# EDGAR Filing Document

**Accession Number:** 0001795589
**File Stem:** 0001104659-26-047100
**Filing Date:** 2026-4
**Character Count:** 1002616
**Document Hash:** 4c8b0719b7f626bfcd989cb2b3d9fc16
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-047100.hdr.sgml**: 20260423

**ACCESSION NUMBER**: 0001104659-26-047100

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 140

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260423

**DATE AS OF CHANGE**: 20260423

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Kingsoft Cloud Holdings Ltd
- **CENTRAL INDEX KEY:** 0001795589
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39278
- **FILM NUMBER:** 26885394

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** BLDG D, XIAOMI SCIENCE & TECHNOLOGY PARK
- **STREET 2:** NO. 33 XIERQI MIDDLE ROAD
- **CITY:** HAIDIAN DISTRICT, BEIJING
- **PROVINCE COUNTRY:** F4
- **ZIP:** 00000
- **BUSINESS PHONE:** 86 10 8232 5655

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** BLDG D, XIAOMI SCIENCE & TECHNOLOGY PARK
- **STREET 2:** NO. 33 XIERQI MIDDLE ROAD
- **CITY:** HAIDIAN DISTRICT, BEIJING
- **PROVINCE COUNTRY:** F4
- **ZIP:** 00000

?xml version='1.0' encoding='ASCII'? Kingsoft Cloud Holdings Ltd_December 31, 2025

[**Table of Contents**](#TOC)

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 20-F** 

**(Mark One)**

☐ **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the fiscal year ended December 31, 2025.**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

☐ **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Date of event requiring this shell company report**

**For the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

**Commission file number: 001-39278**

## Kingsoft Cloud Holdings Limited
**(Exact name of Registrant as specified in its charter)**

**N/A**

**(Translation of Registrant's name into English)**

**Cayman Islands**

**(Jurisdiction of incorporation or organization)**

**Building D, 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)**

**Yi Li**

**Chief Financial Officer**

**Tel: +86 10 6292 7777**

**E-mail:ksc-ir@kingsoft.com**

**Building D, Xiaomi Science and Technology Park, No. 33 Xierqi Middle Road, Haidian District**

**Beijing, 100085, the People's Republic of China**

**(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)**

**Securities registered or to be registered pursuant to Section 12(b) of the Act.**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| **American depositary shares, each ADS represents 15 ordinary shares, par valueUS$0.001 per share** | **KC** | **The Nasdaq Global Select Market** |
| **Ordinary shares, par value US$0.001 per share\*** | **N/A** | **The Nasdaq Global Select Market** |

---

\*Not for trading, but only in connection with the listing of the American depositary shares on the Nasdaq Global Select Market.

[**Table of Contents**](#TOC)

**Securities registered or to be registered pursuant to Section 12(g) of the Act.**

**None**

**(Title of Class)**

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.**

**None**

**(Title of Class)**

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report.

There were 4,479,857,667 ordinary shares, par value $0.001 per share as of December 31, 2025.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No ☐

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer &nbsp;&nbsp;&nbsp;&nbsp; ☒ &nbsp;&nbsp;&nbsp;&nbsp; Accelerated filer &nbsp;&nbsp;&nbsp;&nbsp; ☐ &nbsp;&nbsp;&nbsp;&nbsp; Non-accelerated filer &nbsp;&nbsp;&nbsp;&nbsp; ☐ <br> &nbsp;&nbsp;&nbsp;&nbsp; Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards † provided pursuant to Section 13(a) of the Exchange Act. ☐

† 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.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☒ International Financial Reporting Standards as issued &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Other ☐ <br> by the International Accounting Standards Board ☐ &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

☐ Item 17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No ☒

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No ☐

------

[**Table of Contents**](#TOC)

#### **TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| [INTRODUCTION](#INTRODUCTION_559999) | [INTRODUCTION](#INTRODUCTION_559999) | 1 |
| [FORWARD-LOOKING INFORMATION](#FORWARDLOOKINGINFORMATION_264227) | [FORWARD-LOOKING INFORMATION](#FORWARDLOOKINGINFORMATION_264227) | 3 |
| [PART I](#PARTI_778133) | [PART I](#PARTI_778133) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 1](#_ITEM_1_IDENTITY) | [IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](#_ITEM_1_IDENTITY) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 2](#ITEM2OFFERSTATISTICSANDEXPECTEDTIMETABLE) | [OFFER STATISTICS AND EXPECTED TIMETABLE](#ITEM2OFFERSTATISTICSANDEXPECTEDTIMETABLE) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 3](#ITEM3KEYINFORMATION_995869) | [KEY INFORMATION](#ITEM3KEYINFORMATION_995869) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 4](#ITEM4INFORMATIONONTHECOMPANY_946189) | [INFORMATION ON THE COMPANY](#ITEM4INFORMATIONONTHECOMPANY_946189) | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 4A.](#ITEM4AUNRESOLVEDSTAFFCOMMENTS_760473) | [UNRESOLVED STAFF COMMENTS](#ITEM4AUNRESOLVEDSTAFFCOMMENTS_760473) | 119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 5](#ITEM5OPERATINGANDFINANCIALREVIEWANDPROSP) | [OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#ITEM5OPERATINGANDFINANCIALREVIEWANDPROSP) | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 6](#ITEM6DIRECTORSSENIORMANAGEMENTANDEMPLOYE) | [DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#ITEM6DIRECTORSSENIORMANAGEMENTANDEMPLOYE) | 139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 7.](#ITEM7MAJORSHAREHOLDERSANDRELATEDPARTYTRA) | [MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#ITEM7MAJORSHAREHOLDERSANDRELATEDPARTYTRA) | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 8.](#ITEM8FINANCIALINFORMATION_714714) | [FINANCIAL INFORMATION](#ITEM8FINANCIALINFORMATION_714714) | 152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 9.](#ITEM9THEOFFERANDLISTING_962833) | [THE OFFER AND LISTING](#ITEM9THEOFFERANDLISTING_962833) | 152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 10.](#ITEM10ADDITIONALINFORMATION_920532) | [ADDITIONAL INFORMATION](#ITEM10ADDITIONALINFORMATION_920532) | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 11.](#ITEM11QUANTITATIVEANDQUALITATIVEDISCLOSU) | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#ITEM11QUANTITATIVEANDQUALITATIVEDISCLOSU) | 163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 12.](#ITEM12DESCRIPTIONOFSECURITIESOTHERTHANEQ) | [DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#ITEM12DESCRIPTIONOFSECURITIESOTHERTHANEQ) | 164 |
| [PART II](#PARTII_295029) |  | 169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 13.](#ITEM13ITEMDEFAULTSDIVIDENDARREARAGESANDD) | [DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#ITEM13ITEMDEFAULTSDIVIDENDARREARAGESANDD) | 169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 14.](#ITEM14MATERIALMODIFICATIONSTOTHERIGHTSOF) | [MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#ITEM14MATERIALMODIFICATIONSTOTHERIGHTSOF) | 169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 15.](#ITEM15CONTROLSANDPROCEDURES_549873) | [CONTROLS AND PROCEDURES](#ITEM15CONTROLSANDPROCEDURES_549873) | 169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.A.](#ITEM16AAUDITCOMMITTEEFINANCIALEXPERT_478) | [AUDIT COMMITTEE FINANCIAL EXPERT](#ITEM16AAUDITCOMMITTEEFINANCIALEXPERT_478) | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.B.](#ITEM16BCODEOFETHICS_231801) | [CODE OF ETHICS](#ITEM16BCODEOFETHICS_231801) | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.C.](#ITEM16CPRINCIPALACCOUNTANTFEESANDSERVICE) | [PRINCIPAL ACCOUNTANT FEES AND SERVICES](#ITEM16CPRINCIPALACCOUNTANTFEESANDSERVICE) | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.D.](#ITEM16DEXEMPTIONSFROMTHELISTINGSTANDARDS) | [EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES](#ITEM16DEXEMPTIONSFROMTHELISTINGSTANDARDS) | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.E.](#ITEM16EPURCHASESOFEQUITYSECURITIESBYTHEI) | [PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS](#ITEM16EPURCHASESOFEQUITYSECURITIESBYTHEI) | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.F.](#ITEM16FCHANGEINREGISTRANTSCERTIFYINGACCO) | [CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT](#ITEM16FCHANGEINREGISTRANTSCERTIFYINGACCO) | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.G.](#ITEM16GCORPORATEGOVERNANCE_662456) | [CORPORATE GOVERNANCE](#ITEM16GCORPORATEGOVERNANCE_662456) | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.H.](#ITEM16HMINESAFETYDISCLOSURE_153191) | [MINE SAFETY DISCLOSURE](#ITEM16HMINESAFETYDISCLOSURE_153191) | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.I.](#ITEM16IDisclosureRegardingForeignJurisdi) | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#ITEM16IDisclosureRegardingForeignJurisdi) | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.J.](#ITEM16J) | [INSIDER TRADING POLICIES](#ITEM16J) | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 16.K](#ITEM16KCYBERSECURITYBelowisbasedontheCom) | [CYBERSECURITY](#ITEM16KCYBERSECURITYBelowisbasedontheCom) | 172 |
| [PART III](#PARTIII_11274) |  | 173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 17.](#ITEM17FINANCIALSTATEMENTS_768899) | [FINANCIAL STATEMENTS](#ITEM17FINANCIALSTATEMENTS_768899) | 173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 18.](#ITEM18FINANCIALSTATEMENTS_19011) | [FINANCIAL STATEMENTS](#ITEM18FINANCIALSTATEMENTS_19011) | 173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ITEM 19.](#ITEM19EXHIBITSCompanyLegalteamtoadviseif) | [EXHIBITS](#ITEM19EXHIBITSCompanyLegalteamtoadviseif) | 173 |

---

i

[**Table of Contents**](#TOC)

#### INTRODUCTION
Except where the context otherwise indicates and for the purpose of this annual report only:

● "ADSs" refers to the American depositary shares, each representing 15 ordinary shares;

● "AI" refers to artificial intelligence;

● "AIGC" refers to artificial intelligence generated content;

● "China," "Chinese Mainland," or "PRC" refers to the People's Republic of China which, for the purpose of this annual report and for geographical reference only, excludes Hong Kong, Macao Special Administrative Region of the People's Republic of China, and Taiwan 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;

● "the Group" refers to Kingsoft Cloud Holdings Limited, its subsidiaries and the VIEs;

● "Kingsoft Cloud HNYP Information" refers to Hainan Yangpu Kingsoft Cloud Information Technology Co., Ltd., one of our wholly foreign owned entities, or WFOEs;

● "Hong Kong" or "HK" refers to the Hong Kong Special Administrative Region of the PRC;

● "Hong Kong Listing Rules" refers to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as amended, supplemented or otherwise modified from time to time;

● "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 Cloud Shenzhen" refers to Kingsoft Cloud (Shenzhen) Edge Computing Technology Co., Ltd. (formerly known as Shenzhen Yunfan Acceleration Technology Co., Ltd.) and its subsidiary;

● "Kingsoft Corporation" refers to Kingsoft Corporation Limited, an exempted limited liability company incorporated in the British Virgin Islands on March 20, 1998 and discontinued in the British Virgin Islands and continued into the Cayman Islands on November 15, 2005, with its shares listed on The Stock Exchange of Hong Kong Limited;

● "Kingsoft Group" refers to Kingsoft Corporation Limited (HKEx: 3888), our largest shareholder, and its subsidiaries and consolidated affiliated entities;

● "Nanjing Qianyi" refers to Nanjing Qianyi Shixun Information Technology Co., Ltd., one of the subsidiaries of a VIE;

[**Table of Contents**](#TOC)

● "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;

● "QY Data" refers to Lingqiong Shunlian (Qingyang) Data Technology Co., Ltd. (formerly known as Kingsoft Cloud (Qingyang) Data Information Technology Co., Ltd.), one of the subsidiaries of a VIE;

● "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;

● "SEHK" refers to The Stock Exchange of Hong Kong Limited;

● "Shanghai Jinxun Ruibo" refers to Shanghai Jinxun Ruibo Network Technology Co., Ltd., one of the subsidiaries of a VIE;

● "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;

● "VAT License" refers to the business operation license for value-added telecommunication services;

● "we," "us," "our company," the "Company," and "our" refer to Kingsoft Cloud Holdings Limited, a Cayman Islands company and its subsidiaries;

● "Wuhan Kingsoft Cloud" refers to Wuhan Kingsoft Cloud Information Technology Co., Ltd., one of the subsidiaries of a VIE;

● "Xiaomi" or "Xiaomi Group" refers to Xiaomi Corporation (HKEx: 1810), one of our shareholders, and its subsidiaries and VIEs; and

● "Zhuhai Kingsoft Cloud" refers to Zhuhai Kingsoft Cloud Technology Co., Ltd., a VIE.

We have made rounding adjustments to some of the figures included in this annual report. Accordingly, numerical figures shown as totals or percentages may not be an arithmetic calculation of the figures that preceded them.

Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi in this annual report are made at RMB6.9931 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2025. We make no representation that any Renminbi or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or Renminbi, as the case may be, at any particular rate, the rates stated below, or at all.

[**Table of Contents**](#TOC)

#### FORWARD-LOOKING INFORMATION
This annual report contains statements that constitute forward-looking statements. All statements other than statements of historical facts are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.

You can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to," "could," "continue," "potential" or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include, but are not limited to, statements about:

● 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;

● the expected growth of the cloud service market in China;

● our ability to monetize our customer base;

● general economic and business conditions in China and globally; and

● assumptions underlying or related to any of the foregoing.

You should read thoroughly this annual report and the documents that we refer to in this annual report with the understanding that our actual future results may be materially different from and worse than what we expect. Other sections of this annual report include additional factors which could adversely impact our business and financial performance. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.

You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

This annual report also contains statistical data and estimates that we obtained from industry publications and reports generated by third-party providers of market intelligence. These industry publications and reports generally indicate that the information contained therein was obtained from sources believed to be reliable, but do not guarantee the accuracy and completeness of such information. Although we believe that the publications and reports are reliable, we have not independently verified the data.

[**Table of Contents**](#TOC)

#### PART I
Kingsoft Cloud Holdings Limited is a Cayman Islands holding company with no business operations. It conducts its operations in China through its PRC subsidiaries and variable interest entities, or the VIEs, and their subsidiaries. However, we and our shareholders do not and are not legally permitted to have any equity interests in the VIEs as current PRC laws and regulations restrict foreign investment in companies that engage in value-added telecommunication services. As a result, we operate relevant businesses in China through certain contractual arrangements with the VIEs. Through these contractual arrangements, the nominee shareholders of the VIEs effectively assigned all of their voting rights underlying their equity interests in the VIEs to the Company, and therefore, the Company has the power to direct the activities of the VIEs that most significantly impact its economic performance. The Company is obligated to absorb losses of the variable interest entities that could potentially be significant to the variable interest entities through providing unlimited financial support to the variable interest entities or is entitled to receive economic benefits from the variable interest entities that could potentially be significant to the variable interest entities through the exclusive technology consulting and service fees. As a result of these contractual arrangements, the Company is determined to be the primary beneficiary of these variable interest entities only for accounting purposes and we consolidate these variable interest entities under U.S. GAAP. This structure allows us to be considered the primary beneficiary of the VIEs for accounting purposes, which serves the purpose of consolidating the VIEs' operating results in our financial statements under U.S. GAAP, to the extent the conditions for consolidation of VIEs under U.S. GAAP are satisfied. This structure also provides contractual exposure to foreign investment in such companies. As of the date of this annual report, to the best knowledge of our company, our directors and management, and the VIE agreements have not been tested in a court of law in the PRC. The VIEs are owned by certain nominee shareholders, not us. Investors in the ADSs are purchasing equity securities of a Cayman Islands holding company rather than equity securities issued by our subsidiaries and the VIEs. Investors who are non-PRC residents may never directly hold equity interests in the VIEs under current PRC laws and regulations. As used in this annual report, "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 operations and consolidated financial information, its consolidated variable interest entities, or VIEs. We refer to Zhuhai Kingsoft Cloud and Kingsoft Cloud Information as the VIEs in the context of describing their activities and contractual arrangements with us. The following diagram illustrates our corporate structure as of the date of this annual report, including our significant subsidiaries and significant variable interest entities, and their equity interest holding.

![Graphic](kc-20251231x20f007.jpg)

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Zhuhai Kingsoft Cloud is held as to 79.60% and 20.40% by Beijing Kingsoft Digital Entertainment Technology Co., Ltd. and Ms. Qiu Weiqin, who is a family member of a director of Kingsoft Corporation, respectively, as registered owners. Beijing Kingsoft Digital Entertainment Technology Co., Ltd. is ultimately owned as to 80% and 20% by Ms. Qiu Weiqin and Ms. Lei Peili who is a family member of Mr. Lei Jun, the chairman of our Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Kingsoft Cloud Information is held as to 80% and 20% by Ms. Qiu Weiqin and Mr. Tao Zou, our executive director and acting CEO, respectively, as registered owners.

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Our corporate structure involves unique risks to investors in the ADSs. In 2023, 2024 and 2025, the amount of revenues generated by the VIEs accounted for 65%, 67% and 69%, respectively, of our total net revenues. As of December 31, 2024 and 2025, total assets of the VIEs, excluding amounts due from other companies in the Group, equaled to 52% and 57% of our consolidated total assets as of the same dates, respectively. If the PRC government deems that our contractual arrangements with the VIEs do not comply with PRC regulatory restrictions on foreign investment in the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, we could be subject to material penalties or be forced to relinquish our interests in those operations or otherwise significantly change our corporate structure. We and our investors face significant uncertainty about potential future actions by the PRC government that could affect the legality and enforceability of the contractual arrangements with the VIEs and, consequently, significantly affect the financial performance of our company as a whole. The ADSs may decline in value or become worthless, if we are unable to claim our contractual control rights over the assets of the VIEs that conduct substantially all of our operations in China. See "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Corporate Structure and the Contractual Arrangements" for detailed discussion.

We face various legal and operational risks and uncertainties as a company based in and primarily operating in China. The PRC government may promulgate new laws and regulations that could impact our operations from time to time, or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change in our operations and/or the value of our securities. For example, China's government has historically promulgated new laws and regulations, such as those related to the use of VIEs and cybersecurity, data privacy or anti-monopoly concerns, which have or may impact the ability of us and/or the VIEs to conduct business, accept foreign investments, or list on a U.S. or other foreign exchange. Therefore, we face risks associated with regulatory approvals of offshore offerings, anti-monopoly regulatory actions, cybersecurity and data privacy, as well as the lack of inspection from the Public Company Accounting Oversight Board (United States), or the PCAOB, on our auditors in the future. The PRC government may develop political and economic policies as the government deems appropriate to further achieve regulatory, political and societal goals. The PRC government may also intervene with or influence our operations if we fail to comply with applicable PRC laws, regulations or regulatory requirements. Any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless.

For example, the PRC Data Security Law and the PRC Personal Information Protection Law posed additional challenges to our cybersecurity and data privacy compliance. The Cybersecurity Review Measures issued by the CAC and several other PRC governmental authorities in December 2021, as well as the Regulations for the Administration of Network Data Security published by the Cyberspace Administration of China for public comments in November 2024, exposes uncertainties and potential additional restrictions on China-based overseas-listed companies like us. If the interpretation and application of current and future laws, regulations and rules in Chinese Mainland mandate clearance of cybersecurity review and other specific actions to be completed by us, we face uncertainties as to whether such clearance can be timely obtained, the failure of which may subject us to penalties, which could materially and adversely affect our business and results of operations and the price of the ADSs. See "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—We face challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data protection, and user attitude toward data privacy and protection. Many of these laws and regulations are subject to changes and uncertain interpretation, and any actual or alleged failure to comply with related laws and regulations regarding cybersecurity, information security, data privacy and protection could materially and adversely affect our business and results of operations."

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On February 17, 2023, the China Securities Regulatory Commission, or the CSRC, promulgated the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies ("Overseas Listing Trial Measures") and five relevant guidelines, which became effective on March 31, 2023. Pursuant to the Overseas Listing Trial Measures, a filing-based regulatory system will be applied to both "direct" and "indirect" overseas offering or listing of PRC domestic companies. As such, in connection with our future overseas securities offering or listing, we may be required to fulfill filing, reporting procedures or other administrative procedures with the CSRC or other PRC government authorities. In addition, we cannot guarantee that new rules or regulations promulgated in the future will not impose any additional requirement on us or otherwise to tighten the regulations on PRC companies seeking overseas offering or listing. Any failure to obtain the relevant approval or complete the filings and other relevant regulatory procedures may subject us to regulatory actions or other penalties from the CSRC or other PRC regulatory authorities, which may have a material adverse effect on our business, operations or financial conditions. See "Item 3. Key Information— 3.D. Risk Factors—Risks Relating to Doing Business in China— 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."

Trading in our securities on Nasdaq may be prohibited under the Holding Foreign Companies Accountable Act (the "HFCAA"), as amended by the Consolidated Appropriation Act, 2023, if the PCAOB determines that it is unable to inspect or investigate completely our auditor for two consecutive years. On December 16, 2021, the Public Company Accounting Oversight Board (the "PCAOB") issued the HFCAA Determination Report to notify the SEC of its determinations that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in Chinese Mainland and Hong Kong (the "2021 Determinations"), including our auditor. The inability of the PCAOB to conduct inspections in the past also deprived our investors of the benefits of such inspections. On December 15, 2022, the PCAOB announced that it was able to conduct inspections and investigations completely of PCAOB-registered public accounting firms headquartered in Chinese Mainland and Hong Kong in 2022. The PCAOB vacated its previous 2021 Determinations accordingly. As a result, we were not at risk of having our securities subject to a trading prohibition under the HFCAA unless a new determination if made by the PCAOB. However, whether the PCAOB will continue to conduct inspections and investigations completely to its satisfaction of PCAOB-registered public accounting firms headquartered in Chinese Mainland and Hong Kong is subject to uncertainty and depends on a number of factors out of our, and our auditor's, control, including positions taken by authorities of the PRC. The PCAOB is expected to continue to demand complete access to inspections and investigations against accounting firms headquartered in Chinese Mainland and Hong Kong in the future and states that it has already made plans to resume regular inspections going forward. The PCAOB is required under the HFCAA to make its determination on an annual basis with regards to its ability to inspect and investigate completely accounting firms based in the Chinese Mainland and Hong Kong. The possibility of being a "Commission-Identified Issuer" and risk of delisting could continue to adversely affect the trading price of our securities. If the PCAOB determines in the future that it no longer has full access to inspect and investigate accounting firms headquartered in Chinese Mainland and Hong Kong and we continue to use such accounting firm to conduct audit work, we would be identified as a "Commission-Identified Issuer" under the HFCAA following the filing of the annual report for the relevant fiscal year, and if we were so identified for two consecutive years, trading in our securities on U.S. markets would be prohibited. For details, see "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Doing Business in China—Trading in our securities on U.S. markets, including the Nasdaq, may be prohibited under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB determines that it is unable to inspect or investigate completely our auditor for two consecutive years."

Furthermore, the PRC anti-monopoly regulators have promulgated new anti-monopoly and competition laws and regulations or related drafts for public comments from time to time and strengthened the enforcement of these laws and regulations. There remain uncertainties as to how the laws, regulations and guidelines promulgated will be implemented or whether the relevant drafts will be adopted in the current form ultimately, and whether these laws, regulations and guidelines will have a material impact on our business, financial condition, results of operations and prospects. We cannot assure you that our business operations comply with such regulations and authorities' requirements in all respects. If any non-compliance were identified by relevant authorities and determined against us, we may be subject to fines and other penalties. See "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—We and our business partners with which we collaborate are subject to anti-corruption, anti-bribery, anti-money laundering, and similar laws, and noncompliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation."

The PRC government has published new policies that significantly affected certain industries such as the education and internet industries (where some of our clients operate), and we cannot rule out the possibility that it will in the future release regulations or policies regarding our industry that could adversely affect our business, financial condition and results of operations. Any such action, once taken by the PRC government, could cause the value of our securities to significantly decline or in extreme cases, become worthless.

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| **ITEM 1** | **IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS** |

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Not applicable.

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| **ITEM 2** | **OFFER STATISTICS AND EXPECTED TIMETABLE** |

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Not applicable.

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| **ITEM 3** | **KEY INFORMATION** |

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**3. A.** **[Reserved]**

**3. B.** **Capitalization and Indebtedness**

Not applicable.

**3. C.** **Reason for the Offer and Use of Proceeds**

Not applicable.

**3. D.** **Risk Factors**

We face various legal and operational risks and uncertainties as a company based in and primarily operating in China. The PRC government may intervene or influence our operations if we fail to comply with applicable PRC laws, regulations or regulatory requirements, or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change in our operations and/or the value of the securities we are registering for sale. For example, laws and regulations promulgated by China's government, such as those related to the use of VIEs and cybersecurity, data privacy or anti-monopoly concerns, have or may impact the ability of us and/or the VIEs to conduct business, accept foreign investments, or list on a U.S. or other foreign exchange. Therefore, we face risks associated with regulatory approvals of offshore offerings, anti-monopoly regulatory actions, cybersecurity and data privacy, as well as the lack of inspection from the Public Company Accounting Oversight Board (United States), or the PCAOB, on our auditors in the future. The PRC government may also regulate our operations in accordance with relevant PRC laws, regulations and rules as the government deems appropriate to further achieve regulatory, political and societal goals. Any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless.

#### Permissions Required from the PRC Authorities for Our Operations and Securities Issuances to Foreign Investors
Our operations in China are governed by PRC laws and regulations. We are subject to risks relating to the requirements on the licenses, approvals, registrations, filings and other permissions to (i) operate our and the VIEs' businesses, and (ii) to issue securities to foreign investors. For details, see "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—Certain of our products and solutions are subject to telecommunications-related regulations, and future legislative or regulatory actions could adversely affect our business, results of operations and financial condition," "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—Failure to comply with laws and regulations applicable to our business could subject us to fines and penalties and could also cause us to lose customers or otherwise harm our business," " Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—We face challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data protection, and user attitude toward data privacy and protection. Many of these laws and regulations are subject to change and uncertain interpretation, and any actual or alleged failure to comply with related laws and regulations regarding cybersecurity, information security, data privacy and protection could materially and adversely affect our business and results of operations," and "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Doing Business in China—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."

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After consulting our PRC legal counsel, we believe our PRC subsidiaries and the VIEs have obtained all necessary licenses and approvals required for our operations in China, including business licenses and VAT licenses for internet data center services, internet access services, domestic internet protocol virtual private network services, content delivery network services and information services.

Furthermore, as advised by our PRC legal counsel, in connection with our previous issuance of securities to foreign investors, under currently effective PRC laws and regulations, as of the date of this annual report, we are not aware of, after due and careful enquiry, including consultation with our PRC legal counsel, any PRC laws or regulations which explicitly require us, our PRC subsidiaries or the VIEs to obtain any approval or permission from the CSRC, the CAC or any other PRC governmental authorities, nor have we, our PRC subsidiaries and the VIEs received any formal inquiry, notice, warning or penalty from any PRC governmental authorities in connection with requirements of obtaining such approval or permission, under any currently effective PRC laws, regulations and regulatory rules.

Given the uncertainties of interpretation and implementation of relevant laws and regulations and the enforcement practice by relevant government authorities, we may be required to obtain additional licenses, permits, filings, or approvals for our business operations in the future. If our PRC subsidiaries or the VIEs are found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits, approvals or filings, the relevant PRC regulatory authorities would have discretion to take action in dealing with such violations or failures. In addition, if we had inadvertently concluded that such approvals, permits, registrations or filings were not required, or if applicable laws, regulations or interpretations change in a way that requires our PRC subsidiaries and the VIEs to obtain such approval, permits, registrations or filings in the future, our PRC subsidiaries and the VIEs may be unable to obtain such necessary approvals, permits, registrations or filings in a timely manner, or at all, and such approvals, permits, registrations or filings may be rescinded even if obtained. Any such circumstance may subject our PRC subsidiaries and the VIEs to fines and other regulatory, civil or criminal liabilities, and our PRC subsidiaries and the VIEs may be ordered by the competent government authorities to suspend relevant operations, which will materially and adversely affect our business operation. Furthermore, our PRC subsidiaries and the VIEs may be subject to regular inspections, examinations, inquiries or audits by regulatory authorities, and an adverse outcome of such inspections, examinations, inquiries or audits may result in the loss or non-renewal of the relevant licenses and approvals. Moreover, the criteria used in reviewing applications for, or renewals of licenses and approvals may change from time to time, and there can be no assurance that our PRC subsidiaries and the VIEs will be able to meet new criteria that may be imposed to obtain or renew the necessary licenses and approvals. Many of such licenses and approvals are material to the operation of our business, and if our PRC subsidiaries or the VIEs fail to maintain or renew material licenses and approvals, our ability to conduct our business could be materially impaired. Furthermore, if the interpretation or implementation of existing laws and regulations change, or new regulations come into effect, requiring our PRC subsidiaries, the VIEs or parties on whom our PRC subsidiaries and the VIEs rely to obtain any additional permits, licenses or certificates that were previously not required to operate our business, there can be no assurance that our PRC subsidiaries, the VIEs or parties on whom we rely will successfully obtain such permits, licenses or certificates.

**Enforceability of Civil Liability**

We are a company incorporated under the laws of the Cayman Islands, we conduct substantially all of our operations in China, and substantially all of our assets are located in China. In addition, all our senior executive officers reside within China for a significant portion of time and most are PRC nationals. As a result, it may be difficult or impossible for you to bring an action against us or against these individuals in the United States in the event that you believe that your rights have been infringed under the U.S. federal securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and of the PRC may render you unable to enforce a judgment against our assets or the assets of our directors and officers.

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There is no statutory enforcement in the Cayman Islands of judgments obtained in the federal or state courts of the United States (and the Cayman Islands are not a party to any treaties for the reciprocal enforcement or recognition of such judgments), however, a judgment obtained in such jurisdiction will be recognized and enforced in the courts of the Cayman Islands, at common law, without any re-examination of the merits of the underlying dispute by an action commenced on the foreign judgment debt in the Grand Court of the Cayman Islands, provided such judgment (a) is given by a foreign court of competent jurisdiction, (b) imposes on the judgment debtor a liability to pay a liquidated sum for which the judgment has been given, (c) is final, (d) is not in respect of taxes, a fine or a penalty, (e) was not obtained in a manner and is not of a kind the enforcement of which is contrary to natural justice or the public policy of the Cayman Islands. However, the Cayman Islands courts are unlikely to enforce a judgment obtained from the U.S. courts under civil liability provisions of the U.S. federal securities law if such judgment is determined by the courts of the Cayman Islands to give rise to obligations to make payments that are penal or punitive in nature. Because such a determination has not yet been made by a court of the Cayman Islands, it is uncertain whether such civil liability judgments from U.S. courts would be enforceable in the Cayman Islands. A Cayman Islands court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

The recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on principles of reciprocity between jurisdictions. China does not have any treaties or other forms of reciprocity with the United States that provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, the PRC courts will not enforce a foreign judgment against us or our director and officers if they decide that the judgment violates the basic principles of PRC laws or national sovereignty, security or public interest. As a result, it is uncertain whether and on what basis a PRC court would enforce a judgment rendered by a court in the United States.

In addition, a judgment of United States courts will not be directly enforced in Hong Kong as if it were a judgement of the Hong Kong court. There are currently no treaties or other arrangements providing for reciprocal enforcement of foreign judgments between Hong Kong and the United States. There is uncertainty as to whether the courts of Hong Kong would (i) recognize or enforce judgments of United States courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States or (ii) entertain original actions brought in Hong Kong against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States. A judgment of a court in the United States predicated upon U.S. federal or state securities laws may be enforced in Hong Kong at common law by bringing an action, within the time limits provided under Hong Kong law, in a Hong Kong court on that judgment for the amount due thereunder, and then seeking summary judgment on the strength of the foreign judgment, provided that the foreign judgment, among other things, is (i) for a debt or a definite sum of money (not being taxes or similar charges to a foreign government taxing authority or a fine or other penalty) and (ii) final and conclusive on the merits of the claim, but not otherwise. Such a judgment may not, in any event, be so enforced in Hong Kong if (a) it was obtained by fraud; (b) the proceedings in which it was obtained were contrary to substantial justice; (c) its enforcement or recognition would be contrary to the public policy of Hong Kong; (d) it was given by a court of the United States that was not jurisdictionally competent; (e) it was in conflict with a prior Hong Kong judgment or foreign judgment registered or recognized in Hong Kong; or (f) it was for multiple damages. As a result, there is uncertainty as to the enforceability in Hong Kong, in original actions or in actions for enforcement, of judgments of United States courts of civil liabilities predicated solely upon the federal securities laws of the United States or the securities laws of any State or territory within the United States.

You should carefully consider all of the information in this annual report before making an investment in the ADSs. Below please find a summary of the principal risks and uncertainties we face, organized under relevant headings. In particular, as we are a China-based company incorporated in the Cayman Islands, you should pay special attention to subsections headed "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Doing Business in China" and "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Corporate Structure and the Contractual Arrangements." The operational risks associated with being based in and having operations in Chinese Mainland also apply to operations in Hong Kong. The legal risks associated with being based in and having operations in Chinese Mainland are expected to apply to Chinese Mainland entities and businesses, rather than entities or businesses in Hong Kong and Macau, if any, which operate under a different set of laws from Chinese Mainland.

Below please find a summary of the principal risks we face, organized under relevant headings.

#### Risks Relating to Our Business and Industry
● *Our historical financial and operating results may not be indicative of future performance.* 

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● *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, servers, storage, and networking equipment, and investing substantially in our research and development efforts, which may negatively impact our cash flow, and may not generate the results we expect to achieve.* 

● *Our business depends on the stable and timely supply of hardware and telecommunications services, and any disruption in our supply chain could harm our operations.* 

● *We have recorded negative cash flows from operating activities historically.* 

● *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.* 

● *Data loss, security incidents and other 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.* 

● *Goodwill represented a significant portion of our total assets. If our goodwill is to be impaired, our results of operations and financial condition may be adversely affected.* 

● *Significant impairment of our property and equipment could materially impact our financial position and results of our operations.* 

#### Risks Relating to Our Relationships with Kingsoft Group and Xiaomi
● *If we are no longer able to benefit from our business cooperation with Kingsoft Group or Xiaomi Group and its ecosystem, our business may be adversely affected.* 

● *Kingsoft Group and Xiaomi Group are our existing customers, from which we received a portion of revenues and made borrowings. 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.* 

#### Risks Relating to Our Corporate Structure and the Contractual Arrangements
● *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.* 

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● *The Company relies 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 the registered shareholders to perform their obligations under our contractual arrangements with them would have a material and adverse effect on our business.* 

#### Risks Relating to Doing Business in China
● *A severe or prolonged downturn in the PRC or global economy could materially and adversely affect our business, results of operations and financial condition. For details, see page 49 of this annual report.* 

● *We may be adversely affected by rising international political tensions. For details, see page 50 of this annual report.* 

● *Changes in China's economic or social conditions or government policies could have a material adverse effect on our business and operations. For details, see page 51 of this annual report.* 

● *Changes and developments in the PRC legal system and the interpretation and enforcement of PRC laws, rules and regulations may subject us to uncertainties. For details, see page 51 of this annual report.* 

● *You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in China against us or our management based on foreign laws. For details, see page 52 of this annual report.* 

● *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. For details, see page 52 of this annual report.* 

● *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. For details, see page 54 of this annual report.* 

● *The PCAOB had historically been unable to inspect our auditor in relation to their audit work performed for our financial statements included elsewhere in this annual report. For details, see page 60 of this annual report.* 

● *Trading in our securities on U.S. markets, including the Nasdaq, may be prohibited under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB determines that it is unable to inspect or investigate completely our auditor for two consecutive years. For details, see page 61 of this annual report.* 

#### Risks Relating to Our Ordinary Shares and the ADSs
● *The price and trading volume of our ordinary shares and the 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 ordinary shares and/or the ADSs and trading volume could decline.* 

● *Substantial future sales or perceived sales of our ordinary shares or the ADSs in the public market could materially and adversely affect the price of our ordinary shares or the ADSs.* 

● *Techniques employed by short sellers may drive down the market price of our ordinary shares and/or the ADSs.* 

● *Because we do not expect to pay dividends in the foreseeable future, you must rely on a price appreciation of our ordinary shares and/or the ADSs for a return on your investment.* 

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**Risks Relating to Our Business and Industry** 

***Our historical financial and operating results may not be indicative of future performance.***

We believe that our historical financial and operating results may not be indicative of our future performance. We intend to improve our financial and operating results by expanding our business, increasing our profitability, increasing market penetration of our existing solutions and products and developing new ones. To achieve such targets, we must develop and improve our existing administrative and operational systems, our financial and management controls, and further expand, train and manage our work force. In addition, the expansion of our systems and infrastructure will require us to commit substantial financial, operational and management resources before our revenues increase and without any assurances that our revenues will increase. If we fail to achieve the necessary level of efficiency as we grow, our growth rate may decline and investors' perceptions of our business and prospects may be adversely affected and the market price of our ordinary shares and the ADSs could decline. Moreover, since China's cloud service market is continuously evolving and being shaped by new technologies, our ability to continue our growth is subject to a number of uncertainties, including the overall development of China's cloud service market and IT infrastructure.

#### We have a history of net loss and we may not be able to achieve or subsequently maintain profitability.
We have incurred net loss of RMB2,183.6 million, RMB1,979.0 million and RMB943.7 million (US$134.9 million) in 2023, 2024 and 2025, respectively. Our net loss has resulted primarily from our cost of revenues and investments made to grow our business, such as in research and development efforts. We expect our costs and expenses to maintain stable or slightly increase in absolute amounts as we enhanced cost and expenses control, which may further increase in the future as we aim to continue to grow our business. Moreover, we intend to continue to invest substantially in the foreseeable future in expanding our infrastructure, improving our technologies, and offering additional solutions and products, which is expected to cause our cost of revenues and research and development expenses to increase continuously in absolute amount. If we fail to achieve economies of scale through our efforts or the economies of scale achieved fail to reduce the loss margin, our profitability may be adversely affected. These efforts may be more costly than we expect and our revenues may not increase sufficiently to offset the expenses, which may result in significantly increased operating and net loss with no assurance that we will eventually achieve our intended long-term benefits or profitability.

***To support our business growth, we are continuously optimizing and expanding our infrastructure including data centers, servers, storage, and networking equipment, and investing substantially in our research and development efforts, which may negatively impact our cash flow, and may not generate the results we expect to achieve.***

Our technological capabilities and infrastructure are critical to our success. We have been continuously optimizing and expanding our infrastructure, including through the procurement of advanced servers and other hardware, and investing substantially in our research and development efforts. Our research and development expenses were RMB784.8 million, RMB846.0 million and RMB810.3 million (US$115.9 million) in 2023, 2024 and 2025. We also plan ahead and commit underlying resources, including IDC costs and equipment purchases, based on our understanding of market prospects. Our IDC costs were RMB3,211.2 million, RMB2,892.1 million and RMB3,133.4 million (US$445.2 million) in 2023, 2024 and 2025. Our capital expenditures, primarily in connection with purchases of servers, networking equipment, property and other equipment and intangible assets, were RMB1,964.7 million, RMB4,124.7 million and RMB4,994.3 million (US$714.2 million), respectively, in 2023, 2024 and 2025. The industry in which we operate is subject to rapid technological changes and is evolving quickly in terms of technological innovation. We need to invest significant resources, including financial and human resources, in research and development to lead technological advances in order to make our solutions and products innovative and competitive in the market. As a result, we expect that our research and development expenses, IDC costs, hardware procurement costs, and/or capital expenditures will continue to increase. Furthermore, as development results are inherently uncertain and the fluctuations of market prices of our products are out of our control, we might encounter practical difficulties in commercializing or gaining profits from our development activities. Our significant expenditures on research and development and physical infrastructure may not generate corresponding benefits. Given the fast pace with which technology has been and will continue to advance, we may not be able to timely upgrade our servers and other infrastructure in an efficient and cost-effective manner, or at all. New technologies in our industry could render our existing hardware, our infrastructure, or solutions that we are developing or expect to develop in the future obsolete or unattractive, thereby limiting our ability to recover related development costs, which could result in a decline in our revenues, profitability and market share.

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***Our business depends on the stable and timely supply of hardware and telecommunications services, and any disruption in our supply chain could harm our operations.***

Our ability to provide cloud services and expand our infrastructure depends on the procurement of advanced hardware, including servers, networking equipment, and other components. Any global supply chain constraints, export control restrictions, or geopolitical tensions could result in shortages, delays, or significant price increases. For example, U.S. export controls on advanced semiconductors and integrated circuits may limit our ability to source necessary hardware for our research and development or infrastructure needs. If we are unable to secure an adequate supply of hardware on commercially reasonable terms, or if our suppliers face operational disruptions, we may be unable to meet customer demand, leading to service performance issues, loss of customers, and increased costs.

#### We have recorded negative cash flows from operating activities historically.
We have experienced net cash outflow from operating activities. Our net cash used in operating activities amounted to RMB169.1 million in 2023. In contrast, we recorded net cash generated from operating activities of RMB628.4 million and RMB3,801.0 (US$543.5 million) in 2024 and 2025, respectively. Despite we record net operating cash inflow in 2024 and 2025, we may record negative operating cash flow in the future, and an increase in our net cash outflow from operating activities could adversely affect our operations by reducing the amount of cash available to meet the capital needs for our daily operations and future business expansion.

***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.***

We typically extend credit terms ranging from 30 to 180 days to our customers, resulting in accounts receivable. We cannot assure you that we are or will be able to accurately assess the creditworthiness of each customer. Furthermore, we also serve customers in certain rapidly evolving and competitive industries, some of which have also been highly regulated, and such customers' financial soundness is subject to changes to the industry trend or relevant laws and regulations, which is beyond our control. Any change in our customers' business and financial conditions may affect our collection of accounts receivable. Litigation may be necessary to enforce collection of accounts receivables. Such litigation could be costly, time-consuming and distracting to management, result in a diversion of significant resources, and may have an adverse effect on our business, results of operations and financial condition. Any delay or failure in payment may adversely affect our liquidity and cash flows, which in turn cause material adverse effects on our business operations and financial results. As of December 31, 2023, 2024 and 2025, the carrying amounts of our accounts receivable were RMB 1,529.9 million, RMB1,468.7 million and RMB1,740.5 million (US$248.9 million), respectively. The corresponding allowance for credit losses as of December 31, 2023, 2024 and 2025 were RMB24.7 million RMB57.6 million and RMB99.4 million (US$14.2 million), respectively, and the write-offs charged against the allowance for credit losses for the years ended December 31, 2023, 2024 and 2025 were RMB497.4 million, RMB253.0 million and RMB133.4 million (US$19.1 million), respectively.

***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.***

The cloud service market is competitive and rapidly evolving. The principal competitive factors in our market include platform scalability, reliability, completeness of product offerings, level of sophistication of solutions, credibility with developers, ease of integration and programmability, product features, security and performance, brand awareness and reputation, the strength of sales and marketing efforts, customer support, as well as the cost of deploying and using our products, among others. Some of our existing and potential competitors have larger scale, greater brand name recognition, longer operating histories, more established customer relationships and greater resources than we do. As a result, our competitors may be able to respond more quickly and effectively than we can to new or changing opportunities, technologies, standards or customer requirements. In addition, some competitors may offer products, solutions or services that address one or a limited number of functions at lower prices, with greater depth than our products or in different geographies. Our current and potential competitors may develop and market new products, solutions and services with comparable functionality to ours, which could force us to decrease prices to remain competitive. With the introduction of new products, solutions and services and new market entrants, we may experience more intensive competition in the future. In addition, some of our customers may use our products and solutions and our competitors' products and solutions at the same time.

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***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.***

Our future success is dependent on establishing and maintaining successful relationships with a diverse set of customers. We currently receive a substantial portion of our revenues from a limited number of customers. In 2023, 2024 and 2025, our total revenues generated from Premium Customers accounted for 98.1%, 98.1% and 98.3% of our total revenues in the same periods, respectively. It is likely that we will continue to be dependent upon a limited number of customers for a significant portion of our revenues for the foreseeable future and, in some cases, the portion of our revenues attributable to one single customer may increase in the future. The loss of one or more Premium Customers or a reduction in usage by any Premium Customer would reduce our revenues. If we fail to maintain existing customers or develop relationships with new customers, our business would be harmed.

***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.***

The market where we operate in is competitive and rapidly evolving. There are uncertainties over the size and rate at which this market will grow, as well as whether our solutions and products will be widely adopted. Moreover, the cloud industry, including public cloud and enterprise cloud, are subject to rapid technological change, evolving industry standards, changing regulations, as well as changing customer needs, requirements and preferences. The success of our business will depend, in part, on our ability to adapt and respond effectively to these changes on a timely basis. If we are unable to develop new solutions and products that satisfy our customers and provide enhancements and new features for our existing products that keep pace with rapid technological and industry change, our business, results of operations and financial condition could be adversely affected. If new technologies emerge that are able to deliver competitive products and services at lower prices, more efficiently, more conveniently or more securely, such technologies could adversely impact our ability to compete effectively.

Our platform must also integrate with a variety of network, hardware, software platforms and technologies, and we need to continuously modify and enhance our products and platform to adapt to changes and innovation. For example, if customers adopt new software platforms or infrastructure, we may be required to develop new versions of our products to be compatible with those new software platforms or infrastructure. This development effort may require significant resources, which would adversely affect our business, results of operations and financial condition. In addition, we may not be able to keep track of the latest market developments in the IT industry and to provide relevant new products and solutions to the evolving market demand. Any failure of our products and platform to operate effectively with evolving or new software platforms and technologies could reduce the demand for our products. If we are unable to respond to these changes in a cost- effective manner, our products may become less marketable and less competitive or obsolete, and our business, results of operations and financial condition could be adversely affected.

***Data loss, security incidents and other 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.***

Our business is dependent on providing our customers with secure, reliable and high-quality cloud services. Maintaining the security and availability of our infrastructure, systems, platform, network, and the security of information and data we hold is a critical issue for us and our customers.

Attacks on our customers and our own network may be frequent and may happen in a variety of forms, including DDoS attacks, infrastructure attacks, botnets, malicious file attacks, cross-site scripting, credential abuse, ransomware, viruses, worms, and malicious software programs. Malicious actors can attempt to fraudulently induce employees or suppliers to disclose sensitive information through spamming, phishing, or other tactics. In addition, unauthorized parties may attempt to gain physical access to our facilities in order to infiltrate our information systems. Since our customers share our multi-tenant architecture, material attacks on any one of our customers could have a negative effect on other customers. These attacks may also significantly increase the bandwidth used on our platform and strain our network. If attacks like these were to occur in the future and if we do not have the systems and processes in place to respond to them, our business could be harmed.

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In recent years, cyber-attacks have increased in size, sophistication, and complexity, increasing exposure for our customers and us. We may become an attractive target for attacks on our infrastructure intended to destabilize, overwhelm, or shut down our platform. The costs incurred by us to avoid or alleviate cyber or other security problems and vulnerabilities will be significant. However, our efforts to address these problems and vulnerabilities may not be successful. Any significant breach of our security measures could:

● 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.

The occurrence of any of these events could harm our business or damage our brand and reputation, lead to customer credits, loss of customers, higher expenses, and possibly impede our present and future success in retaining and attracting new customers. Security incidents or attacks on our infrastructure would be damaging to our reputation and could harm our business.

Moreover, we use third-party technology and systems in a variety of technical and operational aspects of our business, including encryption and authentication technology, employee email, content delivery to customers, back-office support, among others. Similar security risks exist with respect to such third-parties. As a result, we are subject to the risk that cyber-attacks on our business partners and third-party suppliers may adversely affect our business even if an attack or breach does not directly impact our systems. It is also possible that security breaches sustained by our competitors could result in negative publicity for our entire industry that indirectly harms our reputation and diminishes demand for our platform.

***Sanctions, export controls and other economic or trade restrictions imposed on Chinese companies may affect our business, financial condition and results of operations.***

The U.S. government has added many Chinese companies and institutions to the Entity List under the Export Administration Regulations (the "EAR"), and imposed targeted economic and trade restrictions on them that, if not waived, will limit their access to U.S.-origin goods and technologies, as well as goods and technologies that contain a significant portion of U.S.-origin goods and technologies. The United States has also in certain circumstances threatened to impose further export control, sanctions, trade embargoes, additional import tariffs and other heightened regulatory requirements on China and China-based companies. These sanctions, additional tariffs and actions have raised concerns that there may be increasing regulatory challenges or enhanced restrictions against China and other China-based technology companies, including us, in a wide range of areas. In addition, a number of other countries and jurisdictions, including China and the European Union, have adopted various export control and economic or trade sanction regimes. Given the important role played by Chinese high-tech companies on the Entity List in the global supply chain or in China for industries including telecommunications, information technology infrastructure, artificial intelligence and IoTs, prolonged restrictions against such companies could cause a material negative impact to all such industries, which may in turn materially and adversely affect our business, financial condition and results of operations. Similarly, we cannot predict whether the countries in which we operate or may operate in the future, could become subject to new or additional restrictions or actions imposed by the United States or other governments. Depending on the likelihood, type, effect and duration of any such restrictions or actions which may be implemented in the future, our research and development activities, financial condition and operations may be adversely affected.

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In recent years, the United States has increased export control restrictions on China through the EAR, administered by the Bureau of Industry and Security of the U.S. Department of Commerce (the "BIS"). There has been increasing export control restrictions on advanced computing integrated circuits ("IC"), develop and maintain supercomputers, and manufacture advanced semiconductors. There can be no assurance that the United States or other countries will not impose more stringent export controls that may prohibit or further restrict our ability to, directly or indirectly, source semiconductor and other items, or otherwise affect our business. It is difficult to predict what further trade-related actions the United States or other governments may take, and we may be unable to quickly and effectively react to or mitigate such actions.

On October 28, 2024, the U.S. Department of the Treasury issued a final rule on outbound investment, or the Outbound Investment Rule, to implement the executive order of August 9, 2023, which became effective on January 2, 2025. The Outbound Investment Rule imposes investment prohibition and notification requirements on U.S. persons for a wide range of investments in entities associated with China (including Hong Kong and Macau), collectively defined as "Covered Foreign Persons," that are engaged in activities relating to three sectors: (i) semiconductors and microelectronics, (ii) quantum information technologies, and (iii) artificial intelligence systems. U.S. persons subject to the Outbound Investment Rule are prohibited from making, or required to report, certain investments in Covered Foreign Persons, which are defined as "covered transactions." In addition, on February 21, 2025, the White House released President Trump's "America First Investment Policy" memorandum, outlining several initiatives to incentivize investment from U.S. allies and partners while restricting investments involving "foreign adversaries," including China. Among other things, the policy aims to expand the industry sectors covered by the U.S. outbound investment regulations and supplement outbound restrictions through the imposition of sanctions. As of the date of this prospectus supplement, the proposed changes under the America First Investment Policy are not implemented, although the proposed restrictions may further deepen the uncertainties for cross-border collaborations, investments, and funding opportunities for China-based issuers including us. We believe we are not a "Covered Foreign Person" as defined in the Outbound Investment Rule. However, if we were to be deemed a Covered Foreign Person due to changes in our business operations or amendments to relevant laws and regulations, our ability to raise capital would be significantly and negatively affected. In such case, the trading prices of the ADSs and/or our ordinary shares may be materially and adversely affected and the value of our securities may decline significantly.

In addition, each of the agreements between U.S.- and China-based companies can be terminated by either party, as applicable, under certain circumstances if necessary Chinese governmental approvals are revoked or become limited or impaired or if public law or regulatory action by the Chinese or U.S. government expressly prohibits or materially restricts the collaboration contemplated by the agreement. The risk of such an early termination event may have increased during the current environment of economic trade negotiations and tensions between the Chinese and U.S. governments.

U.S. sanctions and trade laws and regulations are complex and likely subject to frequent changes. The interpretation and enforcement of the relevant regulations and the imposition of sanctions and other restrictions involve substantial uncertainties, which may be driven by political and/or other factors that are out of our control or heightened by U.S. national security concerns. Such potential restrictions, as well as any associated inquiries or investigations or any other government actions, may be difficult or costly to comply with and may, among other things, delay or impede the development of our technology, products and solutions, hinder the stability of our supply chain, and may result in negative publicity, require significant management time and attention and subject us to fines, penalties, orders or restrictions that we cease or modify our existing business practices, any of which may have a material and adverse effect on our business, financial condition and results of operations. For instance, media reports on alleged implementation or violation of export control, sanctions, trade embargoes or other laws and rules which could be perceived as inappropriate or controversial, by us, our customers, business partners, investees or other parties not affiliated with or controlled by us, even on matters not involving us, could nevertheless damage our reputation and lead to regulatory investigations, fines and penalties against us. Such fines and penalties may be significant, and if we were publicly named or investigated by any regulator on the basis of suspected or alleged violations of export control, sanctions, trade embargoes or other laws and rules, even in situations where the potential amount or fine involved may be relatively small, our reputation could be significantly harmed. Any of these circumstances may cause the trading prices of our ordinary shares and the ADSs to decline significantly, and materially reduce the value of your investment in our ordinary shares and the ADSs.

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***Our business depends on customers increasing their use of our products and solutions, if we fail to retain existing customers or increase the spending by our customers, our business, results of operations and financial condition could materially and adversely affected.***

Our ability to grow and generate incremental revenues depends, in part, on our ability to maintain our existing customers and grow our relationships with existing customers and to have them increase their usage of and spending on our platform. If our customers do not increase their use of our products or the spending of our customers decline, then our revenues may decline and our results of operations may be harmed. We cannot accurately predict customers' usage levels and the loss of customers or reductions in their usage levels of our products may each have a negative impact on our business, results of operations and financial condition. Any change in the competitive landscape, market trend or user behaviors may have a negative impact on our customers, thus harm their ability to make payments and maintain and increase the usage of our products and solutions. In addition, some of the industries where our customers operate are highly regulated. As the laws and regulations are evolving and some of them are relatively new, changes to the current laws and regulations may harm our business and results of operation. In addition, interpretation and enforcement of such laws and regulations involve significant uncertainty. As a result, in certain circumstances it may be difficult to determine violation of applicable laws and regulations. If these laws and regulations or the uncertainty associated with their interpretation negatively impact the industries where our customers operate, our business may be adversely affected as well. We could experience reductions in usage from existing customers and loss of customers if customers are not satisfied with our products, the value proposition of our products or our ability to otherwise meet their needs and expectations.

Further, some of our customers may choose to develop their own solutions that do not include our products, or adopt a multi-cloud strategy decreasing usage of our products. They may also demand reductions in pricing as their usage of our products increases, which could have an adverse impact on our gross margin. If a significant number of customers cease using, or reduce their usage of our products, then we may not be able to achieve our growth target, and may need to spend significantly more on sales and marketing than we currently plan to spend in order to maintain or increase revenues from customers. Such additional sales and marketing expenditures could adversely affect our business, results of operations and financial condition.

***If our expansion into new verticals is not successful, our business, prospects and growth momentum may be materially and adversely affected.***

Leveraging our top-notch infrastructure resources and years of technology accumulation, we are able to provide innovative integrated cloud solutions specifically designed to address the diversified needs of our customers across our select verticals. We have a track record of successfully expanding into and becoming a leader in new verticals. We cannot assure you, however, that we will be able to maintain this momentum in the future. Expanding solution categories involves new risks and challenges. Our lack of familiarity with new verticals may make it more difficult for us to keep pace with the evolving customer demands and preferences. In addition, there may be one or more existing market leaders in any vertical that we decide to expand into. Such companies may have first-mover advantages, and may be able to compete more effectively than us by leveraging their experience in doing business in that market as well as their deeper industry insight and greater brand recognition among customers. We will need to comply with new laws and regulations applicable to these businesses, the failure of which would adversely affect our reputation, business, results of operations and financial condition. Expansion into any new vertical may place significant strain on our management and resources, and failure to expand successfully could have a material adverse effect on our business and prospects.

***If the adoption of our cloud products and solutions by our customers is slower than we expected, our business, results of operations and financial condition may be adversely affected.***

Our business has relied on the adoption of our cloud products and solutions by a broad array of customers. Our ability to further increase our customer base, and achieve broader market acceptance of our products and solutions will depend, in part, on our ability to effectively organize, focus and train our sales and marketing personnel. Our ability to achieve significant revenue growth in the future will depend, in part, on our ability to recruit, train and retain a sufficient number of experienced sales professionals. Our new hires and planned hires may not become as productive as quickly as we expect and we may be unable to hire or retain sufficient numbers of qualified individuals in the future in the markets where we do business.

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As we seek to increase the adoption of our products and solutions by our customers, we may incur higher costs and longer sales cycles. The decision to adopt our products and solutions may require the approval of multiple technical and business decision makers, including security, compliance, procurement, operations and IT. In addition, while customers may quickly deploy our products and solutions on a limited basis before they will commit to deploying our products and solutions at scale, they often require enterprise service capabilities, extensive education about our products and solutions and significant customer support time, engage in protracted pricing negotiations and seek to secure readily available development resources.

***If we are not able to maintain and enhance our brand and increase market awareness of us, or effectively develop and expand our marketing and sales capabilities, then our ability to attract new customers may be harmed and our business, results of operations and financial condition may be adversely affected.***

We believe that maintaining and enhancing the "Kingsoft Cloud" brand identity and increasing market awareness of the Group products and solutions, are critical to achieving widespread acceptance of our products and solutions, to strengthening our relationships with our existing customers and to attracting new customers. The successful promotion of our brand will depend largely on our continued marketing efforts, our ability to continue to offer high quality products and services, our ability to maintain relationships with bandwidth and hardware suppliers, our ability to be one of the thought leaders in the cloud service market and our ability to successfully differentiate our products and platform from competing products and services. Our brand promotion and thought leadership activities may not be successful or increase revenues. In addition, independent industry analysts often provide reviews of our products and competing products and services, which may significantly influence the perception of our products in the marketplace. If these reviews are negative or not as favorable as reviews of our competitors' products and services, then our brand may be harmed.

We have been subject to negative media publicity for our cloud services. Any malicious or inadvertent negative allegations made by the media, shorter selling reports, or other parties about the foregoing or other aspects of the Group including but not limited to our shareholders, management, business, compliance with law, financial condition or prospects, whether with merit or not, could severely hurt our reputation and harm our business and results of operations.

We may receive complaints from our customers on our products, pricing and customer support. If we do not handle customer complaints effectively, our brand and reputation may suffer, our customers may lose confidence in us and they may reduce or cease their use of our products. In addition, our customers may post and discuss on social media about our products, solutions, platform and relevant services. Our success depends, in part, on our ability to generate positive customer feedback and minimize negative feedback on social media channels where existing and potential customers seek and share information. If actions we take or changes we make to our products, solutions or platform upset these customers, their commentary could negatively affect our brand and reputation. Complaints or negative publicity about us, our products, solutions or platform could materially and adversely impact our ability to attract and retain customers, our business, results of operations and financial condition.

As we also provide services to a wide range of enterprise clients and institutions, negative publicity about such counterparties, including any failure by them to adequately protect customer information, to comply with applicable laws and regulations or to otherwise meet required quality and service standards could harm our reputation.

The promotion of our brand also requires us to make substantial expenditures, and we anticipate that these expenditures will increase as our market becomes more competitive and as we expand into new markets. To the extent that these activities increase revenues, the increased revenues still may not be enough to offset the increased expenses we incur. If we do not successfully maintain and enhance our brand, then our business may not grow, we may see our pricing power reduced relative to competitors and we may lose customers, all of which would adversely affect our business, results of operations and financial condition.

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***We require a significant amount of capital to fund our operations and respond to business opportunities. If we cannot obtain sufficient capital on acceptable terms, or at all, our business, financial condition and results of operations may be materially and adversely affected.***

We make investments in product development, technologies, branding, sales and marketing to remain competitive. In 2023, 2024 and 2025, our principal sources of liquidity included bank loans, loans from related parties and finance lease from third parties. In April 2025, we further strengthened our liquidity position through a public offering. Our ability to obtain additional financing in the future is subject to a number of uncertainties, including those relating to:

● 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.

As of December 31, 2025, we had cash and cash equivalents of RMB6,018.0 million (US$860.6 million), and we had net current assets of RMB1,602.1 million (US$229.1 million). We also entered into several loan agreements with Xiaomi Group. We cannot assure you that we will be successful in our efforts to diversify our sources of capital and raise sufficient capital as we expect. If we cannot obtain sufficient capital, we may not be able to implement our growth strategies, and our business, financial condition and results of operations may be materially and adversely affected.

We may be unable to obtain additional capital in a timely manner or on acceptable terms or at all. In addition, due to future capital needs and other business reasons, we may need to sell additional equity or debt securities or obtain a credit facility. The sale of additional equity or equity-linked securities could dilute our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and finance covenants that would restrict our operations.

***Our ability to maintain customer satisfaction depends in part on the consistency and quality of our customer support services through the product cycle. Failure to maintain continuous and high-quality customer support could have an adverse effect on our business, results of operation, and financial condition.***

We believe that customer satisfaction is key to our business. In order to deliver high-level customer satisfaction, we must successfully assist our customers in deploying and continuing to use our products and solutions, resolving performance issues, addressing interoperability challenges with the customers' existing IT infrastructure, and responding to security threats, cyber-attacks and performance and reliability problems that may arise from time to time. The IT architecture of our customers, particularly the larger organizations, are very complex and may require high levels of focused support to effectively utilize our platform and products. Because our platform and products are designed to be highly configurable and to rapidly implement customers' reconfigurations, customer errors in configuring our platform and products can result in significant disruption to our customers. Increased demand for customer support, without corresponding increases in revenues, could increase our costs and adversely affect our business, results of operations, and financial condition.

There can be no assurance that we will be able to hire sufficient personnel as and when needed, particularly if our sales exceed our internal forecasts. To the extent that we are unsuccessful in hiring, training, and retaining adequate support resources, our ability to provide high-quality and timely support to our customers will be negatively impacted, and our customers' satisfaction with our network could be adversely affected. Any failure to maintain high-quality customer support, or a market perception that we do not maintain high-quality customer support, could adversely affect our reputation, business, results of operations, and financial condition, particularly with respect to our large enterprise customers.

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***We employ a pricing model and strategy that subjects us to various challenges that could make it difficult for us to derive sufficient value from our customers.***

We primarily charge public cloud service customers on a monthly basis based on utilization and duration. We generally charge enterprise cloud service customers on a project basis and based on the performance completed to date. Such pricing model requires us to undertake significant projections and planning on our costs. If our projections and plans differ significantly from those actually incurred, our business could be harmed. We do not know whether our current or potential customers or the market in general will continue to accept this pricing model going forward and, if it fails to gain acceptance, our business could be harmed. In addition, if our competitors adopt new pricing models that become more attractive to customers, our business could be harmed. We also generally rely on telecommunication operators for network bandwidth and third-party servers or server racks based on expected usage from our customers. In certain of our arrangements with such telecommunication operators, we have made minimum purchase commitments to secure bandwidth resources, which may be underutilized. If our customers use our platform in a manner that is inconsistent with how we have invested in bandwidth, servers, and racks, our business could be harmed. Moreover, we may have to keep the price of our products and solutions on par with that of our competitors to remain in our competitive position. If we are not able to advance our technologies and effectively control costs, our business, results of operation and financial condition may be negatively affected.

***Defects or errors in our products or solutions could diminish demand for our products or solutions, harm our business and results of operations and subject us to liability.***

Our customers use our products for important aspects of their businesses, and any errors, defects or disruptions to our products and any other performance problems with our products could damage our customers' businesses and, in turn, hurt our brand and reputation. We provide regular updates to our products, which have in the past contained, and may in the future contain, undetected errors, failures, vulnerabilities and bugs when first introduced or released. Real or perceived errors, failures or bugs in our products could result in negative publicity, loss of or delay in market acceptance of our platform, loss of competitive position, lower customer retention or claims by customers for losses sustained by them. In such an event, we may be required, or may choose, for customer relations or other reasons, to expend additional resources in order to help correct the problem. In addition, we do not carry insurance to compensate us for any losses that may result from claims arising from defects or disruptions in our products. As a result, our reputation and our brand could be harmed, and our business, results of operations and financial condition may be adversely affected.

In addition, our solutions and products must interoperate with our customers' existing internal networks and infrastructure. These complex internal systems are developed, delivered, and maintained by the customer and a myriad of vendors and service providers. As a result, the components of our customers' infrastructure have different specifications, rapidly evolve, utilize multiple protocol standards, include multiple versions and generations of products, and may be highly customized. We must be able to interoperate and provide products to customers with highly complex and customized internal networks, which requires careful planning and execution. Further, when new or updated elements of our customers' infrastructure or new industry standards or protocols are introduced, we may have to update or enhance our technologies and infrastructure to allow us to continue to provide our products to customers. Our competitors or other vendors may refuse to work with us to allow their products to interoperate with our platform and products, which could make it difficult for our platform and products to function properly in customer internal networks and infrastructures that include these third-party products.

We may not deliver or maintain interoperability quickly or cost-effectively, or at all. These efforts require capital investment and engineering resources. If we fail to maintain compatibility of our solutions, platform and products with our customers' internal networks and infrastructures, our customers may not be able to fully utilize our solutions, platform and products, and we may, among other consequences, lose or fail to increase our market share and experience reduced demand for our products, which would materially harm our business, results of operations, and financial condition.

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***Our sales and onboarding cycles with customers can be long and unpredictable, and our sales and onboarding efforts require considerable time and expense, which may adversely affect our business, results of operations and financial condition.***

The timing of our sales with our enterprise customers and related revenue recognition is difficult to predict because of the length and unpredictability of the sales cycle for these customers. In addition, for our enterprise cloud and digital solutions customers, the lengthy sales cycle for the evaluation and implementation of our products and solutions may also cause us to experience a delay between expenses for such sales efforts and the generation of corresponding revenues. The length of our sales cycle for these enterprise cloud and digital solutions customers, from initial evaluation to payment, can range from one to six months and can vary substantially from customer to customer. We may have to spend significant money and resources before recognizing revenues from those enterprise customers.

Similarly, the onboarding and ramping process with new enterprise cloud and digital solutions customers can take several months. As the purchase of our products can be dependent upon customer initiatives, our sales cycle can extend to even longer periods of time. Customers frequently require considerable time to evaluate, test, and qualify our product offering prior to entering into or expanding a contract commitment. During the sales cycle, we spend significant time and money on sales and marketing and contract negotiation activities, which may not result in a completed sale. Additional factors that may influence the length and variability of our sales cycle include:

● 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.

***We face challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data protection, and user attitude toward data privacy and protection. Many of these laws and regulations are subject to change and uncertain interpretation, and any actual or alleged failure to comply with related laws and regulations regarding cybersecurity, information security, data privacy and protection could materially and adversely affect our business and results of operations.***

We operate in the regulatory environment in which the protection of cybersecurity, information security and data privacy is evolving. We are subject to numerous laws and regulations that address cybersecurity, information security, privacy and data protection in various jurisdictions. In particular, on June 10, 2021, the Standing Committee of the National People's Congress of China promulgated the Data Security Law, which took effect in September 2021. The Data Security Law sets forth data security and privacy related compliance obligations of entities and individuals carrying out data related activities. The Data Security Law also introduces a data classification and layered protection system based on the importance of data and the degree of impact on national security, public interests or legitimate rights and interests of individuals or organizations if such data is tampered with, destroyed, leaked or illegally acquired or used. In addition, the Data Security Law provides a national security review procedure for data activities that may affect national security, and imposes export restrictions on certain data and information.

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In early July 2021, regulatory authorities in China launched cybersecurity investigations with regard to several China-based companies listed in the United States. On December 28, 2021, the CAC, together with several other governmental authorities, jointly released the Cybersecurity Review Measures, which took effect on February 15, 2022. Pursuant to the Cybersecurity Review Measures, the purchase of network products and services by an operator of critical information infrastructure or the data processing activities of a network platform operator that affect or may affect national security will be subject to a cybersecurity review. In addition, network platform operators with personal information of over one million users shall be subject to cybersecurity review before listing abroad. The competent governmental authorities may also initiate a cybersecurity review against the operators if the authorities believe that the network product or service or data processing activities of such operators affect or may affect national security. The cybersecurity review will evaluate, among others, the risk of critical information infrastructure, core data, important data, or the risk of a large amount of personal information being influenced, controlled or maliciously used by foreign governments after going public, and cyber information security risk.

On July 30, 2021, the State Council promulgated the Regulations on Security Protection of Critical Information Infrastructure, effective on September 1, 2021, which provide that a "critical information infrastructure" refers to an important network facility and information system in important industries such as public communications and information services, as well as other important network facilities and information systems that may seriously endanger national security, the national economy, the people's livelihood, or the public interests in the event of damage, loss of function, or data leakage. The competent governmental authorities and regulatory authorities of the aforementioned important industries will be responsible for organizing the identification of critical information infrastructures in their respective industries. The competent governmental authorities shall also notify operators who are identified as "operators of critical information infrastructure" in accordance with these provisions. According to the Regulations on Security Protection of Critical Information Infrastructure, the competent PRC government authorities of important industries and sectors are responsible for identifying critical information infrastructures in their own industries and sectors based on the identification rules and informing the operator of the critical information infrastructure if such infrastructure is identified and designated as critical information infrastructure in a timely manner. The PRC government authorities have discretion in the identification of critical information infrastructures as well as the interpretation and enforcement of these regulations. In addition, the Cybersecurity Law provides that personal information and important data collected and generated by operators of critical information infrastructure in the course of their operations in the PRC should be stored in the PRC, and imposes heightened regulation and additional security obligations on operators of critical information infrastructure. The recently amended Cybersecurity Law strengthens enforcement measures and significantly increases penalties for violations of the law. Operators of critical information infrastructure may be subject to increased regulatory scrutiny and significant additional compliance costs.

On August 20, 2021, the Standing Committee of the National People's Congress of China promulgated the Personal Information Protection Law of the People's Republic of China, effective from November 1, 2021. The Personal Information Protection Law requires, among others, that (i) the processing of personal information should have a clear and reasonable purpose which should be directly related to the processing purpose, in a method that has the least impact on personal rights and interests, and (ii) the collection of personal information should be limited to the minimum scope necessary to achieve the processing purpose to avoid the excessive collection of personal information. Different types of personal information and personal information processing will be subject to various rules on consent, transfer, and security. Entities handling personal information shall bear responsibilities for their personal information handling activities, and adopt necessary measures to safeguard the security of the personal information they handle. Otherwise, the entities handling personal information could be ordered to correct, or suspend or terminate the provision of services, and face confiscation of illegal income, fines or other penalties.

In the meantime, the PRC regulatory authorities have also enhanced the supervision and regulation on cross-border data transfer. On July 7, 2022, the CAC promulgated the Measures for the Security Assessment of Cross-Border Data Transfer, which took effect on September 1, 2022. These measures require the data processor providing data overseas and falling under any of the specified circumstances apply for the security assessment of cross-border data transfer by the national cybersecurity authority through its local counterpart. On February 22, 2023, the CAC promulgated the Measures on the Standard Contract for Cross-border Transfer of Personal Information, which became effective on June 1, 2023. These measures require personal information processors providing personal information to overseas recipients by entering into standard contracts and falling under any of the specified circumstance to file with the local counterpart of the CAC within ten business days from the effective date of the relevant standard contracts. Furthermore, on March 22, 2024, the CAC promulgated the Provisions on Promoting and Standardizing Cross-Border Data Transfer, which set forth the circumstances exempted from performing the security assessment or filing procedures for cross-border data transfer and further clarify the thresholds and scenarios for data processors to go through these procedures as stipulated under the aforementioned measures. The interpretation, application and enforcement of the above measures and how they will affect our business operation are subject to substantial uncertainties, See "Item 4. Information on the Company—4.B. Business Overview—Regulation—Regulations—Regulation Related to Internet Security and Privacy Protection."

