UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2020

Commission file number: 001-39278

 

 

Kingsoft Cloud Holdings Limited

(Exact Name of Registrant as Specified in Its Charter)

 

 

Building E, Xiaomi Science and Technology Park, No. 33 Xierqi Middle Road,

Haidian District

Beijing, 100085, the People’s Republic of China

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

       Kingsoft Cloud Holdings Limited
Date:  

November 18, 2020

      

By:  

 

 

/s/ Haijian He

           Name:     Haijian He
           Title:     Chief Financial Officer


EXHIBIT INDEX

 

Exhibit No.    Description
99.1    Press Release
EX-99.1

Exhibit 99.1

 

Kingsoft Cloud Announces Unaudited Third Quarter 2020 Financial Results

BEIJING, CHINA, November 18, 2020 — Kingsoft Cloud Holdings Limited (“Kingsoft Cloud” or the “Company”) (NASDAQ: KC), a leading independent cloud service provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third quarter 2020 Financial Highlights

 

   

Total revenues were RMB1,728.8 million (US$1254.6 million) in the third quarter of 2020, representing an increase of 72.6% year-over-year.

 

   

Gross profit was RMB112.9 million (US$16.6 million) or 6.5% gross margin in the third quarter of 2020, compared with RMB18.7 million or 1.9% gross margin in the third quarter of 2019.

 

   

Non-GAAP gross profit2, was RMB114.8 million (US$16.9 million) or 6.6% Non-GAAP gross margin in the third quarter of 2020, compared with RMB20.6 million or 2.1% Non-GAAP gross margin in the third quarter of 2019.

 

   

Net loss was RMB105.3 million (US$15.5 million) or -6.1% net loss margin in the third quarter of 2020, compared with net loss of RMB350.6 million or net loss margin of -35.0% in the third quarter of 2019. The profitability and margin have been improving on both year-over-year and sequential basis.

 

   

Non-GAAP EBITDA3, was RMB-26.3 million (US$-3.9 million) or -1.5% Non-GAAP EBITDA margin in the third quarter of 2020, compared with RMB-102.0 million or -10.2% Non-GAAP EBITDA margin in the third quarter of 2019.

Mr. Yulin Wang, Chief Executive Officer of Kingsoft Cloud, commented, “We delivered another solid quarter of operational and financial results for the third quarter of 2020. Our total revenues increase by 72.6% year-over-year to RMB1,728.8 million. While we experienced strong demand from many existing clients, we also saw the resumption of a number of enterprise cloud projects that had been delayed due to COVID-19. In light of the ongoing digital transformation trends and the increasingly rapid roll out of enterprise cloud projects across the country, we will continue to invest in technology and expand our reach into select industries so that we can take advantage of the numerous growth opportunities around cloud computing that lie ahead.”

 

1 

This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB6.7896 to US$1.00, the noon buying rate in effect on September 30, 2020 as certified for customs purposes by the Federal Reserve Bank of New York.

2 

Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See “Reconciliation of GAAP and Non-GAAP results” set forth at the end of this press release.

3 

Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax expense and depreciation and amortization, and Non-GAAP net loss is defined as net loss excluding share-based compensation, foreign exchange (gain) loss, changes in fair value of financial instruments and other (income) expense, net. Non-GAAP EBITDA margin is defined as Non-GAAP EBITDA as a percentage of revenues. See “Reconciliation of GAAP and Non-GAAP results” set forth at the end of this press release.


Mr. Henry He, Chief Financial Officer of Kingsoft Cloud added that “We are pleased to observe accelerated year-over-year revenue growth and improving bottom line performance. Our total revenues during the quarter came in at the mid-to-top end of the previous guidance, at RMB 1,728.8 million. It represents accelerated year-over-year growth of 72.6%, which makes us one of the fastest growing major players in the industry. Enterprise cloud services revenues reached RMB409.1 million, representing an increase of 257.3% year-over-year and 66.2% sequentially. It contributed 23.7% of total revenues this quarter, compared with 11.4% in the same period last year. Our adjusted EBITDA margin increased to -1.5% this quarter from -10.2% in the same period last year, representing an improvement of 8.7 percentage points. It has now steadily improved for nine consecutive quarters.”

Third quarter 2020 Financial Results

Total Revenues reached RMB1,728.8 million (US$254.6 million), representing an increase of 72.6% from RMB1,001.8 million in the same period of 2019. The increases were primarily due to the growth in both public cloud services and enterprise cloud services for our premium customers.

