Kingsoft Cloud (Kingsoft Cloud Holdings Limited) released its unaudited interim results for the six months ended 30 June 2026, highlighting significant top-line expansion driven by AI-related demand and improved cost discipline.

Revenue and Segment Performance • Total revenue rose 33.7% year-on-year (YoY) to RMB 5.78 billion (USD 0.85 billion). • Public cloud services contributed RMB 4.35 billion, up 46.2% YoY, buoyed by growing AI-cloud workloads. • Enterprise cloud services delivered RMB 1.42 billion, a 6.1% YoY increase on stronger project momentum.

Profitability and Margins • Gross profit advanced 23.6% to RMB 0.81 billion; gross margin softened to 14.1% from 15.2% due to higher depreciation on new servers and network gear. • Operating loss contracted to RMB 0.14 billion from RMB 0.56 billion a year earlier as total operating expenses fell 21.6% to RMB 0.96 billion. • Net loss narrowed 43.5% to RMB 0.44 billion, improving the net loss margin to –7.6% (H1 2025: –17.9%).

Non-GAAP Metrics • Adjusted gross profit increased 21.4% to RMB 0.82 billion; adjusted gross margin slipped to 14.3% (H1 2025: 15.7%). • Adjusted EBITDA surged 155.0% to RMB 1.85 billion, lifting the margin to 32.0% from 16.8%. • Adjusted net loss shrank to RMB 0.30 billion, translating to a –5.1% margin (H1 2025: –11.4%). • Adjusted operating profit swung to positive RMB 64.14 million from a RMB 222.19 million loss.

Cash Flow and Balance Sheet • Operating activities generated RMB 3.38 billion in cash (H1 2025: RMB 1.04 billion). • Capital expenditures and leased assets totaled RMB 6.24 billion, up from RMB 4.95 billion a year earlier, reflecting continued infrastructure expansion for AI capacity. • Cash and cash equivalents stood at RMB 4.67 billion (USD 0.69 billion) as of 30 June 2026, down 22.3% from year-end 2025. • Gearing ratio (total liabilities/total assets) increased to 71.0% from 65.2% at end-2025.

Operational Highlights • Infrastructure scaled to two self-owned data centres and about 102,900 servers, achieving exabyte-level storage. • R&D investment reached RMB 0.38 billion; headcount totaled 14,394, with 8% in R&D. • Product upgrades included expanded StarFlow Platform capabilities, new AI agent development tools, and an integrated Galaxy Stack Platform for private AI clouds.

Governance and Other Matters • No interim dividend declared. • No material acquisitions, disposals, litigation, or contingent liabilities reported during the period. • Audit Committee reviewed the interim results; the company acknowledges a combined Chairman and acting CEO role for continuity.

Outlook Management will maintain its focus on high-quality, sustainable growth, scaling AI-driven cloud services, leveraging the Xiaomi and Kingsoft ecosystems, and optimizing resource efficiency to further enhance profitability.