaker #4: Accounting for around 70% of total revenue. Furthermore, revenue from our top five non-ecosystem customers grew by 44% year-over-year, sustaining strong growth momentum. Last but not least, profitability continued to improve this quarter, with adjusted gross margin increasing quarter over quarter to 17.1%, and adjusted operating margin reaching 2.0%.

Speaker #4: We have achieved operating-level profitability two quarters in a row, and our self-funding capability has shown sustained and significant year-over-year improvement.

Zou Tao: 下面我向大家具体介绍2025年第四季度的业务进展。公有云方面，本季度实现收入19亿元，同比增长35%。客户角度，2025年AI能力边界不断拓展，驱动各行各业对AI的全面拥抱，使得我们的客户基础更加多元，不仅包括头部的AI企业和互联网厂商，也广泛服务车企、智驾、具身智能、金融科技等新兴行业的智算需求。不仅牢牢把握小米金山生态内多样化的业务需求，也在生态外开疆拓土，斩获商机。产品服务角度，我们持续突破集群规模上限，交付大规模智算集群服务，助力重点客户的大模型训练与爆发式的推理需求。本季度我们交付的某头部互联网视频客户推理集群已实现覆盖其AI业务超一亿用户。我们新签约头部互联网加的金融客户，为其提供按token用量付费的推理场景服务，以稳定的模型及算力服务得到客户的认可。供应链角度，面对供应链市场的不确定性，我们凭借多年深耕打造的稳健供应链体系，前瞻性地进行布局，动态进行关键的核心部件的备货，为我们的业务增长保驾护航。行业云方面，本季度实现收入8.6亿元，环比大幅增长18%。在人工智能加的政策驱动下，产业智能解决方案成为行业发展的主要驱动。垂直行业对于模型的专业性，在真实业务场景中的实用性，以及数据合规的高要求，也使得云服务在推进产业智能化的进程中更为必要。行业云的AI推动行稳致远，不仅有万亿市场的潜力，同时对于技术推动产业的全面跃进至关重要。金山云作为有技术、有经验、有服务能力的B2B领域云服务厂商，定将把握产业机遇。企业服务领域，我们实现了智算业务在高端制造核心场景的关键落地，为行业顶级的龙头企业客户在智能制造、工业视觉、AI研发提供稳定高效的算力服务支撑。数字健康领域，我们正式发布了基于Data Agent架构的医疗智能运营管理AI应用，标志着公司医疗大数据服务完成了从数字化向智能化的范式跨越。构建了可验证、可审计的医疗数据分析新标准，支持用户以自然语言直观洞察疾病诊断相关分组的DRG、控费、营收波动等核心指标根因，真正实现了对话即分析。该平台将医院管理从事后统计升级为事前预测与事中干预。在大幅降低数据应用门槛的同时，进一步巩固了公司在医疗AI高价值场景中的技术壁垒与差异化竞争优势。在公共服务领域，本季度我们在政企智算领域与运营商进行合作，结合双方的资源与技术优势，提供长期稳定的高性能算力集群服务，快速切入到上海等核心地区的政企智算市场。我们相信，凭借金山云在垂直行业的专业能力和企业服务的经验沉淀，行业云智算机会同样是巨大的产业机会，与公有云互联网行业协同共进。

Speaker #3: Xiaomi, 2025年第四季度的业务进展。公有云方面，本季度实现收入19.1元，同比增长35%。客户角度，2025年AI能力边界不断拓展，驱动各行各业对AI的全面拥抱，使得我们的客户基础更加多元。不仅包括头部的AI企业和互联网厂商，也广泛服务车企、自驾、具身智能、金融科技等新兴行业的资产需求。不仅牢牢把握小米金山生态内多样化的业务需求，也在生态外开疆拓土，斩获商机。产品服务角度，我们持续突破集群规模上限，交付大规模计算集群服务，助力重点客户的大模型训练与爆发式的推理需求。本季度，我们交付的某头部互联网视频客户推理新集群已实现覆盖其AI业务超1亿用户。我们新签约头部互联网+的金融客户，为其提供按TOKEN用费用量付费的推理场景服务，以稳定的模型及算力服务得到客户的认可。供应链角度，面对供应链市场的不确定性，我们凭借多年深耕打造的稳健供应链体系，前瞻性地进行布局，动态进行关键核心部件的备货，为我们的业务增长保驾护航。行业云方面，本季度实现收入8.6亿元，环比大幅增长18%。在人工智能+的政策驱动下，产业智能解决方案成为行业发展的主要驱动。垂直行业对于模型的专业性，在真实业务场景中的实用性，以及数据合规的高要求，也使得云服务在推进产业智能化的进程中更为必要。行业云的AI推动行稳致远，不仅有万亿市场的潜力，同时对于技术推动产业的全面跃进至关重要。金山云作为技术、有技术、有经验、有服务能力的2B领域云服务厂商，定向把握产业机遇。企业服务领域，我们实现了计算业务在高端制造核心场景的关键落地，为行业顶级的龙头企业客户在智能制造、工业视觉、AI研发、提供稳定、高效的算力服务支撑。数字健康领域，我们正式发布了基于Data Agent架构的医疗智能运营管理AI应用，标志着公司医疗大数据服务完成了从数字化向智能化的范式跨越。构建了可验证、可审计的医疗数据分析新标准，支持用户以自然语言直观洞察疾病诊断相关分组的DRG控费，营收波动等核心指标根因真正实现了对话即分析。该平台将医院管理从事后统计升级为事前干预、事前预测与事中干预，在大幅降低数据应用门槛的同时，进一步巩固了公司在医疗AI高价值场景中的技术壁垒与差异化竞争优势。在公共服务领域，本季度我们在政企计算领域与运营商进行合作，结合双方的资源与技术优势，提供长期稳定的高性能算力集群服务。快速切入到上海等核心地区的政企计算市场，我们相信凭借金山云在垂直行业的专业能力和企业服务的经验沉淀，行业云计算机会同样是巨大的产业机会，以公有云互联网行业协同共进。

Zou Tao: Now I would like to walk you through the key business highlights for Q4 2025. In terms of public cloud services, revenue reached CNY 1.9 billion this quarter, representing a year-over-year increase of 35%. From customer perspective, in 2025, AI continues pushing its boundaries, driving industries to fully embrace it, diversifying our customer base. Beyond leading AI enterprises and Internet giants, we now also serve automotive manufacturing, autonomous driving, embodied AI, and Fintech sectors, et cetera. We've solidified our cooperation within the Xiaomi and Kingsoft ecosystem while capturing new external opportunities. From product and services perspective, we keep pushing the limits of cluster scale, supporting large-scale training and explosive inference demands. Notably in this quarter, we delivered a new inference cluster for top video streaming platforms, serving over 100 million users.

