On June 18, Kingsoft Cloud fell 5.13% in regular trading, trading at 5.18 HKD/share, with turnover of 3.1 billion HKD. The decline was primarily driven by the overnight weakness in its US-listed ADR, which fell 5.20% to $10.75, prompting follow-through selling in Hong Kong.

The broader Internet Services and Infrastructure sector declined in tandem, with GDS-SW down 3.02%, Cloud Factory down 4.0%, Crypto Flow down 2.8%, Sunevision down 0.77%, and Nexion Tech down 2.63%, amplifying the individual stock decline through sector linkage.

On the fundamental side, Kingsoft Cloud reported Q1 net loss widening to RMB 3.44 billion, up 8.7% year-over-year, while adjusted gross margin contracted sharply from 17.1% in the prior quarter to 13.0%, as AI infrastructure expansion drove server depreciation costs up 116.4% year-over-year. The margin compression from accelerated capital deployment into smart computing cloud services remains under digestion despite the company announcing AI compute product price hikes of 15%-50% effective July 12.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)