Kingsoft Cloud Holdings Limited

Good day and thank you for standing by. Welcome to the Kingsoft Cloud second quarter 2024 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 1 and 1 on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question please press star 1 and 1 again. please be advised today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Nicole Shan, IR Director of Kingsoft Cloud. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us today. Kingsoft Cloud second quarter 2024 earnings release was distributed earlier today and is available on our IR website at ir.ksyun.com, as well as on global newsware services. On the call today from Kingsoft Cloud, we have our Vice Chairman and the CEO, Mr. Zhou Tao, and the CFO, Mr. Henry Hou. Mr. Zhou will review our business strategy, operations, and the company highlights, followed by Mr. Hou, who will discuss the financials and the guidance. They will be available to answer your questions during the Q&A session that follows. There will be consecutive interperations. Our interperations are for your convenience and reference purpose only. In case of any discrepancy, management statement 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 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 marketing and operating conditions. and relate to UN standing on 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 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. It's now my pleasure to introduce our Vice Chairman and the CEO, Mr. Zhou. Please go ahead. Thank you.

Hello, everyone. from the first one to 17% or more. The EBITDA rate went up to 3%. The net profit and net profit went up steadily. Next, the opportunity to embrace AI machines rapidly. The AI business of newcomers and public employees increased from 0% to 26% The industry is leading the way. The third. Stable and clear low-profit business. Today's business accounted for 40% of it, down to about 20%. A single large client. Concentrated risk is solved fundamentally. The fourth. Detailed management of procurement, asset and operation. The cost of the quarter has dropped nearly 300 million yuan, accounting for 15% of it. Fifth, in the long run, the Wuhan Research and Development Center quickly rose to account for about 30% of the total number of employees in the company, and laid the foundation for the company's long-term technical achievements, completing the Hong Kong double-seed main listing, entering the Hengsheng, Zhongzi and Hong Kong stock market, and supporting the basic facilities of the capital market. These are all further high-quality and sustainable development has set the foundation. I would like to express my sincere gratitude to all the long-term care and support of our clients, shareholders, and employees.