A：The main focus of the conference call was the presentation of Kings of Cloud's first quarter 2026 earnings release and the discussion of business strategies, operations, and company highlights by the executives, followed by a discussion on financial performance by the CFO.

A：The significant financial results highlighted for the current quarter include a 37.2% year-over-year revenue growth to reach RMB 27.0 billion, a 47.5% year-over-year growth in public cloud revenue to reach RMB 20 billion, a 8.6% year-over-year growth in adjusted gross profit to reach RMB 3.5 billion, a 134.7% year-over-year growth in adjusted EBITDA to reach RMB 7.5 billion, and a 27.6% adjusted EBITDA margin, which is a 11.4 percentage point increase from the previous year.The strategic initiatives mentioned for the current quarter include the continued execution of the high-quality and sustainable development strategy, the strengthening of the AI cloud infrastructure and training and inference platform capabilities, and the deepening of industry vertical scene落地的新投入.

A：The company's collaboration with小米 contributed to its revenue growth by generating RMB 8.4 billion in revenue from services to小米和金山生态, a 68.9% year-over-year increase and representing 31% of total revenue for the quarter. The company plans to revise the annual caps for continuing关联交易， projecting a 2025-2027 framework revenue upper limit of RMB 142 billion from services to these entities.

A：In the public cloud segment, the company achieved an income of 20 billion RMB, representing a 47.5% year-over-year growth. This growth was driven by both the continued strong demand from the company's partnership with小米金山生态, as well as the expanding recognition from external clients. The company secured a substantial income from a significant number of large-scale, high-profile clients outside the ecosystem, resulting in an income growth of 66% from these top five clients. Additionally, the company successfully provided market services to a prominent autonomous driving client, enabling rapid delivery and maintenance response and supporting their data processing and neural network training needs.

A：With the landing of reasoning applications, our computing business has covered Internet AI companies, self-driving, logistics, finance, technology games, and audio and video industries, forming a more balanced customer structure. This quarter, we deeply empowered our leading customers in a AI field to ensure the rapid development of their new business and the stable operation of the platform. At the same time, we also provided support for a large model code development project of a head logistics technology company, helping the customer team to improve research and development efficiency and innovation ability by flexibly calling multiple models, so as to achieve an increase in revenue scale and more flexible scheduling and high utilization of resources.

A：In the first quarter, our public cloud service revenue reached RMB 2 billion, up 47.5 percent year-on-year. Specifically, we first closely focused on the large-scale, high-visibility cloud computing needs in ecosystems such as Xiaomi and Jinzhu, and successfully won wide recognition from customers outside the industry. Through long-term global strategic planning and continuous optimization of product solutions, we enhance the sustainable competitive advantage of our products. In the quarter, we achieved revenue of RMB 0.7 billion from industry operations, up 14.7 percent year-over-year. In the field of public services, we launched a state-owned cloud platform in Shenzhen to meet the needs of state-owned state-owned enterprises for high security, strong compliance and confidentiality, and to help state-owned enterprises in the digital upgrade of office business management and other scenarios. In addition, based on the Jinshan cloud technology base, we have built a supply chain public information platform in Hubei to achieve resource conservation, data exchange and business collaboration, and have supported the large-scale cloud on the platform of many cities and counties. At the same time, we also cooperate with domestic chip manufacturers to build a full-stack asset service system to promote domestic intelligent cloud scale commercial applications.

A：In the field of digital health, we cooperated with the Union Hospital Affiliated to Tongji Medical College of East China University of Science and Technology to carry out a data governance project to help hospitals shift from decentralized management to standardized governance, and set a benchmark for the intelligent transformation of large medical institutions. We also signed a large-scale medical community platform project, demonstrating our full-process service capabilities in the field of medical community construction, laying the foundation for large-scale promotion of subsequent medical institutions. In the field of enterprise services, we delivered a green energy operation platform for a clean energy service provider to ensure the effective management of large heavy truck fleets in transit and extend them to the green and low-carbon industrial chain; in addition, we also explored digital solutions for solid waste supervision to promote business scale.

A：We continue to adhere to technology and upgrade our products and services closely around computing needs. This quarter, the new stream platform significantly expanded the model ecological API service, added voice recognition and generation class models, enhanced image and video generation models, and provided users with a more refined management experience. At the same time, in response to the needs of the intelligent body, we launched the AI development platform engine to help customers efficiently and safely complete development deployment and operation and maintenance. In addition, the cloud host has added a one-click deployment capability to support the rapid deployment of mainstream applications and reduce the use threshold. In the AI training scenario, we optimized the performance of the cache accelerator to achieve stable and low latency at the millisecond level, and for the AI landing scenario, the Galaxy Cloud Platform completed an important milestone in the privatization deployment, adding the Star Stream and security module to achieve the closed-loop deployment of the whole station privatization.

A：The quick agent deployment introduced by the company supports mainstream agent applications such as OpenClaw and Hermes, and it can achieve deployment within five minutes. This significantly lowers the barrier to adoption for AI training and inference use cases.The KS three cash accelerator delivers stable, millisecond-level low latency services, balancing performance and cost efficiency to meet the rising demand for private deployment of AI across industries.

A：The AI business reaching over fifty percent of public cloud services revenue is a pivotal structural shift in the company's growth mix, marking the first time AI has become the major revenue driver.The company's revenue experienced consecutive year-over-year growth for eight quarters, reaching $2,704 million in the most recent quarter.

A：The adjusted gross profit was $351 million, up 7% year over year, despite supply chain challenges. The adjusted EBITDA margin was 28%, which increased by 11 percentage points year over year, thanks to the growth in AI revenue.

A：The total cost of revenue was $2,358 million, an increase of 43% year over year, mainly due to the company's investment into AI computer resources. IDC costs increased by 26% year over year from $723 million to $911 million.

A：The adjusted gross profit for the quarter was $351 million, up 70% year over year and down 25% quarter over quarter. Adjusted operating expenses were $455 billion, with various components detailed in the financial results.The decrease in the adjusted gross profit margin was mainly due to higher costs of servers, the expansion of the AI business, and upfront costs including future revenue-generating activities with certain consumers.

A：The adjusted operating loss margin decreased from 3% in the same period last year to 2% this quarter. Capital ensured, including amounts financed by external parties, assets were $2,985 million, representing financial stability.

A：The company aims to capitalize on the explosive growth in demand by further investing in infrastructure, enhancing service stability, managing liquidity risk, and improving operating efficiency. The company remains focused on its AI strategy, providing customers with high-value-added cloud services.