REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol |
Name of each exchange on which registered | ||
N/A |
* | Not for trading, but only in connection with the listing of the American depositary shares on the Nasdaq Global Select Market. |
☒ | Accelerated filer | ☐ | Non-accelerated filer |
☐ | ||||||
Emerging growth company |
† |
The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
International Financial Reporting Standards as issued | Other ☐ | |||||||
by the International Accounting Standards Board | ☐ |
• | “ADSs” refers to the American depositary shares, each representing 15 ordinary shares; |
• | “China” or “PRC” refers to the People’s Republic of China, excluding, for the purpose of this annual report only, Taiwan, Hong Kong and Macau Special Administrative Region; |
• | “Enterprise Cloud Service Premium Customer” refers to a customer with annual revenues of over RMB700,000 generated from enterprise cloud services for a historical year; |
• | “GPU” refers to graphics processing unit; |
• | “Hong Kong” or “HK” refers to the Hong Kong Special Administrative Region of the PRC; |
• | “IaaS” refers to Infrastructure as a Service, a category of cloud services that provides high-level application programming interface used to dereference various low-level details of underlying network infrastructure like physical computing resources, location, data partitioning, scaling, security, backup, etc.; |
• | “independent cloud service providers” refers to cloud service providers that are not belonging to any large-scale conglomerates that are involved in a wide range of businesses where they could potentially compete with their customers; |
• | “Kingsoft Cloud Information” refers to Kingsoft Cloud (Beijing) Information Technology Co., Ltd., a VIE; |
• | “Kingsoft Group” refers to Kingsoft Corporation Limited (HKEx: 3888), its subsidiaries and consolidated affiliated entities, our largest shareholder; |
• | “Nanjing Qianyi” refers to Nanjing Qianyi Shixun Information Technology Co., Ltd., one of our Consolidated Affiliated Entities; |
• | “net dollar retention rate of Public Cloud Service Premium Customers” is calculated by dividing the revenues from our Public Cloud Service Premium Customers, who were also our Public Cloud Service Premium Customers in the previous year, in the indicated period by the revenues from all of our Public Cloud Service Premium Customers in the previous corresponding period; |
• | “ordinary share” refers to our ordinary shares, par value US$0.001 per share; |
• | “PaaS” refers to Platform as a Service, a category of cloud services that provides a platform allowing customers to develop, run, and manage applications without the complexity of building and maintaining the infrastructure typically associated with developing and launching an app; |
• | “Premium Customer” refers to a customer with annual revenues of over RMB700,000 for a historical year; |
• | “Public Cloud Service Premium Customer” refers to a customer with annual revenues of over RMB700,000 generated from public cloud services for a historical year; |
• | “RMB” or “Renminbi” refers to the legal currency of the People’s Republic of China; |
• | “SaaS” refers to Software as a Service, a category of cloud services that provides a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted; |
• | “Shanghai Jinxun Ruibo” refers to Shanghai Jinxun Ruibo Network Technology Co., Ltd., one of our Consolidated Affiliated Entities; |
• | “US$,” “dollars” or “U.S. dollars” refers to the legal currency of the United States; |
• | “variable interest entities” or “VIEs” refers to the PRC entities of which we have power to control the management, and financial and operating policies and have the right to recognize and receive substantially all the economic benefits and in which we have an exclusive option to purchase all or part of the equity interests and all or a portion of the assets at the minimum price possible to the extent permitted by PRC law; |
• | “we,” “us,” “our company,” the “Company,” and “our” refer to Kingsoft Cloud Holdings Limited, a Cayman Islands company and its subsidiaries and, in the context of describing our consolidated financial information, business operations and operating data, its consolidated variable interest entities, or VIEs; |
• | “Wuhan Kingsoft Cloud” refers to Wuhan Kingsoft Cloud Information Technology Co., Ltd., one of our Consolidated Affiliated Entities; |
• | “VAT License” refers to the business operation license for value-added telecommunication services; |
• | “Xiaomi” refers to Xiaomi Corporation (HKEx: 1810), its subsidiaries and consolidated affiliated entities, one of our shareholders; and |
• | “Zhuhai Kingsoft Cloud” refers to Zhuhai Kingsoft Cloud Technology Co., Ltd., a VIE. |
• | our goals and growth strategies; |
• | our future business development, results of operations and financial condition; |
• | relevant government policies and regulations relating to our business and industry; |
• | general economic and business conditions in China; and |
• | assumptions underlying or related to any of the foregoing. |
ITEM 1 |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2 |
OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3 |
KEY INFORMATION |
3.A. |
[Reserved] |
3.B. |
Capitalization and Indebtedness |
3.C. |
Reason for the Offer and Use of Proceeds |
3.D. |
Risk Factors |