Speaker #1: Now I would like to walk you through the key business highlights for the fourth quarter of 2025. In terms of public cloud services, revenue reached RMB 1.9 billion this quarter.

Speaker #1: Representing a year-over-year increase of 35%. From a customer perspective, in 2025, AI continued pushing its boundaries, driving industries to fully embrace it. Diversifying our customer base beyond leading AI enterprises in an internet giant, we now also serve automotive manufacturing, autonomous driving, embodied AI, and fintech sectors, etc.

Speaker #1: We've solidified our cooperation within the Xiaomi and Kingsoft ecosystem, while capturing new external opportunities. From a product and services perspective, we keep pushing the limits of cluster scale.

Speaker #1: Supporting large-scale training and explosive inference demands, notably in this quarter, we delivered a new inference cluster for top video streaming platforms, serving over 100 million users.

Zou Tao: We also secured a major Fintech customer using our token-based inference service, who speak highly of our stable model and computing power services. On supply chain front, despite market uncertainties, our well-established and resilient supply chain, built through years of experience, allowed us to plan ahead strategically and stock key components dynamically to ensure sustainable business growth. Now in terms of enterprise cloud, revenue reached RMB 859 million this quarter, a significant quarter-over-quarter increase of 18%. Driven by the AI Plus policy, industrial intelligence solutions have become a key growth driver. The demand for specialized vertical models, real-world application, and strict data compliance makes cloud services more essential than ever in advancing industrial intelligence.

Speaker #1: We also secured a major fintech customer, using our token-based inference service, who speak highly of our stable model and computing power services. On the supply chain front, despite market uncertainties, our well-established and resilient supply chain, built through years of experience, allowed us to plan ahead strategically and stock key components dynamically to ensure sustainable business growth.

Speaker #1: Now, in terms of enterprise cloud, revenue reached RMB 859 million this quarter—a significant quarter-over-quarter increase of 18%. Driven by the AI+ policy, industrial intelligence solutions have become a key growth driver.

Speaker #1: The demand for specialized vertical models, real-world application, and strict data compliance makes cloud services more essential than ever in advancing industrial intelligence. The AI business of enterprise cloud is paving the way for steady, long-term growth, not only representing a trillion-dollar market opportunity but also playing a critical role in driving the technological leap across industries.

Zou Tao: The AI business of enterprise cloud is paving the way for steady long-term growth, not only representing a trillion-dollar market opportunity, but also playing a critical role in driving the technological leap across industries. As a B2B cloud service provider with solid technology, expertise, and enterprise service capabilities, we are well positioned to capture these industrial transformation opportunities. In the area of enterprise services, we achieved key breakthroughs in high-end manufacturing industry. We provided stable and high-performance computing service to the top enterprises to support their process in intelligent manufacturing, industrial vision, and AI R&D. In healthcare space, we launched a Data Agent-based AI application in healthcare intelligent operation process, marking a paradigm shift from digitalization to intelligence. This analysis through natural dialogues platform enables natural language insights into DRG cost control, moving hospital management from retrospective statistics to proactive intervention.

Speaker #1: As a B2B cloud service provider with solid technology expertise and enterprise service capabilities, we are well-positioned to capture these industrial transformation opportunities. In the area of enterprise services, we achieved key breakthroughs in high-end manufacturing industry.

Speaker #1: We provided stable and high-performance computing service to the top enterprises to support their process in intelligent manufacturing industrial vision and AI R&D. In healthcare space, we launched a data agent-based AI application in healthcare intelligent operation process, marking a paradigm shift from digitalization to intelligence.

Speaker #1: This analysis, through the natural dialogue platform, enables natural language insights into DRG cost control, moving hospital management from retrospective statistics to proactive intervention. While significantly lowering the barrier to data application, we have further solidified our technical moats and differentiated competitive advantages in high-value medical AI scenarios.

Zou Tao: While significantly lowering the barrier to data application, we have further solidified our technical moats and differentiated competitive advantages in high-value medical AI scenarios. In public services area, we partnered with telecom operators to provide sustainable and stable high-performance computing cluster for the public services sector. Successfully entering key markets like Shanghai. We believe that by leveraging Kingsoft Cloud's deep vertical expertise and enterprise service experience, intelligent computing opportunities in the enterprise cloud segment represent a massive industrial frontier, generating synergies with our public cloud businesses.

Speaker #1: In the public services area, we partnered with telecom operators to provide a sustainable and stable high-performance computing cluster for the public services sector. Successfully entering key markets like Shanghai, we believe that by leveraging Kingsoft Cloud's deep vertical expertise and enterprise service experience, intelligent computing opportunities in the enterprise cloud segment represent a massive industrial frontier, generating synergies with our public cloud business.

Zou Tao: 产业技术方面，我们正打造面向大模型训练、推理与行业智能化的新一代算力服务体系，提供从算力服务、模型训练到MaaS全栈能力。我们的云服务从通用算力向智算优先、AI原生进行产品升级，助力千行百业数字化、智能化转型。我们持续围绕客户在训练和推理场景的需求进行技术能力升级，旨在为客户提供稳定的、高效、易用的智算服务。本季度，StarFlow平台的模型应用服务进一步升级，推出了MCP广场、prompt优化、AI搜索能力，助力企业通过平台化方式实现agent的开发落地，逐步构建以agent运行支撑为核心的全新生态。对于行业云客户私有化部署的智算场景，我们的Galaxy Stack平台能够支撑预购GPU管理、RoCE网络、容器智能调度等能力，全栈国产化深度适配，深度赋能垂直行业的智能化转型。站在时代的新起点上，展望未来，无限的可能令我们倍感兴奋。金山云会继续走高质量、可持续发展的道路，坚信并拥抱AI战略机遇，顺势而为，躬身实干，打磨和沉淀核心产品技术解决方案能力，牢牢把握和深耕生态内外巨大的商机，精细化算力资产运营管理，进而不断提高盈利能力，为客户、股东、员工和社会创造更大的价值。接下来有请公司CFO李祎为大家介绍四季度及全年的财务业绩。谢谢。