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On September 24, 2024, the CAC promulgated the Regulations for the Administration of Network Data Security, which came into effect on January 1, 2025. The Regulations for the Administration of Network Data Security restates and further specifies the legal requirements for personal information, important data, cross-border data transfer, network platform services, and data security. Among others, if the network data processing activities have or may have impacts on national security, such activities shall be subject to national security review in accordance with relevant laws and regulations. Any failure to comply with such requirements may subject us to suspension of services, fines, revocation of relevant business permits or business licenses and other penalties.

As of the date of this annual report, (i) we have not been subject to any material fines or administrative penalties, mandatory rectifications, or other sanctions by any competent regulatory authorities in relation to the infringement of cybersecurity and data protection laws and regulations; (ii) there is no leakage of data or personal information or violation of cybersecurity and data protection and privacy laws and regulations by us which will have a material adverse impact on our business operations; (iii) there have been no material cybersecurity and data protection incidents or infringement upon the rights of any third parties, or other legal proceedings, administrative or governmental proceedings, pending or, to the best of the knowledge of the Group threatened against or relating to the Group and (iv) we have implemented comprehensive cybersecurity and data protection policies, procedures and measures to safeguard personal information rights and ensure secured storage and transmission of data and prevent unauthorized access or use of data.

Furthermore, based on the facts that (i) the interpretation and implementation of the PRC laws and regulations regarding the cybersecurity, information security and data privacy are subject to further clarification from PRC governmental authorities, and (ii) we have not been involved in any investigations on cybersecurity review initiated by the CAC on such basis and nor have we received any inquiry, notice, warning, or sanctions in such respect, after consulting with our PRC legal counsel, our directors are of the view that such regulations do not have a material adverse impact on our business operations and financial performance as of the date of this annual report, and will not affect our compliance with laws and regulations in any material aspects as of the date of this annual report. As of the date of this annual report, we had not received any cybersecurity, data security and personal data protection related inquiries from any competent PRC regulatory authorities. As there might be newly issued explanations or implementation rules on the existing regulations, laws and opinions or the draft measures or regulations mentioned above might become effective, we will actively monitor future regulatory and policy changes to ensure strict compliance with all applicable laws and regulations.

The enactment, interpretation, application and enforcement of the above-mentioned laws, regulations and policies are subject to uncertainties. We have incurred, and will continue to incur, significant expenses in an effort to comply with cybersecurity, privacy, data protection and information security related laws, regulations, standards and protocols, especially as a result of such newly promulgated laws and regulations. Despite our efforts to comply with applicable laws, regulations and policies relating to cybersecurity, privacy, data protection and information security, we cannot assure you that our practices, offerings, services or platform will meet all of the requirements imposed on us by such laws, regulations or policies. Any failure or perceived failure to comply with applicable laws, regulations or policies may result in inquiries or other proceedings being instituted against, or other lawsuits, decisions or sanctions being imposed on us by governmental authorities, users, consumers or other parties, including but not limited to warnings, fines, directions for rectifications, suspension of the related business and termination of our applications, as well as in negative publicity on us and damage to our reputation, any of which could have a material adverse effect on our business, results of operations, financial condition and prospects. The above mentioned newly promulgated laws, regulations, policies or relevant drafts may result in the publication of new laws, regulations and policies to which we may be subject, though the timing, scope and applicability of such laws or regulations are currently unclear. Any such laws, regulations or policies could negatively impact our business, results of operations and financial condition. We may be notified for cybersecurity review by the CAC if we were regarded as a critical information infrastructure operator by the CAC, or if our data processing activities and overseas listing were regarded as having impact or potential impact to national security, and be required to make significant changes to our business practices, suspend certain business, or even be prohibited from providing certain service offerings in jurisdictions in which we currently operate or in which we may operate in the future. Such review could also result in negative publicity with respect to us and diversion of our managerial and financial resource. There can be no assurance that we would be able to complete the applicable cybersecurity review procedures in a timely manner, or at all, if we are required to follow such procedures.

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Moreover, we may become subject to regulatory requirements as a result of utilization of our products and services by residents of, or travelers who visit, certain jurisdictions, such as the General Data Protection Regulation of the European Union, or the GDPR. Complying with additional or new regulatory requirements could force us to incur substantial costs or require us to change our business practices. Moreover, if a high profile security breach occurs with respect to our competitors, people may lose trust in the security of cloud service providers generally, including us, which could damage the reputation of the industry, result in heightened regulation and strengthened regulatory enforcement and adversely affect our business and results of operations.

We expect that we will continue to face uncertainty as to whether our efforts to comply with evolving obligations under global data protection, privacy and security laws will be sufficient. From time to time, we may be subject to inspections conducted by governmental authorities. In the event that any failure or perceived failure by us to comply with applicable laws and regulations is identified during such inspections, we may be required to implement rectification measures in accordance with the inspection results. In addition, any failure or perceived failure by us to comply with applicable laws and regulations could result in reputational damage or proceedings or actions against us by governmental authorities, individuals or others. These proceedings or actions could subject us to significant civil or criminal penalties and negative publicity, require us to change our business practices, increase our costs and materially harm our business, prospects, financial condition and results of operations. In addition, our current and future relationships with customers, vendors and other third parties could be negatively affected by any proceedings or actions against us or current or future data protection obligations imposed on them under applicable law. Furthermore, a data breach affecting personal information could result in significant legal and financial exposure and reputational damage that could potentially have an adverse effect on our business.

Similar risks exist with respect to our business partners and our customers in relation to the process of personal data. Any failure of our partners or customers to comply with applicable laws and regulations could result in their reputational damage or governmental investigations, inquiries, enforcement actions and prosecutions, private litigation, fines and penalties or adverse publicity, which may harm our business partnership and have a negative impact on our business.

***Changes in laws and regulations related to the internet or changes in the internet infrastructure itself may diminish the demand for our products and solutions, and could adversely affect our business, results of operations and financial condition.***

The future success of our business depends upon the continued use of the internet as a primary medium for commerce, communications and business applications. Chinese or foreign government bodies or agencies have in the past adopted, and may in the future adopt, laws or regulations affecting the use of the internet as a commercial medium. Changes in these laws or regulations could require us to modify our products and platform in order to comply with these changes. In addition, government agencies or private organizations have imposed and may impose additional taxes, fees or other charges for accessing the internet or commerce conducted via the internet. These laws or charges could limit the growth of internet-related commerce or communications generally, or result in reductions in the demand for internet-based products and services such as our products and platform. In addition, the use of the internet as a business tool could be adversely affected due to delays in the development or adoption of new standards and protocols to handle increased demands of internet activity, security, reliability, cost, ease-of-use, accessibility and quality of service. The performance of the internet and its acceptance as a business tool has been adversely affected by "viruses," "worms," and similar malicious programs. If the use of the internet is reduced as a result of these or other issues, then demand for our products could decline, which could adversely affect our business, results of operations and financial condition.

Moreover, our business depends on the performance, reliability and security of the telecommunications and internet infrastructure in China and other countries in which we operate or locate our assets. Substantially all access to the internet in China is maintained through certain telecommunication operators under the administrative control and regulatory supervision of the Ministry of Industry and Information Technology, or the MIIT. In addition, the national networks in China are connected to the internet through qualified international gateways, which are the only channels through which a domestic user can connect to the internet outside of China. We may face similar or other limitations in other countries in which we operate or locate our assets. We may not have access to alternative networks in the event of disruptions, failures or other problems with the internet infrastructure in China or elsewhere. In addition, the internet infrastructure in the countries in which we operate may not support the demands associated with continued growth in Internet usage. We also have no control over the costs of the services provided by the telecommunications operators. If the prices that we pay for telecommunications and internet services rise significantly, our margins could be adversely affected.

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***We may have insufficient computing resources, transmission bandwidth and storage space, which could result in disruptions and our business, results of operations and financial condition could be adversely affected.***

Our operations are dependent in part upon transmission bandwidth provided by third-party telecommunications network providers, access to data centers to house our servers and other computing resources. There can be no assurance that we are adequately prepared for unexpected increases in bandwidth and data center demands by our customers. The bandwidth we have contracted to use or the data centers we have established may become unavailable for a variety of reasons, including service outages, payment disputes, network providers going out of business, natural disasters, networks imposing traffic limits, or governments adopting regulations that impact network operations. In some regions, bandwidth providers have their own services that compete with us, or they may choose to develop their own services that will compete with us. These bandwidth providers may become unwilling to sell us adequate transmission bandwidth at fair market prices, if at all. This risk is heightened where market power is concentrated with one or a few major networks. We also may be unable to move quickly enough to augment capacity to reflect growing traffic or security demands. In addition, our operations may be affected by the availability and procurement of high-performance hardware, including GPUs. There can be no assurance that we will be able to secure an adequate supply of GPUs on commercially reasonable terms, or at all, due to global supply chain constraints, export control restrictions, increased demand from other sectors, or geopolitical factors. Any shortage or delay in obtaining such hardware could limit our capacity expansion, negatively impact service performance, or result in increased costs. Failure to put in place the capacity we require could result in a reduction in, or disruption of, service to our customers and ultimately a loss of those customers. Such a failure could result in our inability to acquire new customers demanding capacity not available on our platform.

***Our services rely on the stable performance of servers, and any disruption to our servers due to internal and external factors could diminish demand for our products or solutions, harm our business, our reputation and results of operations and subject us to liability.***

We rely in part upon the stable performance of our servers for provision of our solutions, products and services. Any disruption to our servers may happen due to internal and external factors, such as inappropriate maintenance, defects in the servers, cyber-attacks targeted at us or our customers, occurrence of catastrophic events or human errors. Such disruption could result in negative publicity, loss of or delay in market acceptance of our solutions and products, loss of competitive position, lower customer retention or claims by customers for losses sustained by them. In such an event, we may need to expend additional resources to help with recovering. In addition, we do not carry insurance to compensate us for any losses that may result from claims arising from disruption in servers. As a result, our reputation and our brand could be harmed, and our business, results of operations and financial condition may be adversely affected.

Currently, most of our servers are located at the IDCs in China, while a small part of them are located abroad. While we have electronic and, to a lesser extent, physical access to the components and infrastructure of our servers, we do not control the operation of our IDC suppliers, which may be vulnerable to damage or interruption from a variety of sources, including earthquakes floods, fires, power loss, system failures, computer viruses, physical or electronic break-ins, human error, malfeasance, or interference, including by disgruntled employees, former employees, or contractors; terrorism; and other catastrophic events. Consequently, we may be subject to service disruptions as well as failures to provide adequate support for reasons that are outside of our control. We cannot assure that we can find alternative IDC suppliers when the demands for our servers surge or disruptions happen due to such catastrophic or force majeure events, which could also harm our business, results of operations and financial condition.

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***Our use of open source or third-party software could negatively affect our ability to sell our products and solutions, and subject us to possible litigation.***

Our products and platform incorporate open source software, and we expect to continue to incorporate open source software in our products and platform in the future. Courts have interpreted few of the licenses applicable to open source software, and there is a risk that these licenses could be construed in a manner that could impose unanticipated conditions or restrictions on our ability to commercialize our products and platform. Moreover, although we have implemented policies to regulate the use and incorporation of open source software into our products and platform, we cannot be certain that we have not incorporated open source software in our products or platform in a manner that is inconsistent with such policies. If we or our employees fail to comply with open source licenses, we may be subject to certain requirements, including requirements that we offer our products that incorporate the open source software for no cost, that we make available source code for modifications or derivative works we create based upon, incorporating or using the open source software and that we license such modifications or derivative works under the terms of applicable open source licenses. If an author or other third party that distributes such open source software were to allege that we had not complied with the conditions of one or more of these licenses, we could be required to incur significant legal expenses defending against such allegations and could be subject to significant damages, enjoined from generating revenues from customers using products that contained the open source software and required to comply with onerous conditions or restrictions on these products. In any of these events, we and our customers could be required to seek licenses from third parties in order to continue offering our products and platform and to re-engineer our products or platform or discontinue offering our products to customers in the event re-engineering cannot be accomplished on a timely basis. Any of the foregoing could require us to devote additional research and development resources to re-engineer our products or platform, could result in customer dissatisfaction and may adversely affect our business, results of operations and financial condition.

***Our reliance on third-party suppliers for certain essential services could adversely affect our ability to manage our business effectively and harm our business.***

We rely on third-party suppliers for certain essential products and services to operate our network and provide solutions and products to our customers. For example, we generally rely on third-party suppliers for the servers that we use and we ordinarily purchase equipment on a purchase-order basis. In addition to basic telecommunication operators, we also purchased IP addresses and bandwidth from third party providers, in order to save efforts in relation to on-site installation since related installation and relocation services were also included in the third-party providers' offering package. Moreover, third party providers sometimes offered more favorable credit terms and sufficient rack space as compared to basic telecommunication operators. We may experience shortages in components or delays in delivery, including as a result of natural disasters, increased demand in the industry or our suppliers lacking sufficient rights to supply the servers or IDCs in all jurisdictions in which we operate.

Our reliance on these suppliers exposes us to risks, including reduced control over production costs and constraints based on the then current availability, terms, and pricing of these products and services. We generally do not have any long-term contracts guaranteeing supply with these suppliers. If our supply of certain products and services is disrupted or delayed, there can be no assurance that additional supplies or services can serve as adequate replacements or that supplies will be available on terms that are favorable to us, if at all. Moreover, even if we can identify adequate replacements on substantially similar terms, our business could be adversely affected until those efforts were completed. Any disruption or delay in the supply of our hardware components may delay the opening of new network facilities, limit capacity expansion or replacement of defective or obsolete equipment at existing network facilities, or cause other constraints on our operations that could damage our customer relationships.

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On January 17, 2017, the MIIT promulgated the Notice on Cleaning Up and Regulating the Internet Access Service Market, which prohibits the "multi-level sublease" and requires that enterprises providing internet data center services and internet access services shall not sublease the IP address or bandwidth they have obtained from basic telecommunication operators to other enterprises for operating businesses such as internet data center services and internet access services, and shall also conduct comprehensive self-inspection, rectify violations of the relevant regulations in a timely manner to ensure their business operations are in compliance with the applicable laws and regulations and the network facilities and network access resources are used in a compliant manner. The regulatory authorities shall urge enterprises in violation of the abovementioned requirements to make rectifications in a timely manner and take stern actions in accordance with the laws against enterprises that refuse to make such rectifications, and under serious circumstances, such enterprises may fail to pass the annual inspection, or the licenses or permits of such enterprises may not be renewed upon expiration and their cooperation with the basic telecommunications operators may be adversely affected. Due to the evolving regulatory environment and the fact that there is no further interpretations or applications from the competent authorities on this notice, and after consulting our PRC legal counsel, we cannot be certain whether our third-party internet data center suppliers' supplying of IP address and bandwidth to us for the relevant services would be determined as non-compliant activities, if it would be determined so, how it will affect our business, financial condition and results of operations. Since April 2022, we have entered into business agreements with the basic telecommunication operators to purchase the IP address and bandwidth for all of our servers from the basic telecommunication operator directly, and accordingly to replace the network access resources purchased from third-party internet data center suppliers. We ceased to use the IP address and bandwidth purchased from third-party internet data center suppliers that are explicitly subject to the aforementioned restrictions on multi-level sublease under the Notice on Cleaning Up and Regulating the Internet Access Service Market for its internet data center business, upon the expiration of the term of the existing agreement with the non-basic basic telecommunication operator by March 31, 2023. In addition, as of the date of this annual report, we have not received any formal inquiry, notice, warning or penalty from any PRC regulatory authority in connection with the abovementioned historical cooperation with third-party internet data center suppliers. Therefore, we are of the view that the abovementioned historical cooperation with third-party suppliers does not have a material adverse impact on our business operations and financial performance as of the date of this annual report.

Furthermore, defects or errors may be found in the products and services provided by third-party suppliers, which cause damage to our own system and hardware and also to the services and products we provide to our customers, which may subsequently adversely affect our customers' operations, thereby harming our reputation and business relationship with them. There is no assurance that all such issues would be detected and resolved on time or at all. We may also be subject to legal proceedings initiated by our customers in relation to such issues. In such event, there may be material adverse effects on our reputation and financial performance as we may need to incur additional cost to settle or defend these claims or legal actions.

***We rely on third parties to provide certain support services to our products and solutions. If such parties' access to our platform, products and solutions is interrupted or delayed for any reason, or they fail to deliver quality services to the satisfaction of our customers, our business and results of operation may be harmed.***

Some of our public service customers rely on their agents when selecting suppliers or service providers, to save them from the efforts of directly negotiating with a large number of different suppliers or service providers. We work closely with these agents and leverage their understanding of end users' demands, thereby developing tailored marketing strategies. Before a public service customer launches a project for cloud solutions, it typically lays out the goals it plans to achieve and the budget for the project and engages a third-party agent, which will provide various types of assistance in project deployment, such as advising on financing plan, selecting suppliers, managing construction and integrating work products of different suppliers. If such parties fail to continuously provide high quality services to our customers, our business may be harmed.

Any interruption or delay in such parties' access to our platform, products and solutions will negatively impact our customers. Our customers depend on the continuous availability of our network for the delivery and use of our products and solutions. If all or a portion of our network were to fail, they could lose access to the internet until such disruption is resolved or they deploy disaster recovery options that allow them to bypass our network. The adverse effects of any network interruptions on our reputation and financial condition may be heightened due to the nature of our business and our customers' expectation of continuous and uninterrupted internet access and low tolerance for interruptions of any duration. While we do not consider them to have been material, we have experienced, and may in the future experience, network disruptions and other performance problems due to a variety of factors.

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***Our business is subject to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, and to interruption by man-made problems such as power disruptions, computer viruses, data security breaches or terrorism.***

China has in the past experienced significant natural disasters, including earthquakes, extreme weather conditions, as well as health scares related to epidemic diseases, and any similar event could materially impact our business in the future. If a disaster or other disruption were to occur in the future that affects the regions where we operate our business, our operations could be materially and adversely affected due to loss of personnel and damage to property. Even if we are not directly affected, such a disaster or disruption could affect the operations or financial conditions of our customers, which could harm our results of operations. In addition, our business could be affected by public health epidemics, such as the outbreak of avian influenza, severe acute respiratory syndrome, or SARS, the COVID-19 pandemic, Zika virus, Ebola virus or other diseases.

Although we maintain incident management and disaster response plans, in the event of a major disruption caused by a natural disaster or man-made problems, such as power disruptions, computer viruses, data security breaches or terrorism, we may be unable to continue our operations and may endure system interruptions, reputational harm, delays in our development activities, lengthy interruptions in service, breaches of data security and loss of critical data, any of which could adversely affect our business, results of operations and financial condition.

#### Our strategy of investments and acquiring complementary businesses and assets may fail.
As part of our business strategy, we have pursued, and intend to continue to pursue, selective strategic investments and acquisitions of businesses and assets that complement our existing business and help us execute our growth strategies. For example, we entered into a definitive agreement to acquire controlling interests in Camelot using a combination of cash and our ordinary shares as consideration in July 2021, and acquired additional minority equity interests in Camelot in 2022.

We intend to make other strategic investments and acquisitions in the future if suitable opportunities arise. Investments and acquisitions involve uncertainties and risks, including, but not limited to:

● 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;

● failure to meet the closing condition precedents or other hurdles during closing of investments and acquisitions;

● 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 and regions.

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Any failure to address these risks successfully may have a material and adverse effect on our financial condition and results of operations. Investments and acquisitions may require a significant amount of capital, which would decrease the amount of cash available for working capital or capital expenditures. In addition, if we use our equity securities to pay for investments and acquisitions, we may dilute the value of our securities. If we borrow funds to finance investments and acquisitions, such debt instruments may contain restrictive covenants that could, among other things, restrict us from distributing dividends. Moreover, acquisitions may also generate significant amortization expenses related to intangible assets. We are required to test our goodwill for impairment annually or more frequently if events or changes in circumstances indicate that they may be impaired. We may also incur significant impairment charges to earnings for investments and acquired businesses and assets.

There can be no assurance that the acquired business or asset will bring the anticipated strategic benefits to us, and we may not be able to successfully integrate acquired businesses into our existing business.

In addition, negotiating these transactions can be time-consuming, difficult and expensive, and our ability to complete these transactions may often be subject to approvals that are beyond our control. Consequently, these transactions, even if announced, may not be completed. For one or more of those transactions, we may:

● 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 occurrence of any of these foregoing could adversely affect our business, results of operations and financial condition.

***Goodwill represented a significant portion of our total assets. If our goodwill is to be impaired, our results of operations and financial condition may be adversely affected.***

As of December 31, 2025, we had goodwill of RMB4,605.7 million (US$658.6 million) which primarily arose from the acquisition of Camelot in September 2021. For details, see "Item 5. Operating and Financial Review and Prospects—5.E. Critical Accounting Estimates—Goodwill." Goodwill represented a significant portion of the total assets on our consolidated balance sheet as of December 31, 2025. The value of goodwill is based on a number of assumptions made by the management. If any of these assumptions does not materialize, or if the performance of our business is not consistent with such assumptions, we may be required to have a significant write-off of our goodwill and record a significant impairment loss. Furthermore, our determination on whether goodwill is impaired requires an estimation of the fair value of the reporting units to which the goodwill is allocated, which depends on the expected future cash flows from the reporting units. If we determine the expected future cash flow to decrease, our goodwill may be impaired. We did not record any impairment of our goodwill in 2023, 2024 and 2025. Any significant impairment of goodwill could have a material adverse effect on our business, financial condition and results of operations.

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***We are subject to risks relating to our equity investments. In particular, the fluctuation of fair value changes of our equity investment may affect our financial performance, our business and results of operations.***

In 2023, 2024 and 2025, we made certain equity investments. As of December 31, 2023, 2024 and 2025, our equity investments amounted to RMB259.9, RMB234.2 million and RMB234.2 million (US$33.5 million), respectively. The carrying value of our equity investments may be affected by a number of factors, such as change in fair value, impairment, dilution, issuance of equity securities, and currency translation differences. In particular, we are exposed to risks relating to fair value changes of our equity investment. For certain equity investments without readily determinable fair value, the methodologies that we use to assess the fair value of the equity investments involve management judgment and are inherently uncertain. There can be no assurance that we will recognize fair value gains from equity investments in the future. If we incur fair value losses, our results of operations, financial condition and prospects may be adversely affected.

We are also subject to the risk that the companies in which we invest may make business, financial or management decisions with which we disagree, and over which we do not have control, or that the majority shareholders, or the management, of these investee companies may take risks or otherwise act in a manner that does not serve our interests.

In addition, certain of our equity investments without readily determinable fair value are subject to liquidity risk. Such equity investments are not as liquid as other investment products as there is no cash inflow until dividends are received or they are disposed of by us, even if our investee companies reported profits. Furthermore, our ability to promptly sell our interests in these investee companies in response to changing economic, financial and investment conditions is limited. The market is affected by various factors, such as general economic conditions, availability of financing, interest rates and supply and demand, many of which are beyond our control. Any of those above may adversely affect our financial performance, business and results of operations.

***Our business depends substantially on the continuing efforts of our management and other key personnel, as well as a competent pool of talents that supports our existing operations and future growth. If we are unable to retain, attract, recruit and train such personnel, our business may be materially and adversely affected.***

Our future success depends heavily on the continued contributions of our senior management, many of whom are difficult to replace. In particular, we rely on the expertise, experience and vision of our senior management team. If any of our senior management becomes unable or unwilling to continue to contribute their services to us, we may not be able to replace them easily, or at all. As a result, our business may be severely disrupted, and our financial condition and results of operations may be materially and adversely affected.

Additionally, our future success also depends on our ability to attract, recruit and train a large number of qualified employees and retain existing key employees. In particular, we rely on our top notch research and development team to develop our advanced algorithms and technologies and our experienced sales personnel to maintain relationships with our customers. In order to compete for talents, we may need to offer higher compensation, better trainings and more attractive career opportunities and other benefits to our employees, which may be costly and burdensome. We cannot assure you that we will be able to attract or retain a qualified workforce necessary to support our future growth. Furthermore, any disputes between us and our employees or any labor-related regulatory or legal proceedings may divert management and financial resources, negatively impact staff morale, reduce our productivity, or harm our reputation and future recruiting efforts. In addition, our ability to train and integrate new employees into our operations may not meet the demands of our growing business. Any of the above issues related to our workforce may materially and adversely affect our operations and future growth.

***If we fail to implement and maintain an effective system of internal controls to remediate our material weakness over financial reporting, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud, and investor confidence and the market price of ADSs may be materially and adversely affected.***

As a public company, we are subject to the Sarbanes-Oxley Act of 2002. Section 404 of the Sarbanes-Oxley Act of 2002 requires us to evaluate and determine the effectiveness of our internal control over financial reporting, report any material weaknesses in such internal controls and provide a management report on internal control over financial reporting.

Our management has concluded that our internal control over financial reporting is effective as of December 31, 2025. Our independent registered public accounting firm has issued an attestation report, which has concluded that our internal control over financial reporting maintained, in all material respects, effective as of December 31, 2025.

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However, there is no assurance that we or our auditor will not identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses and render our internal control over financial reporting ineffective for any future periods. If we fail to maintain the adequacy of our internal control over financial reporting, as these standards are modified, supplemented or amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404. However, if we fail to maintain effective internal control environment, we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which could cause investors to lose confidence in our reported financial information. This could in turn limit our access to capital markets, harm our results of operations, and lead to a negative impact on the trading price of the ADSs. Additionally, ineffective internal control over financial reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the Nasdaq, regulatory investigations and civil or criminal sanctions.

***Our business is subject to the risks of international operations, including significant regulatory, economic and political risks, the failure to handle which may adversely affect our business, results of operations and financial condition.***

We have expanded our business and launched our products and solutions globally. Operating in international markets requires significant resources and management attention and will subject us to regulatory, economic and political risks in addition to those we already face in China. Because of our limited experience with international operations, as well as developing and managing sales in international markets, our international operations may not be successful.

In addition, we will face risks in doing business internationally that could adversely affect our business, including:

● 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 and regions;

● 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;

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● 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.

Also, we may incur additional costs in our international operations, and our pricing, costs and expenses for network service providers may be different outside of China from the domestic market, therefore our revenues and gross margin overseas are subject to uncertainties. As a result, our gross margin may be impacted and fluctuate as we expand our operations and customer base worldwide.

Our international operations may also be negatively affected by any deterioration of the political and economic relations between China and other countries and sanctions and export controls administered by the government authorities in the foreign countries in which we operate, and other geopolitical challenges.

Our failure to manage any of these risks successfully could harm our international operations, and adversely affect our business, results of operations and financial condition.

***Our services to highly regulated organizations are subject to a number of challenges and risks, the failure to handle which may adversely affect our business, results of operations and financial condition.***

We serve customers in highly regulated industries such as financial services, healthcare and other public service sectors, sales to which are subject to a number of challenges and risks. Selling to such highly regulated organizations can be highly competitive, expensive, and time-consuming, often requiring significant upfront time and expense without any assurance that these efforts will generate a sale. Public service contracting requirements may change and in doing so restrict our ability to sell into the public service sector until we comply with the revised requirements. Demand and payment for our services are affected by public service sector budgetary cycles and funding authorizations, with funding reductions or delays adversely affecting public service sector demand for our services. In addition, demand of public service customers for our products and solutions may be reduced or diminished subject to the future relationship between China and the United States.

Further, highly regulated organizations may demand shorter contract terms or other contractual provisions that differ from our standard arrangements, including terms that can lead those customers to obtain broader rights in our services than would be standard. Such organizations may have statutory, contractual, or other legal rights to terminate contracts with us due to a default or for other reasons, and any such termination may harm our business. In addition, these organizations may be required to publish the rates we negotiate with them, which could harm our negotiating leverage with other potential customers and in turn harm our business.

***We and our business partners with which we collaborate are subject to anti-corruption, anti-bribery, anti-money laundering, and similar laws, and noncompliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation.***

We are subject to the U.S. Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other anti-corruption, anti-bribery, anti-money laundering, and similar laws in China, the United States and other countries in which we conduct activities. Anti-corruption and anti-bribery laws, which have been enforced aggressively and are interpreted broadly, prohibit companies and their employees and agents from promising, authorizing, making, or offering improper payments or other benefits to government officials and others in the public sector. We may also leverage our business partners, including sales partners, to sell our products and solutions and host many of our facilities for our network. Our transactions and settlement arrangements with business partners may be subject to anti-money laundering laws. We may also rely on our business partners to conduct our business abroad. We and our business partners may have direct or indirect interactions with officials and employees of government agencies or state-owned or affiliated entities and we may be held liable for the corrupt or other illegal activities of our business partners and intermediaries, our employees, representatives, contractors, sales partners, even if we do not explicitly authorize such activities. Further, some of our international sales activity occurs, and some of our network infrastructure or data center is located, in parts of the world that are recognized as having a greater potential for business practices that violate anticorruption, anti-bribery, anti-money laundering, or similar laws.

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We cannot assure you that all of our employees and agents have complied with, or in the future will comply with, our policies and applicable law. The investigation of possible violations of these laws, including internal investigations and compliance reviews that we may conduct from time to time, could have a material adverse effect on our business. Noncompliance with these laws could subject us to investigations, severe criminal or civil sanctions, settlements, prosecution, loss of export privileges, suspension or debarment from Chinese government contracts and other contracts, other enforcement actions, the appointment of a monitor, disgorgement of profits, significant fines, damages, other civil and criminal penalties or injunctions, whistleblower complaints, adverse media coverage and other consequences. Other internal and government investigations, regulatory proceedings, or litigation, including private litigation filed by our shareholders, may also follow as a consequence. Any investigations, actions, or sanctions could materially harm our reputation, business, results of operations, and financial condition. Further, the promulgation of new laws, rules or regulations or new interpretations of current laws, rules or regulations could impact the way we do business in other countries, including requiring us to change certain aspects of our business to ensure compliance, which could reduce revenues, increase costs, or subject us to additional liabilities.

***Certain of our products and solutions are subject to telecommunications-related regulations, and future legislative or regulatory actions could adversely affect our business, results of operations and financial condition.***

Some of our products and solutions are subject to existing or potential telecommunication laws and regulations in China. If we do not comply with these rules and regulations, we could be subject to enforcement actions, fines, loss of licenses and possibly restrictions on our ability to operate or offer certain of our products. For example, if we enable or offer database solutions that are controversial because of their impact on certain social issues, we may experience brand or reputational harm or penalties. Any enforcement action by the competent authorities, which may be a public process, would hurt our reputation in the industry, possibly impair our ability to sell our products to customers and could adversely affect our business, results of operations and financial condition.

If we do not comply with any current or future rules or regulations that apply to our business, we could be ordered to rectify our illegal activities, subject to confiscation of illegal gains, fines or business suspension, or may be required to obtain additional license or approvals, and we cannot assure you that we will be able to timely obtain or maintain all the required licenses or approvals or make all the necessary filings in the future, and we may have to restructure our offerings, exit certain markets or raise the price of our products. In addition, any uncertainty regarding whether particular regulations apply to our business, and how they apply, could increase our costs or limit our ability to grow. Any of the foregoing could adversely affect our business, results of operations and financial condition.

***Activities of our customers or the content of their websites and other internet properties could subject us to liability.***

Through our network, we provide a wide variety of products that enable our customers to exchange information, conduct business, and engage in various online activities both domestically and internationally. Our customers may use our platform and products in violation of applicable law or in violation of our terms of service or the customer's own policies. The existing laws relating to the liability of providers of online products and services for activities of their users are highly unsettled and in flux both within China and internationally. We may be subject to lawsuits and/or liability arising from the conduct of our customers from time to time. Additionally, the conduct of our customers may subject us to regulatory enforcement actions and/or liability. We may be a defendant in a number of lawsuits both in China and abroad, alleging copyright infringement based on content that is made available through our customers' websites. There can be no assurance that we will not face litigation or regulatory enforcement actions in the future or that we will prevail in any litigation we may face. An adverse decision in one or more of these lawsuits or enforcement action could materially and adversely affect our business, results of operations, and financial condition.

Litigations may subject us to claims arising from activities of our customers and content on their websites for large potential damages based on a significant number of online occurrences under statutory or other damage theories. Such claims may result in liability that exceeds our ability to pay. Even if claims against us are ultimately unsuccessful, defending against such claims will increase our legal expenses and divert management's attention from the operation of our business, which could materially and adversely impact our business and results of operations.

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Policies and laws in this area remain highly dynamic, and we may face additional theories of intermediary liability in various jurisdictions. For example, the European Union (the EU) approved a copyright directive that will impose additional obligations on online platforms and failure to comply could give rise to significant liability. Other new laws like this, may also expose internet companies like us to significant liability. We may incur additional costs to comply with these new laws, which may have an adverse effect on our business, results of operations, and financial condition.

***Failure to comply with laws and regulations applicable to our business could subject us to fines and penalties and could also cause us to lose customers or otherwise harm our business.***

Our business is subject to regulation by various governmental agencies in China, including agencies responsible for monitoring and enforcing compliance with various legal obligations, such as value-added telecommunication laws and regulations, privacy and data protection-related laws and regulations, intellectual property laws, employment and labor laws, workplace safety, environmental laws, consumer protection laws, governmental trade laws, import and export controls, anti-corruption and anti-bribery laws, and tax laws and regulations. In certain jurisdictions, these regulatory requirements may be more stringent than in China. These laws and regulations impose added costs on our business. Non-compliance with applicable regulations or requirements could subject us to:

● 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.

If any governmental sanctions are imposed, or if we do not prevail in any possible civil or criminal litigation, our business, results of operations, and financial condition could be adversely affected. In addition, responding to any action will likely result in a significant diversion of our management's attention and resources and an increase in professional fees. Enforcement actions and sanctions could materially harm our business, results of operations, and financial condition.

Additionally, companies in the technology industry have experienced increased regulatory scrutiny. Any reviews by regulatory agencies or legislatures may result in substantial regulatory fines, changes to our business practices, and other penalties, which could negatively affect our business and results of operations. Changes in social, political, and regulatory conditions or in laws and policies governing a wide range of topics may cause us to change our business practices. Further, our expansion into a variety of new fields also could raise a number of new regulatory issues. These factors could negatively affect our business and results of operations in material ways.

Moreover, we are exposed to the risk of actual or alleged misconduct, unscrupulous business practices, errors, failure to functions or other non-compliance by us, our management, employees, any companies we acquire or invest in or by its affiliates or current or former employees before, during or after our acquisition or investments, and parties that we collaborate with, who may from time to time be subject to litigation and regulatory investigations and proceedings or otherwise face potential liability and penalties in relation to noncompliance with applicable laws and regulations, which could harm our reputation and business.

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***Misconduct and omissions by our employees or business partners could harm our business and reputation.***

Misconduct and omissions by our employees could subject us to liability or negative publicity. Although we have implemented strict human resources risk management policies, and we have in place an employee handbook approved by our management and distributed to all our employees that contains broad internal rules and guidelines and cover areas such as best commercial practices, work ethics, fraud prevention mechanisms and regulatory compliance, there can be no assurance that our employees will not engage in misconducts or omissions that could materially and adversely affect our business, financial condition and results of operations.

***We may in the future be subject to legal proceedings and litigation, including intellectual property or contractual disputes, which are costly and may subject us to significant liability and increased costs of doing business. Our business may be adversely affected if it is alleged or determined that our technology infringes the intellectual property rights of others.***

The cloud service industry is characterized by the existence of a large number of patents, copyrights, trademarks, trade secrets, and other intellectual property rights. Companies in the cloud service industry are often required to defend against litigation claims based on allegations of infringement or other violations of intellectual property rights. Our technologies may not be able to withstand any third-party claims or rights against their use. In addition, many of these companies have the capability to dedicate substantially greater resources to enforce their intellectual property rights and to defend claims that may be brought against them. Any litigation may also involve patent holding companies or other adverse patent owners that have no relevant product revenues and against which our patents may therefore provide little or no deterrence. If a third party is able to obtain an injunction preventing us from accessing such third-party intellectual property rights, or if we cannot obtain license or develop technology for any infringing aspect of our business, we would be forced to limit or stop selling products impacted by the claim or injunction or cease business activities covered by such intellectual property, and may be unable to compete effectively. Any inability to obtain license of third-party technology in the future would have an adverse effect on our business or operating results, and would adversely affect our ability to compete. We may also be contractually obligated to indemnify our customers in the event of infringement of a third party's intellectual property rights. We may receive demands for such indemnification from time to time. Furthermore, some customers may choose to settle their payments with us through parties not directly contracted with us. Despite our internal control measures, we could be subject to possible claims from third-party payors for return of funds as they were not contractually indebted to us and possible claims from liquidators of third-party payors. In addition, certain of our agreements with our customers and/or third-party service providers may include uncertainties on pricing, fees and others, which may expose us to potential claims as well. Responding to such claims, including those currently pending, regardless of their merit, can be time-consuming, costly to defend in litigation, and damage our reputation and brand.

Lawsuits are time-consuming and expensive to resolve and they divert management's time and attention. We may not have insurance to cover potential claims of this type or to indemnify us for all liability that may be imposed. We cannot predict the outcome of lawsuits, and the results of any such actions may harm our business.

***We could incur substantial costs in protecting or defending our intellectual property rights, and any failure to protect our intellectual property could adversely affect our business, results of operations and financial condition.***

Our success depends, in part, on our ability to protect our brand and the proprietary methods and technologies that we develop under patent and other intellectual property laws in China and foreign jurisdictions so that we can prevent others from using our inventions and proprietary information. As of the date of this annual report, we have registered 1,528 patents, 716 trademarks, 910 copyrights, and 135 domain names in China and overseas. There can be no assurance that any patents that have been issued or that may be issued in the future will provide significant protection for our intellectual property. If we fail to protect our intellectual property rights adequately, our competitors might gain access to our technology and our business, results of operations and financial condition may be adversely affected.

We have obtained licenses from Kingsoft Group to use some of its registered trademarks during their terms of registration, including "金山云" and "Kingsoft Cloud," and some of its trademarks, which are still in the process of registration applications or renewal, during the period of such applications and the term of the registrations if such trademarks have been registered afterwards. We have also obtained licenses from Kingsoft Group to use some of its registered patents during their terms of registration. However, we cannot assure you that Kingsoft Group will continue to authorize us to use the trademarks and patents, and if they do not, our business may be materially and adversely impacted. For example, if we are no longer authorized by Kingsoft Group to use such trademarks, we may not be able to use the relevant brand names and domain names, which may materially harm our market awareness and brand recognition.

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There can be no assurance that the particular forms of intellectual property protection that we seek, including business decisions about when to file trademark applications and patent applications, will be adequate to protect our business. We may have to spend significant resources to monitor and protect our intellectual property rights. Litigation may be necessary in the future to enforce our intellectual property rights, determine the validity and scope of our proprietary rights or those of others, or defend against claims of infringement or invalidity. Such litigation could be costly, time-consuming and distracting to management, result in a diversion of significant resources, the narrowing or invalidation of portions of our intellectual property and have an adverse effect on our business, results of operations and financial condition. Our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights or alleging that we infringe the counterclaimant's own intellectual property. Any of our patents, copyrights, trademarks or other intellectual property rights could be challenged by others or invalidated through administrative process or litigation.

We also rely, in part, on confidentiality agreements and non-compete agreements with our business partners, employees, consultants, advisors, customers and others in our efforts to protect our proprietary technology, processes and methods. These agreements may not effectively prevent disclosure of our confidential information, and it may be possible for unauthorized parties to copy our software or other proprietary technology or information, or to develop similar software independently with us lacking an adequate remedy for unauthorized use or disclosure of our confidential information. In addition, others may independently discover our trade secrets and proprietary information, and in these cases we would not be able to assert any trade secret rights against those parties. Costly and time-consuming litigation could be necessary to enforce and determine the scope of our proprietary rights, and failure to obtain or maintain trade secret protection could adversely affect our competitive business position. In addition, to the extent we expand our international activities, our exposure to unauthorized copying, transfer and use of our proprietary technology or information may increase.

We cannot be certain that our means of protecting our intellectual property and proprietary rights will be adequate or that our competitors will not independently develop similar technology. If we fail to meaningfully protect our intellectual property and proprietary rights, our business, results of operations and financial condition could be adversely affected.

***Leakage or misappropriation of know-how, confidential information and trade secrets from unauthorized copying, use or disclosure could have an adverse impact on our reputation and operations.***

During the course of providing our services, we may have access to and be entrusted with information that is confidential in nature, such as information that relates to our customers' systems, operations, raw data or affairs. While we have adopted measures to protect the confidentiality of our customers' information, including our internal control manual and the nondisclosure arrangements with our employees, there is no assurance that the steps taken by us will successfully prevent any leakage or misappropriation of confidential information of our customers. Any leakage or misappropriation of confidential information of our customers could expose us to complaints or claims, which may materially and adversely affect our reputation and business operations.

In addition, we seek to protect our know-how, confidential information and trade secrets, in part, by entering into non-disclosure and confidentiality agreements or other means to such effect, with parties who have access to them, such as our employees. Despite these efforts, any of these parties may breach such agreements, intentionally or unintentionally and disclose our proprietary information and we may not be aware of or able to obtain adequate remedies for such breaches. The unauthorized disclosure and/or misappropriation of trade secrets is difficult to detect and/or to prove. As such, it is difficult, expensive and time-consuming to establish trade secret misappropriation claims, with no guarantee of success or adequate remedies. Such disclosures could also lead to a loss of trade secret protection, which could materially and adversely affect our business, competitive position, financial conditions and results of operations.

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***Significant impairment of our property and equipment could materially impact our financial position and results of our operations.***

We have recorded a significant amount of property and equipment. As of December 31, 2023, 2024 and 2025 our property and equipment, net was RMB2,186.1 million, RMB4,630.1 million, and RMB10,094.9 million (US$1,443.5 million), respectively. We evaluate our property and equipment for impairment whenever events or changes in circumstances, indicate that the carrying amount of the property and equipment in an asset group may not be fully recoverable. When these events occur, we evaluate the recoverability of property and equipment by comparing the carrying amount of the asset groups to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the asset groups, we recognize an impairment loss based on the excess of the carrying amount of the asset groups over their fair value. The application of this long-lived asset impairment test requires significant management judgment. If our estimates and judgments are inaccurate, the fair value determined could be inaccurate and the impairment may not be adequate, and we may need to record additional impairments in the future. We record RMB653.7 million, RMB919.7 million and nil impairment of our property and equipment in 2023, 2024 and 2025. However, we may record significant impairments on property and equipment in the future. Any significant impairment losses charged against our property and equipment could have a material adverse effect on our results of operations.

#### Significant impairment of our intangible assets could materially impact our financial position and results of our operations.
We have recorded a significant amount of intangible assets, which consist primarily of customer relationships, trademarks and domain names, software and copyrights and patents and technologies. As of December 31, 2023, 2024 and 2025, our intangible assets, net was RMB834.5 million, RMB694.9 million and RMB532.8 million (US$76.2 million), respectively. We evaluate our intangible assets for impairment whenever events or changes in circumstances, indicate that the carrying amount of the intangible assets in an asset group may not be fully recoverable. When these events occur, we evaluate the recoverability of intangible assets by comparing the carrying amount of the asset groups to the future undiscounted cash flows expected to result from the use of the asset groups and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, we recognize an impairment loss based on the excess of the carrying amount of the asset groups over their fair value. The application of this long-lived asset impairment test requires significant management judgment. If our estimates and judgments are inaccurate, the fair value determined could be inaccurate and the impairment may not be adequate, and we may need to record additional impairments in the future. We did not record any impairment of our intangible asset groups in 2023, 2024 and 2025. However, we may record significant impairments on intangible assets in the future. Any significant impairment losses charged against our intangible assets could have a material adverse effect on our results of operations.

#### We may be subject to impairment losses on prepayments and other assets.
As of December 31, 2023, 2024 and 2025, we recorded prepayments and other assets of RMB2,683.5 million, RMB2,683.1 million and RMB2,732.2 million (US$390.7 million), respectively. Our prepayments and other assets primarily consist of contract assets net of allowance for credit loss, VAT prepayments, individual income tax receivable, prepayments to suppliers and prepayments for electronic equipment. We may be subject to impairment losses on prepayments and other assets if the actual recoverability of prepayments and other assets is lower than the expected level, which could adversely affect our cash flow and our ability to meet our working capital requirements, thereby adversely affecting our business, financial condition and results of operations.

***We experience fluctuations in our financial results and key metrics, making it difficult to project future results, and if we fail to meet the expectations of securities analysts or investors, the price of our ordinary shares and/or ADSs and the value of your investment could decline.***

Our operating results, as well as our key metrics have fluctuated in the past and are expected to fluctuate in the future due to a variety of factors, many of which are outside of our control. As a result, our past results may not be indicative of our future performance and period-to-period comparisons of our operating results and key metrics may not be meaningful. In addition to the other risks described herein, factors that may affect our operating results include the following:

● macro-economic and other conditions in China and worldwide;

● fluctuations in demand for or pricing of our solutions and products;

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● 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.

Any of the foregoing and other factors may cause our results of operations to vary significantly. If our quarterly results of operations fall below the expectations of investors and securities analysts who follow our shares, the price of our ordinary shares and/or the ADSs could decline substantially, and our business could be harmed.

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***The estimates of market opportunity, forecasts of market growth included in this annual report may prove to be inaccurate, and any real or perceived inaccuracies may harm our reputation and negatively affect our business. Even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all.***

Market opportunity estimates and growth forecasts included in this annual report are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. The variables that go into the calculation of our market opportunities are subject to change over time, and there is no guarantee that any particular number or percentage of addressable companies covered by our market opportunities estimates will purchase our products and solutions at all or generate any particular level of revenues for us. Even if the market in which we compete meets the size estimates and growth forecasted in this annual report, our business could fail to grow for a variety of reasons, including reasons outside of our control, such as competition in our industry. The information has not been independently verified by us, and no representation is given as to its accuracy. Collection methods of such information may be flawed or ineffective, or there may be discrepancies between published information and market practice, which may result in the statistics being inaccurate or not comparable to statistics produced for other economies. You should therefore not place undue reliance on such information. In addition, we cannot assure you that such information is stated or compiled on the same basis or with the same degree of accuracy as similar statistics presented elsewhere. In any event, you should consider carefully the importance placed on such information or statistics.

***We face exposure to foreign currency exchange rate fluctuations, and such fluctuations could adversely affect our business, results of operations and financial condition.***

The conversion of Renminbi into foreign currencies, including Hong Kong dollars and the U.S. dollars, is based on rates set by the People's Bank of China. The value of the Renminbi against Hong Kong dollars, the U.S. dollar and other currencies has in the past fluctuated significantly, and may in the future continue to do so, affected by, among other things, changes in political and economic conditions and the foreign exchange policy adopted by the PRC government. With the development of the foreign exchange market and progress towards interest rate liberalization and Renminbi internationalization, the PRC government may in the future announce further changes to the exchange rate system, and we cannot assure you that the Renminbi will not appreciate or depreciate significantly in value against Hong Kong dollars and the U.S. dollar in the future. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi, Hong Kong dollars and the U.S. dollar in the future. Substantially all of our revenues and costs are denominated in Renminbi.

We are a holding company and we rely on dividends paid by our operating subsidiaries in China for our cash needs. Any significant revaluation of Renminbi may materially and adversely affect our results of operations and financial position reported in Renminbi when translated into U.S. dollars and Hong Kong dollars, and the value of, and any dividends payable on, the ADSs in U.S. dollars and the ordinary shares in Hong Kong dollars. To the extent that we need to convert U.S. dollars into Renminbi for our operations, appreciation of the Renminbi against the U.S. dollar would have an adverse effect on the Renminbi amount we would receive. Conversely, if we decide to convert our Renminbi into U.S. dollars or Hong Kong dollars for the purpose of making payments for dividends on our ordinary shares or ADSs or for other business purposes, appreciation of the U.S. dollar or Hong Kong dollar against the Renminbi would have a negative effect on the U.S. dollar or Hong Kong dollar amount.

***We have granted, and may continue to grant, share-based awards, which will increase our share-based compensation and may have an adverse effect on our results of operations.***

We have adopted various equity incentive plans, including a share option scheme adopted in February 2013 (as amended in June 2013, May 2015 and December 2016), or the 2013 Share Option Scheme, a share award scheme adopted in February 2013 (as amended in January 2015, March 2016, June 2016, December 2018 and November 2019), or the 2013 Share Award Scheme, and a share incentive plan adopted in November 2021 (as amended on December 20, 2022 with such amendments to take effect immediately upon Listing), or the 2021 Share Incentive Plan. In addition, we granted share-based awards in connection with our acquisitions. In 2023, 2024 and 2025, we incurred share-based compensation of RMB181.6 million, RMB214.4 million and RMB446.9 million (US$63.9 million), respectively. We believe the granting of share-based awards is of significant importance to our ability to attract and retain key personnel and employees, and we will continue to grant share-based awards in the future. As a result, our expenses associated with share-based compensation will increase, which may have an adverse effect on our results of operations.

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***We may have exposure to greater than anticipated tax liabilities.***

Due to shifting economic and political conditions, tax policies and laws, tax rates in various jurisdictions may be subject to significant changes in ways that could impair our financial results. Various jurisdictions around the world have enacted or are considering enacting digital services taxes, which could lead to inconsistent and potentially overlapping international tax regimes applicable to highly-digitalized businesses. In 2021, the Organization for Economic Cooperation and Development announced an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large multinational corporations at a minimum rate of 15%. Subsequently, multiple sets of administrative guidance have been issued. Various tax jurisdictions have either enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 with the adoption of additional components in later years, or announced their plans to enact such legislation in future years. We will continue to evaluate the impact of such legislative initiatives in the tax jurisdictions in which we operate. There are uncertainties regarding the rules and implementations, and there is no guarantee that these changes will not affect our financial results.

***Increases in labor costs and uncertainties in labor-related regulatory requirements in the PRC may adversely affect our business and results of operations.***

China's economy has experienced increases in labor costs in recent years. China's overall economy and the average wage in China are expected to continue to grow. We expect that our staff costs, including wages and employee benefits, will continue to increase. Unless we are able to pass on these increased labor costs to our customers by increasing prices for our products or services, our profitability and results of operations may be materially and adversely affected.

In addition, we have been subject to stricter regulatory requirements in terms of entering into labor contracts with our employees and paying various statutory employee benefits, including pensions, housing fund, medical insurance, work-related injury insurance, unemployment insurance and childbearing insurance to designated government agencies for the benefit of our employees. Compared with its predecessors, the current Labor Contract Law of the PRC imposes stricter requirements on employers in terms of signing labor contracts, minimum wages, paying remuneration, determining the term of employees' probation and unilaterally terminating labor contracts, further increasing our labor-related costs such as by limiting our ability to terminate some of our employees or otherwise change our employment or labor practices in a cost-effective manner. In addition, as the interpretation and implementation of labor-related laws and regulations are still developing, we cannot completely eliminate the labor-related risks, and cannot assure you that we have complied or will be able to comply with all labor-related law and regulations including those relating to obligations to make full social insurance payments and contribute to the housing provident funds. If we are deemed to have violated relevant labor laws and regulations, we could be subject to labor disputes and government investigation, and may be required to provide additional compensation to our employees, and our business, financial condition and results of operations will be adversely affected. In addition, any labor shortages, major labor disputes, increased labor cost or other factors affecting our labor force in relation thereto, may adversely affect our business, profitability and reputation.

***Failure to pay the social insurance premium and housing provident funds for and on behalf of our employees in accordance with the Labor Contract Law or comply with other related regulations of the PRC may have an adverse impact on our financial conditions and results of operation.***

PRC laws and regulations require us to pay several statutory social welfare benefits for our employees, including pension insurance, unemployment insurance, medical insurance, work-related injury insurance, maternity insurance and housing provident fund. The amounts of our contributions for our employees under such benefit plans are calculated based on certain percentage of salaries, including bonuses and allowances, up to a maximum amount specified by the local government from time to time at locations where we operate. In 2023, 2024 and 2025 and up to the date of this annual report, we had not made full contributions to the social insurance plan and housing provident fund based on the actual salary level of some of our employees as prescribed by relevant laws and regulations. As of the date of this annual report, we had not received any notice from the local authorities or any claim or request from the relevant employees that require us to make payments or impose upon us administrative penalties for insufficient contributions. We have made provisions of RMB19.0 million, RMB19.0 million and RMB24.3 million (US$3.5 million) in our consolidated statements of comprehensive loss for the shortfall in our social insurance and housing provident fund contributions for the years ended December 31, 2023, 2024 and 2025, respectively.

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Pursuant to relevant PRC laws and regulations, the under-contribution of social insurance within a prescribed period may subject us to a daily overdue charge of 0.05% of the delayed payment amount. If such payment is not made within the stipulated period, the competent authority may further impose a fine of one to three times of the overdue amount. Pursuant to relevant PRC laws and regulations, if there is a failure to pay the full amount of housing provident fund as required, the housing provident fund management center may require payment of the outstanding amount within a prescribed period. If the payment is not made within such time limit, an application may be made to the PRC courts for compulsory enforcement. We cannot assure you that the relevant government authorities will not require us to pay the outstanding amount within a prescribed time and impose late charges or fines on us, which may materially and adversely affect our business, financial condition and results of operations.

***We face certain risks relating to the real properties that we lease, which may adversely affect our business.***

We lease real properties for our office and other uses in China. Some of the ownership certificates or other similar proofs of certain leased properties have not been provided to us by the relevant lessors. Therefore, we cannot assure you that such lessors are entitled to lease the relevant real properties to us. If the lessors are not entitled to lease the real properties to us and the owners of such real properties decline to ratify the lease agreements between us and the respective lessors, we may not be able to enforce our rights to lease such properties under the respective lease agreements against the owners. As of the date of this annual report, we are not aware of any claim or challenge brought by any third parties concerning the use of our leased properties without obtaining proper ownership proof. If our lease agreements are claimed as null and void by third parties who are the real owners of such leased real properties, we could be required to vacate the properties, in which event we could only initiate the claim against the lessors under relevant lease agreements for indemnities for their breach of the relevant leasing agreements. We cannot assure you that suitable alternative locations are readily available on commercially reasonable terms, or at all, and if we are unable to relocate our operations in a timely manner, our operations may be interrupted.

Certain of our leased properties' current usages are not in conformity with the permitted usages prescribed in the relevant title certificates. Nonconformity with the property's planned use may lead to fines imposed by the competent authority, and in extreme case, government order to revoke the lease or reclaim the land. In addition, certain of our leased properties are subject to mortgages. If the mortgagees foreclose our leased properties with prior-registered mortgages, we may be unable to continue the use of such properties.

The lease agreements for some of our leased properties have not been registered with the PRC governmental authorities as required by the PRC laws. Although the failure to do so does not in itself invalidate the leases, we may be ordered by the PRC government authorities to rectify such noncompliance and, if such noncompliance were not rectified within a given period of time, we may be subject to fines imposed by PRC government authorities ranging from RMB1,000 and RMB10,000 for each of our lease agreements that has not been registered with the relevant PRC governmental authorities.

As of the date of this annual report, for the lease agreements which have not been registered with the government authorities, we are not aware of any regulatory or governmental actions, claims or investigations being contemplated or any challenges by third parties to our use of the relevant leased properties. However, we cannot assure you that the government authorities will not impose fines on us due to our failure to register any of our lease agreements, which may negatively impact our financial condition.

#### We currently do not have any business insurance coverage.
Insurance companies in China currently do not offer as extensive an array of insurance products as insurance companies in more developed economies. Currently, we do not have any business liability or disruption insurance to cover our principal businesses, which is consistent with the general market practice in cloud service industry. We have determined that the costs of insuring for these risks and the difficulties associated with acquiring such insurance on commercially reasonable terms make it impractical for us to have such insurance. Any uninsured business disruptions may result in our incurring substantial costs and the diversion of resources, which could have an adverse effect on our results of operations and financial condition.

#### We may be required to change our registered address or relocate our operating offices under PRC law.
Under PRC law, the registered address of a company shall be its main premises for business operations. If a company intends to set up other premises for business operation outside its registered address, the company shall register those premises for business operation as branch offices with the relevant local market regulation authorities at the place where the premises are located and obtain business licenses for them as branch offices.

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Currently, some of our subsidiaries have set up premises for business operations outside their registered addresses as the operating addresses, and use these premises as the main premises for business operations, primarily due to our business development needs. We plan to change the registered address of our subsidiaries to its operating addresses or register such premises as branch offices if requested by any governmental authorities. However, we may not be able to do so in a timely manner or at all due to complex procedural requirements and relocation of branch offices from time to time. In the future, we may expand our business to additional locations in China and we may fail to update the registered address for our subsidiaries or register those premises as branch offices in a timely manner. As advised by our PRC legal counsel, if the PRC regulatory authorities determine that we are in violation of the relevant laws and regulations, we may be ordered to rectify, subject to fines if we refuse to rectify, and our business licenses may be revoked under serious circumstances. As of the date of this annual report, we have not received any regulatory or governmental penalties in relation to the registered address of our subsidiaries. Based on the foregoing and the internal control measures mentioned below, after consulting our PRC legal counsel, we believe our business operations outside the registered addresses do not have a material adverse impact on our business operations and financial performance as of the date of this annual report. We have taken the following internal control measures to prevent future occurrence of such non-compliance: (i) we will enhance our property management to closely review and monitor the main premises for business operations against our subsidiaries' registered address; (ii) we will enhance our company-wide legal training to ensure our future compliance with the relevant regulatory requirements; and (iii) we will consult our PRC legal counsel on a regular basis for advice on relevant PRC laws and regulations to keep us abreast of relevant regulatory developments.

#### Risks Relating to Our Relationships with Kingsoft Group and Xiaomi
***If we are no longer able to benefit from our business cooperation with Kingsoft Group or Xiaomi Group and its ecosystem, our business may be adversely affected.***

Kingsoft Corporation, our major shareholder, is a leading software company in China. Xiaomi, another major shareholder of our company, is a consumer electronics and smart manufacturing company with smartphones and smart hardware connected by an IoT platform at its core. Our business has benefited from Kingsoft Group's and Xiaomi Group's brand names, strong market positions and ecosystems. We cooperate with Kingsoft Group and Xiaomi Group in various areas, such as cross-referrals, artificial intelligence, electronic vehicle, devices for IoT-smart living solutions and WPS office software. We cannot assure you that we will be able to continue to benefit from our relationships with Kingsoft Group and Xiaomi Group in the future. To the extent that we cannot maintain our relationships with Kingsoft Group and Xiaomi Group on terms favorable to us, or at all, we will need to find replacement for services and device providers, which may not be done in a timely manner and/or on commercially reasonable terms, or at all, and we may lose access to key strategic assets, which could result in material and adverse effects on our business and results of operations.

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***Kingsoft Group and Xiaomi Group are our existing customers, from which we received a portion of revenues and made borrowings. Failure to maintain the relationships with them would result in lower revenues and could adversely impact our business, operation results and financial conditions.***

We have, and believe that we will continue to, derive a portion of our revenues and made borrowings from Kingsoft Group and Xiaomi Group. Revenues from Kingsoft Group in the aggregate accounted for 3.3%, 3.8% and 4.0% of our total revenues in 2023, 2024 and 2025, respectively. Revenues from Xiaomi Group in the aggregate accounted for 12.3%, 16.4% and 23.4% of our total revenues in 2023, 2024 and 2025, respectively. In addition, we entered into several loan agreements with Kingsoft Corporation and Xiaomi Group. As of December 31, 2025, we had outstanding loans payable in the amount of RMB559.8 million (US$80.1 million) to Xiaomi Group, respectively. Any failure to maintain close relationships with them will result in declines in our revenues, which could have an adverse effect on our business, results of operations and financial condition.

***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.***

We have benefited, and expect to continue to benefit, significantly from Kingsoft Group's and Xiaomi's strong brand recognitions, which enhance our reputation and credibility. Any policy changes, punishment or litigation against Kingsoft Group or Xiaomi, or any negative publicity associated with Kingsoft Group or Xiaomi, or any negative development with respect to their market positions, financial conditions or compliance with applicable legal or regulatory requirements will likely have an adverse impact on our reputation and brand. If Kingsoft Group's or Xiaomi's market position weakens, the effectiveness of our sales and marketing through them may be impaired, which may in turn have a negative impact on our business, financial condition and results of operations. See "Item 7. Major shareholders and Related Party Transactions—7.B. Related Party Transactions" for more information about our related party transactions with Kingsoft Group and Xiaomi.

***Certain existing shareholders have substantial influence over our company and their interests may not be aligned with the interests of our other shareholders.***

Two of our principal shareholders, Kingsoft Corporation Limited and Xiaomi, have substantial influence over our company. As of March 31, 2026, Kingsoft Corporation beneficially owned 32.9% of our issued and outstanding shares and Xiaomi beneficially owned 10.3% of our issued and outstanding shares. Mr. Tao Zou, the chairman of the board, our executive director and acting chief executive officer, also serves as an executive director and the chief executive officer at Kingsoft Corporation. Ms. Yi Li, our chief financial officer, also serves as the acting chief financial officer, a vice president and the finance director of Kingsoft Corporation. Mr. Heng Qu, our non-executive director, also serves as a vice president and chairman of the group technology committee of Xiaomi. Mr. Duo Zhang, our non-executive director, also serves as the general manager of infrastructure technology platform department and head of the artificial intelligence platform department of Xiaomi. As of the date of this annual report, none of our other directors or executive officers holds any position at Kingsoft Group or Xiaomi Group.

They may take actions that are not in the best interest of us or our other shareholders and conflicts of interest between them and us may arise as a result of their operation of or investment in businesses that compete with us. Such concentration of ownership and corporate governance mechanism may discourage, delay or prevent a change in control of our company, which could deprive our shareholders of a premium for their shares as part of a sale of our company and may reduce the price of our ordinary shares and the ADSs. These actions may be taken even if they are opposed by our other shareholders. In addition, such significant concentration of share ownership and corporate governance mechanism may adversely affect the trading price of our ordinary shares and the ADSs due to investors' perception that conflicts of interest may exist or arise.

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***We may have conflicts of interest with Kingsoft Group or Xiaomi Group and we may not be able to resolve such conflicts on terms favorable to us.***

Conflicts of interest may arise between Kingsoft Group or Xiaomi Group and us in a number of areas relating to our ongoing relationships. Potential conflicts of interest that we have identified mainly include the following:

● Collaboration with Kingsoft Group and Xiaomi Group. We have a number of cooperation arrangements with Kingsoft Group and Xiaomi Group, 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 Group and Xiaomi Group, respectively, where they are entitled to subscribe such number of ordinary shares to maintain their respective existing shareholding in our company upon completion of such placing and issuance of new ordinary shares by our company. Moreover, we entered into several loan agreements with Xiaomi Group, and had outstanding loans payables in the amount of RMB559.8 million (US$80.1 million) as of December 31, 2025.

● Allocation of business opportunities. There may arise business opportunities in the future that both we, Kingsoft Group and/or Xiaomi Group, are interested in and which may complement each of our respective businesses. Kingsoft Group and Xiaomi Group hold a large number of business interests, some of which may directly or indirectly compete with us. Kingsoft Group and Xiaomi Group 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 any applicable securities laws, Kingsoft Group or Xiaomi Group 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 our ordinary shares and the ADSs.

● Developing business relationships with Kingsoft Group's and Xiaomi Group's competitors. We may be limited in our ability to do business with Kingsoft Group's and Xiaomi Group's competitors, which may limit our ability to serve the best interests of our company and our other shareholders or holders of our ordinary shares and the ADSs.

● Our directors may have conflicts of interest. Certain of our directors and/or employees are also directors and/or employees of Kingsoft Group and/or Xiaomi Group. 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 Group and us.

Kingsoft Group and Xiaomi Group may from time to time make strategic decisions that they believe are in the best interests of their businesses, which may be different from the decisions that we would have made on our own. Kingsoft Group's and Xiaomi Group's decisions with respect to us or our business may favor Kingsoft Group and Xiaomi Group and therefore the Kingsoft Group and Xiaomi Group shareholders, which may not necessarily be aligned with our interests and the interests of our other shareholders. Kingsoft Group and Xiaomi Group may make decisions that may disrupt or discontinue our collaborations with Kingsoft Group and Xiaomi Group. If Kingsoft Group and Xiaomi Group were to compete with us, our business, financial condition, results of operations and prospects could be materially and adversely affected. Although we have an audit committee, consisting of independent non-executive directors, to review and approve all proposed related party transactions, including those between Kingsoft Group or Xiaomi Group and us, we may not be able to resolve all potential conflicts of interest, and even if we do so, the resolution may be less favorable to us than if we were dealing with a non-controlling shareholder.

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***There might be discrepancies between our continuing disclosures on our financial and operating results and those of Kingsoft Group due to differences in accounting policies and data consolidation on the group level.***

As a listed company on SEHK, Kingsoft Group has been required to disclose its consolidated financial results. As a subsidiary controlled by and an important business unit of Kingsoft Group before our initial public offering on Nasdaq in May 2020, our historical financial results have been included in the consolidated financial statements of Kingsoft Group under IFRS since our inception. After our initial public offering on Nasdaq, we are an associate of Kingsoft Group. Their consolidated financial statements will thus record a share of loss from us and will also disclose our summary financial information under IFRS. The financial results disclosed in this annual report and those to be disclosed or to be furnished to SEC and SEHK are prepared in accordance with U.S. GAAP and may not be consistent with Kingsoft Group's financial statements due to different accounting policies.

#### Risks Relating to Our Corporate Structure and the Contractual Arrangements
***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.***

Foreign investment in the value-added telecommunication services industry in China is extensively regulated and subject to numerous restrictions. Pursuant to the Special Administrative Measures (Negative List) for the Access of Foreign Investment (2024 version) published by the NDRC and the Ministry of Commerce on September 6, 2024 and effective on November 1, 2024, and other applicable laws, regulations and rules, foreign investment is not permitted in the types of business that do not fall within China's commitment to the WTO to open up unless in the pilot zones where further opening-up policies are implemented, and as for the value-added telecommunications business types which fall within China's commitment to the WTO, except as otherwise stipulated by the state, foreign investors are not allowed to own more than 50% of the equity interests in a value-added telecommunication services provider.

To ensure strict compliance with the PRC laws and regulations, we currently conduct such business activities through the VIEs. We have entered into a series of contractual arrangements with the VIEs and their shareholders, which enable us to (i) receive substantially all of the economic benefits and absorb substantially all of the economic losses of the VIEs, and (ii) have an exclusive option to purchase all or part of the equity interests and assets in the VIEs when and to the extent permitted by PRC law. As a result of these contractual arrangements, we are the primary beneficiary of the VIEs for accounting purpose and hence consolidate their financial results as the VIEs under U.S. GAAP, to the extent the conditions for the consolidation of the VIE under U.S. GAAP are satisfied.

If the PRC government finds that our contractual arrangements do not comply with its restrictions on foreign investment in the value-added telecommunication services, or if the PRC government otherwise finds that we, the VIEs, or any of their subsidiaries are in violation of PRC laws or regulations or lack the necessary permits or licenses to operate our business, the relevant PRC regulatory authorities would have discretion in dealing with such violations or failures, including, without limitation:

● 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, or derive economic interests from the VIEs.

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Any of these actions could cause significant disruption to our business operations and severely damage our reputation, which would in turn materially and adversely affect our business, financial condition and results of operations. We also cannot be certain that equity interests in the VIEs will be disposed of in accordance with the contractual arrangements among our PRC subsidiaries, the VIEs, and nominee shareholders of the VIEs. In addition, new PRC laws, regulations, and rules may be introduced to impose additional requirements, posing additional challenges to our corporate structure and contractual arrangements. If any of these occurrences results in our inability to direct the activities of the VIEs that most significantly impact its economic performance and/or our failure to receive the economic benefits from the VIEs, and/or our inability to claim our contractual control rights over the assets of the VIEs that conduct substantially all of our operations in China, we may not be able to consolidate the VIEs in our consolidated financial statements in accordance with U.S. GAAP, which could materially and adversely affect our financial condition and results of operations and cause our ordinary shares and/or the ADSs to significantly decline in value or become worthless.

***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.***

The variable interest entity structure has been adopted by many PRC-based companies, including us, to obtain necessary licenses and permits in the industries that are currently subject to foreign investment restrictions in China. The Ministry of Commerce published a discussion draft of the proposed Foreign Investment Law in January 2015, or the 2015 Draft FIL, according to which, variable interest entities that are controlled via contractual arrangements would also be deemed as foreign-invested entities, if they are ultimately "controlled" by foreign investors. In March 2019, the PRC National People's Congress promulgated the Foreign Investment Law, and in December 2019, the State Council promulgated the Implementing Rules of the Foreign Investment Law of the People's Republic of China, or the Implementing Rules, to further clarify and elaborate the relevant provisions of the Foreign Investment Law. The Foreign Investment Law and the Implementing Rules both became effective from January 1, 2020. Pursuant to the Foreign Investment Law, "foreign investments" refer to investment activities conducted by foreign investors (including foreign natural persons, foreign enterprises or other foreign organizations) directly or indirectly in the PRC, which include any of the following circumstances: (i) foreign investors setting up foreign-invested enterprises in the PRC solely or jointly with other investors, (ii) foreign investors obtaining shares, equity interests, property portions or other similar rights and interests of enterprises within the PRC, (iii) foreign investors investing in new projects in the PRC solely or jointly with other investors, and (iv) investment in other methods as specified in laws, administrative regulations, or as stipulated by the State Council. The Foreign Investment Law and the Implementing Rules do not introduce the concept of "control" in determining whether a company would be considered as a foreign-invested enterprise, nor do they explicitly provide whether the variable interest entity structure would be deemed as a method of foreign investment. However, the Foreign Investment Law has a catch-all provision that includes into the definition of "foreign investments" made by foreign investors in China in other methods as specified in laws, administrative regulations, or as stipulated by the State Council, and as relevant government authorities may promulgate more laws, regulations or rules on the interpretation and implementation of the Foreign Investment Law, the possibility cannot be ruled out that the concept of "control" as stated in the 2015 Draft FIL may be embodied in, or the variable interest entity structure adopted by us may be deemed as a method of foreign investment by, any of such future laws, regulations and rules. If the VIEs were deemed as a foreign-invested enterprise under any of such future laws, regulations and rules, and any of the businesses that we operate would be in the "negative list" for foreign investment and therefore be subject to foreign investment restrictions or prohibitions, further actions required to be taken by us under such laws, regulations and rules may materially and adversely affect our business, financial condition and results of operations.