• | We have experienced rapid growth and expect our growth to continue, but if we fail to effectively manage our growth, then our business, results of operations and financial condition could be adversely affected. |
• | We have a history of net loss and we may not be able to achieve or subsequently maintain profitability. |
• | To support our business growth, we are continuously optimizing and expanding our infrastructure including data centers, and investing substantially and efficiently in our research and development efforts, which may negatively impact our cash flow, and may not generate the results we expect to achieve. |
• | We have recorded negative cash flows from operating activities historically. If we fail to collect accounts receivable from our customers in a timely manner, our business operations and financial results may be materially and adversely affected. |
• | Although we have been increasing and diversifying our customer base, we receive a substantial portion of our revenues from a limited number of customers, and the loss of, or a significant reduction in usage by, one or more of our Premium Customers would result in lower revenues and could harm our business. |
• | We operate in a fast-growing market. If our market does not grow as we expect, or if we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards, changing regulations, and changing customer needs, requirements or preferences, our products and solutions may become less competitive. |
• | Security incidents and attacks on our platform, products or solutions, or our global network infrastructure could lead to significant costs and disruptions that could harm our business, financial results, and reputation. |
• | Sanctions, export controls and other economic or trade restrictions imposed on Chinese companies may affect our business, financial condition and results of operations. |
• | If our expansion into new verticals is not successful, our business, prospects and growth momentum may be materially and adversely affected. |
• | The market in which we participate is competitive, and if we do not compete effectively, our business, results of operations and financial condition could be harmed. |
• | If we are no longer able to benefit from our business cooperation with Kingsoft Group or Xiaomi and its ecosystem, our business may be adversely affected. |
• | Kingsoft Group and Xiaomi are our existing customers, from which we received a portion of revenues. Failure to maintain the relationships with them would result in lower revenues and could adversely impact our business, operation results and financial conditions. |
• | Any policy changes, punishment or litigation against Kingsoft Group or Xiaomi, or any negative developments in Kingsoft Group ’ s or Xiaomi ’ s market position, brand recognition or financial condition may materially and adversely affect our reputation, business, results of operations and financial condition. |
• | Certain existing shareholders have substantial influence over our Company and their interests may not be aligned with the interests of our other shareholders. |
• | There are substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations, and rules relating to the agreements that establish the contractual arrangement for our operations in China, including potential future actions by the PRC government, which could affect the enforceability of our contractual arrangements with the VIEs and, consequently, significantly affect the financial condition and results of operations performance of our Company. If the PRC government finds such agreements that establish the structure for operating our businesses in China non-compliant with relevant PRC laws, regulations, and rules, or if these laws, regulations, and rules or the interpretation thereof change in the future, we could be subject to severe penalties or be forced to relinquish our interests in the VIEs. |
• | Uncertainties exist with respect to the interpretation and implementation of Foreign Investment Law and its implementing rules and other foreign investment related laws and regulations and how they may impact our business, financial condition and results of operations. |
• | We rely on contractual arrangements with the VIEs and their respective shareholders for a large portion of our business operations, which may not be as effective as direct ownership in providing operational control. |
• | Any failure by the VIEs or their respective shareholders to perform their obligations under our contractual arrangements with them would have a material and adverse effect on our business. |
• | A severe or prolonged downturn in the PRC or global economy could materially and adversely affect our business, results of operations and financial condition. |
• | Changes in China’s economic, political or social conditions or government policies could have a material adverse effect on our business and operations. |
• | Uncertainties with respect to the PRC legal system , including uncertainties regarding the enforcement of laws, and sudden or unexpected changes in policies, laws and regulations in China, could adversely affect us. |
• | You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in China against us or our management named based on foreign laws. |
• | The filing, approval or other administrative requirements of the CSRC or other PRC government authorities may be required to maintain our listing status or conduct future offshore securities or debt offerings. |
• | We may rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business. |