Speaker #2: 产业技术方面，我们正打造面向大模型训练、推理与行业智能化的新一代算力服务体系，提供从算力服务、模型训练到MaaS服务的全站能力。我们的云服务从通用算力向计算优先、AI原生进行产品升级，助力千行百业数字化智能化转型。我们持续围绕客户在训练和推理场景的需求进行技术能力升级，旨在为客户提供稳定的、高效易用的计算服务。本季度新流平台的模型应用服务进一步升级，推出了NCP广场、Promote优化AI搜索能力、助力企业通过平台化方式实现Agent开发落地，逐步构建以Agent运行支撑为核心的全新生态。对于行业云客户、私有化部署的计算场景，我们的云和云平台能够支撑易购GPU管理、Locked网络、容器、智能调度等能力，全站国产化深度适配。深度赋能垂直行业的智能化转型。站在时代的新起点上，展望未来，无限的可能令我们倍感兴奋。金山云会继续走高质量可持续发展的道路，坚信并拥抱AI战略机遇，顺势而为，躬身实干，打磨和沉淀核心产品技术解决方案能力，牢牢把握和深耕生态内外巨大的商机，精细化算力资产运营管理，进而不断提高盈利能力，为客户、股东、员工和社会创造更大的价值。接下来有请公司CFO李毅为大家介绍四季度及全年的财务业绩，谢谢。

Zou Tao: In terms of products and technology, we are building a next generation computing services system for LLM training, inference, and industrial intelligence, offering full stack capabilities from computing services to Model as a Service. Our technology upgrades from basic cloud computing to an AI-first, AI-native cloud architecture, contributing towards digital and intelligent transformation across sectors. We focused on the technologies catering to model training and inference scenarios, aiming to provide highly stable, highly efficient, and ready-to-use intelligent computing services. This quarter, our StarFlow platform keeps upgrading with the launch of MCP, aka Model Context Protocol Hub, prompt optimization, and AI search features to help enterprises develop and deploy AI agents through a unified platform, gradually building a new ecosystem centered around agent-based operations. For enterprises with private deployment demands, our Galaxy Stack provides heterogeneous GPU management, RoCE network, and intelligent container scheduling capabilities.

Speaker #1: In terms of products and technology, we are building a next-generation computing services system for LLM training, inference, and industrial intelligence, offering full-stack capabilities from computing services to model as a service.

Speaker #1: Our technology upgrades from basic cloud computing to an AI-first AI-native cloud architecture contributing for digital and intelligent transformation across sectors. We focus on the technologies catering to model training and inference scenarios, aiming to provide highly stable, highly efficient, and ready-to-use intelligent computing services.

Speaker #1: This quarter, our star flow platform keeps upgrading with the launch of MCP AKA model context protocol hub, prompt optimization, and AI search features to help enterprises develop and deploy AI agents through a unified platform, gradually building a new ecosystem centered around agent-based operations.

Speaker #1: For enterprises with private deployment demands, our Galaxy stack provides heterogeneous GPU management, rowkey network, and intelligent container scheduling capabilities. We also feature full-stack localization, with indigenous adaptation to empower intelligent transformation across verticals.

Zou Tao: We also feature full stack localization with indigenous adaptations to empower intelligent transformation across verticals. Standing at a new starting point, looking ahead, we're truly excited by the limitless possibilities that lie before us. We will remain committed to our high quality and sustainable development strategy. By embracing the immense opportunities presented by the AI era, developing along with the industry, and refining our core technologies, we will continue to capture the market opportunities both within and beyond our ecosystem, optimizing the operations of our assets to enhance profitability, and thereby create value for our customers, shareholders, employees, and society. I will now pass the call to our CFO, Ms. Li Yi, to go over our financials for the Q4 and fiscal year 2025. Thank you.

Speaker #1: Standing at a new starting point, looking ahead, we're truly excited by the limitless possibilities that lie before us. We will remain committed to our high-quality and sustainable development strategy, by embracing the immense opportunities presented by the AI era, developing along with the industry, and refining our core technologies.

Speaker #1: We will continue to capture the market opportunities both within and beyond our ecosystem, optimizing the operation of our assets to enhance profitability and thereby create value for our customers, shareholders, employees, and society.

Speaker #1: I will now have to call on our CFO, Mr. Li Yi, to go over our financials for the fourth quarter and fiscal year 2025.

Li Yi: Thank you, Mr. Zhou and Clark, and thank you all for joining the call today. Before we walk through the details of financial results for Q4 and fiscal year 2025, I would like to highlight the following aspects. First, our revenue has achieved record high, CNY 2,761 million this quarter, representing a year-over-year growth rate of 24%. Within that, revenue from public cloud services was CNY 1,902 million, increased by 35% from CNY 1,410 million in the same quarter last year. Unpredictably explosive demand for AI business drove a 95% year-over-year billing growth, which totaled CNY 926 million. Second, profitability has seen substantial improvement. Driven by shifts in our revenue structure, our adjusted gross margin continued its upwards trend, rising to 70% from 60% in the previous quarter.

Speaker #1: Thank you.

Speaker #3: Thank you, Mr. Zou and Clark. And thank you all for joining the call today. Before we walk through the details of financial results for the fourth quarter and fiscal year 2025, I would like to highlight the following aspects.

Speaker #3: First, our revenue has achieved record highs—$2,761 million this quarter—representing a year-over-year growth rate of 24%. Within that, revenue from public cloud services was $1,982 million, an increase of 35% from $1,410 million in the same quarter last year. Unprecedented, explosive demand for AI business drove a 95% year-over-year growth, which totaled $926 million.

Speaker #3: Second, profitability has seen substantial improvement. Driven by shifts in our revenue structure, our adjusted gross margin continued its upward trend, rising to 17% from 16% in the previous quarter. Adjusted EBITDA margin reached 28%, up 12 percentage points from 16% in the same quarter last year.

Li Yi: Adjusted EBITDA margin reached 28%, up 12 percentage points from 60% in the same quarter last year, though down from 33% last quarter. The year-over-year growth was fueled by a large contribution from AI-related business. Well, depreciation represents the primary cost component. The sequential decrease was mainly due to a non-recurring subsidy received last quarter, which established a high baseline. Notably, we have achieved adjusted operating profit for two consecutive quarters, reaching CNY 55 million this quarter, which was a 2% margin. This result validates our ability to monetize intelligent cloud opportunities and our strategic focus on high-quality enterprise services. Third, our cash and cash equivalents reached CNY 6,080 million, strengthening our ability to further support the investment into AI business. Now I will walk you through our financial results for Q4 2025.