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Furthermore, if foreign investment related laws, administrative regulations or rules change in the future, we may need to take further actions with respect to the VIEs for the purpose of having better operational control on the VIEs or continuously satisfying applicable requirements of the stock exchange where we list. For example, the Administrative Regulations on Foreign-Invested Telecommunications Enterprises were amended by the State Council and took effect on May 1, 2022 (the "2022 FITE Regulations"). The 2022 FITE Regulations canceled the qualification requirement on the primary foreign investor in a foreign invested value-added telecommunications enterprise for having a good track record and operational experience in the value-added telecommunications industry as stipulated in the previous version. On April 8, 2024, the MIIT issued the Notice on the Pilot Program for Expanding the Opening up of Value-added Telecommunications Services, which provides that pilots will be set up in Beijing, Shanghai, Shenzhen and Hainan, and the local governments will be responsible for formulating pilot plans, which will be subject to review and approval by the MIIT before implementation. The Notice cancels the restriction on shareholding percentage for foreign investment in enterprises in pilot zones, which operate value-added telecommunications services, including IDC Service, CDN Service, and ISP Service, online data processing and transaction processing service, information releasing platforms and delivery services included in information services (excluding the operation of internet news information, online publishing, online audio and video, and internet culture), as well as information protection and processing services. The relevant local telecommunication authorities have subsequently published the guidance to implement the aforementioned notice. Given these regulatory development and any further detailed implementing rules or pilot plans that the PRC governmental authority may formulate in the future, we may need to take further actions with respect to the VIEs for the purpose of having better operational control on the VIEs or satisfying applicable requirements of the stock exchange where we list, which will be subject to a number of uncertainties, including adjusting the contractual arrangements with the VIEs, registration of the transfer of the equity interests of the VIEs and their subsidiaries, registration of the new equity pledges, and obtaining additional operating permits, approvals or making amendments to our current operating permits, including the VAT Licenses. However, we may face substantial uncertainties as to whether we can complete such actions in a timely manner, or at all. Failure to take timely and appropriate measures to cope with any of these or similar regulatory compliance challenges could materially and adversely affect our current corporate structure, corporate governance, financial conditions and business operations.

***The Company relies 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.***

The Company has relied and expect to continue to rely on contractual arrangements with Zhuhai Kingsoft Cloud and Kingsoft Cloud Information and the registered shareholders to operate the business in China. These contractual arrangements may not be as effective as direct ownership in providing the Company with control over the VIEs. For example, the VIEs and their respective shareholders could breach their contractual arrangements with the Company by, among other things, failing to conduct their operations in an acceptable manner or taking other actions that are detrimental to our interests. The revenues contributed by the VIEs and their subsidiaries constituted a majority of our revenues in 2023, 2024 and 2025. If the VIEs cease to transfer economic benefits to us, our business, results of operations and financial condition would be materially and adversely affected, and the price of our ordinary shares and/or the ADSs may decline significantly.

If the Company had direct ownership of the VIEs, the Company would be able to exercise its rights as a shareholder to effect changes in the board of directors of the VIEs, which in turn could implement changes, subject to any applicable fiduciary obligations, at the management and operational level. However, under the current contractual arrangements, the Company relies on the performance by the VIEs and their respective shareholders of their respective obligations under the contracts to exercise control over the VIEs. The shareholders of the VIEs may not act in the best interests of our company or may not perform their obligations under these contracts. Such risks exist throughout the period in which we intend to operate a certain portion of our business through the contractual arrangements with the VIEs and their respective shareholders. If any dispute relating to these contracts remains unresolved, we will have to enforce our rights under these contracts through the operations of PRC law and arbitration, litigation or other legal proceedings and we cannot predict the outcomes of such arbitration, litigation or other legal proceedings. Therefore, our contractual arrangements with the VIEs and their respective shareholders may not be as effective in controlling our business operations as direct ownership.

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***Any failure by the VIEs or the registered shareholders to perform their obligations under our contractual arrangements with them would have a material and adverse effect on our business.***

If the VIEs or the registered shareholders fail to perform their respective obligations under the contractual arrangements, we could be limited in our ability to enforce the contractual arrangements that allow us to obtain economic benefits from them in the PRC and may have to incur substantial costs and expend additional resources to enforce such arrangements. We may also have to rely on legal remedies under PRC law, including seeking specific performance or injunctive relief, and claiming damages, which we cannot assure will be effective under PRC law. For example, if the shareholders of the VIEs refuse to transfer their equity interest in the VIEs to our PRC subsidiaries or their designee after we exercise the purchase option pursuant to these contractual arrangements, or if they otherwise act in bad faith or otherwise fail to fulfill their contractual obligations, we may have to take legal actions to compel them to perform their contractual obligations. In addition, if there are any disputes or governmental proceedings involving any interest in such shareholders' equity interests in the VIEs, our ability to exercise shareholders' rights or foreclose the share pledges according to the contractual arrangements may be impaired. If these disputes or proceedings were to impair our control over the VIEs, we may not be able to exert effective control over our business operations in the PRC and thus would not be able to continue to consolidate the VIEs' financial results, which would in turn result in a material adverse effect on our business, operations and financial condition.

***Our contractual arrangements are governed by PRC law. Accordingly, these contracts would be interpreted in accordance with PRC law, and any disputes would be resolved in accordance with PRC legal procedures. Uncertainties regarding the interpretation and enforcement of the relevant PRC laws and regulations could limit our ability to enforce the contractual arrangements.***

All the agreements under our contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in China. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. Uncertainties regarding the interpretation and enforcement of the relevant PRC laws and regulations could limit our ability to enforce the contractual arrangements. Meanwhile, there are very few precedents and little formal guidance as to how contractual arrangements in the context of VIEs should be interpreted or enforced under PRC law. There remain uncertainties regarding the ultimate outcome of such arbitration should legal action become necessary. In addition, under PRC law, rulings by arbitrators are final, parties cannot appeal the arbitration results in courts, and if the losing parties fail to carry out the arbitration awards within a prescribed time limit, the prevailing parties may only enforce the arbitration awards in PRC courts through arbitration award recognition proceedings, which would require additional expenses and delay. In the event we are unable to enforce these contractual arrangements, or if we suffer significant delay or other obstacles in the process of enforcing these contractual arrangements, we may not be able to exert effective control over the VIEs, and our ability to conduct our business may be negatively affected. See "—Risks Relating to Doing Business in China—Changes and developments in the PRC legal system and the interpretation and enforcement of PRC laws, rules and regulations may subject us to uncertainties."

***The shareholders of the VIEs may have actual or potential conflicts of interest with us, which may materially and adversely affect our business and financial condition.***

The shareholders of the VIEs may have actual or potential conflicts of interest with us. These shareholders may not remain as shareholders of the VIEs, or may breach, or cause the VIEs to breach, or refuse to renew, the existing contractual arrangements we have with them and the VIEs, which would have a material and adverse effect on our ability to effectively control the VIEs and receive economic benefits from them, which may result in deconsolidation of the VIEs. For example, the shareholders may be able to cause our agreements with the VIEs to be performed in a manner adverse to us by, among other things, failing to remit payments due under the contractual arrangements to us on a timely basis. We cannot assure you that when conflicts of interest arise any or all of these shareholders will act in the best interests of our company or such conflicts will be resolved in our favor. Currently, we do not have any arrangements to address potential conflicts of interest between these shareholders and our company. If we cannot resolve any conflict of interest or dispute between us and these shareholders, we would have to rely on legal proceedings, which could result in disruption of our business and subject us to substantial uncertainty as to the outcome of any such legal proceedings.

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***Contractual arrangements in relation to the VIEs may be subject to scrutiny by the PRC tax authorities and they may determine that we, our subsidiaries or the VIEs owe additional taxes, which could negatively affect our financial condition and the value of your investment.***

Under applicable PRC laws and regulations, arrangements and transactions among related parties may be subject to audit or challenge by the PRC tax authorities within ten years after the taxable year when the transactions are conducted. We could face material and adverse tax consequences if the PRC tax authorities determine that the contractual arrangements between the VIEs, our subsidiaries and us were not entered into on an arm's-length basis in such a way as to result in an impermissible reduction in taxes under applicable PRC laws, rules and regulations, and adjust the income of the VIEs in the form of a transfer pricing adjustment. A transfer pricing adjustment could, among other things, result in a reduction of expense deductions recorded by the VIEs for PRC tax purposes, which could in turn increase its tax liabilities without reducing our PRC subsidiaries' tax expenses. In addition, the PRC tax authorities may impose interest and/or other penalties on the VIEs for the adjusted but unpaid taxes according to the applicable regulations. Our financial position could be materially and adversely affected if the VIEs' tax liabilities increase or if they are required to pay interest and/or other penalties on the adjusted but unpaid taxes.

***We may lose the ability to use, or otherwise benefit from, the licenses, approvals and assets held by the VIEs, which could severely disrupt our business, render us unable to conduct some or all of our business operations and constrain our growth.***

As part of our contractual arrangements with the VIEs, the VIEs hold certain assets, licenses and permits that are critical to our business operations, including the Value-added Telecommunications Business Operation License. The contractual arrangements contain terms that specifically obligate the VIEs' shareholders to ensure the valid existence of the VIEs and restrict the disposal of material assets of the VIEs. However, in the event the VIEs' shareholders breach the terms of these contractual arrangements and voluntarily liquidate any of the VIEs, or any of the VIEs declares bankruptcy and all or part of its assets become subject to liens or rights of third-party creditors, or are otherwise disposed of or encumbered without our consent, we may be unable to conduct some or all of our business operations or otherwise benefit from the assets held by the VIEs, which could have a material adverse effect on our business, financial condition and results of operations. Furthermore, under the contractual arrangements, the VIEs may not, in any manner, sell, transfer, mortgage or dispose of their material assets or legal or beneficial interests in the business without our prior consent. If any of the VIEs undergoes a voluntary or involuntary liquidation proceeding, its shareholders or unrelated third-party creditors may claim rights to some or all of the assets of the VIEs, thereby hindering our ability to operate our business as well as constrain our growth.

#### Risks Relating to Doing Business in China
***A severe or prolonged downturn in the PRC or global economy could materially and adversely affect our business, results of operations and financial condition.***

The global macro-economic environment is facing challenges, including the adverse impact on the global economies and financial markets. There is considerable uncertainty over the long-term effects of the expansionary monetary and fiscal policies adopted by the central banks and financial authorities of some of the world's leading economies, including the United States and China. The prolonged Russia-Ukraine conflict continues to disrupt global energy and commodity markets, contributing to heightened geopolitical instability across Europe and beyond. There have been concerns over unrest and terrorist threats in the Middle East, Europe and Africa, including the escalating tensions and military confrontations between the United States and Iran, the ongoing Israel-Hamas conflict, and broader destabilization across the Middle East region. There have also been concerns on the relationship among certain Asian countries, which may result in or intensify potential conflicts in relation to territorial disputes. The trade disputes and broader strategic rivalry between the United States and China, including restrictions on technology exports, investment curbs, and tariff escalations, continue to pose significant risks. These ongoing tensions between the United States and China may have tremendous negative impact on the economies of not merely the two countries concerned, but the global economy as a whole. It is unclear whether these challenges and uncertainties will be contained or resolved, and what effects they may have on the global political and economic conditions in the long term. Economic conditions in China are sensitive to global economic conditions, changes in domestic economic and political policies, and the expected or perceived overall economic growth rate in China. Although growth of China's economy remained relatively stable, there is a possibility that China's economic growth may materially decline in the near future. Any severe or prolonged slowdown in the global or PRC economy may materially and adversely affect our business, results of operations and financial condition.

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#### We may be adversely affected by rising international political tensions.
Rising international political tensions, especially political tensions between the United States and China, could reduce levels of trades, investments, technological exchanges and other economic activities between the two major economies, which would have a material adverse effect on global economic conditions and the stability of global financial markets. Any of these factors could have a material adverse effect on our business, prospects, financial condition and results of operations.

We are closely monitoring potential changes in international trade policy and assessing the potential impact of such trade policy changes on our business operations and financial performance. For example, on April 2, 2025, President Trump announced that the United States would impose a 10% tariff on all countries, effective on April 5, 2025, and an individualized reciprocal higher tariff on countries with which the United States has the largest trade deficits. As of the date of this annual report, the United States imposed a total tariff rate of 145% on goods imported from China, and China imposed a retaliatory 125% tariff on goods imported from the United States. These policies have adversely affected the global economy and financial markets, such as significant declines in the global stock markets. We believe that such tariffs would not have a material imminent impact on our business operations, but as relevant policies are rapidly evolving, it may be difficult to evaluate their potential future impacts. Geopolitical conflicts like this may also lead to volatility in financial markets, fluctuations in currency exchange rates, increased procurement costs and declines in trading prices of our ordinary shares and the ADSs. In extreme cases, such conflicts could result in economic downturns that materially and adversely impact our operations.

Any unfavorable government policies on international trade, such as capital controls or tariffs, may affect the demand for our products and services, impact the competitive position of our products or prevent us from selling products in certain countries. If any new tariffs, legislation and/or regulations are implemented, or if existing trade agreements are renegotiated or, in particular, if any government takes retaliatory trade actions due to the recent global trade tension, such changes could have an adverse effect on our business, financial condition and results of operations.

Moreover, the heightened geopolitical uncertainty and potential for further escalation may discourage investments in securities issued by China-based issuers (including us) and affect the global macroeconomic environment. For example, it has been reported that the U.S. administration may consider imposing further restrictions or prohibitions on trading of Chinese securities. If any legislation were to be enacted or any regulations were to be adopted along these lines, it could negatively affect the attitudes of investors towards China-based issuers listed in the United States in general, which also could have a material and adverse impact on the trading price of our ordinary shares and/or the ADSs.

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#### Changes in China's economic or social conditions or government policies could have a material adverse effect on our business and operations.
Substantially all of our assets and operations are located in China. Accordingly, our business, financial condition, results of operations and prospects may be influenced to a significant degree by economic and social conditions in China generally. The Chinese economy differs from the economies of most developed countries in many respects, including the level of government involvement, level of development, growth rate, control of foreign exchange and allocation of resources. In addition, the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies. The Chinese government also exercises significant control over China's economic growth through allocating resources, setting monetary policy and providing preferential treatment to particular industries or companies. While the economy in China has grown significantly over the past decades, growth has been uneven, both geographically and among various sectors of the economy, and the rate of growth has been slowing in recent years. Any adverse changes in economic conditions in China, in the policies of the Chinese government or in the laws and regulations in China could potentially have a material adverse effect on the overall economic growth of China. Such developments could adversely affect our business and results of operations, lead to a reduction in demand for our services and adversely affect our competitive position. The Chinese government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the overall Chinese economy, but may have a negative effect on us. For example, our financial condition and results of operations may be adversely affected by government control over capital investments or changes in tax regulations. For another example, if there are adverse changes in economic conditions in China, businesses may be negatively impacted thus may cut their procurement budget for cloud services, including procurement of our cloud services. The Chinese government also has significant authority to exert influence on the ability of a China-based issuer, such as our company, to conduct its business and control over securities offerings conducted overseas and/or foreign investments in such issuer. The Chinese government may intervene or influence the operations of a China-based issuer at any time, which could result in a material change in our operations and/or the value of our ordinary shares and/or ADSs. In particular, there have been statements by the PRC government indicating an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers. Any such regulatory oversight or control could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of our ordinary shares and ADSs to significantly decline or become worthless. See "—Changes and developments in the PRC legal system and the interpretation and enforcement of PRC laws, rules and regulations may subject us to uncertainties." In addition, in the past the Chinese government has implemented certain measures, including interest rate adjustment, to control the pace of economic growth. These measures may cause decreased economic activity in China, which may adversely affect our business and results of operations.

***Changes and developments in the PRC legal system and the interpretation and enforcement of PRC laws, rules and regulations may subject us to uncertainties.***

The PRC legal system is evolving rapidly, and the PRC governmental authorities may continue to promulgate new laws and regulations regulating our business. We cannot assure you that our business operations would not be deemed to violate any existing or future PRC laws or regulations, which in turn may limit or restrict us, and could materially and adversely affect our business and operations.

From time to time, we may have to resort to administrative and court proceedings to enforce our legal rights. However, since PRC judicial and administrative authorities have discretion in interpreting and implementing statutory and contractual terms, it may be difficult to predict the outcome of a judicial or administrative proceeding. Furthermore, the PRC legal system is based, in part, on government policies and other forms of guidance. As a result, we may not always be aware of any potential violation of these policies and rules. These uncertainties may impede our contractual, property and procedural rights, which could adversely affect our business, financial condition and results of operations.

The PRC government has oversight and discretion over the conduct of our business and may regulate our operations in accordance with relevant PRC laws, regulations and rules as the government deems appropriate to further achieve regulatory, political and societal goals. The PRC government has historically published new policies that significantly affected certain industries such as the education and internet industries, and we cannot rule out the possibility that it will in the future release regulations or policies regarding our industry that could adversely affect our business, financial condition and results of operations. Furthermore, the PRC government has also promulgated laws and regulations on securities offerings and other capital markets activities that are conducted overseas and foreign investment in China-based companies like us. Any such action, once taken by the PRC government, could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or in extreme cases, become worthless.

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***You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in China against us or our management based on foreign laws.***

We are a company incorporated under the laws of the Cayman Islands, we conduct substantially all of our operations in China, and substantially all of our assets are located in China. In addition, all our directors and senior executive officers named in this annual report reside within China for a significant portion of time and most are PRC nationals. As a result, it may be difficult for our shareholders to effect service of process upon us or those persons inside China. In addition, China does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts with the Cayman Islands and many other countries and regions. Therefore, recognition and enforcement in China of judgments of a court in any of these non-PRC jurisdictions in relation to any matter not subject to a binding arbitration provision may be difficult or impossible.

Shareholder claims that are common in the United States, including securities law class actions and fraud claims, generally are difficult to pursue as a matter of law or practicality in China. For example, in China, there are significant legal and other obstacles to obtaining information needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities. Although the local authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or region to implement cross-border supervision and administration, such regulatory cooperation with the securities regulatory authorities in the United States has not been efficient in the absence of a mutual and practical cooperation mechanism. According to Article 177 of the PRC Securities Law, which became effective in March 2020, no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the territory of the PRC. Accordingly, without the consent of the competent PRC securities regulators and relevant authorities, no organization or individual may provide the documents and materials relating to securities business activities to overseas parties.

There is uncertainty as to whether the judgment of United States courts will be directly enforced in Hong Kong, as the United States and Hong Kong do not have a treaty or other arrangements providing for reciprocal recognition and enforcement of judgments of courts of the United States in civil and commercial matters. However, a foreign judgment may be enforced in Hong Kong at common law by bringing an action in a Hong Kong court since the judgment may be regarded as creating a debt between the parties to it, provided that the foreign judgment, among other things, is a final judgment conclusive upon the merits of the claim and is for a liquidated amount in a civil matter and not in respect of taxes, fines, penalties, or similar charges. Such a judgment may not, in any event, be so enforced in Hong Kong if (a) it was obtained by fraud; (b) the proceedings in which the judgment was obtained were opposed to natural justice; (c) its enforcement or recognition would be contrary to the public policy of Hong Kong; (d) the court of the United States was not jurisdictionally competent; or (e) the judgment was in conflict with a prior Hong Kong judgment."

***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.***

The PRC government authorities may strengthen oversight over offerings that are conducted overseas and/or foreign investment in overseas-listed China-based issuers like us. Such actions taken by the PRC government authorities may influence our operations from time to time, which are beyond our control. For instance, the relevant PRC governments promulgated the Opinions on Strictly Cracking Down on Illegal Securities Activities, among which, it is mentioned that the administration and supervision of overseas-listed China-based companies will be strengthened, and the special provisions of the State Council on overseas issuance and listing of shares by such companies will be revised, clarifying the responsibilities of domestic industry competent authorities and regulatory authorities.

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On February 17, 2023, the CSRC promulgated the Overseas Listing Trial Measures, and relevant five guidelines on the application of Regulatory Rules, which took effect from March 31, 2023, requiring Chinese domestic companies' overseas securities offerings or listings be filed with the CSRC. Pursuant to Overseas Listing Trial Measures, a filing-based regulatory system will be applied to both "direct" and "indirect" overseas offering or listing of PRC domestic companies. The "indirect overseas offering or listing" of PRC domestic companies refers to such securities offering or listing in an overseas market made in the name of an offshore entity, but based on the underlying equity, assets, earnings or other similar rights of a domestic company which operates its main business domestically. If the issuer meets both of the following conditions, the offering or listing shall be determined as an indirect overseas offering or listing by a domestic company: (i) more than 50% of the issuer's operating revenue, total profit, total assets or net assets as documented in its audited consolidated financial statements for the most recent accounting year is accounted for by domestic companies; (ii)the main parts of the issuer's business activities are conducted in Chinese Mainland, its main place(s) of business are located in Chinese Mainland, or the senior managers in charge of its business operation and management are mostly PRC citizens or domiciled in Chinese Mainland. The Overseas Listing Trial Measures provide, among others, that Chinese domestic companies that have already directly or indirectly offered and listed securities in overseas markets prior to the effectiveness of the Overseas Listing Trial Measures shall fulfil their filing obligations and report relevant information to the CSRC within three working days after the completion of any subsequent securities offering on the same overseas market, and follow the relevant reporting requirements within three working days upon the occurrence and public disclosure of any specified circumstances provided thereunder. We may be required to file the relevant documents with the CSRC and complete the filing procedures with the CSRC in connection with any future offshore securities offering. Failure to complete the filing under the Administrative Provisions and Filing Measures may subject a PRC domestic company to a warning and a fine of RMB1 million to RMB10 million, which could have a material and adverse effect on our business, financial condition, results of operations, reputation and prospects. In addition, we cannot guarantee that new rules or regulations promulgated in the future will not impose any additional requirement on us or otherwise tighten the regulations on PRC companies seeking overseas offering or listing.

Furthermore, on February 24, 2023, the CSRC and several other Chinese authorities promulgated the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies, or the Revised Confidentiality and Archives Administration Provisions, which came into effect on March 31, 2023. According to the Revised Confidentiality and Archives Administration Provisions, Chinese companies that directly or indirectly conduct overseas offerings or listings, shall strictly abide by the relevant laws and regulations on confidentiality when providing or publicly disclosing, either directly or through their overseas listed entities, documents and materials to securities services providers such as securities companies and accounting firms or overseas regulators in the process of their overseas offering or listing. The PRC domestic companies shall obtain approval from the competent authority and file with the confidential administration department at the same level when providing or publicly disclosing documents and materials related to state secrets or secrets of the governmental authorities to the relevant securities companies, securities service agencies or the offshore regulatory authorities or providing or publicly disclosing such documents and materials through its offshore listing entity, and shall complete corresponding procedures when providing or publicly disclosing documents and materials which may adversely influence national security and the public interest to the relevant securities companies, securities service agencies or the offshore regulatory authorities or providing or publicly disclosing such documents and materials through its offshore listing entity. The PRC domestic companies shall provide written statements on the implementation on the aforementioned rules to the relevant securities companies and securities service agencies and the PRC domestic companies shall not provide accounting files to an overseas accounting firm unless such firm comply with the corresponding procedures. As the Revised Confidentiality and Archives Administration Provisions are newly issued, uncertainties still exist with respect to its interpretation, implementation and enforcement, and we cannot guarantee we will comply with such provisions in all respects during the course of our future overseas offering or listing activities.

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If the CSRC or other PRC regulatory authorities subsequently determines that we need to obtain their approval or complete the required filing or other administrative procedures for any future offshore securities offering, or if such government authorities promulgate any interpretation or implement rules that would require us to obtain approvals from the CSRC or other regulatory authorities or complete required filing or other administrative procedures for any future offshore securities offering, it is uncertain whether we can or how long it will take us to obtain such approval or complete such filing or other administrative procedures, or obtain any waiver of aforesaid requirements if and when procedures are established to obtain such waiver. Any failure to obtain or delay in obtaining such approval or completing such filing or other required administrative procedures for any future offshore securities offering, or a rescission of any such approval obtained by us, could subject us to sanctions by the CSRC or other PRC regulatory agencies. In any such event, these regulatory authorities may also impose fines and other penalties on our operations in China, limit our operating privileges in China, delay or restrict the repatriation of the proceeds from our offshore offerings into the PRC or take other actions that could adversely affect our business, operating results and financial condition, as well as our ability to complete any future offshore securities offering. The CSRC or any other PRC government authorities may also take actions requiring us, or making it advisable for us, to halt our offshore offerings before settlement and delivery of our ordinary shares offered thereby. Consequently, if you engage in market trading or other activities in anticipation of and prior to settlement and delivery, you do so at the risk that such settlement and delivery may not occur. Any uncertainties or negative publicity regarding such approval requirements could materially and adversely affect the trading price of our ordinary shares and the ADSs.

***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.***

We are a Cayman Islands holding company and we rely principally on dividends and other distributions on equity from our PRC subsidiaries for our cash requirements, including for services of any debt we may incur. The ability of our PRC subsidiaries to pay dividends and other distributions on equity, in turn, depends on the payment they receive from the VIEs as service fees pursuant to certain contractual arrangements among our PRC subsidiaries, the VIEs and the VIEs' shareholders entered into to comply with certain restrictions under PRC law on foreign investment. For more details related to the VIE structure, please see "Item 4. Information on the Company—4.C. Organizational Structure—Contractual Arrangements with the VIEs and Their Respective Shareholders."

Our PRC subsidiaries' ability to distribute dividends is based upon their distributable earnings. Current PRC regulations permit our PRC subsidiaries to pay dividends to their respective shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, each of our PRC subsidiaries and each of the VIEs and their subsidiaries is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of each of their registered capitals. These reserves are not distributable as cash dividends. If our PRC subsidiaries incur debt on their own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments to us. Any limitation on the ability of our PRC subsidiaries to distribute dividends or other payments to their respective shareholders could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our businesses, pay dividends or otherwise fund and conduct our business.

With respect to our Hong Kong entities, although currently there are not equivalent or similar restrictions or limitations in Hong Kong on cash transfers in, or out of, our Hong Kong entities (including currency conversion), if certain restrictions or limitations in Chinese Mainland were to become applicable to cash transfers in and out of Hong Kong entities (including currency conversion) in the future, the funds in our Hong Kong entities, likewise, may not be available to meet our cash demand."

To address the persistent capital outflow and the RMB's depreciation against the U.S. dollar in the fourth quarter of 2016, the People's Bank of China and SAFE, implemented a series of capital control measures in subsequent months, including stricter vetting procedures for China-based companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan repayments. For instance, the Circular on Promoting the Reform of Foreign Exchange Management and Improving Authenticity and Compliance Review, issued on January 26, 2017, provides that the banks shall, when dealing with dividend remittance transactions from a domestic enterprise to its offshore shareholders of more than US$50,000, review the relevant board resolutions, original tax filing form and audited financial statements of such domestic enterprise based on the principal of genuine transaction. The PRC government may continue to strengthen its capital controls and our PRC subsidiaries' dividends and other distributions may be subject to tightened scrutiny in the future. Any limitation on the ability of our PRC subsidiaries to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

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In addition, the Enterprise Income Tax Law and its implementation rules provide that a withholding tax at a rate of 10% will be applicable to dividends payable by Chinese companies to non-PRC-resident enterprises unless reduced under treaties or arrangements between the PRC central government and governments of other countries or regions where the non-PRC resident enterprises are tax resident. Pursuant to the tax agreement between Chinese Mainland and Hong Kong, the withholding tax rate in respect to the payment of dividends by a PRC enterprise to a Hong Kong enterprise may be reduced to 5% from a standard rate of 10% if the Hong Kong enterprise directly holds at least 25% of the PRC enterprise. Under administrative guidance, a Hong Kong resident enterprise must meet the following conditions, among others, in order to apply the reduced withholding tax rate: (i) it must be a company; (ii) it must directly own the required percentage of equity interests and voting rights in the PRC resident enterprise; and (iii) it must have directly owned such required percentage in the PRC resident enterprise throughout the 12 months prior to receiving the dividends. Nonresident enterprises are not required to obtain pre-approval from the relevant tax authority in order to enjoy the reduced withholding tax rate. Instead, nonresident enterprises and their withholding agents may, by self-assessment and on confirmation that the prescribed criteria to enjoy the tax treaty benefits are met, directly apply the reduced withholding tax rate, and file necessary forms and supporting documents when performing tax filings, which will be subject to post-tax filing examinations by the relevant tax authorities. Accordingly, our Hong Kong subsidiary may be able to benefit from the 5% withholding tax rate for the dividends it receives from our PRC subsidiaries, if it satisfies the conditions prescribed under the relevant tax rules and regulations. However, if the relevant tax authorities consider the transactions or arrangements we have are for the primary purpose of enjoying a favorable tax treatment, the relevant tax authorities may adjust the favorable withholding tax in the future. Accordingly, there is no assurance that the reduced 5% will apply to dividends received by our Hong Kong subsidiary from our PRC subsidiaries. This withholding tax will reduce the amount of dividends we may receive from our PRC subsidiaries.

***The custodians or authorized users of our controlling non-tangible assets, including chops and seals, may fail to fulfill their responsibilities, or misappropriate or misuse these assets.***

Under PRC law, legal documents for corporate transactions, including agreements and contracts, are executed using the chop or seal of the signing entity or with the signature of a legal representative whose designation is registered and filed with relevant PRC market regulation authorities.

In order to secure the use of our chops and seals, we have established internal control procedures and rules for using these chops and seals. In any event that the chops and seals are intended to be used, the responsible personnel will submit the application which will then be verified and approved by authorized employees in accordance with our internal control procedures and rules. In addition, in order to maintain the physical security of our chops, we generally have them stored in secured locations accessible only to authorized employees. Although we monitor such authorized employees, the procedures may not be sufficient to prevent all instances of abuse or negligence. There is a risk that our employees could abuse their authority, for example, by entering into a contract not approved by us or seeking to gain control of one of our subsidiaries or VIEs. If any employee obtains, misuses or misappropriates our chops and seals or other controlling non-tangible assets for whatever reason, we could experience disruption to our normal business operations. We may have to take corporate or legal action, which could involve significant time and resources to resolve and divert management from our operations.

***PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay us from using the proceeds of our offshore offerings to make loans or additional capital contributions to our PRC subsidiaries and from making loans to the VIEs, which could materially and adversely affect our liquidity and our ability to fund and expand our business.***

We are an offshore holding company conducting our operations in China through our PRC subsidiaries and the VIEs. We may make loans to our PRC subsidiaries and VIEs subject to the approval from governmental authorities and limitation of amount, or we may make additional capital contributions to our PRC subsidiaries in China.

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Any loans to our PRC subsidiaries in China, which are treated as foreign-invested enterprises under PRC law, are subject to PRC regulations and foreign exchange loan registrations. For example, loans by us to our PRC subsidiaries in China to finance their activities cannot exceed statutory limits and must be registered with the local counterpart of SAFE. In addition, a foreign invested enterprise shall use its capital pursuant to the principle of authenticity and self-use within its business scope. The capital of a foreign invested enterprise shall not be used for the following purposes: (i) directly or indirectly used for payment beyond the business scope of the enterprises or the payment prohibited by relevant laws and regulations; (ii) directly or indirectly used for investment in securities investments other than banks' principal-secured products unless otherwise provided by relevant laws and regulations; (iii) the granting of loans to non-affiliated enterprises, except where it is expressly permitted in the business license; and (iv) paying the expenses related to the purchase of real estate that is not for self-use (except for the foreign-invested real estate enterprises).

SAFE promulgated the Notice of the State Administration of Foreign Exchange on Reforming the Administration of Foreign Exchange Settlement of Capital of Foreign-invested Enterprises, or SAFE Circular 19, effective June 2015, which was last amended on March 23, 2023, in replacement of the Circular on the Relevant Operating Issues Concerning the Improvement of the Administration of the Payment and Settlement of Foreign Currency Capital of Foreign-Invested Enterprises, the Notice from the State Administration of Foreign Exchange on Relevant Issues Concerning Strengthening the Administration of Foreign Exchange Businesses, and the Circular on Further Clarification and Regulation of the Issues Concerning the Administration of Certain Capital Account Foreign Exchange Businesses. Although SAFE Circular 19 allows RMB capital converted from foreign currency-denominated registered capital of a foreign-invested enterprise to be used for equity investments within China, it also reiterates the principle that RMB converted from the foreign currency-denominated capital of a foreign-invested company may not be directly or indirectly used for purposes beyond its business scope. Thus, it is unclear whether SAFE will permit such capital to be used for equity investments in China in actual practice. SAFE promulgated the Notice of the State Administration of Foreign Exchange on Reforming and Standardizing the Foreign Exchange Settlement Management Policy of Capital Account, or SAFE Circular 16, effective on June 9, 2016, which reiterates some of the rules set forth in SAFE Circular 19, but changes the prohibition against using RMB capital converted from foreign currency-denominated registered capital of a foreign-invested company to issue RMB entrusted loans to a prohibition against using such capital to issue loans to non-associated enterprises. Violations of SAFE Circular 19 and SAFE Circular 16 could result in administrative penalties. SAFE Circular 19 and SAFE Circular 16 may significantly limit our ability to transfer any foreign currency we hold to our PRC subsidiaries, which may adversely affect our liquidity and our ability to fund and expand our business in China.

On October 23, 2019, SAFE issued the Circular on Further Promoting Cross-Border Trade and Investment Facilitation, or Circular 28, which took effect on the same day and was recently amended on December 4, 2023, by the Circular on Further Deepening the Reform to Facilitate Cross-border Trade and Investment. Circular 28, subject to certain conditions, allows foreign-invested enterprises whose business scope does not include investment, or non-investment foreign-invested enterprises, to use their capital funds to make equity investments in China. The Notice on Further Deepening Reforms to Promote the Facilitation of Trade and Investment provides that qualified high-tech, "professional, sophisticated, unique and new" and technology-based small and medium-sized enterprises located in specified provinces or cities may borrow foreign debt on their own, provided the amount of debt does not exceed the equivalent of US$10 million. In addition, this notice restructured the asset realization account of capital accounts to the settlement account of capital accounts. Funds denominated in foreign currency received in consideration of an equity transfer by a domestic equity transferor (including entities and individuals) from domestic parties, as well as the foreign exchange funds raised by domestic enterprises through overseas listing may be directly remitted to the settlement account of capital accounts. Funds in the settlement account of capital accounts may be settled and used at the discretion of the account holder.

In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, we cannot assure you that we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis, if at all, with respect to future loans to our PRC subsidiaries or VIEs or future capital contributions by us to our wholly foreign-owned subsidiaries in China. As a result, uncertainties exist as to our ability to provide prompt financial support to our PRC subsidiaries or VIEs when needed.

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***Governmental control of currency conversion may limit our ability to utilize our revenues effectively and affect the value of your investment.***

The PRC government imposes controls on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China. We receive substantially all of our revenues in Renminbi. Under our current corporate structure, our Cayman Islands holding company primarily relies on dividend payments from our PRC subsidiaries to fund any cash and financing requirements we may have. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior approval of SAFE by complying with certain procedural requirements. Specifically, under the existing exchange restrictions, without prior approval of SAFE, cash generated from the operations of our PRC subsidiaries in China may be used to pay dividends to our company. However, approval from or registration with appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. As a result, we need to obtain SAFE approval to use cash generated from the operations of our PRC subsidiaries and VIEs to pay off their respective debt in a currency other than Renminbi owed to entities outside China, or to make other capital expenditure payments outside China in a currency other than Renminbi. The PRC government may at its discretion restrict access to foreign currencies for current account transactions in the future. If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands, we may not be able to pay dividends in foreign currencies to our shareholders, including holders of the ADSs. Although currently there are not equivalent or similar restrictions or limitations in Hong Kong on cash transfers in, or out of, our Hong Kong entities (including currency conversion), if certain restrictions or limitations in Chinese Mainland were to become applicable to cash transfers in and out of Hong Kong entities (including currency conversion) in the future, the funds in our Hong Kong entities, likewise, may not be available to meet our currency demand.

***Certain PRC regulations may make it more difficult for us to pursue growth through acquisitions.***

Among other things, the M&A Rules established additional procedures and requirements that could make merger and acquisition activities by foreign investors more time-consuming and complex. Such regulation requires, among other things, that Ministry of Commerce be notified in advance of any change of control transaction in which a foreign investor takes control of a PRC domestic enterprise, if (i) any important industry is concerned, (ii) such transaction involves factors that have or may have impact on the national economic security, or (iii) such transaction will lead to a change in control of a domestic enterprise which holds a famous trademark or PRC time-honored brand. Moreover, the Anti-Monopoly Law promulgated by the Standing Committee of the National People's Congress of China and effective in 2008, as most recently amended on June 24, 2022 and effective from August 1, 2022, requires that transactions which are deemed concentrations and involve parties with specified turnover thresholds must be cleared by the relevant anti-monopoly authority before they can be completed. In addition, the Measures for the Security Review of Foreign Investment promulgated by the NDRC and the Ministry of Commerce in December 2020 specify that in respect of foreign investments in military, national defense-related areas or in locations in proximity to military facilities, or foreign investments that would result in acquiring the actual control of enterprises in certain key sectors, such as critical agricultural products, energy and resources, equipment manufacturing, infrastructure, transport, cultural products and services, information technology, internet products and services, financial services and technology sectors, the foreign investor or the relevant party in China in relation to the foregoing foreign investments is required to proactively report to the designated governmental authorities in advance and shall not proceed the foreign investments until the governmental authorities decide whether to initiate the security review. We may pursue potential strategic acquisitions that are complementary to our business and operations. Complying with the requirements of these regulations and other applicable laws and regulations to complete such transactions could be time-consuming, and any required approval processes, including obtaining approval or clearance from the competent governmental authority, may delay or inhibit our ability to complete such transactions, which could affect our ability to expand our business or maintain our market share.

***PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject our PRC resident beneficial owners or our PRC subsidiaries to liability or penalties, limit our ability to inject capital into our PRC subsidiaries, limit our PRC subsidiaries' ability to increase their registered capital or distribute profits to us, or otherwise adversely affect us.***

In July 2014, SAFE promulgated the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents' Offshore Investment and Financing and Roundtrip Investment Through Special Purpose Vehicles, or SAFE Circular 37, which requires PRC residents (including PRC individuals and PRC corporate entities) to register with SAFE or its local branches in connection with their direct or indirect offshore investment activities. SAFE Circular 37 is applicable to our shareholders who are PRC residents and may be applicable to any offshore acquisitions that we make in the future.

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SAFE Circular 37 requires registration with, and approval from, Chinese government authorities in connection with direct or indirect control of an offshore entity by PRC residents. The term "control" under SAFE Circular 37 is broadly defined as the operation rights, beneficiary rights or decision-making rights acquired by PRC residents in the offshore special purpose vehicles, or SPVs, by means of acquisition, trust, proxy, voting rights, repurchase, convertible bonds or other arrangements. In addition, any PRC resident who is a direct or indirect shareholder of an SPV is required to update its filed registration with the local branch of SAFE with respect to that SPV, to reflect any material change. Moreover, any subsidiary of such SPV in China is required to urge the PRC resident shareholders to update their registration with the local branch of SAFE. If any PRC shareholder of such SPV fails to make the required registration or to update the previously filed registration, the subsidiary of such SPV in China may be prohibited from distributing its profits or the proceeds from any capital reduction, share transfer or liquidation to the SPV, and the SPV may also be prohibited from making additional capital contributions into its subsidiary in China. On February 13, 2015, SAFE promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice 13, which became effective on June 1, 2015. Under SAFE Notice 13, applications for foreign exchange registration of inbound foreign direct investments and outbound overseas direct investments, including those required under SAFE Circular 37, will be filed with qualified banks instead of SAFE. The qualified banks will directly examine the applications and accept registrations under the supervision of SAFE.

These regulations may have a significant impact on our present and future structuring and investment. We have requested or intend to take all necessary measures to require our shareholders who to our knowledge are PRC residents to make the necessary applications, filings and amendments as required under these regulations. We further intend to structure and execute our future offshore acquisitions in a manner consistent with these regulations and any other relevant legislation. However, because it is presently uncertain how the SAFE regulations and any future legislation concerning offshore or cross-border transactions will be interpreted and implemented by the relevant government authorities in connection with our future offshore financings or acquisitions, we cannot provide any assurances that we will be able to comply with, qualify under, or obtain any approvals required by the regulations or other legislation. Furthermore, we cannot assure you that any PRC shareholders of our company or any PRC company into which we invest will be able to comply with those requirements. Any failure or inability by such individuals or entities to comply with SAFE regulations may subject us to fines or legal sanctions, such as restrictions on our cross-border investment activities or our PRC subsidiaries' ability to distribute dividends to, or obtain foreign exchange-denominated loans from, our company or prevent us from making distributions or paying dividends. As a result, our business operations and our ability to make distributions to you could be materially and adversely affected.

Furthermore, as the interpretation and implementation of these foreign exchange regulations have been constantly evolving, it is unclear how these regulations, and any future regulation concerning offshore or cross-border transactions, will be interpreted, amended and implemented by the relevant government authorities. For example, we may be subject to a more stringent review and approval process with respect to our foreign exchange activities, such as remittance of dividends and foreign-currency-denominated borrowings, which may adversely affect our financial condition and results of operations. In addition, if we decide to acquire a PRC domestic company, we cannot assure you that we or the owners of such company, as the case may be, will be able to obtain the necessary approvals or complete the necessary filings and registrations required by the foreign exchange regulations. This may restrict our ability to implement our acquisition strategy and could adversely affect our business and prospects.

***Any failure to comply with PRC regulations regarding the registration requirements for employee stock incentive plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions.***

In February 2012, SAFE promulgated the Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas Publicly Listed Company, replacing earlier rules promulgated in 2007. Pursuant to these rules, PRC citizens and non-PRC citizens who reside in China for a continuous period of not less than one year who participate in any stock incentive plan of an overseas publicly listed company, subject to a few exceptions, are required to register with SAFE through a domestic qualified agent, which could be the PRC subsidiaries of such overseas-listed company, and complete certain other procedures. In addition, an overseas-entrusted institution must be retained to handle matters in connection with the exercise or sale of stock options and the purchase or sale of shares and interests. In addition, SAFE Circular 37 stipulates that PRC residents who participate in a share incentive plan of an overseas non-publicly-listed special purpose company may register with SAFE or its local branches before they obtain the incentive shares or exercise the share options. We and our executive officers and other employees who are PRC citizens or who reside in the PRC for a continuous period of not less than one year and who have been or will be granted incentive shares or options are or will be subject to these regulations. Failure to complete the SAFE registrations may subject them to fines and legal sanctions, and there may be additional restrictions on the ability of them to exercise their stock options or remit proceeds gained from sale of their stock into the PRC. We also face regulatory uncertainties that could restrict our ability to adopt additional incentive plans for our directors, executive officers and employees under PRC law.

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***If we are classified as a PRC resident enterprise for PRC enterprise income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders and ADS holders.***

Under the PRC Enterprise Income Tax Law and its implementation rules, an enterprise established outside of the PRC with its "de facto management body" within the PRC is considered a "resident enterprise" and will be subject to the enterprise income tax on its global income at the rate of 25%. The implementation rules define the term "de facto management body" as the body that exercises full and substantial control and overall management over the business, production, personnel, accounts and properties of an enterprise. In 2009, the State Taxation Administration, issued a circular, which provides certain specific criteria for determining whether the "de facto management body" of a PRC-controlled enterprise that is incorporated offshore is located in China. Although this circular only applies to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreigners, the criteria set forth in the circular may reflect the State Taxation Administration's general position on how the "de facto management body" text should be applied in determining the tax resident status of all offshore enterprises. According to this circular, an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having its "de facto management body" in China, and will be subject to PRC enterprise income tax on its global income only if all of the following conditions are met: (i) the primary location of the day-to-day operational management is in the PRC; (ii) decisions relating to the enterprise's financial and human resource matters are made or are subject to approval by organizations or personnel in the PRC; (iii) the enterprise's primary assets, accounting books and records, company seals, and board and shareholder resolutions are located or maintained in the PRC; and (iv) at least 50% of voting board members or senior executives habitually reside in the PRC.

We believe that our company is not a PRC resident enterprise for PRC tax purposes. However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body." If the PRC tax authorities determine that our company or any of our offshore subsidiaries is a PRC resident enterprise for enterprise income tax purposes, our company or the relevant offshore subsidiaries will be subject to PRC enterprise income on its worldwide income at the rate of 25%. Furthermore, if we are treated as a PRC tax resident enterprise, we will be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident enterprises, including the holders of our ADSs. In addition, non-resident enterprise shareholders (including holders of our ADSs) may be subject to PRC tax at a rate of 10% on gains realized on the sale or other disposition of ADSs or ordinary shares, if such gains are treated as derived from a PRC source. Furthermore, if we are deemed a PRC resident enterprise, dividends paid to our non-PRC individual shareholders (including holders of our ADSs) and any gain realized on the transfer of ADSs or ordinary shares by such shareholders may be subject to PRC tax at a rate of 20% (which, in the case of dividends, may be withheld at source). These rates may be reduced by an applicable tax treaty, but it is unclear whether our non- PRC shareholders would, in practice, be able to obtain the benefits of any tax treaties between their country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. Any such tax may reduce the returns on your investment in our securities.

***We face uncertainty with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies, which may have a material adverse effect on our financial condition and results of operations.***

On February 3, 2015, the State Taxation Administration issued the Public Notice Regarding Certain Corporate Income Tax Matters on Indirect Transfer of Properties by Non-Tax Resident Enterprises, which came into effect on February 3, 2015. This notice redefines the applicable scope to expand the subject of the indirect share transfers to China taxable assets, which includes equity investments in PRC resident enterprises, assets of Chinese establishments and immovable properties in China. In addition, this notice has introduced safe harbors for internal group restructurings and the purchase and sale of equity through a public securities market. this notice also brings challenges to both the foreign transferor and transferee (or other person who is obligated to pay for the transfer) of taxable assets.

On October 17, 2017, State Taxation Administration issued the Announcement on Issues Concerning the Withholding of Non-resident Enterprise Income Tax at Source, which came into effect on December 1, 2017, and further clarifies the practice and procedure of the withholding of non-resident enterprise income tax.

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Where a non-resident enterprise transfers taxable assets in China indirectly by disposing of the equity interests of an overseas holding company, which is an Indirect Transfer, the non-resident enterprise as either transferor or transferee, or the PRC entity whose equity is transferred, may report such Indirect Transfer to the relevant tax authority. Using a "substance over form" principle, the PRC tax authority may disregard the existence of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding or deferring PRC tax. As a result, gains derived from such Indirect Transfer may be subject to PRC enterprise income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise. Both the transferor and the transferee may be subject to penalties under PRC tax laws if the transferee fails to withhold the taxes and the transferor fails to pay the taxes.

We face uncertainties as to the reporting and other implications of certain past and future transactions where PRC taxable assets are involved, such as offshore restructuring, sale of the shares in our offshore subsidiaries and investments. Our company may be subject to filing obligations or taxed if our company is transferor in such transactions, and may be subject to withholding obligations if our company is transferee in such transactions, under the abovementioned rules. For transfer of shares in our company by investors who are non-PRC resident enterprises, our PRC subsidiaries may be requested to assist in the filing under the abovementioned rules. As a result, we may be required to expend valuable resources to comply with abovementioned rules or their applicable tax related requirements or to request the relevant transferors from whom we purchase taxable assets to comply with these circulars, or to establish that our company should not be taxed under these circulars, which may have a material adverse effect on our financial condition and results of operations.

***The PCAOB had historically been unable to inspect our auditor in relation to their audit work performed for our financial statements included elsewhere in this annual report.***

Our auditor, the independent registered public accounting firm that issues the audit report included elsewhere in this annual report, as an auditor of companies that are traded publicly in the United States and a firm registered with the Public Company Accounting Oversight Board (United States), or the PCAOB, is subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Since our auditor is located in China, a jurisdiction where the PCAOB was historically unable to conduct inspections without the approval of the Chinese authorities before 2022.

This lack of the PCAOB inspections in China in the past prevented the PCAOB from fully evaluating audits and quality control procedures of our independent registered public accounting firm. As a result, we and investors in our ordinary shares were deprived of the benefits of such PCAOB inspections. The past inability of the PCAOB to conduct inspections of auditors in China made it more difficult to evaluate the effectiveness of our independent registered public accounting firm's audit procedures or quality control procedures as compared to auditors outside of China that were subject to the PCAOB inspections.

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***Trading in our securities on U.S. markets, including the Nasdaq, may be prohibited under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB determines that it is unable to inspect or investigate completely our auditor for two consecutive years.***

Trading in our securities on Nasdaq may be prohibited under the HFCAA as amended by the Consolidated Appropriation Act, 2023, if the PCAOB determines that it is unable to inspect or investigate completely our auditor for two consecutive years. On December 16, 2021, the PCAOB issued the HFCAA Determination Report to notify the SEC of its determinations that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in Chinese Mainland and Hong Kong (the "2021 Determinations"), including our auditor. The inability of the PCAOB to conduct inspections in the past also deprived our investors of the benefits of such inspections. On December 15, 2022, the PCAOB announced that it was able to conduct inspections and investigations completely of PCAOB-registered public accounting firms headquartered in Chinese Mainland and Hong Kong in 2022. The PCAOB vacated its previous 2021 Determinations accordingly. As a result, we were not at risk of having our securities subject to a trading prohibition unless a determination is made by the PCAOB. However, whether the PCAOB will continue to conduct inspections and investigations completely to its satisfaction of PCAOB-registered public accounting firms headquartered in Chinese Mainland and Hong Kong is subject to uncertainty and depends on a number of factors out of our, and our auditor's, control, including positions taken by authorities of the PRC. The PCAOB is expected to continue to demand complete access to inspections and investigations against accounting firms headquartered in Chinese Mainland and Hong Kong in the future and states that it has already made plans to resume regular inspections going forward. The PCAOB is required under the HFCAA to make its determination on an annual basis with regards to its ability to inspect and investigate completely accounting firms based in the Chinese Mainland and Hong Kong. The possibility of being a "Commission-Identified Issuer" and risk of delisting could continue to adversely affect the trading price of our securities. If the PCAOB determines in the future that it no longer has full access to inspect and investigate accounting firms headquartered in Chinese Mainland and Hong Kong and we continue to use such accounting firm to conduct audit work, we would be identified as a "Commission-Identified Issuer" under the HFCAA following the filing of the annual report for the relevant fiscal year, and if we were so identified for two consecutive years, trading in our securities on U.S. markets would be prohibited.

#### Risks Relating to Our Ordinary Shares and the ADSs
***The price and trading volume of our ordinary shares and the ADSs may be volatile, which could lead to substantial losses to investors.***

The trading price and volume of our ordinary shares or the ADSs has been volatile. The trading price of our ordinary shares or the ADSs could continue to fluctuate widely due to factors beyond our control. The trading price and volume of our ordinary shares, likewise, can be volatile for similar or different reasons. In particular, the business and performance and the market price and volume of the shares of other companies engaging in similar business to ours or those with operations located mainly in China that have listed their securities in Hong Kong or the United States may affect the price and trading volume of our ordinary shares and the ADSs. The securities of some of these companies have experienced significant volatility since their initial public offerings, including, in some cases, substantial price declines in the trading prices of their securities. The trading performances of other Chinese companies' securities after their offerings, including technology companies and transaction service platforms, may affect the attitudes of investors toward Chinese companies listed in Hong Kong and/or the United States, which consequently may impact the trading performance of our ordinary shares and/or ADSs, regardless of our actual operating performance. In addition, any negative news or perceptions about inadequate corporate governance practices or fraudulent accounting, corporate structure or matters of other Chinese companies may also negatively affect the attitudes of investors towards Chinese companies in general, including us, regardless of whether we have conducted any inappropriate activities. Furthermore, securities markets may from time to time experience significant price and volume fluctuations that are not related to the Group's operating performance. In addition, a portion of our ordinary shares or ADSs may be traded by short sellers, which may further increase the volatility of the trading price of our ordinary shares or ADSs. All these fluctuations and incidents may have a material and adverse effect on the trading price of our ordinary shares and/or the ADSs.

In addition to market and industry factors, the price and trading volume of our ordinary shares and the ADSs may be highly volatile for factors specific to our own operations, including the following:

● macro-economic factors in China;

● variations in our revenues, earnings, or cash flow;

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● 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 among Renminbi, the Hong Kong dollar and the U.S. dollar;

● sales or perceived potential sales of additional ordinary shares or ADSs.

Any of these factors may result in large and sudden changes in the volume and price at which our ordinary shares or the ADSs will trade. Furthermore, the stock exchanges on which our ordinary shares and the ADSs are traded in general experience price and volume fluctuations that are often unrelated or disproportionate to the operating performance of companies like us. These broad market and industry fluctuations may adversely affect the market price of our ordinary shares or the ADSs.

In the past, shareholders of public companies have often brought securities class action suits against companies following periods of instability in the market price of their securities. If we were involved in a class action suit, it could divert a significant amount of our management's attention and other resources from our business and operations and require us to incur significant expenses to defend the suit, which could harm our results of operations. Any such class action suit, whether successful or not, could harm our reputation and restrict our ability to raise capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could have a material adverse effect on our financial condition and results of operations.

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***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 ordinary shares and/or the ADSs and trading volume could decline.***

The trading market for our ordinary shares and/or the ADSs depends in part on the research and reports that securities or industry analysts publish about us or our business. If research analysts do not establish and maintain adequate research coverage or if one or more of the analysts who covers us downgrades our ordinary shares and/or the ADSs or publishes inaccurate or unfavorable research about our business, the market price for our ordinary shares and/or the ADSs would likely decline. If one or more of these analysts cease coverage of our company or fail to publish reports on us regularly and timely, we could lose visibility and attractiveness in the financial markets, which, in turn, could cause the market price or trading volume for our ordinary shares and/or the ADSs to decline.

***Substantial future sales or perceived sales of our ordinary shares or the ADSs in the public market could materially and adversely affect the price of our ordinary shares or the ADSs.***

Sales of our ordinary shares or the ADSs in the public market, or the perception that these sales could occur, could cause the market price of our securities to decline. ordinary shares held by our existing shareholders may be available for sale subject to the volume and other restrictions as applicable provided in Rules 144 and 701 under the Securities Act and the applicable lock-up agreements. We cannot predict what effect, if any, market sales of securities held by our significant shareholders, management team or any other shareholder or the availability of these securities for future sale will have on the market price of our ordinary shares or the ADSs.

#### Techniques employed by short sellers may drive down the market price of our ordinary shares and/or the ADSs.
Short selling is the practice of selling securities that the seller does not own but rather has borrowed from a third party with the intention of buying identical securities back at a later date to return to the lender. Short sellers hope to profit from a decline in the price of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as short sellers expect to pay less in that purchase than it received in the sale. As it is in the short sellers' interest for the price of the security to decline, many short sellers publish, or arrange for the publication of, negative opinions regarding the relevant issuer and its business prospects in order to create negative market momentum and generate profits for themselves after selling a security short. These short attacks have, in the past, led to selling of shares in the market.

Public companies that have substantially all of their operations in China have been the subject of short selling. Much of the scrutiny and negative publicity has centered on allegations of a lack of effective internal control over financial reporting resulting in financial and accounting irregularities and mistakes, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result, many of these companies are now conducting internal and external investigations into the allegations and, in the interim, are subject to shareholder lawsuits and/or enforcement actions by the SEC or other U.S. authorities. It is not clear what effect such negative publicity could have on us. If we were to become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we could have to expend a significant amount of resources to investigate such allegations and/or defend ourselves. While we would strongly defend against any such short seller attacks, we may be constrained in the manner in which we can proceed against the relevant short seller by principles of freedom of speech, applicable state law or issues of commercial confidentiality. Such a situation could be costly and time-consuming, and could distract our management from growing our business. Even if such allegations are ultimately proven to be groundless, allegations against us could severely impact our business operations, and any investment in our ordinary shares and/or the ADSs could be greatly reduced or even rendered worthless.

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***Because we do not expect to pay dividends in the foreseeable future, you must rely on a price appreciation of our ordinary shares and/or the ADSs for a return on your investment.***

We do not expect to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in our ordinary shares and/or the ADSs as a source for any future dividend income. Our Board has complete discretion as to whether to distribute dividends subject to Cayman Islands law. Even if our Board decides to declare and pay dividends, the timing, amount and form of future dividends, if any, will depend on our future results of operations and cash flow, our capital requirements and surplus, the amount of distributions (if any) received by us from our subsidiaries, our financial condition, contractual restrictions and other factors deemed relevant by our Board. Accordingly, the return on your investment in our ordinary shares and/or the ADSs will likely depend entirely upon any future price appreciation of such securities. There is no guarantee that our ordinary shares and/or the ADSs will appreciate in value or even maintain the price at which you purchased them. You may not realize a return on your investment in our ordinary shares and/or the ADSs and you may even lose your entire investment.

***Holders of the ADSs may not have the same voting rights as the holders of our ordinary shares and may not be able to exercise their right to direct how our ordinary shares represented by the ADSs are voted.***

Holders of the ADSs do not have the same rights as our registered shareholders. Holders of the ADSs will not have any direct right to attend general meetings of our shareholders or to cast any votes at such meetings and will only be able to exercise the voting rights that are carried by the underlying ordinary shares represented by the ADSs indirectly by giving voting instructions to the depositary in accordance with the provisions of the deposit agreement. Under the deposit agreement, holders of the ADSs may vote only by giving voting instructions to the depositary. If we instruct the depositary to ask holders of the ADSs for their instructions, then upon receipt of voting instructions from holders of the ADSs, the depositary will try, as far as practicable, to vote the underlying ordinary shares represented by the ADSs in accordance with the instructions. If we do not instruct the depositary to ask holders of the ADSs for their instructions, the depositary may still vote in accordance with instructions give, but it is not required to do so. Holders of the ADSs will not be able to directly exercise their right to vote with respect to the ordinary shares represented by the ADSs unless holders of the ADSs withdraw the shares and become the registered holder of such shares prior to the record date for the general meeting. Under our Second Amended and Restated Memorandum and Articles of Association, as amended and restated from time to time, which is also referred herein as the Articles, an annual general meeting shall be called by not less than twenty-one (21) days' notice and any other general meeting (including an extraordinary general meeting) shall be called by not less than fourteen (14) days' notice in writing.

When a general meeting is convened, holders of the ADSs may not receive sufficient advance notice of the meeting to surrender their ADSs for the purpose of withdrawal of our ordinary shares represented by such ADSs and become the registered holder of such shares to allow them to vote directly with respect to any specific matter or resolution to be considered and voted upon at the general meeting. In addition, under the Articles, for the purposes of determining those shareholders who are entitled to attend and vote at any general meeting, our directors may close our register of members and fix in advance a record date for such meeting, and such closure of our register of members or the setting of such a record date may prevent holders of the ADSs from surrendering ADSs for the purpose of withdrawing our ordinary shares represented by such ADSs and becoming the registered holder of such shares prior to the record date, so that they would not be able to attend the general meeting or to vote directly. If we ask for instructions, the depositary will notify holders of the ADSs of the upcoming vote and will arrange to deliver our voting materials to them. We have agreed to give the depositary at least 40 days' prior notice of shareholder meetings. Nevertheless, there is no guarantee that holders of the ADSs will receive the voting materials in time to ensure that holders of the ADSs can instruct the depositary to vote the ordinary shares represented by their ADSs. In addition, the depositary and its agents are not responsible for failing to carry out voting instructions or for their manner of carrying out voting instructions from holders of the ADSs. This means that holders of the ADSs may not be able to exercise their right to direct how our ordinary shares represented by their ADSs are voted and they may have no legal remedy if our ordinary shares represented by their ADSs are not voted as they have requested.

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***You may face difficulties in protecting your interests, and your ability to protect your rights through Hong Kong or U.S. courts may be limited, because we are incorporated under Cayman Islands law.***

We are an exempted company incorporated under the laws of the Cayman Islands. Our corporate affairs are governed by the Articles, the Companies Act and the common law of the Cayman Islands. The rights of shareholders to take action against our directors, actions by our minority shareholders and the fiduciary duties of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from the common law of England and Wales, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedent in Hong Kong or some jurisdictions in the United States. In particular, the Cayman Islands have a less developed body of securities laws than Hong Kong or the United States. Some U.S. states, such as Delaware, have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States. Moreover, while under Delaware law, controlling shareholders owe fiduciary duties to the companies they control and their minority shareholders, under Cayman Islands law, our controlling shareholder does not owe any such fiduciary duties to our company or to our minority shareholders. Accordingly, our controlling shareholder may exercise their powers as shareholders, including the exercise of voting rights in respect of their shares, in such manner as they think fit.

Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records (other than the Articles, the register of mortgages and charges and any special resolutions passed by shareholders) or to obtain copies of lists of shareholders of these companies. Our directors have discretion under our Articles to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest.

As a result of all of the above, our public shareholders may have more difficulty in protecting their interests in the face of actions taken by our management, members of the board of directors or controlling shareholder than they would as public shareholders of a company incorporated in the United States.

***It may be difficult for overseas regulators to conduct investigations or collect evidence within China.***

Shareholder claims or regulatory investigation that are common in the United States generally are difficult to pursue as a matter of law or practicality in China. For example, in China, there are significant legal and other obstacles to providing information needed for regulatory investigations or litigation initiated outside China. Although the authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or region to implement cross-border supervision and administration, such cooperation with the securities regulatory authorities in the Unities States may not be efficient in the absence of mutual and practical cooperation mechanism. Furthermore, according to Article 177 of the PRC Securities Law, or Article 177, which became effective in March 2020, no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the territory of the PRC. While detailed interpretation of or implementation rules under Article 177 have yet to be promulgated, the inability for an overseas securities regulator to directly conduct investigation or evidence collection activities within China may further increase difficulties faced by you in protecting your interests.

#### Certain judgments obtained against us by our shareholders may not be enforceable.
We are an exempted company limited by shares incorporated under the laws of the Cayman Islands and substantially all of our assets are located outside of Hong Kong or the United States. Substantially all of our current operations are conducted in China. In addition, some of our current directors and officers are nationals and residents of countries and regions other than Hong Kong or the United States. Most of the assets of these persons are located outside Hong Kong or the United States. As a result, it may be difficult or impossible for you to bring an action against us or against these individuals in Hong Kong or the United States in the event that you believe that your rights have been infringed under Hong Kong laws or the U.S. federal securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and of China may render you unable to enforce a judgment against our assets or the assets of our directors and officers.

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***Holders of the ADSs may not be entitled to a jury trial with respect to claims arising under the deposit agreement, which could result in less favorable outcomes to the plaintiff(s) in any such action.***

The deposit agreement governing the ADSs representing our ordinary shares provides that, to the fullest extent permitted by law, holders of the ADS waive the right to a jury trial for any claim they may have against us or the depositary arising out of or relating to our shares, the ADSs or the deposit agreement, including any claim under the U.S. federal securities laws.

If we or the depositary were to oppose a jury trial based on this waiver, the court would have to determine whether the waiver was enforceable based on the facts and circumstances of the case in accordance with applicable state and federal law. To our knowledge, the enforceability of a contractual pre-dispute jury trial waiver in connection with claims arising under the federal securities laws has not been finally adjudicated by the United States Supreme Court. However, we believe that a contractual pre-dispute jury trial waiver provision is generally enforceable, including under the laws of the State of New York, which govern the deposit agreement, or by a federal or state court in the City of New York, which has non-exclusive jurisdiction over matters arising under the deposit agreement. In determining whether to enforce a contractual pre-dispute jury trial waiver, courts will generally consider whether a party knowingly, intelligently and voluntarily waived the right to a jury trial. We believe that this would be the case with respect to the deposit agreement and the ADSs. It is advisable that you consult legal counsel regarding the jury waiver provision before investing in the ADSs.

If owners or holders of the ADSs bring a claim against us or the depositary in connection with matters arising under the deposit agreement or the ADSs, including claims under federal securities laws, owners or holders of the ADSs may not be entitled to a jury trial with respect to such claims, which may have the effect of limiting and discouraging lawsuits against us or the depositary. If a lawsuit is brought against us or the depositary under the deposit agreement, it may be heard only by a judge or justice of the applicable trial court, which would be conducted according to different civil procedures and may result in different outcomes than a trial by jury would have, including outcomes that could be less favorable to the plaintiff(s) in any such action.

Nevertheless, if this jury trial waiver is not permitted by applicable law, an action could proceed under the terms of the deposit agreement with a jury trial. No condition, stipulation or provision of the deposit agreement or the ADSs serves as a waiver by any owners or holders of the ADSs or by us or the depositary of compliance with any substantive provision of the U.S. federal securities laws and the rules and regulations promulgated thereunder.

***Holders of the ADSs may experience dilution of their holdings due to the inability to participate in rights offerings.***

We may, from time to time, distribute rights to our shareholders, including rights to acquire securities. However, we cannot make such rights available to holders of the ADSs in the United States unless we register both the rights and the securities to which the rights relate under the Securities Act or an exemption from the registration requirements is available. Under the deposit agreement, the depositary will not distribute rights to holders of the ADSs unless the distribution and sale of rights and the securities to which these rights relate are either exempt from registration under the Securities Act with respect to all holders of the ADSs, or are registered under the provisions of the Securities Act. The depositary may, but is not required to, attempt to sell these undistributed rights to third parties, and may allow the rights to lapse. We may be unable to establish an exemption from registration under the Securities Act, and we are under no obligation to file a registration statement with respect to these rights or underlying securities or to endeavor to have a registration statement declared effective. Accordingly, holders of the ADSs may be unable to participate in our rights offerings and may experience dilution of their holdings as a result.

#### Holders of the ADSs may be subject to limitations on the transfer of the ADSs.
The ADSs are transferable on the books of the depositary. However, the depositary may close its books at any time or from time to time when it deems it expedient in connection with the performance of its duties. The depositary may also close its books in emergencies, and on weekends and public holidays. The depositary may refuse to deliver, transfer or register transfers of the ADSs generally when our share register or the books of the depositary are closed, or at any time if we or the depositary thinks it is advisable to do so because of any requirement of law or of any government or governmental body, or under any provision of the deposit agreement, or for any other reason.

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***Our Articles give us power to take certain actions that could discourage a third party from acquiring us, which could limit our Shareholders' opportunity to sell their ordinary shares, including ordinary shares and the ADSs, at a premium.***

Our Articles contain provisions to limit the ability of others to acquire control of our company or cause us to engage in change-of-control transactions. These provisions could have the effect of depriving our Shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging third parties from seeking to obtain control of our company in a tender offer or similar transaction. Subject to any applicable rules and regulations of authorities of places where securities of the Company are listed, and on the conditions that (a) no new class of shares with voting rights superior to those of the ordinary shares will be created; and (b) any variations in the relative rights as between the different classes will not result in the creation of a new class of shares with voting rights superior to those of the ordinary shares, our Board has the authority, without further action by our Shareholders, to issue shares in one or more series and to fix their designations, powers, preferences, privileges and relative participating, optional or special rights and the qualifications, limitations or restrictions, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which may be greater than the rights associated with our ordinary shares, including ordinary shares represented by ADSs.

However, our exercise of any such power that may limit the ability of others to acquire control of our company or cause us to engage in change-of-control transactions under our Articles are subject to our overriding obligations to comply with all applicable Hong Kong laws and regulations, the Hong Kong Listing Rules, and the Codes on Takeovers and Mergers and Share Buy-backs.

***We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to U.S. domestic public companies.***

Because we qualify as a foreign private issuer under the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including:

● 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.

We are required to file an annual report on Form 20-F within four months of the end of each fiscal year. In addition, we intend to publish our results on a quarterly basis as press releases, distributed pursuant to the rules and regulations of the Nasdaq Global Select Market. Press releases relating to financial results and material events will also be furnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded the same protections or information that would be made available to you were you investing in a U.S. domestic issuer, which may be difficult for overseas regulators to conduct investigation or collect evidence within China.

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***As an exempted company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with the Nasdaq listing standards.***

As a Cayman Islands exempted company listed on the Nasdaq, we are subject to corporate governance listing standards of Nasdaq. However, Nasdaq rules permit a foreign private issuer like us to follow the corporate governance practices of its home country. Certain corporate governance practices in the Cayman Islands, which is our home country, may differ significantly from the Nasdaq corporate governance listing standards. We have followed and intend to continue to follow Cayman Islands corporate governance practices in lieu of the corporate governance requirements of the Nasdaq that listed companies must have a majority of independent directors and that the audit committee consists of at least three members. To the extent that we choose to follow home country practice in the future, our shareholders may be afforded less protection than they otherwise would enjoy under Nasdaq corporate governance listing standards applicable to U.S. domestic issuers. In addition, if we are subject to listing standards or other rules or regulations of other jurisdictions in the future, those requirements may further change the degree of protection for our shareholders to the extent they differ from the Nasdaq listing standards applicable to U.S. domestic issuers.

***Although we believe we were not a passive foreign investment company ("PFIC") for U.S. federal income tax purposes for 2025 there can be no assurance in this regard, and due to the substantial fluctuations of our ADSs' trading prices there is a significant risk that we will be a PFIC for 2026 or future taxable years, which could result in adverse U.S. federal income tax consequences to U.S. investors in the ADSs or ordinary shares.***

In general, a non-U.S. corporation is a PFIC for U.S. federal income tax purposes for any taxable year in which (i) 50% or more of the average value of its assets (generally determined on a quarterly basis) consists of assets that produce, or are held for the production of, passive income, or (ii) 75% or more of its gross income consists of passive income. For purposes of the above calculations, a non-U.S. corporation that owns, directly or indirectly, at least 25% by value of the shares of another corporation is treated as if it directly held its proportionate share of the assets of the other corporation and directly earned its proportionate share of the income of the other corporation. Passive income generally includes dividends, interest, rents, royalties and certain gains. Cash and cash equivalents are generally passive assets for these purposes. Goodwill and other intangible assets generally are characterized as active assets to the extent associated with business activities that produce active income.

We hold a substantial amount of cash and financial investments, and while this continues to be the case our PFIC status for any taxable year may depend on the average value of our goodwill and other intangible assets. We have not obtained valuations of our goodwill or other assets. The value of our goodwill and other intangible assets may be determined, in large part, by reference to our market capitalization. Based on the average price of the ADSs during 2025, and taking into account the nature of our assets and income, we believe that we were not a PFIC for our taxable year ended December 31, 2025. However, our market capitalization is volatile (and has generally declined substantially since our initial public offering), if the value of our assets is determined by reference to our market capitalization, our goodwill and other active assets for 2026 or future taxable years may constitute less than 50% of the value of our total assets. Accordingly, there is a risk (which, depending on market conditions, may be significant) that we will be a PFIC for our taxable year 2026, and possibly future taxable years. Moreover, it is not entirely clear how the contractual arrangements between us and the VIEs will be treated for purposes of the PFIC rules, and we may be or become a PFIC if the VIEs are not treated as owned by us for these purposes. Furthermore, the application of the PFIC rules is subject to certain uncertainties such as the proper calculation of gross income for purposes of the PFIC rules. Our PFIC status for any taxable year is an annual factual determination that can be made only after the end of that year and depends on the composition of our income and assets and the value of our assets from time to time. For these reasons, we can give no assurance as to our PFIC status for any taxable year. If we are a PFIC for any taxable year during which a U.S. taxpayer holds ADSs or ordinary shares, the U.S. taxpayer generally will be subject to adverse U.S. federal income tax consequences, including increased tax liability on disposition gains and "excess distributions," and additional reporting requirements. This will generally continue to be the case even if we cease to be a PFIC in a later taxable year, unless certain elections are made. See "Item 10. Additional Information—10. E. Taxation—Material U.S. Federal Income Tax Considerations—Passive Foreign Investment Company Rules."

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| **ITEM 4** | **INFORMATION ON THE COMPANY** |

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**4. A.** **History and Development of the Company**

#### Corporate History
In January 2012, we incorporated Kingsoft Cloud Holdings Limited under the laws of the Cayman Islands as our offshore holding company. In February 2012, we incorporated Kingsoft Cloud Corporation Limited as Kingsoft Cloud Holdings Limited's wholly owned subsidiary in Hong Kong.

In April 2012, Kingsoft Cloud Corporation Limited incorporated Beijing Kingsoft Cloud Technology Co., Ltd., or Beijing Kingsoft Cloud, as its wholly owned subsidiary in the PRC. In December 2015, Kingsoft Cloud Corporation Limited incorporated another wholly owned subsidiary, Beijing Yunxiang Zhisheng Technology Co., Ltd., or Yunxiang Zhisheng, in the PRC.

In December 2017, Kingsoft Cloud Corporation Limited incorporated a wholly owned subsidiary, Kingsoft Cloud Inc., in the United States, to operate a cloud service business and conduct research and development on cloud technology and products.

