Kingsoft Cloud Holdings Limited

Good day and thank you for standing by. Welcome to the Kings of Clouds fourth quarter and fiscal year 2020 free earnings conference call or webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please note that today's conference is being recorded. I would now like to turn the conference over to Nicole Shan, IR Manager of Kings of Cloud. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us today. Kings of Cloud's fourth quarter and fiscal year 2023 earnings release was distributed earlier today and is available on our IR website at ir.ksyun.com, as well as our global newsware services. On the call today from Kingsoft Cloud, we have our Vice Chairman and CEO, Mr. Zhou Tao, and CFO, Mr. Hongrui He. Mr. Zhou will review our business strategies, operations, and company highlights, followed by Mr. He, who will discuss the financials and the guidance. They will be available to answer your question during the Q&A session that follows. There will be consecutive interpretations. Our interpretations are for your convenience and reference purpose only. In case of any discrepancies, management statements in the original language will prevail. 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 demanded and as defined in the U.S. Private Security Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and current market and operating conditions. and related to U.S. study 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 maturely 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. The company does not entertain any obligation to update any forward-looking statements. as a result of new information, future events, or otherwise, except for required under applicable law. Finally, please note that, unlike otherwise stated, all financial figures mentioned during this conference call are denominated in RMB. It's now my pleasure to introduce our Vice Chairman and CEO, Mr. Zhou. Please go ahead, Zhou Zhou.

Hello, everyone. Welcome to the 4th quarter of 2023 and the full-year business call conference. In 2023, it is a year in which the principles of comprehensive observation of high-performance sustainable development are achieved. In the whole year of 2023, after adjustment, the net profit rate reached 12.2%, which is 5.4% in 2022, which significantly increased by 6.8%. After adjustment, the net profit amount reached RMB 8.6 billion, which is almost half of the 4.5 billion in 2022. After normalization, the return rate is negative 3.4%, which is negative 8.9% in 2022. Over the past year, we have insisted on technical success, mouthpiece as king, management as steel, and good internal work, strategic adjustment of business structure, and positive embrace of the new AI era. For the future and in 2024,