Speaker #3: Though down from 33% last quarter, the year-over-year growth was fueled by a large contribution from AI-related business, where participation represents the primary cost component.

Speaker #3: The sequential increase and decrease was mainly due to a

Speaker #1: Recurrent subsidiary received last quarter, which established a high baseline. Notably, we have achieved adjusted operating profit for two consecutive quarters, reaching 555 million.

Speaker #1: This quarter , which was a 2% margin . This results validate our ability to monetize intelligent cloud opportunities and our strategic focus on high quality enterprise services Third , our cash and cash equivalents achieved 6080 million , stressing our ability to further support the investment into AI business Now I will walk you through our financial results for the fourth quarter of 2025 .

Li Yi: This quarter, total revenue was CNY 2,761 million. Of these, revenues from public cloud services were CNY 1,902 million, up 35% from CNY 1,410 million in the same quarter last year. Revenues from enterprise cloud services reached CNY 859 million during this seasonally strong quarter, which was characterized by a high volume of project completions. Total cost of revenue was CNY 2,296 million, up 27% year-over-year, which was mainly due to our investment into infrastructure to support intelligent cloud business growth. IDC costs increased by 13% year-over-year from CNY 725 million to CNY 812 million this quarter. The increase was mainly due to the increasing needs of racks, which serves the expanding AI business.

Speaker #1: This quarter, total revenue was $2,761 million. Of this, revenue from public cloud services was $1,902 million, up 35% from $1,410 million in the same quarter last year. Revenue from Enterprise Cloud Services reached $859 million.

Speaker #1: Have minutes this quarter The increase was mainly due to the increasing list of drugs , which served the expanding AI business Depreciation and amortization costs increased from 323 million in the same quarter of 2024 to 741 million last quarter The increase was mainly due to the depreciation of newly acquired and leased servers , and network equipment , which were mainly allocated to our AI business solution development and service costs increased by 50% year over year from 557 million in the same quarter of 2024 to 642 million last quarter .

Li Yi: Depreciation and amortization costs increased from CNY 323 million in the same quarter of 2024 to CNY 741 million this quarter. The increase was mainly due to the depreciation of newly acquired and leased servers and network equipment, which were mainly allocated to our AI business. Solution development and service costs increased by 50% year-over-year from CNY 557 million in the same quarter of 2024 to CNY 642 million this quarter. The increase was mainly due to the solution personnel expansion. Fulfillment costs and other costs were CNY 4 million and CNY 61 million this quarter. Our adjusted gross profit for the quarter was CNY 471 million, increased by 10% year-over-year and 20% quarter-over-quarter.

Speaker #1: The increase was mainly due to the solution personal expansion . Fulfillment costs and other costs were 4,000,061 million last quarter . Our adjusted gross margin for the quarter was 471 million , increased to 10% year over year , and 20% quarter over quarter .

Li Yi: It was mainly due to the expansion of our revenue scale, the enlarged contribution from AI business, and the cost control over IBC racks and servers. Adjusted gross margin increased from 60% last quarter to 70% in this quarter, which was mainly due to the high contribution from enterprise cloud. On the expense side, excluding share-based compensation costs, our total adjusted operating expenses were CNY 459 million, increased by 3% year-over-year and increased 9% quarter-over-quarter. Of which, our adjusted research and development expenses were CNY 181 million, increased by 7% from same quarter last year. Adjusted selling and marketing expenses were CNY 111 million, increased by 3% year-over-year. Adjusted general and administrative expenses were CNY 168 million, decreased 1% year-over-year.

Speaker #1: It was mainly due to the expansion of our revenue scale, the enlarged contribution from the AI business, and the cost control of IDC racks and servers.

Speaker #1: Adjusted gross margin , increased from 60% last quarter to 70% . In this quarter , which was mainly due to the high contribution from Enterprise Cloud on the expense side , excluding share based compensation costs .

Speaker #1: Our total adjusted operating expenses were $459 million, increased by 3% year over year, and increased 9% quarter over quarter, of which are adjusted.

Speaker #1: Research and development expenses were 181 million , increased by 7% from the same quarter last year Adjusted selling and marketing expenses were 111 million , increased by 3% year over year .

Speaker #1: Adjusted general and administrative expenses were $168 million, decreased by 1% year over year. Our adjusted operating profit was $55 million, an increase of 124% from the adjusted operating profit of the same period last year.

Li Yi: Our adjusted operating profit was CNY 55 million, increased by 124% from adjusted operating profit of CNY 24 million in the same period last year. The improvement was mainly due to the expansion of our revenue scale and gross profit, as well as the expense control. The total expense as a percentage of revenue keeps decreasing. Adjusted operating profit margin increased from 1% in the same period last year to 2% this quarter. Our non-GAAP EBITDA was CNY 785 million, increased by 180% from CNY 360 million in the same quarter last year. Our non-GAAP EBITDA margin achieved 28% compared with 6% in the same quarter last year. It was mainly due to our strong commitment to AI cloud computing development, strategic adjustment of business structure, strict control over costs and expenses.

Speaker #1: The improvement was mainly due to the expansion of our revenue scale and gross profit, as well as expense control. The total expenses as a percentage of revenue keep decreasing.

Speaker #1: Adjusted operating profit margin increased from 1% in the same period last year to 2% this quarter. Our long gap EBITDA margin was 785 million, increased by 180% from 260 million in the same quarter last year.

Speaker #1: Our long EBITDA margin achieved 28% , compared with 60% in the same quarter last year . It was mainly due to our strong commitment to AI cloud computing development , strategic adjustment of business structure , strategy , control over costs and expenses .

Li Yi: This quarter, our capital expenditure, including those financed by third parties and right of use assets obtained in exchange for financed lease liabilities, were CNY 496 million. For the full year 2025, our total revenue achieved CNY 9,759 million, increased by 23% from CNY 7,785 million in 2024. Among which, revenues from Public Cloud services were CNY 6,634 million, increased by 33% year-over-year. Revenues from Enterprise Cloud services were CNY 2,925 million.

Speaker #1: This quarter are capped with venture , including those financed by third parties and right of use assets obtained in exchange for finance , lease liabilities were 496 million for the full year 2025 , our total revenue achieved 9559 million increased by 23% from 7000 785,000,000 in 2024 .

Speaker #1: Among which revenues from public cloud services were 606,634 million increased by 33% year over year . Revenues from Enterprise Cloud services were 2925 million , increased by 505% year over year .