In May 2020, we completed an initial public offering in which we offered and sold an aggregate of 517,500,000 ordinary shares in the form of ADSs. Upon the initial public offering, all of our issued and outstanding preferred shares were automatically converted into ordinary shares on a one-for-one basis. On May 8, 2020, the ADSs began trading on the Nasdaq under the symbol "KC."

In September 2020, we completed a public offering in which we offered an aggregate of 9,250,000 ADSs and our selling shareholders sold an aggregate of 8,421,576 ADSs.

In March 2021, we completed the acquisition of 100% equity interest in Shenzhen Yunfan Acceleration Technology Co., Ltd. (currently named as "Kingsoft Cloud (Shenzhen) Edge Computing Technology Co., Ltd") and its subsidiary (collectively, "Kingsoft Cloud Shenzhen"). Kingsoft Cloud Shenzhen is mainly engaged in providing content distribution, acceleration and other cloud-related IaaS and PaaS edge computing solutions, and the acquisition is expected to enhance our expertise in public cloud services.

In September 2021, we acquired controlling interests in Camelot Employee Scheme INC. ("Camelot") using a combination of cash and our ordinary shares as consideration. In connection with such acquisition, we issued an aggregate of 247,475,446 ordinary shares to certain existing shareholders of Camelot in September 2021. In October 2022, we acquired 9.50% equity interests in Camelot for a total cash consideration of RMB456 million. In November 2022, we acquired 3.19% equity interest in Camelot using a combination of cash and our ordinary shares as consideration. Camelot offers comprehensive and digitalized solutions such as teller or branch systems, anti-money laundering and fraud prevention software services to the financial services industry. By acquiring and integrating with Camelot, we expect to benefit from its (i) core senior management's rich experience; (ii) large customer based and long-standing client relationships to cross-sell our products and solutions; (iii) deep vertical know-how for developing industry solutions; and (iv) nationwide fulfillment centers across major cities in China for project deployment with lower costs with enhanced efficacy and increased customer stickiness.

In December 2021, we increased our authorized share capital from US$4,000,000.00 divided into 4,000,000,000 ordinary shares with par value of US$0.001 each to US$40,000,000.00 divided into 40,000,000,000 ordinary shares with par value of US$0.001 each by creation of an additional 36,000,000,000 authorized but unissued ordinary shares with par value of US$0.001 each.

In December 2022, we listed, by way of introduction, our ordinary shares on the Main Board of SEHK. The ordinary shares are traded on the Main Board of SEHK under the stock code "3896" in board lots of 2000 Shares, and the stock short name is "KINGSOFT CLOUD."

In April 2025, we completed a public offering in which we offered an aggregate of (i) 20,075,000 ADSs (including the full exercise of the underwriters' option to purchase additional ADSs), and (ii) 18,000,000 ordinary shares.

In September 2025, we completed a public offering in which we offered an aggregate of 338,000,000 ordinary shares.

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Beijing Kingsoft Cloud entered into a series of contractual arrangements, as amended and restated, with Zhuhai Kingsoft Cloud and its registered shareholders, through which we obtained control over Zhuhai Kingsoft Cloud. In addition, Yunxiang Zhisheng entered into a series of contractual arrangements with Kingsoft Cloud Information and its registered shareholders, which enable us to obtain control over the Kingsoft Cloud Information to operate value-added telecommunication services. The Company is obligated to absorb losses of the variable interest entities that could potentially be significant to the variable interest entities through providing unlimited financial support to the variable interest entities or is entitled to receive economic benefits from the variable interest entities that could potentially be significant to the variable interest entities through the exclusive technology consulting and service fees. As a result of these contractual arrangements, the Company is determined to be the primary beneficiary of these variable interest entities only for accounting purposes and we consolidate these variable interest entities under U.S. GAAP. We refer to Beijing Kingsoft Cloud and Yunxiang Zhisheng as our wholly foreign owned entities, or WFOEs, and to Zhuhai Kingsoft Cloud, Kingsoft Cloud Information and their subsidiaries as our variable interest entities, or the VIEs, in this annual report. For more details and risks related to the VIE structure, please see "Item 4. Information on the Company - 4.C. Organizational Structure - Contractual Arrangements with the VIEs and Their Respective Shareholders" and "Item 3. Key Information - 3.D. Risk Factors - Risks Relating to Our Corporate Structure and the Contractual Arrangements".

Our principal executive offices are located at Building D, Xiaomi Science and Technology Park, No. 33 Xierqi Middle Road, Haidian District Beijing, 100085, the People's Republic of China. Our telephone number at this address is +86 10 6292 7777. Our registered office in the Cayman Islands is located at the offices of Conyers Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. Our agent for service of process in the United States is Cogency Global Inc. located at 122 East 42nd Street, 18th Floor, New York, NY 10168.

The SEC maintains an internet site at http://www.sec.gov that contains reports, information statements and other information regarding issuers that file electronically with the SEC.

#### Contractual Arrangements and Corporate Structure
Current PRC laws and regulations impose certain restrictions or prohibitions on foreign ownership of companies that engage in value-added telecommunication services. We are an exempted company with limited liability incorporated in the Cayman Islands. Our PRC subsidiaries, Beijing Kingsoft Cloud and Yunxiang Zhisheng are considered foreign-invested enterprises. To comply with PRC laws and regulations, we primarily conduct our business in China through the VIEs, Zhuhai Kingsoft Cloud and Kingsoft Cloud Information, and their subsidiaries, based on a series of contractual arrangements. Through these contractual arrangements, the nominee shareholders of the VIEs effectively assigned all of their voting rights underlying their equity interests in the VIEs to the Company, and therefore, the Company has the power to direct the activities of the VIEs that most significantly impact its economic performance. The Company is obligated to absorb losses of the variable interest entities that could potentially be significant to the variable interest entities through providing unlimited financial support to the variable interest entities or is entitled to receive economic benefits from the variable interest entities that could potentially be significant to the variable interest entities through the exclusive technology consulting and service fees. As a result of these contractual arrangements, the Company is determined to be the primary beneficiary of these variable interest entities only for accounting purposes and we consolidate these variable interest entities under U.S. GAAP. These contractual arrangements entered into with the VIEs enable us to (i) receive substantially all of the economic benefits and absorb substantially all of the economic losses of the VIEs, and (ii) have an exclusive option to purchase all or part of the equity interests and assets in the VIEs when and to the extent permitted by PRC law. These contractual arrangements include the exclusive consultation and technical service agreements, loan agreements, equity pledge agreements, exclusive purchase option agreements, shareholder voting right trust agreements, and spousal consents, as the case may be. As a result of these contractual arrangements, we are considered the primary beneficiary of the VIEs for accounting purpose and consolidate its operating results in our financial statements under U.S. GAAP, to the extent the conditions for the consolidation of the VIE under U.S. GAAP are satisfied.

We do not have any equity interests in the VIEs who is owned by certain nominee shareholders. As a result, control through these contractual arrangements may be less effective than direct ownership, and we could face heightened risks and costs in enforcing these contractual arrangements, because there are substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations, and rules relating to the legality and enforceability of these contractual arrangements. If the PRC government finds such agreements to be illegal, we could be subject to severe penalties or be forced to relinquish our interests in the VIEs.

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#### Permits and Permission Required from the PRC Authorities for Our Operations
Our PRC subsidiaries and the VIEs have obtained all material licenses and approvals required for our operations in China. Given the uncertainties of interpretation and implementation of relevant laws and regulations and the enforcement practice by relevant government authorities, we may be required to obtain additional licenses, permits, filings, or approvals for our business operations in the future. If we, our PRC subsidiaries or VIE are found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits, approvals or filings, the relevant PRC regulatory authorities would have discretion to take action in dealing with such violations or failures. In addition, if we had inadvertently concluded that such approvals, permits, registrations or filings were not required, or if applicable laws, regulations or interpretations change in a way that requires us to obtain such approval, permits, registrations or filings in the future, we and the VIE may be unable to obtain such necessary approvals, permits, registrations or filings in a timely manner, or at all, and such approvals, permits, registrations or filings may be rescinded even if obtained. Any such circumstance may subject us to fines and other regulatory, civil or criminal liabilities, and we may be ordered by the competent government authorities to suspend relevant operations, which will materially and adversely affect our business operation. Furthermore, we may be subject to regular inspections, examinations, inquiries or audits by regulatory authorities, and an adverse outcome of such inspections, examinations, inquiries or audits may result in the loss or non-renewal of the relevant licenses and approvals. Moreover, the criteria used in reviewing applications for, or renewals of licenses and approvals may change from time to time, and there can be no assurance that we will be able to meet new criteria that may be imposed to obtain or renew the necessary licenses and approvals. Many of such licenses and approvals are material to the operation of our business, and if we fail to maintain or renew material licenses and approvals, our ability to conduct our business could be materially impaired. Furthermore, if the interpretation or implementation of existing laws and regulations change, or new regulations come into effect, requiring us or parties on whom we rely to obtain any additional permits, licenses or certificates that were previously not required to operate our business, there can be no assurance that we or parties on whom we rely will successfully obtain such permits, licenses or certificates.

#### Transfer of Funds and Other Assets
Under relevant PRC laws and regulations, we are permitted to remit funds to the VIEs through loans rather than capital contributions.

In 2025, Kingsoft Cloud Holdings Limited and its subsidiaries made capital contribution amounted to RMB80.8 million (US$11.5 million) to the WFOEs. Beijing Kingsoft Cloud and Yunxiang Zhisheng, our PRC subsidiaries, provided the VIEs and their subsidiaries with technical support, consulting services and other services related to the business of VIEs and their subsidiaries, including business management, daily operations, strategic planning, among others.

As of December 31, 2024 and 2025, there were no outstanding balance owed by the VIEs to Kingsoft Cloud Holdings Limited and its subsidiaries under the VIE agreements, and there were no outstanding balance owed by Kingsoft Cloud Holdings Limited and its subsidiaries to the VIEs under the VIE agreements. In 2025, Kingsoft Cloud Holdings Limited and its subsidiaries provided loans amounted to RMB2,636.6 million (US$377.0 million) to the VIEs and repaid loans amounted to RMB100.0 (US$14.3 million), and the VIEs provided loans amounted to RMB50.0 million (US$7.1 million) to Kingsoft Cloud Holdings Limited and its subsidiaries. In 2025, the VIEs transferred RMB33.1 million (US$4.7 million) to our PRC subsidiaries for services provided. There were no other assets transferred between the VIEs and their subsidiaries and non-VIEs in 2025. For any amounts owed by the VIEs to Kingsoft Cloud Holdings Limited or our PRC subsidiaries under the contractual arrangements with the VIEs, unless otherwise required by PRC tax authorities, we are able to settle such amounts under the current effective PRC laws and regulations, provided that the VIEs have sufficient funds to do so.

Kingsoft Cloud Holdings Limited has not previously declared or paid any cash dividend or dividend in kind, and has no plan to declare or pay any dividends in the near future on our shares or the ADSs representing our ordinary shares. None of the VIEs or our PRC subsidiaries has issued any dividends or distributions to their respective parent companies, including Kingsoft Cloud Holdings Limited, or to any investors as of the date of this annual report. We currently intend to retain most, if not all, of our available funds and any future earnings to operate and expand our business. See "Item 8. Financial Information—8.A. Consolidated Statements and Other Financial Information—Dividend Policy."

[**Table of Contents**](#TOC)

For the purpose of illustration, the below table reflects the hypothetical taxes that might be required to be paid within China, assuming that: (i) we have taxable earnings, and (ii) we determine to pay a dividend in the future:

---

| | |
|:---|:---|
|  | **Taxation Scenario** <sup>(1)</sup><br>**Statutory Tax and Standard Rates** |
| Hypothetical pre-tax earnings<sup>(2)</sup> | 100% |
| Tax on earnings at statutory rate of 25% | (25)% |
| Net earnings available for distribution | 75% |
| Withholding tax at standard rate of 10%<sup>(3)</sup> | (7.5)% |
| Net distribution to Kingsoft Cloud Holdings Limited/Shareholders | 67.5% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;(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.

The table above has been prepared under the assumption that all profits of the VIEs and their subsidiaries will be distributed as fees to our PRC subsidiaries under tax neutral contractual arrangements. If in the future, the accumulated earnings of the VIEs and their subsidiaries exceed the fees paid to our PRC subsidiaries, or if the current and contemplated fee structure between the intercompany entities is determined to be non-substantive and disallowed by Chinese tax authorities, we have other tax-planning strategies that can be deployed on a tax neutral basis.

Should all tax planning strategies fail, the VIEs and their subsidiaries could, as a matter of last resort, make a non-deductible transfer to our PRC subsidiaries for the amounts of the stranded cash in the VIEs and their subsidiaries. This would result in the double taxation of earnings: one at the VIE level (for non-deductible expenses) and one at the PRC subsidiary level (for presumptive earnings on the transfer). Such a transfer and the related tax burdens would reduce our after-tax income to approximately 50.63% of the pre-tax income. Our management is of the view that the likelihood that this scenario would happen is remote.

[**Table of Contents**](#TOC)

#### Condensed Consolidating Schedule
The following tables present the summary statements of operations for Kingsoft Cloud Holdings Limited, its WFOE, its subsidiaries other than WFOE, and the VIEs and their subsidiaries for the periods presented.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
|  | **Kingsoft** <br>**Cloud**<br>**Holdings**<br>**Limited** | <br>**WFOE** | <br>**Subsidiaries**<br>**(other than**<br>**WFOE)** | <br>**VIEs and**<br>**their**<br>**subsidiaries** | <br>**Eliminations** | <br>**Consolidated** |
|  | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* |
| Third-party revenues |  |  | 2891095 | 4156366 |  | 7047461 |
| Intra-Group revenues <sup>(1)</sup> |  | 14655 | 31054 | 443355 | (489064) |  |
| **Total revenues** | **—** | **14655** | **2922149** | **4599721** | **(489064)** | **7047461** |
| Third-party costs and expenses | (36736) | (262123) | (2594523) | (6262630) |  | (9156012) |
| Intra-Group costs and expenses <sup>(1)</sup> |  |  | (320354) | (39695) | 360049 |  |
| **Total costs and expenses** | **(36736)** | **(262123)** | **(2914877)** | **(6302325)** | **360049** | **(9156012)** |
| **Operating (loss) income** | **(36736)** | **(247468)** | **7272** | **(1702604)** | **(129015)** | **(2108551)** |
| (Loss) income from non-operations | (18205) | 274356 | 67576 | (407418) | 8595 | (75096) |
| Share of income of subsidiaries | 62514 |  |  |  | (62514) |  |
| Contractual interests in VIEs and VIEs' subsidiaries <sup>(3)</sup> | (2183913) |  |  |  | 2183913 |  |
| **Net (loss) income** | **(2176340)** | **26888** | **74848** | **(2110022)** | **2000979** | **(2183647)** |

---

[**Table of Contents**](#TOC)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
|  | **Kingsoft** <br>**Cloud**<br>**Holdings**<br>**Limited** | <br>**WFOE** | <br>**Subsidiaries**<br>**(other than**<br>**WFOE)** | <br>**VIEs and**<br>**their**<br>**subsidiaries** | <br>**Eliminations** | <br>**Consolidated** |
|  | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* |
| Third-party revenues |  |  | 2947497 | 4837683 |  | 7785180 |
| Intra-Group revenues <sup>(1)</sup> |  | 12991 | 21126 | 365009 | (399126) |  |
| **Total revenues** | **—** | **12991** | **2968623** | **5202692** | **(399126)** | **7785180** |
| Third-party costs and expenses | (25975) | (109775) | (2821439) | (6567001) |  | (9524190) |
| Intra-Group costs and expenses <sup>(1)</sup> |  | (25494) | (223181) | (42134) | 290809 |  |
| **Total costs and expenses** | **(25975)** | **(135269)** | **(3044620)** | **(6609135)** | **290809** | **(9524190)** |
| **Operating loss** | **(25975)** | **(122278)** | **(75997)** | **(1406443)** | **(108317)** | **(1739010)** |
| (Loss) income from non-operations | (28733) | 205632 | 153443 | (506601) | (63773) | (240032) |
| Share of income of subsidiaries | 1072 |  |  |  | (1072) |  |
| Contractual interests in VIEs and VIEs' subsidiaries <sup>(3)</sup> | (1913044) |  |  |  | 1913044 |  |
| **Net (loss) income**  | **(1966680)** | **83354** | **77446** | **(1913044)** | **1739882** | **(1979042)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
|  | **Kingsoft**<br>**Cloud**<br>**Holdings**<br>**Limited** | <br>**WFOE** | <br>**Subsidiaries**<br>**(other than**<br>**WFOE)** | <br>**VIEs and**<br>**their**<br>**subsidiaries** | <br>**Eliminations** | <br>**Consolidated** |
|  | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* |
| Third-party revenues |  | 36275 | 3120734 | 6401610 |  | 9558619  |
| Intra-Group revenues <sup>(1)</sup> |  | 7223 | 53486 | 218763 | (279472) |  |
| **Total revenues** | **—** | **43498** | **3174220** | **6620373** | **(279472)** | **9558619**  |
| Third-party costs and expenses | (51962) | (137362) | (3311367) | (6830841) |  | (10331532) |
| Intra-Group costs and expenses <sup>(1)</sup> |  | (783) | (79557) | (61489) | 141829  |  |
| **Total costs and expenses** | **(51962)** | **(138145)** | **(3390924)** | **(6892330)** | **141829**  | **(10331532)** |
| **Operating loss** | **(51962)** | **(94647)** | **(216704)** | **(271957)** | **(137643)** | **(772913)** |
| (Loss) income from non-operations | (3626) | 260158 | 49456 | (496139) | 19372  | (170779) |
| Share of loss of subsidiaries | (112568) |  |  |  | 112568  |  |
| Contractual interests in VIEs and VIEs' subsidiaries <sup>(3)</sup> | (768095) |  |  |  | 768095  |  |
| **Net (loss) income** | **(936251)** | **165511** | **(167248)** | **(768096)** | **762392**  | **(943692)** |

---

[**Table of Contents**](#TOC)

The following tables present the summary balance sheet data for Kingsoft Cloud Holdings Limited, its WFOE, its subsidiaries other than WFOE, and the VIEs and their subsidiaries as of the dates presented.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Kingsoft** <br>**Cloud**<br>**Holdings**<br>**Limited** | <br>**WFOE** | <br>**Subsidiaries**<br>**(other than**<br>**WFOE)** | <br>**VIEs and**<br>**their**<br>&nbsp;&nbsp;&nbsp;&nbsp;**subsidiaries** | <br>**Eliminations** | <br>**Consolidated** |
|  | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* |
| **Current assets:** |  |  |  |  |  |  |
| Cash and cash equivalents | 4843 | 295430 | 1180814 | 1167677 |  | 2648764 |
| Restricted cash |  |  | 35837 | 45500 |  | 81337 |
| Accounts receivable, net |  |  | 424004 | 1044659 |  | 1468663 |
| Short-term investment |  |  | 90422 |  |  | 90422 |
| Prepayments and other assets | 31216 | 16003 | 865549 | 1320306 |  | 2233074 |
| Amounts due from related parties |  | 232 | 51902 | 266392 |  | 318526 |
| **Total current assets** | **36059** | **311665** | **2648528** | **3844534** | **—** | **6840786** |
| **Non-current assets:** |  |  |  |  |  |  |
| Property and equipment, net |  | 43098 | 52436 | 4534518 |  | 4630052 |
| Intangible assets, net |  |  | 620773 | 74107 |  | 694880 |
| Prepayments and other assets |  |  | 1061 | 448922 |  | 449983 |
| Goodwill |  |  | 4556909 | 48815 |  | 4605724 |
| Equity investments |  | 17197 | 50871 | 166114 |  | 234182 |
| Investments in subsidiaries <sup>(2)</sup> | 6064318 |  |  |  | (6064318) |  |
| Operating lease right-of-use assets |  | 2105 | 39990 | 94952 |  | 137047 |
| **Total non-current assets** | **6064318** | **62400** | **5322040** | **5367428** | **(6064318)** | **10751868** |
| Amounts due from Kingsoft Cloud Holdings Limited |  | 5457 | 1269233 | 86275 | (1360965) |  |
| Amounts due from subsidiaries (other than WFOE) |  | 2690 |  | 2658342 | (2661032) |  |
| Amounts due from WFOE |  |  | 1163360 | 613455 | (1776815) |  |
| Amounts due from VIEs and VIEs' subsidiaries |  | 9623511 | 3595806 |  | (13219317) |  |
| **Amounts due from group companies** | **—** | **9631658** | **6028400** | **3358071** | **(19018129)** | **—** |
| **Total assets** | **6100377** | **10005723** | **13998968** | **12570033** | **(25082447)** | **17592654** |
| **Current liabilities:** |  |  |  |  |  |  |
| Accounts payable |  |  | 166267 | 1710737 |  | 1877004 |
| Accrued expenses and other liabilities | 837703 | 79254 | 934439 | 1490594 |  | 3341990 |
| Short-term bank loans |  |  | 59500 | 2166265 |  | 2225765 |
| Income tax payable | 2902 |  | 66317 |  |  | 69219 |
| Amounts due to related parties |  | 29354 | 50191 | 1504654 |  | 1584199 |
| Current operating lease liabilities |  | 2161 | 18768 | 40329 |  | 61258 |
| **Total current liabilities** | **840605** | **110769** | **1295482** | **6912579** | **—** | **9159435** |
| **Non-current liabilities:** |  |  |  |  |  |  |
| Long-term bank loan |  |  |  | 1660584 |  | 1660584 |
| Deferred tax liabilities |  | 12063 | 89614 |  |  | 101677 |
| Other liabilities |  |  | 69189 | 721082 |  | 790271 |
| Non-current operating lease liabilities |  |  | 16403 | 49352 |  | 65755 |
| Amounts due to related parties |  |  |  | 309612 |  | 309612 |
| **Total non-current liabilities** | **—** | **12063** | **175206** | **2740630** | **—** | **2927899** |
| Amounts due to Kingsoft Cloud Holdings Limited |  |  |  |  |  |  |
| Amounts due to subsidiaries (other than WFOE) | 1269233 | 1163360 |  | 3595806 | (6028400) |  |
| Amounts due to WFOE | 5457 |  | 2690 | 9623511 | (9631658) |  |
| Amounts due to VIEs and VIEs' subsidiaries | 86275 | 613454 | 2658342 |  | (3358071) |  |
| **Amounts due to group companies** | **1360965** | **1776814** | **2661032** | **13219317** | **(19018129)** | **—** |
| **Total liabilities** | **2201570** | **1899646** | **4131720** | **22872526** | **(19018129)** | **12087334** |

---

[**Table of Contents**](#TOC)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
|  | **Kingsoft** <br>**Cloud**<br>**Holdings**<br>**Limited** | <br>**WFOE** | <br>**Subsidiaries**<br>**(other than**<br>**WFOE)** | <br>**VIEs and**<br>**their**<br>&nbsp;&nbsp;&nbsp;&nbsp;**subsidiaries** | <br>**Eliminations** | <br>**Consolidated** |
|  | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* |
| **Current assets:** |  |  |  |  |  |  |
| Cash and cash equivalents | 2161778  | 145216  | 2341159  | 1369890  |  | 6018043  |
| Restricted cash |  |  | 50088  | 49106  |  | 99194  |
| Accounts receivable, net |  | 1656  | 433281  | 1305535  |  | 1740472  |
| Prepayments and other assets | 4633  | 6783  | 871067  | 1709831  |  | 2592314  |
| Amounts due from related parties |  | 694  | 130748  | 441954  |  | 573396  |
| **Total current assets** | **2166411**  | **154349**  | **3826343**  | **4876316**  | **—** | **11023419**  |
| **Non-current assets:** |  |  |  |  |  |  |
| Property and equipment, net |  | 93952  | 51610  | 9949308  |  | 10094870  |
| Intangible assets, net |  |  | 467840  | 64929  |  | 532769  |
| Prepayments and other assets |  | 50  | 300  | 139486  |  | 139836  |
| Goodwill |  |  | 4556909  | 48815  |  | 4605724  |
| Equity investments |  | 18433  | 49619  | 166114  |  | 234166  |
| Investments in subsidiaries <sup>(2)</sup> | 5881741 |  |  |  | (5881741) |  |
| Operating lease right-of-use assets |  | 539 | 31645 | 66221  |  | 98405 |
| **Total non-current assets** | **5881741** | **112974** | **5157923** | **10434873**  | **(5881741)** | **15705770** |
| Amounts due from Kingsoft Cloud Holdings Limited |  | 36038  |  | 46987  | (83025) |  |
| Amounts due from subsidiaries (other than WFOE) | 1478929 | 4350  |  | 1509834  | (2993113) |  |
| Amounts due from WFOE |  |  | 1072986  | 794180  | (1867166) |  |
| Amounts due from VIEs and VIEs' subsidiaries |  | 9266269  | 3687510  |  | (12953779) |  |
| **Amounts due from group companies** | **1478929** | **9306657**  | **4760496**  | **2351001**  | **(17897083)** | **—** |
| **Total assets** | **9527081** | **9573980**  | **13744762**  | **17662190**  | **(23778824)** | **26729189** |
| **Current liabilities:** |  |  |  |  |  |  |
| Accounts payable |  |  | 197368  | 1817085  |  | 2014453 |
| Accrued expenses and other liabilities | 127030 | 136702  | 971740  | 1986957  |  | 3222429 |
| Short-term bank loans |  |  | 40643  | 3307636  |  | 3348279 |
| Income tax payable |  |  | 73310 |  |  | 73310 |
| Amounts due to related parties |  | 29318  | 754  | 691860  |  | 721932  |
| Current operating lease liabilities |  | 273  | 20723  | 19945  |  | 40941  |
| **Total current liabilities** | **127030** | **166293**  | **1304538**  | **7823483**  | **—** | **9421344**  |
| **Non-current liabilities:** |  |  |  |  |  |  |
| Long-term bank loan |  |  |  | 3023538  |  | 3023538  |
| Deferred tax liabilities |  | 12063  | 49851  |  |  | 61914  |
| Other liabilities |  |  | 75408  | 2570487  |  | 2645895  |
| Non-current operating lease liabilities |  | 248  | 6289  | 44602  |  | 51139  |
| Amounts due to related parties |  |  |  | 2212325  |  | 2212325  |
| **Total non-current liabilities** | **—** | **12311**  | **131548**  | **7850952**  | **—** | **7994811**  |
| Amounts due to Kingsoft Cloud Holdings Limited |  |  | 1478929  |  | (1478929) |  |
| Amounts due to subsidiaries (other than WFOE) |  | 1072986  |  | 3687510  | (4760496) |  |
| Amounts due to WFOE | 36038 |  | 4350  | 9266269  | (9306657) |  |
| Amounts due to VIEs and VIEs' subsidiaries | 46987 | 794180  | 1509834  |  | (2351001) |  |
| **Amounts due to group companies** | **83025** | **1867166**  | **2993113**  | **12953779**  | **(17897083)** | **—** |
| **Total liabilities** | **210055** | **2045770**  | **4429199**  | **28628214**  | **(17897083)** | **17416155**  |

---

[**Table of Contents**](#TOC)

The following tables present the summary cash flow data for Kingsoft Cloud Holdings Limited, its WFOE, its subsidiaries other than WFOE, and the VIEs and their subsidiaries for the periods presented.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
|  | **Kingsoft** <br>**Cloud**<br>**Holdings**<br>**Limited** | <br>**WFOE** | <br>**Subsidiaries**<br>**(other than**<br>**WFOE)** | <br>**VIEs and**<br>**their**<br>&nbsp;&nbsp;&nbsp;&nbsp;**subsidiaries** | <br>**Eliminations** | <br>**Consolidated** |
|  | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* |
| Net cash (used in) generated from operating activities | (66850) | (108442) | 292797 | (286575) |  | (169070) |
| Net cash generated from (used in) investing activities | 609277 | (1557071) | (181347) | (1833636) | 2289591 | (673186) |
| Net cash (used in) generated from financing activities | (681660) | 1341798 | (408198) | 1809799 | (2289591) | (227852) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
|  | **Kingsoft** <br>**Cloud**<br>**Holdings**<br>**Limited** | <br>**WFOE** | <br>**Subsidiaries**<br>**(other than**<br>**WFOE)** | <br>**VIEs and**<br>**their**<br>&nbsp;&nbsp;&nbsp;&nbsp;**subsidiaries** | <br>**Eliminations** | <br>**Consolidated** |
|  | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* |
| Net cash (used in) generated from operating activities | (82174) | (141793) | 440084 | 412302 |  | 628419 |
| Net cash generated from (used in) investing activities | 243994 | (94984) | (1217741) | (3036703) | 484989 | (3620445) |
| Net cash (used in) generated from financing activities | (213174) | 431319 | 640536 | 2881726 | (484989) | 3255418 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
|  | **Kingsoft** <br>**Cloud**<br>**Holdings**<br>**Limited** | <br>**WFOE** | <br>**Subsidiaries**<br>**(other than**<br>**WFOE)** | <br>**VIEs and**<br>**their**<br>&nbsp;&nbsp;&nbsp;&nbsp;**subsidiaries** | <br>**Eliminations** | <br>**Consolidated** |
|  | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* |
| Net cash generated from (used in) operating activities | 73443  | (366140) | 1573990  | 2519735  |  | 3801028  |
| Net cash (used in) generated from investing activities | (1883988) | 135135  | 185680  | (4532128) | 1565572  | (4529729) |
| Net cash generated from (used in) financing activities | 4031637  | 80791  | (551573) | 2187700  | (1565572) | 4182983  |

---

Notes:

(1)It represents the intra-group transaction charge under a series of commercial agreements among the Company's WFOE, subsidiaries, VIEs and VIEs' subsidiaries.

(2)It represents the Company's investments in Camelot, the Company's subsidiaries.

(3)It represents the primary beneficiary's share of loss generated from the VIEs and their subsidiaries.

#### Restrictions on Foreign Exchange and the Ability to Transfer Cash between Entities, Across Borders and to U.S. Investors
Kingsoft Cloud Holdings Limited's ability to pay dividends, if any, to its shareholders and ADS holders and to service any debt it may incur will depend upon dividends paid by our PRC subsidiaries. Under PRC laws and regulations, our PRC subsidiaries are subject to certain restrictions with respect to paying dividends or otherwise transferring any of their net assets offshore to Kingsoft Cloud Holdings Limited. In particular, under the current effective PRC laws and regulations, dividends may be paid only out of distributable profits. Distributable profits are the net profit as determined under PRC GAAP, less any recovery of accumulated losses and appropriations to statutory and other reserves required to be made. Each of our PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, after making up previous years' accumulated losses, if any, to fund certain statutory reserve funds, until the aggregate amount of such a fund reaches 50% of its registered capital. As a result, our PRC subsidiaries may not have sufficient distributable profits to pay dividends to us in the near future.

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Furthermore, if certain procedural requirements are satisfied, the payment of current account items, including profit distributions and trade and service related foreign exchange transactions, can be made in foreign currencies without prior approval from State Administration of Foreign Exchange (the "SAFE") or its local branches. However, where RMB is to be converted into foreign currency and remitted out of China to pay capital expenses, such as the repayment of loans denominated in foreign currencies, approval from or registration with competent government authorities or its authorized banks is required. The PRC government may take measures at its discretion from time to time to restrict access to foreign currencies for current account or capital account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands, we may not be able to pay dividends in foreign currencies to our offshore intermediary holding companies or ultimate parent company, and therefore, our shareholders or investors in the ADSs. Further, we cannot assure you that new regulations or policies will not be promulgated in the future, which may further restrict the remittance of RMB into or out of the PRC. We cannot assure you, in light of the restrictions in place, or any amendment to be made from time to time, that our current or future PRC subsidiaries will be able to satisfy their respective payment obligations that are denominated in foreign currencies, including the remittance of dividends outside of the PRC. If any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict its ability to pay dividends to Kingsoft Cloud Holdings Limited. In addition, our PRC subsidiaries are required to make appropriations to certain statutory reserve funds, which are not distributable as cash dividends except in the event of a solvent liquidation of the companies.

For PRC and United States federal income tax consideration of an investment in the ADSs, see "Item 10. Additional Information—10.E. Taxation."

#### Implication of the Holding Foreign Companies Accountable Act
Trading in our securities on U.S. markets, including the Nasdaq, may be prohibited under the Holding Foreign Companies Accountable Act (the "HFCAA") if the PCAOB determines that it is unable to inspect or investigate completely our auditor for two consecutive years. On December 16, 2021, the PCAOB issued the HFCAA Determination Report to notify the SEC of its determinations that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in Chinese Mainland and Hong Kong (the "2021 Determinations"), including our auditor. The inability of the PCAOB to conduct inspections in the past also deprived our investors of the benefits of such inspections. On December 15, 2022, the PCAOB announced that it was able to conduct inspections and investigations completely of PCAOB-registered public accounting firms headquartered in Chinese Mainland and Hong Kong in 2022. The PCAOB vacated its previous 2021 Determinations accordingly. As a result, we were not at risk of having our securities subject to a trading prohibition under the HFCAA unless a new determination is made by the PCAOB. However, whether the PCAOB will continue to conduct inspections and investigations completely to its satisfaction of PCAOB-registered public accounting firms headquartered in Chinese Mainland and Hong Kong is subject to uncertainty and depends on a number of factors out of our, and our auditor's, control, including positions taken by authorities of the PRC. The PCAOB is expected to continue to demand complete access to inspections and investigations against accounting firms headquartered in Chinese Mainland and Hong Kong in the future and states that it has already made plans to resume regular inspections going forward. The PCAOB is required under the HFCAA to make its determination on an annual basis with regards to its ability to inspect and investigate completely accounting firms based in the Chinese Mainland and Hong Kong. The possibility of being a "Commission-Identified Issuer" and risk of delisting could continue to adversely affect the trading price of our securities. If the PCAOB determines in the future that it no longer has full access to inspect and investigate accounting firms headquartered in Chinese Mainland and Hong Kong and we continue to use such accounting firm to conduct audit work, we would be identified as a "Commission-Identified Issuer" under the HFCAA following the filing of the annual report for the relevant fiscal year, and if we were so identified for two consecutive years, trading in our securities on U.S. markets would be prohibited. For details, see "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Doing Business in China—Trading in our securities on U.S. markets, including the Nasdaq, may be prohibited under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB determines that it is unable to inspect or investigate completely our auditor for two consecutive years."

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**4. B.** **Business Overview**

#### Our Mission
Our mission is to become customers' trusted partner to embrace digitalization.

#### Overview
We offer various cloud services to customers in strategically selected verticals. We help customers achieve digitalization and intelligent upgrade through our extensive cloud infrastructure, advanced cloud products based on our vigorous cloud technology R&D capabilities, industry-specific solutions and end-to-end fulfillment and deployment covering all project stages for customers.

We have established our market presence by addressing customers' comprehensive needs. We provide various advanced cloud products primarily consisted of unified IaaS infrastructure, PaaS middleware, certain SaaS applications and AI solutions, which support a wide range of use cases that enable our customers' diverse business objectives. We also offer our solutions in a holistic approach by merging our cloud solutions with dedicated customer services. Our end-to-end customer services cover planning, solution development, fulfillment and deployment, as well as ongoing maintenance and upgrade. The entire process is primarily executed by our in-house professionals, with strict adherence to high standards and full accountability.

We have strategically expanded our footprints into selected verticals and have established a strong market presence in each selected vertical through efficient execution. As we continue to complete featured projects with vertical leaders, we have accumulated proprietary industry know-how and formed in-depth view of each selected vertical, which enables us to provide high-quality industry-specific cloud solutions. We have also aligned our research and development efforts with our business focuses, which enables us to act swiftly and develop new product modules and features that are specifically tailored to address a growing number of business needs faced by our customers.

We implement a premium customer strategy, focusing on covering leading enterprises in selected verticals to establish market presence efficiently, with a customer-centric service philosophy. We have amassed a large and solid Premium Customer base with increasing spending. In 2023, 2024 and 2025, we had a total of 486, 492 and 473 Premium Customers, respectively.

Our revenue increased by 10.5% from RMB7,047.5 million in 2023 to RMB7,785.2 million in 2024, and further increased by 22.8% to RMB9,558.6 million (US$1,366.9 million) in 2025. The increase in 2025 was primarily due to expansion of our AI-related business..

#### Our Cloud Platform
We are dedicated to providing high-quality cloud solutions to businesses and organizations across various sectors. We have built a cloud platform consisting of extensive cloud infrastructure, advanced cloud-native products, industry-specific solutions, and end-to-end services. Cloud infrastructure is the foundation of our cloud platform. It consists of hardware, software components and network resources that are needed to support the delivery of cloud products, primarily as public cloud services, to customers. Leveraging our cloud infrastructure, we provide various advanced cloud products that can be utilized to design different solutions to meet various business needs. We have designed various industry-specific solutions which consist of a selection of cloud products to cater to customer demands across different industries. Instead of merely providing cloud solutions to facilitate the entire cloud adoption process, we also offer end-to-end fulfillment and deployment services, ranging from planning, solution development, fulfillment and deployment, as well as ongoing maintenance and upgrade.

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The following chart illustrates our cloud platform:

![Graphic](kc-20251231x20f010.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Extensive cloud infrastructure.*** We have established extensive cloud infrastructure which is the foundation of our cloud platform. As of December 31, 2025, we had approximately 101,500 servers, and achieved exabyte-level (which equals to 1,000,000,000 gigabytes) storage capacity.

●  ***Advanced cloud-native products.*** Our cloud is architected specifically for customers to run business in an elastic and distributed manner required in disruptive business models. We, as an early mover in serving internet customers, have cultivated proprietary cloud-native technology and have successfully commercialized our technology capabilities through advanced cloud products.

●  ***Industry-specific solutions.*** Based on the variety of cloud products, we have designed various industry-specific solutions that can unleash the full potential of our infrastructure resources and add value to our customers. Leveraging our profound industry insights, we have strategically expanded our footprints into selected verticals and have established market presence through dedicated execution.

●  ***End-to-end fulfillment and deployment.*** We serve our clients throughout the whole cloud adoption process. At project initiation, we provide planning services with in-depth industry know-how, setting the overarching route for cloud migration. We have customized procedures to help customer to smoothly migrate their mission-critical data and applications on to our cloud platform. With our in-house fulfillment and deployment professionals, we adhere to consistent high standards at every stage of cloud adoption and commit to quality deployment.

#### Our Products and Solutions
***Our Public Cloud Products***

Our public cloud products provide on-demand high-performance IT infrastructure resources, offering advantages such as agility, scalability and flexibility. Compared with traditional IT infrastructure, our public cloud products enable rapid adaptation to customers' business needs without substantial investment in hardware. The public cloud products we offer include elastic computing, cloud storage, cloud network, cloud databases, big data and Starflow ("Xingliu") Platform, a one-stop platform for training, inference, model service and agent service.

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*Cloud Elastic Computing*

Our cloud elastic computing products primarily include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Elastic Compute ("KEC") Cloud Server: KEC is a core component of Kingsoft Cloud's computing infrastructure, offering simple, efficient, secure, and highly scalable computing services. It enables users to perform large- scale internet computing, deploy required server environments, and easily adjust resources based on business needs. Compared to physical servers, KEC offers greater flexibility, security, and cost efficiency with a pay-as-you-go model. It eliminate the need for hardware procurement and allow on-demand elastic resource allocation, effectively improving O&M efficiency and reducing usage costs. KEC provides various instance types tailored for different industries and scenarios, including Standard, General-purpose, IO- optimized, Compute-optimized, Performance-ensured, and Galaxy series. With an availability of up to 99.975%, KEC supports seamless failover migration and the stability of user services. Upgrading with the latest hardware technology iterations in the industry, KEC is now fully compatible with Intel's latest 6th-generation Xeon CPUs and AMD Turin platforms.

● Kingsoft Cloud GPU Cloud Server provides general-purpose GPU-accelerated computing, supporting applications such as scientific computing, image rendering, and GPU-based audio and video encoding and decoding. It offers users stable, fast, and flexible computing services, along with a unified and convenient cloud server management experience. Typical use cases for GPU Cloud Server (GEC) include offline training and online inference. Leveraging the powerful computing capabilities of GPUs, GEC serves as a comprehensive platform for training and inference. Additionally, it can be integrated with Kingsoft Cloud Object Storage (KS3) for cloud storage, Kingsoft Cloud Relational Database Service (KRDS) for online database services, and Kingsoft Cloud MapReduce (KMR) for large-scale distributed processing. This enables users to build a fully functional deep learning system, facilitating efficient and secure model training and online service deployment.

● Kingsoft Cloud Dedicated Host ("KDH"): For users with strong demands for on-premise resource allocation, security and compliance, we offer KDH to provide exclusive physical server resources. Users can create custom-configured dedicated cloud servers on the KDH and apply advanced virtualization technology to achieve resource exclusivity and security, and meet compliance requirements. The features of KDH primarily include resource isolation, custom configuration, flexible creation, adjustable configurations and graphical resource management control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Bare Metal Servers Elastic Physical Compute ("EPC"): EPC provides users with cloud-based dedicated and securely isolated physical server clusters, featuring physical-server level, high stability and excellent computing performance, with no CPU contention or virtualization performance overhead. Standard model can be deployed and delivered in a minimum of 30 minutes. Leveraging Kingsoft Cloud's foundational capabilities such as Virtual Private Cloud, load balancing, operation and maintenance monitoring, and security protection, these servers integrate seamlessly with the full portfolio of cloud products including cloud databases and big data services, enabling convenient and efficient network deployment and server O&M.

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On the basis of the above advantages, GPU bare metal servers further incorporate powerful GPU computing power, delivering exceptional parallel computing and floating-point computing capabilities and supporting full-lifecycle management in the cloud. They are widely applicable to scenarios including AI deep learning, image rendering, cloud gaming, and AR/VR, providing users with stable, efficient, elastically scalable computing services to drive business innovation and rapid growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Auto Scaling ("AS"): AS automatically adjusts the computing resources of KEC based on user-defined policies, enabling optimal and efficient utilization of cloud server resources that align with dynamic changes in user business needs. AS automatically reduces cloud servers to save resources and costs when the business demands decrease, and automatically increases cloud servers to ensure smooth and healthy business operations during the peak demand periods, preventing server crashes due to sudden spikes in workload and providing buffer time for issue resolution. Meanwhile, AS enhances transparency in the scaling process by introducing comprehensive lifecycle management and observability capabilities. It supports the parallel execution of multiple scaling trigger mechanisms to improve the efficiency and stability of auto-scaling. In addition, it provides lifecycle hook capabilities, allowing users to orchestrate and intervene in the scaling process to meet the demands of more complex business scenarios. Overall, it boasts such core advantages as automated deployment, cost optimization, high availability assurance, and flexible scalability. Kingsoft Cloud Container Engine ("KCE"): KCE is a high-performance intelligent computing container platform with containers at its core, which developed and adapted based on the native Kubernetes to seamlessly integrate containers with other basic computing, storage and network resources, products and services we offer. Built-in end-to-end tools for AI scenarios, KCE helps customers build elastic, highly available enterprise-level Kubernetes intelligent computing clusters with one click. It features with advantages such as security and reliability, efficient deployment, ease of use, and cost savings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Container Instance ("KCI"): KCI provides a server-less container service that helps users to manage the full life-cycle of their containers in the cloud without pre-purchasing or managing the underlying servers. Virtual Node is implemented based on the open-source Kubernetes kubelet, supporting the use of KCI as Pod resources within the cluster. KCI is responsible for scheduling and managing underlying Pod container resources, while Kubernetes acts as the business orchestration layer above KCI to manage business workloads. After KCI takes over management of the underlying infrastructure for Pod containers, Kubernetes no longer needs to directly handle the creation, startup, and other operations of individual Pods, nor does it need to monitor underlying VM resource status. KCI ensures that resources required by Pods are available at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Container Registry ("KCR"): KCR provides exclusive container image security hosting services for enterprise-grade customers with strict data security and compliance requirements, multi-region deployments and large-scale clusters. It provides dedicated container image security hosting services, ensuring data security through segmented permission management and network access control

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Function (KCF): KCF provides users with a fully managed computing environment under the Serverless architecture. Users are relieved from managing server-related operations and deployments, and only need to write and upload core code, and KCF will run the code in a flexible, highly available and cost-effective manner. KCF features efficient development, cost-effectiveness, elastic scalability and simplified operations, and support application scenarios including file processing, data processing and web application development.

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*Cloud Storage*

We have developed different storage products for various application scenarios. Our cloud storage products provide cost-effective digitalized data storage infrastructure with high security, which can be deployed off premises or on premises upon request. Our key cloud storage products include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Standard Storage Service ("KS3"): KS3 is a scalable, multi-redundant, distributed, and cost-effective storage solution offered by Kingsoft Cloud. KS3 provides exabyte-level storage capacity, allowing each storage bucket to handle a high number of queries per second while ensuring up to 99.999999999% data reliability. It offers multiple storage types including Standard, Infrequent Access and Archive, supports multiple programming language SDKs and command-line interfaces, helping developers address challenges such as storage expansion, data security, and distributed access. Users can easily store and retrieve various data files, including images, audio, video, and text. Additionally, KS3 offers a storage solution optimized for AI data lakes, compatible with the HDFS and POSIX protocols. Leveraging all-flash storage, the ks3fs tool and KS3 accelerator, it meets the demands of high-performance scenarios including AI, big data and intensive computing workloads. Elastic Block Storage ("EBS"): EBS provides high-performance, low-latency, highly persistent block storage services. Through distributed clustering and multi-replica technology, it ensures data reliability of up to 99.999999999%. The ultra-fast ESSD cloud disk adopts a proprietary storage engine, delivering up to 1 million random IOPS, 4 GB/s bandwidth per disk, and consistently low latency, easily supporting I/O-intensive workloads. Among them, ESSD AutoPL cloud disks decouple capacity from performance, supporting customizable configurations with up to 1 GB/s throughput and 120,000 IOPS per disk. ESSD PL0/PL1/PL2 cloud disks feature shared mounting deeply optimized based on the NVMe protocol, breaking through single-instance limits to support sharing across multiple NVMe cloud server instances. With NVMe PR persistent reservation locks, they ensure strong data consistency and secure concurrent access, making them ideal for high-concurrency shared storage scenarios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud File Storage ("KFS"): KFS is a scalable shared file storage service for KEC and EPC services. It supports standard file access protocols including NFS and CIFS, allowing existing applications to be mounted and used without any modifications. It is suitable for scenarios such as content management, enterprise office file sharing, and media processing. Advantages in ease of use, stability, and cost efficiency, the product offers features including recycle bin, snapshot, IP access authorization, and cloud monitoring, providing robust protection for business data security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud High-Performance File Storage ("KPFS"): KPFS is a fully managed, ready-to-use high-performance distributed file storage service designed for GPU bare metal instances, KEC cloud servers, the StarFlow ("XingLiu") platform, and container services. Leveraging high- performance RDMA networking, NVMe all-flash architecture and intelligent caching technology, it achieves end-to-end full-link performance optimization and delivers high-throughput, low-latency parallel file storage capabilities. It is ideal for high-performance scenarios such as AI training, autonomous driving, and video rendering. The service supports data mobility between KPFS and KS3, as well as recycle bin, snapshot, NFS protocol, and cloud monitoring features, along with automatic mounting on startup. With deep integration into the XingLiu platform, bare metal computing resources, and the cloud-native container ecosystem, KPFS provides a one-stop high-performance storage solution for intelligent computing workloads.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Data Migration Service ("KMS"): KMS aims to assist users in migrating data from other cloud vendors or on-premises IDCs to our Object Storage Service. We provide both online and offline migration to meet various migration scenarios. Online migration involves deploying software to migrate user data to KS3 and is suitable for scenarios with small data volumes, stable network environments and sufficient bandwidth. Offline migration entails deploying hardware in the data source IDC to migrate a large number of files offline to KS3, which addresses challenges such as low transmission efficiency, long transmission times and poor security in large-scale data transfer scenarios.

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*Cloud Network*

Our cloud network products provide cloud-enabled or cloud-based network resources and services, offering reliable and secure network access and connections, to help users optimize resource allocation. Our key cloud network products include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Shared Load Balancing is a network service that automatically distributes network traffic across multiple backend servers. By configuring a virtual service address (VIP), it pools multiple backend servers in the same region into a high-performance, highly available application service pool, and distributes client requests to servers in the pool according to specified policies. Kingsoft Cloud Shared Load Balancing have features including support both public and private network service types, provide Layer 4 (TCP, UDP) and Layer 7 (HTTP, HTTPS) network services, support Elastic IP binding and unbinding to improve service flexibility and availability, support health checks to automatically isolate backend servers in abnormal status based on configurations; supports session persistence to continuously route requests from the same client to the same backend server, offer a centralized certificate management system for HTTPS to meet diverse requirements for reliable, efficient and secure data transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Dedicated Load Balancing is a traffic distribution service that routes access traffic to multiple backend servers based on policies. Compared with shared load balancing, it delivers higher performance and richer features, providing load balancing services with isolated underlying resources. Kingsoft Cloud Dedicated Load Balancing supports public network, private network and combined public-private network service types; allows on-demand enabling of Layer 4 (TCP, UDP, TCP SSL) and Layer 7 (HTTP, HTTPS, QUIC) capabilities; supports integration with WAF, which can be enabled on demand to provide application-layer security protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Elastic IP ("EIP"): EIP provides independently purchasable public IP resources for user accounts, including IP addresses and bandwidth resources. Once resource bounded to EIP, user accounts can directly access the public network. Currently, Elastic IP supports binding to ECP, Bare Metal services, Shared Load Balancing, Dedicated Load Balancing, Container Instances, Secondary Network Interfaces, and High-Availability Virtual IPs. Elastic IP is a regional-level resource and can be bound to cloud resources within the same region.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Band Width Share ("BWS"): BWS enables sharing peak bandwidth across multiple EIPs, allowing centralized bandwidth throttling based on these EIPs and flexible adjustment of bandwidth. BWS consists of a public network bandwidth and a group of EIPs, all of which can share the same bandwidth, thereby increasing flexibility in bandwidth usage and reducing costs. Shared Bandwidth supports multiple billing modes, including fixed bandwidth pricing, peak bandwidth pricing, and traffic-based pricing. Multiple shared bandwidth instances can be created for various businesses, enabling flexible bandwidth adjustment and convenient management of Elastic IP addresses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Virtual Private Cloud ("VPC"): It enables users to build logically isolated, self-managed dedicated networks, allowing to deploy various Kingsoft Cloud services within customized virtual networks, including ECP, bare metal services, load balancing, cloud databases and other cloud resources. In addition, users can connect VPC with their on-premises data centers through dedicated lines, IPsec VPN and other connections to build hybrid cloud solutions and achieve smooth cloud migration. As a private network isolated based on VXLAN, it ensures mutual independence among multiple tenants. Network ACLs and security groups control network access at the subnet and server levels respectively, with fine-grained control down to protocols and ports, delivering multi-dimensional and comprehensive protection to meet customers' security requirements.Network Address Translation ("NAT"): NAT is a service that converts private IP addresses and public IP addresses within a Virtual Private Cloud ("VPC"), allowing cloud servers or cloud physical hosts without public IP addresses to access the Internet. Kingsoft Cloud NAT is suitable for scenarios requiring large bandwidth, high usage of public IPs, and multiple services for public access. If users wish to hide the public IP of hosts within the VPC to avoid exposing their network infrastructure while still accessing the public Internet, Kingsoft Cloud NAT fulfills this requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Peering: VPC Peering is a service used for cross-VPC network data synchronization, enabling network communication between two peered VPCs. It supports VPC interconnectivity in the same or across regions and accounts. By configuring routing on both ends, traffic can flow seamlessly between different VPCs. Peering Connection is built on Kingsoft Cloud's gateway clusters, featuring high performance and high availability.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Cloud Enterprise Network ("CEN"): CEN aims to provide customers with a high-quality, large-scale cloud-wide area network that offers enterprise-level communication capabilities. It supports multiple scenarios, such as VPC-to-VPC connectivity in the cloud and VPC-to-on-premises data center connectivity. By creating a CEN instance, users can add network instances that require interconnection (either user-created VPCs or boundary gateways for on-premises data center access) and configure routing. Users can also define bandwidth between connected regions, quickly building a dedicated WAN in the cloud.

*Cloud Databases*

We have a full stack database product portfolio, including relational databases and NoSQL databases, which are used to accommodate a wide variety of data models. We provide second-level failover capability, low latency cross-cloud synchronization, multi-region disaster recovery capability, and loss less data reliability support capability for important application scenarios such as financial services, internet, and public service. Our key cloud database products include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Relational Database Service ("KRDS"): KRDS is a stable, reliable,flexible and out-of-box online relational database. Through kernel-level and hardware-level optimizations, it delivers higher performance and stability compared with self-built databases. It is equipped with multiple security protection measures and a comprehensive performance monitoring system, while providing professional database backup, recovery and optimization functions, enabling enterprises to focus on application development and business growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Redis Cloud Database: Kingsoft Cloud Redis Cloud Database provides Online caching and key-value storage service. It supports both primary-replica and cluster architectures, and offers standard edition and self-developed cloud-native enterprise edition. In addition to basic product management features such as automatic disaster recovery switchover, instance monitoring, and online scaling, the cloud-native Enterprise Edition delivers superior performance and stability in large-scale deployment scenarios, along with more comprehensive and advanced capabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud MongoDB Cloud Database: Kingsoft Cloud MongoDB Cloud Database is a document-oriented database that is fully compatible with the MongoDB protocol. It supports various architectures such as replica sets, sharded clusters and multiple versions. With capabilities such as high availability, backup and recovery, comprehensive monitoring, and auxiliary operations, it offers customers an integrated MongoDB fully managed service solution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Vector Database Milvus: Kingsoft Cloud Vector Database Milvus is specifically designed to handle input vector queries, capable of processing indexes with billions of vectors. It finds wide applications in AI domains such as intelligent customer service, recommendation systems, NLP services and computer vision. It serves as an external knowledge base for large models, expanding the cognitive boundaries of such models.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Database Management Platform ("KDMP"): KDMP is a database management product that offers asset management for multiple types of databases and monitoring dashboards across multiple instances. It facilitates the usage and operation of databases for customers, reducing operational pressure and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Data Transmission Service ("KDTS"): KDTS is designed for data migration, synchronization and subscription among data sources. In addition to meeting common application scenarios such as non-stop data migration and synchronization, it also fulfills the requirements of business application scenarios such as database disaster recovery and data integration. KDTS currently supports various mainstream databases, including relational, non-relational and analytical databases.

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*Big Data*

● Kingsoft Cloud Managed Hadoop/MapReduce ("KMR"): KMR is a big data platform built on Kingsoft Cloud that provides functions for collecting, storing, processing, and presenting massive amounts of data. The KMR platform not only helps enterprises extract knowledge from big data but also supports business decision-making and data applications. Fully compatible with the open-source Hadoop/Spark community, KMR enhances the usability and stability of open-source components while offering managed operation, elastic management, and security control for big data platforms. This allows enterprises to focus on their business, improve efficiency, and reduce costs and timelines for infrastructure development.

● Kingsoft Cloud Managed Kafka: Managed Kafka is an important component of the KMR product suite and is a distributed, high-throughput, and highly scalable messaging system built on Kingsoft Cloud. The Kafka-based message queue is widely used in big data fields such as log collection, monitoring data aggregation, stream data processing, and both online and offline analytics, making it an indispensable part of the big data ecosystem.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud KMR Serverless Computing Engine: A fully managed serverless product designed specifically for processing large-scale data and executing complex computing tasks. It integrates three popular computing frameworks including Apache Spark, Apache Flink, and Ray, delivering an out-of-the-box, highly elastic, high-performance computing solution that eliminates the need to manage underlying servers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· KMR Serverless StarRocks: A fully managed, high-performance analytical data warehouse featuring a decoupled storage-compute architecture. Users do not need to manage physical resources, only compute and storage. The product is fully compatible with open-source StarRocks and supports cluster creation, scaling, resizing, elastic expansion, configuration management, public network access, monitoring, and performance analysis, simplifying O&M and improving flexibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Elasticsearch Service (KES): KES provides fully managed and performance-optimized open-source Elasticsearch, with out-of-the-box usability, elastic scaling, and a hot-cold architecture, significantly reducing operational complexity. It integrates X-Pack security and VPC isolation to ensure data security, and supports automatic snapshot backup to object storage (KS3) for high reliability. It also provides vector search capabilities to meet diverse search and analytics scenarios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Log Service ("KLog"): KLog is a comprehensive solution for managing log data. It offers a range of services including log collection, storage, processing, retrieval analysis, real-time consumption, data delivery, alerting and visualization, which enhance operational and maintenance efficiency. Users can seamlessly access the service within five minutes without concerns about resource scaling issues, enjoying stable, reliable, and intelligent log management services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Data Warehouse ClickHouse ("ClickHouse"): ClickHouse is a distributed column-oriented database designed for online analytical processing queries. It enables flexible and fast creation of clusters of various specifications in the cloud and provides comprehensive auxiliary operation and maintenance functions, effectively simplifying the workload of deployment and maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Kingsoft Cloud Relyt ("Relyt"): Relyt is a cost-effective, native and intelligent data cloud service that is accessible to everyone. Built on the latest generation of cloud computing technologies and leveraging breakthrough data processing architectures, Relyt delivers outstanding data warehouse query capabilities, significantly enhancing cost-effectiveness, availability and user experience.

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*StarFlow ("Xingliu") Platform*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· XingLiu Training & Inference Platform: The Training and Inference Platform provides cloud-native AI computing power and full-process management capabilities for developers and operators in machine learning scenarios. It consists of modules including basic resource management, computing power management tools, training and inference task management, and asset and permission management. Core features include GPU fault self-healing, task observability, and task orchestration and scheduling. It aims to provide users with a one-stop platform for training and inference task management, ensuring stable and efficient task execution and improving computing resource utilization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· XingLiu Model API Service: The Model API Service targets large language model application developers and enterprise users, providing highly available and easily integrable model invocation and management capabilities covering the full lifecycle of model usage. The platform features flexible access control and monitoring, supports high-concurrency inference and multi-model management, and helps users efficiently access various model resources. It is designed to provide developers with a one-stop model invocation and management platform, simplifying integration, improving efficiency, and accelerating the deployment of large language model applications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· XingLiu Agent Service: The Agent Service is a full-lifecycle development and runtime platform built to lower the barriers to Agent development, offering a fast, elastic, and highly available serverless computing and execution environment for intelligent agents. Throughout the entire development and deployment pipeline, it natively supports mainstream frameworks such as LangGraph and LangChain. Developers can easily initialize Agent projects, perform local or online debugging, package code, and deploy to the cloud with one click using the dedicated CLI tool.At the core component level, the platform deeply integrates a rich application ecosystem for Agents, including: A controlled isolation sandbox for secure code and tool execution; MCP tools and a Skill center for flexibly expanding large model capabilities; An enterprise-grade knowledge base (RAG foundation) to reduce model hallucinations; A long-term memory base enabling continuous cognition and consistent personalized interaction. In addition, it provides end-to-end full-link observability tracing and systematic intelligent quantitative evaluation mechanisms to comprehensively ensure the effectiveness, performance, and security of enterprise-grade Agents in real business scenarios.

*Cloud Security*

We provide users with a full range of high-quality cloud security products to effectively address cloud service abuse issues and provide users with secure, stable and reliable cloud services. Our key cloud security products include:

● Kingsoft Cloud Advanced Defense ("KAD"): KAD is a managed Distributed Denial of Service (DDoS) protection service that safeguards our users' applications running on our cloud from attack. KAD provides T-level DDoS protection for both cloud-based and on-premises user businesses. Leveraging our KAD, users can defend against large-scale DDoS attacks in the cloud by cleansing and mitigating the attack traffic. Through advanced protection algorithms, malicious attack traffic is intercepted, while legitimate traffic is forwarded back to the source, ensuring high interception rates and safeguarding business stability and continuity.

● Kingsoft Cloud Native Advanced Defense ("KNAD"): KNAD is a product designed to provide DDoS protection capabilities for businesses deployed within Kingsoft Cloud. By binding cloud-based IPs, it can offer protection capabilities, eliminating the need for changing business IPs and tedious onboarding processes. It features real-time defense, low latency, and high reliability.

● Kingsoft Cloud Web Application Firewall ("WAF"): WAF is a firewall for web applications, ensuring security and reliability of users' websites. Users can seamlessly deploy WAF without altering any system structure. WAF is a security product designed to help users address web attacks, business access risks, vulnerability exploitation and backdoor intrusions. With simple configuration, users can obtain web application attack protection capabilities within minutes, preventing malicious intrusion into website servers and ensuring the secure operation of customer websites and web services.

● Kingsoft Cloud Model Application Firewall ("MAF"): MAF is a security protection SaaS service tailored for foundation model training and inference scenarios. Targeting prevalent risks in model application, including model abuse, non-compliant content generation and sensitive data leakage, MAF delivers comprehensive security capabilities such as prompt injection prevention, content compliance detection, sensitive data desensitization, as well as audit and traceability, building a robust security barrier for large model training and inference services both on and off the cloud.

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*Cloud Delivery*

Our cloud delivery products have evolved from a simple acceleration tool for one-way static content to a complex application and streaming delivery carrier, enabling our customers to deliver an interactive and immersive user experience. Our comprehensive end-to-end cloud delivery solutions allow users to build their applications on our cloud platform and utilize additional value-added services offered by us, such as large-scale storage, streaming encode and decode, and high definition video solutions, to further enhance their business operations. Our large-scale, high-concurrency, low-latency, secure and reliable cloud delivery services help our users enhance their users' experience.

With 5G deployment and advancement of edge computing, we continue to upgrade our cloud delivery network with more connected nodes and reiterate the advantages of our cloud delivery products. Streaming content represents a significant portion of the internet traffic, and is a major application scenario of our cloud delivery products. Streaming content captures a large share of users' time spent as it becomes the key distribution medium for various industry verticals, such as entertainment, e-commerce, education, traveling and advertising. Leveraging the relationship we built with our clients through our cloud delivery products, we have the natural advantage to cross-sell other cloud products, such as computing, storage and database products, to explore additional monetization opportunities.

● Kingsoft Cloud Live-video Service ("KLS"): KLS is a network system based on Kingsoft Cloud's comprehensive IaaS infrastructure. Through industry-leading video-encoding technology and powerful distribution capacities, KLS provides low-latency, high-concurrency, and stable live streaming services. KLS supports live streaming upload and download acceleration, as well as real-time transcoding, recording, watermarking, screenshots, second-level streams status management, delayed playback and many other value-added functions and applications. Meanwhile, KLS can be seamlessly integrated with the PaaS platform of Kingsoft Cloud Video Cloud, and it features fast access, multi-terminal adaptation, multi-protocol support, and easy-to-use.

● Kingsoft Cloud Media Transcoder is a distributed system for multi-media processing service. Based on the deep learning of massive multimedia data, Kingsoft Cloud Media Transcoder establishes a scientific video quality evaluation system, combined with powerful encoding/decoding technology, to provide fast, intelligent and stable media processing service.

● Kingsoft Cloud Edge Computing Network ("KECN"): KECN is a distributed edge computing network that supports edge computing scenarios such as edge bandwidth, AI inference, image rendering, gaming and IoT. We have established an end node network covering most regions and operators in China and ensuring high-speed and low-latency for customers.

● Kingsoft Cloud Delivery Network ("KCDN"): KCDN is a distributed network consisting of server clusters of edge nodes covering different regions, which distributes user content to edge nodes, effectively resolves the congestion of an internet network, and improves the response speed of users to visit the websites and the availability of the websites.

● Kingsoft Cloud Image Enhancement ("KIE"): KIE is an intelligent image enhancement product, which is able to recover and enhance image details by deep learning algorithms. It can also enhance resolution and output high-quality images.

● Kingsoft Cloud Smart High Definition ("KSHD"): KSHD integrates various computer vision and video coding technologies to substantially improve the quality of experience. It uses deep-learning-based denoise and enhance algorithms to reduce compression artifacts as well as enhance details. Meanwhile, KSHD is capable of analyzing video by way of classification and quality assessment, so as to improve the coding efficiency of video code.

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*Galaxy Stack*

Our proprietary Galaxy Stack essentially allows customers to deploy a public cloud architecture within their internal IT infrastructure, so that they can have the same experience as public cloud services within their IT premise, while fulfilling regulatory compliance and retaining control. Galaxy Stack employs a distributed architecture to create an open, unified and reliable cloud environment for enterprises and organizations. As a result of our continuous upgrading and optimization efforts, Galaxy Stack features comprehensive IaaS, PaaS, security, maintenance products and services, as well as the self-developed training and inference platform and model services to provide more professional, scalable and mature one-stop cloud solutions.

The key value we bring includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Scalability at large scale: Galaxy Stack enables large-scale physical node deployment, massive tenant management and customer service capabilities, which strongly support customers' massive business operations. Customers can easily adjust the physical node deployment based on their real-time demands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· One-Stop AI Platform Capabilities: Providing full lifecycle management covering model development, training, inference and resource monitoring, with seamless integration of underlying resource scheduling, computing power optimization, task orchestration and permission control across the entire chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Security: Privatized deployment meets the requirements of enterprises and organizations for high-grade information security protection, data security and business continuity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Autonomous control: Galaxy Stack supports customers' autonomous control operation and maintenance.

We have been dedicated to upgrading our Galaxy Stack product, including introducing new features in training and inference platform, inference framework, and model serving of the AI platform, we continuously enhance product capabilities to deliver high-quality intelligent computing services in terms of performance, cost-effectiveness and stability, to meet customers' evolving needs.

#### Industry-Specific Solutions
We have designed various industry-specific solutions that can unleash the full potential of our infrastructure resources and add value to our customers. Leveraging our profound industry insights, we have strategically expanded our footprints into selected verticals as an early mover and have established a leading market position through relentless execution. As we continuously serve vertical leaders, our products and solutions continue to iterate and pivot based on customers' feedback. By partnering with vertical leaders, we have accumulated proprietary industry know-how and formed in-depth view of each selected vertical, which enables us to stay forefront of industry-specific cloud solutions. We have designed industry- specific solutions covering a wide spectrum of industry verticals, including AIGC, pan-Internet, video, public service, healthcare, intelligent mobility and financial service, among others.

*AIGC Solutions*

We offer a range of products, including bare metal computing servers, computing cloud servers, KS3 and AI platforms, to meet the strong computational and storage needs of clients in AI industry for model training and inference. Leveraging abundant IDC resources and hybrid cloud networking experience, we design high-availability and cost-effective underlying architecture solutions for the application deployment of our clients, effectively reducing operational costs and improving business productivity.

To address the entire AIGC development process, including data acquisition, data preprocessing, model training and model inference, we provide different delivery forms of computing, including computing cloud instances and bare metal computing servers. Clients can utilize elastic computing cloud instances for rapid model validation and flexible online scaling of inference services. For large-scale model training, we provide hundreds of bare metal computing servers along with high-performance IB or RoCE networks, combined with all-flash high-performance object storage and file storage, to provide clients with top-notch computational environments.

Furthermore, through Spark or MapReduce distributed computing frameworks, efficient data preprocessing services can be completed quickly and efficiently. Leveraging elastic resources in the cloud reduces fixed asset expenses during the preprocessing process while ensuring speed and efficiency.

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The key value we bring includes:

● Delivery Capability: We provide AIGC delivery capabilities at different levels, covering underlying IaaS resources, middleware training frameworks, and application-level model and industry application delivery capabilities. This meets the diverse needs of customers at various levels, including data acquisition, cleansing, training, inference, and industry applications.

● Trusted Collaboration Zone: The AIGC industry chain typically involves collaboration among different vendors, including data providers, model training vendors, and end-users. Therefore, controlled interoperability of data and final models among these stakeholders is essential. We provide Trusted Collaboration Zone services to establish a trusted environment for collaboration among different vendors.

● Ready-to-Use: Users do not need to procure and build the entire AIGC infrastructure environment from scratch. They can simply select the corresponding hardware configuration from our console based on different scenarios and computational requirements, and the accompanying high-performance networking and storage are ready to use. The service supports pay-as-you-go billing, and resources can be quickly released after tasks are completed.

● Elastic Scalability: AIGC exhibits significant variations in resource requirements across different business cycles, manifested in two dimensions. Firstly, different stages of AIGC have distinct resource demands. For example, the data cleansing stage typically requires massive computing resources, while the application of the final model requires a large number of computing resources. Secondly, there may be hotspots in inference applications, requiring the ability to supply a large number of resources in a short time. Our Elastic Scaling service, combined with backend pooled cloud servers, can achieve elastic resource scaling in minutes.

*Dedicated Cloud Solutions*

Dedicated Cloud is a cloud computing service model based on dedicated physical devices, providing customers with a fully physically isolated block storage cluster to achieve end-to-end exclusive deployment of computing and storage resources. This solution delivers hardware resources exclusively to a single customer, ensuring zero resource sharing, while also incorporating the elastic scalability of the cloud to meet the enterprise's core requirements for data sovereignty, high performance, and strong security compliance.

Dedicated Cloud is particularly suited for core business systems in industries such as finance, government, healthcare, and high- end manufacturing. It can support business scenarios with high demands for resource exclusivity and stability, such as ERP, core databases, and big data analysis platforms, providing a cloud infrastructure that combines the security of private clouds with the agility of public clouds.

By deeply integrating the mature high-availability architecture of public cloud with the physical isolation characteristics of Dedicated Cloud, while also maintaining "controllability" and "cloud capability," this solution achieves the best of both worlds.

The core advantages include:

● Physical-Level Security Isolation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Physical Isolation: dedicated cloud provides independent storage resource pools through physical isolation, ensuring that user services and data are completely segregated from other users.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Compliance Support: Meets stringent requirements for data security and compliance, ensuring that businesses in sectors such as finance and healthcare comply with relevant regulatory standards.

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● Flexible Resource Autonomy and Control

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Self-Management: Users have full management rights over storage resources, allowing them to flexibly allocate, adjust, and optimize storage capacity and performance based on their needs, without relying on cloud service providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Customizable Configuration: Supports customization of computing (e.g., number of cores, memory) and storage performance parameters (e.g., IOPS, throughput) based on business requirements, catering to personalized needs in different application scenarios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Granular Access Control: Provides fine-grained access control, enabling users to configure access policies based on business needs, ensuring that only authorized personnel can access sensitive data.

● Full Lifecycle Operational Support

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o While enjoying exclusive physical resources, users can still leverage capabilities such as multi-active disaster recovery and cross-cluster backup, consistent with public cloud, to ensure critical business systems meet rigorous reliability and availability requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Seamless Integration with Public Cloud Ecosystem: Supports direct integration with global load balancing, cloud monitoring, and automation operations tools from public cloud, ensuring the operational experience and API compatibility are identical across dedicated cloud and public cloud, reducing hybrid cloud management complexity.

The scenario value includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Zero Transformation for Business Systems: Traditional systems can be migrated to dedicated cloud without reengineering, gaining the elasticity of cloud computing

● Acceleration for Data-Intensive Applications: Provides stable, high-performance computing power for AI training, real-time risk control, genetic sequencing, and other scenarios.

● Compliance-Driven Industries: Meets strict regulatory requirements such as "same-city dual-active + offsite disaster recovery" for the financial sector and "one department, one cluster" for government cloud.

