Kingsoft Cloud Holdings Limited (3896.HK, NASDAQ: KC) announced revisions to certain annual caps under the 2024 Kingsoft Framework Agreement with Kingsoft Corporation (3888.HK). The changes focus on comprehensive property services and property lease services for the years 2026 and 2027, driven by increasing leasing demands related to the company’s future business plans and administrative needs.

According to the revised terms, the annual cap for comprehensive property service fees will increase from RMB17.90 million to RMB28.10 million for 2026, and from RMB18.90 million to RMB29.30 million for 2027. The maximum value of right-of-use assets for property leases will rise from RMB5.10 million to RMB65.60 million for 2026, and from RMB5.50 million to RMB66.10 million for 2027. Other annual caps set out in the 2024 Kingsoft Framework Agreement for 2026 and 2027 remain unchanged.

Based on the company’s latest disclosure, the transactions fall under Chapter 14A of the Hong Kong Listing Rules. Given the highest applicable percentage ratios exceed 0.1% but are below 5%, they are subject to reporting, announcement, and annual review requirements, but exempt from independent shareholders’ approval. The board confirms that from January 1, 2026 to the date of the announcement, the actual amounts for these property-related services have not exceeded the original annual caps.

The agreement runs from January 1, 2025 to December 31, 2027. Kingsoft Cloud believes that securing these services from Kingsoft Group leverages existing resources and infrastructure, ensuring stable support aligned with prevailing market rates. Company records also note the centralized leasing structure, in which Kingsoft Corporation sub-leases certain locations to Kingsoft Cloud, to be recognized as right-of-use assets in the financial statements. The announcement is dated March 1, 2026.