Kingsoft Cloud FY2025: Revenue Climbs 22.8% to RMB 9.56 Billion, Net Loss Halved; Cash Balance Doubles on Robust Capital Raises

Bulletin Express03-25

Kingsoft Cloud (Kingsoft Cloud Holdings Limited) reported unaudited full-year 2025 results showing solid top-line expansion, narrowing losses and strengthened liquidity. The figures are prepared under U.S. GAAP.

Revenue and Segment Mix • Total revenue advanced 22.8 % year on year to RMB 9.56 billion, propelled by AI-driven demand. • Public-cloud services contributed RMB 6.63 billion, up 32.5 %, now accounting for 69 % of group revenue. • Enterprise-cloud services grew 5.3 % to RMB 2.93 billion.

Profitability • Gross profit increased 12.1 % to RMB 1.50 billion; gross margin slipped to 15.7 % from 17.2 % on higher depreciation of new AI infrastructure. • Operating loss narrowed 55.6 % to RMB 0.77 billion. • Net loss was reduced by 52.3 % to RMB 0.94 billion; net-loss margin improved to 9.9 % from 25.4 %. • On a non-GAAP basis, EBITDA surged to RMB 2.34 billion (margin 24.4 %), versus RMB 0.64 billion a year earlier.

Cash Flow and Balance Sheet • Operating cash inflow reached RMB 3.80 billion. • Cash and cash equivalents rose 127.2 % to RMB 6.02 billion, supported by April and October equity offerings and a June private placement that collectively generated roughly USD 279.0 million and HKD 2.76 billion, respectively. • Capital expenditure totaled RMB 4.99 billion, up 21.1 %, reflecting intensified investment in intelligent-computing capacity. • Gearing ratio decreased to 65.2 % from 68.7 %.

Cost Structure • Cost of revenues rose 25.0 % to RMB 8.06 billion, driven mainly by a 113.1 % jump in depreciation and amortization to RMB 2.32 billion and higher solution-service expenses. • Selling and marketing, general & administrative, and R&D expenses totaled RMB 2.28 billion, 4.4 % lower than 2024, aided by reduced impairment charges and tight cost control.

Operational Highlights • Infrastructure scaled to about 101,500 servers and exabyte-level storage across China. • Launch of the Starsflow AI training and inference platform positioned the company for growing “agentic AI” workloads. • Headcount stood at 15,225, with R&D personnel representing 7.4 % of the workforce.

Capital and Governance Developments • The board proposes amendments to the Articles of Association to align with Hong Kong Stock Exchange Core Shareholder Protection Standards, enabling virtual shareholder meetings and other housekeeping updates. • No final dividend was declared for FY2025.

Outlook Management reiterated its strategy of focusing on intelligent cloud computing, cost efficiency and collaboration within the Xiaomi and Kingsoft ecosystems to capture AI-led market expansion.

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