*Video Cloud Solutions*

We started to offer video cloud solutions in 2016, prior to the explosive growth of the video industry in China. Our full stack video cloud solutions offer various state-of-the-art deep learning algorithms, including cloud trans-coding, image enhancement, smart high definition, dark image enhancement. Our holistic intelligent video cloud solutions serve both on-demand video and live streaming companies, offering a high-capacity and elastic cloud delivery network built on our industry-leading containerized edge computing platform. To meet the large-scale and high-quality cloud delivery requirements of these companies, our video cloud solutions combine core technologies such as intelligent video processing algorithms and multi-link optimization to provide enhanced cloud delivery services beyond traditional content delivery services. For on-demand videos, we offer video upload, distributed encoding, media resource management and on-demand delivery. For live streaming, we offer delivery acceleration, real-time encoding, live recording and storage. Our video cloud solutions can be accessed through a management system or API/SDK.

The key value we bring includes:

● High Speed: Our video cloud solutions provide a quick and uninterrupted video streaming, archiving experience and lossless transmission.

● Stability: Our video cloud solutions offer high stability and ensure performance. The distributed network eliminates incidents and disruptions, which can effectively lower packet loss rate.

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● Security: Our video cloud solutions are able to maximize data security by configuring authentication settings for content.

● High Definition: Our video cloud solutions provide optimized encoding and decoding solutions that allow 4K-8K ultra high-definition video transmission through the internet.

● Elastic Expansion: Our video cloud solutions provide deep integration with public clouds, offering agility and flexibility to allocate resources on demand and respond promptly to business changes.

● Cost Reduction: Our video cloud solutions offer fine management of cloud resources and optimization of IDC costs, significantly reducing costs.

*Public Service Cloud Solution*

Our public service cloud solutions are based on the public cloud architecture and can be easily and quickly deployed. These cloud solutions help public service organizations enhance productivity and efficiency.

The key value we bring includes:

● Digitalization: Public service organizations are able to connect data across multiple departments, improve work efficiency, enhance security, and transform data resources into data assets, which ultimately realize digital transformation.

● Reliability: The cloud platform adopts high-availability technology and security protection system, which can guarantee the stable and uninterrupted operation of the platform.

● Comprehensiveness: Based on the public cloud technologies, we can provide a series of services from the construction, operation and management of underlying cloud data center, big data management, big data analytics, etc., which meets the public service organizations' requirements for critical aspects of cloud platform product functions.

● Intelligence: Based on the public service cloud, we provide AI-powered services for specific industries and fields, helping organizations enhance production efficiency and achieve higher levels of business intelligence.

*Digital Healthcare Solutions and Services*

Our digital healthcare solutions and services provide high-performance, reliable, secure resources and technologies, and a full portfolio of applications and services for the healthcare industry. We provide cloud services covering hospital operations, medical supervision, medical insurance payment, medical treatment and eldercare relying on our top-level cloud resources, abundant cloud products and excellent cloud service. It features big data analysis service for administrators, health management service for residents, cloud infrastructure for large and medium medical institutions and cloud application service for small and medium medical institutions.

Our digital healthcare solutions and services feature platformization, integration and digital intelligence, integrating five major business segments, including regional health cloud, medical imaging cloud, regional core business cloud, medical community platform and intelligent hospitals. We have successfully deployed flagship projects for leading institutions.

● Regional Healthcare Cloud: Targeting regional medical and healthcare businesses at the provincial and municipal levels, employing cloud computing, big data, artificial intelligence, middleware architecture, blockchain, and other emerging technologies to empower both technical and business aspects of regional medical and healthcare applications. The initiative aims to construct a cloud-based, data- aggregated, comprehensively governed, and business-interconnected medical and healthcare big data center. It aligns with the General Medical Information System (GMIS) to enable the integration and coordination across healthcare infrastructures.

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The key value we bring includes (i) achieving near-real-time data aggregation into the data lake, establishing a comprehensive healthcare big data center covering the entire region; (ii) reconstructing regional business applications with a comprehensive middleware architecture, standardizing and sharing applications from dimensions such as architectural specifications, technical standards, data standards, and business capability sharing, thereby achieving intensive and efficient business application management. (ⅲ) Enhance the comprehensive decision-making and analytical capabilities of healthcare administration departments through data and AI-powered intelligent applications.

● Medical Imaging Cloud: Targeting regional healthcare administrative departments, we adopt an integrated "construction, management, and operation" model to build a regional imaging cloud that unifies platforms, innovates services, and aggregates ecosystems. Through the regional imaging cloud, regional medical resources can be effectively integrated to achieve regional imaging synergy and mutual recognition of results, thereby promoting hierarchical diagnosis and treatment, facilitating the sharing of medical imaging data, and deeply unlocking the core value of medical imaging data.

● Regional Core Business Cloud: We propose the concept of coordinated high-quality development of regions and medical institutions for regional public hospitals, constructing a SaaS-based regional medical core business platform. This platform employs a multi-tenant architecture to enable multiple hospitals to share the platform without affecting each other. Through regional coordination of data platforms, it achieves the unity of hospital data centers and regional data centers, ensuring that all medical institutions in the region obtain high-quality, digital-intelligent integrated business systems, thereby facilitating hospitals and regions to jointly achieve various high-level certifications.

● Medical Community Platform: For closely-knit county-level medical community businesses, leveraging emerging technologies such as cloud, big data, IoT, and AI, constructing a medical community information platform with a middleware architecture, providing integrated solutions for comprehensive data management and decision-making, intelligent primary medical services, collaborative services for regional medical institutions, smart medical services, convenient and beneficial health services, unified management of personnel, finance, and materials, as well as operational supervision.

● Intelligent Hospitals: Targeting large hospitals and medical research institutions, we provide end-to-end digital and intelligent transformation solutions ranging from underlying infrastructure to upper-level core applications. Relying on our profound industry understanding and robust cloud, data, and AI technologies, we comprehensively reshape hospital business workflows, focusing on building three core capabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Cloud-based Architecture Transformation: Digitally redesigning hospital information systems with a focus on architecture reconstruction. We comprehensively drive the evolution of hospital business systems towards microservices and containerization, achieving the decoupling and agile iteration of underlying systems. This significantly enhances the systems' high-concurrency processing capabilities and business continuity, laying an extremely stable and secure cloud architecture foundation for the hospital's digital-intelligent transformation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Integrated Data Center Solution: Expanding data assets and capabilities via middle platform architecture, artificial intelligence and lake-house technologies to build a hospital-wide, multi-modal data asset management platform that breaks down information silos across departments. It enables the global aggregation and governance of core assets such as patient diagnosis and treatment records, pathology, imaging, biological samples, and operational data. This comprehensively supports the transformation of the hospital's data architecture, allowing data to truly unleash its value in clinical research and management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o AI Solutions for Hospitals: Based on a one-stop Model-as-a-Service (MaaS) platform, we provide end-to-end capabilities covering AI-native infrastructure, model management, data platforms, and application development to comprehensively optimize diagnosis, treatment, and operational efficiency:

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| ◾ | AI-as-a-Service Model Production: Based on a dedicated model production platform (KAX), we enable full-lifecycle management of large models, including incremental training, fine-tuning, prompt engineering, and automated deployment. It is fully compatible with diverse foundational models and open-source large model ecosystems. |

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| ◾ | Smart Office and Clinical Assistants: Deeply integrating core AI assistants like WPS AI to provide robust medical document understanding and generation capabilities. This vastly improves the efficiency of intelligent electronic medical record drafting, medical record summarization, clinical logical reasoning, and automated documentation processes. |

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| ◾ | Smart Operation Management Assistants: Building an "Intelligent Data Query Agent" based on healthcare business ontology models to break the limitations of traditional, rigid dashboards. Hospital administrators can use natural language interactions to instantly and accurately retrieve and analyze various complex operational metrics, such as human resources, finances, materials, and performance. Achieving a "what you ask is what you get" experience, it deeply empowers refined operation management and digital-intelligent scientific decision-making in hospitals. |

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*Financial Service Cloud Solutions*

We have pioneered the private deployment of public cloud technologies, which could effectively address the pain points faced by financial institutions amid the regulatory requirements and digital transformation, and allow them to unleash the value of data assets. For example, our Data Lakehouse platform has been successfully deployed for a large state-owned bank in China. Furthermore, we, through Camelot, offer comprehensive and digitalized solutions such as teller or branch systems, anti-money laundering and fraud prevention software services to the financial services industry. The key value we bring includes:

● Digital transformation: Our customized financial service architecture solutions, by providing high-performance cloud computing service at lower costs, enable financial institutions to achieve digital transformation and migrate to cloud.

● Cloud native benefits: Our financial service cloud native solutions enable financial institutions to enjoy various benefits brought by cloud technologies, including high security, reliability, availability and flexibility.

● Business innovation: Our intelligent financial service solutions equip financial institutions with big data analytics capabilities, enabling them to easily and efficiently realize business innovations.

*Other Solutions*

Our cloud solutions also cover various other industries, such as game, e-commerce, office automation and mobile internet in general, among others.

#### Our Infrastructure and Technologies
We are dedicated to providing customers with secure and compliant cloud services and our industry-leading cloud infrastructure and technologies have been the key to our success.

#### Infrastructure
Our distributed infrastructure is the foundation of our technology. As of December 31, 2025, we owned two data centers and approximately 101,500 servers primarily throughout China, and achieved exabyte-level storage capacity. We have been investing significantly in our infrastructure to upgrade our computing power and storage capabilities, in order to deliver higher-quality cloud service and enhance the economies of scale. We purchase and lease servers, network equipment, network resources and data centers from industry-leading suppliers to ensure the reliability and availability of our network infrastructure. Our suppliers primarily include IDC operators, telecommunication operators and server providers in China.

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#### Cloud Technologies
We create and apply cutting-edge technologies to drive our development of products and solutions. Our core technologies include:

*Cloud Native*

We provide various computing delivery models, including container clusters, serverless container instances, and cloud functions. Our solutions support managed image repositories, Prometheus monitoring systems, service meshes, and other key ecosystem components, offering customers scalable and flexible cloud-native infrastructure.

*Virtualization*

We have built a complete virtualization technology stack. Technologies like x86/ARM CPU virtualization, memory virtualization, high-performance storage and network virtualization, GPU (graphics processing unit) virtualization, with critical features such as smooth live migration and live patching, are all well supported and applied to our cloud products. Additionally, the introduction of new hardware, such as smart NICs offloads storage and network I/O, further reduces latency and provides excellent support and user experience for our cloud products.

*Software Defined Network*

Our virtualized network architecture, designed on the basis of disaster recovery multi-region construction, supports multi-tenant networks. With petabit-per-second-scale distributed east-west forwarding capabilities and terabit-per-second-scale north-south traffic capabilities, the cloud network provides high-performance interconnect services for computing, storage and various PaaS services. By combining software and hardware technologies and introducing new hardware such as programmable switches and smart network interface cards (NICs), we continuously improve the performance of the underlying network. Additionally, based on network function virtualization and leveraging industry ecosystems, we provide users with richer product functionalities and interconnection experiences.

*Distributed Storage*

We have developed different storage technologies for various application scenarios, including object storage, table storage, elastic block storage, and file storage, providing high-performance storage services with reliability, scalability and availability.

*Cloud Delivery*

We have developed a comprehensive set of cloud delivery systems, including caching system, OTCP (optimized transmission control protocol) stack, user datagram protocol-based transport stack, traffic scheduling system, high-performance domain name system, near-real-time performance analysis system and IPV 4 (internet protocol version 4) and IPV 6 (internet protocol version 6) dual-stack network system.

*Data Lake and Data Analytics*

Our data lake technology enables the storage, management, and analysis of massive volumes of structured and unstructured data, offering customers a simple, cost-effective, and maintenance-free big data computing platform. Such technology allows businesses to gain insights from their data, facilitating more informed decision-making.

#### Research and Development
Our vision and focus on innovation have fueled our growth and enabled us to deliver our products and services. We allocate a substantial portion of our operating expenses to research and development, including upgrading our infrastructure, improving our cloud technology and developing new products and solutions. We incurred RMB784.8 million, RMB846.0 million and RMB810.3 million (US$115.9 million) of research and development expenses in 2023, 2024 and 2025, respectively.

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Our leadership in technology is built by our highly innovative and dedicated research and development staff. We focus on building and maintaining a large pool of talented researchers to drive our research and development efforts. We provide rigorous training to new recruits to familiarize them with our platform and thereby closely integrate them into our research and development staff. Since 2023, we have been building our Beijing-Wuhan dual Research and Development Center. We had a team of approximately 1,120 engineers, researchers, programmers and computer and data scientists as of December 31, 2025. We encourage different points of view to lead us to find inspiration and improve our products and solutions.

The development of our cloud products and solutions is underpinned by our strong R&D capabilities. Our continuous investments in research and development activities result in a wealth of intellectual properties. As of the date of this annual report, we have registered 1,528 patents, 716 trademarks, 910 copyrights, and 135 domain names in China and overseas.

In addition, we aim to increase our research and development efforts to strengthen our technology capabilities and continue to invest in cutting-edge technologies such as AI, edge computing, container and data lake. We also aim to further expand our talent pool of top-notch engineering specialists as well as industry vertical experts.

#### Data Privacy and Security
Data security and privacy are our highest priority. To this end, we constantly enhance our data system resilience, protect user privacy, and show transparency on how we manage it. We aim to deliver high-quality cloud services with careful data and information protection, and we are in relentless pursuit of security-driven innovations to provide effective solutions. We value transparency in our data management practices and have issued the Privacy Policy, the Kingsoft Cloud Security White Paper, and the Cookies Policy on our official website to clarify the way we collect, store, use, share and delete personal information in relation to Kingsoft Cloud products, services, websites, and other application scenarios. We have designed strict data protection policies to ensure that the collection, consolidation, use, storage, transmission and dissemination of such data are in compliance with applicable laws and with prevalent industry practice in all material respects. We also established a Security and Privacy Committee, comprised of members from various departments, including data security, privacy compliance, internal control and audit, and supervision, to ensure compliance with applicable laws and regulations in all material respects and to ensure that we meet the expectations of our customers.

We have established a robust information system in compliance with applicable data security requirements in all material respects. Our information system applies safeguards, including double-firewalls, antivirus walls and web application firewalls. We encrypt data to enhance data security. Our database can only be accessed through computers designated for authorized use. Only authorized staff can access these computers for designated purposes. We also have clear and strict authorization and authentication procedures and policies in place. Our employees only have access to data which is directly relevant and necessary for their job responsibilities and for limited purposes and are required to verify authorization upon every access attempt.

We regularly assess the effectiveness of our information system and data privacy and security policies. We closely monitor regulatory developments to ensure compliance. For example, in 2021, we conducted a full identification and review of relevant regulations and made amendments to our current data security documents based on the most recent released Data Security Law of the People's Republic of China after looking into every detailed item within, so as to keep our data security management abreast with the latest regulations and policies. We also actively participate in legislative feedback activities, such as the "Corporate Seminar of Standard Contract Provisions on Personal Information Exportation" to provide our insights and keep us abreast with the most recent regulatory requirements. To promote awareness of data privacy and security, we regularly hold and participate in data security and privacy protection conferences, industry insight sharing and regulatory communication meetings.

We have completed various information security, privacy and compliance certifications/validations, proving the security and reliability of our data protection technologies. For example, we have obtained ISO 9001 for Quality Management System, ISO 20000-1 for Service Management System, ISO 27001 for Information Security Management, ISO 22301 for Business Continuity Management Systems, ISO 27018 for Protection of Personally Identifiable Information for Public Cloud and ISO 27017 for Cloud Security Management System. Our in-house legal and data protection team has also been awarded as Winner in cloud services, and Highly-recommended in data protection and privacy in the 2021 In-house Counsel Awards by China Business Law Journal.

As of the date of this annual report, we have not received any claim from any third party against us on the ground of infringement of such party's right to data protection as provided by applicable PRC laws and regulations or any applicable laws and regulations in other jurisdictions, and we have not been subject to any government investigation, enquiry, action or penalty in such respects, or experienced any material data loss or breach incidents.

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#### Sales and Marketing
To promote our cloud products and solutions, we mainly directly reach out to our customers and in certain cases we cooperate with third-party agents. Direct sales supported by our experienced industry-focused team is our primary sales approach. To promote our cloud products and solutions, particularly when we enter into a new vertical, we intend to cooperate with industry leaders to complete lighthouse projects to demonstrate our technological capabilities and the advantages of our cloud products and solutions. We then leverage such lighthouse projects to market our products and solutions for other customers in the vertical. We seek to generate recurring revenues through after-sale services and cross-sell new solutions after we gain insights into customer needs.

We have established a professional and industry-focused in-house sales team. Our employees have deep knowledge of the industries and customers that they are responsible for. Our in-house sales team works closely with our engineering team to ensure that they can propose and integrate the most suitable solutions to address the pain points faced by participants in the relevant industry verticals.

On the other hand, our in-house sales department works closely with the sales partners and leverages their understanding of end user demands, thereby developing tailored marketing strategies.

To encourage and incentivize our in-house sales team, we have designed a compensation structure that includes both fixed and performance-based components. We set specific performance targets for each team member. We evaluate such employee's performance every year and pay out performance-based compensation accordingly.

In addition, we have a marketing team responsible for increasing the awareness of our brand, promoting our new and existing products and services, maintaining our relationships with business partners and managing public relations.

#### Intellectual Property

As of the date of this annual report, we have registered 1,528 patents, 716 trademarks, 910 copyrights, and 135 domain names in China and overseas. We have obtained the license from Kingsoft to use its "金山云" and "Kingsoft Cloud" trademarks. We have also obtained the license from Kingsoft Group to use some of its registered patents during their terms of registration. We intend to vigorously protect our technology and proprietary rights, but there can be no assurance that our efforts will be successful. Even if our efforts are successful, we may incur significant costs in defending our rights. See "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—We could incur substantial costs in protecting or defending our intellectual property rights, and any failure to protect our intellectual property could adversely affect our business, results of operations and financial condition."

Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy or otherwise obtain and use our technology. Monitoring unauthorized use of our technology is difficult and costly, and we cannot be certain that the steps we have taken will prevent misappropriation of our technology. From time to time, we may have to resort to litigation to enforce our intellectual property rights, which could result in substantial costs and diversion of our resources. In addition, third parties may initiate litigation against us alleging infringement of their proprietary rights or declaring their non-infringement of our intellectual property rights. In the event of a successful claim of infringement and our failure or inability to develop non-infringing technology or license the infringed or similar technology on a timely basis, our business could be harmed. Even if we are able to license the infringed or similar technology, license fees could be substantial and may adversely affect our results of operations.

As of the date of this annual report, we did not have any material disputes or any other pending legal proceedings of intellectual property rights with third parties.

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#### Insurance
Our employee-related insurance consists of pension insurance, maternity insurance, unemployment insurance, work-related injury insurance and medical insurance, as required by PRC laws and regulations. We also purchase supplemental commercial medical insurance for our employees.

In line with general market practice, we do not maintain any business interruption insurance or product liability insurance, which are not mandatory under PRC laws. We do not maintain key-man life insurance, insurance policies covering damages to our network infrastructures or information technology systems. We have property insurance policies covering some of our facilities.

**Our Environmental, Social and Governance (ESG) Efforts**

We believe that strong ESG management is essential to the sustainability of our business. In addition to developing advanced cloud technologies, we aim to build and deliver more enabling products and services to all stakeholders.

In April 2026, we published our ESG report for 2025. The ESG report mainly includes topics of privacy and data security, customer service, technology innovation, talent attraction, development and training, business ethics and anti-corruption, and intellectual rights protection and others.

***Corporate Governance***

Kingsoft Cloud strictly complies with laws, regulations, and the code of business ethics, and continuously refine its governance and risk control compliance systems. The Company has formulated the "CLOUD" sustainable development strategy - Corporate Governance, Labor Cultivating, Operational Excellence, Unified Eco-Creation, and Digital Innovation, and actively responds to the expectations of stakeholders. Adhering to the laws and regulations of the jurisdictions where it operates, the Company upholds its commitment to integrity and ethical principles, working with partners to foster a fair, trustworthy, and transparent business ecosystem.

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***ESG-related Risks and Opportunities***

By referencing Sustainable Development Goals (SDGs), exchange requirements, investor concerns, domestic and international policies, and aligning with our corporate strategy, we have identified 18 key ESG issues. Through systematic research and analysis, we gauged internal and external stakeholders' levels of concern for each ESG issue. Using dual dimensions of "materiality to Kingsoft Cloud" and "materiality to stakeholders", we prioritized these key ESG issues. This year's assessment yielded 10 highly material issues and 8 generally material issues, as shown in our materiality matrix as follows:

![Graphic](kc-20251231x20f011.jpg)

***Labor Cultivating***

We respects and safeguards our employees' legitimate rights and interests, fosters a diverse, inclusive, healthy, and safe workplace, maintains open communication channels, and demonstrates its commitment to a human-centric corporate culture. We establish a fair, transparent, and competitive compensation and benefits system, and continuously optimize career advancement and talent development mechanisms to enable mutual growth for both employees and the Company.

***Operational Excellence***

We are committed to upholding the core value of "customer first, and differentiation through excellence in technology and innovation", continuously enhancing the quality of our products and services. We create a secure, stable and reliable cloud service system, comprehensively empowering customers with efficient operations. Meanwhile, we enhance the supplier lifecycle management mechanism, practice responsible procurement principles, and drive sustainable business growth.

***Unified Eco-Creation***

We actively responds to the "Dual Carbon" goals, focusing on low-carbon transformation and climate change adaptation by deeply integrating green principles into the operations of data centers and daily office operations. At the same time, leveraging its technological strengths, the Company deepens its social responsibility practices, empowering critical sectors such as healthcare and public services with advanced technology, and collaborating with stakeholders to jointly build sustainable social well-being.

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***Digital Innovation***

We harnesses digital innovation as its core engine, building a tiered technical talent pipeline, strengthening the foundation of its technological culture, and advancing the upgrading and application deployment of the Starflow Platform. We optimize information security and privacy protection management system to enhance risk prevention and control capabilities. Furthermore, we establish a full-process intellectual property protection mechanism, fully respect innovation achievements, and continuously stimulate the intrinsic vitality of technological innovation.

**Licenses and Permits**

The following table sets forth the details of the material licenses and permits necessary for the operation of our business in China.

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| | | | |
|:---|:---|:---|:---|
| <br>**License/Permit** | **Entity Holding the License/**<br>**Permit** | <br>**Grant Date** | <br>**Expiration Date** |
| VAT License | Kingsoft Cloud Network | July 22, 2020 | March 5, 2029 |
| VAT License | Kingsoft Cloud Network | February 24, 2021 | March 27, 2028 |
| VAT License | Beijing Jinxun Ruibo | September 30, 2021 | June 24, 2027 |
| VAT License | Beijing Jinxun Ruibo | February 18, 2022 | February 18, 2027 |
| VAT License | Kingsoft Cloud Information | January 17, 2019 | December 15, 2028 |
| VAT License | Kingsoft Cloud Information | September 30, 2021 | September 30, 2026 |
| VAT License | Kingsoft Cloud Network | November 28, 2017 | October 9, 2027 |
| VAT License | Nanjing Qianyi | April 9, 2018 | December 30, 2027 |
| VAT License | Nanjing Qianyi | April 3, 2018 | September 27, 2027 |
| VAT License | Wuhan Kingsoft Cloud | July 26, 2024 | July 26, 2029<sup>(1)</sup> |
| VAT License | Shanghai Jinxun Ruibo | January 24, 2022 | January 24, 2027 |
| VAT License | Kingsoft Cloud Shenzhen | December 22, 2025 | October 22, 2030 |
| VAT License | QY Data | January 29, 2026 | May 30, 2030 |

---

As of the date of this annual report, we had obtained all material licenses, permits, approvals and certificates necessary to conduct our business operations from the relevant government authorities in the PRC, and such licenses, permits, approvals and certificates remained in full effect. These include the VAT Licenses for internet data center services, internet access services, domestic internet protocol virtual private network services, content delivery network services and information services. For the licenses or permits that are going to expire, we are in the process of renewing them.

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#### Regulation

#### Regulation Related to Foreign Investment
The establishment, operation and management of companies in China are mainly governed by the PRC Company Law, as most amended in December 2023 and taking into effect in July 2024, which applies to both PRC domestic companies and foreign-invested companies. On March 15, 2019, the National People's Congress approved the Foreign Investment Law, and on December 26, 2019, the State Council promulgated the Implementing Rules of the PRC Foreign Investment Law, or the Implementing Rules, to further clarify and elaborate the relevant provisions of the Foreign Investment Law. The Foreign Investment Law and the Implementing Rules both took effect on January 1, 2020 and replaced three major previous laws on foreign investments in China, namely, the Sino-foreign Equity Joint Venture Law, the Sino-foreign Cooperative Joint Venture Law and the Wholly Foreign-owned Enterprise Law, together with their respective implementing rules. Pursuant to the Foreign Investment Law, "foreign investments" refer to investment activities conducted by foreign investors (including foreign natural persons, foreign enterprises or other foreign organizations) directly or indirectly in the PRC, which include any of the following circumstances: (i) foreign investors setting up foreign-invested enterprises in the PRC solely or jointly with other investors, (ii) foreign investors obtaining shares, equity interests, property portions or other similar rights and interests of enterprises within the PRC, (iii) foreign investors investing in new projects in the PRC solely or jointly with other investors and (iv) investment in other methods as specified in laws or administrative regulations, or as stipulated by the State Council. The Implementing Rules introduce a see-through principle and further provide that foreign-invested enterprises that invest in the PRC shall also be governed by the Foreign Investment Law and the Implementing Rules.

The Foreign Investment Law and the Implementing Rules provide that a system of pre-entry national treatment and negative list shall be applied for the administration of foreign investment, where "pre-entry national treatment" means that the treatment given to foreign investors and their investments at market access stage is no less favorable than that given to domestic investors and their investments, and "negative list" means the special administrative measures for foreign investment's access to specific fields or industries, which will be proposed by the competent investment department of the State Council in conjunction with the competent commerce department of the State Council and other relevant departments, and be reported to the State Council for promulgation, or be promulgated by the competent investment department or competent commerce department of the State Council after being reported to the State Council for approval. Foreign investment beyond the negative list will be granted national treatment. Foreign investors shall not invest in the prohibited fields as specified in the negative list, and foreign investors who invest in the restricted fields shall comply with the special requirements on the shareholding, senior management personnel, etc. In the meantime, relevant competent government departments will formulate a catalogue of industries for which foreign investments are encouraged according to the needs for national economic and social development, to list the specific industries, fields and regions in which foreign investors are encouraged and guided to invest. The current industry entry clearance requirements governing investment activities in the PRC by foreign investors are set out in two categories, namely the Special Administrative Measures (Negative List) for the Access of Foreign Investment (2024 version), or the 2024 Negative List, as promulgated by the NDRC and the Ministry of Commerce and taking effect on November 1, 2024, and the Encouraged Industry Catalogue for Foreign Investment (2025 version), as promulgated by the NDRC and the Ministry of Commerce and taking effect on February 1, 2026. Industries not listed in these two categories are generally deemed "permitted" for foreign investment unless specifically restricted by other PRC laws. Industries such as value-added telecommunication business, which we are engaged in, are generally not open up or restricted to foreign investment, and we conduct business operations that are restricted to foreign investment through our variable interest entities.

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According to the Implementing Rules, the registration of foreign-invested enterprises shall be handled by the State Administration for Market Regulation, or the SAMR, or its authorized local counterparts. Where a foreign investor invests in an industry or field subject to licensing in accordance with laws, the relevant competent government department responsible for granting such license shall review the license application of the foreign investor in accordance with the same conditions and procedures applicable to PRC domestic investors unless it is stipulated otherwise by the laws and administrative regulations, and the competent government department shall not impose discriminatory requirements on the foreign investor in terms of licensing conditions, application materials, reviewing steps and deadlines, etc. However, the relevant competent government departments shall not grant the license or permit enterprise registration if the foreign investor intends to invest in the industries or fields as specified in the negative list without satisfying the relevant requirements. In the event that a foreign investor invests in a prohibited field or industry as specified in the negative list, the relevant competent government department shall order the foreign investor to stop the investment activities, dispose of the shares or assets or take other necessary measures within a specified time limit, and restore to the status prior to the occurrence of the aforesaid investment, and the illegal gains, if any, shall be confiscated. If the investment activities of a foreign investor violate the special administration measures for access restrictions on foreign investments as stipulated in the negative list, the relevant competent government department shall order the investor to make corrections within the specified time limit and take necessary measures to meet the relevant requirements. If the foreign investor fails to make corrections within the specified time limit, the aforesaid provisions regarding the circumstance that a foreign investor invests in the prohibited field or industry shall apply.

Pursuant to the Foreign Investment Law and the Implementing Rules, and the Information Reporting Measures for Foreign Investment jointly promulgated by the Ministry of Commerce and the SAMR, which took effect on January 1, 2020, a foreign investment information reporting system shall be established and foreign investors or foreign-invested enterprises shall report investment information to competent commerce departments of the government through the enterprise registration system and the enterprise credit information publicity system, and the administration for market regulation shall forward the above investment information to the competent commerce departments in a timely manner. In addition, the Ministry of Commerce shall set up a foreign investment information reporting system to receive and handle the investment information and inter-departmentally shared information forwarded by the administration for market regulation in a timely manner. The foreign investors or foreign-invested enterprises shall report the investment information by submitting initial reports, change reports, deregistration reports and annual reports, etc.

Furthermore, the Foreign Investment Law provides that foreign-invested enterprises established according to the previous laws regulating foreign investment prior to the implementation of the Foreign Investment Law may maintain their structure and corporate governance within five years after the implementation of the Foreign Investment Law. The Implementing Rules further clarify that such foreign-invested enterprises established prior to the implementation of the Foreign Investment Law may either adjust their organizational forms or organizational structures pursuant to the Company Law or the Partnership Law, or maintain their current structure and corporate governance within five years upon the implementation of the Foreign Investment Law. Since January 1, 2025, if a foreign-invested enterprise fails to adjust its organizational form or organizational structure in accordance with the laws and go through the applicable registrations for changes, the relevant administration for market regulation shall not handle other registrations for such foreign-invested enterprise and shall publicize the relevant circumstances. However, after the organizational forms or organizational structures of a foreign-invested enterprise have been adjusted, the original parties to the Sino-foreign equity or cooperative joint ventures may continue to process such matters as the equity interest transfer, the distribution of income or surplus assets as agreed by the parties in the relevant contracts.

In addition, the Foreign Investment Law and the Implementing Rules also specify other protective rules and principles for foreign investors and their investments in the PRC, including, among others, that local governments shall abide by their commitments to the foreign investors; except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation shall be made in a timely manner, expropriation or requisition of the investment of foreign investors is prohibited; mandatory technology transfer is prohibited, etc.

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#### Regulation Related to Value-Added Telecommunications Services

#### Regulation on Value-Added Telecommunications Services
The Telecommunications Regulations of the PRC, or the Telecommunications Regulations, promulgated on September 25, 2000 by the State Council of the PRC and most recently amended in February 2016, are the primary regulations governing telecommunications services. Under the Telecommunications Regulations, a telecommunications service provider is required to procure operating licenses from MIIT or its provincial counterparts, prior to the commencement of its operations, or else such operator might be subject to sanctions including corrective orders and warnings from the competent administration authority, fines and confiscation of illegal gains. In case of serious violations, the operator's websites may be ordered to be closed.

The Telecommunications Regulations categorize all telecommunications services in China as either basic telecommunications services or value-added telecommunications services, and value-added telecommunications services are defined as telecommunications and information services provided through public network infrastructures. The Administrative Measures for Telecommunications Business Operating License promulgated by the MIIT in July 2017 set forth more specific provisions regarding the types of licenses required to operate value-added telecommunications services, the qualifications and procedures for obtaining the licenses and the administration and supervision of these licenses.

A catalogue was issued as an appendix to the Telecommunications Regulations, or the Telecommunications Services Catalogue, which was most recently amended by the MIIT in June 2019. Pursuant to the Telecommunications Services Catalogue, the first category of value-added telecommunications services are divided into four subcategories including the "Internet Data Centre Services" (the "IDC Service"), the "Content Delivery Network Services", the "Domestic Internet Protocol Virtual Private Network Services" (the "IP-VPN Service") and the "Internet Access Services" (the "ISP Service"). The second category of value-added telecommunications services includes without limitation the online data process and transaction process service and information services.

In addition, the MIIT promulgated the Circular on Further Regulating Market Access of IDC Service and ISP Service in 2012, or the Circular 552, which further stipulates the detailed requirements on capital, personnel, facility and equipment for conducting IDC and ISP Services business. On January 17, 2017, the MIIT further promulgated the Notice on Cleaning Up and Regulating the Internet Access Service Market, which emphasizes the requirements as specified under Circular 552 and prohibits business operation without licenses, business operation beyond permitted territorial scope and business scope set forth on the licenses and "multi-level sublease" in the market with respect to IDC Service, ISP Service and content delivery network service. The IDC and ISP enterprises shall not sublease the IP addresses, bandwidth or other network access resources they have obtained from basic telecommunication operators in the PRC to other enterprises for operating businesses of IDC Service, ISP Service or other business. According to this notice, enterprises engaged in the businesses of IDC, ISP or content delivery network services shall conduct comprehensive self-inspection and rectify violations of the relevant regulations in a timely manner to ensure their business operations are in compliance with the applicable laws and regulations and the network facilities and network access resources are used in a compliant manner. The regulatory authorities shall urge enterprises in violation of the relevant regulations to make rectifications in a timely manner and take stern actions in accordance with the laws against the enterprises that refuse to make such rectifications, and such enterprises may fail to pass the annual inspection or may be included in the enterprise list of bad credit record, or the licenses or permits of such enterprises may not be renewed upon expiration and their cooperation with the basic telecommunications operators may be adversely affected under serious circumstances.

#### Regulation on Foreign Investment Restriction on Value-Added Telecommunications Services
Pursuant to the Protocol on the Accession of the PRC effective on November 10, 2001, China's commitment to open telecommunication business does not include IDC Service, CDN Service, IP-VPN Service and ISP Service. Pursuant to the Mainland and Hong Kong Closer Economic Partnership Agreement and Mainland and Macao Closer Economic Partnership Agreement (collectively, the "CEPA Agreements"), both effective on June 1, 2016, Chinese Mainland has promised to open the aforementioned services to service providers in Hong Kong Special Administrative Region and Macao Special Administrative Region subject to certain limitations.

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According to the 2024 Negative List and the currently effective Administrative Regulations on Foreign-Invested Telecommunications Enterprises, as for the value-added telecommunications business types which fall within China's commitment to the WTO, the ultimate capital contribution percentage by foreign investor(s) in a foreign-invested value-added telecommunications enterprise shall not exceed 50%, except as otherwise stipulated by the state. In Particular, from May 1, 2022, the amended Administrative Regulations on Foreign-Invested Telecommunications Enterprises canceled the qualification requirement on the primary foreign investor in a foreign invested value-added telecommunications enterprise for having a good track record and operational experience in the value-added telecommunications industry as stipulated in the previous version.

In 2006, the predecessor to the MIIT issued the Circular of the Ministry of Information Industry on Strengthening the Administration of Foreign Investment in Value-added Telecommunications Business, according to which a foreign investor in the telecommunications service industry of China must establish a foreign invested enterprise and apply for a telecommunications businesses operation license. This circular further requires that: (i) PRC domestic telecommunications business enterprises must not lease, transfer or sell a telecommunications businesses operation license to a foreign investor through any form of transaction or provide resources, offices and working places, facilities or other assistance to support the illegal telecommunications services operations of a foreign investor; (ii) value-added telecommunications enterprises or their shareholders must directly own the domain names and trademarks used by such enterprises in their daily operations; (iii) each value-added telecommunications enterprise must have the necessary facilities for its approved business operations and maintain such facilities in the regions covered by its license; and (iv) all providers of value-added telecommunications services are required to maintain network and internet security in accordance with the standards set forth in relevant PRC regulations. If a license holder fails to comply with the requirements in the circular and cure such noncompliance, the MIIT or its local counterparts have the discretion to take measures against such license holder, including revoking its license for value-added telecommunications business.

On January 12, 2017, the State Council issued the Notice on Several Measures for Expansion of Opening-up Policy and Active Use of Foreign Capital, which purports to relax restrictions on foreign investment in sectors including services, manufacturing and mining. Specifically, this notice proposes to gradually open up telecommunications, internet, culture, education and transportation industries to foreign investors. On July 25, 2023, the State Council issued the Opinion on Further Optimizing the Environment for Foreign Investment and Increasing Efforts to Attract Foreign Investment, which further proposes to gradually open up value-added telecommunication to foreign investors in more pilot areas. On April 8, 2024, the MIIT promulgated the Notice on the Pilot Program for Expanding the Opening up of Value-added Telecommunications Services. The pilot program will be first carried out in the designated districts in Beijing, Shanghai, Hainan and Shenzhen. In regions approved to carry out the pilot program, restrictions on foreign equity ratios will be removed for internet data centers (IDC), content delivery networks (CDN), internet service providers (ISP), online data processing and transaction processing, information releasing platforms and delivery services included in information services (excluding the operation of internet news information, online publishing, online audio and video, and internet culture), as well as information protection and processing services. The relevant local telecommunication authorities have subsequently published the guidance to implement the aforementioned notice.

#### Regulation Related to Internet Security and Privacy Protection
The Decision in Relation to Protection of Internet Security enacted by the Standing Committee of the National People's Congress of China on December 28, 2000, as amended, provides that, among other things, the following activities conducted through the internet, if constituting a criminal act under PRC laws, are subject to criminal punishment: (i) hacking into a computer or system of strategic importance; (ii) intentionally inventing and spreading destructive programs such as computer viruses to attack the computer system and the communications network, thus damaging the computer system and the communications networks; (iii) in violation of State regulations, discontinuing the computer network or the communications service without authorization; (iv) leaking state secrets; (v) spreading false commercial information; or (vi) infringing intellectual property rights through the internet.

The Provisions on Technological Measures for Internet Security Protection, or the Internet Security Protection Measures, promulgated on December 13, 2005 by the Ministry of Public Security require internet service providers and organizations that use interconnection implementing technical measures for internet security protection, like technical measures for preventing any matter or act that may endanger network security, e.g., computer viruses, invasion or attacks to or destruction of the network, to require all internet access service providers to take measures to keep a record of and preserve user registration information. Under these measures, value-added telecommunications services license holders must regularly update information security and content control systems for their websites and must also report any public dissemination of prohibited content to local public security authorities. If a value-added telecommunications services license holder violates these measures, the Ministry of Public Security and the local security bureaus may revoke its operating license and shut down its websites.

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On July 1, 2015, the Standing Committee of the National People's Congress issued the National Security Law, which came into effect on the same day. The National Security Law provides that the state shall safeguard the sovereignty, security and cyber security development interests of the state, and that the state shall establish a national security review and supervision system to review, among other things, foreign investment, key technologies, internet and information technology products and services, and other important activities that are likely to impact the national security of the PRC. On November 7, 2016, the National People's Congress Standing Committee promulgated the Cybersecurity Law which came into effect on June 1, 2017 and applies to the construction, operation, maintenance and use of networks as well as the supervision and administration of cybersecurity in China. The Cybersecurity Law was latest amended on October 28, 2025 and the amended Cybersecurity Law came into effect on January 1, 2026. The Cybersecurity Law defines "networks" as systems that are composed of computers or other information terminals and relevant facilities used for the purpose of collecting, storing, transmitting, exchanging and processing information in accordance with certain rules and procedures. "Network operators," who are broadly defined as owners and administrators of networks and network service providers, are subject to various security protection-related obligations, including: (i) complying with security protection obligations in accordance with tiered cybersecurity systems' protection requirements, which include formulating the internal security management rules and manual, appointing cybersecurity responsible personnel, adopting technical measures to prevent computer viruses and cybersecurity endangering activities, and adopting technical measures to monitor and record network operation status and cybersecurity events; (ii) formulating cybersecurity emergency response plans, timely handling security risks, initiating emergency response plans, taking appropriate remedial measures and reporting to regulatory authorities; and (iii) providing technical assistance and support for public security and national security authorities for protection of national security and criminal investigations in accordance with the law. Network service providers who do not comply with the Cybersecurity Law may be subject to fines, suspension of their businesses, shutdown of their websites and revocation of their business licenses. In addition, the Cybersecurity Law provides that personal information and important data collected and generated by operators of critical information infrastructure in the course of their operations in the PRC should be stored in the PRC, and imposes heightened regulation and additional security obligations on operators of critical information infrastructure. The recently amended Cybersecurity Law strengthens enforcement measures and significantly increases penalties for violations of the law.

On June 10, 2021, the Standing Committee of the National People's Congress of China promulgated the Data Security Law, which took effect in September 2021. The Data Security Law provides for data security and privacy obligations on entities and individuals carrying out data activities. The Data Security Law also introduces a data classification and hierarchical protection system based on the importance of data in economic and social development, as well as the degree of harm it will cause to national security, public interests, or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked, or illegally acquired or used. The appropriate level of protection measures is required to be taken for each respective category of data. For example, a processor of important data shall designate the personnel and the management body responsible for data security, carry out risk assessments for its data processing activities and file the risk assessment reports with the competent authorities. In addition, the Data Security Law provides a national security review procedure for those data activities which may affect national security and imposes export restrictions on certain data and information. We may be required to make further adjustments to our business practices to comply with this law.

On July 30, 2021, the State Council promulgated the Regulations on Security Protection of Critical Information Infrastructure, effective on September 1, 2021. According to these regulations, a "critical information infrastructure" refers to an important network facility and information system in important industries such as, among others, public communications and information services, as well as other important network facilities and information systems that may seriously endanger national security, the national economy, the people's livelihood, or the public interests in the event of damage, loss of function, or data leakage. The competent governmental authorities and supervision and management authorities of the aforementioned important industries will be responsible for (i) organizing the identification of critical information infrastructures in their respective industries in accordance with certain identification rules, and (ii) promptly notifying the identified operators and the public security department of the State Council of the identification results.

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The Administrative Provisions on Security Vulnerability of Network Products were jointly promulgated by the MIIT, the CAC and the Ministry of Public Security on July 12, 2021 and took effect on September 1, 2021. Network product providers, network operators as well as organizations or individuals engaging in the discovery, collection, release and other activities of network product security vulnerability are subject to these provisions and shall establish channels to receive information of security vulnerability of their respective network products and shall examine and fix such security vulnerability in a timely manner. Network product providers are required to report relevant information of security vulnerability of network products with the MIIT within two days and to provide technical support for network product users. Network operators shall take measures to examine and fix security vulnerability after discovering or acknowledging that their networks, information systems or equipment have security loopholes. According to these provisions, the breaching parties may be subject to administrative penalty as regulated in accordance with the Cybersecurity Law.

On December 28, 2021, the Cyberspace Administration of China, together with certain other PRC governmental authorities, promulgated the Cybersecurity Review Measures that replaced the previous version and took effect from February 15, 2022. Pursuant to these measures, the purchase of network products and services by an operator of critical information infrastructure or the data processing activities of a network platform operator that affect or may affect national security will be subject to a cybersecurity review. In addition, any online platform operator possessing over one million users' individual information must apply for a cybersecurity review before listing abroad. The competent governmental authorities may also initiate a cybersecurity review against the operators if the authorities believe that the network product or service or data processing activities of such operators affect or may affect national security.

To apply for a cybersecurity review, the relevant operators shall submit (i) an application letter, (ii) a report to analyze the impact or the potential impact on national security, (iii) purchase documents, agreements, the draft contracts, and the draft application documents for the initial public offering or similar activity, and (iv) other necessary materials. If the Cybersecurity Review Office deems it necessary to conduct a cybersecurity review, it should complete a preliminary review within 30 business days from the issuance of a written notice to the operator, or 45 business days for complicated cases. Upon the completion of a preliminary review, the Cybersecurity Review Office should reach a review conclusion suggestion and send the review conclusion suggestion to the members for the cybersecurity review mechanism and the relevant authorities for their comments. These authorities shall issue a written reply within 15 business days from the receipt of the review conclusion suggestion. If the Cybersecurity Review Office and these authorities reach a consensus, then the Cybersecurity Review Office shall inform the operator in writing, otherwise, the case will go through a special review procedure. The special review procedure should be completed within 90 business days, or longer for complicated cases.

In the meantime, the PRC regulatory authorities have also enhanced the supervision and regulation on cross-border data transfer. For example, on July 7, 2022, the CAC promulgated the Measures for the Security Assessment of Cross-border Data Transfer, which came into effect on September 1, 2022. These measures require the data processor providing data overseas and falling under any of the specified circumstances apply for the security assessment of cross-border data transfer by the national cybersecurity authority through its local counterpart. On February 22, 2023, the CAC promulgated the Measures on the Standard Contract for Cross-border Transfer of Personal Information, which became effective on June 1, 2023. These measures require personal information processors providing personal information to overseas recipients by entering into standard contracts and falling under any of the specified circumstance to file with the local counterpart of the CAC within ten business days from the effective date of the relevant standard contracts. Furthermore, on March 22, 2024, the CAC promulgated the Provisions on Promoting and Standardizing Cross-Border Data Transfer, which set forth the circumstances exempted from performing the security assessment or filing procedures for cross-border data transfer and further clarify the thresholds and scenarios for data processors to go through these procedures as stipulated under the aforementioned measures. Uncertainties still exist with respect to the interpretation and implementation of these measures in practice and how they will affect our business operation and the value of our securities.

Pursuant to the Decision on Strengthening the Protection of Online Information, issued by the Standing Committee of the National People's Congress in 2012, and the Order for the Protection of Telecommunication and Internet User Personal Information, issued by the MIIT in 2013, any collection and use of a user's personal information must be subject to the consent of the user, be legal, rational and necessary and be limited to specified purposes, methods and scopes. An internet information service provider must also keep such information strictly confidential, and is further prohibited from divulging, tampering or destroying any such information, or selling or providing such information to other parties. An internet information service provider is required to take technical and other measures to protect the collected personal information from any unauthorized disclosure, damage or loss. Any violation of these laws and regulations may subject the internet information service provider to warnings, fines, confiscation of illegal gains, revocation of licenses, cancellation of filings, closedown of websites or even criminal liabilities.

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Pursuant to the Notice of the Supreme People's Court, the Supreme People's Procuratorate and the Ministry of Public Security on Legally Punishing Criminal Activities Infringing upon the Personal Information of Citizens, issued in 2013, and the Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues regarding Legal Application in Criminal Cases Infringing upon the Personal Information of Citizens, which was issued on May 8, 2017 and took effect on June 1, 2017, the following activities may constitute the crime of infringing upon a citizen's personal information: (i) providing a citizen's personal information to specified persons or releasing a citizen's personal information online or through other methods in violation of relevant national provisions; (ii) providing legitimately collected information relating to a citizen to others without such citizen's consent (unless the information is processed, not traceable to a specific person and not recoverable); (iii) collecting a citizen's personal information in violation of applicable rules and regulations when performing a duty or providing services; or (iv) collecting a citizen's personal information by purchasing, accepting or exchanging such information in violation of applicable rules and regulations. In addition, the Opinions of the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Public Security on Several Issues Concerning the Application of Criminal Procedures in Handling of Criminal Cases Involving Information Networks, which took effect on September 1, 2022, further provide detailed procedures on facilitating the handling of criminal cases of (i) refusing to perform the obligation of managing the security of the information networks, (ii) illegally using the information networks, or (iii) assisting in the criminal activities of the information networks.

On August 20, 2021, the Standing Committee of the National People's Congress promulgated the Personal Information Protection Law, which took effect on November 1, 2021. Pursuant to the Personal Information Protection Law, "personal information" refers to any kind of information related to an identified or identifiable individual as electronically or otherwise recorded but excluding the anonymized information. The processing of personal information includes the collection, storage, use, processing, transmission, provision, disclosure and deletion of personal information. The Personal Information Protection Law applies to the processing of personal information of individuals within the territory of the PRC, as well as personal information processing activities outside the territory of PRC, for the purpose of providing products or services to natural persons located within China, for analysing or evaluating the behaviours of natural persons located within China, or for other circumstances as prescribed by laws and administrative regulations. A personal information processor may process the personal information of this individual only under the following circumstances: (i) where consent is obtained from the individual; (ii) where it is necessary for the execution or performance of a contract to which the individual is a party, or where it is necessary for carrying out human resource management pursuant to employment rules legally adopted or a collective contract legally concluded; (iii) where it is necessary for performing a statutory responsibility or statutory obligation; (iv) where it is necessary in response to a public health emergency, or for protecting the life, health or property safety of a natural person in the case of an emergency; (v) where the personal information is processed within a reasonable scope to carry out any news reporting, supervision by public opinions or any other activity for public interest purposes; (vi) where the personal information, which has already been disclosed by an individual or otherwise legally disclosed, is processed within a reasonable scope; or (vii) any other circumstance as provided by laws or administrative regulations. In principle, the consent of an individual must be obtained for the processing of his or her personal information, except under the circumstances of the aforementioned items (ii) to (vii). Where personal information is to be processed based on the consent of an individual, such consent shall be a voluntary and explicit indication of intent given by such individual on a fully informed basis. If laws or administrative regulations provide that the processing of personal information shall be subject to the separate consent or written consent of the individual concerned, such provisions shall prevail. In addition, the processing of the personal information of a minor under 14 years old must obtain the consent by a parent or a guardian of such minor and the personal information processors must adopt special rules for processing personal information of minors under 14 years old. Furthermore, the Personal Information Protection Law stipulates the rules for cross-border transfer of personal information. Any cross-border transfer of personal information is subject to the condition that it is necessary to provide the personal information to a recipient outside the territory of the PRC due to any business need or any other need, as well as the satisfaction of at least one of the following conditions: (i) where a security assessment organized by the national cyberspace administration has been passed; (ii) where a certification of personal information protection has been passed from a professional institution in accordance with the provisions issued by the national cyberspace administration; (iii) where a standard contract formulated by the national cyberspace administration has been entered into with the overseas recipient; or (iv) any other condition prescribed by laws, administrative regulations or any other requirements by the national cyberspace administration. Critical information infrastructure operators and personal information processors who have processed personal information in an amount reaching a threshold prescribed by the national cyberspace administration, must store in the territory of the PRC the personal information collected or generated within the territory of the PRC. If it is necessary to provide such information to an overseas recipient, a security assessment organized by the national cyberspace administration must be passed.

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On September 24, 2024, the CAC promulgated the Regulations for the Administration of Network Data Security, which came into effect on January 1, 2025. The Regulations for the Administration of Network Data Security restates and further specifies the legal requirements for personal information, important data, cross-border data transfer, network platform services, and data security. Among others, if the network data processing activities have or may have impacts on national security, such activities shall be subject to national security review in accordance with relevant laws and regulations. Any failure to comply with such requirements may subject us to suspension of services, fines, revocation of relevant business permits or business licenses and other penalties.

**Regulation Related to Anti-Monopoly**

The PRC Anti-monopoly Law, which was promulgated on August 1, 2008 and most recently amended on June 24, 2022, prohibits monopolistic conduct such as entering into monopoly agreements, abusing market dominance and concentration of undertakings conducted illegally that may have the effect of eliminating or restricting competition. The amended PRC Anti-monopoly Law increases the fines for illegal concentration of business operators to "no more than ten percent of its preceding year's sales revenue if the concentration of business operator has or may have an effect of excluding or limiting competition; or a fine of up to RMB5 million if the concentration of business operator does not have an effect of excluding or limiting competition." The amended PRC Anti-monopoly Law also proposes for the relevant authority to investigate any concentration where there is evidence that such concentration has or may have the effect of eliminating or restricting competition, even if such concentration does not reach the filing threshold. In addition, the amended PRC Anti-monopoly Law introduces a "stop-clock mechanism" which may prolong the review process for the concentration.

On September 11, 2020, the Anti-Monopoly Commission of the State Council issued Anti-Monopoly Compliance Guideline for Operators, which requires operators to establish anti-monopoly compliance management systems under the PRC Anti-Monopoly Law to manage anti-monopoly compliance risks. On February 7, 2021, the Anti-Monopoly Committee of the State Council promulgated the Anti-Monopoly Guidelines for the Internet Platform Economy Sector, aiming to provide guidelines for supervising and prohibiting monopolistic conduct in connection with the internet platform business operations and further elaborate on the factors for recognizing such monopolistic conduct in the internet platform industry as well as concentration filing procedures for business operators, including those involving variable interest entities. Pursuant to these guidelines, the methods of an internet platform collecting or using the privacy information of internet users may also be one of the factors to be considered for analyzing and recognizing monopolistic conducts in the internet platform industry. For example, whether the relevant business operator compulsorily collects unnecessary user information may be considered to analyze whether there is a bundled sale or additional unreasonable trading condition, which is one of the behaviors constituting abuse of dominant market position. In addition, factors including, among others, providing differentiated transaction prices or other transaction conditions for consumers with different payment ability based on consumption preferences and usage habits analyzed using big data and algorithms is also one of the behaviors constituting abuse of dominant market position. Furthermore, whether the relevant business operators are required to "choose one" among the internet platform and its competitive platforms may be considered to analyze whether such internet platform operator with dominant market position abuses its dominant market position and excludes or restricts market competition. There are still uncertainties as to the interpretation and implementation of these guidelines in practice.

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On March 10, 2023, the SAMR promulgated the Provisions on Prohibiting Monopoly Agreements, the Provisions on Prohibiting Abuse of Dominant Market Positions, the Provisions on the Examination of Concentrations of Undertakings and the Provisions on Prohibiting the Acts of Eliminating or Restricting Competition by Abuse of Administrative Power, all of which came into effect on April 15, 2023. On June 25, 2023, the SAMR promulgated the Provisions on Prohibition of the Abuse of Intellectual Property to Exclude or Restrict Competition, which came into effect on August 1, 2023. These provisions specify and refine the relevant provisions of the Anti-monopoly Law. For example, these provisions specify the conditions for suspending the review period for calculating the concentration of undertakings, clarify the judgment factors of "control" and "implementation of concentration" in the review of concentration of undertakings, optimize the calculation of turnover of undertakings involved in concentration, etc. In addition, factors for determining whether a concentration has been implemented include, but are not limited to, the completion of market entity registration or right holder change registration, assignment of senior management, actual participation in business decisions and management, exchange of sensitive information with other undertakings, and substantial integration of business. Besides, an operator with a leading market position may be deemed to have a dominant market position when the relevant conditions are met. Such conditions include an undertaking's capability to control the upstream and downstream markets, its financial and technological resources, the level of difficulty for other undertakings to enter relevant market, consistency of undertaking behaviors, market structure, transparency of relevant markets, homogeneity of relevant commodities, etc. These provisions further emphasize that operators with dominant market positions shall not utilize intellectual properties, data, algorithms, technologies and rules of the platform, among others, to conduct acts of abusing their dominant market positions as stipulated thereunder. In addition, these provisions also clarify the legal responsibility of relevant subjects under different circumstances. For example, according to the Provisions on Prohibiting Monopoly Agreements, where the legal representative, principal responsible person and directly responsible person of an undertaking assume individual responsibility for conclusion of a monopoly agreement, and if such person proactively reports the information on conclusion of the monopoly agreement and provides important evidences to the competent anti-monopoly enforcement authorities, the provisions of the mitigation of or exemption from penalties thereunder may apply.

#### Regulation Related to Intellectual Property

#### Patent
Patents in the PRC are principally protected under the Patent Law of the PRC. The duration of a patent right is either 10 years in the case of utility models, 15 years in the case of designs, or 20 years in the case of an invention from the date of application.

#### Copyright
Copyright in the PRC, including copyrighted software, is principally protected under the Copyright Law of the PRC and related rules and regulations. Under the Copyright Law, the term of protection for copyrighted software is 50 years. The Regulation on the Protection of the Right to Communicate Works to the Public over Information Networks, as most recently amended on January 30, 2013, provides specific rules on fair use, statutory license, and a safe harbor for use of copyrights and copyright management technology and specifies the liabilities of various entities for violations, including copyright holders, libraries and internet service providers.

#### Trademark
Registered trademarks are protected under the Trademark Law of the PRC and related rules and regulations. Trademarks are registered with the State Intellectual Property Office, formerly the Trademark Office of the SAIC. Where registration is sought for a trademark that is identical or similar to another trademark which has already been registered or given preliminary examination and approval for use in the same or similar category of commodities or services, the application for registration of this trademark may be rejected. Trademark registrations are effective for a renewable 10-year period, unless otherwise revoked.

#### Domain Name
Domain names are protected under the Administrative Measures on Internet Domain Names promulgated by the MIIT on August 24, 2017 and effective as of November 1, 2017. Domain name registrations are handled through domain name service agencies established under the relevant regulations, and applicants become domain name holders upon successful registration.

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#### Regulation Related to Employment, Social Insurance and Housing Fund
Pursuant to the PRC Labor Law and the PRC Labor Contract Law, employers must execute written labor contracts with full-time employees. All employers must comply with local minimum wage standards. Violations of the PRC Labor Contract Law and the PRC Labor Law may result in the imposition of fines and other administrative and criminal liability in the case of serious violations.

In addition, according to the PRC Social Insurance Law and the Regulations on the Administration of Housing Funds, employers in China must provide employees with welfare schemes covering pension insurance, unemployment insurance, maternity insurance, work-related injury insurance, and medical insurance and housing funds.

#### Regulation Related to Foreign Exchange and Dividend Distribution

#### Regulation on Foreign Currency Exchange
The principal regulations governing foreign currency exchange in China are the Foreign Exchange Administration Regulations, most recently amended in 2008. Under PRC foreign exchange regulations, payments of current account items, such as profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange, or SAFE, by complying with certain procedural requirements. By contrast, approval from or registration with appropriate government authorities is required where RMB is to be converted into foreign currency and remitted out of China to pay capital account items, such as direct investments, repayment of foreign currency-denominated loans, repatriation of investments and investments in securities outside of China.

In 2012, SAFE promulgated the Circular of Further Improving and Adjusting Foreign Exchange Administration Policies on Foreign Direct Investment, or Circular 59, which substantially amends and simplifies the current foreign exchange procedure. Pursuant to Circular 59, the opening of various special purpose foreign exchange accounts, such as pre-establishment expenses accounts, foreign exchange capital accounts and guarantee accounts, the reinvestment of RMB proceeds derived by foreign investors in the PRC, and remittance of foreign exchange profits and dividends by a foreign-invested enterprise to its foreign shareholders no longer require the approval or verification of SAFE, and multiple capital accounts for the same entity may be opened in different provinces, which was not possible previously. In 2013, SAFE specified that the administration by SAFE or its local branches over direct investment by foreign investors in the PRC must be conducted by way of registration and banks must process foreign exchange business relating to the direct investment in the PRC based on the registration information provided by SAFE and its branches. In February 2015, SAFE promulgated the Notice on Further Simplifying and Improving the Administration of the Foreign Exchange Concerning Direct Investment, or SAFE Notice 13. Instead of applying for approvals regarding foreign exchange registrations of foreign direct investment and overseas direct investment from SAFE, entities and individuals may apply for such foreign exchange registrations from qualified banks. The qualified banks, under the supervision of SAFE, may directly review the applications and conduct the registration.

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In March 2015, SAFE promulgated the Circular of the SAFE on Reforming the Management Approach regarding the Settlement of Foreign Capital of Foreign-invested Enterprise, or Circular 19, which expands a pilot reform of the administration of the settlement of the foreign exchange capitals of foreign-invested enterprises nationwide. Circular 19 replaced both the Circular of the SAFE on Issues Relating to the Improvement of Business Operations with Respect to the Administration of Foreign Exchange Capital Payment and Settlement of Foreign-invested Enterprises, or Circular 142, and the Circular of the SAFE on Issues concerning the Pilot Reform of the Administrative Approach Regarding the Settlement of the Foreign Exchange Capitals of Foreign-invested Enterprises in Certain Areas, or Circular 36. Circular 19 allows all foreign-invested enterprises established in the PRC to settle their foreign exchange capital on a discretionary basis according to the actual needs of their business operation, provides the procedures for foreign invested companies to use Renminbi converted from foreign currency-denominated capital for equity investments and removes certain other restrictions that had been provided in Circular 142. However, Circular 19 continues to prohibit foreign-invested enterprises from, among other things, using RMB funds converted from their foreign exchange capital for expenditure beyond their business scope and providing entrusted loans or repaying loans between nonfinancial enterprises. SAFE promulgated the Notice of the State Administration of Foreign Exchange on Reforming and Standardizing the Foreign Exchange Settlement Management Policy of Capital Account, or Circular 16, effective June 2016, which reiterates some of the rules set forth in Circular 19. Circular 16 provides that discretionary foreign exchange settlement applies to foreign exchange capital, foreign debt offering proceeds and remitted foreign listing proceeds, and the corresponding RMB capital converted from foreign exchange may be used to extend loans to related parties or repay inter-company loans (including advances by third parties). However, there are substantial uncertainties with respect to Circular 16's interpretation and implementation in practice. Circular 19 or Circular 16 may delay or limit us from using the proceeds of offshore offerings to make additional capital contributions to our PRC subsidiaries and any violations of these circulars could result in severe monetary or other penalties.

In January 2017, SAFE promulgated the Circular on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, or Circular 3, which stipulates several capital control measures with respect to the outbound remittance of profits from domestic entities to offshore entities, including (i) banks must check whether the transaction is genuine by reviewing board resolutions regarding profit distribution, original copies of tax filing records and audited financial statements and (ii) domestic entities must retain income to account for previous years' losses before remitting any profits. Moreover, pursuant to Circular 3, domestic entities must explain in detail the sources of capital and how the capital will be used, and provide board resolutions, contracts and other proof as a part of the registration procedure for outbound investment.

On October 23, 2019, SAFE issued Circular of the State Administration of Foreign Exchange on Further Promoting the Facilitation of Cross-border Trade and Investment, or the Circular 28, which took effect on the same day, and was amended on December 4, 2023, by the Circular on Further Deepening the Reform to Facilitate Cross-border Trade and Investment. Circular 28 allows non-investment foreign-invested enterprises to use their capital funds to make equity investments in China, provided that such investments do not violate the effective special entry management measures for foreign investment (negative list) and the target investment projects are genuine and in compliance with laws. Uncertainties still exist with respect to its interpretation and implementation. The Notice on Further Deepening Reforms to Promote the Facilitation of Trade and Investment provides that qualified high-tech, "professional, sophisticated, unique and new" and technology-based small and medium-sized enterprises located in specified provinces or cities may borrow foreign debt on their own, provided the amount of debt does not exceed the equivalent of US$10 million. In addition, this notice restructured the asset realization account of capital accounts to the settlement account of capital accounts. Funds denominated in foreign currency received in consideration of an equity transfer by a domestic equity transferor (including entities and individuals) from domestic parties, as well as the foreign exchange funds raised by domestic enterprises through overseas listing may be directly remitted to the settlement account of capital accounts. Funds in the settlement account of capital accounts may be settled and used at the discretion of the account holder.

#### Regulation on Dividend Distributions
The principal laws, rule and regulations governing dividends distribution by companies in the PRC are the PRC Company Law, which applies to both PRC domestic companies and foreign-invested companies, and the Foreign Investment Law and its implementing rules, which apply to foreign-invested companies. Under these laws, regulations and rules, both domestic companies and foreign-invested companies in the PRC are required to set aside as general reserves at least 10% of their after-tax profit, until the cumulative amount of their reserves reaches 50% of their registered capital. PRC companies are not permitted to distribute any profits until any losses from prior fiscal years have been offset. Profits retained from prior fiscal years may be distributed together with distributable profits from the current fiscal year.

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#### Regulation on Foreign Exchange Registration of Overseas Investment by PRC Residents
In 2014, SAFE issued the SAFE Circular on Relevant Issues Relating to Domestic Resident's Investment and Financing and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37, replacing the SAFE Circular on Issues Concerning the Regulation of Foreign Exchange in Equity Finance and Return Investments by Domestic Residents through Offshore Special Purpose Vehicles, or SAFE Circular 75. SAFE Circular 37 regulates foreign exchange matters in relation to the use of special purpose vehicles by PRC residents or entities to seek offshore investment and financing or conduct round trip investment in China. Under SAFE Circular 37, a "special purpose vehicle" refers to an offshore entity established or controlled, directly or indirectly, by PRC residents or entities for the purpose of seeking offshore financing or making offshore investment, using legitimate onshore or offshore assets or interests, while "round trip investment" refers to direct investment in China by PRC residents or entities through special purpose vehicles, namely, establishing foreign-invested enterprises to obtain ownership, control rights and management rights. SAFE Circular 37 provides that, before making a contribution into a special purpose vehicle, PRC residents or entities are required to complete foreign exchange registration with SAFE or its local branch.

In 2015, SAFE promulgated the Notice on Further Simplifying and Improving the Administration of the Foreign Exchange Concerning Direct Investment. This notice has amended SAFE Circular 37 by requiring PRC residents or entities to register with qualified banks rather than SAFE or its local branch in connection with their establishment or control of an offshore entity established for the purpose of overseas investment or financing. PRC residents or entities who had contributed legitimate onshore or offshore interests or assets to special purpose vehicles but had not registered as required before the implementation of the SAFE Circular 37 must register their ownership interests or control in the special purpose vehicles with qualified banks. An amendment to the registration is required if there is a material change with respect to the special purpose vehicle registered, such as any change of basic information (including change of the PRC residents, name and operation term), increases or decreases in investment amount, transfers or exchanges of shares, and mergers or divisions. Failure to comply with the registration procedures set forth in SAFE Circular 37 and the subsequent notice, or making misrepresentations or failing to disclose the control of the foreign-invested enterprise that is established through round-trip investment, may result in restrictions being imposed on the foreign exchange activities of the relevant foreign-invested enterprise, including payment of dividends and other distributions, such as proceeds from any reduction in capital, share transfer or liquidation, to its offshore parent or affiliate, and the capital inflow from the offshore parent, and may also subject relevant PRC residents or entities to penalties under PRC foreign exchange administration regulations.

#### Regulation Related to Stock Incentive Plans
In February 2012, SAFE promulgated the Notice on Foreign Exchange Administration of PRC Residents Participating in Share Incentive Plans of Offshore Listed Companies, or the Stock Option Rules, replacing the previous rules issued by SAFE in March 2007. Under the Stock Option Rules and other relevant rules and regulations, domestic individuals, which means the PRC residents and non-PRC citizens residing in China for a continuous period of not less than one year, subject to a few exceptions, who participate in a stock incentive plan in an overseas publicly listed company are required to register with SAFE or its local branches and complete certain other procedures. Participants of a stock incentive plan who are PRC residents must retain a qualified PRC agent, which could be a PRC subsidiary of the overseas publicly listed company or another qualified institution selected by the PRC subsidiary, to conduct the SAFE registration and other procedures with respect to the stock incentive plan on behalf of its participants. The participants must also retain an overseas entrusted institution to handle matters in connection with their exercise of stock options, the purchase and sale of corresponding stocks or interests and fund transfers. In addition, the PRC agent is required to amend the SAFE registration with respect to the stock incentive plan if there is any material change to the stock incentive plan, the PRC agent or the overseas entrusted institution or other material changes. The PRC agents must, on behalf of the PRC residents who have the right to exercise the employee share options, apply to SAFE or its local branches for an annual quota for the payment of foreign currencies in connection with the PRC residents' exercise of the employee share options. The foreign exchange proceeds received by the PRC residents from the sale of shares under the stock incentive plans granted and dividends distributed by the overseas listed companies must be remitted into the bank accounts in the PRC opened by the PRC agents before distribution to such PRC residents. In addition, SAFE Circular 37 provides that PRC residents who participate in a share incentive plan of an overseas unlisted special purpose company may register with SAFE or its local branches before exercising rights.

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#### Regulation Related to Tax

#### Enterprise Income Tax
Under the Enterprise Income Tax Law of the PRC, or the EIT Law, which became effective on January 1, 2008 and was subsequently amended on February 24, 2017 and December 29, 2018, and its implementing rules, enterprises are classified as resident enterprises and non-resident enterprises. PRC resident enterprises typically pay an enterprise income tax at the rate of 25% while non-PRC resident enterprises without any branches in the PRC should pay an enterprise income tax in connection with their income from the PRC at the tax rate of 10%. An enterprise established outside of the PRC with its "de facto management bodies" located within the PRC is considered a "resident enterprise," meaning that it can be treated in a manner similar to a PRC domestic enterprise for enterprise income tax purposes. The implementing rules of the EIT Law define a de facto management body as a managing body that in practice exercises "substantial and overall management and control over the production and operations, personnel, accounting, and properties" of the enterprise. Enterprises qualified as "High and New Technology Enterprises" are entitled to a 15% enterprise income tax rate rather than the 25% uniform statutory tax rate. The preferential tax treatment continues as long as an enterprise can retain its "High and New Technology Enterprise" status.

The EIT Law and the implementation rules provide that an income tax rate of 10% should normally be applicable to dividends payable to investors that are "non-resident enterprises," and gains derived by such investors, which (a) do not have an establishment or place of business in the PRC or (b) have an establishment or place of business in the PRC, but the relevant income is not effectively connected with the establishment or place of business to the extent such dividends and gains are derived from sources within the PRC. Such income tax on the dividends may be reduced pursuant to a tax treaty between China and other jurisdictions. Pursuant to the Arrangement Between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation on Income, or the Double Tax Avoidance Arrangement, and other applicable PRC laws, if a Hong Kong resident enterprise is determined by the competent PRC tax authority to have satisfied the relevant conditions and requirements under such Double Tax Avoidance Arrangement and other applicable laws, the 10% withholding tax on the dividends the Hong Kong resident enterprise receives from a PRC resident enterprise may be reduced to 5% upon receiving approval from the in-charge tax authority. However, based on the Notice on Certain Issues with Respect to the Enforcement of Dividend Provisions in Tax Treaties issued on February 20, 2009 by the State Taxation Administration, if the relevant PRC tax authorities determine, in their discretion, that a company benefits from such reduced income tax rate due to a structure or arrangement that is primarily tax-driven, such PRC tax authorities may adjust the preferential tax treatment; and based on the Announcement on Relevant Issues Concerning the "Beneficial Owners" in Tax Treaties issued on February 3, 2018 by the State Taxation Administration and effective from April 1, 2018, which replaces the Notice on the Interpretation and Recognition of Beneficial Owners in Tax Treaties and the Announcement on the Recognition of Beneficial Owners in Tax Treaties by the State Taxation Administration, comprehensive analysis based on the stipulated factor therein and actual circumstances shall be adopted when recognizing the "beneficial owner" and agents and designated wire beneficiaries are specifically excluded from being recognized as "beneficial owners."

#### Value-added Tax
Pursuant to the Value-Added Tax Law of the PRC, as latest amended by the SCNPC on December 25, 2024, which came into effect on January 1, 2026, and the Regulations for the Implementation of the Value-Added Tax Law of the PRC, issued by the State Council on December 25, 2024 and came into effect on January 1, 2026, any entity or individual engaged in the sales of goods, provision of processing, repairs and replacement services and importation of goods into China is generally required to pay a value-added tax, or VAT, for revenues generated from sales of products, while qualified input VAT paid on taxable purchase can be offset against such output VAT. The general value-added tax rate applicable to the sale or importation of goods is 13%, 9% and 6%.

Furthermore, pursuant to the Announcement on the VAT Reduction and Exemption Policy for Small-scale VAT Taxpayers issued and implemented by the Ministry of Finance and the State Taxation Administration on August 1, 2023, the VAT is exempted for small-scale VAT taxpayers with monthly sales of less than RMB100,000 (inclusive). For taxable sales income applicable to small-scale VAT taxpayers at a rate of 3%, the VAT shall be levied at a reduced rate of 1%.