Li Yi: Increased by 5% year-over-year. Adjusted gross profit was CNY 1,542 million, increased by 40% from CNY 1,358 million last year. Adjusted gross margin was 60%, decreased from 70% last year, which was mainly due to the high cost for servers and other hardware equipment. Adjusted operating loss was CNY 152 million, narrowed significantly from CNY 431 million. Adjusted operating profit margin was -1.6%, narrowed from -5.5% last year. Adjusted EBITDA profit was CNY 2,336 million, increased by 2,066% from CNY 639 million last year. The adjusted EBITDA margin was 24%, improved by 60% from 8% last year.

Speaker #1: Adjusted gross profit was 1500 and 42 million , increased by 40% from 1358 million last year . Adjusted gross margin was 60% . Decreased from 70% last year , which was mainly due to the high cost for servers and other hardware equipment .

Speaker #1: Adjusted operating loss was 152 million , narrowed significantly from 431 million . Adjusted operating profit margin was minus 1.6% , narrowed from minus five point 5% last year .

Speaker #1: Adjusted EBITDA profit was ¥2,336 million, increased by 2,066% from ¥639 million last year. The adjusted EBITDA margin was 24%, improved by 60% from 8% last year.

Li Yi: Looking ahead, we aim to capitalize on the explosive growth in demand by further investing in infrastructure, enhancing service stability, managing liquidity risk, and improving operating efficiency. We remain focused on AI-driven strategy, providing customers with high value-added cloud services. That's all for the introduction of our operational and financial results. Thank you all.

Speaker #1: Looking ahead, we aim to capitalize on explosive growth in demand by further investing in infrastructure, enhancing service stability, managing liquidity risks, and improving operating efficiency.

Speaker #1: We remain focused on AI-driven strategies, providing customers with high value-added cloud services. That's all for the introduction of our operational and financial results.

Speaker #1: Thank you all Thank you . Operator this concludes our prepared remarks . We are now happy to take care . Questions . Please ask your question in both Chinese and English , if possible .

Nicole Shan: Thank you. This concludes our prepared remarks. We are now happy to take your questions. Please ask your question in both Chinese and English if possible. Operator, please go ahead. Thank you.

Speaker #1: Operator, please go ahead. Thank you.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, press star one and one again. We'll now move on to our first question. Our first question comes from the line of Liping Zhao from CICC. Please go ahead. Your line is open.

Speaker #2: Thank you. As a reminder, to ask a question you will need to press star, one, and one on your telephone and wait for your name to be announced. To withdraw your question, press star, one, and one again. We'll now move on to our first question. Our first question comes from the line of Liping Zhao from CIC.

Speaker #2: Please go ahead. Your line is open.

Liping Zhao: 邹总、吕总晚上好，感谢接受我的提问。首先也是恭喜公司获得非常好的一个四季度业绩。我这边有两个问题，首先第一个问题是关于小米的大模型，最近他们也推出了MiMo V2的系列模型，获得了市场好评。那怎么看我们在小米AI战略中的一个角色和定位，然后未来围绕小米家金山系的这个服务会有什么样的一个策略？然后第二个问题是关于行业的一个涨价趋势，其实我们最近看到行业里面有一些其他的这个云服务商也在有一些提价的动作，那公司是否已经调整AI战略服务的价格，或者有没有相关的一个涨价的计划，然后其中这个涨价的话，有多少是需求来传导的，有多少是上游这个采购成本传导的？好，我自己快速翻译一下。

Speaker #3: Do now Sure . Can you Mimo Xiaomi . I Xiaomi Can you take That On . For The Record . Good evening , Mr. Zhou and Miss Li .

Liping Zhao: Zhou and Ms. Li. Thanks for taking my questions, and congrats for the very good Q4 results. I have two questions here. First, Xiaomi recently launched the MiMo V2 series models, which have received a positive market feedback. How should we view our role and the positioning within Xiaomi's AI strategy? What strategies will be implemented around Xiaomi and Kingsoft service going forward? Secondly, how does the management view the current pricing uptrend in the cloud service industry? Has the company already adjusted its prices for AI computing services, or are there any related plans in place? To what extent are those price adjustments driven by demand or driven by the upstream procurement cost pass-through? Thank you.

Speaker #3: Thanks for taking my questions, and congrats for the very good work you do. Results, I have two questions here. First, Xiaomi recently launched the Mimo V2 series models, which have received positive market feedback.

Speaker #3: How should we view our role and positioning within Xiaomi's AI strategy and what strategies will be implemented around Xiaomi and Kingsoft service going forward ?

Speaker #3: And secondly , how does the management view the current pricing uptrend in the cloud service industry ? Has the company already adjusted prices for AI computing services , or are there any related plans in place ?

Speaker #3: To what extent are those price adjustments driven by demand, or driven by the upstream procurement cost pass-through? Thank you.

Zou Tao: 丽萍好，我第一个问题我先回答啊，然后第二个留着你来讲一讲好吗？结合行业涨价的趋势，我们谈谈我们的策略。其实第一个问题呢，我记得是2024年的8月份的那次的会吧，因为我们2024年8月份这个整个小米金山体系，我们开了一个战略研讨会，我其实那个时候谈的，其实就是说叫做小米金山的AI方阵。我也明确表达过金山体系不会自己去做大模型，但是小米一定会做。随着去年，2025年吧，这个包括今年，应该说去年年底，MiMo的V2版本以及这次的Pro版本陆续发布以及表现吧，这其实是我们2024年整个战略的具体落地。所以，这是丽萍这个问题，我先把这个背景说一下啊。你谈到未来这个随着V2、Pro的发布以及它的性能得到大家认可啊，就是未来整个在小米金山这个策略，其实我觉得这个大的战略没有变。对于金山云来讲呢，我去年在内部也非常明确地跟大家谈过，包括应该说去年也是差不多这个时候吧，我们做

Speaker #4: The end Xiaomi Xiaomi . Mi Xiaomi We will need more of the VR . The . Pro . Batman . The User We are .

