Kingsoft Cloud Holdings Limited

Good day and thank you for standing by. Welcome to Kingsoft Cloud's fourth quarter and full year 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 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 1 and 1 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 Director of Kingsoft Cloud. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us today. Kingsoft Cloud's first quarter and fiscal year 2024 earnings release was distributed earlier today and is available on our IR website at ir.ksyun.com, as well as on Global Newswire Services. On the call today from Kingsoft Cloud, we have our Vice Chairman and CEO, Mr. Zhou Tao, and the CFO, Mr. Henry He. Mr. Zhou will review our business strategies, operations, and the company highlights, followed by Mr. He, who will discuss the financials and the guidance. He will be available to answer your question during the Q&A session that follows There will be consecutive interpellations. Our interpellations 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 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 maturely from those in the forward-looking statements. Information regarding this 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 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 not made in RMB. It's now my pleasure to introduce our Vice Chairman and CEO, Mr. Zou. Please go ahead.

Hello, everyone. Welcome to the 4th quarter of the year of Jin Xiangyun. I'm Jin Xiangyun's CEO, Zhou Tao. In this quarter, our high-quality sustainable development strategy continues to produce results. After adjustment, business profits are twisted for the first time. A series of financial indicators have set a new record. First, Our revenue increase is on the ladder On the basis of the same growth of 16% in Q3 This quarter achieved a revenue of RMB 22.3 billion The same increase has reached 30% in the retail industry Among them, the public cloud increased by 34% The industry cloud increased by 23% to achieve a balanced development of two-person driving. Secondly, our profit and loss level has increased rapidly. In this quarter, we have achieved an increase in revenue and profit. The company has turned a turn in the long-term loss of business in history. The net profit and profit target has increased. After adjustment, the net profit and profit achieved profit for the first time. After adjustment, the operating profit rate is 1.1%. Compared to the loss of the same period last year, 10.9% increased by 12%. After adjustment, the net profit amount reached RMB 4.3 billion, which is a new high in history. The same amount increased by 63%. After adjustment, the net profit amount reached 19.2%. After adjustment, The EBITDA rate has also reached a new high of 16% of high double digits. The same ratio has increased by 17.7%. The ratio has increased by 6.3%. This is our increase in income quality, adjust the income structure, implement the discount effect, multiple mistakes, and the happy results achieved. Third, We continue to use AI to lead the transformation. This quarter, the income of the AI business is up to 4.7 billion yuan, which is nearly 500% of the total growth, and 31% of the net growth, and the net income ratio continues to increase to 34%. Fourth, as Xiaomi Jinshan Ecosystem, We are the only strategic cloud platform. We continue to fully embrace Xiaomi Jinshan Ecology's business opportunities in the era of AI. We are proud of the historical opportunities such as Xiaomi cars, mobile phones, IoT, smart manufacturing, and Datas AI. This quarter, Xiaomi and Jinshan Ecology's revenue reached 4.93 billion yuan, which is 76% of the total growth. Hello, everyone.