• | The PCAOB is currently unable to inspect our auditor in relation to their audit work performed for our financial statements and the inability of the PCAOB to conduct inspections over our auditor deprives our investors with the benefits of such inspections. |
• | Our ADSs may be delisted and our ADSs and shares prohibited from trading in the over-the-counter 16, 2021, the PCAOB issued the HFCAA Determination Report, according to which our auditor is one of the registered public accounting firms that the PCAOB is unable to inspect or investigate completely. Under the current law, delisting and prohibition from over-the-counter non-U.S. exchange or that a market for our shares will develop outside of the U.S. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. |
• | The potential enactment of the Accelerating Holding Foreign Companies Accountable Act would decrease the number of non-inspection years from three years to two years, thus reducing the time period before our ADSs may be delisted or prohibited from over-the-counter over-the-counter |
• | The price and trading volume of our ADSs may be volatile, which could lead to substantial losses to investors. |
• | If securities or industry analysts do not publish research or reports about our business, or if they adversely change their recommendations regarding our securities , the market price for our ADSs and trading volume could decline. |
• | Techniques employed by short sellers may drive down the market price of our ADSs. |
• | Due to recent substantial fluctuations of our ADSs’ trading prices there is a significant risk that we will be a passive foreign investment company for U.S. federal income tax purposes for 2022 or future taxable years. |
• | lead to the dissemination of proprietary information or sensitive, personal, or confidential data about us, our employees, or our customers—including personally identifiable information of individuals involved with our customers and their end-users; |
• | lead to interruptions or degradation of performance in our platform, products and solutions; |
• | threaten our ability to provide our customers with access to our platform, products and solutions, and negatively affect our abilities to retain existing customers; |
• | generate negative publicity about us; |
• | result in litigation and increased legal liability or fines; or |
• | lead to governmental inquiry or oversight. |
• | our future business development, financial condition and results of operations; |
• | general market conditions for financing activities; and |
• | macro-economic and other conditions in China and elsewhere. |
• | challenges in the integration of operations and systems and in managing the expanded operations; |
• | challenges in achieving anticipated business opportunities and growth prospects from combining the businesses of Camelot with the rest of our businesses; |
• | challenges in navigating complex regulatory requirements or to respond to future changes in regulatory environment in an effective and timely manner; and |
• | unanticipated additional costs and expenses resulting from integrating into our business additional personnel, operations, products, services, technology, internal controls and financial reporting responsibilities. |
• | the effectiveness of our sales force, particularly new salespeople, as we increase the size of our sales force; |
• | the discretionary nature of customers’ purchasing decisions and budget cycles; |
• | customers’ procurement processes, including their evaluation of our products and solutions; |
• | economic conditions and other factors affecting customer budgets; |
• | the regulatory environment in which our customers operate; |
• | integration complexity for a customer deployment; |
• | the customer’s familiarity with our products and solutions; |
• | evolving customer demands; and |
• | competitive conditions. |
• | failure to achieve the intended objectives, benefits or revenue-enhancing opportunities; |
• | non-occurrence of anticipated or speculative transactions and any resulting negative impact; |
• | costs and difficulties of integrating acquired businesses and managing a larger business; |
• | in the case of investments where we do not obtain management and operational control, lack of influence over the controlling partner or shareholder, which may prevent us from achieving our strategic goals in the investments; |
• | possible unsatisfactory operational or financial performance, including financial loss, or fraudulent activities of a target business; |
• | possible loss of key employees of a target business; |
• | potential claims or litigation regarding our board’s exercise of its duty of care and other duties required under applicable law in connection with any of our significant acquisitions or investments approved by the board; |
• | diversion of resources and management attention; |
• | regulatory hurdles and compliance risks, including the anti-monopoly and competition laws, rules and regulations of China and other jurisdictions and the enhanced compliance requirement for outbound acquisitions and investment under the laws and regulations of China; and |
• | in the case of acquisitions of businesses or assets outside of China, the need to integrate operations across different business cultures and languages and to address the particular economic, currency, political, and regulatory risks associated with specific countries. |