Speaker #4: Take . Follow the Xiaomi The . Open call is Xiaomi . The Xiaomi and The Xiaomi Will I The Xiaomi Xiaomi You And You Are the

Zou Tao: 三月份我们就谈过，训练由训练时代逐渐向推理，推理在2025年。我觉得今年反正这个OpenAI一出来，我就估计这个已经没人再去质疑了。实际上，金山云在去年，我们七月份全会上我们就谈过这个策略，因为我们知道小米的这个模型训练的进度，我们就谈了这叫所谓的一加N。对于金山云，就是我们在未来要基于这个一，就是指小米的这个模型，N呢，当然这个，其他的，无论是开源的还是战略合作伙伴的，对吧？我们作为一个中立的云厂商，实际上我们的StarFlow平台都接了，能接的各种模型都接了，但是这个一加N是关键，这个一指的就是说，无论模型未来如何演变，开源、闭源，或者一加、三加，反正就是我们这个一指的就是小米这个模型，这个是我们整个小米金山系的这个阵眼吧。所以未来也是围绕这个。当然内部的这个，我们一方面服务好小米金山内部的这个软件硬件生态，同时对外也会输出我们这个服务能力，MaaS能力吧。所以简单讲，24年，我们在战略研讨会，两边就对整个未来这几年的AI发展的事做了战略蓝图的规划。然后随着这个进展，这些逐步逐步在落实，未来依然是，对金山云来讲，就是以一加N为基础，我们不仅是在训练时代服务好这些内外客户，未来在推理时代也会基于一加N这个核心框架，去做好这个推理服务。这就是整个第一个问题的比较宏观的回答吧。好，第二个问题我来回答。首先，从去年的三季度开始，我们预测到了核心器件的大幅的涨幅，所以提前做了一些储备，这个给我们今年去对资源涨价也提供了一定的基础。所以对于客户的涨价来说，我们实际上是分两个原则来看，一个呢是我们的已有的合同、已有的资源，这部分我们是不会给客户涨价的。同时，在我们的能力范围内，如果客户业务的增长，我们也会保持不涨价。但是对于新签的合同，对于新进的客户以及客户的显著的大幅的增量，那我们会跟客户协商新的价格，所以肯定会有价格的显著上涨，而且涨幅可能会比较大。另一方面，就是从利润率的角度来看，一方面我们是由于上游的这个涨价传导过来，我们会把涨价的幅度传导给客户。另一方面，因为市场供给的需求变得更加的大，所以我们可能会在传导这个上游价格的基础上，也会再增加额外的价格，以体现我们的利润增长。就是这些。

Speaker #1: Answer comes from our CEO . Mr. Zhou . So a little bit of background . So back in 2024 , I think that was was in August .

Speaker #1: We had an internal discussion about around the development of AI and models for the Xiaomi and Kingsoft ecosystem . So the idea was that the Xiaomi and Kingsoft ecosystem will form a team or portfolio of solutions where a whole system where Kingsoft will stay disciplined and not really developing our own large language models , which is left to for Xiaomi to develop .

Speaker #1: So the , the , the minimum model and it's widely recognized the performance is actually an implementation . And manifestation of our overall AI strategy within Xiaomi and Kingsoft Cloud ecosystem .

Speaker #1: And secondly , back in 2025 , so one year later from the internal discussion session from a case perspective , we formed a strategy that's called a one plus n .

Speaker #1: So the one here actually refers to the Xiaomi Mimo model , which is the key to KCS inference strategy . So in the future we will continue to adhere to this strategy , which essentially means that within the ecosystem , we will continue to serve the Xiaomi and Kingsoft ecosystem .

Speaker #1: And for external customers , we will also try to monetize our model as a service capabilities , thereby not only in the training area that we were able to make our revenue and profits , but also will make our contribution in the inference era .

Speaker #1: That is approaching. Thank you.

Speaker #4: So If you

Speaker #1: So the answer comes from our SVP , Mr. Liu Tao . So a little bit of background again . So in the Q3 last year , we have anticipated the significant pricing increase of from the supply chain side .

Speaker #1: And therefore, we had dynamically and strategically stocked up some of the key components. So we did have. So we were actually prepared for this.

Speaker #1: What's unfolding today ? Now in terms of the price hike that you were asking ? So we stick to two principles . Number one , if you already for the for the for some of the customers and business where we already have contracts in place and where we have the stocking of the underlying resources , we tend to not increase the pricing .

Speaker #1: However , for some of the new customers , new contracts , especially with significant increase of usage , there's going to be significant price hiking in this kind of scenarios .

Zou Tao: Now, also in terms of profitability, one thing is that we will actually try to pass through some of the upstream cost increases to our customers. Secondly, we also, depending on the demand, right, we will also try to increase some of the price to reflect and increase our profit. Thank you.

Speaker #1: Now, also, in terms of profitability, one thing is that we will actually try to pass through some of the upstream cost increases to our customers.

Speaker #1: And secondly , for we also , depending on the demand , right , we also try to increase some of the price to reflect and increase our profit .

Speaker #1: Thank you .

Nicole Shan: Operator, next question please.

Speaker #5: Her next question please .

Operator: Thank you. Please stand by. Our next question comes from the line of Wenting Yu from CLSA. Please go ahead, your line is open.

Speaker #2: Thank you. Please stand by. Our next question comes from the line of Wanting Yu from CLSA. Please go ahead, your line is open.

Wenting Yu: 邹总、李总，大家晚上好。感谢给我这次提问的机会。首先恭喜公司非常强劲的业绩。我这边有两个问题想请教一下。首先第一个是关于近期我们看到行业的头部云厂在业绩会上也去表示，业务会从这个传统的租赁模式更多地去转向这个MaaS的模式，那你们今年也会采取类似的战略吗？你们怎么去看待这个变化对行业竞争格局以及远期的利润率的影响呢？这个是第一个问题。那第二个问题也是关于行业这个竞争格局的问题，因为我们看今年这个火山引擎在整个行业涨价的情况下，还是采取相对比较低价的一个策略，那我们是怎么看这个方面对我们的影响？我先问一下这两个问题。The first question is that some of your cloud service partners have announced they will shift their cloud business more towards an approach from the traditional server rental and also the subscription model.

Speaker #3: Now Can The first question is that some of our peer cloud service partners have announced they will ship their cloud business more towards the mass approach from the traditional server rental and also the subscription model will adopt a similar strategy .

Wenting Yu: Will CASEY adopt a similar strategy? How do you view the impact of this trend on industry competition and long-term profit margin? The second question is regarding the impact from the backend Volcano Engine. It is adopting a relatively low price strategy. How to view the impact on the industry and also on potentially our business this year? Thank you.

Speaker #3: And how do you view the impact of this trend on industry competition and long term profit margins ? And the second question is regarding the impact from the volcano engine .

Speaker #3: It is adopting a relatively low price strategy. And how do we view the impact on the industry and also on potentially our business this year?

