A：The non GAAP gross profit was RMB 327 million, a year-over-year increase of 9.6%. The non GAAP EBITDA margin was 16.2%, an improvement of 14.3 percentage points year over year, mainly attributable to the continued increase in the proportion of AI business revenue.

A：AI business contributed 39% of public cloud revenue, continuing to lead the industry based on steady usage growth in ecosystem customers and foundation model customers.

A：The non GAAP operating profit was RMB -55.800 million resulting in a non GAAP operating margin of -2.8%, representing an improvement of 4.4 percentage points compared to a loss of 7.2 percentage points in the same period last year.

A：The key driver of revenue growth in the public cloud space was the AI business, which reported a significant increase in gross billing to RMB 520.500 million, up over 200% year over year and 11% quarter over quarter, accounting for 39% of public cloud revenue.

A：In the public service sector, the application of AI is being advanced in public service clouds and state-owned access cloud. A rich set of model resources has been built through an open source model marketplace, along with a one-stop model tool chain for data processing, fine-tuning, evaluation, and quantization. In the healthcare sector, a platform for mutual recognition and sharing of test and examination results has been constructed in Wuhan, with Medical Imaging Cloud capabilities deployed in regions like Jiangsu and Chongqing provinces. These capabilities have expanded from imaging to test and examination scenarios and have been extended to the entire Hubei province market.

A：The company focuses on building success based on technology and innovation, aiming to deliver best-in-class customer experiences across core product offerings. This includes enhancing the intelligent cloud computing services and the X-Liu training and inference platform as a one-stop AI development and deployment platform, providing elastic and cost-effective model training and inference services. The integration of high-quality models, such as those from Xiaomi, is expected to extend the platform's ecosystem capabilities and help customers apply AI in various scenarios such as natural language processing, multimodal interaction, and intelligent decision-making.

A：The AI business is experiencing rapid growth, and the cloud services have entered a new development cycle in the public cloud space. The company has strengthened its capabilities in infrastructure, training, inference platforms, and AI tools to assist customers with reduced training costs and improved model stability, convenience, and efficiency. In the enterprise cloud space, with a focus on AI and office productivity, one-stop model solutions and services are provided under the trend of enterprise AI integration. Future strategies include deep cooperation with ecosystems like Xiaomi and Kingsoft, exploring new AI opportunities, and continuing to create value for all stakeholders.

A：For the first quarter of 2025, total revenues were 1970.0 million RMB, marking a 11% year-over-year increase. Public cloud services revenues were 1353.5 million RMB, up 14% from the same period last year. Growth was primarily driven by a surge in AI-related business. Capital expenditure was 600.5 million RMB, and revenues from Enterprise cloud services reached 616.5 million RMB, a 5% increase from the same quarter of the previous year, mainly due to increased demand for industry solutions. Adjusted gross profit for the quarter was 327.7 million RMB, a 9.6% year-over-year increase, with adjusted gross margin impacted by seasonality and higher upfront investments in AI services. Adjusted operating expenses were 427.3 million RMB, a decrease of 9% year over year, resulting in an adjusted operating loss of 55.8 million RMB, a significant narrowing from 127.0 million RMB in the same period of the previous year. Non-GAAP EBITDA profit was 318.5 million RMB, an increase of 33.2 million RMB from the same quarter of the previous year, with a non-GAAP EBITDA margin of 16.2%, up from 1.9% in the same quarter of the previous year.

A：The latest demand from Xiaomi regarding the company's offerings was not specified in the provided text, and the text does not provide a direct answer to the specific request for information about the company's products or services.

A：The demand from Xiaomi for model inference has significantly contributed to the growth of the AI business. However, the pace of this demand influences the timing and amount of revenue and profit recognized on a quarterly basis, which could impact the financial reporting.

A：The government's AI all-in-one model machine is a joint development between Kingsoft Cloud and Kingsoft Office, designed for government agencies to become more efficient in office scenarios through AI components. The pricing varies based on the different hardware configurations provided to customers.

A：The operating margin is affected in Q1 due to human capital expenses, particularly salaries, bonuses, and employee benefits during the holiday season, alongside the impact of delayed projects on revenue. The company anticipates that the improved margin profile from AI projects and relationships with ecosystem partners, especially with plans for large projects starting from Q2, will drive better margin expansion in the following quarters.

A：While the company does not provide formal guidance, it views the operating margin profile in the following quarters, especially in the second half of the year, as likely to be better than the first half. The exact guidance depends on top line growth, the pacing of revenue, and revenue quality in the following quarters.

A：The company diversified its methods of financing AI infrastructure investments, which include using its own cash, engaging in financial leasing operations with partners like Xiaomi, and arranging bank loans and leasing agreements with state-owned banks and leasing companies in China to handle the balance sheet financing arrangements.

A：The total CapEx for this quarter is approximately 600 million, which includes investments into AI infrastructure. The company is leasing certain servers from third parties to manage cash outflows and has been negotiating agreements with these third parties since Q1, with plans to update on total spending including both cash outlays and leasing arrangements in the next quarter.

A：For this quarter, the R&D expenses are around 200 million RMB, sales expenses are around 108 million RMB, and management (SG&A) expenses are around 119 million RMB. Together, these expenses roughly amount to 400 million RMB on the Opex side.

A：The impact of chip restrictions is described as having a short-term effect that is not material due to the company's inventory and storage preparations. However, from a long-term perspective, there will be a meaningful impact on King Cloud as a company and on the industry as a whole.

A：Since 2023, King Cloud has strengthened cooperation with made-in-China computing resources and is well-prepared for the potential gradual substitution of these resources in case of continued or more restrictive regulations.

A：The overall conclusion is that there is no negative impact on revenue and profitability.

A：For traditional large language model customers using 100+ billion parameter models, there is no impact as they use King Cloud's computing power for training and inferences. For internet space customers using smaller models (30B to 10B parameter amounts), there is a positive impact as they will increasingly use King Cloud's computing resources, potentially leading to incremental revenue and profit.

A：The open source release of R1 has led to a shift in model training demand. While there is incremental demand from new customers who are inspired by the success of R1, some model vendors might abandon their current iterations. The net impact on the industry is evaluated as positive, as the demand from new customers is expected to outweigh the impact of model vendors dropping out.