Kingsoft Cloud Holdings Limited

Good day and thank you for standing by. Welcome to Kingsoft Cloud's second quarter 2023 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 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, IR Manager. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us today. Kingstop Cloud's second quarter of news release was distributed earlier today and is available on our IR website at ir.psu.com, as well as on global newswire services. On the call today from Kinsoft Cloud, we have our Vice Chairman and CEO, Mr. Tao Zou, and the CFO, Mr. Henry He. Mr. Zou will review our business strategy, operations, and company highlights, followed by Mr. He, who will discuss the financials and the guidance. They will be available to answer a question during the Q&A session that follows. There will be consecutive for your convenience and the reference purpose only. In case of any discrepancy, management statement in the original language will prevail. Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934, as amended and as defined in the U.S. Private Security 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, 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 filing with the U.S. 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. Finally, please note that unless otherwise stated, all financial figures mentioned during this conference call are denominated in RFP. It's now my pleasure to introduce our Vice Chairman and CEO, Mr. Zhou. Hello, everyone.

Welcome to the 2nd quarter of the business phone conference of Jinshan Yun. The company continues to uphold the principle of high-quality sustainable development, insist on technical success, and build the whole process of reputation with the customer as the center, strengthen business management, and actively embrace the new era of AI. This quarter, Jinshan Yun has achieved a further improvement in profitability, with a revenue of 18.4 billion yuan, and a net profit of 11.3% after adjustment. It has achieved a steady increase of 4 consecutive seasons, creating a new height in history. After adjustment, the net profit reached RMB2.07 billion, which is more than three times that of the same period last year. The EBITDA rate after regularization is negative 3.3%, which is roughly 5.3% as of the same period last year, and 2.6% as of the previous season.