• | issue additional equity securities that would dilute our existing shareholders; |
• | use cash that we may need in the future to operate our business; |
• | incur large charges or substantial liabilities; |
• | incur debt on terms unfavorable to us or that we turn out to be unable to repay; |
• | encounter difficulties in retaining key employees of the acquired company or integrating diverse software codes or business cultures; |
• | encounter difficulties in conducting sufficient and effective due diligence on potential targets and unforeseen or hidden liabilities or additional incidences of non-compliance, operating losses, costs and expenses that may adversely affect us following our acquisitions or investments or other strategic transactions; and |
• | become subject to adverse tax consequences, substantial depreciation, or deferred compensation charges. |
• | the difficulty of managing and staffing international operations and the increased operations, travel, infrastructure and legal compliance costs associated with numerous international locations; |
• | our ability to effectively price our products in competitive international markets; |
• | new and different sources of competition; |
• | potentially greater difficulty collecting accounts receivable and longer payment cycles; |
• | higher or more variable network service provider fees outside of China; |
• | the need to adapt and localize our products for specific countries; |
• | the need to offer customer support in various languages; |
• | difficulties in understanding and complying with local laws, regulations and customs in foreign jurisdictions; |
• | difficulties with differing technical and environmental standards, data privacy and telecommunications regulations and certification requirements outside China, which could prevent customers from deploying our products or limit their usage; |
• | compliance with various anti-bribery and anti-corruption laws such as the Foreign Corrupt Practices Act and United Kingdom Bribery Act of 2010; |
• | tariffs and other non-tariff barriers, such as quotas and local content rules; |
• | more limited protection for intellectual property rights in some countries; |
• | adverse tax consequences; |
• | fluctuations in currency exchange rates, which could increase the price of our products outside of China, increase the expenses of our international operations and expose us to foreign currency exchange rate risk; |
• | currency control regulations, which might restrict or prohibit our conversion of other currencies into RMB; |
• | restrictions on the transfer of funds; and |
• | political or social unrest or economic instability in a specific country or region in which we operate, which could have an adverse impact on our operations in that location. |
• | investigations, enforcement actions, and sanctions; |
• | mandatory changes to our network and products; |
• | disgorgement of profits, fines, and damages; |
• | civil and criminal penalties or injunctions; |
• | liability for breaches of agreements with, and claims for damages by our customers; |
• | termination of contracts; |
• | loss of intellectual property rights; |
• | failure to obtain, maintain or renew certain licenses, approvals, permits, registrations or filings necessary to conduct our operations; and |
• | temporary or permanent debarment from sales to public service organizations. |
• | macro-economic and other conditions in China and worldwide; |
• | fluctuations in demand for or pricing of our solutions and products; |
• | our ability to attract new customers; |
• | our ability to retain our existing customers; |
• | fluctuations in the usage of our products by our customers, which is directly related to the amount of revenues that we recognize from our customers; |
• | fluctuations in customer delays in purchasing decisions in anticipation of new products or product enhancements by us or our competitors; |
• | changes in customers’ budgets and in the timing of their budget cycles and purchasing decisions; |
• | the timing of customer payments and any difficulty in collecting accounts receivable from customers; |
• | potential and existing customers choosing our competitors’ products or developing their own products in-house; |
• | timing of new functionality of our existing platform; |
• | the political or economic relationships between China and the United States; |
• | the stability and management of our supply chain; |
• | our ability to control costs, including our operating expenses; |
• | the amount and timing of payment for operating expenses, particularly research and development and sales and marketing expenses, including commissions; |
• | the amount and timing of non-cash expenses, including share-based compensation, impairment of long-lived assets, and other non-cash charges; |
• | the amount and timing of costs associated with recruiting, training, and integrating new employees; |
• | the effects of acquisitions or other strategic transactions; |
• | expenses in connection with acquisitions or other strategic transactions; |
• | general economic conditions, both domestically and internationally, as well as economic conditions specifically affecting industries in which our customers participate; |
• | the ability to maintain our relationship with business partners; |
• | the impact of new accounting pronouncements; |
• | changes in the competitive dynamics of our market, including consolidation among competitors or customers; |
