Financial Performance - Total revenue for the six months ended June 30, 2023, was RMB 3,699.8 million, a decrease of 9.3% compared to RMB 4,080.3 million in the same period of 2022[2]. - Gross profit for the same period was RMB 400.8 million, representing a significant increase of 176.1% from RMB 145.2 million year-over-year, with a gross margin of 10.8% compared to 3.6% in 2022[2][6]. - Adjusted EBITDA loss for the six months ended June 30, 2023, was RMB 191.9 million, a reduction of 37.7% from RMB 307.9 million in the prior year[6]. - The net loss attributable to Kingsoft Cloud Holdings Limited for the six months ended June 30, 2023, was RMB 1,356.2 million, down 18.4% from RMB 1,106.3 million in the same period of 2022[2]. - The adjusted net loss for the six months ended June 30, 2023, was RMB 727.4 million, compared to RMB 910.6 million in the same period of 2022[5]. - The company reported a net loss margin of -29.9% for the six months ended June 30, 2023, compared to -33.5% in the prior year[5]. - The adjusted EBITDA margin improved to -5.2% for the six months ended June 30, 2023, from -7.5% in the same period of 2022[5]. - Operating loss for the six months ended June 30, 2023, was RMB 1,361,773 thousand, compared to an operating loss of RMB 1,230,030 thousand for the same period in 2022[31]. - Operating loss was RMB 961.0 million (USD 132.5 million), an improvement from RMB 1,084.9 million in the same period of 2022, while net loss decreased to RMB 1,107.1 million (USD 152.7 million) from RMB 1,365.3 million[17]. Revenue Breakdown - Public cloud service revenue was RMB 2,313.2 million, while industry cloud service revenue was RMB 1,385.2 million for the reporting period[6]. - Public cloud services revenue was RMB 2,313.2 million, down from RMB 2,669.9 million year-over-year, representing a decline of 13.4%[12]. - Revenue from public cloud services decreased by 13.4% year-on-year to RMB 2,313.2 million (USD 319.0 million) from RMB 2,670.0 million in the same period of 2022, mainly due to the reduction of CDN services[15]. - Total revenue reached RMB 3,699.8 million (USD 510.2 million), a decrease of 9.3% compared to RMB 4,080.3 million in the same period of 2022, primarily due to the active reduction of services provided to CDN customers and the elimination of unprofitable customers[15]. Cost and Expenses - Research and development expenses for the first half of 2023 were RMB 409.3 million (approximately USD 56.4 million), compared to RMB 467.6 million in the same period of 2022, reflecting a decrease of 12.4%[10]. - Operating expenses totaled RMB 1,361.8 million (USD 187.8 million), an increase from RMB 1,230.0 million in the same period of 2022, with R&D expenses decreasing to RMB 409.3 million (USD 56.4 million) from RMB 467.6 million[17]. Cash and Liquidity - Cash and cash equivalents amounted to RMB 3,708.7 million (USD 511.5 million) as of June 30, 2023, representing an increase of 8.5% from RMB 3,419.2 million as of December 31, 2022[18]. - The company’s cash and cash equivalents at the end of the period were RMB 3,823,087, an increase of 37.6% from RMB 2,776,770[36]. - Net cash used in operating activities improved to RMB (206,157) from RMB (282,401), a reduction of 27%[36]. - The company reported a net cash inflow from investing activities of RMB 576,486, a significant turnaround from RMB (1,257,570) in the previous period[36]. Employee and R&D Development - The company has approximately 101,000 servers and achieved EB-level storage capacity as of June 30, 2023[9]. - The Wuhan R&D center has grown to about 400 employees, accounting for over one-third of the total R&D team, with 50% holding master's degrees[10]. - The company had 9,752 employees as of June 30, 2023, with most located in China and the remainder overseas[23]. - The company had a total of 9,752 employees, with 78.0% in solution development and services[24]. Corporate Governance and Compliance - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange during the reporting period[25]. - There were no significant litigations or arbitrations involving the company during the reporting period[26]. - The audit committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023[27]. - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2023[28]. Strategic Initiatives - The company emphasized a commitment to high-quality, sustainable development and customer-centric operations during the reporting period[6]. - The company aims to enhance profitability and maintain sustainable high-quality development in the second half of 2023[11]. - The company continues to focus on cost reduction and efficiency improvement to enhance overall profitability and long-term competitive advantage[9]. - The company launched a new version of its Galaxy Cloud, enhancing usability, compatibility, security, and intelligence for enterprise customers[9]. - The object storage product based on all-flash media improved read and write performance by approximately 100%, suitable for high-performance storage needs[9]. Financial Position - Total assets amounted to RMB 16,133,874, a decrease of 6.8% from RMB 17,316,231 on December 31, 2022[34]. - Total liabilities increased to RMB 7,845,106, up 1.5% from RMB 7,732,732[35]. - Shareholders' equity decreased to RMB 8,288,768 from RMB 9,583,499, reflecting a decline of 13.5%[35]. - The company’s accumulated losses increased to RMB (11,208,569) from RMB (10,102,236), indicating a worsening financial position[35]. - The company’s total equity attributable to shareholders decreased to RMB 7,932,983, down 10% from RMB 8,801,020[35].
金山云(03896) - 2023 - 中期业绩