 

   

Revenues from public cloud services were RMB1,309.7 million (US$192.9 million), representing an increase of 48.1% from RMB884.5 million in the same period of 2019.

 

   

Revenues from enterprise cloud services were RMB409.1 million (US$60.2 million), representing an increase of 257.3% from RMB114.5 million in the same period of 2019.

 

   

Other revenues were RMB10.0 million (US$1.5 million).

Cost of revenues was RMB1,615.9 million (US$238.0 million), representing an increase of 64.4% from RMB983.0 million in the same period of 2019, primarily attributable to the rapid growth of our business. IDC costs increased by 51.2% to RMB1,060.1 million (US$156.1 million) from 701.3 million in the same period of 2019. The increase in IDC costs was in line with the Company’s expanding business and was partially offset by improved efficiency and utilization of bandwidth. IDC costs as a percentage of total revenues decreased from 70.0% during the same period of last year to 61.3% in the third quarter of 2020. Depreciation and amortization costs remained stable at RMB156.5 million (US$23.0 million), compared with RMB153.6 million in the same period of 2019. We review the useful lives of equipment on an ongoing basis, and effective July 1, 2020 we changed our estimate of the useful life for our certain electronic equipment from three to four years. The longer useful life is due to increasing purchase of high-end equipment, continuous improvements in our software and enhancements in our capability of operation.


Gross profit was RMB112.9 million (US$16.6 million), compared to RMB18.7 million in the same period in 2019. Gross margin was 6.5%, representing an increase of 4.6 percentage points from 1.9% in the same period in 2019.

Non-GAAP gross profit was RMB114.8 million (US$16.9 million), compared to RMB20.6 million in the same period in 2019. Non-GAAP gross margin was 6.6%, representing an increase of 4.5 percentage points from 2.1% in the same period in 2019. The increase was primarily due to our continued leverage on economies of scale and the costs savings.

Selling and marketing expenses were RMB96.8 million (US$14.3 million), representing an increase of 10.9% from RMB87.3 million in the same period in 2019, mainly due to the increase in share-based compensation expenses, as well as the salaries and welfare of selling and marketing personnel.

General and administrative expenses were RMB91.3 million (US$13.5 million), an increase of 64.5% from RMB55.5 million in the same period in 2019, mainly due to the increase in expenses for legal, accounting and other administrative and compliance affairs, as well as the share-based compensation expenses.

Research and development expenses were RMB167.6 million (US$24.7 million), an increase of 7.5% from RMB155.9 million in the same period in 2019, primarily due to the increase in share-based compensation expenses.

Operating loss was RMB242.8 million (US$35.8 million), compared with RMB279.9 million in the same quarter of 2019.

Net loss was RMB105.3 million (US$15.5 million), compared with RMB350.6 million in the same quarter of 2019.

Non-GAAP net loss was RMB169.1 million (US$24.9 million), compared with RMB241.9 million in the same quarter of 2019. The Non-GAAP net loss margin increased to -9.8% from -24.2% in the same quarter of 2019. The profitability and margin have been improving on both year-over-year and sequential basis.

Non-GAAP EBITDA was RMB-26.3 million (US$-3.9 million), compared with RMB-102.0 million in the same quarter of 2019. Non-GAAP EBITDA margin was -1.5%, compared to -10.2% in the same quarter of 2019. The steady increase of Non-GAAP EBITDA margin was due to the revenue growth and operating leverage.

Basic and diluted net loss per share was RMB0.03 (US$0.00), compared with RMB0.39 in the same quarter of 2019.

Cash and cash equivalents and short-term investments were RMB6,796.9 million (US$1,001.1 million) as of September 30, 2020, compared to RMB2,248.7 million as of December 31, 2019. The increase was primarily driven by the net proceeds received from IPO in May and follow up offering in September, as well as the improving profitability.


Outstanding ordinary shares were 3,270,266,493 as of September 30, 2020, equivalent to about 218,017,766 ADSs.

Business Outlook

For the fourth quarter of 2020, the Company expects total revenues to be between RMB1.88 billion and RMB1.95 billion. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Conference Call Information

The Company will hold a conference call on Wednesday, November 18, 2020 at 7:00 am, U.S. Eastern Time (8:00 pm, Beijing/Hong Kong Time on the same day) to discuss the financial results.

Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/5847057. Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique registrant ID.

To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your registrant ID, and you will join the conference instantly.

A telephone replay of the call will be available after the conclusion of the conference call through 10:00 a.m. U.S. Eastern Time, November 26, 2020. The dial-in details for the replay are as follows:

International: +61-2-8199-0299

U.S. Toll Free: +1-855-452-5696

Mainland China Toll Free: 800-870-0206

Hong Kong Toll Free: 800-963-117

Conference ID: 5847057

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.ksyun.com/.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross (loss) profit, Non-GAAP gross margin, Non-GAAP EBITDA and Non-GAAP EDITDA margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non-GAAP gross (loss) profit as gross (loss) profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross (loss) profit as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation, foreign exchange (gain) loss, changes in fair value of financial instruments and other (income) expense, net. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax expense and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors’ assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.


We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information

This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate of RMB6.7896 to US$1.00, the noon buying rate in effect on September 30, 2020 as certified for customs purposes by the Federal Reserve Bank of New York.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Kingsoft Cloud’s strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud’s goals and strategies; Kingsoft Cloud’s future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud’s business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud’s ability to monetize the customer base; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to Kingsoft Cloud’s business operations and the economy in China and elsewhere generally; China’s political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law.


About Kingsoft Cloud Holdings Limited

Kingsoft Cloud Holdings Limited (NASDAQ: KC) is a leading independent cloud service provider in China. Kingsoft Cloud has built a comprehensive and reliable cloud platform consisting of extensive cloud infrastructure, cutting-edge cloud products and well-architected industry-specific solutions across public cloud, enterprise cloud and AIoT cloud services.

For more information, please visit: http://ir.ksyun.com.

For investor and media inquiries, please contact:

Kingsoft Cloud Holdings Limited

Nicole Shan

Tel: +86 (10) 6292-7777 Ext. 6300

Email: ksc-ir@kingsoft.com

Christensen

Ms. Linda Bergkamp

Phone: +1-480-614-3004

E-mail: lbergkamp@christensenir.com


KINGSOFT CLOUD HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands)

 

     December 31,
2019
    Sep 30,
2020
    Sep 30,
2020
 
     RMB     RMB     US$  

ASSETS

      

Current assets:

      

Cash and cash equivalents

     2,023,263       3,866,503       569,474  

Accounts receivable, net

     1,347,481       2,027,606       298,634  

Short-term investments

     225,425       2,930,435       431,606  

Prepayments and other assets

     421,938       553,324       81,496  

Amounts due from related parties

     131,632       127,070       18,715  
  

 

 

   

 

 

   

 

 

 

Total current assets

     4,149,739       9,504,938       1,399,925  
  

 

 

   

 

 

   

 

 

 

Non-current assets:

      

Property and equipment, net

     1,720,974       1,935,358       285,047  

Intangible assets, net

     7,428       19,696       2,901  

Prepayments and other assets

     36,468       59,495       8,763  

Equity investments

     114,876       117,081       17,244  

Amounts due from related parties

     2,336       5,758       848  

Operating lease right-of-use assets

     —         276,452       40,717  
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     1,882,082       2,413,840       355,520  
  

 

 

   

 

 

   

 

 

 

Total assets

     6,031,821       11,918,778       1,755,445  
  

 

 

   

 

 

   

 

 

 

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT

      

Current liabilities

      

Accounts payable

     1,254,589       1,992,053       293,398  

Accrued expenses and other current liabilities

     949,213       717,739       105,712  

Short-term bank loans

     —         278,488       41,017  

Long-term bank loan, current portion

     100,000       124,351       18,315  

Income tax payable

     11,930       20,156       2,969  

Amounts due to related parties

     104,259       120,154       17,697  

Current operating lease liabilities

     —         66,287       9,763  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     2,419,991       3,319,228       488,871  
  

 

 

   

 

 

   

 

 

 

Non-current liabilities

      

Long-term bank loan

     74,351       —         —    

Deferred tax liabilities

     206       74       11  

Other liabilities

     —         41,799       6,156  

Non-current operating lease liabilities

     —         209,189       30,810  
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     74,557       251,062       36,977  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     2,494,548       3,570,290       525,848  
  

 

 

   

 

 

   

 

 

 

Mezzanine equity:

      