Speaker #3: Thank you

Zou Tao: 我先回答一下，等下看刘涛他们补充。其实你讲的第一个，就是我也关注到了其他的一些厂商比我们更早地发布财报，确实谈了很多租赁向MaaS。但我觉得这个不是一个什么新鲜的提法，这本身就是大模型发展的一个趋势吧。从刚开始训练，对吧，就没有，然后随着这几年训练这个模型能力的增强，尤其是这个各种应用的出现，就是它真的在一个具体场景下，大家体会到了它本身带来的实际价值，或者实际的作用吧。所以呢，就是当然也随着模型这个训练，它一方面会持续不断地迭代，但基本上达到了一个可用的阶段嘛，它自然就会从训练阶段进入到这个应用阶段。所以呢，这种MaaS服务的这个model能力的这种，也是一个顺势而为的过程。从这点上讲呢，我们从去年就九月份测试吧，十月份正式推出了StarFlow平台，其实也是如此，只是我们接着，因为我们是作为中立云厂商，反正是这个能接的这个model我们都能接进来，实际上这也是我们史上增速最快的一块业务。所以，我是觉得这个不是某家厂商的特殊形态了，我觉得大家都会往这边走，包括刚才谈到的那个上一个问题，小米模型虽然它逐渐成熟，它也要转换成具体的这个不同场景去应用，它也是一种，就像用户对外为他输出的这个模型能力，也是一个MaaS服务。所以我简单讲就是说这本身就是大模型时代发展一个顺势而为的行为。就我们，当然我们现在一方面，依然为我们的一些训练客户保驾护航，进行这个模型的训练服务，其实某种程度我们也在帮他们做MaaS服务，服务他们的MaaS服务，就是说我们自己也有我们自己的对外输出的MaaS服务。第二个说实话，我觉得实事求是地讲，我倒没太关注Volcano Engine最近说又要搞低价这个策略，但你既然问到，实际上我认为，这个现在是一个行业需求的爆发期，资源又是一个匮乏期，实际上这个所谓的低价策略我觉得没办法去落实和执行。这个我也不认为会成为一个行业的普遍现象。反正我更关注到的是阿里涨幅从到30%不等吧。反正其实是应该说自从做云以来，我所了解的阿里第一次这个涨价。你想想过去我们一起共同这个作为友商，一起成长了十几年，我是觉得这个现在需求急剧喷发式的需求，加上这个资源本身的紧缺性，所以我不认为这个会是一个真实落地的一个情况。当然这个刘涛可能更了解细节，可以补充一下。

Speaker #4: For Your Can Great Massive I Ali I Mean

Liu Tao: 好像这个价格，这个我补充两句啊。

Zou Tao: Right.

Liu Tao: 就是官方的列表价的调整可能只是一个宣传形式，它可能面向的是C端的这种小型客户，但实际上的成交价，我们观察到的行业里的，不管是哪一家厂商，在最终成交价上肯定都是有收敛的。所以我觉得可能这个降价或者是低价竞争可能更多是一个宣传性质的工作。

Zou Tao: Okay. Regarding your question on the shifting to Model as a Service strategy. We have noted some of the other peer companies who released their results earlier than us mentioning this. However, my view is that this is not actually some new concept. It is actually one of the inevitable stage of the development of AI as well as large language model. From the training that we do to create them to a certain phase that they become applicable and workable in our day-to-day work and life. In relation to our own inference-related Model as a Service work, we actually launched the StarFlow platform as we mentioned in the prepared remarks last year.

Speaker #1: Okay. So regarding your question on the shifting to models service strategy, we have noted some of the other peer companies who...

Speaker #1: Their results earlier than us mentioning this . However , my view is that this is not actually some new concept . It is actually one of the inevitable stage of the development of AI as well as large language models .

Speaker #1: From the training that we do to create them, to a certain phase where they become applicable and workable in our day-to-day work and life.

Speaker #1: So in relation to our own inference related work model to service , work , we actually launched the star platform . As we mentioned in the prepared remarks last year , and because we are a neutral platform , we were able to host essentially all of the open source models , including also the model coming from Xiaomi to provide model as a service business , where this is essentially actually the fastest , the fastest growing business in the history of the company actually .

Zou Tao: Because we are a neutral platform, we were able to host essentially all of the open source models, including also the model coming from Xiaomi to provide model as a service business. This is essentially actually the fastest growing business in the history of the company. Actually, we talked about the Xiaomi MiMo model earlier. The way that we're providing services for Xiaomi MiMo model is also model as a service business. Also, for some of the large language model customers that we used to and we're still providing training services to them, we also provide model as a service business to them as well to cater to their inference needs.

Speaker #1: So we talked about Xiaomi Mimo model earlier . The way that we providing services for Xiaomi Mimo model is also a model as a service business .

Speaker #1: And also for some of the large language model customers that we use to , and we're still providing training services to them . We also provide moderator services , business to them as well to , to cater to their inference needs .

Zou Tao: Now to the second question about the price change for Volcano Engine. I haven't really, you know, noticed that particular piece of news. However, the general market dynamics today is that on one hand, we're seeing explosive growth on the demand side, and we're seeing a particularly high price hiking from the supply chain side. I do not personally think that under such circumstances, changing price to a lower level would actually be implementable and applicable in the real world. Now, what I have focused more is the price hiking information from, for example, Alibaba Cloud. We have worked with them together.

Speaker #1: Now , as for the second question about the , the price change for volcano engine , I haven't really , you know , noticed that particular piece of news .

Speaker #1: However, the general market dynamics today are that, on one hand, we're seeing explosive growth on the demand side, and we're seeing particularly high price hikes from the supply chain side.

Speaker #1: So I do not personally think that under such circumstances , changing , changing price to a lower level would actually be implemented , implementable , and applicable in , in the real world .

Speaker #1: Now , what I have , what I have focused more is the price . Hiking information from , for example , Alicloud . We have worked with them together .

Zou Tao: We have been in the industry together for many years, and this is the first time that we've seen them hiking their price. Also an addition from our SVP, Mr. Liu Tao, is that there is a difference between the catalog price, and the actual price that the companies that us as cloud players and our customers engage into. The change in catalog price is more of a marketing kind of purpose. It does not necessarily mean the actual price that companies enter into business with. Thank you.

Speaker #1: We have been in the industry together for many years . And this is the first time that we've seen them hiking their price .

Speaker #1: And also and addition from our SVP , Mr. Liu Tao , is that there is a difference between the catalog price and the actual price that the companies that that assets , cloud players and our customers engage into .