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#### M&A Rules and Overseas Listings
On August 8, 2006, six PRC regulatory agencies, including the China Securities Regulatory Commission, or the CSRC, adopted the Regulations on Mergers of Domestic Enterprises by Foreign Investors, or the M&A Rules, which became effective on September 8, 2006 and were amended on June 22, 2009. Foreign investors shall comply with the M&A Rules when they purchase equity interests of a domestic company or subscribe the increased capital of a domestic company, thus changing the nature of the domestic company into a foreign-invested enterprise; or when the foreign investors establish a foreign-invested enterprise in the PRC, purchase the assets of a domestic company and operate the assets; or when the foreign investors purchase the asset of a domestic company, establish a foreign-invested enterprise by injecting such assets and operate the assets. The M&A Rules purport, among other things, to require offshore special purpose vehicles formed for overseas listing purposes through acquisitions of PRC domestic companies and controlled by PRC companies or individuals, to obtain the approval of the CSRC prior to publicly listing their securities on an overseas stock exchange.

Furthermore, The General Office of the CPC Central Committee and the General Office of the State Council issued Opinions on Strictly Cracking Down on Illegal Securities Activities in accordance with the Law, which were available to the public on July 6, 2021 and emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China-based companies, and proposed to take effective measures, such as promoting the construction of relevant regulatory systems to deal with the risks and incidents faced by China-based overseas-listed companies, and provided that the special provisions of the State Council on overseas offering and listing by those companies limited by shares will be revised and therefore the duties of domestic industry competent authorities and regulatory authorities will be clarified.

On February 17, 2023, the CSRC promulgated the Overseas Listing Trial Measures, and relevant five guidelines on the application of Regulatory Rules, which took effect from March 31, 2023, requiring Chinese domestic companies' overseas securities offerings or listings be filed with the CSRC. The Overseas Listing Trial Measures clarify the scope of overseas offerings or listings by Chinese domestic companies which are subject to the filing and reporting requirements thereunder, and provide, among others, that Chinese domestic companies that have already directly or indirectly offered and listed securities in overseas markets prior to the effectiveness of the Overseas Listing Trial Measures shall fulfil their filing obligations and report relevant information to the CSRC within three working days after the completion of any subsequent securities offering on the same overseas market, and follow the relevant reporting requirements within three working days upon the occurrence and public disclosure of any specified circumstances provided thereunder, including (i) change of control; (ii) investigations or sanctions imposed by overseas securities regulatory agencies or other relevant competent authorities; (iii) change of listing status or transfer of listing segment; (iv) voluntary or mandatory delisting. In addition, where the main business of an issuer undergoes material change after overseas offering and listing, and is therefore beyond the scope of business stated in the filing documents, such issuer shall follow the relevant reporting requirements within three working days after occurrence of the changes. For violations of these provisions or measures, the competent Chinese authorities may impose administrative regulatory measures, such as orders for correction, warnings, fines, and may pursue legal liability in accordance with law.

Furthermore, on February 24, 2023, the CSRC, together with certain other PRC governmental authorities, promulgated the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies ("Revised Confidentiality and Archives Administration Provisions"), which came into effect on March 31, 2023. According to the Revised Confidentiality and Archives Administration Provisions, Chinese companies that directly or indirectly conduct overseas offerings and listings, shall strictly abide by the relevant laws and regulations on confidentiality when providing or publicly disclosing, either directly or through their overseas listed entities, documents and materials to securities services providers such as securities companies and accounting firms or overseas regulators in the process of their overseas offering and listing. In the event such documents or materials contain state secrets or working secrets of government agencies, the Chinese companies shall first obtain approval from competent authorities according to law, and file with the secrecy administrative department at the same level with the approving authority; in the event that such documents or materials, if divulged, will jeopardize national security or public interest, the Chinese companies shall strictly fulfill relevant procedures stipulated by applicable national regulations. The Chinese companies shall also provide a written statement of the specific state secrets and sensitive information provided when providing documents and materials to securities companies and securities service providers, and the securities companies and securities service providers shall properly retain such written statements for inspection. According to the Revised Confidentiality and Archives Administration Provisions, where overseas securities regulators or relevant competent authorities request to inspect, investigate or collect evidence from Chinese domestic companies concerning their overseas offering and listing or their securities firms and securities service providers that undertake securities business for such Chinese domestic companies, such inspection, investigation and evidence collection must be conducted under the cross-border regulatory cooperation mechanism, and the CSRC or competent authorities of the Chinese government will provide necessary assistance pursuant to bilateral and multilateral cooperation mechanism.

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We cannot assure you that we will not be required to obtain the approval of or complete the filing or other administrative procedures with the CSRC or potentially other regulatory authorities to maintain the listing status of the ADSs on the Nasdaq and the ordinary shares on the Hong Kong Stock Exchange or to conduct offerings of securities in the future. We have been closely monitoring regulatory developments in China regarding any necessary approvals, filings or other administrative procedures from the CSRC or other PRC regulatory authorities required for overseas securities offerings.

As of the date of this annual report, we have not received any inquiry, notice, warning, sanctions or regulatory objection to our listing status from the CSRC.

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| **4.C.** | **Organizational Structure** |

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The following diagram illustrates our corporate structure as of the date of this annual report, including our significant subsidiaries and significant variable interest entities, and their equity interest holding.

![Graphic](kc-20251231x20f012.jpg)

#### Notes:
&nbsp;&nbsp;&nbsp;&nbsp;(1) Zhuhai Kingsoft Cloud is held as to 79.60% and 20.40% by Beijing Kingsoft Digital Entertainment Technology Co., Ltd. and Ms. Qiu Weiqin, who is a family member of a director of Kingsoft Corporation, respectively, as registered owners. Beijing Kingsoft Digital Entertainment Technology Co., Ltd. is ultimately owned as to 80% and 20% by Ms. Qiu Weiqin and Ms. Lei Peili who is a family member of Mr. Lei Jun, the chairman of our Board.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Kingsoft Cloud Information is held as to 80% and 20% by Ms. Qiu Weiqin and Mr. Tao Zou, our executive director and acting CEO, respectively, as registered owners.

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#### Contractual Arrangements with the VIEs and Their Respective Shareholders
Current PRC laws and regulations impose certain restrictions or prohibitions on foreign ownership of companies that engage in value-added telecommunication services. We are an exempted company with limited liability incorporated in the Cayman Islands. Our PRC subsidiaries, Beijing Kingsoft Cloud and Yunxiang Zhisheng are considered foreign-invested enterprises. To comply with PRC laws and regulations, we primarily conduct our business in China through the VIEs, Zhuhai Kingsoft Cloud and Kingsoft Cloud Information, and their subsidiaries, based on a series of contractual arrangements. Through these contractual arrangements, the nominee shareholders of the VIEs effectively assigned all of their voting rights underlying their equity interests in the VIEs to the Company, and therefore, the Company has the power to direct the activities of the VIEs that most significantly impact its economic performance. The Company is obligated to absorb losses of the variable interest entities that could potentially be significant to the variable interest entities through providing unlimited financial support to the variable interest entities or is entitled to receive economic benefits from the variable interest entities that could potentially be significant to the variable interest entities through the exclusive technology consulting and service fees. As a result of these contractual arrangements, the Company is determined to be the primary beneficiary of these variable interest entities only for accounting purposes and we consolidate these variable interest entities under U.S. GAAP. As a result of these contractual arrangements, we are considered the primary beneficiary of the VIEs for accounting purposes and consolidate their operating results in our financial statements under U.S. GAAP, to the extent the conditions for consolidation of VIEs under U.S. GAAP are satisfied.

The following is a summary of the contractual arrangements by and among Beijing Kingsoft Cloud, Zhuhai Kingsoft Cloud, the shareholders of Zhuhai Kingsoft Cloud and the contractual arrangements by and among Yunxiang Zhisheng, Kingsoft Cloud Information and the shareholders of Kingsoft Cloud Information. For the complete text of these contractual arrangements, please see the copies filed as exhibits to the registration statement filed with the SEC of which this annual report forms a part.

#### Exclusive Consultation and Technical Service Agreement
Under the exclusive consultation and technical service agreement dated November 9, 2012, as amended and supplemented on November 29, 2019 and July 15, 2022, Beijing Kingsoft Cloud has agreed to exclusively provide the following services (among others) to Zhuhai Kingsoft Cloud:

● the licensing of software, copyrights and know-how legally owned by Beijing Kingsoft Cloud;

● the provision of comprehensive consultancy services related to business operation, management and technology;

● the development, maintenance and updates of hardware and database;

● the development of application software and related operational support and updates;

● the provision of technical training for employees;

● the collection and research of technical information; and

● the provision of other related services as required by Zhuhai Kingsoft Cloud from time to time.

Zhuhai Kingsoft Cloud has agreed to annually pay service fees equal to 100% of its revenues for the year deducting costs in the same period as agreed by both parties, and pay service fees for certain services as required by Zhuhai Kingsoft Cloud from time to time. The service fees are adjustable at the sole discretion of Beijing Kingsoft Cloud. The exclusive consultation and technical service agreement shall remain effective for 20 years from November 9, 2012 unless expressly provided otherwise or Beijing Kingsoft Cloud unilaterally decides to terminate the exclusive consultation and technical service agreement. Beijing Kingsoft Cloud can unilaterally renew this agreement for a further period determined by itself.

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On July 18, 2018, Kingsoft Cloud Information and Yunxiang Zhisheng entered into an exclusive consultation and technical service agreement, which was later amended and supplemented on November 29, 2019 and July 15, 2022 and contains terms substantially similar to the exclusive consultation and technical service agreement described above. With the change of the shareholding structure of Kingsoft Cloud Information, where Mr. Tao Zou replaced Mr. Yulin Wang as a registered shareholder of Kingsoft Cloud Information, the original exclusive consultant and technical service agreement entered into between Kingsoft Cloud Information and Yunxiang Zhisheng was terminated on August 24, 2022. On the same day, a new exclusive consultant and technical service agreement with substantially the same terms was entered into between Kingsoft Cloud Information and Yunxiang Zhisheng.

#### Loan Agreements
On November 9, 2012 and June 20, 2014, Ms. Weiqin Qiu and Beijing Kingsoft Cloud entered into loan agreements, as amended and supplemented on November 29, 2019, under which Beijing Kingsoft Cloud agreed to provide Ms. Weiqin Qiu interest-free loans. Under these loan agreements, the loans shall be repaid by transferring Ms. Weiqin Qiu's equity interest in Zhuhai Kingsoft Cloud to Beijing Kingsoft Cloud or its designee.

On July 18, 2018, Mr. Yulin Wang and Ms. Weiqin Qiu entered into a loan agreement with Yunxiang Zhisheng, under which Yunxiang Zhisheng agreed to provide Mr. Yulin Wang and Ms. Weiqin Qiu an interest-free loan. This agreement was later amended and supplemented on November 29, 2019 and July 15, 2022, and contains terms substantially similar to the loan agreements described above. With the change of the shareholding structure of Kingsoft Cloud Information, where Mr. Tao Zou replaced Mr. Yulin Wang as a registered shareholder of Kingsoft Cloud Information, the original loan agreement entered into among Mr. Yulin Wang, Ms. Weiqin Qiu and Yunxiang Zhisheng was terminated on August 24, 2022. On the same day, a new loan agreement with substantially the same terms was entered into among Mr. Tao Zou, Ms. Weiqin Qiu and Yunxiang Zhisheng.

#### Equity Pledge Agreement
Each of Ms. Weiqin Qiu and Beijing Kingsoft Digital Entertainment Technology Co., Ltd., or Kingsoft Digital, the shareholders of Zhuhai Kingsoft Cloud, has entered into an equity pledge agreement with Beijing Kingsoft Cloud and Zhuhai Kingsoft Cloud on June 20, 2014. Under the equity pledge agreement, Ms. Weiqin Qiu and Kingsoft Digital pledged their respective equity interest in Zhuhai Kingsoft Cloud to Beijing Kingsoft Cloud to secure obligations under the applicable loan agreements, exclusive purchase option agreement, shareholder voting right trust agreement, and exclusive consultation and technical service agreement. Ms. Weiqin Qiu and Kingsoft Digital further agreed not to transfer or pledge their equity interest in Zhuhai Kingsoft Cloud without the prior written consent of Beijing Kingsoft Cloud. The equity pledge agreement will remain binding until the pledgers, Ms. Weiqin Qiu and Kingsoft Digital, as the case may be, discharge all of their obligations under the above-mentioned agreements. As of the date of this annual report, the equity pledges under the equity pledge agreement have been registered with the competent PRC regulatory authority.

On July 18, 2018, Mr. Yulin Wang and Ms. Weiqin Qiu entered into an equity pledge agreement with Yunxiang Zhisheng and Kingsoft Cloud Information, which was amended and supplemented on July 15, 2022, and contains terms substantially similar to the equity pledge agreement described above. With the change of the shareholding structure of Kingsoft Cloud Information, where Mr. Tao Zou replaced Mr. Yulin Wang as a registered shareholder of Kingsoft Cloud Information, the original equity pledge agreement entered into among Mr. Yulin Wang, Ms. Weiqin Qiu, Yunxiang Zhisheng and Kingsoft Cloud Information was terminated on August 24, 2022. On the same day, a new equity pledge agreement with substantially the same terms was entered into among Mr. Tao Zou, Mr. Weiqin Qiu, Yunxiang Zhisheng and Kingsoft Cloud Information. As of the date of this annual report, the equity pledges under the equity pledge agreement dated August 24, 2022 have been registered with the competent PRC regulatory authority.

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#### Exclusive Purchase Option Agreement
Ms. Weiqin Qiu and Kingsoft Digital, the shareholders of Zhuhai Kingsoft Cloud, entered into an exclusive purchase option agreement with Beijing Kingsoft Cloud and Zhuhai Kingsoft Cloud on June 20, 2014, which was later amended and supplemented on November 29, 2019. Under the exclusive purchase option agreement, Ms. Weiqin Qiu granted Beijing Kingsoft Cloud or its designee an option to purchase her equity interest in Zhuhai Kingsoft Cloud at a price equal to the higher of the amount of the loan provided to Ms. Weiqin, and the minimum amount of consideration permitted by PRC law, and Kingsoft Digital granted Beijing Kingsoft Cloud or its designee an option to purchase its equity interest in Zhuhai Kingsoft Cloud at a price equal to the higher of RMB1 and the minimum amount of consideration permitted by PRC law. Ms. Weiqin Qiu and Kingsoft Digital also granted Beijing Kingsoft Cloud or its designee an option to purchase all or a portion of the assets of Zhuhai Kingsoft Cloud for the minimum amount of consideration permitted by PRC law. Ms. Weiqin Qiu and Kingsoft Digital also agreed not to transfer or mortgage any equity interest in or dispose of or cause the management to dispose of any material assets of Zhuhai Kingsoft Cloud without the prior written consent of Beijing Kingsoft Cloud. The exclusive purchase option agreement shall remain in effect until all of the equity interests in Zhuhai Kingsoft Cloud have been acquired by Beijing Kingsoft Cloud or its designee.

On July 18, 2018, Mr. Yulin Wang and Ms. Weiqin Qiu entered into an exclusive purchase option agreement with Yunxiang Zhisheng and Kingsoft Cloud Information, which was later amended and supplemented on November 29, 2019 and July 15, 2022, and contains terms substantially similar to the exclusive purchase option agreement described above. With the change of the shareholding structure of Kingsoft Cloud Information, where Mr. Tao Zou replaced Mr. Yulin Wang as a registered shareholder of Kingsoft Cloud Information, the original exclusive purchase option agreement entered into among Mr. Yulin Wang, Ms. Weiqin Qiu, Yunxiang Zhisheng and Kingsoft Cloud Information was terminated on August 24, 2022. On the same day, a new exclusive purchase option agreement with substantially the same terms was entered into among Mr. Tao Zou, Ms. Weiqin Qiu, Yunxiang Zhisheng and Kingsoft Cloud Information.

#### Shareholder Voting Right Trust Agreement
Ms. Weiqin Qiu and Kingsoft Digital, the shareholders of Zhuhai Kingsoft Cloud, entered into a shareholder voting right trust agreement with Beijing Kingsoft Cloud and Zhuhai Kingsoft Cloud on June 20, 2014, which was later amended and supplemented on November 29, 2019. Under the shareholder voting right trust agreement, Ms. Weiqin Qiu and Kingsoft Digital agreed to irrevocably entrust a person designated by Beijing Kingsoft Cloud to represent them to exercise all the voting rights and other shareholders' rights to which they are entitled as shareholders of Zhuhai Kingsoft Cloud. The shareholder voting right trust agreement shall remain effective from the date of such agreement for as long as Ms. Weiqin Qiu and Kingsoft Digital remain the shareholders of Zhuhai Kingsoft Cloud, unless Beijing Kingsoft Cloud otherwise decides to terminate or amend this agreement.

On July 18, 2018, Mr. Yulin Wang and Ms. Weiqin Qiu entered into a shareholder voting right trust agreement with Yunxiang Zhisheng and Kingsoft Cloud Information, which was later amended and supplemented on November 29, 2019 and July 15, 2022, and contains terms substantially similar to the shareholder voting right trust agreement described above. With the change of the shareholding structure of Kingsoft Cloud Information, where Mr. Tao Zou replaced Mr. Yulin Wang as a registered shareholder of Kingsoft Cloud Information, the original shareholder voting right trust agreement entered into among Mr. Yulin Wang, Ms. Weiqin Qiu, Yunxiang Zhisheng and Kingsoft Cloud Information was terminated on August 24, 2022. On the same day, a new shareholder voting right trust agreement with substantially the same terms was entered into among Mr. Tao Zou, Ms. Weiqin Qiu, Yunxiang Zhisheng and Kingsoft Cloud Information.

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#### Spousal Consents
The spouses of individual shareholders of Zhuhai Kingsoft Cloud and Kingsoft Cloud Information have each signed a spousal consent letter. Under the spousal consent letter, the signing spouse unconditionally and irrevocably agreed that the equity interest in Zhuhai Kingsoft Cloud or Kingsoft Cloud Information which is held by and registered under the name of his or her spouse will be disposed of pursuant to the above-mentioned loan agreements, equity pledge agreements, exclusive purchase option agreements and the shareholder voting rights trust agreements. Moreover, the spouse confirmed he or she has no rights, and will not assert in the future any right, over the equity interests in Zhuhai Kingsoft Cloud or Kingsoft Cloud Information held by his or her spouse. In addition, in the event that the spouse obtains any equity interest in Zhuhai Kingsoft Cloud or Kingsoft Cloud Information held by his or her spouse for any reason, he or she agrees to be bound by and sign any legal documents substantially similar to the contractual arrangements entered into by his or her spouse, as may be amended from time to time.

In the opinion of Fangda Partners, our PRC legal counsel:

● the ownership structures of Beijing Kingsoft Cloud, Zhuhai Kingsoft Cloud, Yunxiang Zhisheng and Kingsoft Cloud Information, do not violate any applicable PRC laws, regulations or rules currently in effect; and

● the agreements among Beijing Kingsoft Cloud, Zhuhai Kingsoft Cloud and its shareholders, Yunxiang Zhisheng, and Kingsoft Cloud Information and its shareholders governed by PRC laws, as described above, are valid, binding and enforceable in accordance with their terms and applicable PRC laws, rules and regulations currently in effect, and do not violate any applicable PRC laws, rules or regulations currently in effect.

However, there are substantial uncertainties regarding the interpretation and application of current or future PRC laws and regulations. We have been further advised by our PRC legal counsel that if the PRC government finds that the agreements that establish the structure for operating our value-added telecommunications services and related business do not comply with PRC government restrictions on foreign investment in such businesses, we are likely to be subject to penalties including being prohibited from continuing operations. For a description of the risks related to these contractual arrangements and our corporate structure, please see "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Corporate Structure and the Contractual Arrangements."

#### Financial Support Undertaking Letter
We executed a financial support undertaking letter addressed to Zhuhai Kingsoft Cloud and Kingsoft Cloud Information, pursuant to which we undertake to provide unlimited financial support to Zhuhai Kingsoft Cloud and Kingsoft Cloud Information to the extent permissible under the applicable PRC laws and regulations, whether or not any operational loss is actually incurred. The form of financial support shall include, but is not limited to, extension of cash, entrusted loans and borrowings. We will not request repayment of the loans or borrowings if Zhuhai Kingsoft Cloud and Kingsoft Cloud Information or their shareholders do not have sufficient funds or are unable to repay.

**4. D.** **Property, Plant and Equipment**

Our current principal executive offices are located at Building D, Xiaomi Science and Technology Park, No. 33 Xierqi Middle Road, Haidian District, Beijing, China. We lease properties in Beijing and certain other cities where we operate with an aggregate of approximately 65,542.6 square meters as of December 31, 2025. These facilities currently accommodate our management headquarters, as well as most of our sales and marketing, research and development, and general and administrative activities. We also have two data centers in Beijing and Tianjin, China, to support our business.

**ITEM 4A.** **UNRESOLVED STAFF COMMENTS**

None.

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**ITEM 5** **OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

You should read the following discussion together with our consolidated financial statements and the related notes included elsewhere in this annual report. This discussion may contain forward-looking statements about our business and operations. Our actual results may differ materially from those we currently anticipate as a result of many factors, including those we describe under "Item 3. Key Information—Item 3.D. Risk Factors" and elsewhere in this annual report.

For the impact of foreign currency fluctuations on our company, and the extent to which foreign currency net investments are hedged by currency borrowing and other hedging instruments, please refer to "Item 11. Quantitative and Qualitative Disclosures about Market Risk—Foreign exchange risk."

**5. A.** **Operating Results**

#### Key Factors Affecting Our Results of Operations

#### Trends in China's economic conditions and development of China's cloud industry
Our business and results of operations are significantly affected by China's overall economic conditions and the development of China's cloud industry. The development of the cloud industry in China is expected to be driven by massive, high-growth demand from internet verticals, increasing penetration in traditional enterprises and public service organizations, the large-scale launching of new technologies, increasing adoption of AI technologies, requirement for dedicated industry specific cloud services, favorable government policies, higher requirement on data compliance, data loss prevention and non-conflict of interest, demand for internet infrastructure construction, deepening digitalization, overseas expansion of Chinese companies, among others. As a market leader, we have captured, and are likely to continue to capture, the various market opportunities brought by the development of China's cloud industry.

Nevertheless, unfavorable changes in China's overall economy and cloud industry could negatively affect demand for our services and materially and adversely affect our results of operations. The emerging cloud industry in China is entering into a new phase of digitalization and there are considerable uncertainties about its future growth. See "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—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 and preferences, our products and solutions may become less competitive."

#### Our ability to retain existing customers and acquire new customers
We have amassed a large, premium and diversified customer base covering a wide spectrum of industry verticals. The total number of our Premium Customers is 486, 492 and 473 in 2023, 2024 and 2025. We have fostered strong loyalty with existing customers as a result of the high-quality cloud products and solutions offered by us, as well as our ability to deliver tangible value to customers by effectively addressing their needs.

We aim to acquire and retain new customers by, among others, further enhancing the quality and efficiency of our existing products and solutions, offering additional innovative products and solutions and implementing effective sales strategies tailored to the verticals in which we operate. In particular, the revenue growth of our enterprise cloud services has been primarily driven by the fast-growing demands of enterprise cloud services and the increase in the number of our Enterprise Cloud Service Premium Customers as more traditional enterprises adopting cloud solutions. We also aim to continue to generate additional revenues from existing customers and seek additional cross-selling opportunities.

#### Our ability to upgrade and expand our products and solutions
We have benefited from the upgrade and optimization of our products and solutions and have achieved rapid growth. Our future success is significantly dependent on our ability to further enhance the quality and optimize the portfolio of our products and solutions. Furthermore, we seek to improve the breadth and quality of our products and solutions, to develop products and solution that could meet the evolving demands of our customers, and to enhance our brand recognition, which thereby will allow us to capture additional market share, enjoy better economies of scale and improve our profitability.

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#### Our ability to continue to invest in technology and infrastructure
We have invested, and will continue to invest, in resources to enhance the technology, infrastructure and capabilities of our products and solutions. Our ability to improve our existing cloud products and solutions and develop new ones depends on the scale of our infrastructure as well as the technologies we use to develop and deliver high-quality cloud services to customers. It is thus crucial for us to continually invest in technology and infrastructure to expand our resources and enhance capabilities of our products and solutions. We plan to continue to invest in upgrading and expanding our network infrastructure.

#### Our ability to effectively control our costs and expenses
Our ability to manage and control our costs and expenses is critical to the success of our business. We have invested substantially in developing technology capabilities and infrastructure in order to provide our products and solutions. Also, we have been expanding into new verticals and developing new products and solutions, for example, we are capturing the market opportunity to provide enterprise cloud services to traditional industries and public service organizations. As a result, we expect our costs and expenses would increase along with the increase in our enterprise cloud revenues. While we expect our costs and expenses to increase as our business expands, we also expect them to decrease as a proportion of our revenues as we achieve more economies of scale and higher operating efficiency.

#### Our ability to compete effectively
Our business and results of operations depend on our ability to compete effectively in the verticals in which we operate. Our competitive position may be affected by, among other things, the scope of our solution offerings, the quality of our solutions and our ability to price our solutions competitively. We believe that our valuable insight and capabilities of enterprise services gained from Kingsoft Group, our neutrality, strong enterprise service capabilities, proprietary advanced technologies and prominent research and development capabilities differentiate us from our competitors and help us establish a high entry barrier difficult for our competitors to surpass. However, we are still subject to competition from a variety of players within our industry. Increased competition could materially and adversely affect our business, financial condition and results of operations.

#### Key Operating Metrics
We adopt a premium customer strategy, focusing on leading enterprises in selected verticals to establish market presence efficiently. Therefore, we believe that a number of key operating metrics in relation to our Premium Customers, as presented in the table below to evaluate our business and measure our performance. We believe that these metrics are indicative of our overall business and performance. The calculation of the key metrics and other measures discussed below may differ from other similarly titled metrics used by other companies, securities analysts or investors.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended**  | **For the Year Ended**  | **For the Year Ended**  |
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2023** | **2024** | **2025** |
| **Public Cloud Services** |  |  |  |
| Number of Public Cloud Service Premium Customers  | 214 | 219 | 216 |
| Average revenues per Public Cloud Service Premium Customers (RMB in million) | 20.1 | 19.7 | 30.3 |
| **Enterprise Cloud Services** |  |  |  |
| Number of Enterprise Cloud Service Premium Customers | 285 | 287 | 273 |
| Average revenues per Enterprise Cloud Services Premium Customers (RMB in million) | 9.1 | 9.1 | 10.4 |
| **Total** |  |  |  |
| Number of Premium Customers | 486 | 492 | 473 |
| Average revenues per Premium Customer (RMB in million) | 14.2 | 14.0 | 14.6 |

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#### Key Components of Results of Operations

#### Revenues
We derive our revenues primarily from (i) public cloud services and (ii) enterprise cloud services. The following table sets forth a breakdown of our revenues, in absolute amounts and as percentages of total revenues, for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%**  | **RMB** | **%**  | **RMB** | **US$** | **%**  |
|  | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** |
| **Revenues** |  |  |  |  |  |  |  |
| Public Cloud Services Revenues | 4381741 | 62.2 | 5007251 | 64.3 | 6633492 | 948577 | 69.4 |
| Enterprise Cloud Services Revenues | 2663993 | 37.8 | 2777777 | 35.7 | 2925127 | 418287 | 30.6 |
| Others | 1727 |  | 152 |  |  |  |  |
| **Total Revenues** | **7047461** | **100.0** | **7785180** | **100.0** | **9558619** | **1366864** | **100.0** |

---

*Public cloud services.* We offer public cloud services to customers in various verticals, including, among others, video, intelligent mobility, e-commerce, AI and mobile internet in general. We generally charge our public cloud service customers on a monthly basis based on utilization and duration. We also offer a prepaid subscription package over a fixed subscription period.

*Enterprise cloud services*. We also offer enterprise cloud services to customers engaging in the public service, healthcare, financial service businesses, and private-owned enterprises, among others. We generally charge our enterprise cloud service customers on a project basis. We also charge enterprise cloud service customers based on performance completed to date.

*Others*. We also record insignificant revenues from other miscellaneous services that we provide on an ad hoc basis, which has not been and is not expected to be material to our business.

See "Item 4. Information on the Company—4.B. Business Overview—Our Products and Solutions" for details about how we generate our revenues.

#### Cost of Revenues
Our cost of revenues primarily consists of (i) IDC costs, (ii) depreciation and amortization costs, (iii) fulfillment cost, (iv) solution development and services costs, and (v) other costs.

The following table sets forth a breakdown of our cost of revenues, in absolute amounts and as percentages of total cost of revenues, for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%**  | **RMB** | **%**  | **RMB** | **US$** | **%**  |
|  | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** |
| **Cost of revenues** |  |  |  |  |  |  |  |
| IDC costs | 3211235 | 51.8 | 2892054 | 44.9 | 3113400 | 445210 | 38.7 |
| Depreciation and amortization costs | 774019 | 12.5 | 1090082 | 16.9 | 2321670 | 331994 | 28.8 |
| Fulfillment costs | 229471 | 3.7 | 235693 | 3.7 | 73674 | 10535 | 0.9 |
| Solution development and services costs | 1804792 | 29.1 | 1993087 | 30.9 | 2306813 | 329870 | 28.6 |
| Other costs | 177775 | 2.9 | 233338 | 3.6 | 239654 | 34271 | 3.0 |
| **Total cost of revenues** | **6197292** | **100.0** | **6444254** | **100.0** | **8055211** | **1151880** | **100.0** |

---

IDC costs primarily consist of (i) bandwidth costs, which represent the purchase of bandwidth usage rights from telecommunication operators, and (ii) rack costs, which cover fees we pay to the IDC operators for using the rack space, associated utilities and services.

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Depreciation and amortization costs primarily consist of depreciation and amortization of our fixed assets, such as servers, and intangible assets. Fulfillment costs are mainly generated by providing Kingsoft Cloud enterprise cloud services. Fulfillment costs mainly represent purchases of technology components from third parties, such as technology equipment, customized software and services, to fulfill the deployment of solutions. Solution development and services costs primarily represent payments to our solution development and services personnel for the development of products and solutions based on customers' needs. Other costs consist of other miscellaneous costs associated with our solutions and services.

#### Operating Expenses
The following table sets forth a breakdown of our operating expenses, in absolute amounts and as percentages of our total operating expenses, for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%**  | **RMB** | **%**  | **RMB** | **US$** | **%**  |
|  | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** |
| **Operating expenses** |  |  |  |  |  |  |  |
| Research and development expenses | 784807 | 26.5 | 845989 | 27.5 | 810300 | 115871 | 35.6 |
| Selling and marketing expenses | 460221 | 15.6 | 479369 | 15.6 | 551406 | 78850 | 24.2 |
| General and administrative expenses | 1060022 | 35.8 | 834854 | 27.1 | 914615 | 130788 | 40.2 |
| Impairment of long-lived assets | 653670 | 22.1 | 919724 | 29.8 |  |  |  |
| **Total operating expenses** | **2958720** | **100.0** | **3079936** | **100.0** | **2276321** | **325509** | **100.0** |

---

*Research and Development Expenses*

Research and development expenses consist primarily of (i) staff expenses, including salaries, bonuses and benefits paid to our research and development personnel, (ii) share-based compensation paid to our research and development personnel, and (iii) other miscellaneous expenses, primarily including depreciation and amortization expenses, office rental expenses and information technology expenses. The following table sets forth a breakdown of our research and development expenses for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%**  | **RMB** | **%**  | **RMB** | **US$** | **%**  |
|  | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** |
| **Research and development expenses** |  |  |  |  |  |  |  |
| Staff expenses (excluding share-based compensation) | 621615 | 79.2 | 683284 | 80.8 | 665064 | 95103 | 82.1 |
| Share-based compensation | 50145 | 6.4 | 50895 | 6.0 | 57376 | 8205 | 7.1 |
| Other miscellaneous expenses | 113047 | 14.4 | 111810 | 13.2 | 87860 | 12563 | 10.8 |
| **Total research and development expenses** | **784807** | **100.0** | **845989** | **100.0** | **810300** | **115871** | **100.0** |

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*Selling and marketing expenses*

Selling and marketing expenses consist primarily of (i) staff expenses, including salaries, commissions, bonuses and benefits paid to sales and marketing personnel, (ii) share-based compensation paid to sales and marketing personnel, (iii) marketing and promotion expenses, (iv) depreciation and amortization expenses, and (v) other miscellaneous expenses, primarily including office rental expenses. The following table sets forth a breakdown of our selling and marketing expenses for the periods indicated.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%**  | **RMB** | **%**  | **RMB** | **US$** | **%**  |
|  | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** |
| **Selling and marketing expenses** |  |  |  |  |  |  |  |
| Staff expenses (excluding share-based compensation) | 238401 | 51.8 | 229212 | 47.8 | 245743 | 35141 | 44.6 |
| Share-based compensation | 6977 | 1.5 | 45572 | 9.5 | 95998 | 13728 | 17.4 |
| Marketing and promotion expenses | 9114 | 2.0 | 4691 | 1.0 | 6409 | 916 | 1.2 |
| Depreciation and amortization expenses | 154332 | 33.5 | 147791 | 30.8 | 147365 | 21073 | 26.7 |
| Other miscellaneous expenses | 51397 | 11.2 | 52103 | 10.9 | 55891 | 7992 | 10.1 |
| **Total selling and marketing expenses** | **460221** | **100.0** | **479369** | **100.0** | **551406** | **78850** | **100.0** |

---

*General and Administrative Expenses*

Our general and administrative expenses consist of (i) staff expenses, including salaries, bonuses and benefits paid to general and administrative personnel, (ii) share-based compensation paid to general and administrative personnel, (iii) credit losses primarily for account receivables and contract assets, and (iv) other miscellaneous expenses, primarily including depreciation and amortization expenses, office rental expenses, general operation expenses, professional service fees and offering costs in relation to our Hong Kong Listing (as defined herein). The following table sets forth a breakdown of our general and administrative expenses for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%**  | **RMB** | **%**  | **RMB** | **US$** | **%**  |
|  | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** |
| **General and administrative expenses** |  |  |  |  |  |  |  |
| Staff expenses (excluding share-based compensation) | 287470 | 27.1 | 318699 | 38.2 | 373445 | 53402 | 40.8 |
| Share-based compensation | 114766 | 10.8 | 101106 | 12.1 | 255261 | 36502 | 27.9 |
| Credit losses | 502184 | 47.4 | 312373 | 37.4 | 202086 | 28898 | 22.1 |
| Other miscellaneous expenses | 155602 | 14.7 | 102676 | 12.3 | 83823 | 11987 | 9.2 |
| **Total general and administrative expenses** | **1060022** | **100.0** | **834854** | **100.0** | **914615** | **130788** | **100.0** |

---

***Year Ended December 31, 2025 Compared to Year Ended December 31, 2024***

***Revenues***

Our revenues increased by 22.8% from RMB7,785.2 million in 2024 to RMB9,558.6 million (US$1,366.9 million) in 2025, which was attributable to the strong demands from AI business and enterprise cloud projects increase.

*Public cloud services*

Our revenues generated from public cloud services increased by 32.5% from RMB5,007.3 million in 2024 to RMB6,633.5 million (US$948.6 million) in 2025, primarily driven by the strong demands from AI business.

*Enterprise cloud services*

Our revenues generated from enterprise cloud services increased by 5.3% from RMB2,777.8 million in 2024 to RMB2,925.1 million (US$418.3 million) in 2025, primarily due to the increase in enterprise cloud projects.

[**Table of Contents**](#TOC)

***Cost of revenues***

Our cost of revenues increased by 25.0% from RMB6,444.3 million in 2024 to RMB8,055.2 million (US$1,151.9 million) in 2025, primarily driven by (i) the increase in depreciation and amortization costs from RMB1,090.1 million in 2024 to RMB2,321.7 million (US$332.0 million) in 2025, mainly as a result of depreciation of new acquired servers related to AI business, (ii) the increase in solution development and services costs from RMB1,993.1 million in 2024 to RMB2,306.8 million (US$329.9 million) in 2025, and (iii) the increase in IDC costs from RMB2,892.1 million in 2024 to RMB3,113.4 million (US$445.2 million) in 2025, mainly due to the grown infrastructure demands in line with AI business expansion, and partially offset by the decrease in fulfillment costs RMB235.7 million in 2024 to RMB73.7 million (US$10.5 million) in 2025, mainly due to the decrease of hardware we provide in our enterprise cloud services.

***Gross profit***

As a result of the foregoing, our gross profit increased by 12.1% from RMB1,340.9 million in 2024 to RMB1,503.4 million (US$215.0 million) in 2025. Our gross margin decreased from 17.2% in 2024 to 15.7% in 2025, primarily because of the increasing depreciation costs.

*Research and development expenses*

Our research and development expenses decreased by 4.2% from RMB846.0 million in 2024 to RMB810.3 million (US$115.9 million) in 2025, mainly due to the decrease in personnel-related expenses.

*Selling and marketing expenses*

Our selling and marketing expenses increased by 15% from RMB479.4 million in 2024 to RMB551.4 million (US$78.9 million) in 2025, mainly due to the increase of share-based compensation.

*General and administrative expenses*

Our general and administrative expenses increased by 9.6% from RMB834.9 million in 2024 to RMB914.6 million (US$130.8 million) in 2025, primarily attributable to the increase in share-based compensation and partially offset by decrease of credit loss expense.

***Operating loss***

As a result of the foregoing, our operating loss decreased by 55.6% from RMB1,739.0 million in 2024 to RMB772.9 million (US$110.5 million) in 2025. Our operating loss margin narrowed from 22.3% in 2024 to 8.1% in 2025.

***Interest income***

Our interest income increased by 199.4% from RMB27.0 million in 2024 to RMB80.9 million (US$11.6 million) in 2025.

***Interest expense***

Our interest expense increased by 116.8% from RMB229.7 million in 2024 to RMB498.0 million (US$71.2 million) in 2025.

[**Table of Contents**](#TOC)

***Foreign exchange (loss) gain***

We recorded foreign exchange gain of RMB60.1 million (US$8.6 million) in 2025, as compared to foreign exchange loss of RMB19.5 million in 2024, primarily because of appreciation of RMB against U.S. dollar in 2025 compared with 2024.

***Other loss, net***

We recorded other loss, net of RMB9.0 million (US$1.3 million) in 2025, as compared to RMB12.9 million in 2024.

***Other income/(expense), net***

Our other expense, net increased from RMB6.4 million in 2024 to other net income RMB191.0 million (US$27.3 million) in 2025, primarily due to the government subsidy.

***Income tax benefit***

Our income tax benefit is RMB4.2 million (US$0.6 million) in 2025, as compared to our income tax benefit of RMB1.5 million in 2024.

***Net loss***

As a result of the foregoing, our net loss decreased by 52.3% from RMB1,979.0 million in 2024 to RMB943.7 million (US$134.9 million) in 2025.

Our net loss margin decreased from 25.4% in 2024 to 9.9% in 2025.

#### Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

#### Revenues
Our revenues increased by 10.5% from RMB7,047.5 million in 2023 to RMB7,785.2 million in 2024, which was attributable to the strong demands from AI business and enterprise cloud projects increase, while partially offset by our proactive scale-down of CDN services within public cloud services.

*Public cloud services*

Our revenues generated from public cloud services increased by 14.3% from RMB4,381.7 million in 2023 to RMB5,007.3 million in 2024, primarily driven by the strong demands from AI business, partially offset by our proactive scale-down of CDN services within public cloud offerings.

*Enterprise cloud services*

Our revenues generated from enterprise cloud services increased by 4.3% from RMB2,664.0 million in 2023 to RMB2,777.8 million in 2024, primarily due to the increase in enterprise cloud projects.

#### Cost of revenues
Our cost of revenues increased by 4.0% from RMB6,197.3 million in 2023 to RMB6,444.3 million in 2024, primarily driven by (i) the increase in depreciation and amortization costs from RMB774.0 million in 2023 to RMB1,090.1 million in 2024, mainly as a result of depreciation of new acquired servers related to AI business, (ii) the increase in fulfillment costs RMB229.5 million in 2023 to RMB235.7 million in 2024, in line with enterprise cloud projects increase, and (iii) the increase in solution development and services costs from RMB1,804.8 million in 2023 to RMB1,993.1 million in 2024, and partially offset by the decrease in IDC costs from RMB3,211.2 million in 2023 to RMB2,892.1 million in 2024, in line with our cost control measures adjustment of CDN services.

[**Table of Contents**](#TOC)

#### Gross profit
As a result of the foregoing, our gross profit increased by 57.7% from RMB850.2 million in 2023 to RMB1,340.9 million in 2024. Our gross profit margin increased from 12.1% in 2023 to 17.2% in 2024, primarily because of the optimization of revenue mix and our effective cost controls.

*Research and development expenses*

Our research and development expenses increased by 7.8% from RMB784.8 million in 2023 to RMB846.0 million in 2024, mainly due to the rise in personnel-related expenses.

*Selling and marketing expenses*

Our selling and marketing expenses increased by 4.2% from RMB460.2 million in 2023 to RMB479.4 million in 2024, mainly due to the increase of share-based compensation.

*General and administrative expenses*

Our general and administrative expenses decreased by 21.2% from RMB1,060.0 million in 2023 to RMB834.9 in 2024, primarily attributable to the decrease of credit loss expense.

#### Operating loss
As a result of the foregoing, our operating loss decreased by 17.5% from RMB2,108.6 million in 2023 to RMB1,739.0 million in 2024. Our operating loss margin decreased from 29.9% in 2023 to 22.3% in 2024.

#### Interest income
Our interest income decreased by 65.6% from RMB78.4 million in 2023 to RMB27.0 million in 2024.

#### Interest expense
Our interest expense increased by 57.3% from RMB146.0 million in 2023 to RMB229.7 million in 2024.

#### Foreign exchange loss
We recorded foreign exchange loss of RMB19.5 million in 2024, as compared to RMB57.2 million in 2023, primarily because of a slighter depreciation of RMB against U.S. dollar in 2024 compared with 2023.

#### Other loss, net
We recorded other loss, net of RMB12.9 million in 2024, as compared to RMB32.7 million in 2023.

#### Other income/(expense), net
Our other expense, net is RMB6.4 million in 2024, as compared to our other income, net of RMB100.4 million in 2023.

[**Table of Contents**](#TOC)

#### Income tax expense
Our income tax benefit is RMB1.5 million in 2024, as compared to our income tax expense of RMB18.0 million in 2023.

#### Net loss
As a result of the foregoing, our net loss decreased by 9.4% from RMB2,183.6 million in 2023 to RMB1,979.0 million in 2024.

Our net loss margin decreased from 31.0% in 2023 to 25.4% in 2024.

#### TAXATION

#### Cayman Islands
We are incorporated in the Cayman Islands. The Cayman Islands currently have no income, corporation or capital gains tax and no estate duty, inheritance tax or gift tax. The Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

#### Hong Kong
Our subsidiaries incorporated in Hong Kong are subject to income tax at the rate of 16.5% on the estimated assessable profits arising in Hong Kong. For the years ended December 31, 2023, 2024 and 2025, we did not make any provisions for Hong Kong profit tax as there were accumulated losses derived from or incurred in Hong Kong for any of the periods presented. Under the Hong Kong tax law, the subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

#### Chinese Mainland
Our Chinese Mainland entities are subject to the statutory income tax rate of 25%, in accordance with the Enterprise Income Tax ("EIT") law, which was effective since January 1, 2008. Certain subsidiaries of the Group being qualified as a High New Technology Enterprise ("HNTE") are entitled to the preferential income tax rate of 15%. Dividends, interests, rent or royalties payable by our Chinese Mainland entities to non-resident enterprises, and proceeds from any such non-resident enterprise investor's disposition of assets (after deducting the net value of such assets) shall be subject to 10% EIT, namely withholding tax, unless the respective non-resident enterprise's jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax.

#### Recent Accounting Pronouncements
For detailed discussion on recent accounting pronouncements, see Note 2 to our audited consolidated financial statements included elsewhere in this annual report.

#### Non-GAAP Financial Measures
In evaluating our business, we have considered and used certain non-GAAP financial measures, including Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP operating loss margin, Non-GAAP EBITDA, Non-GAAP EBITDA margin, Non-GAAP net loss and Non-GAAP net loss 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 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 financial 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.

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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.

#### Adjusted Gross Profit and Adjusted Gross Margin (Non-GAAP Measures)
We define Non-GAAP gross profit as gross profit excluding share-based compensation expenses allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. The following tables reconcile our Non-GAAP gross profit (margin) in 2023, 2024 and 2025 to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Gross profit | 850169 | 1340926 | 1503408 | 214984 |
| Adjustment: |  |  |  |  |
| &nbsp;&nbsp;Share-based compensation (allocated in cost of revenues) | 9757 | 16868 | 38275 | 5473 |
| Adjusted gross profit (Non-GAAP Financial Measure) | 859926 | 1357794 | 1541683 | 220457 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **(%)** | **(%)** | **(%)** |
| Gross margin | 12.1 | 17.2 | 15.7 |
| Adjustment gross margin (Non-GAAP Financial Measure) | 12.2 | 17.4 | 16.1 |

---

#### Adjusted Net Loss (Margin), Adjusted EBITDA (Margin) and Adjusted Operating Loss (Margin)
We define Non-GAAP net loss as net loss excluding share-based compensation, foreign exchange loss and impairment of long-lived assets, and we define Non-GAAP net loss margin as adjusted net loss as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We define Non-GAAP operating loss as operating loss excluding share-based compensation, impairment of long-lived assets and amortization of intangible assets, and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. The following tables reconcile our adjusted net loss (margin) (Non-GAAP Financial Measure) and adjusted EBITDA (margin) (Non-GAAP Financial Measure) in 2023, 2024 and 2025 to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

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We define Non-GAAP net loss as net loss excluding share-based compensation expenses, foreign exchange loss (gain) and impairment of long-lived assets, and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We define Non-GAAP operating loss as operating loss excluding share-based compensation expenses, impairment of long-lived assets and amortization of intangible assets, and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. The following tables reconcile our adjusted net loss (margin) (Non-GAAP Financial Measure), adjusted EBITDA (margin) (Non-GAAP Financial Measure) and adjusted operating loss (margin) (Non-GAAP Financial Measure) in 2023, 2024 and 2025 to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Net loss** | (2183647) | (1979042) | (943692) | (134946) |
| Adjustment: |  |  |  |  |
| &nbsp;&nbsp;Share-based compensation expenses | 181645 | 214441 | 446909 | 63907 |
| &nbsp;&nbsp;Foreign exchange loss (gain) | 57211 | 19531 | (60147) | (8601) |
| &nbsp;&nbsp;Impairment of long-lived assets | 653670 | 919724 |  |  |
| **Adjusted net loss (Non-GAAP Financial Measure)** | **(1291121)** | **(825346)** | **(556930)** | **(79640)** |
| &nbsp;&nbsp;Adjustments: |  |  |  |  |
| &nbsp;&nbsp;Interest income | (78410) | (27008) | (80859) | (11563) |
| &nbsp;&nbsp;Interest expense | 146026 | 229705 | 498048 | 71220 |
| &nbsp;&nbsp;Income tax expense (benefit) | 17959 | (1524) | (4203) | (601) |
| &nbsp;&nbsp;Depreciation and amortization | 940482 | 1263090 | 2480364 | 354687 |
| **Adjusted EBITDA (Non-GAAP Financial Measure)** | **(265064)** | **638917** | **2336420** | **334103** |
| &nbsp;&nbsp;Loss (gain) on disposal of property and equipment | 22996 | (44625) | (102243) | (14621) |
| **Excluding loss (gain) on disposal of property and equipment, normalized Adjusted EBITDA** | **(242068)** | **594292** | **2234177** | **319482** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Operating loss** | **(2108551)** | **(1739010)** | **(772913)** | **(110525)** |
| Adjustment: |  |  |  |  |
| &nbsp;&nbsp;Share-based compensation expenses | 181645 | 214441 | 446909 | 63907 |
| &nbsp;&nbsp;Impairment of long-lived assets | 653670 | 919724 |  |  |
| &nbsp;&nbsp;Amortization of intangible assets | 180459 | 173496 | 173765 | 24848 |
| **Adjusted operating profit (Non-GAAP Financial Measure)** | **(1092777)** | **(431349)** | **(152239)** | **(21770)** |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;Loss (gain) on disposal of property and equipment | 22996 | (44625) | (102243) | (14621) |
| **Excluding loss (gain) on disposal of property and equipment, normalized Adjusted operating loss profit** | **(1069781)** | **(475974)** | **(254482)** | **(36391)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | *(%)* | *(%)* | *(%)* |
| Net loss margin | (31.0) | (25.4) | (9.9) |
| Adjusted net loss margin (Non-GAAP Financial Measure) | (18.3) | (10.6) | (5.8) |
| Adjusted EBITDA margin (Non-GAAP Financial Measure) | (3.8) | 8.2 | 24.4 |
| Normalized Adjusted EBITDA margin | (3.4) | 7.6 | 23.4 |
| Adjusted operating loss margin (Non-GAAP Financial Measure) | (15.5) | (5.5) | (1.6) |
| Normalized Adjusted operating loss margin | (15.2) | (6.1) | (2.7) |

---

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**5. B.** **Liquidity and Capital Resources**

Kingsoft Cloud Holdings Limited is a holding company with no material operations of its own. The Company conducts its operations primarily through its PRC subsidiaries and the VIEs. As an offshore holding company, the Company is permitted under PRC laws and regulations to provide funding from the proceeds of its offshore fundraising activities to its PRC subsidiaries only through loans or capital contributions, and to the VIEs only through loans, in each case subject to the satisfaction of the applicable government registration and approval requirements. Notwithstanding the foregoing, the Company's PRC subsidiaries may use their own retained earnings (rather than Renminbi converted from foreign currency denominated capital), if any, to provide financial support to the VIEs either through entrustment loans from its PRC subsidiaries to the VIEs or direct loans to such VIEs' nominee shareholders, which would be contributed to the VIEs as capital injections. Such direct loans to the nominee shareholders would be eliminated in our consolidated financial statements against the VIEs' share capital.

In 2025, Kingsoft Cloud Holdings Limited and its subsidiaries made capital contribution amounted to RMB80.8 million (US$11.5 million) to the WFOEs. Beijing Kingsoft Cloud and Yunxiang Zhisheng, our PRC subsidiaries, provided the VIEs and their subsidiaries with technical support, consulting services and other services related to the business of VIEs and their subsidiaries, including business management, daily operations, strategic planning, among others.

As of December 31, 2024 and 2025, there were no outstanding balance owed by the VIEs to Kingsoft Cloud Holdings Limited and its subsidiaries under the VIE agreements, and there were no outstanding balance owed by Kingsoft Cloud Holdings Limited and its subsidiaries to the VIEs under the VIE agreements. In 2025, Kingsoft Cloud Holdings Limited and its subsidiaries provided loans amounted to RMB2,636.6 million (US$377.0 million) to the VIEs and repaid loans amounted to RMB100.0 (US$14.3 million), and the VIEs provided loans amounted to RMB50.0 million (US$7.1 million) to Kingsoft Cloud Holdings Limited and its subsidiaries. In 2025, the VIEs transferred RMB33.1 million (US$4.7 million) to our PRC subsidiaries for services provided. There were no other assets transferred between the VIEs and their subsidiaries and non-VIEs in 2025. For any amounts owed by the VIEs to Kingsoft Cloud Holdings Limited or our PRC subsidiaries under the contractual arrangements with the VIEs, unless otherwise required by PRC tax authorities, we are able to settle such amounts under the current effective PRC laws and regulations, provided that the VIEs have sufficient funds to do so.

Kingsoft Cloud Holdings Limited has not previously declared or paid any cash dividend or dividend in kind, and has no plan to declare or pay any dividends in the near future on our shares or the ADSs representing our ordinary shares. None of the VIEs or our PRC subsidiaries has issued any dividends or distributions to their respective parent companies, including Kingsoft Cloud Holdings Limited, or to any investors as of the date of this annual report. We currently intend to retain most, if not all, of our available funds and any future earnings to operate and expand our business. See "Item 8. Financial Information—8.A. Consolidated Statements and Other Financial Information—Dividend Policy."

For the purpose of illustration, the below table reflects the hypothetical taxes that might be required to be paid within China, assuming that: (i) we have taxable earnings, and (ii) we determine to pay a dividend in the future:

---

| | |
|:---|:---|
|  | **Taxation Scenario** <sup>(1)</sup><br>**Statutory Tax and Standard Rates** |
| Hypothetical pre-tax earnings<sup>(2)</sup> | 100% |
| Tax on earnings at statutory rate of 25% | (25)% |
| Net earnings available for distribution | 75% |
| Withholding tax at standard rate of 10%<sup>(3)</sup> | (7.5)% |
| Net distribution to Kingsoft Cloud Holdings Limited/Shareholders | 67.5% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(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.

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&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;(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.

The table above has been prepared under the assumption that all profits of the VIEs and their subsidiaries will be distributed as fees to our PRC subsidiaries under tax neutral contractual arrangements. If in the future, the accumulated earnings of the VIEs and their subsidiaries exceed the fees paid to our PRC subsidiaries, or if the current and contemplated fee structure between the intercompany entities is determined to be non-substantive and disallowed by Chinese tax authorities, we have other tax-planning strategies that can be deployed on a tax neutral basis.

Should all tax planning strategies fail, the VIEs and their subsidiaries could, as a matter of last resort, make a non-deductible transfer to our PRC subsidiaries for the amounts of the stranded cash in the VIEs and their subsidiaries. This would result in the double taxation of earnings: one at the VIE level (for non-deductible expenses) and one at the PRC subsidiary level (for presumptive earnings on the transfer). Such a transfer and the related tax burdens would reduce our after-tax income to approximately 50.63% of the pre-tax income. Our management is of the view that the likelihood that this scenario would happen is remote.

Kingsoft Cloud Holdings Limited's ability to pay dividends, if any, to its shareholders and ADS holders and to service any debt it may incur will depend upon dividends paid by our PRC subsidiaries. Under PRC laws and regulations, our PRC subsidiaries are subject to certain restrictions with respect to paying dividends or otherwise transferring any of their net assets offshore to Kingsoft Cloud Holdings Limited. In particular, under the current effective PRC laws and regulations, dividends may be paid only out of distributable profits. Distributable profits are the net profit as determined under PRC GAAP, less any recovery of accumulated losses and appropriations to statutory and other reserves required to be made. Each of our PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, after making up previous years' accumulated losses, if any, to fund certain statutory reserve funds, until the aggregate amount of such a fund reaches 50% of its registered capital. As a result, our PRC subsidiaries may not have sufficient distributable profits to pay dividends to us in the near future.

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Furthermore, if certain procedural requirements are satisfied, the payment of current account items, including profit distributions and trade and service related foreign exchange transactions, can be made in foreign currencies without prior approval from SAFE or its local branches. However, where RMB is to be converted into foreign currency and remitted out of China to pay capital expenses, such as the repayment of loans denominated in foreign currencies, approval from or registration with competent government authorities or its authorized banks is required. The PRC government may take measures at its discretion from time to time to restrict access to foreign currencies for current account or capital account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands, we may not be able to pay dividends in foreign currencies to our offshore intermediary holding companies or ultimate parent company, and therefore, our shareholders or investors in the ADSs. Further, we cannot assure you that new regulations or policies will not be promulgated in the future, which may further restrict the remittance of RMB into or out of the PRC. We cannot assure you, in light of the restrictions in place, or any amendment to be made from time to time, that our current or future PRC subsidiaries will be able to satisfy their respective payment obligations that are denominated in foreign currencies, including the remittance of dividends outside of the PRC. If any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict its ability to pay dividends to Kingsoft Cloud Holdings Limited. In addition, our PRC subsidiaries are required to make appropriations to certain statutory reserve funds, which are not distributable as cash dividends except in the event of a solvent liquidation of the companies.

#### Liquidity and Capital Resources

#### Cash flows and working capital
Our sources of liquidity primarily consist of cash generated from operating activities, net proceeds from the sale and issuance of our shares, and proceeds from financing facilities such as bank loans and related party loans and funds from other financial institutions, which have historically been sufficient to meet our working capital and capital expenditure requirements. Our cash and cash equivalents consist of cash on hand and time deposits placed with banks that have original maturities of less than three months and are unrestricted as to withdrawal or use, subject to any restrictions imposed by applicable laws and regulations, including restrictions on foreign exchange and the ability to transfer cash between entities, across borders and to U.S. investors. See "Item 4. Information on the Company—4.A. History and Development of the Company—Restrictions on Foreign Exchange and the Ability to Transfer Cash between Entities, Across Borders and to U.S. Investors." As of December 31, 2025, substantially all of our cash and cash equivalents were located in the Chinese Mainland and Hong Kong.

In the long term, we intend to finance our future working capital requirements and capital expenditures from cash generated from operating activities and funds raised from financing activities. We may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. If our existing cash is insufficient to meet our requirements, we may seek to issue debt or equity securities or obtain additional credit facilities. We have various measures to secure cash, if needed, including but not limited to maintaining prudent capital expenditures and operational expenses, obtaining additional credit facilities from banks and related parties in the normal course of business, re-financing certain existing loans and credit facilities, issuance of asset-backed debt securities and raising funds through additional issuances of equity and/or debt in public and/or private capital markets. However, financing may be unavailable in the amounts we need or on terms acceptable to us, if at all. Issuance of additional equity securities, including convertible debt securities, would dilute our earnings per share. The incurrence of debt would divert cash for working capital and capital expenditures to service debt obligations and could result in operating and financial covenants that restrict our operations and our ability to pay dividends to our shareholders. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer. See "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—We require a significant amount of capital to fund our operations and respond to business opportunities. If we cannot obtain sufficient capital on acceptable terms, or at all, our business, financial condition and results of operations may be materially and adversely affected."

Additionally, we have historically been loss-making, and we had been generating net operating cash inflows in 2024 and 2025. We generated net loss of RMB2,183.6 million, RMB1,979.0 million and RMB943.7 million (US$134.9 million) in 2023, 2024 and 2025, respectively. As of December 31, 2025, we had net current assets of RMB1,602.1 million (US$229.1 million), and an accumulated deficit of RMB15,247.9 million (US$2,180.4 million). We recorded net operating cash outflows of RMB169.1 million in 2023, and net operating cash inflows of RMB628.4 million and RMB3,801.0 million (US$543.5 million) in 2024 and 2025, respectively. If we are unable to achieve and sustain profitability, or if we experience net operating cash outflows again in the future, our business, liquidity, financial condition and results of operations may be materially and adversely affected. See "Item 3. Key Information—3.D. Risk Factor—Risks Relating to Our Business and Industry—We have a history of net loss and we may not be able to achieve or subsequently maintain profitability."

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Taking into account (i) the financial resources available to us, including RMB6,117.2 million (US$874.8 million) in cash and cash equivalents as of December 31, 2025, (ii) total financing facilities of RMB5,860.0 million (US$838.0 million) as of December 31, 2025, of which RMB1,088.7 million (US$155.7 million) were unutilized, as of March 31, 2025, (iii) our good track record of ability to obtain additional financing facilities from banks, financial institutions and strategic shareholders, evidenced by our historical fund-raising activities, and (iv) our plans to continue to enhance our financial performance, we believe we have sufficient working capital for our present cash requirements and for at least the next 12 months.

The following table presents our consolidated cash flow data for the periods presented.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Operating cash flows before movements in working capital | 225345 | 740345 | 2040286 | 291757 |
| Changes in operating assets and liabilities | (394415) | (111926) | 1760742 | 251783 |
| Net cash (used in) generated from operating activities | (169070) | 628419 | 3801028 | 543540 |
| Net cash used in investing activities | (673186) | (3620445) | (4529729) | (647743) |
| Net cash (used in) generated from financing activities | (227852) | 3255418 | 4182983 | 598159 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 25863 | (22772) | (67146) | (9601) |
| Net (decrease) increase in cash, cash equivalents and restricted cash | (1044245) | 240620 | 3387136 | 484355 |
| Cash, cash equivalents and restricted cash at beginning of the year | 3533726 | 2489481 | 2730101 | 390399 |
| **Cash, cash equivalents and restricted cash at end of the year** | **2489481** | **2730101** | **6117237** | **874754** |

---

In 2025, our principal sources of liquidity have been cash generated from financing activities and operating activities, as well as a follow-on public offering.

#### Operating Activities
Net cash generated from operating activities was RMB3,801.0 million (US$543.5 million) in 2025. The difference between our net loss of RMB943.7 million (US$134.9 million) and the net cash generated from operating activities was mainly due to (i) depreciation and amortization of RMB2,480.4 million (US$354.7 million), (ii) increase of amounts due to related parties of RMB2,300.4 million (US$328.9 million) related to operating activities, and (iii) provision for credit losses of RMB200.2 million (US$28.6 million).

Net cash generated from operating activities was RMB628.4 million in 2024. The difference between our net loss of RMB1,979.0 million and the net cash generated from operating activities was mainly due to (i) depreciation and amortization of RMB1,263.1 million, related to intangible assets recognized from the acquisition of Camelot, (ii) impairment of long-lived assets of RMB919.7 million, and (iii) provision for credit losses of RMB309.9 million.

Net cash used in operating activities was RMB169.1 million in 2023. The difference between our net loss of RMB2,183.6 million and the net cash used in operating activities was mainly due to (i) depreciation and amortization of RMB940.5 million, related to intangible assets recognized from the acquisition of Camelot, (ii) impairment of long-lived assets of RMB653.7 million, and (iii) provision for credit losses of RMB502.2 million.

#### Investing Activities
Net cash used in investing activities was RMB4,529.7 million (US$647.7 million) in 2025, which was mainly attributable to (i) purchase of property and equipment of RMB4,742.4 million (US$678.2 million) and (ii) purchase of short-term investments of RMB71.0 million (US$10.1 million).

Net cash used in investing activities was RMB3,620.4 million in 2024, which was mainly attributable to (i) purchase of property and equipment of RMB3,672.1 million and (ii) purchase of short-term investments of RMB90.0 million.

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Net cash used in investing activities was RMB673.2 million in 2023, which was mainly attributable to (i) purchase of property and equipment of RMB1,958.8 million and (ii) purchase of short-term investments of RMB550.2 million, partially offset by proceeds from maturities of short-term investments of RMB1,830.5 million

#### Financing Activities
Net cash generated from financing activities was RMB4183.0 million (US$598.2 million) in 2025, which was mainly attributable to (i) issuance of ordinary shares of RMB4,533.3 million (US$648.3 million), (ii) proceeds from short-term bank loans of RMB2,771.8 million (US$396.4million), and (iii) proceeds from long-term bank loans of RMB2,335.8 million (US$334.0 million), partially offset by (i) repayment of short-term bank loans of RMB2,330.6 million (US$333.3 million), (ii) repayment of loans due to related parties of RMB1,609.9 million (US$230.2 million), and (iii) principal repayments of financing leases of RMB820.0 million (US$117.3 million).

Net cash generated from financing activities was RMB3,255.4 million in 2024, which was mainly attributable to (i) proceeds from short-term borrowings of RMB2,465.9 million, and (ii) proceeds from loans due to related parties of RMB2,000.9 million, partially offset by (i) repayment of short-term borrowings of RMB1,318.4 million, and (ii) repayment of loans due to related parties of RMB1,077.4 million.

Net cash used in financing activities was RMB227.9 million in 2023, which was mainly attributable to (i) repayment of short-term bank loans of RMB963.0 million, (ii) repayment of loans due to related parties of RMB742.0 million, and (iii) modifications of financial liabilities arising from business combinations of RMB577.8 million, partially offset by (i) proceeds from short-term bank loans of RMB1,164.4 million, and (ii) proceeds from loans due to related parties of RMB900.0 million.

#### Material Cash Requirements
**Our material cash requirements as of December 31, 2025 and any subsequent interim period primarily include our capital expenditures, repayments of borrowings from third parties and related parties, lease obligations, and IDC costs. Other than those as discussed below, we did not have any significant capital and other commitments, long-term obligations or guarantees as of December 31, 2025.**

#### Capital Expenditures
Our capital expenditures including those financed by third parties are incurred primarily in connection with purchases of property and equipment, and intangible assets. Our capital expenditures including those financed by third parties were RMB1,964.7 million, RMB4,124.7 million and RMB4,994.3 million (US$714.2 million), in 2023, 2024 and 2025, respectively. Our purchases of property and equipment were RMB1,958.8 million, RMB3,672.1 million and RMB4.742.4 million (US$678.2 million), accounting for 99.7%, 89.0% and 95.0% of our capital expenditures, including those financed by third parties in 2023, 2024 and 2025, respectively. We intend to fund our future capital expenditures with an existing cash balance, cash generated from operating activities, and financing activities. We will continue to make capital expenditures to meet the expected growth of our business.

#### Contractual Obligations
**As of December 31, 2025, we had short-term third party borrowings of RMB3,348.3 million (US$478.8 million), with fixed annual interest rates ranging from 2.50% to 6.12%. As of December 31, 2025, we had long-term third party borrowings of RMB3,023.5 million (US$432.4 million), with fixed annual interest rates ranging from 2.50% to 6.12%.**

**As of December 31, 2025, our loans from related parties were RMB559.8 million (US$80.1 million). We entered into several loan agreements with weighted average interest rates of 6.70% with Xiaomi Group, which are secured by our electronic equipment (the "Xiaomi Loans"). As of December 31, 2025, the current portion and non-current portion of the Xiaomi Loans was RMB265.7 million (US$38.0 million) and RMB294.1 million (US$42.1 million), respectively, which will be repaid within the terms of 12 months and 24 months, respectively.**

**As of December 31, 2025, our operating lease liabilities were RMB92.1 million (US$13.2 million). Our operating leases mainly related to office space and buildings. As of December 31, 2025, the weighted average remaining lease term was 9.4 years and the weighted average discount rate was 5.96% for our operating leases.**

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**As of December 31, 2025, our financial lease liabilities were RMB3,820.8 million (US$546.4 million). Our financial leases mainly related to electronic equipment and data center machinery and equipment. As of December 31, 2025, the weighted average remaining lease term was 3.5 years and the weighted average discount rate was 5.16% for our financial leases.**

**In October 2022, we entered into share purchase agreements with the non-controlling shareholders of Camelot Technology to acquire an aggregate of 9.50% of equity interests in Camelot Technology for a total cash consideration of RMB456.0 million. As of December 31, 2025, the transaction was completed and all payments have been settled.**

**In 2025, we entered into two non-cancelable internet data center service agreements pursuant to which we have total contractual minimum purchase commitments amounting to RMB1,280.0 million (US$183.0 million). As of December 31, 2025, the remaining purchase commitment is RMB587.2 million (US$84.0 million).**

#### Holding Company Structure
Kingsoft Cloud Holdings Limited is a holding company with no material operations of its own. We conduct our operations primarily through our PRC subsidiaries and the consolidated VIEs. As a result, our ability to pay dividends depends upon dividends paid by our subsidiaries. If our subsidiaries or any newly formed subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us.

In addition, our subsidiaries in China are permitted to pay dividends to us only out of their retained earnings. In accordance with PRC company laws, the consolidated VIEs and PRC subsidiaries in China must make appropriations from their after-tax profit to fund certain statutory reserve funds until such reserve funds reach 50% of their respective registered capital. In addition, each of our PRC subsidiaries and the consolidated VIEs may allocate a portion of its after-tax profits to a discretionary surplus fund at its discretion. Remittance of dividends by our PRC subsidiaries out of China is subject to examination by the banks designated by SAFE.

As an offshore holding company, we are permitted under PRC laws and regulations to provide funding from the proceeds of our offshore fundraising activities to our PRC subsidiaries only through loans or capital contributions, and to our consolidated affiliated entity only through loans, in each case subject to the satisfaction of the applicable government registration and approval requirements. See "Item 3. Key Information—3.D. Risk Factor—Risks Relating to Doing Business in China—PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay us from using the proceeds of our offshore securities offerings to make loans or additional capital contributions to our PRC subsidiaries and from making loans to the VIEs, which could materially and adversely affect our liquidity and our ability to fund and expand our business". As a result, there is uncertainty with respect to our ability to provide prompt financial support to our PRC subsidiaries and consolidated VIEs when needed. Notwithstanding the foregoing, our PRC subsidiaries may use their own retained earnings (rather than Renminbi converted from foreign currency denominated capital) to provide financial support to our consolidated affiliated entity either through entrustment loans from our PRC subsidiaries to the consolidated VIEs or direct loans to such consolidated affiliated entity's nominee shareholders, which would be contributed to the consolidated variable entity as capital injections. Such direct loans to the nominee shareholders would be eliminated in our consolidated financial statements against the consolidated affiliated entity's share capital.

**5. C.** **Research and Development**

Our vision and focus on innovation have fueled our growth and enabled us to deliver our products and services. We allocate a substantial portion of our operating expenses to research and development, including upgrading our infrastructure, improving our cloud technology and developing new products and solutions. See "Item 4. Information on the Company—4.B. Business Overview—Research and Development" and "Item 4. Information on the Company—4.B. Business Overview—Intellectual Property."

**5. D.** **Trend Information**

Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for the year ended December 31, 2025 that are reasonably likely to have a material and adverse effect on our net revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future results of operations or financial condition.

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**5. E.** **Critical Accounting Estimates**

Our consolidated financial statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Our estimates are based on historical experience and various assumptions that we believe to be reasonable under the circumstances. Given that changes in circumstances, facts and experience may cause us to revise our estimates, actual results could differ materially from those estimates. Our critical accounting estimates are described below. See Note 2 to our consolidated financial statements for the year ended December 31, 2025 for more information on our critical accounting policies.

#### Goodwill
We test goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (component level) as determined by the availability of discrete financial information that is regularly reviewed by operating segment management or an aggregate of component levels of an operating segment having similar economic characteristics. If the carrying value of a reporting unit (including the value of goodwill) is greater than its estimated fair value, an impairment charge would be recorded for the amount that the carrying amount of the reporting unit exceeded its fair value. We have two reporting units, consisting of Cloud service and solutions and Cloud-based digital solutions and services.

In 2024 and 2025, we performed quantitative assessment for the goodwill allocated to Cloud service and solutions reporting unit The fair value of this reporting unit has been determined using the discounted cash flow approach with the assistance of an independent third-party valuation firm. Significant assumptions used included projected revenue growth rates for public cloud services revenue, IDC costs and discount rate. As of December 31, 2025, the fair value of the Cloud service and solutions reporting unit amounted to RMB8,619.0 million (US$1,232.5 million) exceeded its carrying amount by RMB1,837.2 million (US$262.7 million) or 27%. No impairment losses were recognized for the years ended December 31, 2024 and 2025.

The following table sets forth the range of significant assumptions used in the goodwill impairment assessment of Cloud service and solutions reporting unit as of September 30, 2024 and December 31, 2025:

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| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2024** | **December 31,** <br>**2025** |
| Projected public cloud services revenue growth rates | 6.79%-21.16 | 1.77%-24.80 |
| Projected IDC costs as a percentage of public cloud services revenue | 42.00%-58.08 | 36.78%-40.03 |
| Discount rate | 12.5% | 11.4% |

---

Changes in projected public cloud services revenue growth rates reflect the Group's renewed business plan to optimize its business mix, by focusing on the development of AI business. Changes in the projected IDC costs as a percentage of public cloud services revenue demonstrate higher margin resulting from improving business mix, and the Group's proactive cost-control strategies of price negotiation with IDC service providers. Changes in discount rate primarily resulted from adjustments made to the company risk premium.

A sensitivity analysis of the goodwill impairment shows that, with all other variables hold constant, a reasonably possible change in key parameters would not cause the carrying amount of the Cloud service and solutions reporting unit to exceed its fair value. Future changes to our estimates and assumptions based upon changes in operating results, macro-economic factors or management's intentions may result in future changes to the fair value of our reporting units.