Series B convertible preferred shares

     337,268       —         —    

Series C redeemable convertible preferred shares

     1,043,147       —         —    

Series D redeemable convertible preferred shares

     5,965,273       —         —    

Series D+ redeemable convertible preferred shares

     388,844       —         —    
  

 

 

   

 

 

   

 

 

 

Total mezzanine equity

     7,734,532       —         —    
  

 

 

   

 

 

   

 

 

 

Shareholders’ (deficit) equity:

      

Series A convertible preferred shares

     123,186       —         —    

Ordinary shares

     5,558       22,343       3,291  

Additional paid-in capital

     91,746       13,826,068       2,036,357  

Accumulated deficit

     (4,902,097     (5,759,144     (848,230

Accumulated other comprehensive income

     484,348       259,214       38,178  
  

 

 

   

 

 

   

 

 

 

Total Kingsoft Cloud Holdings Limited shareholders’ (deficit) equity

     (4,197,259     8,348,481       1,229,596  

Noncontrolling interests

     —         7       1  
  

 

 

   

 

 

   

 

 

 

Total (deficit) equity

     (4,197,259     8,348,488       1,229,597  
  

 

 

   

 

 

   

 

 

 

Total liabilities, mezzanine equity and shareholders’ (deficit) equity

     6,031,821       11,918,778       1,755,445  
  

 

 

   

 

 

   

 

 

 


KINGSOFT CLOUD HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(All amounts in thousands, except for share and per share data)

 

     Three Months Ended     Nine Months Ended  
     Sep 30,
2019
    March 31,
2020
    Jun 30,
2020
    Sep 30,
2020
    Sep 30,
2020
    Sep 30,
2019
    Sep 30,
2020
    Sep 30,
2020
 
     RMB     RMB     RMB     RMB     US$     RMB     RMB     US$  

Revenues:

                

Public cloud services

     884,518       1,208,514       1,287,139       1,309,693       192,897       2,513,701       3,805,346       560,467  

Enterprise cloud services

     114,450       181,587       246,081       409,101       60,254       265,881       836,769       123,243  

Others

     2,822       862       1,535       10,049       1,480       3,131       12,446       1,833  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     1,001,790       1,390,963       1,534,755       1,728,843       254,631       2,782,713       4,654,561       685,543  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues

     (983,046     (1,320,192     (1,454,011     (1,615,945     (238,003     (2,829,327     (4,390,148     (646,599
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit (loss)

     18,744       70,771       80,744       112,898       16,628       (46,614     264,413       38,944  

Operating expenses:

                

Selling and marketing expenses

     (87,309     (87,968     (109,775     (96,802     (14,257     (219,140     (294,545     (43,382

General and administrative expenses

     (55,491     (75,977     (170,421     (91,338     (13,453     (151,403     (337,736     (49,743

Research and development expenses

     (155,853     (195,650     (230,828     (167,590     (24,683     (423,685     (594,068     (87,497
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     (298,653     (359,595     (511,024     (355,730     (52,393     (794,228     (1,226,349     (180,622
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (279,909     (288,824     (430,280     (242,832     (35,765     (840,842     (961,936     (141,678

Interest income

     17,291       10,095       20,937       24,414       3,596       66,976       55,446       8,166  

Interest expense

     —         (1,884     (1,791     (3,940     (580     (4,925     (7,615     (1,122

Foreign exchange (loss) gain

     (81,882     (40,144     (2,883     117,714       17,337       (95,714     74,687       11,000  

Changes in fair value of financial instruments

     —         198       —         2,825       416       —         3,023       445  

Other (expense) income, net

     (3,781     (5,259     (4,342     515       76       9,807       (9,086     (1,338
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (348,281     (325,818     (418,359     (101,304     (14,920     (864,698     (845,481     (124,527

Income tax expense

     (2,311     (5,829     (1,697     (4,033     (594     (6,993     (11,559     (1,702
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (350,592     (331,647     (420,056     (105,337     (15,514     (871,691     (857,040     (126,229

Less: net (loss) income attributable to noncontrolling interests

     —         (306     117       196       29       —         7       1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to Kingsoft Cloud Holdings Limited

     (350,592     (331,341     (420,173     (105,533     (15,543     (871,691     (857,047     (126,230

Accretion to redemption value of redeemable convertible preferred
shares

     —         (19,768     —         —         —         —         (19,768     (2,912
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to ordinary shareholders

