Kingsoft Cloud Holdings Limited (KC) Q3 2025 Earnings Call Transcript
Total Revenue RMB 2.48 billion, a year-over-year growth of 31% (up from 24% in the previous quarter). Growth attributed to both public cloud and enterprise cloud achieving year-over-year and sequential growth.
Public Cloud Revenue RMB 1.75 billion, a year-over-year increase of 49%. Growth driven by strong demand for intelligent computing cloud services and AI-related developments.
Intelligent Computing Cloud Gross Billings RMB 782 million, a year-over-year growth of 120%. Growth attributed to increased demand for AI-driven intelligent computing services.
Revenue from Xiaomi and Kingsoft Ecosystem RMB 691 million, an 84% year-over-year increase. Growth due to strengthened business cooperation and increased demand within the ecosystem.
Adjusted Gross Profit RMB 393 million, a year-over-year increase of 28%. Growth due to revenue scale expansion, increased contribution from intelligent cloud, and cost control measures.
Adjusted Operating Profit RMB 15.36 million, turning from a loss to profit. Improvement attributed to revenue growth, gross profit expansion, and expense control.
Adjusted Net Profit RMB 28.73 million, achieving a historical positive profit for the first time. Improvement due to economies of scale and cost control.
Adjusted Gross Margin 16%, up from 15% in the previous quarter. Improvement due to revenue scale expansion and cost control.
Adjusted EBITDA Margin 33%, up from 17% in the previous quarter. Improvement due to strong execution in intelligent cloud development and cost control.
Cash and Cash Equivalents RMB 3.95 billion, decreased from RMB 5.46 billion in the previous quarter. Decrease due to infrastructure investment for intelligent cloud.
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Kingsoft Cloud Holdings' Individual Investors Own 50% Stake
- Shareholder Structure: Kingsoft Cloud Holdings' top 25 shareholders collectively own 49% of the company, with individual investors holding a significant 50% stake, indicating their substantial influence on key decisions that may affect future shareholder returns.
- Role of Institutional Investors: While institutional investors hold a fair stake in Kingsoft Cloud, the lack of a growth history raises concerns about potential 'crowded trades', which could lead to rapid sell-offs during market volatility.
- Insider Ownership: Insiders own less than 1% of Kingsoft Cloud Holdings, suggesting that management lacks sufficient control over company decisions, which could impact governance and strategic direction.
- Public Ownership Proportion: Public investors, including retail investors, own 50% of Kingsoft Cloud Holdings, granting them significant voting power on major decisions such as dividend policies and board appointments.