• | significant security breaches of, technical difficulties with, or interruptions to, the delivery and use of our platform; and |
• | awareness of our brand and our reputation in our target markets. |
• | Collaboration with Kingsoft Group and Xiaomi. We have a number of cooperation arrangements with Kingsoft Group and Xiaomi, respectively. These collaboration arrangements may be less favorable to us than similar arrangements negotiated between unaffiliated third parties. Specifically, pursuant to the strategic cooperation and anti-dilution framework agreements entered into with each of Kingsoft Corporation Limited and Xiaomi Corporation, respectively, the Company has granted each of Kingsoft Corporation Limited and Xiaomi Corporation an anti-dilution right to acquire new shares under future securities offerings up to such amount so as to maintain the same shareholding percentage in the total issued share capital of our company immediately before and after such future securities offerings. |
• | Allocation of business opportunities. There may arise business opportunities in the future that both we, Kingsoft Group and Xiaomi are interested in and which may complement each of our respective businesses. Kingsoft Group and Xiaomi hold a large number of business interests, some of which may directly or indirectly compete with us. Kingsoft Group and Xiaomi may decide to take up business opportunities themselves, which would prevent us from taking advantage of those opportunities. |
• | Sale of shares in our company. Subject to its lock-up arrangements Kingsoft Group and Xiaomi may have with us and the underwriters and applicable securities laws, Kingsoft Group or Xiaomi may decide to sell all or a portion of the shares that they hold in our company to a third party, including to one of our competitors, thereby giving that third party substantial influence over our business and our affairs. Such a sale could be contrary to the interests of our employees or our other shareholders or holders of the ADS. |
• | Developing business relationships with Kingsoft Group’s and Xiaomi’s competitors. We may be limited in our ability to do business with Kingsoft Group’s and Xiaomi’s competitors, which may limit our ability to serve the best interests of our company and our other shareholders or holders of the ADS. |
• | Our directors may have conflicts of interest. Certain of our directors are also employees of Kingsoft Group or Xiaomi. Despite our policies in relation to conflict of interests, we cannot assure you that these relationships will not create, or appear to create, conflicts of interest when these persons are faced with decisions with potentially different implications for Kingsoft Group, Xiaomi and us. |
• | revoking the business licenses and/or operating licenses of such entities; |
• | discontinuing or placing restrictions or onerous conditions on our operation through any transactions between our PRC subsidiaries and the VIEs; |
• | imposing fines, confiscating the income from our PRC subsidiaries or the VIEs, or imposing other requirements with which our PRC subsidiaries or the VIEs may not be able to comply; |
• | requiring us to restructure our ownership structure or operations, including terminating the contractual arrangements with the VIEs; or |
• | deregistering the equity pledges of the VIEs, which in turn would affect our ability to consolidate, derive economic interests from, or exert effective control over the VIEs. |
• | macro-economic factors in China |
• | variations in our revenues, earnings, or cash flow; |
• | fluctuations in operating metrics; |
• | announcements of new investments, acquisitions, strategic partnerships, capital raisings or capital commitments or joint ventures by us or our competitors; |
• | announcements of new offerings, solutions and services and expansions by us or our competitors; |
• | changes in financial estimates by securities analysts; |
• | detrimental negative publicity about us, our services or our industry; |
• | announcements of new regulations, rules or policies relevant to our business; |
• | additions or departures of key personnel; |
• | allegations of a lack of effective internal control over financial reporting, inadequate corporate governance policies, or allegations of fraud, among other things, involving China-based issuers; |
• | our major shareholders’ business performance and reputation; |
• | release of lock-up or other transfer restrictions on our outstanding equity securities or sales of additional equity securities; |
• | regulatory developments affecting us or our industry; |
• | political or trade tensions between the United States and China; |
• | actual or potential litigation or regulatory investigations; |
• | any share repurchase program; |
• | proceedings instituted by the SEC against PRC-based accounting firms, including our independent registered public accounting firm; |
• | fluctuations of exchange rates between Renminbi and the U.S. dollar; and |
• | sales or perceived potential sales of additional ADSs. |
• | the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K; |
• | the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act; |
• | the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and |
• | the selective disclosure rules by issuers of material nonpublic information under Regulation FD. |
ITEM 4 |
INFORMATION ON THE COMPANY |
4.A. |