     (350,592     (351,109     (420,173     (105,533     (15,543     (871,691     (876,815     (129,142
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share:

                

Basic and diluted

     (0.39     (0.39     (0.19     (0.03     (0.00     (0.98     (0.42     (0.06

Shares used in the net loss per share computation:

                

Basic and diluted

     894,711,200       898,305,836       2,218,943,950       3,153,524,558       3,153,524,558       886,714,057       2,098,997,211       2,098,997,211  

Other comprehensive income (loss), net of tax of nil:

                

Foreign currency translation adjustments

     126,033       51,349       683       (277,166     (40,822     140,665       (225,134     (33,159
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive loss

     (224,559     (280,298     (419,373     (382,503     (56,336     (731,026     (1,082,174     (159,388

Less: Comprehensive (loss) income attributable to noncontrolling interests

     —         (306     117       196       29       —         7       1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive loss attributable to Kingsoft Cloud Holdings
Limited shareholders

     (224,559     (279,992     (419,490     (382,699     (56,365     (731,026     (1,082,181     (159,389

Accretion to redemption value of redeemable convertible preferred
shares

     —         (19,768     —         —         —         —         (19,768     (2,912
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive loss attributable to ordinary shareholders

     (224,559     (299,760     (419,490     (382,699     (56,365     (731,026     (1,101,949     (162,301
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

 

     Three Months Ended  
     Sep 30,
2019
     March 31,
2020
     Jun 30,
2020
     Sep 30,
2020
     Sep 30,
2020
 
     RMB      RMB      RMB      RMB      US$  

Gross profit

     18,744        70,771        80,744        112,898        16,628  

Adjustments:

              

– Share-based compensation expenses

     1,817        3,426        3,009        1,858        274  

Adjusted gross profit

     20,561        74,197        83,753        114,756        16,902  

 

     Three Months Ended  
     Sep 30,
2019
    March 31,
2020
    Jun 30,
2020
    Sep 30,
2020
 

Gross margin

     1.9     5.1     5.3     6.5

Adjusted gross margin

     2.1     5.3     5.5     6.6

 

     Three Months Ended  
     Sep 30,
2019
    March 31,
2020
    Jun 30,
2020
    Sep 30,
2020
    Sep 30,
2020
 
     RMB     RMB     RMB     RMB     US$  

Net Loss

     (350,592     (331,647     (420,056     (105,337     (15,514

Adjustments:

          

– Share-based compensation expenses

     22,981       43,084       175,148       57,339       8,445  

– Foreign exchange loss (gain)

     81,882       40,144       2,883       (117,714     (17,337

– Changes in fair value of financial instruments

     —         (198     —         (2,825     (416

– Other expense (income), net

     3,781       5,259       4,342       (515     (76

Adjusted net loss

     (241,948     (243,358     (237,683     (169,052     (24,898

Adjustments:

          

– Interest income

     (17,291     (10,095     (20,937     (24,414     (3,596

– Interest expense

     —         1,884       1,791       3,940       580  

– Income tax expense

     2,311       5,829       1,697       4,033       594  

– Depreciation and amortization

     154,919       206,362       219,227       159,199       23,447  

Adjusted EBITDA

     (102,009     (39,378     (35,905     (26,294     (3,873

 

     Three Months Ended  
     Sep 30,
2019
    March 31,
2020
    Jun 30,
2020
    Sep 30,
2020
 

Net loss margin

     -35.0     -23.8     -27.4     -6.1

Adjusted net loss margin

     -24.2     -17.5     -15.5     -9.8

Adjusted EBITDA Margin

     -10.2     -2.8     -2.3     -1.5


KINGSOFT CLOUD HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(All amounts in thousands)

 

     Three Months Ended  
     Sep 30,
2019
    Sep 30,
2020
    Sep 30,
2020
 
     RMB     RMB     US$  

Net cash used in operating activities

     (127,444     (103,510     (15,245

Net cash generated from (used in) investing activities

     148,980       (1,037,103     (152,749

Net cash generated from financing activities

     437       1,770,098       260,707  

Effect of exchange rate changes on cash and cash equivalents

     (26,325     (73,469     (10,821

Net increase in cash and cash equivalents

     21,973       629,485       92,713  

Cash and cash equivalents at beginning of period

     1,745,868       3,310,487       487,582  

Cash and cash equivalents at end of period

     1,741,516       3,866,503       569,474