Speaker #1: So the change in catalog price is more of a marketing kind of purpose . And it does not necessarily mean the actual price that companies enter into business .

Speaker #1: Thank you

Operator: Thank you. Our next question comes from the line of Timothy Zhao from Goldman Sachs. Please go ahead. Your line is open.

Speaker #2: Thank you. Our next question comes from the line of Timothy Zhao from Goldman Sachs. Please go ahead, your line is open.

Timothy Zhao: Uh,

Speaker #6: EBITDA op R1 Do you Woman . Do you Face the AI shortage You and should the Xiaomi . AI and the . The PD Thank you for taking my question and My first question is on your financial outlook .

Timothy Zhao: Thank you, Matthew, for taking my question. My first question is on your financial outlook. Just wondering if you can share some color on how we should think about the revenue, EBITDA, operating profit growth outlook for this year. Also on the capital expenditure plan, what is your thoughts and concerns, the balance sheet and also the prepayment from certain customers? Do you think it's possible to further raise your CapEx plan given the rising AI demand? Secondly, regarding the third party revenue in the AI outlook. Just wondering if you can share more detailed color on what specific product or what type of customers are driving this third party AI growth.

Speaker #6: Just wondering if you can share some color on how we should think about the revenue, EBITDA, and operating profit growth outlook for this year, and also on the capital expenditure plan.

Speaker #6: What are your thoughts, and considering the balance sheet and also the payment from certain customers, do you think it's possible to further raise your capacity plan given the rising AI demand?

Speaker #6: And secondly , is with regarding the the third party revenue in the AI outlook , I just wondering if you can share more detail color on your on what specific portal or what type of customers are driving the third party AI growth ?

Zou Tao: What is the breakdown and outlook between the mix of AI training versus AI inferences? Thank you.

Timothy Zhao: What is the breakdown and outlook between the mix of AI training versus AI inferences? Thank you.

Speaker #6: And also, what is the breakdown and outlook between the mix of AI training versus AI inferences? Thank you.

Li Yi: All right. I will take the CapEx first. For 2026, we expect total CapEx and controlled asset to exceed RMB 10 billion, representing expansion from 2025 level. From this structure, we expect approximately half our CapEx is targeted to be covered by customer prepayment arrangement, which will significantly reduce cash funding requirements. Additionally, we plan to access more assets through short and long-term leases, with payment structure as operating cash flows to minimize up-front capital, commitments. For the funding position and financing needs, we currently have no equity finance plans. 2026 capital expenditure are secured through 4 channels. First, proceeds from our 2025 financing, and second, customer operating receipts, and third, the strategic customer prepayment, and the fourth, the committed credit facilities from banks and financial leasing institutions.

Speaker #5: All right . I will take the CapEx first for 2026 . We expect total CapEx and controlled assets to exceed 10 billion , representing expansion from 2025 level on from structure .

Speaker #5: We expect approximately half our CapEx is targeted to be covered by customer pre-payment arrangements , which will significantly reduce self-funded requirements . Additionally , we plan to access more assets through short and long term leases with payment structure as operating cash flows to minimize upfront capital incompetence for the funding presentation and financing needs , we currently have no equity financing plans .

Speaker #5: 2026 Capital expenditures are secured through for channels first , proceeds from our 2025 financing and the second custom operating receipts . And third , the strategic customer prepayments and the the fourth , the commitment created facilities from from banks and financial institutions .

Li Yi: Incremental resource requirements will be made primarily through leasing to preserve balance sheet flexibility. For the guidance for 2026, we expect our growth rate will accelerating and the EBITDA rate will improve much better in 2026 as well.

Speaker #5: Incremental resource requirements will be made primarily through listening to preserve balance sheet flexibility for the guidance for 2026. We expect our growth rate will be accelerating and the.

Speaker #5: The beta , the beta rate will improve much better in 2026 as well

Speaker #4: With The In Xiaomi Xiaomi

Zou Tao: If you look at the past results, as discussed in the prepared remarks, for the top five non-ecosystem customers combined revenue, for year-over-year basis, revenue growth was 44%, which is really strong growth. Those would include internet companies, autonomous driving, and robotics. In terms of looking forward into the year of 2026, we do see extremely large demand coming from outside of the ecosystem. To some extent that such demand is actually higher than the demand from our ecosystem. The final revenue or financial results coming from that demand will actually be dependent on how much resources we're able to secure and to deliver to such customers.

Speaker #1: So if you look at the . The . The past results as described as discussed in the prepared remarks , the . For the top five non ecosystem customers combined revenue for year over year basis .

Speaker #1: Revenue growth . Was 44% , which is really strong growth . So those would include internet companies , autonomous driving and robotics . And then in terms of looking forward into the year of 2026 , we do see extremely large demand coming from outside of the ecosystem to and to some extent , that such demand is actually higher than the demand from our our ecosystem .

Speaker #1: So the final revenue or financial results coming from that demand will actually be determined on, will actually be dependent on, how much resources we're able to secure and to deliver to such customers.

Zou Tao: Now, from the perspective of products and solutions, we're actually seeing more than half of the potential demand coming in for inference versus training. Then, for the StarFlow platform, which we discussed earlier, it's growing really fast for that business, and we're seeing better profit margin coming from that particular business. This is a result, of course, from the very good application and increasing penetration for agents and cloud applications. Thank you.

Speaker #1: Now , from the perspective of products and solutions , we have , we're actually seeing more than half of the potential demand coming in for inference versus training .

Speaker #1: And then for the staff platform , which we discussed earlier , it's growing really fast for that business . And we're seeing better profit margin coming from that particular business .

Speaker #1: And this is a result , of course , from the very good application , very good application . And increasing penetration for agents and and claw applications .

Speaker #1: Thank you

Li Yi: Just due to time constraints, this concludes our Q&A session. Thank you once again for joining us today. If you have any other questions, please feel free to contact us. Look forward to speaking with you again next quarter. Have a nice day. Thank you, all.

Nicole Shan: Just due to time constraints, this concludes our Q&A session. Thank you once again for joining us today. If you have any other questions, please feel free to contact us. Look forward to speaking with you again next quarter. Have a nice day. Thank you, all.

Speaker #5: Yes . Due to time constraints , concludes our Q&A session . Thank you once again for joining us today . If you have any other questions , please feel free to contact us .

Speaker #5: We look forward to speaking with you again next quarter. Hello. Thank you all.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.

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