In 2024 and 2025, we performed qualitative and quantitative assessment for the goodwill allocated to Cloud-based digital solutions and services reporting unit. The fair value of this reporting unit has been determined using the discounted cash flow approach with the assistance of an independent third-party valuation firm. Significant assumptions used included projected revenue growth rates, gross margin and discount rate. As of December 31, 2025, the fair value of the Cloud-based digital solutions and services reporting unit amounted to RMB2,854.0 million (US$408.1 million) exceeded its carrying amount by RMB322.7 million (US$46.1 million) or 13%. No impairment losses were recognized for the years ended December 31, 2024 and 2025.

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The following table sets forth the range of significant assumptions used in the goodwill impairment assessment of Cloud-based digital solutions and services reporting unit as of December 31, 2024 and 2025:

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| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
| Projected revenue growth rates | 7.94%-14.43 | 11.78%-17.11 |
| Projected gross margin  | 19.17%-19.22 | 16.96%-17.09 |
| Discount rate | 12.5% | 12.5% |

---

Changes in projected revenue growth rates due to the growth in the scale of the businesses of our customers. Changes in projected gross margin reflect more stringent cost reduction and efficiency strategies adopted by our customers.

A sensitivity analysis of the goodwill impairment shows that, with all other variables hold constant, a reasonably possible change in the significant assumptions would not cause the carrying amount of the reporting units to exceed their fair value. Future changes to our estimates and assumptions based upon changes in operating results, macro-economic factors or management's intentions may result in future changes to the fair value of our reporting units.

#### Impairment of long-lived assets
We evaluate our long-lived assets for impairment whenever events or changes in circumstances, indicate that the carrying amount of long-lived assets in an asset group may not be fully recoverable. When these events occur, we evaluate the recoverability of our long-lived assets by comparing the carrying amount of our assets to the future undiscounted cash flows expected to result from the use of our assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of our assets, we recognize an impairment loss based on the excess of the carrying amount of our assets over their fair value.

In consideration of the continuous operating losses of the public cloud asset group, we performed recoverability tests and the results indicated that long-lived assets associated with the public cloud asset group were not recoverable during the year ended December 31, 2024. As the estimated fair value of these assets was below their carrying value, we recognized RMB919.7 million impairment losses for the year ended December 31, 2024. We determine the fair value of the asset group using the discounted cash flows method with the assistance of an independent third- party valuation firm. The significant assumptions used included revenue growth rates for public cloud services revenue, IDC costs and discount rate.

We performed recoverability tests during the year ended December 31, 2025, as a result of the impairment assessment, no impairment losses were recognized.

The discounted cash flows method used in calculating the fair value of the asset group is a widely used valuation model. The following table sets forth the range of significant assumptions used in long-lived assets impairment assessment as of September 30, 2024 and December 31, 2025:

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| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2024** | **December 31,** <br>**2025** |
| Projected public cloud services revenue growth rates | 8.20%-21.16 | (2.39%)-15.65 |
| Projected IDC costs as a percentage of public cloud services revenue | 42.96%-58.08 | 28.82%-43.65 |
| Discount rate | 12.5% | N/A% |

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**ITEM 6** **DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**6. A.** **Directors and Senior Management**

The following table sets forth information regarding our executive officers and directors as of the date of this annual report.

---

| | | |
|:---|:---|:---|
| **Directors and Executive Officers** | **Age** | **Position/Title** |
| Tao Zou | 50 | Chairman of the Board, Executive Director and Acting Chief Executive Officer |
| Heng Qu | 44 | Director |
| Duo Zhang | 41 | Director |
| Ming-to Yu | 63 | Independent Director |
| Hang Wang | 54 | Independent Director |
| Jingyuan Qu | 53 | Independent Director |
| Yi Li | 47 | Chief Financial Officer |
| Tao Liu | 44 | Senior Vice President |
| Kaiyan Tian | 48 | Vice President |

---

*Tao Zou* is the chairman of the board, our executive director and acting CEO. Mr. Zou joined Kingsoft Group in 1998. Mr. Zou was appointed as our director in December 2016 and our acting CEO in August 2022. Mr. Zou has held various senior positions in Kingsoft Group, including a senior vice president from December 2007 to December 2016, an executive director since August 2009, and the chief executive officer since December 2016. Mr. Zou is also a director of certain subsidiaries of Kingsoft Group. Mr. Zou is a director of Seasun Holdings Limited, and chairman of Kingsoft Office (SSE STAR Market: 688111). Mr. Zou also served as a director of Xunlei Limited (Nasdaq: XNET) from December 2016 to April 2020 and a director of 21Vianet Group, Inc. (Nasdaq: VNET) from December 2016 to December 2020, and a director of Cheetah Mobile Inc. (NYSE: CMCM) from December 2016 to June 2024. Mr. Zou has served as the acting CEO of Seasun Holdings Limited since December 2025. Mr. Zou graduated from Nankai University in June 1997*.*

*Heng Qu* has been our director since March 2026. He is currently a vice president and chairman of the group technology committee of Xiaomi Corporation (HKEX: 1810 (HKD counter) and 81810 (RMB counter)). He joined Xiaomi Corporation in 2010 and served as the general manager of the ecosystem department of Xiaomi Corporation from 2018 to 2023. Prior to this, he served successively as an engineer, development manager, and project manager of Beijing Kingsoft Corporation Limited from 2005 to 2010. Mr. Qu graduated from the Department of Computer Science and Engineering of Beihang University in 2003 and received a master's degree in Computer Science and Engineering from Harbin Institute of Technology in 2013.

*Duo Zhang* has been our director since June 2025. Mr. Zhang has served as the general manager of infrastructure technology platform department and head of the artificial intelligence platform department of Xiaomi Corporation (HKEX: 1810 (HKD counter) and 81810 (RMB counter)) since September 2024. He joined Xiaomi Corporation in 2016 and served successively as head of the storage platform department, head of infrastructure components department and the chairman of the open-source committee. From May 2021 to August 2024, he served as head of the infrastructure Research & Development department and the principal architect of Sensors Network Technology (Beijing) Co., Ltd. Mr. Zhang received his master's degree and bachelor's degree in Computer Science and Technology from Tsinghua University in the PRC in 2010 and 2007, respectively*.*

*Ming-to Yu* has been an independent director since May 2020. From August 2019 to June 2023, Mr. Yu served as the vice chairman of Egis Technology Inc. (6462.TWO), a capacitive and lens type fingerprint sensors service provider and a public company listed on Taiwan OTC Exchange. Prior to that, Mr. Yu served as the president at Kaiyu Consulting Inc. from July 2013 to September 2019, the chief financial officer at Xiaomi Corporation (HKEX: 1810) from October 2011 to November 2012 and at Mediatek Inc. (2454.TW), a public company listed on the Taipei Stock Exchange, from 2001 to 2010. Mr. Yu received an MBA degree from the Wharton School, University of Pennsylvania in May 1995*.*

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*Hang Wang* has been an independent director since May 7, 2020. Mr. Wang is the founding partner of Hosen Capital, a Chinese private equity firm focusing on food and consumer sectors since he co-founded it in March 2010. Mr. Wang also serves as the vice chairman of the board of New Hope Group, a private enterprise group mainly engaged in modern agriculture and food industry, since 2012. Prior to that, he served as the chief operation officer of its finance department from 2001 to 2004 and its vice president from 2004 to 2012 since he joined New Hope Group in 2001. Mr. Wang also served as a director of New Hope Liuhe Co., Ltd. (SZSE: 000876), a company listed on the Shenzhen Stock Exchange, from November 2011 to April 2025. From July 2006 to October 2020, Mr. Wang first served as a non-executive director and then a supervisor of China Minsheng Banking Corp., Ltd. (the "Minsheng Bank") (HKEX: 1988; SSE: 600016), a company listed on both the Stock Exchange and Shanghai Stock Exchange. Mr. Wang also serves as the vice chairman of the board of CMBC International Holdings Limited, a wholly-owned subsidiary of Minsheng Bank since March 2015. Mr. Wang obtained his bachelor's degree and master's degree in economics from Peking University in July 1992 and July 1996, respectively*.*

*Jingyuan Qu* was appointed as an independent director on April 14, 2022. Ms. Qu has been the founding partner of Dajishi (Beijing) Technology Co., Ltd. since December 2019. Prior to that, Ms. Qu worked at Matrix Partners China as a director from May 2015 to May 2017 and a capital market consultant from May 2017 to March 2021. Between March 2007 and May 2015, Ms. Qu was the director and deputy general manager at Baofeng Group Co., Ltd. and was responsible for its financial reporting. She served as the manager of financial department and the financial director between March 2000 and August 2006 at Beijing Kingsoft Software Co., Ltd.. From February 2017 to April 2022, Ms. Qu served as an independent non-executive director of Kingsoft Office (SSE STAR Market: 688111), a public company listed on Shanghai Stock Exchange and served as an independent non-executive director of Chengdu Xgimi Technology Co., Ltd. (SSE STAR Market: 688696), a public company listed on Shanghai Stock Exchange from June 2019 to April 2021. Ms. Qu obtained the accounting qualification certificate conferred by Ministry of Finance of PRC in May 1996. Ms. Qu received her bachelor's degree in accounting from Shandong Technology and Business University in July 1993 and the degree of EMBA from China Europe International Business School in October 2013.

*Yi Li* is our chief financial officer and is responsible for the Group's financial affairs. Ms. Li is currently the acting chief financial officer, a vice president and the finance director of Kingsoft Corporation. She joined Kingsoft Corporation in 2007 and since then has been responsible for Kingsoft Corporation's financial affairs. Prior to joining Kingsoft Corporation, Ms. Li engaged in consulting and auditing work in accounting firms. Ms. Li possesses extensive management experience in comprehensive financial management, investment and financing management and financial organization capability building. Ms. Li holds a master's degree and is a member of the Association of Chartered Certified Accountants.

*Tao Liu* is our senior vice president and is responsible for the operation and management of general internet business system of the Group. Prior to joining us in July 2015, Dr. Liu served as a data center architect at Baidu, Inc. (Nasdaq: BIDU), a public company listed on the Nasdaq, from July 2009 to July 2015. Dr. Liu received his bachelor's degree in communication and information system in June 2004 and PhD degree in June 2009, respectively, from the University of Science and Technology of China.

*Kaiyan Tian* is currently our vice president and is responsible for operation and management of technology research and development system of the Group. Mr. Tian is also a director and the general manager of certain subsidiaries of the Company. Prior to joining us in September 2013, Mr. Tian served as the business assistant to the chief executive officer and the strategy director of Kingsoft Group from 2012 to 2013. Prior to joining Kingsoft Group, he worked as a senior game producer at Zynga from January 2012 to August 2012. He was a program manager at Microsoft Corporation (Nasdaq: MSFT), a public company listed on the Nasdaq, from January 2008 to April 2011. Mr. Tian received his bachelor's degree in communication engineering in July 2001 and master's degree in computer science and technology in April 2004, respectively, from Beijing University of Posts and Telecommunications.

**6. B.** **Compensation**

#### Compensation of Directors and Executive Officers
For the fiscal year ended December 31, 2025, we paid an aggregate of RMB10.8 million (US$1.5) million in cash to our executive officers, and we paid an aggregate of RMB2.4 million (US$344 thousand) thousand to our directors. We have not set aside or accrued any amount to provide pension, retirement or other similar benefits to our directors and executive officers. Our PRC subsidiaries and the VIEs are required by law to make contributions equal to certain percentages of each employee's salary for his or her pension insurance, medical insurance, unemployment insurance and other statutory benefits and a housing provident fund. For share incentive grants to our directors and executive officers, see "—Share Incentive Plan."

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#### Employment Agreements and Indemnification Agreements
We have entered into employment agreements with each of our executive officers. Each of our executive officers is employed for an indefinite duration until the employment is terminated pursuant to the employment agreement or as mutually agreed between the executive officer and us. We may terminate an executive officer's employment for cause at any time without advance notice in certain events. Save for certain exceptions, either we or the executive officer may terminate the employment at any time by giving a prior written notice.

Each executive officer has agreed to hold, unless expressly consented to by us, at all times during and after the termination of his or her employment agreement, in strict confidence and not to use, any of our confidential information or the confidential information of our customers and suppliers. In addition, each executive officer has agreed to be bound by certain noncompetition and nonsolicitation restrictions during the term of his or her employment and 12 months after the termination of the employment.

We have also entered into indemnification agreements with each of our directors and executive officers. Under these agreements, we agree to indemnify our directors and executive officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being a director or officer of our company.

#### Share Incentive Plan

#### 2021 Share Incentive Plan
We adopted a share incentive plan, or the 2021 Share Incentive Plan, on November 15, 2021 and amended on December 20, 2022 with such amendments that took effect immediately upon listing by way of introduction on the Main Board of SEHK (the "**Hong Kong Listing**"). The purpose of the 2021 Share Incentive Plan is to promote the success and enhance the value our company, by linking the personal interests of the members of the Board, employees, and consultants to those of our company's shareholders and by providing such individuals with an incentive for outstanding performance to generate superior returns to our company's shareholders. The 2021 Share Incentive Plan is further intended to provide flexibility to our company in its ability to motivate, attract, and retain the services of members of the Board, employees, and consultants upon whose judgment, interest, and special effort the successful conduct of our company's operation is largely dependent. Under the 2021 Share Incentive Plan (as amended), the maximum aggregate number of ordinary shares available for exercise is 380,528,480. As of March 31, 2026, the number of underlying shares pursuant to the outstanding RSUs granted under the 2021 Share Incentive Plan amounted to 184,256,012 shares.

The following paragraphs summarize the terms of the 2021 Share Incentive Plan.

***Types of Awards****.* The 2021 Share Incentive Plan permits the awards of restricted share units and share options and other type of shares or other types of awards or benefit authorized to be granted under the 2021 Share Incentive Plan.

***Eligibility***. Persons eligible to participate in the 2021 Share Incentive Plan include any individual or entity, who is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an employee (whether full-time or part-time), director or officer of any member of our Group, including persons who are granted awards under the 2021 Share Incentive Plan as an inducement to enter into employment contracts with any member of our Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an employee (whether full-time or part-time), director or officer of: (i) a holding company; (ii) subsidiaries of the holding company other than members of our Group; or (iii) any company which is an associate of our company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) providing services to our Group on a continuing or recurring basis in its ordinary and usual course of business which are in the interests of the long-term growth of our Group; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) trusts or entities established in connection with any employee benefit plan of the Company (including the 2021 Share Incentive Plan) for the benefit of a participant as determined by the Board or the its delegate(s) from time to time to be entitled to participate in the 2021 Share Incentive Plan.

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***Administration***. The 2021 Share Incentive Plan shall be administrated by the administrator, which is the compensation committee or one or more executive officers of our company to whom the Board or the compensation committee delegates the authority to grant awards to participants.

***Award Agreement***. Subject to any specific designation in the 2021 Share Incentive Plan, each award shall be designated in an award agreement between the participant and the Company (the "Award Agreement"). Each award shall be subject to all applicable terms and conditions of the 2021 Share Incentive Plan and set forth the terms, conditions and limitations for each award, which may include the term of the award, and the provisions applicable in the event of termination of services of the grantee.

***Non-transferability of Awards****.* Unless otherwise determined by the administrator and provided in the applicable Award Agreement, an award shall not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner (whether by operation of law or otherwise) prior to the Hong Kong Listing. After the Hong Kong Listing, awards granted under the 2021 Share Incentive Plan must be personal to the respective participant. No awards may be transferred or assigned unless in accordance with a waiver is granted by the SEHK under certain conditions. However, upon the Hong Kong Listing, any share options granted under the 2021 Share Incentive Plan must be personal and no share options may be transferred or assigned.

***Termination***. The 2021 Share Incentive Plan shall terminate on the earlier of (a) the expiry of the term of ten years; and (b) such date of early termination as determined by the Board, following which no further awards will be offered or granted thereunder, provided that notwithstanding such termination, the 2021 Share Incentive Plan and rules thereof shall continue to be valid and effective to the extent necessary to give effect to the vesting and exercise of any awards granted prior to the termination of the 2021 Share Incentive Plan and such termination shall not affect any subsisting rights already granted to any grantee thereunder.

#### 2013 Share Option Scheme
We adopted an employee share option scheme, or the 2013 Share Option Scheme, on February 27, 2013, as amended on June 27, 2013, May 20, 2015 and December 26, 2016. The purpose of the 2013 Share Option Scheme is to provide incentives or rewards to participants thereunder for their contribution to our company and its directly or indirectly owned subsidiaries and/or to enable our company and its directly or indirectly owned subsidiaries to recruit and retain high-caliber employees and attract human resources that are valuable. Under the 2013 Share Option Scheme, the maximum aggregate number of ordinary shares available for exercise is 209,750,000. As of March 31, 2026, the number of underlying shares pursuant to the outstanding share options granted under the 2013 Share Option Scheme amounted to 12,991,496 shares.

The following paragraphs summarize the terms of the 2013 Share Option Scheme.

***Eligible participants***. Employees, whether full time or part time, of our company, its subsidiaries or any invested entities are eligible to participate in the 2013 Share Option Scheme.

***Subscription price***. The subscription price in respect of any particular option shall be such price as determined by the board in its absolute discretion at the time of the making of the offer (which shall be stated in the offer letter) but in any case the subscription price of options granted after our company or Kingsoft Group has resolved to seek a separate initial public offering and up to the date of our company's initial public offering must not be lower than the new issue price in its initial public offering. In particular, any options granted during the period commencing six months before the lodgment of Form A1 (or its equivalent) up to the date of our company's initial public offering are subject to this requirement. The subscription price of options granted during such period shall be subject to adjustment to a price not lower than the new issue price in our initial public offering.

***Administration***. The 2013 Share Option Scheme shall be administrated by the board of our company and Kingsoft Group.

***Vesting schedule***. The board shall determine the schedule for the vesting of shares comprised in the option on the offer date.

***Lapse of options***. An option issued under the scheme shall lapse automatically under certain circumstances, including, but not limited to, the expiry of the option period, ceasing to be a participant and commencement of the winding-up of our company.

***Transfer restrictions***. An option shall be personal to the grantee and not be assignable and no grantee shall in any way sell, transfer, charge, mortgage, encumber or create any interest in favor of any third party over or in relation to any option.

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***Termination***. We may by resolution in a general meeting at any time terminate the operation of the 2013 Share Option Scheme. Options (to the extent not already exercised) granted prior to such termination shall continue to be valid and exercisable in accordance with the 2013 Option Scheme.

The 2013 Share Option Scheme shall be valid and effective for a period of ten years from February 27, 2013. As of the date of this annual report, the duration of the 2013 Share Option Scheme has expired but the provisions thereof shall remain in full force and effect to the extent necessary to give effect to the exercise of any options (to the extent not already exercised) granted prior to the termination or otherwise as may be required in accordance with the provisions of this scheme.

#### 2013 Share Award Scheme
We adopted an employee share award scheme, or the 2013 Share Award Scheme, on February 22, 2013, as amended on January 9, 2015, March 3, 2016, June 8, 2016, December 7, 2018 and November 6, 2019. The purpose of the 2013 Share Award Scheme is to provide incentives or rewards to selected employees for their contribution and/or to enable us to recruit and retain high-caliber employees and attract human resources that are valuable. Under the 2013 Share Award Scheme, the maximum aggregate number of ordinary shares which may be issued upon exercise of all awards to be granted thereunder is 215,376,304 ordinary shares. As of March 31, 2026, the number of underlying shares pursuant to the outstanding share awards granted under the 2013 Share Award Scheme amounted to 11,317,093 shares.

The following paragraphs summarize the terms of the 2013 Share Award Scheme.

***Types of awards***. The 2013 Share Award Scheme provides for the award of our ordinary shares by the board subject to certain terms and conditions as it may think fit to selected employees.

***Award notice***. Our company shall inform the selected employees by written notice in such form as our company may from time to time determine requiring the selected employees to undertake to hold the award on the terms on which it is to be granted and to be bound by the rules of the 2013 Share Award Scheme.

***Eligibility***. Employees, whether full time or part time, of our company, its subsidiaries or any entity in which the Company and its owned subsidiaries holds any equity interest are eligible to participate in the 2013 Share Award Scheme.

***Plan administration***. The 2013 Share Award Scheme shall be administrated by the board of our company.

***Lapse of the awards***. An award will automatically lapse if (i) a selected employee ceases to be an eligible employee, (ii) a selected employee is found to be an excluded employee, (iii) a selected employee has breached the 2013 Share Award Scheme or any exhibit hereof in any material respect, (iv) the company by which a selected employee is employed ceases to be a member of the group or any entity in which the group holds any equity interest or (v) an order for the winding-up of our company is made or a resolution is passed for the voluntary winding-up of our company.

***Transfer restrictions***. Any award made under the 2013 Share Award Scheme shall be personal to the selected employee to whom it is made and shall not be assignable and no selected employee shall in any way sell, transfer, assign, charge, mortgage, encumber or create any interests in favor of any other third party over or in relation to either the award referable to him pursuant to such award (regardless of whether it has been vested) or any beneficial interest therein.

***Termination***. The 2013 Share Award Scheme will terminate on the earliest of (i) the end of February 21, 2023, being the day before the 10th anniversary of the adoption date, (ii) the date when an order for the winding-up of our company is made or a resolution is passed for the voluntary winding-up of our company (otherwise than for the purposes of an amalgamation, reconstruction or scheme of arrangement) and (iii) such date of early termination as determined by the Board, unless terminated at an earlier date by our board of directors.

The 2013 Share Award Scheme shall be valid and effective for a period of ten years from February 22, 2013. As of the date of this annual report, the 2013 Share Award Scheme has expired but the provisions thereof shall remain in full force and effect to the extent necessary to give effect to any awarded shares not vested but granted prior to the termination of this scheme or otherwise as may be required in accordance with the provisions of this scheme.

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The following table summarizes, as of March 31, 2026, the number of ordinary shares under outstanding options and awards that we granted to our directors and executive officers:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Ordinary Shares**<br>**Underlying**<br>**Share-Based**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Awards Granted** | <br>**Exercise Price** <br>**(US$/Share)** | <br>**Date of Grant** | <br>**Date of Expiration** |
| Tao Zou |  |  |  |  |
| Heng Qu |  |  |  |  |
| Duo Zhang |  |  |  |  |
| Ming-to Yu |  |  |  |  |
| Hang Wang |  |  |  |  |
| Jingyuan Qu |  |  |  |  |
| Yi Li |  |  |  |  |
| Tao Liu |  |  |  |  |
| Kaiyan Tian | 1200000 | 0.0742 | April 15, 2018 | January 1, 2028 |
| **All directors and executive officers as a group** | **1200000** | **0.0742** |  |  |

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As of March 31, 2026, our employees other than members of our senior management as a group hold (i) outstanding options to purchase 11,791,496 ordinary shares, with exercise prices ranging from US$0.001 per share to US$0.07422 per share, and (ii) 192,870,365 outstanding awards.

For discussions of our accounting policies and estimates for options and awards granted pursuant to the 2021 Share Incentive Plan, 2013 Share Option Scheme and the 2013 Share Award Scheme, respectively, see Note 2 to our consolidated financial statements for more information on our critical accounting policies.

**6. C.** **Board Practices**

#### Board of directors
Our board of directors consists of seven directors, including three independent directors, namely Mr. Ming-to Yu, Mr. Hang Wang and Ms. Jingyuan Qu. A director is not required to hold any shares in our company to qualify to serve as a director. The Listing Rules of the Nasdaq generally require that a majority of an issuer's board of directors must consist of independent directors. However, the Listing Rules of the Nasdaq permit foreign private issuers like us to follow "home country practice" in certain corporate governance matters. We rely on this "home country practice" exception and do not have a majority of independent directors serving on our board of directors.

A director may vote with respect to any contract, proposed contract, or arrangement in which he or she is materially interested, provided (1) such director, if his interest in such contract or arrangement is material, has declared the nature of his interest at the earliest meeting of the board at which it is practicable for him to do so, either specifically or by way of a general notice and (2) if such contract or arrangement is a transaction with a related party or such transaction would reasonably be likely to affect a director's status as an independent director, such transaction has been approved by the audit committee. A director may exercise all the powers of the company to borrow money, mortgage its business, property and uncalled capital, and issue debentures or other securities whenever money is borrowed or as security for any obligation of the company or of any third party. None of our directors has a service contract with us that provides for benefits upon termination of service as a director.

#### Committees of the Board of Directors
We have established an audit committee, a compensation committee, a nomination committee and a corporate governance committee under our board of directors. We have adopted a charter for each of the four committees. Each committee's members and functions are described below.

***Audit Committee.*** Our audit committee consists of Mr. Ming-to Yu, Mr. Hang Wang and Ms. Jingyuan Qu and is chaired by Mr. Ming-to Yu. We have determined that Mr. Ming-to Yu, Mr. Hang Wang and Ms. Jingyuan Qu satisfy the "independence" requirements of Rule 5605(c)(2) of the Listing Rules of the Nasdaq and meet the independence standards under Rule 10A-3 under the Securities Exchange Act of 1934, as amended.

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We have determined that Mr. Ming-to Yu qualifies as an "audit committee financial expert." The audit committee oversees our accounting and financial reporting processes and the audits of the financial statements of our company. The audit committee is responsible for, among other things:

● reviewing and recommending to our board for approval, the appointment, re-appointment or removal of the independent auditor, after considering its annual performance evaluation of the independent auditor;

● approving the remuneration and terms of engagement of the independent auditor and pre-approving all auditing and non-auditing services permitted to be performed by our independent auditors;

● evaluating the independent auditor's qualifications, performance and independence;

● reviewing with the independent registered public accounting firm any audit problems or difficulties and management's response;

● discussing with our independent auditor, among other things, the audits of the financial statements, including whether any material information should be disclosed, issues regarding accounting and auditing principles and practices;

● reviewing and approving all proposed related party transactions, as defined in Item 7 of Form 20-F;

● reviewing and recommending the financial statements for inclusion within our quarterly earnings releases and to our board for inclusion in our annual reports;

● discussing the annual audited financial statements with management and the independent registered public accounting firm;

● periodically reviewing and reassessing the adequacy of the committee charter;

● approving annual audit plans, and undertaking an annual performance evaluation of the internal audit function;

● meeting separately and periodically with management and the independent registered public accounting firm;

● monitoring compliance with our code of business conduct and ethics, and reporting such compliance to the board; and

● reporting regularly to the board.

***Compensation Committee.*** Our compensation committee consists of Mr. Heng Qu, Mr. Ming-to Yu and Ms. Jingyuan Qu, and is chaired by Ms. Jingyuan Qu. We have determined that Mr. Ming-to Yu and Ms. Jingyuan Qu satisfy the "independence" requirements of Rule 5605(c)(2) of the Listing Rules of the Nasdaq. The compensation committee assists the board in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors and executive officers. Our chief executive officer may not be present at any committee meeting during which his compensation is deliberated upon. The compensation committee is responsible for, among other things:

● overseeing the development and implementation of compensation programs in consultation with our management;

● reviewing and approving, or recommending to the board for its approval, the compensation for our executive officers;

● reviewing periodically and approving any incentive compensation or equity plans, programs or other similar arrangements;

● periodically reviewing and reassessing the adequacy of the committee charter;

● selecting compensation consultant, legal counsel or other adviser only after taking into consideration all factors relevant to that person's independence from management; and

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● reporting regularly to the board.

***Nomination Committee***. Our nomination committee consists of Mr. Tao Zou, Mr. Heng Qu, Mr. Ming-to Yu, Mr. Hang Wang and Ms. Jingyuan Qu, and is chaired by Mr. Tao Zou. We have determined that Mr. Ming-to Yu, Mr. Hang Wang and Ms. Jingyuan Qu satisfy the "independence" requirements of Rule 5605(c)(2) of the Listing Rules of the Nasdaq. The nomination committee assists the board in selecting individuals qualified to become our directors and in determining the composition of the board and its committees. The nominating and corporate governance committee is responsible for, among other things:

● recommending nominees to the Board for election or re-election to the Board, or for appointment to fill any vacancy on the Board;

● reviewing and evaluating the size, composition, function and duties of the Board consistent with its needs, and assisting the Board in maintaining a board skills matrix;

● reviewing candidates' qualifications for membership on the board or a committee of the Board based on the criteria approved by the Board;

● making recommendations to the Board as to determinations of director independence;

● reviewing and approve compensation (including equity-based compensation) for the directors;

● periodically reviewing and reassessing the adequacy of the committee charters;

● evaluating the performance and effectiveness of the Board as a whole; and

● assessing each director's time commitment and contribution to the Board, as well as the director's ability to discharge his or her responsibilities effectively, taking into account professional qualifications and work experience, existing directorships of listed companies (if any) and other significant external time commitments of such director and other factors or circumstances relevant to the director's character, integrity, independence and experience.

***Corporate Governance Committee*.** Our corporate governance committee consists of Mr. Tao Zou, Mr. Duo Zhang and Ms. Jingyuan Qu, and is chaired by Mr. Tao Zou. The corporate governance committee assists the board to exercise its business judgment to act in what they reasonably believe to be in the best interests of the Company and the shareholders, and also to ensure the compliance with the requirements under the Corporate Governance Code set out in Appendix 14 to the Hong Kong Listing Rules.

The corporate governance committee is responsible for, among other things:

● developing and reviewing the Company's policies and practices on corporate governance and make recommendations to the Board;

● reviewing and monitoring the training and continuous professional development of directors and our senior management;

● reviewing and monitoring the Company's policies and practices on compliance with the applicable legal and regulatory requirements;

● developing, reviewing and monitoring the code of conduct and compliance manual applicable to employees and directors;

● reviewing the Company's compliance with the Corporate Governance Code;

● reviewing and monitoring the Company's actions in furtherance of its ESG responsibilities and monitor its performance in ESG related matters;

● reviewing and monitoring the Company's policies and practices on the management of data security and the compliance with the applicable legal and regulatory requirements;

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● reviewing and monitoring whether the Company is operated and managed for the benefit of all of the Shareholders;

● seeking to ensure effective and ongoing communication between the Company and the Shareholders; and

● reporting on the work of the Corporate Governance Committee on an annual basis.

#### Duties of Directors
Under Cayman Islands law, our directors owe fiduciary duties to our company, including a duty of loyalty, a duty to act honestly, and a duty to act in what they consider in good faith to be in our best interests. Our directors must also exercise their powers only for a proper purpose. Our directors also owe to our company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his duties a greater degree of skill than what may reasonably be expected from a person of his knowledge and experience. However, English and Commonwealth courts have moved towards an objective standard with regard to the required skill and care, and these authorities are likely to be followed in the Cayman Islands. In fulfilling their duty of care to us, our directors must ensure compliance with our Articles, as amended and restated from time to time, and the class rights vested thereunder in the holders of the shares.

Our company may have the right to seek damages if a duty owed by our directors is breached. A shareholder may in certain limited exceptional circumstances have the right to seek damages in our name if a duty owed by the directors is breached.

Our board of directors has all the powers necessary for managing, and for directing and supervising, our business affairs. The functions and powers of our board of directors include, among others:

● convening shareholders' annual and extraordinary general meetings;

● declaring dividends and distributions;

● appointing officers and determining the term of office of the officers;

● exercising the borrowing powers of our company and mortgaging the property of our company; and approving the transfer of shares in our company, including the registration of such shares in our register of members.

#### Terms of Directors and Officers
Pursuant to the Articles, our officers will be appointed by and serve at the discretion of the board. Our directors shall hold office until the expiration of his term or until their successors are elected or appointed or until such time as they resign or are removed from office by ordinary resolution of our shareholders. Any director appointed by the board shall hold office only until the next following annual general meeting of the Company and shall then be eligible for re-election.

A director will be removed from office automatically if, among other things, the director (1) becomes of unsound mind or dies; (2) without special leave of absence from the board of directors of the Company, is absent from meetings of the board for three consecutive meetings and the board resolves that his office be vacated; (3) becomes bankrupt or has a receiving order made against him or suspends payment or compounds with his creditors; (4) is prohibited by law from being a director; or (5) ceases to be a director by virtue of any provision of the Companies Act or is removed from office pursuant to the Articles.

#### Interested Transactions
A director may, subject to any separate requirement for audit committee approval under applicable law, the memorandum and article of association or applicable Nasdaq rules, or disqualification by the chairman of the relevant board meeting, vote in respect of any contract or transaction in which he or she is interested, provided that the nature of the interest of any directors in such contract or transaction is disclosed by him or her at or prior to its consideration and any vote in that matter.

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**6. D.** **Employees**

We had 15,225 employees as of December 31, 2025, most of whom were located in China, and the rest were located overseas. The following table sets forth a breakdown of our employees by function as of December 31, 2025.

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| | | |
|:---|:---|:---|
| **Function** | **Number of**<br>**Employees** | <br>**Percentage** |
| Research and development | 1120 | 7.4% |
| Sales and marketing | 367 | 2.4% |
| General and administrative | 791 | 5.2% |
| Solution development and services | 12947 | 85.0% |
| **Total** | **15225** | **100%** |

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Our success depends on our ability to attract, retain and motivate qualified personnel, and we believe that our high-quality talent pool is one of the core strengths of our company. We adopt high standards and strict procedures in our recruitment, including campus recruitment, online recruitment, internal recommendation and recruitment through executive search, to satisfy our demands for different types of talents.

We provide regular and specialized training tailored to the needs of our employees in different departments. Our employees can also improve their skills through our development of solutions for our customers and mutual learning among colleagues. New employees will receive pre-job training and general training.

We offer competitive compensations for our employees. Besides, we regularly evaluate the performance of our employees and reward those who perform well with higher compensations or promotion.

As required by PRC laws and regulations, we participate in various employee social security schemes organized by municipal and provincial government, including pension, maternity insurance, unemployment insurance, work-related injury insurance, health insurance and housing provident fund. We are required under PRC laws and regulations to make contributions to employee social security schemes at specified percentages of the salaries, bonuses and certain allowances of our employees, up to a maximum amount specified by the local government from time to time.

We enter into standard contracts and agreements regarding confidentiality, intellectual property, employment, commercial ethics and non-competition with all of our executive officers and the vast majority of our employees. These contracts typically include a non-competition provision effective during and up to two years after their employment with us and a confidentiality provision effective during and after their employment with us.

None of our employees are currently represented by labor unions. We believe that we maintain a good working relationship with our employees.

**6. E.** **Share Ownership**

The following table sets forth information concerning the beneficial ownership of our ordinary shares as of March 31, 2026 by:

● each of our directors and executive officers;

● each person known to us to beneficially own more than 5% of our ordinary shares; and

● each selling shareholder.

The calculations in the table below are based on 4,490,544,972 ordinary shares outstanding as of March 31, 2026.

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Beneficial ownership is determined in accordance with the rules and regulations of the SEC. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, we have included shares that the person has the right to acquire within 60 days, including through the exercise of any option, warrant, or other right or the conversion of any other security. These shares, however, are not included in the computation of the percentage ownership of any other person.

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| | | |
|:---|:---|:---|
|  | **Ordinary Shares Beneficially Owned** | **Ordinary Shares Beneficially Owned** |
|  | **Number** | **%\*** |
| **Directors and Executive Officers:†** |  |  |
| Tao Zou | 2000000 | 0.0% |
| Heng Qu |  |  |
| Duo Zhang |  |  |
| Ming-to Yu |  |  |
| Hang Wang |  |  |
| Jingyuan Qu |  |  |
| Yi Li |  |  |
| Tao Liu | 3551123 | 0.1% |
| Kaiyan Tian | 4707902 | 0.1% |
| All directors and executive officers as a group<sup>(1)</sup> | 10259025 | 0.2% |
| **Principal Shareholders:** |  |  |
| Kingsoft Corporation Limited<sup>(2)</sup> | 1492621584 | 33.2 |
| Xiaomi Corporation<sup>(3)</sup> | 466161000 | 10.4 |

---

Notes:

\* For each person and group included in this table, percentage ownership is calculated by dividing the number of shares beneficially owned by such person or group by the sum of (i) 4,490,544,972, being the number of ordinary shares outstanding as of March 31, 2026, and (ii) the number of ordinary shares underlying share options held by such person or group that are exercisable and share awards that will become vested within 60 days after March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;† The address of our directors and executive officers is Building D, Xiaomi Science and Technology Park, No. 33 Xierqi Middle Road, Haidian District Beijing, 100085, the People's Republic of China.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Including an aggregate of 2,702,740 ordinary shares underlying share awards held by our directors and executive officers that are exercisable within 60 days after March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represent 1,492,621,584 ordinary shares directly held by Kingsoft Corporation Limited, a Cayman Islands company. The registered address of Kingsoft Corporation Limited is P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Represent 414,376,000 ordinary shares directly held by Xiaomi Corporation, a Cayman Islands company and 51,785,000 ordinary shares directly held by Green Better Limited, an indirect wholly owned subsidiary of Xiaomi Corporation. The registered office of Xiaomi Corporation is Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands.

To our knowledge, as of March 31, 2026, a total of 227,948,795 ordinary shares are held by eight record holders in the United States.

None of our shareholders has informed us that it is affiliated with a member of Financial Industry Regulatory Authority, or FINRA.

We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company.

**6. F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation**

None.

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**ITEM 7.** **MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**7. A.** **Major Shareholders**

Please refer to "Item 6. Directors, Senior Management and Employees—6.E. Share Ownership." The company's major shareholders do not have different voting rights than the other shareholders.

**7. B.** **Related Party Transactions**

#### Transactions with Kingsoft Group

#### Intellectual Property Licenses
On November 9, 2012, Kingsoft Group, as the licensor, and we, as the licensee, entered into a license agreement in relation to the licensing of certain trademarks and patents, which was later supplemented on January 28, 2013 and September 13, 2017 (collectively, the "2012 License Agreement"). On December 18, 2019, Kingsoft Group, as the licensor, and we, as the licensee, have entered into a trademark license agreement (the "Trademark License Agreement") and a patent license agreement (the "Patent License Agreement," and together with the Trademark License Agreement, the "2019 License Agreements"). The 2019 License Agreements superseded and replaced the 2012 License Agreement in its entirety.

Pursuant to the Trademark License Agreement, Kingsoft Group granted us the license of certain trademarks, including "Kingsoft Cloud" and "金山云," in specified areas. The license remains valid until expiry of the trademarks or until certain conditions as agreed and stipulated in the Trademark License Agreement are no longer satisfied, whichever is earlier.

Pursuant to the Patent License Agreement, Kingsoft Group granted us the license of certain patents in specified areas. The license remains valid until expiry of the patents or until certain conditions as agreed and stipulated in Patent License Agreement are no longer satisfied, whichever is earlier. We have accrued all the specified fees in relation to the licensed patents.

#### Strategic Cooperation and Anti-Dilution Framework Agreement
In January 2022, we entered into a strategic cooperation and anti-dilution framework agreement with Kingsoft Corporation Limited, pursuant to which the parties agree, among other things, to form a strategic cooperation with each other in respect of products, services and solutions under various potential business fields, and subject to compliance with applicable rules and regulations, we shall grant an anti-dilution option to Kingsoft Corporation Limited to the effect that during the period commencing from the date of the agreement to December 31, 2024, Kingsoft Corporation Limited is entitled to subscribe such number of shares of the Company to maintain its existing shareholding in our company upon completion of such placing and issuance of new shares by us.

#### Other Transactions with Kingsoft Group
In 2023, 2024 and 2025, we generated public cloud service revenues of RMB217.3 million, RMB281.3 million and RMB363.3 million (US$52.0 million), respectively, from Kingsoft Group, representing 3.1%, 3.6% and 3.8% of our total revenues, respectively.

In 2023, 2024 and 2025, we incurred interest expenses for a loan provided by Kingsoft Group of RMB1.0 million, RMB45.7 million and RMB30.9 million (US$4.4 million). In 2023, 2024 and 2025, we incurred expenses for rental of office space and administrative services provided by Kingsoft Group of RMB9.2 million, RMB9.8 million and RMB13.6 million (US$1.9 million), respectively.

In December 2023, we entered into a loan facility framework agreement with Kingsoft Corporation. Under the terms of this agreement, Kingsoft Corporation agreed to provide a loan facility of up to RMB1.5 billion for the period commencing December 5, 2023, and ending December 31, 2025. The loan was utilized for capital expenditure on equipment procurement. As of December 31, 2025, we had repaid all interest-bearing loans to Kingsoft Corporation.

As of December 31, 2024 and 2025, we had amounts due from Kingsoft Group of RMB18.1 million and RMB104.5 million (US$14.9 million), respectively.

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As of December 31, 2023, we had amounts due to Kingsoft Group of RMB535.1 million which mainly represent the loan payables to Kingsoft Group in the amount of RMB500.0 million and rental of office space and administrative services from Kingsoft Group. As of December 31, 2024, we had amounts due to Kingsoft Group of RMB1,033.7 million which mainly represent the loan payables to Kingsoft Group in the amount of RMB1,000.0 million and rental of office space and administrative services from Kingsoft Group. As of December 31, 2025, we had amounts due to Kingsoft Group of RMB59.3 million (US$8.5 million) which mainly represent rental of office space and administrative services from Kingsoft Group.

#### Transactions with Xiaomi
In 2023, 2024 and 2025, we generated public cloud service revenues of RMB763.3 million, RMB1,091.5 million and RMB1,853.1 million (US$265.0 million), respectively, from Xiaomi, representing 10.8%, 14.0% and 19.4% of our total revenues, respectively. During the same periods, we generated enterprise cloud service revenue of RMB105.0 million, RMB182.4 million and RMB382.4 million (US$54.7 million), respectively, from Xiaomi, representing 1.5%, 2.3% and 4.0% of our total revenue, respectively.

In 2023, 2024 and 2025, we purchased network hardware devices from Xiaomi of nil, nil and RMB29.6 million (US$4.2 million), respectively. In 2023, 2024 and 2025, we incurred expenses for rental of building and office space from Xiaomi of RMB39.8 million, RMB37.9 million and RMB42.3 million (US$6.0 million), respectively.

In 2023, we entered into several loan agreements with Xiaomi Group, pursuant to which Xiaomi Group agreed to provide facilities which are secured by our electronic equipment with weighted average interest rates of 6.00% and 6.50%, respectively. During 2024 and 2025, we entered into several loan agreements with Xiaomi Group, pursuant to which Xiaomi Group agreed to provide facilities which are secured by our electronic equipment with weighted average interest rates of 6.70%, respectively. As of December 31, 2025, the current portion and non-current portion of the Xiaomi Loans was RMB265.7 million (US$38 million) and RMB294.1 million (US$42.1 million), respectively, which will be repaid within the terms of 12 months and 24 months, respectively.

As of December 31, 2024 and 2025, we had amounts due from Xiaomi of RMB285.7 million and RMB455.8 million (US$65.2 million), respectively.

As of December 31, 2023, we had amounts due to Xiaomi of RMB429.8 million, which mainly represent RMB403.3 million of loans due to Xiaomi Group. As of December 31, 2024, we had amounts due to Xiaomi of RMB845.8 million, which mainly represent RMB819.1 million of loans due to Xiaomi Group. As of December 31, 2025, we had amounts due to Xiaomi of RMB2,869.6 million (US$410.4 million), which mainly represent RMB2,261.1 million (US$323.3 million) advance received for public cloud services and RMB559.8 million (US$80.1 million) of loans due to Xiaomi Group.

#### Strategic Cooperation and Anti-Dilution Framework Agreement
In January 2022, we entered into a strategic cooperation and anti-dilution framework agreement with Xiaomi Corporation, pursuant to which the parties agree, among other things, to form a strategic cooperation with each other in respect of products, services and solutions under various potential business fields, and subject to compliance with applicable rules and regulations, we shall grant an anti-dilution option to Xiaomi Corporation to the effect that during the period commencing from the date of the agreement to December 31, 2024, Xiaomi Corporation is entitled to subscribe such number of shares of the Company to maintain its existing shareholding in our company upon completion of such placing and issuance of new shares by us.

#### Contractual Arrangements with the VIEs and Their Respective Shareholders
See "Item 4. Information on the Company—4.C. Organizational Structure—Contractual Arrangements with the VIEs and Their Respective Shareholders."

#### Employment Agreements and Indemnification Agreements
See "Item 6. Directors, Senior Management and Employees—6.B. Compensation—Employment Agreements and Indemnification Agreements."

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#### Share Incentives
See "Item 6. Directors, Senior Management and Employees—6.B. Compensation—Share Incentive Plan."

#### 7.C. Interests of Experts and Counsel
Not applicable.

**ITEM 8.** **FINANCIAL INFORMATION**

**8. A.** **Consolidated Statements and Other Financial Information**

We have appended consolidated financial statements filed as part of this annual report.

#### Litigation
We are involved in various claims and legal actions that arise in the ordinary course of business. We do not believe that the ultimate resolution of these actions will have a material adverse effect on us.

#### Dividend Policy
We have not previously declared or paid any cash dividend or dividend in kind and we have no plan to declare or pay any dividends in the near future on our shares or the ADSs representing our ordinary shares. We currently intend to retain most, if not all, of our available funds and any future earnings to operate and expand our business.

We are a holding company incorporated in the Cayman Islands. We rely principally on dividends from our PRC subsidiaries for our cash requirements, including any payment of dividends to our shareholders. PRC regulations may restrict the ability of our PRC subsidiaries to pay dividends to us. See "Item 4. Information on the Company—4.B. Business Overview—Regulation—Regulation Related to Foreign Exchange and Dividend Distribution—Regulation on Dividend Distribution."

Our board of directors has discretion as to whether to distribute dividends, subject to certain requirements of Cayman Islands law. Our shareholders may also by ordinary resolution declare dividends, but no dividend may exceed the amount recommended by our board of directors. Under Cayman Islands law, a Cayman Islands company may pay a dividend out of either profit or share premium account, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of business. Even if our board of directors decides to pay dividends, the form, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the board of directors may deem relevant. If we pay any dividends on our ordinary shares, we will pay those dividends which are payable in respect of the ordinary shares underlying the ADSs to the depositary, as the registered holder of such ordinary shares, and the depositary then will pay such amounts to the ADS holders in proportion to the ordinary shares underlying the ADSs held by such ADS holders, subject to the terms of the deposit agreement, net of the fees and expenses payable thereunder. See "Item 12. Description of Securities Other Than Equity Securities—12.D. American Depositary Shares."

**8. B.** **Significant Changes**

Except as otherwise disclosed in this report, we have not experienced any significant changes since the date of our audited consolidated financial statements included herein.

**ITEM 9.** **THE OFFER AND LISTING**

**9. A.** **Offering and Listing Details**

Our ADSs have been listed on the Nasdaq Global Select Market since May 8, 2020 under the symbol "KC." Each American depositary share represents 15 ordinary shares, par value US$0.001 per share.

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Our ordinary shares have been listed by way of introduction on the Main Board of SEHK since December 30, 2022 under the stock code "3896".

**9. B.** **Plan of Distribution**

Not applicable.

**9. C.** **Markets**

Each of our American depositary shares represents 15 ordinary shares. Our ADSs have been listed on the Nasdaq Global Select Market since May 8, 2020. Our ADSs trade under the symbol "KC."

Our ordinary shares have been listed by way of introduction on the Main Board of SEHK since December 30, 2022 under the stock code "3896".

**9. D.** **Selling Shareholders**

Not applicable.

**9. E.** **Dilution**

Not applicable.

**9. F.** **Expenses of the Issue**

Not applicable.

**ITEM 10.** **ADDITIONAL INFORMATION**

**10. A.** **Share Capital**

Not applicable.

**10. B.** **Memorandum and Articles of Association**

We are an exempted company incorporated under the laws of the Cayman Islands and our affairs are governed by our Second Amended and Restated Memorandum and Articles of Association, as amended and restated from time to time, which is also referred herein as the Articles, and Companies Act (As Revised) of the Cayman Islands, which we refer to as the Companies Act below, and the common law of the Cayman Islands.

Our shareholders adopted our Amended and Restated Memorandum and Articles of Association by a special resolution on April 7, 2020, which became effective immediately prior to completion of our initial public offering of ADSs representing our ordinary shares. On December 29, 2022, our shareholders adopted the Second Amended and Restated Memorandum of Association and Articles of Association by a special resolution, with effect from our Hong Kong Listing.

The following are summaries of material provisions of our Seconded Amended and Restated Memorandum and Articles of Association and the Companies Act insofar as they relate to the material terms of our ordinary shares.

#### Registered Office and Objects
Our registered office in the Cayman Islands is at the offices of Conyers Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands.

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According to Clauses 3 and 4 of our seconded amended and restated memorandum of association, the objects for which the Company is established are unrestricted and the Company shall have and be capable of exercising all the functions of a natural person of full capacity irrespective of any question of corporate benefit as provided by Section 27(2) of the Companies Act or as the same may be revised from time to time, or any other law of the Cayman Islands.

#### Board of Directors
See "Item 6. Directors, Senior Management and Employees."

#### Ordinary Shares

#### General
Our authorized share capital is US$40,000,000 divided into 40,000,000,000 ordinary shares with a par value of US$0.001 each. All of our issued and outstanding ordinary shares are fully paid and non-assessable. Our ordinary shares are issued in registered form and are issued when registered in our register of members. Our shareholders who are non-residents of the Cayman Islands may freely hold and vote their ordinary shares.

*Dividends*. Subject to the Companies Act, our directors may declare dividends in any currency to be paid to our shareholders. Dividends may be declared and paid out of our profits, realized or unrealized, or from share premium account, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of business. Except insofar as the rights attaching to, or the terms of issue of, any share otherwise provides, (1) all dividends shall be declared and paid according to the amounts paid up on the shares in respect of which the dividend is paid, but no amount paid up on a share in advance of calls shall be treated for this purpose as paid up on that share and (2) all dividends shall be apportioned and paid pro rata according to the amounts paid up on the shares during any portion or portions of the period in respect of which the dividend is paid.

No dividend or other money payable by us on or in respect of any share shall bear interest against us. In respect of any dividend proposed to be paid or declared on our share capital, our directors may resolve and direct that (1) such dividend be satisfied wholly or in part in the form of an allotment of shares credited as fully paid up, provided that our shareholders entitled thereto will be entitled to elect to receive such dividend (or part thereof if our directors so determine) in cash in lieu of such allotment or (2) the shareholders entitled to such dividend will be entitled to elect to receive an allotment of shares credited as fully paid up in lieu of the whole or such part of the dividend as our directors may think fit. Our shareholders may, upon the recommendation of our directors, by ordinary resolution resolve in respect of any particular dividend that, notwithstanding the foregoing, a dividend may be satisfied wholly in the form of an allotment of shares credited as fully paid up without offering any right to shareholders to elect to receive such dividend in cash in lieu of such allotment.

Any dividend interest or other sum payable in cash to the holder of shares may be paid by check or warrant sent by mail addressed to the holder at his registered address, or addressed to such person and at such addresses as the holder may direct. Every check or warrant shall, unless the holder or joint holders otherwise direct, be made payable to the order of the holder or, in the case of joint holders, to the order of the holder whose name stands first on the register in respect of such shares, and shall be sent at his or their risk and payment of the check or warrant by the bank on which it is drawn shall constitute a good discharge to us.

All dividends unclaimed for one year after having been declared may be invested or otherwise made use of by our board of directors for the benefit of our company until claimed. Any dividend unclaimed after a period of six years from the date of declaration of such dividend shall be forfeited and reverted to us.

Whenever our directors have resolved that a dividend be paid or declared, our directors may further resolve that such dividend be satisfied wholly or in part by the distribution of specific assets of any kind, and in particular of paid up shares, debentures or warrants to subscribe for our securities or securities of any other company. Where any difficulty arises with regard to such distribution, our directors may settle it as they think expedient. In particular, our directors may issue certificates in respect of fractions of shares, ignore fractions altogether or round the same up or down, fix the value for distribution purposes of any such specific assets, determine that cash payments shall be made to any of our shareholders upon the footing of the value so fixed in order to adjust the rights of the parties, vest any such specific assets in trustees as may seem expedient to our directors, and appoint any person to sign any requisite instruments of transfer and other documents on behalf of the persons entitled to the dividend, which appointment shall be effective and binding on our shareholders.

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*General Meetings of Shareholders.* We shall hold a general meeting as annual general meeting in each financial year (within a period of not more than six months after the end of our financial year (or such longer period as the SEHK may authorize). The annual general meeting shall be specified as such in the notices calling it and held at such time and place as may be determined by the board of directors.

A majority or the chairman of the board of directors may call extraordinary general meetings, which extraordinary general meetings shall be held at such times and locations (as permitted hereby) as such person or persons shall determine. Any one or more members holding not less than ten percent of the votes attaching to the total issued and paid up share capital of the Company on a one vote per share basis at the date of deposit of the requisition shall at all times have the right, by written requisition to the board of directors or the secretary of the Company, to require an extraordinary general meeting to be convened or add resolutions to a meeting agenda.

An annual general meeting shall be called by not less than twenty-one (21) days' notice and any other general meeting (including an extraordinary general meeting) shall be called by not less than fourteen (14) days' notice in writing and shall specify the time and place of the meeting and, in case of special business, the general nature of the business.

*Voting Rights*. On a show of hands each shareholder is entitled to one vote or, on a poll, each shareholder is entitled to one vote for each ordinary share, on all matters that require a shareholder's vote. Voting at any shareholders' meeting is by show of hands of shareholders who are present in person or by proxy or, in the case of a shareholder being a corporation, by its duly authorized representative, unless voting by way of a poll is required by the rules of the Nasdaq or a poll is demanded.

A poll may be demanded: (1) by the chairman of such meeting; (2) by at least three shareholders present in person or (in the case of a shareholder being a corporation) by its duly authorized representative or by proxy for the time being entitled to vote at the meeting; or (3) by a shareholder or shareholders present in person or (in the case of a shareholder being a corporation) by its duly authorized representative or by proxy and representing not less than one tenth of the total voting rights of all shareholders having the right to vote at the meeting; or (4) by a shareholder or shareholders present in person or (in the case of a shareholder being a corporation) by its duly authorized representative or by proxy and holding shares in the Company conferring a right to vote at the meeting being shares on which an aggregate sum has been paid up equal to not less than one tenth of the total sum paid up on all shares conferring that right; or (5) if required by the rules of the Nasdaq, by any director or directors of the Company who, individually or collectively, hold proxies in respect of shares representing five per cent. (5%) or more of the total voting rights at such meeting.

No shareholder shall be entitled to vote or be reckoned in a quorum, in respect of any share, unless such shareholder is duly registered as our shareholder and all calls or installments due by such shareholder to us have been paid.

If a clearing house (or its nominee(s)) or a central depositary entity, being a corporation, is our shareholder, it may authorize such person or persons as it thinks fit to act as its representative(s) at any meeting or at any meeting of any class of shareholders, provided that, if more than one person is so authorized, the authorization shall specify the number and class of shares in respect of which each such person is so authorized. A person authorized pursuant to this provision is entitled to exercise the same powers on behalf of the clearing house or central depositary entity (or its nominee(s)) as if such person was the registered holder of our shares held by that clearing house or central depositary entity (or its nominee(s)), including the right to vote individually in a show of hands.

*Transfer of ordinary shares*. Subject to any applicable restrictions set forth in our Articles, including, for example, the board of directors' discretion to refuse to register a transfer of any share (not being a fully paid up share) to a person of whom it does not approve, or any share issued under share incentive plans for employees upon which a restriction on transfer imposed thereby still subsists, or a transfer of any share to more than four joint holders, any of our shareholders may transfer all or any of his or her shares by an instrument of transfer in the usual or common form or in a form prescribed by the Nasdaq or in another form that our directors may approve.

Our directors may decline to register any transfer of any share which is not paid up or on which we have a lien. Our directors may also decline to register any transfer of any share unless:

● the instrument of transfer is lodged with us and is accompanied by the certificate for the shares to which it relates and such other evidence as our directors may reasonably require to show the right of the transferor to make the transfer;

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● the instrument of transfer is in respect of only one class of share;

● the instrument of transfer is properly stamped (in circumstances where stamping is required); and

● a fee of such maximum sum as the Designated Stock Exchange may determine to be payable or such lesser sum as our directors may from time to time require is paid to us in respect thereof.

*Liquidation*. Subject to any future shares which are issued with specific rights, (1) if we are wound up and the assets available for distribution among our shareholders are more than sufficient to repay the whole of the capital paid up at the commencement of the winding up, the excess shall be distributed pari passu among those shareholders in proportion to the amount paid up at the commencement of the winding up on the shares held by them, respectively, and (2) if we are wound up and the assets available for distribution among the shareholders as such are insufficient to repay the whole of the paid-up capital, those assets shall be distributed so that, as nearly as may be, the losses shall be borne by the shareholders in proportion to the capital paid up at the commencement of the winding up on the shares held by them, respectively.

If we are wound up (whether the liquidation is voluntary or by the court), the liquidator may with the sanction of our special resolution and any other sanction required by the Companies Act, divide among our shareholders in specie or kind the whole or any part of our assets (whether or not they shall consist of property of the same kind) and may, for such purpose, set such value as the liquidator deems fair upon any property to be divided and may determine how such division shall be carried out as between the shareholders or different classes of shareholders.

The liquidator may also vest the whole or any part of these assets in trustees upon such trusts for the benefit of the shareholders as the liquidator shall think fit, but so that no shareholder will be compelled to accept any assets, shares or other securities upon which there is a liability.

*Calls on ordinary shares and Forfeiture of ordinary shares.* Subject to our Articles and to the terms of allotment, our board of directors may from time to time make calls upon shareholders for any amounts unpaid on their ordinary shares in a notice served to such shareholders at least 14 clear days prior to the specified time of payment.

The ordinary shares that have been called upon and remain unpaid are subject to forfeiture.

Our directors may only exercise this power on our behalf, subject to the Companies Act, our Articles and to where applicable, the rules of the Designated Stock Exchange and/or any competent regulatory authority.

Under the Companies Act, the redemption or repurchase of any share may be paid out of our company's profits or out of the proceeds of a fresh issue of shares made for the purpose of such redemption or repurchase, or out of capital (including share premium account and capital redemption reserve) if the company can, immediately following such payment, pay its debts as they fall due in the ordinary course of business. In addition, under the Companies Act no such share may be redeemed or repurchased (1) unless it is fully paid up, (2) if such redemption or repurchase would result in there being no shares outstanding or (3) if the company has commenced liquidation. In addition, our company may accept the surrender of any fully paid up share for no consideration.

*Variations of Rights of Shares*. If at any time, our share capital is divided into different classes of shares, all or any of the special rights attached to any class of shares may, subject to the provisions of the Companies Act, be varied with the sanction of a special resolution passed at a general meeting of the holders of the shares of that class. Consequently, the rights of any class of shares cannot be detrimentally altered without a majority of three-fourths of the votes of all of the shares in that class.

The rights conferred upon the holders of the shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the creation or issue of further shares ranking pari passu with such existing class of shares.

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*Inspection of Books and Records.* Holders of our ordinary shares have no general right under Cayman Islands law to inspect or obtain copies of our list of shareholders or our corporate records (other than copies of our memorandum and articles of association, register of mortgages and charges, and any special resolutions passed by our shareholders). Under Cayman Islands law, the names of our current directors can be obtained from a search conducted at the Registrar of Companies of the Cayman Islands. However, we will provide our shareholders with annual audited financial statements. See "Where You Can Find Additional Information."

*Issuance of Additional Shares*. Our Articles authorize our board of directors to issue additional ordinary shares from time to time as our board of directors shall determine, to the extent of available authorized but unissued shares.

*Anti-Takeover Provisions.* Some provisions of our Articles may discourage, delay or prevent a change of control of our company or management that shareholders may consider favorable, including provisions that authorize our board of directors to issue preferred shares in one or more series and to designate the price, rights, preferences, privileges and restrictions of such preferred shares without any further vote or action by our shareholders.

**10. C.** **Material Contracts**

We have not entered into any material contracts other than in the ordinary course of business and other than those described in this annual report.

**10. D.** **Exchange Controls**

The Cayman Islands currently has no exchange control regulations or currency restrictions. See "Item 4. Information of the Company—4.B. Business Overview—Regulation—Regulation Related to Foreign Exchange and Dividend Distribution."

**10. E.** **Taxation**

#### Cayman Islands Taxation
The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains, or appreciation and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties, which may be applicable on instruments executed in, or, after execution, brought within the jurisdiction of the Cayman Islands. Payments of dividends and capital in respect of our ordinary shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of our ordinary shares, nor will gains derived from the disposal of our ordinary shares be subject to Cayman Islands income or corporation tax. The Cayman Islands is not party to any double tax treaties that are applicable to any payments made to or by our company. There are no exchange control regulations or currency restrictions in the Cayman Islands.

#### People's Republic of China Taxation
Under the PRC EIT Law, which became effective on January 1, 2008 and was most recently amended on December 29, 2018, an enterprise established outside the PRC with "de facto management bodies" within the PRC is considered a "resident enterprise" for PRC enterprise income tax purposes and is generally subject to a uniform 25% enterprise income tax rate on its worldwide income. Under the implementation regulations to the PRC EIT Law, a "de facto management body" is defined as a body that has material and overall management and control over the manufacturing and business operations, personnel and human resources, finances and properties of an enterprise.

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In addition, the Circular 82 issued by the State Taxation Administration in April 2009 specifies that certain offshore incorporated enterprises controlled by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or resident in the PRC: (a) senior management personnel and departments that are responsible for daily production, operation and management; (b) financial and personnel decision-making bodies; (c) key properties, accounting books, company seal, minutes of board meetings and shareholders' meetings; and (d) half or more of the senior management or directors having voting rights. Further to Circular 82, the State Taxation Administration issued the Bulletin 45, which took effect in September 2011, to provide more guidance on the implementation of Circular 82. Bulletin 45 provides for procedures and administration details of determination on resident status and administration on post-determination matters. Our company is incorporated outside the PRC. As a holding company, its key assets are its ownership interests in its subsidiaries, and its key assets are located, and its records (including the resolutions of its board of directors and the resolutions of its shareholders) are maintained, outside the PRC. As such, we do not believe that our company meets all of the conditions above or is a PRC resident enterprise for PRC tax purposes. For similar reasons, we believe that our other entities outside of China are not PRC resident enterprises either. However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body." There can be no assurance that the PRC government will ultimately take a view that is consistent with us. If the PRC tax authorities determine that our Cayman Islands holding company is a PRC resident enterprise for PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. For example, our Cayman Islands holding company would be subject to 25% enterprise income tax on its worldwide income. Further, a 10% withholding tax would be imposed on dividends we pay to our non-PRC enterprise shareholders (including the ADS holders). In addition, non-resident enterprise shareholders (including the ADS holders) may be subject to a 10% PRC tax on gains realized on the sale or other disposition of ADSs or ordinary shares, if such income is treated as sourced from within the PRC. Furthermore, if we are deemed a PRC resident enterprise, dividends paid to our non-PRC individual shareholders (including the ADS holders) and any gain realized on the transfer of ADSs or ordinary shares by such shareholders may be subject to PRC tax at a rate of 20% (which, in the case of dividends, may be withheld at source). These rates may be reduced by an applicable tax treaty, but it is unclear whether non-PRC shareholders of our company would be able to obtain the benefits of any tax treaties between their country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. See "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Doing Business in China—If we are classified as a PRC resident enterprise for PRC enterprise income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders and ADS holders."

#### Material U.S. Federal Income Tax Considerations
The following are material U.S. federal income tax consequences to the U.S. Holders described below of owning and disposing of the ADSs or ordinary shares, but this discussion does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a particular person's decision to hold the ADSs or ordinary shares.

This discussion applies only to a U.S. Holder that holds the ADSs or ordinary shares as capital assets for U.S. federal income tax purposes (generally, property held for investment). In addition, it does not describe all of the tax consequences that may be relevant in light of a U.S. Holder's particular circumstances, including any minimum tax, the Medicare contribution tax on net investment income and tax consequences applicable to U.S. Holders subject to special rules, such as:

● certain financial institutions;

● dealers or certain electing traders in securities that use a mark-to-market method of tax accounting;

● persons holding ADSs or ordinary shares as part of a straddle, integrated or similar transaction;

● persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;

● entities classified as partnerships for U.S. federal income tax purposes and their partners;

● persons who acquired the ADSs or our ordinary shares pursuant to the exercise of an employee stock option or otherwise as compensation;

● tax-exempt entities, "individual retirement accounts" or "Roth IRAs";

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● persons that own or are deemed to own ADSs or ordinary shares representing 10% or more of our voting power or value; or

● persons holding ADSs or ordinary shares in connection with a trade or business outside the United States.

If a partnership (or other entity that is classified as a partnership for U.S. federal income tax purposes) owns ADSs or ordinary shares, the U.S. federal income tax treatment of a partner will generally depend on the status of the partner and the activities of the partnership. Partnerships owning ADSs or ordinary shares and their partners should consult their tax advisers as to their particular U.S. federal income tax consequences of owning and disposing of ADSs or ordinary shares.

This discussion is based on the Internal Revenue Code of 1986, as amended (the "Code"), administrative pronouncements, judicial decisions, final, temporary and proposed Treasury regulations, and the income tax treaty between the United States and the PRC (the "Treaty"), all as of the date hereof, any of which is subject to change, possibly with retroactive effect. This discussion assumes that each obligation under the deposit agreement and any related agreement will be performed in accordance with its terms.

As used herein, a "U.S. Holder" is a person that is, for U.S. federal income tax purposes, a beneficial owner of the ADSs or ordinary shares and:

● a citizen or individual resident of the United States;

● a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia; or

● an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.

In general, a U.S. Holder that owns ADSs will be treated as the owner of the underlying ordinary shares represented by those ADSs for U.S. federal income tax purposes. Accordingly, no gain or loss will be recognized if a U.S. Holder exchanges ADSs for the underlying ordinary shares represented by those ADSs.

This discussion does not address the effects of any state, local or non-U.S. tax laws, or any U.S. federal taxes other than income taxes (such as U.S. federal estate or gift tax consequences). U.S. Holders should consult their tax advisers concerning the U.S. federal, state, local and non-U.S. tax consequences of owning and disposing of ADSs or ordinary shares in their particular circumstances.

#### Passive Foreign Investment Company Rules
In general, a non-U.S. corporation is a passive foreign investment company (a "PFIC") for U.S. federal income tax purposes for any taxable year in which (i) 50% or more of the average value of its assets (generally determined on a quarterly basis) consists of assets that produce, or are held for the production of, passive income or (ii) 75% or more of its gross income consists of passive income. For purposes of the above calculations, a non-U.S. corporation that owns (or is treated as owning for U.S. federal income tax purposes), directly or indirectly, at least 25% by value of the shares of another corporation is treated as if it directly held its proportionate share of the assets of the other corporation and directly earned its proportionate share of the income of the other corporation. Passive income generally includes dividends, interest, rents, royalties and certain gains. Cash and cash equivalents are generally passive assets for these purposes. Goodwill and other intangible assets generally are characterized as active assets to the extent associated with business activities that produce active income.

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We hold a substantial amount of cash and financial investments, and while this continues to be the case our PFIC status for any taxable year may depend on the average value of our goodwill and other intangible assets. We have not obtained valuations of our goodwill or other assets. The value of our goodwill and other intangible assets may be determined, in large part, by reference to our market capitalization. Based on the average price of the ADSs during 2025, and taking into account the nature of our assets and income, we believe that we were not a PFIC for our taxable year ended December 31, 2025. However, because our market capitalization is volatile (and has generally declined substantially since our initial public offering), if the value of our assets is determined by reference to our market capitalization, our goodwill and other active assets for 2026 or future taxable years may constitute less than 50% of the value of our total assets. Accordingly, there is a risk (which, depending on market conditions, may be significant) that we will be a PFIC for our taxable year 2026, and possibly future taxable years. Moreover, it is not entirely clear how the contractual arrangements between us and the VIEs will be treated for purposes of the PFIC rules, and we may be or become a PFIC if the VIEs are not treated as owned by us for these purposes. Furthermore, the application of the PFIC rules is subject to certain uncertainties such as the proper calculation of gross income for purposes of the PFIC rules. Our PFIC status for any taxable year is an annual factual determination that can be made only after the end of that year and depends on the composition of our income and assets and the value of our assets from time to time. For these reasons, we can give no assurance as to our PFIC status for any taxable year.

If we are a PFIC for any taxable year and any entity in which we own or are deemed to own equity interests (including any of our subsidiaries or VIEs) is also a PFIC (any such entity, a "Lower-tier PFIC"), a U.S. Holder will be deemed to own a proportionate amount (by value) of the shares of each such Lower-tier PFIC and will be subject to U.S. federal income tax according to the rules described in the next paragraph on (i) certain distributions by any Lower-tier PFIC and (ii) dispositions of shares of any Lower-tier PFIC, in each case, as if the U.S. Holder held such shares directly, even though the U.S. Holder will not receive any proceeds of those distributions or dispositions.

In general, if we are a PFIC for any taxable year during which a U.S. Holder owns the ADSs or ordinary shares, gain recognized by such U.S. Holder on a sale or other disposition (including certain pledges) of the ADSs or ordinary shares will be allocated ratably over the U.S. Holder's holding period. The amounts allocated to the taxable year of the sale or disposition and to any taxable years before the first taxable year in which we became a PFIC will be taxed as ordinary income. The amounts allocated to each other taxable year will be subject to tax at the highest rate in effect for individuals or corporations, as applicable, for that taxable year, and an interest charge will be imposed on the resulting tax liability for each such year. Furthermore, to the extent that distributions received by a U.S. Holder in any taxable year on its ADSs or ordinary shares exceed 125% of the average of the annual distributions on the ADSs or ordinary shares received during the preceding three taxable years or the U.S. Holder's holding period, whichever is shorter, such excess distributions will be subject to taxation in the same manner. If we are a PFIC for any taxable year during which a U.S. Holder owns ADSs or ordinary shares, we will generally continue to be treated as a PFIC with respect to the U.S. Holder for all succeeding taxable years during which the U.S. Holder owns the ADSs or ordinary shares, even if we cease to meet the threshold requirements for PFIC status, unless we cease to be a PFIC and the U.S. Holder makes a timely "deemed sale" election with respect to the ADSs or ordinary shares, in which case such U.S. Holder will be deemed to have sold the ADSs or ordinary shares held at their fair market value, and any gain on the deemed sale will be taxed under the PFIC rules described above. U.S. Holders should consult their tax advisers regarding the advisability of making a deemed sale election in their particular circumstances if we are a PFIC for any taxable year and cease to be a PFIC for any subsequent taxable year.

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Alternatively, if we are a PFIC for any taxable year and if the ADSs are "regularly traded" on a "qualified exchange," as defined in applicable Treasury Regulations, a U.S. Holder of ADSs could make a mark-to-market election that will result in tax treatment different from the general tax treatment for PFICs described in the preceding paragraph. The ADSs will be treated as regularly traded for any calendar year in which more than a de minimis quantity of the ADSs are traded on a qualified exchange on at least 15 days during each calendar quarter. The Nasdaq, where the ADSs, but not the ordinary shares, are listed, is a qualified exchange for this purpose. However, there can be no assurance that the ADSs will be regularly traded for any relevant period. If a U.S. Holder of ADSs makes the mark-to-market election, for any taxable year in which we are a PFIC the U.S. Holder generally will recognize as ordinary income any excess of the fair market value of the ADSs at the end of the taxable year over the U.S. Holder's adjusted tax basis in the ADSs, and will recognize an ordinary loss in respect of any excess of the adjusted tax basis in the ADSs over their fair market value at the end of the taxable year (but only to the extent of the net amount of income previously included as a result of the mark-to-market election). If a U.S. Holder makes the election, the U.S. Holder's tax basis in the ADSs will be adjusted to reflect the amounts of any income or loss recognized. Any gain recognized on the sale or other disposition of the ADSs in a taxable year in which we are a PFIC will be treated as ordinary income and any loss will be treated as an ordinary loss (but only to the extent of the net amount of income previously included as a result of the mark-to-market election, with any excess loss treated as a capital loss). If a U.S. Holder makes the mark-to-market election, distributions paid on ADSs will be treated as discussed under "—Taxation of Distributions" below (but subject to the discussion in the immediately subsequent paragraph). U.S. Holders should consult their tax advisers regarding the availability and advisability of making a mark-to-market election in their particular circumstances. In particular, U.S. Holders should consider carefully the impact of a mark-to-market election with respect to their ADSs given that we may have Lower-tier PFICs for which a mark-to-market election may not be available.

