KINGSOFT CLOUD (KC.US, 03896.HK), which has quadrupled in value in the past six months, has once again secured financing, demonstrating confidence in its long-term development.

Today, KINGSOFT CLOUD (KC.US, 03896.HK) announced the issuance of 18,500,000 American Depositary Shares (ADS), with each ADS representing 15 ordinary shares of the company. At the same time, KINGSOFT CLOUD granted the underwriters of the ADS the option to purchase additional American Depositary Shares within 30 days. To facilitate investors in both the Hong Kong and American stock markets to subscribe, investors can choose to trade ordinary shares instead of ADS on the Hong Kong Stock Exchange in this issuance. The announcement stated that the proceeds from this ADS issuance by KINGSOFT CLOUD are planned to be used for investing in upgrading and expanding infrastructure, investing in technology and product development, and for general corporate and operational purposes. With over a decade of dedication to cloud computing, KINGSOFT CLOUD has established a unique position in the industry and a first-mover advantage in technology services. As a result, in 2024, KINGSOFT CLOUD has shown strong business performance, with total revenue growing by over 10% year-on-year, and a healthy revenue mix, with AI billing revenue accounting for 34% of public cloud revenue in Q4, a nearly 500% year-on-year growth, surpassing industry standards. KINGSOFT CLOUD's high-quality sustainable development strategy has achieved significant progress, with annual gross profit margin increasing by over 5 percentage points year-on-year. The adjusted operating profit margin turned positive for the first time in Q4. This lays a solid foundation for the continuous improvement of profitability in the future. This financing has received support from strategic shareholders, as in addition to the aforementioned number of shares issued, KINGSOFT Group will subscribe for an additional 20% of the total issuance scale (public offering portion + KINGSOFT Group subscription portion). This not only demonstrates the support of the ecological enterprise for the company's business development but also shows the shareholders' confidence in the long-term development of KINGSOFT CLOUD. This financing will enhance KINGSOFT CLOUD's financial strength, improve its capital structure, and help the company better seize growth opportunities. Guided by a strategy of high-quality sustainable development, the business fundamentals of KINGSOFT CLOUD have been comprehensively improved, and the business has entered a new development cycle. Following this transaction, KINGSOFT CLOUD will continue to focus on high-quality business growth and continuously create value for existing and new shareholders.