HK Stock Market Move | KINGSOFT CLOUD (03896) rose more than 18% during trading; Xiaomi's first large-scale reasoning model is open source, and the company is the core cloud factory for Xiaomi Kingsoft ecosystem.

KINGSOFT CLOUD (03896) rose more than 18% during the trading day, reaching a 14.81% increase at the time of publication, with a price of HK $7.44 and a trading volume of HK $2.208 billion. On the news front, on April 30, Xiaomi launched an open-source large model MiMo focused on reasoning ability, surpassing OpenAI's closed-source model o1-mini and Alibaba's QwQ with a scale of 32B in mathematical reasoning and code competition evaluation with only a 7B parameter scale. This model aims to break through the potential bottlenecks of existing pre-training models through technological innovation, deeply stimulating AI's thinking and problem-solving abilities. Shenwan Hongyuan Group previously pointed out that KINGSOFT CLOUD is the core cloud factory for Xiaomi and Kingsoft's ecosystem, directly benefiting from the increased AI investment from Xiaomi and Kingsoft Group. KINGSOFT CLOUD's revenue from Xiaomi and Kingsoft Group in Q4 24 increased by 76% year-on-year. KINGSOFT CLOUD renewed a strategic framework agreement with Xiaomi and Kingsoft Group by the end of 24, with a total annual cloud service limit of 28/37/48 billion yuan for 25-27, with year-on-year growth of 41%/35%/29%, ensuring the company's revenue growth foundation; in addition, KINGSOFT CLOUD signed a financing service framework with Xiaomi to ensure capital expenditure. Xiaomi has established a full ecosystem of people, cars, and homes, with clear new growth curves in the mobile, IoT, and automotive businesses, actively investing in smart driving, and a clear increase in AI demand.