History and Development of the Company |
Taxation Scenario (1) |
||||
Statutory Tax and Standard Rates |
||||
Hypothetical pre-tax earnings(2) |
100 | % | ||
Tax on earnings at statutory rate of 25% |
(25 | )% | ||
Net earnings available for distribution |
75 | % | ||
Withholding tax at standard rate of 10% (3) |
(7.5 | )% | ||
Net distribution to Parent/Shareholders |
67.5 | % |
(1) | The tax calculation has been simplified for the purpose of this example. The hypothetical book pre-tax earnings amount, which does not consider timing differences, is assumed to equal the taxable income in the PRC. |
(2) | Under the terms of the VIE agreements, sales service fees are charged by our PRC subsidiaries to the VIEs and their subsidiaries. For all the periods presented, these fees are recognized as cost of revenues of the VIEs and their subsidiaries with a corresponding amount as service income by our PRC subsidiaries and eliminated in consolidation. For income tax purposes, our PRC subsidiaries, VIEs and their subsidiaries file income taxes on a separate company basis. The fees paid are recognized as a tax deduction by the VIEs and their subsidiaries and as income by our PRC subsidiaries and are tax neutral. Upon the instance that the VIEs and their subsidiaries reach a cumulative level of profitability, because our PRC subsidiaries occupy certain trademarks and copyrights, the agreements will be updated to reflect charges for such trademarks and copyrights usage on the basis that they will qualify for tax neutral treatment. |
(3) | China’s Enterprise Income Tax Law imposes a withholding income tax of 10% on dividends distributed by a Foreign Invested Enterprises (“FIE”) to its immediate holding company outside of China. A lower withholding income tax rate of 5% is applied if the FIE’s immediate holding company is registered in Hong Kong or other jurisdictions that have a tax treaty arrangement with China, subject to a qualification review at the time of the distribution. For the purpose of this hypothetical example, this table has been prepared based on a taxation scenario under which the full withholding tax would be applied. |
For the Year Ended December 31, 2019 |
||||||||||||||||||||
Kingsoft Cloud |
Subsidiaries |
VIEs and their subsidiaries |
Eliminations |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Total revenues (1) |
— | 129,889 | 3,882,352 | (55,888 | ) | 3,956,353 | ||||||||||||||
Net loss (2) |
(1,111,199 | ) | (213,519 | ) | (970,344 | ) | 1,183,863 | (1,111,199 | ) |
For the Year Ended December 31, 2020 |
||||||||||||||||||||
Kingsoft Cloud |
Subsidiaries |
VIEs and their subsidiaries |
Eliminations |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Total revenues (1) |
— | 474,262 | 6,377,158 | (274,113 | ) | 6,577,307 | ||||||||||||||
Net loss (2) |
(962,259 | ) | (48,756 | ) | (922,908 | ) | 971,725 | (962,198 | ) |
For the Year Ended December 31, 2021 |
||||||||||||||||||||
Kingsoft Cloud |
Subsidiaries |
VIEs and their subsidiaries |
Eliminations |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Total revenues (1) |
— | 1,347,970 | 7,972,143 | (259,329 | ) | 9,060,784 | ||||||||||||||
Net loss (2) |
(1,588,712 | ) | 51,751 | (1,556,904 | ) | 1,502,109 | (1,591,756 | ) |
(1) | The eliminations are mainly related to the service fees charged between our subsidiaries and VIEs and their subsidiaries. |
(2) | The eliminations are mainly related to the investment loss picked up from subsidiaries. |
As of December 31, 2020 |
||||||||||||||||||||
Kingsoft Cloud |
Subsidiaries |
VIEs and their subsidiaries |
Eliminations |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Current Assets: |
||||||||||||||||||||
Cash and cash equivalents |
68,012 | 1,927,154 | 1,429,508 | — | 3,424,674 | |||||||||||||||
Restricted cash |
— | — | — | — | — | |||||||||||||||
Accounts receivable, net |
— | 76,558 | 2,258,313 | — | 2,334,871 | |||||||||||||||
Short-term investments |
217,448 | 2,475,571 | — | — | 2,693,019 | |||||||||||||||
Prepayments and other assets |
266,280 | — | 630,121 | (9,315 | ) | 887,086 | ||||||||||||||
Amounts due from related parties |
— | 793 | 204,275 | — | 205,068 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total current assets |
551,740 |
4,480,076 |
4,522,217 |
(9,315 |
) |
9,544,718 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-current assets: |
||||||||||||||||||||
Property and equipment, net |
— | 229,170 | 1,727,620 | — | 1,956,790 | |||||||||||||||
Intangible assets, net |
— | 1,593 | 14,980 | — | 16,573 | |||||||||||||||
Prepayments and other assets |
— | 1,846 | 9,978 | — | 11,824 | |||||||||||||||
Goodwill |
— | — | — | — | — | |||||||||||||||
Equity investments |
— | 40,332 | 86,251 | — | 126,583 | |||||||||||||||
Investments in subsidiaries |
— | — | — | — | — | |||||||||||||||
Amounts due from related parties |
— | 1,046 | 4,712 | — | 5,758 | |||||||||||||||
Operating lease right-of-use |
— | 56,630 | 210,338 | — | 266,968 | |||||||||||||||
Deferred tax assets |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-current assets |
— |
330,617 |
2,053,879 |
— |
2,384,496 |
|||||||||||||||
Amounts due from subsidiaries of the Group |
7,983,060 |
12,076,587 |
1,631,592 |
(21,691,239 |
) |
— |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
8,534,800 |
16,887,280 |
8,207,688 |
(21,700,554 |
) |
11,929,214 |
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Current Liabilities: |
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