If we are a PFIC (or, with respect to a particular U.S. Holder, are treated as a PFIC) for any taxable year in which we pay a dividend or for the prior taxable year, the favorable tax rate described below under "—Taxation of Distributions" with respect to dividends paid to certain non-corporate U.S. Holders will not apply.

We do not intend to provide information necessary for U.S. Holders to make qualified electing fund elections which, if available, would result in tax treatment different from the general tax treatment for PFICs described above.

If we are a PFIC for any taxable year during which a U.S. Holder owns any ADSs or ordinary shares, the U.S. Holder will generally be required to file annual reports with the Internal Revenue Service. U.S. Holders should consult their tax advisers regarding the determination of whether we are a PFIC for any taxable year and the potential application of the PFIC rules to their ownership of ADSs or ordinary shares.

#### Taxation of Distributions
This discussion is subject to the discussion under "—Passive Foreign Investment Company Rules" above.

Distributions (if any) paid on the ADSs or ordinary shares, other than certain pro rata distributions of ADSs or ordinary shares, will be treated as dividends to the extent paid out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Because we do not maintain calculations of our earnings and profits under U.S. federal income tax principles, it is expected that distributions generally will be reported to U.S. Holders as dividends. Dividends will not be eligible for the dividends-received deduction generally available to U.S. corporations under the Code. Subject to applicable limitations, dividends paid on the ADSs to certain non-corporate U.S. Holders may be taxable at the reduced rates applicable to "qualified dividend income" if certain conditions are met, and provided that we are not a PFIC (and with respect to a particular U.S. Holder are not treated as a PFIC) for the taxable year of distribution or the preceding taxable year. Non-corporate U.S. Holders should consult their tax advisers regarding the availability of the reduced tax rates on dividends generally and in their particular circumstances.

Dividends will be included in a U.S. Holder's income on the date of the U.S. Holder's (in the case of ordinary shares) or the depositary's (in the case of ADSs) actual or constructive receipt. The amount of any dividend income paid in foreign currency will be the U.S. dollar amount calculated by reference to the spot rate in effect on the date of receipt, regardless of whether the payment is in fact converted into U.S. dollars on such date. If the dividend is converted into U.S. dollars on the date of receipt, a U.S. Holder generally should not be required to recognize foreign currency gain or loss in respect of the amount received. A U.S. Holder may have foreign currency gain or loss if the dividend is converted into U.S. dollars after the date of receipt.

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Dividends will be treated as foreign-source income. As described in "—People's Republic of China Taxation," dividends paid by us may be subject to PRC withholding tax. For U.S. federal income tax purposes, the amount of the dividend income will include any amounts withheld in respect of PRC taxes. Subject to applicable limitations, which vary depending upon the U.S. Holder's circumstances, and the discussion below regarding certain Treasury regulations, PRC taxes withheld from dividend payments (at a rate not exceeding the applicable rate provided in the Treaty in the case of a U.S. Holder that is eligible for the benefits of the Treaty) generally will be creditable against a U.S. Holder's U.S. federal income tax liability. The rules governing foreign tax credits are complex. For example, Treasury regulations provide that, in the absence of an election to apply the benefits of an applicable income tax treaty, in order for foreign income taxes to be creditable the relevant foreign income tax rules must be consistent with certain U.S. federal income tax principles, and we have not determined whether the PRC income tax system meets these requirements. However, the IRS released notices that provide relief from certain of the provisions of the Treasury regulations described above for taxable years ending before the date that a notice or other guidance withdrawing or modifying the temporary relief is issued (or any later date specified in such notice or other guidance). In lieu of claiming a credit, a U.S. Holder may elect to deduct PRC taxes in computing its taxable income, subject to applicable limitations. An election to deduct non-U.S. taxes instead of claiming foreign tax credits applies to all otherwise creditable non-U.S. taxes paid or accrued in the relevant taxable year. U.S. Holders should consult their tax advisers regarding the creditability or deductibility of any PRC income taxes in their particular circumstances.

#### Sale or Other Taxable Disposition of ADSs or ordinary shares
This discussion is subject to the discussion under "—Passive Foreign Investment Company Rules" above.

A U.S. Holder will generally recognize capital gain or loss on a sale or other taxable disposition of ADSs or ordinary shares in an amount equal to the difference between the amount realized on the sale or disposition and the U.S. Holder's tax basis in the ADSs or ordinary shares disposed of, in each case as determined in U.S. dollars. Such gain or loss will be long-term capital gain or loss if, at the time of the sale or disposition, the U.S. Holder has owned the ADSs or ordinary shares for more than one year. Long-term capital gains recognized by non-corporate U.S. Holders are subject to tax rates that are lower than those applicable to ordinary income. The deductibility of capital losses is subject to limitations.

As described in "—People's Republic of China Taxation" above, gains on the sale of ADSs or ordinary shares may be subject to PRC taxes if we are treated as a PRC resident enterprise for PRC tax purposes. Under the Code, capital gains of U.S. persons are generally treated as U.S.-source income. However, a U.S. Holder that is eligible for Treaty benefits may be able to elect to treat gains on the disposition of ADSs or ordinary shares as foreign-source income under the Treaty and claim a foreign tax credit in respect of any PRC taxes on the disposition gains. Under certain Treasury regulations, a U.S. Holder will generally be precluded from claiming a foreign tax credit with respect to PRC income taxes on gains from dispositions of ADSs or ordinary shares, unless the U.S. Holder is eligible for Treaty benefits and elects to apply them. However, the IRS released notices that provide relief from certain of the regulations' provisions (including the limitation described in the preceding sentence) for taxable years ending before the date that a notice or other guidance withdrawing or modifying the temporary relief is issued (or any later date specified in such notice or other guidance). Even if these Treasury regulations do not prohibit U.S. Holders from claiming a foreign tax credit with respect to PRC taxes on disposition gains, other limitations under the foreign tax credit rules may preclude U.S. Holders from claiming a foreign tax credit in whole or in part. If a U.S. Holder is precluded from claiming, or does not elect to claim, a foreign tax credit, it is possible that any PRC taxes on disposition gains may either be deductible or reduce the amount realized on the disposition. The rules governing foreign tax credits and deductibility of foreign taxes are complex. U.S. Holders should consult their tax advisers regarding their eligibility for benefits under the Treaty and the consequences of the imposition of any PRC tax on disposition gains, including the Treaty's resourcing rule, any reporting requirements with respect to a Treaty-based return position and the creditability or deductibility of the PRC tax on disposition gains in their particular circumstances (including any applicable limitations).

***Information Reporting and Backup Withholding***

Payments of dividends and proceeds from the sale or exchange of ADSs or ordinary shares that are made within the United States or through certain U.S.-related financial intermediaries may be subject to information reporting and backup withholding, unless (i) the U.S. Holder is a corporation or other "exempt recipient" and (ii) in the case of backup withholding, the U.S. Holder provides a correct taxpayer identification number and certifies that it is not subject to backup withholding, generally on Internal Revenue Service Form W-9. Backup withholding is not an additional tax. The amount of any backup withholding from a payment to a U.S. Holder will generally be allowed as a credit against its U.S. federal income tax liability and may entitle the U.S. Holder to a refund, provided that the required information is timely furnished to the Internal Revenue Service.

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Certain U.S. Holders who are individuals (and certain specified entities) may be required to report information relating to their ownership of the ADSs or ordinary shares, or any non-U.S. accounts through which the ADSs or ordinary shares are held. U.S. Holders should consult their tax advisers regarding their reporting obligations with respect to the ADSs or ordinary shares.

**10. F.** **Dividends and Paying Agents**

Not applicable.

**10. G.** **Statement by Experts**

Not applicable.

**10. H.** **Documents on Display**

We previously filed with the SEC a registration statement on Form F-1 (File Number 333-237726), as amended, to register our ordinary shares in relation to our initial public offering. We also filed with the SEC a related registration statement on F-6 (Registration No. 333-237852) to register the ADSs.

We are subject to the periodic reporting and other informational requirements of the Exchange Act as applicable to foreign private issuers. Under the Exchange Act, we are required to file reports and other information with the SEC. Specifically, we are required to file annually a Form 20-F within four months after the end of each fiscal year. Copies of reports and other information, when so filed with the SEC, can be inspected and copied at the public reference facilities maintained by the SEC at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You can request copies of these documents, upon payment of a duplicating fee, by writing to the SEC. The public may obtain information regarding the Washington, D.C. Public Reference Room by calling the Commission at 1-800-SEC-0330. The SEC also maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding registrants that make electronic filings with the SEC using its EDGAR system. As a foreign private issuer, we are exempt from the rules of the Exchange Act prescribing the furnishing and content of quarterly reports and proxy statements, and our executive officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we are not required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act.

We will furnish The Bank of New York Mellon, the depositary of the ADSs, with our annual reports, which will include a review of operations and annual audited consolidated financial statements prepared in conformity with U.S. GAAP, and all notices of shareholders' meetings and other reports and communications that are made generally available to our shareholders. The depositary will make such notices, reports and communications available to holders of ADSs and, upon our request, will mail to all record holders of ADSs the information contained in any notice of a shareholders' meeting received by the depositary from us.

**10. I. Subsidiary information**

Not applicable.

**10. J. Annual Report to Security Holders**

Not applicable.

**ITEM 11.** **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

#### Concentration of credit risk
Assets that potentially subject us to significant concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable and contract assets. We expect that there is no significant credit risk associated with cash and cash equivalents, restricted cash and short-term investments, which were held by reputable financial institutions in the jurisdictions where we, our subsidiaries and VIEs are located. We believe that it is not exposed to unusual risks as these financial institutions have high credit quality.

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Accounts receivable and contract assets are typically unsecured and are derived from revenues earned from reputable customers. As of December 31, 2023, we had two customers, with accounts receivable balances exceeding 10% of the total accounts receivable balances. As of December 31, 2024, we had one customer, with accounts receivable balances exceeding 10% of the total accounts receivable balances. As of December 31, 2025, we had no customers, with accounts receivable balances exceeding 10% of the total accounts receivable balances. As of December 31, 2023, we had two customers, with contract assets balances exceeding 10% of the total contract assets balances. As of December 31, 2024, we had one customer, with contract assets balances exceeding 10% of the total contract assets balances. As of December 31, 2025, we had two customers, with contract assets balances exceeding 10% of the total contract assets balances. The risks with respect to accounts receivable and contract assets are mitigated by credit evaluations we perform on our customers and its ongoing monitoring process of outstanding balances.

#### Business, customer, political, social and economic risks
We participate in a dynamic and competitive high technology industry and believe that changes in any of the following areas could have a material adverse effect on our future financial position, results of operations or cash flows: changes in the overall demand for services; competitive pressures due to existing competitors; new trends in new technologies and industry standards; control of telecommunications infrastructures by local regulators and industry standards; changes in certain strategic relationships or customer relationships; regulatory considerations; and risks associated with our ability to attract and retain employees necessary to support our growth. Our operations could be adversely affected by significant political, economic and social uncertainties in the PRC.

#### Currency convertibility risk
We transact a majority of our business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the PBOC. However, the unification of the exchange rates does not imply that the RMB may be readily convertible into United States dollars or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers' invoices, shipping documents and signed contracts. Additionally, the value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market.

#### Foreign currency exchange rate risk
From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For the RMB against the U.S. dollar, there were depreciation of approximately 2.9% and 2.8% during the year ended December 31, 2023 and 2024, respectively. However, there were appreciation of approximately 4.2% during the year ended December 31, 2025.. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future.

**ITEM 12.** **DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

**12. A.** **Debt Securities**

Not applicable.

**12. B.** **Warrants and Rights**

Not applicable.

**12. C.** **Other Securities**

Not applicable.

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**12. D.** **American Depositary Shares**

#### Fees and Expenses
 ● Cancelation of ADS, for the purpose of withdrawal, including if the deposit agreement terminates

 ● Converting foreign currency to U.S. dollars

The depositary collects its fees for delivery and surrender of ADSs directly from investors depositing shares or surrendering ADSs for the purpose of withdrawal or from intermediaries acting for them. The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees. The depositary may collect its annual fee for depositary services by deduction from cash distributions or by directly billing investors or by charging the book-entry system accounts of participants acting for them. The depositary may collect any of its fees by deduction from any cash distribution payable (or by selling a portion of securities or other property distributable) to ADS holders that are obligated to pay those fees. The depositary may generally refuse to provide fee-attracting services until its fees for those services are paid.

From time to time, the depositary may make payments to us to reimburse us for costs and expenses generally arising out of establishment and maintenance of the ADS program, waive fees and expenses for services provided to us by the depositary or share revenue from the fees collected from ADS holders. In performing its duties under the deposit agreement, the depositary may use brokers, dealers, foreign currency dealers or other service providers that are owned by or affiliated with the depositary and that may earn or share fees, spreads or commissions.

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The depositary may convert currency itself or through any of its affiliates, or the custodian or we may convert currency and pay U.S. dollars to the depositary. Where the depositary converts currency itself or through any of its affiliates, the depositary acts as principal for its own account and not as agent, advisor, broker or fiduciary on behalf of any other person and earns revenue, including, without limitation, transaction spreads, that it will retain for its own account. The revenue is based on, among other things, the difference between the exchange rate assigned to the currency conversion made under the deposit agreement and the rate that the depositary or its affiliate receives when buying or selling foreign currency for its own account. The depositary makes no representation that the exchange rate used or obtained by it or its affiliate in any currency conversion under the deposit agreement will be the most favorable rate that could be obtained at the time or that the method by which that rate will be determined will be the most favorable to ADS holders, subject to the depositary's obligation to act without negligence or bad faith. The methodology used to determine exchange rates used in currency conversions made by the depositary is available upon request. Where the custodian converts currency, the custodian has no obligation to obtain the most favorable rate that could be obtained at the time or to ensure that the method by which that rate will be determined will be the most favorable to ADS holders, and the depositary makes no representation that the rate is the most favorable rate and will not be liable for any direct or indirect losses associated with the rate. In certain instances, the depositary may receive dividends or other distributions from the us in U.S. dollars that represent the proceeds of a conversion of foreign currency or translation from foreign currency at a rate that was obtained or determined by us and, in such cases, the depositary will not engage in, or be responsible for, any foreign currency transactions, and neither it nor we make any representation that the rate obtained or determined by us is the most favorable rate, and neither it nor we will be liable for any direct or indirect losses associated with the rate.

#### Payments by Depositary
In 2025, we did not receive any payment from The Bank of New York Mellon, the depositary bank for the ADR program. The Bank of New York Mellon waived certain fees associated with the administration of the ADR program, ADR Insight, and Registered Holder mailings; the total amount of fees waived in 2025 was approximately US$100.3 thousand.

***Dealings and Settlement of Ordinary Shares in Hong Kong***

Our Shares will trade on the SEHK in board lots of 2,000 ordinary shares. Dealings in our ordinary shares on the SEHK will be conducted in Hong Kong dollars.

The transaction costs of dealings in our ordinary shares on the SEHK include:

● SEHK trading fee of 0.00565% of the consideration of the transaction, charged to each of the buyer and seller;

● Securities and Futures Commission of Hong Kong transaction levy of 0.0027% of the consideration of the transaction, charged to each of the buyer and seller;

● the Accounting and Financial Reporting Council transaction levy of 0.00015% of the consideration of the transaction, charged to each of the buyer and seller;

● trading tariff of HK$0.50 on each and every purchase or sale transaction. The decision on whether or not to pass the trading tariff onto investors is at the discretion of brokers;

● transfer deed stamp duty of HK$5.00 per transfer deed (if applicable), payable by the seller;

● ad valorem stamp duty at a total rate of 0.26% of the value of the transaction, with 0.13% payable by each of the buyer and the seller;

● stock settlement fee, which is currently 0.002% of the gross transaction value, subject to a minimum fee of HK$2.00 and a maximum fee of HK$100.00 per side per trade;

● brokerage commission, which is freely negotiable with the broker (other than brokerage commissions for IPO transactions which are currently set at 1% of the subscription or purchase price and will be payable by the person subscribing for or purchasing the securities); and

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● the Hong Kong Share Registrar will charge between HK$2.50 to HK$20, depending on the speed of service (or such higher fee as may from time to time be permitted under the Hong Kong Listing Rules), for each transfer of ordinary shares from one registered owner to another, each share certificate canceled or issued by it and any applicable fee as stated in the share transfer forms used in Hong Kong.

Investors must settle their trades executed on the SEHK through their brokers directly or through custodians. For an investor who has deposited his or her ordinary shares in his or her designated the Central Clearing and Settlement System ("CCASS") participant's stock account maintained with CCASS, settlement will be effected in CCASS in accordance with the General Rules of CCASS and CCASS operational procedures in effect from time to time. For an investor who holds the physical certificates, settlement certificates and the duly executed transfer forms must be delivered to his or her broker or custodian before the settlement date.

***Conversion Between Ordinary Shares and ADSs***

In connection with our Hong Kong Listing, we have established a branch register of members in Hong Kong, or the Hong Kong share register, which will be maintained by our Hong Kong share registrar, Tricor Investor Services Limited ("Hong Kong Share Registrar"). Our principal register of members, or the Cayman share register, will continue to be maintained by our principal share registrar, Conyers Trust Company (Cayman) Limited.

As described in further detail below, holders of Shares registered on the Hong Kong share register will be able to deposit their Shares for delivery of ADSs and surrender their ADSs for cancelation and delivery of Shares. To facilitate deposits of Shares with the depositary for delivery of ADSs for trading on the Nasdaq and surrender of ADSs to the depositary for cancelation and delivery of Shares for trading on the SEHK, we intend to move all our Shares represented by the ADS from our register of members maintained in the Cayman Islands to our Hong Kong share register.

***Converting Shares trading in Hong Kong into ADSs***

A holder who holds ordinary shares registered in Hong Kong and who intends to convert them to ADSs to trade on the Nasdaq must deposit or have his or her broker deposit the Shares with the depositary's Hong Kong custodian, The Hongkong and Shanghai Banking Corporation Limited or the custodian, in exchange for ADSs.

A deposit of ordinary shares trading in Hong Kong for delivery of ADSs involves the following procedures:

● If ordinary shares have been deposited with CCASS, the holder must transfer the ordinary shares to the depositary's account with the custodian within CCASS by following the CCASS procedures for transfer and submit and deliver a duly completed and signed letter of transmittal to the custodian via his or her broker.

● If ordinary shares are held outside CCASS, the holder must first arrange to deposit his or her ordinary shares into CCASS for delivery to the depositary's account with the custodian within CCASS, and then submit and deliver a duly completed and signed letter of transmittal to the custodian.

● Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, if applicable, and subject in all cases to the terms of the deposit agreement, the depositary will issue the corresponding number of ADSs in the name(s) requested by a holder and will deliver the ADSs to the designated Depository Trust Company account of the person(s) designated by a holder or his or her broker.

For ordinary shares deposited in CCASS, under normal circumstances, the above steps generally require two business days, provided that the holder has provided timely and complete instructions. For ordinary shares held outside CCASS in physical form, the above steps may take 14 business days, or more, to complete. Temporary delays may arise. For example, the transfer books of the depositary may from time to time be closed to ADS issuances. The holder will be unable to trade the ADSs until the share-to-ADS conversion procedures are completed.

In connection with ADS issuances, certification(s) for deposits may be required to be delivered to the depositary. A holder is directed to check with the depositary or its custodian in advance of depositing ordinary shares to determine whether a deposit certification is required.

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***Converting ADSs into Shares Trading in Hong Kong***

A holder who holds ADSs and who intends to convert his/her ADSs into ordinary shares to trade on the SEHK must cancel the ADSs the holder holds, withdraw the ordinary shares from the ADS program and cause his or her broker or other financial institution to trade such ordinary shares on the SEHK.

A holder that holds ADSs indirectly through a broker should follow the broker's procedure and instruct the broker to arrange for cancelation of the ADSs, and transfer of the underlying ordinary shares from the depositary's account with the custodian within the CCASS system to the investor's Hong Kong stock account.

For holders holding ADSs directly, the following steps must be taken:

● To withdraw ordinary shares from the ADS program, a holder who holds ADSs may turn in such ADSs at the office of the depositary (and the applicable ADR(s) if the ADSs are held in certificated form), and send an instruction to cancel such ADSs to the depositary.

● Upon payment or net of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, if applicable, and subject in all cases to the terms of the deposit agreement, the depositary will cancel the applicable ADSs and instruct the custodian to deliver ordinary shares represented by the canceled ADSs to the CCASS account designated by a holder.

● If a holder prefers to receive ordinary shares outside CCASS, he or she must receive ordinary shares in CCASS first and then arrange for withdrawal from CCASS. Investors can then obtain a transfer form signed by HKSCC Nominees Limited (as the transferor) and register ordinary shares in their own names with the Hong Kong Share Registrar.

For ordinary shares to be received in CCASS, under normal circumstances, the above steps generally require two business days, provided that the holder has provided timely and complete instructions. For ordinary shares to be received outside CCASS in physical form, the above steps may take 14 business days, or more, to complete. The holder will be unable to trade the ordinary shares on the SEHK until the ADS-to-share conversion procedures are completed.

Temporary delays may arise. For example, the transfer books of the depositary may from time to time be closed to ADS cancelations.

***Depositary Requirements***

Before the depositary issues ADSs or permits withdrawal of ordinary shares, the depositary may require:

● production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and

● compliance with procedures it may establish, from time to time, consistent with the deposit agreement, including but not limited to, completion and presentation of transfer documents.

The depositary may refuse to deliver, transfer, or register issuances, transfers and cancelations of ADSs generally when the transfer books of the depositary or our Hong Kong Share Registrar are closed or at any time if the depositary or we determine it advisable to do so or it would violate any applicable law or the depositary's policies or procedures.

All costs attributable to the transfer of ordinary shares to effect a withdrawal from, or deposit of ordinary shares into, the ADS program will be borne by the investor requesting the transfer. In particular, holders of ordinary shares and holders of ADSs should note that the Hong Kong Share Registrar will charge between HK$2.50 to HK$20, depending on the speed of service (or such higher fee as may from time to time be permitted under the Hong Kong Listing Rules), for each transfer of ordinary shares from one registered owner to another, each share certificate canceled or issued by it and any applicable fee as stated in the share transfer forms used in Hong Kong. In addition, holders of ordinary shares and holders of ADSs must pay up to US$5.00 per 100 ADSs for each issuance of ADSs and each cancelation of ADSs, as the case may be, in connection with the deposit of ordinary shares into, or withdrawal of ordinary shares from, the ADS program.

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#### PART II
**ITEM 13.** **DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

None.

**ITEM 14.** **MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

#### 14.A. – 14.D. Material Modifications to the Rights of Security Holders
See "Item 10. Additional Information" for a description of the rights of shareholders, which remain unchanged.

**14. E.** **Use of Proceeds**

Not applicable.

**ITEM 15.** **CONTROLS AND PROCEDURES**

#### Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, has performed an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report, as required by Rule 13a-15(b) under the Exchange Act.

Based upon that evaluation, our management has concluded that, as of December 31, 2025, our disclosure controls and procedures were effective in ensuring that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act was recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms, and that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure.

#### Management's Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. As required by Rule 13a-15(c) of the Exchange Act, our management conducted an evaluation of our company's internal control over financial reporting as of December 31, 2025 based on the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness of our internal control over financial reporting to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

#### Attestation Report of the Registered Public Accounting Firm
Ernst & Young Hua Ming LLP has audited the effectiveness of our internal control over financial reporting as of December 31, 2025 as stated in its report, which appears on page F-4 of this annual report on Form 20-F.

#### Changes in Internal Control over Financial Reporting
There were no changes in our internal controls over financial reporting that occurred during the period covered by this annual report on Form 20-F that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**ITEM 16. A.** **AUDIT COMMITTEE FINANCIAL EXPERT**

Our board of directors has determined that Mr. Ming-to Yu, an independent director and the chairman of our audit committee, qualifies as an "audit committee financial expert" within the meaning of the SEC rules and possesses financial sophistication within the meaning of Listing Rules of the Nasdaq Stock Market. Mr. Ming-to Yu satisfies the "independence" requirements of Rule 5605(a)(2) of the Listing Rules of the Nasdaq Stock Market and Rule 10A-3 under the Securities Exchange Act of 1934.

**ITEM 16. B.** **CODE OF ETHICS**

Our board of directors has adopted a code of business conduct and ethics that applies to all of our directors, officers, employees, including certain provisions that specifically apply to our principal executive officer, principal financial officer, principal accounting officer or controller and any other persons who perform similar functions for us. We have filed our code of business conduct and ethics as Exhibit 99.1 of our registration statement on Form F-1(file No. 333-237726)filed with the SEC on April 17, 2020, as amended. We hereby undertake to provide to any person without charge, a copy of our code of business conduct and ethics within ten working days after we receive such person's written request.

**ITEM 16. C.** **PRINCIPAL ACCOUNTANT FEES AND SERVICES**

#### Auditor Fees
The following table sets forth the aggregate fees by categories specified below in connection with certain professional services rendered by Ernst & Young Hua Ming LLP, our independent registered public accounting firm, for the periods indicated.

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| <br>**Services** | **2024** | **2025** |
|  | **RMB** | **RMB** |
|  | **(in thousands)** | **(in thousands)** |
| Audit Fees<sup>(1)</sup> | 16500 | 19500 |
| Tax Fees<sup>(2)</sup> | 937 | 752 |
| Others<sup>(3)</sup> | 828 | 763 |
| **Total** | **18265** | **21015** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) "Audit fees" means the aggregate fees billed for professional services rendered by our principal auditors for the audit of our annual financial statements and internal control over financial reporting for SEC filings, audit services associated with our registration statements, prospectus supplements, and services related to the Company's Hong Kong Stock Exchange filings, and provision of comfort letters, consents and other professtonal services in relation to our equity offering in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(2) "Tax fees" means the aggregate fees billed for professional services rendered by our principal auditors for tax compliance, tax advice and tax planning.

&nbsp;&nbsp;&nbsp;&nbsp;(3) "Others" means the aggregate fees billed for professional services rendered by our principal auditors other than the professional services reported under "audit fees", "audit-related fees" and "tax fees".

The policy of our audit committee is to pre-approve all audit and non-audit services provided by Ernst & Young Hua Ming LLP, including audit services, audit-related services, tax services and all other services as described above, other than those for de minimis services which are approved by the audit committee prior to the completion of the audit.

**ITEM 16. D.** **EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

Not applicable.

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**ITEM 16. E.** **PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

On March 31, 2022, our Board authorized the Company to adopt a share repurchase program, under which we may repurchase up to US$100 million of our ordinary shares in the form of ADSs during a twelve-month period (the "**U.S. Share Repurchase Program**"). The U.S. Share Repurchase Program has been terminated in December 2022.

At the annual general meeting convened on June 30, 2023, our Shareholders approved by an ordinary resolution to grant a general mandate (the "**HK Repurchase Mandate**") to the directors to exercise the powers of the Company to repurchase shares and/or ADSs of the Company representing up to 10% of the total number of the issued shares as at the date of passing of such resolution until (i) the conclusion of our next annual general meeting, or (ii) the date by which our next annual general meeting is required by the Articles or any applicable laws to be held, or (iii) the passing of an ordinary resolution by the Shareholders revoking or varying the authority given to the directors, whichever occurs first.

As of March 31, 2026, we did not repurchase ordinary shares under the HK Repurchase Mandate.

**ITEM 16. F.** **CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

Not applicable.

**ITEM 16. G.** **CORPORATE GOVERNANCE**

Rule 5635(c) of the Nasdaq Rules requires a Nasdaq-listed company to obtain its shareholders' approval of all equity compensation plans, including stock plans, and any material amendments to such plans. Rule 5615 of the Nasdaq Rules permits a foreign private issuer like our company to follow home country practice in certain corporate governance matters. Certain corporate governance practices in the Cayman Islands, which is our home country, may differ significantly from the Nasdaq corporate governance listing standards. We currently follow and intend to continue to follow Cayman Islands corporate governance practices in lieu of the Nasdaq corporate governance listing standards that listed companies must have a majority of independent directors serving on our board of directors or to establish a nominating committee and a compensation committee composed entirely of independent directors. To the extent we choose to follow home country practice in the future, our shareholders may be afforded less protection than they otherwise would under the Nasdaq corporate governance listing standards applicable to U.S. domestic issuers. See "Item 3. Key Information—D. Risk Factors—Risks Relating to Our ordinary shares and the ADSs—As an exempted company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq corporate governance listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with the Nasdaq corporate governance listing standards."

**ITEM 16. H.** **MINE SAFETY DISCLOSURE**

Not applicable.

**ITEM 16. I.** **DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**ITEM 16. J.** **INSIDER TRADING POLICIES**

We have adopted insider trading policies and procedures governing the purchase, sale and other dispositions of our securities by directors, senior management and employees, which policies and procedures are reasonably designed to promote compliance with applicable insider trading laws, rules and regulations, and any listing standards applicable to us. We have filed our insider trading policies, as amended, as Exhibit 11.2 to this annual report on Form 20-F.

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**ITEM 16. K. CYBERSECURITY** 

Cybersecurity risk management is an integral part of our overall risk management program. Our cybersecurity risk management program is designed to align with industry best practices and provide a framework for handling cybersecurity threats and incidents, including threats and incidents associated with the use of services provided by third-party service providers, and facilitate coordination across different departments of our company. This framework includes steps for regularly conducting data protection impact assessments on information systems, monitoring the information about the security vulnerabilities of our systems, identifying the source of a cybersecurity threat including whether the cybersecurity threat is associated with a third-party service provider, implementing data security emergency response plans and adopting remedial measures, and informing the Security and Privacy Committee and our board of directors of material cybersecurity threats and incidents. We also engage third-party security experts for risk assessment and system enhancements. In addition, we provide data security training to our employees regularly.

Our board of directors has overall oversight responsibility for our risk management, and delegates cybersecurity risk management oversight to the Security and Privacy Committee, which is chaired by the Chief Technology Officer and comprises several key management members. The Security and Privacy Committee is responsible for monitoring the implementation of our risk management policies across our company, ensuring that our company has processes in place designed to identify and evaluate cybersecurity risks to which the company is exposed and implement processes and programs to manage cybersecurity risks and mitigate cybersecurity incidents. The Security and Privacy Committee is also responsible for identifying, considering and assessing material cybersecurity risks on an ongoing basis, establishing processes to ensure that such potential cybersecurity risk exposures are monitored, putting in place appropriate mitigation measures and maintaining cybersecurity programs. Our cybersecurity programs are under the direction of the Security and Privacy Committee, which receives reports from our cybersecurity team and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents. Our Chief Technology Officer and dedicated personnel are certified and experienced information systems security professionals and information security managers with years of experience. The Security and Privacy Committee regularly updates the board of directors on the company's cybersecurity programs, material cybersecurity risks and mitigation strategies and provide cybersecurity reports annually that cover, among other topics, third-party assessments of the company's cybersecurity programs, developments in cybersecurity and updates to the company's cybersecurity programs and mitigation strategies.

In 2025, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition. However, despite our efforts, we cannot eliminate all risks from cybersecurity threats, or provide assurances that we have not experienced an undetected cybersecurity incident. For more information about these risks, please see "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—Data loss, security incidents and other 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."

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#### PART III
**ITEM 17.** **FINANCIAL STATEMENTS**

We have elected to provide financial statements pursuant to Item 18.

**ITEM 18.** **FINANCIAL STATEMENTS**

The consolidated financial statements of Kingsoft Cloud Holdings Limited are included at the end of this annual report.

**ITEM 19.** **EXHIBITS** 

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| | |
|:---|:---|
| **ExhibitNumber** | **Description of Document** |
| 1.1 | [The Second Amended and Restated Memorandum and Articles of Association of the Registrant, as currently in effect (incorporated herein by reference to Exhibit 3.1 to the current report on Form 6-K (File No. 001-39278), furnished with the Securities and Exchange Commission on December 29, 2022)](https://www.sec.gov/Archives/edgar/data/1795589/000110465922130646/tm2233583d1_ex3-1.htm)  |
| 2.1 | [Registrant's Specimen American Depositary Receipt (included in Exhibit 2.3)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520250235/d12646dex43.htm) |
| 2.2 | [Registrant's Specimen Certificate for ordinary shares (incorporated herein by reference to Exhibit 4.2 to the registration statement on Form F-1 (File No. 333-237726) filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex42.htm) |
| 2.3 | [Deposit Agreement, dated May 7, 2020 among the Registrant, the depositary and the owners and holders of the American Depositary Shares (incorporated herein by reference to Exhibit 4.3 to the registration statement on Form F-1 (File No. 333-248943), as amended, initially filed with the SEC on September 21, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520250235/d12646dex43.htm) |
| 2.4 | [Description of Registrant's Securities (incorporated herein by refer to Exhibit 2.4 to the annual report on Form 20-F (File No. 001-39278) filed with the SEC on April 27, 2023)](https://www.sec.gov/Archives/edgar/data/1795589/000110465923050820/kc-20221231xex2d4.htm)  |
| 2.5 | [Agreement and Plan of Merger By and Among Kingsoft Cloud Holdings Limited, Camelot Employee Scheme Inc. Yiming Ma, Heidi Chou, Benefit Overseas Limited and Dreams Power Ltd., dated as of July 31, 2021 (incorporated herein by reference to Exhibit 2.1 to the registration statement on Form F-3ASR (File No. 333-260181), as amended, initially filed with the SEC on October 12, 2021)](https://www.sec.gov/Archives/edgar/data/1795589/000119312521296436/d243156dex21.htm) |
| 4.1 | [Share Option Scheme, as amended on June 27, 2013, May 20, 2015 and December 26, 2016 (incorporated herein by reference to Exhibit 10.1 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex101.htm) |
| 4.2 | [Rules relating to the Share Award Scheme, as amended on January 9, 2015, March 3, 2016, June 8, 2016, December 7, 2018 and November 6, 2019 (incorporated herein by reference to Exhibit 10.2 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex102.htm) |
| 4.3 | [Form of Indemnification Agreement between the Registrant and its directors and executive officers (incorporated herein by reference to Exhibit 10.3 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex103.htm) |
| 4.4 | [Form of Employment Agreement between the Registrant and its executive officers (incorporated herein by reference to Exhibit 10.4 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex104.htm) |

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| | |
|:---|:---|
| **ExhibitNumber** | **Description of Document** |
| 4.5 | [English translation of Exclusive Consultation and Technical Service Agreement dated November 9, 2012, as amended and supplemented on November 29, 2019, among Beijing Kingsoft Cloud Network Technology Co., Ltd., Beijing Kingsoft Cloud Technology Co., Ltd. and Zhuhai Kingsoft Cloud Technology Co., Ltd. (incorporated herein by reference to Exhibit 10.5 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex105.htm) |
| 4.6 | [English translation of Supplemental Loan Agreement dated November 29, 2019, between Beijing Kingsoft Cloud Technology Co., Ltd. and Weiqin Qiu (incorporated herein by reference to Exhibit 10.6 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex106.htm) |
| 4.7 | [English translation of Creditor's Right Transfer Agreement dated November 9, 2012, among Weiqin Qiu, Jin Wang, Beijing Kingsoft Digital Entertainment Technology Co., Ltd. and Beijing Kingsoft Cloud Technology Co., Ltd. (incorporated herein by reference to Exhibit 10.7 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex107.htm) |
| 4.8 | [English translation of Equity Pledge Agreement dated June 20, 2014, among Beijing Kingsoft Cloud Technology Co., Ltd., Zhuhai Kingsoft Cloud Technology Co., Ltd, Beijing Kingsoft Digital Entertainment Technology Co., Ltd. and Weiqin Qiu (incorporated herein by reference to Exhibit 10.8 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex108.htm) |
| 4.9 | [English translation of Exclusive Purchase Option Agreement dated June 20, 2014, as amended and supplemented on November 29, 2019, among Beijing Kingsoft Cloud Technology Co., Ltd., Weiqin Qiu, Beijing Kingsoft Digital Entertainment Technology Co., Ltd. and Zhuhai Kingsoft Cloud Technology Co., Ltd. (incorporated herein by reference to Exhibit 10.9 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex109.htm) |
| 4.10 | [English translation of Shareholder Voting Right Trust Agreement dated June 20, 2014, as amended and supplemented on November 29, 2019, among Beijing Kingsoft Cloud Technology Co., Ltd., Weiqin Qiu, Beijing Kingsoft Digital Entertainment Technology Co., Ltd. and Zhuhai Kingsoft Cloud Technology Co., Ltd. (incorporated herein by reference to Exhibit 10.10 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex1010.htm) |
| 4.11 | [English translation of Amendment to Contractual Arrangement with Zhuhai Kingsoft Cloud Technology Co., Ltd. (incorporated herein by reference to Exhibit 4.11 to the annual report on Form 20-F (File No. 001-39278) filed with the SEC on April 27, 2023)](https://www.sec.gov/Archives/edgar/data/1795589/000110465923050820/kc-20221231xex4d11.htm)  |
| 4.12 | [English translation of Exclusive Consultation and Technical Service Agreement dated August 24, 2022, between Kingsoft Cloud (Beijing) Information Technology Co., Ltd. and Beijing Yunxiang Zhisheng Technology Co., Ltd. (incorporated herein by reference to Exhibit 4.12 to the annual report on Form 20-F (File No. 001-39278) filed with the SEC on April 27, 2023)](https://www.sec.gov/Archives/edgar/data/1795589/000110465923050820/kc-20221231xex4d12.htm)  |
| 4.13 | [English translation of Supplemental Loan Agreement dated August 24, 2022, among Beijing Yunxiang Zhisheng Technology Co., Ltd., Weiqin Qiu and Tao Zou (incorporated herein by reference to Exhibit 4.13 to the annual report on Form 20-F (File No. 001-39278) filed with the SEC on April 27, 2023)](https://www.sec.gov/Archives/edgar/data/1795589/000110465923050820/kc-20221231xex4d13.htm)  |
| 4.14 | [English translation of Equity Pledge Agreement dated August 24, 2022, among Kingsoft Cloud (Beijing) Information Technology Co., Ltd., Beijing Yunxiang Zhisheng Technology Co., Ltd., Weiqin Qiu and Tao Zou (incorporated herein by reference to Exhibit 4.14 to the annual report on Form 20-F (File No. 001-39278) filed with the SEC on April 27, 2023)](https://www.sec.gov/Archives/edgar/data/1795589/000110465923050820/kc-20221231xex4d14.htm)  |

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| | |
|:---|:---|
| **ExhibitNumber** | **Description of Document** |
| 4.15 | [English translation of Exclusive Purchase Option Agreement dated August 24, 2022, among Beijing Yunxiang Zhisheng Technology Co., Ltd., Weiqin Qiu, Tao Zou and Kingsoft Cloud (Beijing) Information Technology Co., Ltd. (incorporated herein by reference to Exhibit 4.15 to the annual report on Form 20-F (File No. 001-39278) filed with the SEC on April 27, 2023)](https://www.sec.gov/Archives/edgar/data/1795589/000110465923050820/kc-20221231xex4d15.htm) |
| 4.16 | [English translation of Shareholder Voting Right Trust Agreement dated August 24, 2022, among Beijing Yunxiang Zhisheng Technology Co., Ltd., Weiqin Qiu, Tao Zou and Kingsoft Cloud (Beijing) Information Technology Co., Ltd. (incorporated herein by reference to Exhibit 4.16 to the annual report on Form 20-F (File No. 001-39278) filed with the SEC on April 27, 2023)](https://www.sec.gov/Archives/edgar/data/1795589/000110465923050820/kc-20221231xex4d16.htm) |
| 4.17 | [English translation of Technology Transfer (Patent License) Agreement dated December 18, 2019 by and among Beijing Kingsoft Cloud Technology Co., Ltd., Beijing Kingsoft Cloud Network Technology Co., Ltd., Beijing Kingsoft Software Co., Ltd. and Zhuhai Kingsoft Software Co., Ltd. (incorporated herein by reference to Exhibit 10.26 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex1026.htm) |
| 4.18 | [English translation of Trademark License Agreement dated December 18, 2019 by and among Kingsoft Corporation Limited, Beijing Kingsoft Digital Entertainment Technology Co., Ltd., Zhuhai Kingsoft Software Co., Ltd. and the Registrant(incorporated herein by reference to Exhibit 10.27 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex1027.htm)  |
| 4.19 | [Registration Rights Agreement dated April 7, 2020 by and among the Registrant, Celestial Power Limited, ChinaAMC Special Investment Limited, METAWIT CAPITAL L.P., New Cloud Ltd., Shunwei Growth III Limited, Precious Steed Limited, FUTUREX INNOVATION SPC-Special Opportunity Fund VI SP, FutureX AI Opportunity Fund LP (acting through FutureX Innovation Limited as its general partner), FutureX Innovation SPC (acting for and on behalf of New Technology Fund I SP as one of its segregated portfolios), FutureX Innovation SPC (for the account of and on behalf of Special Opportunity Fund V SP), Howater Innovation I Limited Partnership, China Internet Investment Fund., DESIGN TIME LIMITED, Xiaomi Corporation and Kingsoft Corporation Limited. (incorporated herein by reference to Exhibit 10.17 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex1017.htm) |
| 4.20 | [2021 Share Incentive Plan, as amended (incorporated herein by reference to Exhibit 4.24 to the annual report on Form 20-F (File No. 001-39278) filed with the SEC on April 27, 2023)](https://www.sec.gov/Archives/edgar/data/1795589/000110465923050820/kc-20221231xex4d24.htm)  |
| 4.21 | [English translation of Loan Facility Framework Agreement dated December 4, 2023 with Kingsoft Corporation (incorporated herein by reference to Exhibit 4.25 to the annual report on Form 20-F (File No. 001-39278), as amended, initially filed with the SEC on April 30, 2024)](https://www.sec.gov/Archives/edgar/data/1795589/000110465924054351/kc-20231231xex4d25.htm) |
| 8.1\* | [Significant Subsidiaries, VIEs and Subsidiaries of VIEs of the Registrant](kc-20251231xex8d1.htm) |
| 11.1 | [Code of Business Conduct and Ethics of the Registrant (incorporated herein by reference to Exhibit 99.1 to the registration statement on Form F-1 (File No. 333-237726), as amended, initially filed with the SEC on April 17, 2020)](https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184dex991.htm) |
| 11.2 | [Statement of Policies Governing Material Non-public Information and the Prevention of Insider Trading (incorporated herein by reference to Exhibit 11.2 to the annual report on Form 20-F (File No. 001-39278) filed with the SEC on April 15, 2025)](https://www.sec.gov/Archives/edgar/data/1795589/000141057825000732/kc-20241231xex11d2.htm) |
| 12.1\* | [Certification by Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](kc-20251231xex12d1.htm) |
| 12.2\* | [Certification by Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](kc-20251231xex12d2.htm) |
| 13.1\*\* | [Certification by Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](kc-20251231xex13d1.htm) |

---

[**Table of Contents**](#TOC)

---

| | |
|:---|:---|
| **ExhibitNumber** | **Description of Document** |
| 13.2\*\* | [Certification by Principal Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](kc-20251231xex13d2.htm) |
| 15.1\* | [Consent of Fangda Partners](kc-20251231xex15d1.htm) |
| 15.2\* | [Consent of Maples and Calder (Hong Kong) LLP](kc-20251231xex15d2.htm) |
| 15.3\* | [Consent of Ernst & Young Hua Ming LLP, Independent Registered Public Accounting Firm](kc-20251231xex15d3.htm) |
| 97.1 | [Compensation Recoupment Policy (incorporated herein by reference to Exhibit 97.1 to the annual report on Form 20-F (File No. 001-39278), as amended, initially filed with the SEC on April 30, 2024)](https://www.sec.gov/Archives/edgar/data/1795589/000110465924054351/kc-20231231xex97d1.htm) |
| 101.INS\* | Inline XBRL Instance Document—this instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

\* Filed herewith

\*\* Furnished herewith

[**Table of Contents**](#TOC)

#### SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing its annual report on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

---

| | |
|:---|:---|
| Kingsoft Cloud Holdings Limited | Kingsoft Cloud Holdings Limited |
| By: | /s/ Yi Li |
| Name: | Yi Li |
| Title: | Chief Financial Officer |

---

Date: April 23, 2026

[**Table of Contents**](#TOC)

#### KINGSOFT CLOUD HOLDINGS LIMITED

#### INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#ReportofIndependentRegisteredPublicAccou) (PCAOB ID: 1408) | F-2 |
| [Consolidated Balance Sheets as of December 31, 2024 and 2025](#CONSOLIDATEDBALANCESHEETS_48735) | F-5 |
| [Consolidated Statements of Comprehensive Loss for the Years Ended December 31, 2023, 2024 and 2025](#CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVELOS) | F-7 |
| [Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2023, 2024 and 2025](#CONSOLIDATEDSTATEMENTSOFCHANGESINSHAREHO) | F-9 |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2024 and 2025](#CONSOLIDATEDSTATEMENTSOFCASHFLOWS_445381) | F-12 |
| [Notes to the Consolidated Financial Statements](#a1ORGANIZATIONANDBASISOFPRESENTATION_971) | F-15 |

---

[**Table of Contents**](#TOC)

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of Kingsoft Cloud Holdings Limited

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheets of Kingsoft Cloud Holdings Limited (the Company) as of December 31, 2025 and 2024, the related consolidated statements of comprehensive loss, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated April 23, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;***Impairment Assessment of Long-Lived Assets*** |
| &nbsp;&nbsp;*Description of the Matter* | &nbsp;&nbsp;As described in Notes 2 and 7 to the consolidated financial statements, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets in an asset group may not be fully recoverable. If impairment indicators are present, the Company evaluates the recoverability of long-lived assets in an asset group by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. As a result of the impairment assessment, no impairment losses were recognized for the Company's long-lived assets during the year ended December 31, 2025.<br>Auditing management's impairment assessment of long-lived assets required subjective auditor judgment due to the estimation uncertainty in determining the future undiscounted cash flows of the asset group for which impairment indicators are identified. Significant assumptions used included revenue growth rates for the public cloud service revenue and bandwidth and internet data center costs ("IDC costs") . These significant assumptions are forward looking and could be affected by future economic and market conditions.  |

---

[**Table of Contents**](#TOC)

---

| | |
|:---|:---|
| &nbsp;&nbsp;*How We Addressed the Matter in Our Audit* | &nbsp;&nbsp;We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company's long-lived asset impairment assessment process. For example, we tested the controls over management's review of the significant assumptions described above used to develop the undiscounted cash flow projections.<br>To test the Company's impairment assessment of the long-lived assets, we performed audit procedures that included, among others, evaluating the significant assumptions described above and testing the completeness and accuracy of the underlying data used. We compared the revenue growth rates for public cloud service revenue and IDC costs used by management to the Company's historical results, and considered current industry, market and economic trends and other relevant external data. We also performed sensitivity analyses of the significant assumptions discussed above to evaluate the changes in the future undiscounted cash flows of the asset group resulting from changes in the assumptions. |
|  | &nbsp;&nbsp;***Impairment Assessment of Cloud Service and Solutions Reporting Unit's Goodwill*** <br>|
| &nbsp;&nbsp;*Description of the Matter* | &nbsp;&nbsp;As of December 31, 2025, the Company's goodwill allocated to cloud service and solutions reporting unit was RMB3,650,504 thousands (US$522,015 thousands). As described in Notes 2 and 9 to the consolidated financial statements, the Company tested goodwill for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events. The Company performed quantitative assessment for the goodwill allocated to cloud service and solutions reporting unit. As a result of the impairment assessment, no impairment losses were recognized for the Company's goodwill allocated to cloud service and solutions reporting unit during the year ended December 31, 2025.<br>Auditing management's impairment assessment of goodwill required subjective auditor's judgment due to the estimation uncertainty in determining the fair value of the reporting unit. Significant assumptions used included revenue growth rates for public cloud service revenue, IDC costs and discount rate. These significant assumptions are forward looking and could be affected by future economic and market conditions.  |
| &nbsp;&nbsp;*How We Addressed the Matter in Our Audit* | &nbsp;&nbsp;We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company's impairment assessment process of goodwill. For example, we tested the controls over management's review of the significant assumptions described above used to determine the fair value of the reporting unit.<br>To test the Company's impairment assessment of goodwill, we performed audit procedures that included, among others, evaluating the significant assumptions described above and testing the completeness and accuracy of the underlying data used. We compared the revenue growth rates for public cloud service revenue and IDC costs used by management to the Company's historical results, and considered current industry, market and economic trends and other relevant external data. We involved our specialist to assist in the evaluation of discount rate used in the assessment. We also performed sensitivity analyses of the significant assumptions discussed above to evaluate the changes in the fair value of the reporting unit resulting from changes in the assumptions.  |

---

/s/ Ernst & Young Hua Ming LLP

We have served as the Company's auditor since 2019.

Beijing, the People's Republic of China

April 23, 2026

[**Table of Contents**](#TOC)

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of Kingsoft Cloud Holdings Limited

**Opinion on Internal Control Over Financial Reporting**

We have audited Kingsoft Cloud Holdings Limited's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Kingsoft Cloud Holdings Limited (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of comprehensive loss, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and our report dated April 23, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young Hua Ming LLP

Beijing, the People's Republic of China

April 23, 2026

[**Table of Contents**](#TOC)

#### KINGSOFT CLOUD HOLDINGS LIMITED

#### CONSOLIDATED BALANCE SHEETS
**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **Notes** | **2024** | **2025** | **2025** |
|  |  | **RMB** | **RMB** | **US$** |
| **ASSETS** |  |  |  |  |
| **Current assets:** |  |  |  |  |
| Cash and cash equivalents |  | 2648764 | 6018043 | 860569 |
| Restricted cash |  | 81337 | 99194 | 14185 |
| Accounts receivable, net of allowance for credit losses of RMB57,612 and RMB99,422 (US$14,217) as of December 31, 2024 and 2025, respectively | 5 | 1468663 | 1740472 | 248884 |
| Short-term investments |  | 90422 |  |  |
| Prepayments and other assets | 6 | 2233074 | 2592314 | 370695 |
| Amounts due from related parties | 18 | 318526 | 573396 | 81995 |
| **Total current assets** |  | **6840786** | **11023419** | **1576328** |
| **Non-current assets:** |  |  |  |  |
| Property and equipment, net | 7 | 4630052 | 10094870 | 1443547 |
| Intangible assets, net | 8 | 694880 | 532769 | 76185 |
| Goodwill | 9 | 4605724 | 4605724 | 658610 |
| Prepayments and other assets | 6 | 449983 | 139836 | 19996 |
| Equity investments | 2 | 234182 | 234166 | 33485 |
| Operating lease right-of-use assets | 10 | 137047 | 98405 | 14072 |
| **Total non-current assets** |  | **10751868** | **15705770** | **2245895** |
| **Total assets** |  | **17592654** | **26729189** | **3822223** |
| **LIABILITIES, NON-CONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY** |  |  |  |  |
| **Current liabilities**: |  |  |  |  |
| Accounts payable (including accounts payable of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB1,710,737 and RMB1,817,085 (US$259,840) as of December 31, 2024 and 2025, respectively) |  | 1877004 | 2014453 | 288063 |
| Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB1,490,594 and RMB1,986,957 (US$284,131) as of December 31, 2024 and 2025, respectively) | 10, 11 | 3341990 | 3222429 | 460801 |
| Short-term borrowings (including short-term borrowings of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB2,166,265 and RMB3,307,636 (US$472,986) as of December 31, 2024 and 2025, respectively) | 12 | 2225765 | 3348279 | 478798 |
| Income tax payable (including income tax payable of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB nil and RMB nil (US$ nil) as of December 31, 2024 and 2025, respectively) | 13 | 69219 | 73310 | 10483 |
| Amounts due to related parties (including amounts due to related parties of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB1,504,654 and RMB691,860 (US$98,935) as of December 31, 2024 and 2025, respectively) | 12, 18 | 1584199 | 721932 | 103235 |
| Current operating lease liabilities (including current operating lease liabilities of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB40,329 and RMB19,945 (US$2,852) as of December 31, 2024 and 2025, respectively) | 10 | 61258 | 40941 | 5854 |
| **Total current liabilities** |  | **9159435** | **9421344** | **1347234** |

---

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**CONSOLIDATED BALANCE SHEETS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **Notes** | **2024** | **2025** | **2025** |
|  |  | **RMB** | **RMB** | **US$** |
| **Non-current liabilities**: |  |  |  |  |
| Long-term borrowings (including long-term borrowings of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB1,660,584 and RMB3,023,538 (US$432,360) as of December 31, 2024 and 2025, respectively) | 12 | 1660584 | 3023538 | 432360 |
| Amounts due to related parties (including amounts due to related parties of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB309,612 and RMB2,212,325 (US$316,358) as of December 31, 2024 and 2025, respectively) | 12, 18 | 309612 | 2212325 | 316358 |
| Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB nil and RMB nil (US$ nil) as of December 31, 2024 and 2025, respectively) | 13 | 101677 | 61914 | 8854 |
| Other liabilities (including other liabilities of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB721,082 and RMB2,570,487 (US$367,575) as of December 31, 2024 and 2025, respectively) | 10, 11 | 790271 | 2645895 | 378359 |
| Non-current operating lease liabilities (including non-current operating lease liabilities of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB49,352 and RMB44,602 (US$6,378) as of December 31, 2024 and 2025, respectively) | 10 | 65755 | 51139 | 7313 |
| **Total non-current liabilities** |  | **2927899** | **7994811** | **1143244** |
| **Total liabilities** |  | **12087334** | **17416155** | **2490478** |
| **Commitments and contingencies** | 19 |  |  |  |
| **Shareholders' equity:** |  |  |  |  |
| Ordinary shares (par value of US$0.001 per share; 40,000,000,000 shares authorized, 3,805,284,801 and 4,531,784,801 shares issued, 3,687,690,772 and 4,479,857,667 shares outstanding as of December 31, 2024 and 2025, respectively) | 17 | 25689 | 30888 | 4417 |
| Treasury shares |  | (105478) | (31068) | (4443) |
| Additional paid-in capital |  | 18940885 | 24073006 | 3442394 |
| Statutory reserves funds |  | 32001 | 51661 | 7387 |
| Accumulated deficit |  | (14291957) | (15247868) | (2180416) |
| Accumulated other comprehensive income | 20 | 566900 | 440407 | 62977 |
| **Total Kingsoft Cloud Holdings Limited shareholders' equity** |  | **5168040** | **9317026** | **1332316** |
| Non-controlling interests |  | 337280 | (3992) | (571) |
| **Total equity** |  | **5505320** | **9313034** | **1331745** |
| **Total liabilities, non-controlling interests and shareholders' equity** |  | **17592654** | **26729189** | **3822223** |

---

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

#### KINGSOFT CLOUD HOLDINGS LIMITED

#### CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares and per share data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **Notes** | **2023** | **2024** | **2025** | **2025** |
|  |  | **RMB** | **RMB** | **RMB** | **US$** |
| **Revenues:** | 4, 18 |  |  |  |  |
| Public cloud services (including related party amounts of RMB981,049, RMB1,373,253 and RMB2,217,161 (US$317,049) for the years ended December 31, 2023, 2024 and 2025, respectively) |  | 4381741 | 5007251 | 6633492 | 948577 |
| Enterprise cloud services (including related party amounts of RMB125,857, RMB197,859 and RMB403,758 (US$57,737) for the years ended December 31, 2023, 2024 and 2025, respectively) |  | 2663993 | 2777777 | 2925127 | 418287 |
| Others (including related party amounts of RMB436, RMB nil and RMB nil (US$ nil) for the years ended December 31, 2023, 2024 and 2025, respectively) |  | 1727 | 152 |  |  |
| **Total revenues** |  | **7047461** | **7785180** | **9558619** | **1366864** |
| Cost of revenues  |  | (6197292) | (6444254) | (8055211) | (1151880) |
| **Gross profit** |  | **850169** | **1340926** | **1503408** | **214984** |
| **Operating expenses:** |  |  |  |  |  |
| Selling and marketing expenses |  | (460221) | (479369) | (551406) | (78850) |
| General and administrative expenses |  | (1060022) | (834854) | (914615) | (130788) |
| Research and development expenses |  | (784807) | (845989) | (810300) | (115871) |
| Impairment of long-lived assets | 7 | (653670) | (919724) |  |  |
| **Total operating expenses** |  | **(2958720)** | **(3079936)** | **(2276321)** | **(325509)** |
| **Operating loss** |  | **(2108551)** | **(1739010)** | **(772913)** | **(110525)** |
| Interest income |  | 78410 | 27008 | 80859 | 11563 |
| Interest expense |  | (146026) | (229705) | (498048) | (71220) |
| Foreign exchange (loss) gain |  | (57211) | (19531) | 60147 | 8601 |
| Other loss, net | 4 | (32673) | (12946) | (8984) | (1285) |
| Other income (expenses), net | 4 | 100363 | (6382) | 191044 | 27319 |
| **Loss before income taxes** |  | **(2165688)** | **(1980566)** | **(947895)** | **(135547)** |
| Income tax (expense) benefit | 13 | (17959) | 1524 | 4203 | 601 |
| **Net loss** |  | **(2183647)** | **(1979042)** | **(943692)** | **(134946)** |
| Less: net loss attributable to non-controlling interests |  | (7307) | (12362) | (7441) | (1064) |
| **Net loss attributable to Kingsoft Cloud Holdings Limited** |  | **(2176340)** | **(1966680)** | **(936251)** | **(133882)** |

---

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

#### KINGSOFT CLOUD HOLDINGS LIMITED
**CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares and per share data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **Notes** | **2023** | **2024** | **2025** | **2025** |
|  |  | **RMB** | **RMB** | **RMB** | **US$** |
| **Net loss per share:** |  |  |  |  |  |
| Basic and diluted | 16 | (0.61) | (0.54) | (0.23) | (0.03) |
| **Shares used in the net loss per share computation:** |  |  |  |  |  |
| Basic and diluted | 16 | 3558354940 | 3658088876 | 4107065011 | 4107065011 |
| **Other comprehensive income (loss), net of tax of nil:** |  |  |  |  |  |
| Foreign currency translation adjustments |  | 102241 | 11536 | (126272) | (18057) |
| **Comprehensive loss** |  | **(2081406)** | **(1967506)** | **(1069964)** | **(153003)** |
| Less: Comprehensive loss attributable to non-controlling interests |  | (7334) | (12384) | (7220) | (1032) |
| **Comprehensive loss attributable to Kingsoft Cloud Holdings Limited** |  | **(2074072)** | **(1955122)** | **(1062744)** | **(151971)** |

---

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

#### CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),except for number of shares)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary shares** | **Ordinary shares** | | | | | | | | |
|  | **Number of**<br>**shares\*** | <br>**Amount** | <br>**Treasury**<br>**Shares** | <br>**Additional**<br>**paid-in**<br>**capital** | <br>**Accumulated**<br>**other**<br>**comprehensive**<br>**income**  | <br>**Statutory** <br>**reserves** <br>**funds** | <br>**Accumulated**<br>**deficit** | **Total Kingsoft**<br>**Cloud Holdings**<br>**Limited**<br>**shareholders'**<br>**equity**  | <br>**Non-** <br>**controlling**<br>**interests** | <br>**Total**<br>**shareholders'**<br>**equity** |
|  |  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| Balance as of December 31, 2022 | 3508413941 | 25062 | (208385) | 18648205 | 453074 | 14700 | (10131636) | 8801020 | 782479 | 9583499 |
| Net loss for the year |  |  |  |  |  |  | (2176340) | (2176340) | (7307) | (2183647) |
| Other comprehensive income (loss) |  |  |  |  | 102268 |  |  | 102268 | (27) | 102241 |
| Appropriation to statutory reserves |  |  |  |  |  | 7065 | (7065) |  |  |  |
| Disposal of a subsidiary |  |  |  |  |  |  |  |  | 437 | 437 |
| Share-based compensation (Note 14) |  |  |  | 175557 |  |  |  | 175557 | 6088 | 181645 |
| Exercise and vesting of share-based awards (Note 14) | 53683525 | 381 |  | 10802 |  |  |  | 11183 |  | 11183 |
| Acquisition of non-controlling interests (Note 11)  |  |  |  | (23536) |  |  |  | (23536) | (425918) | (449454) |
| Balance as of December 31, 2023 | 3562097466 | 25443 | (208385) | 18811028 | 555342 | 21765 | (12315041) | 6890152 | 355752 | 7245904 |

---

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary shares** | **Ordinary shares** | | | | | | | | |
|  | **Number of**<br>**shares\*** | <br>**Amount** | <br>**Treasury**<br>**Shares** | <br>**Additional**<br>**paid-in**<br>**capital** | <br>**Accumulated**<br>**other**<br>**comprehensive**<br>**income** | <br>**Statutory** <br>**reserves** <br>**funds** | <br>**Accumulated**<br>**deficit** | **Total Kingsoft**<br>**Cloud Holdings**<br>**Limited**<br>**shareholders'**<br>**equity** | <br>**Non-** <br>**controlling**<br>**interests** | <br>**Total**<br>**shareholders'**<br>**equity** |
|  |  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| Balance as of December 31, 2023 | 3562097466 | 25443 | (208385) | 18811028 | 555342 | 21765 | (12315041) | 6890152 | 355752 | 7245904 |
| Net loss for the year |  |  |  |  |  |  | (1966680) | (1966680) | (12362) | (1979042) |
| Other comprehensive income (loss) |  |  |  |  | 11558 |  |  | 11558 | (22) | 11536 |
| Appropriation to statutory reserves |  |  |  |  |  | 10236 | (10236) |  |  |  |
| Share-based compensation (Note 14) |  |  |  | 220529 |  |  |  | 220529 | (6088) | 214441 |
| Exercise and vesting of share-based awards (Note 14) | 125593306 | 246 | 102907 | (90672) |  |  |  | 12481 |  | 12481 |
| Balance as of December 31, 2024 | 3687690772 | 25689 | (105478) | 18940885 | 566900 | 32001 | (14291957) | 5168040 | 337280 | 5505320 |

---

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

#### KINGSOFT CLOUD HOLDINGS LIMITED
**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary shares** | **Ordinary shares** | | | | | | | | |
|  | **Number of**<br>**shares\*** | <br>**Amount** | <br>**Treasury**<br>**Shares** | <br>**Additional**<br>**paid-in**<br>**capital** | <br>**Accumulated**<br>**other**<br>**comprehensive**<br>**income** | <br>**Statutory** <br>**reserves** <br>**funds** | <br>**Accumulated**<br>**deficit** | **Total Kingsoft**<br>**Cloud Holdings**<br>**Limited**<br>**shareholders'**<br>**equity** | <br>**Non-** <br>**controlling**<br>**interests** | <br>**Total**<br>**shareholders'**<br>**equity** |
|  |  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| Balance as of December 31, 2024 | 3687690772 | 25689 | (105478) | 18940885 | 566900 | 32001 | (14291957) | 5168040 | 337280 | 5505320 |
| Net loss for the year |  |  |  |  |  |  | (936251) | (936251) | (7441) | (943692) |
| Issuance of ordinary shares | 726500000 | 5199 |  | 4528134 |  |  |  | 4533333 |  | 4533333 |
| Other comprehensive income (loss) |  |  |  |  | (126493) |  |  | (126493) | 221 | (126272) |
| Appropriation to statutory reserves |  |  |  |  |  | 19660 | (19660) |  |  |  |
| Share-based compensation (Note 14) |  |  |  | 446909 |  |  |  | 446909 |  | 446909 |
| Exercise and vesting of share-based awards (Note 14) | 65666895 |  | 74410 | (46973) |  |  |  | 27437 |  | 27437 |
| Acquisition of non-controlling interests\*\* |  |  |  | 204051 |  |  |  | 204051 | (334052) | (130001) |
| Balance as of December 31, 2025 | 4479857667 | 30888 | (31068) | 24073006 | 440407 | 51661 | (15247868) | 9317026 | (3992) | 9313034 |
| Balance as of December 31, 2025, in US$ | 4479857667 | 4417 | (4443) | 3442394 | 62977 | 7387 | (2180416) | 1332316 | (571) | 1331745 |

---

\* As of December 31, 2023, 2024 and 2025, 59,286,225, 24,509,339 and 24,509,339, ordinary shares, respectively, were issued in relation to the share awards. These shares are legally issued but not outstanding.

\*\* In 2025, the Group acquired the remaining 7.77% of equity interest of Camelot Information Systems Inc. ("Camelot") and the acquisition of the non-controlling interests was recognized as an equity transaction. Upon the completion of the acquisition, the Group owned 100% of equity interest in Camelot. The purchase consideration was fully paid as of December 31, 2025.

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

#### CONSOLIDATED STATEMENTS OF CASH FLOWS
**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"))**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |  |  |
| **Net loss** | (2183647) | (1979042) | (943692) | (134946) |
| **Adjustments to reconcile net loss to net cash (used in) generated from operating activities:** |  |  |  |  |
| Depreciation and amortization | 940482 | 1263090 | 2480364 | 354687 |
| Share-based compensation | 181645 | 214441 | 446909 | 63907 |
| Provision for credit losses | 502185 | 309858 | 200169 | 28624 |
| Loss (gain) on disposal of property and equipment | 22996 | (44625) | (102966) | (14724) |
| Changes in fair value of equity investments | 10680 | 10526 |  |  |
| Impairment of equity investments | 13582 |  |  |  |
| Changes in fair value of purchase consideration of a business acquisition | 14433 |  |  |  |
| Gain on disposal of a subsidiary | (6022) |  |  |  |
| Impairment of contract costs |  | 23869 | 10526 | 1505 |
| Impairment of long-lived assets  | 653670 | 919724 |  |  |
| Foreign exchange loss (gain) | 57211 | 19531 | (60147) | (8601) |
| Deferred income tax | (24487) | (40889) | (39759) | (5685) |
| Non-cash operating lease expense | 42617 | 41864 | 38298 | 5477 |
| Other non-cash expenses |  | 1998 | 10584 | 1513 |
| **Changes in operating assets and liabilities:** |  |  |  |  |
| Accounts receivable | 375242 | (219098) | (459383) | (65691) |
| Prepayments and other assets | (216303) | (48996) | (88877) | (12709) |
| Amounts due from related parties | (13007) | (50482) | (256745) | (36714) |
| Accounts payable | (621327) | (187878) | 292118 | 41772 |
| Accrued expenses and other liabilities | 183381 | 440995 | 3775 | 540 |
| Operating lease liabilities | (37401) | (50071) | (34590) | (4946) |
| Amounts due to related parties | (73522) | (1654) | 2300353 | 328946 |
| Income tax payable | 8522 | 5258 | 4091 | 585 |
| **Net cash (used in) generated from operating activities** | **(169070)** | **628419** | **3801028** | **543540** |

---

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

#### KINGSOFT CLOUD HOLDINGS LIMITED
**CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"))**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |  |  |
| Purchases and prepayment for property and equipment | (1958759) | (3672069) | (4742365) | (678150) |
| Disposal of property and equipment | 12310 | 263 | 115294 | 16487 |
| Purchases of intangible assets | (5979) | (11120) |  |  |
| Purchases of short-term investments | (550151) | (90000) | (70953) | (10146) |
| Proceeds from maturities of short-term investments | 1830492 |  | 161375 | 23076 |
| Acquisition of equity investments | (12070) | (2770) |  |  |
| Disposal of equity investments | 2647 |  |  |  |
| Asset-related government grants received | 4372 | 155251 | 6920 | 990 |
| Disposal of a subsidiary | 3952 |  |  |  |
| **Net cash used in investing activities** | **(673186)** | **(3620445)** | **(4529729)** | **(647743)** |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |  |  |
| Repayments of short-term borrowings | (963000) | (1318379) | (2330640) | (333277) |
| Proceeds from short-term borrowings | 1164396 | 2465884 | 2771762 | 396357 |
| Repayments of long-term borrowings |  | (2000) | (159689) | (22835) |
| Proceeds from long-term borrowings | 100000 | 1537254 | 2335800 | 334015 |
| Acquisition of non-controlling interests | (100000) | (100004) | (386000) | (55197) |
| Principal repayments of financing leases | (13308) | (137656) | (819981) | (117256) |
| Settlements and modifications of financial liabilities arising from business combinations | (577809) | (125249) | (532507) | (76146) |
| Proceeds from loans due to related parties | 900000 | 2000914 | 350000 | 50049 |
| Repayments of loans due to related parties | (741978) | (1077425) | (1609907) | (230215) |
| Proceeds from exercise of options | 3847 | 12079 | 30812 | 4406 |
| Issuance of ordinary shares |  |  | 4533333 | 648258 |
| **Net cash (used in) generated from financing activities** | **(227852)** | **3255418** | **4182983** | **598159** |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 25863 | (22772) | (67146) | (9601) |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (1044245) | 240620 | 3387136 | 484355 |
| Cash, cash equivalents, and restricted cash at the beginning of the year | 3533726 | 2489481 | 2730101 | 390399 |
| Cash, cash equivalents, and restricted cash at the end of the year | **2489481** | **2730101** | **6117237** | **874754** |

---

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"))**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **Notes** | **2023** | **2024** | **2025** | **2025** |
|  |  | **RMB** | **RMB** | **RMB** | **US$** |
| **Supplemental disclosures of cash flow information:** |  |  |  |  |  |
| Income taxes paid |  | 33923 | 34106 | 31465 | 4499 |
| Interest expense paid |  | 96730 | 185491 | 315426 | 45105 |
| **Non-cash investing and financing activities:** |  |  |  |  |  |
| Purchases of property and equipment included in accrued expenses and other liabilities | 11 | 458978 | 348284 | 270867 | 38733 |
| Purchase consideration included in accrued expenses and other liabilities | 11 | 678732 | 569050 | 118415 | 16933 |
| Consideration for acquisition of non-controlling interests | 11 | 352483 | 251000 |  |  |
| **Reconciliation of cash and cash equivalents, and restricted cash:** |  |  |  |  |  |
| Cash and cash equivalents |  | 2255287 | 2648764 | 6018043 | 860569 |
| Restricted cash |  | 234194 | 81337 | 99194 | 14185 |
| **Total cash and cash equivalents, and restricted cash shown in the statements of cash flows** |  | 2489481 | 2730101 | 6117237 | 874754 |

---

*The accompanying notes are an integral part of the consolidated financial statements.*

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **ORGANIZATION AND BASIS OF PRESENTATION** 

Kingsoft Cloud Holdings Limited (the "Company") is a limited liability company incorporated in the Cayman Islands on January 3, 2012. The Company, its subsidiaries, its variable interest entities, and subsidiaries of its variable interest entities are hereinafter collectively referred to as the "Group". The Group is principally engaged in the provision of cloud services. The Company does not conduct any substantive operations on its own but instead conducts its primary business operations through its subsidiaries, the variable interest entities, and subsidiaries of its variable interest entities, which are located in Chinese mainland, Hong Kong ("HK"), Japan and the United States (the "U.S.").

The Company's principal subsidiaries, variable interest entities, and subsidiaries of its variable interest entities, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Percentage of equity**  | **Percentage of equity**  | |
| | | | | **interest**  | **interest**  | |
| | | | | **attributable to** | **attributable to** | |
| <br>**Name** | <br>**Place of**<br>**establishment and operations** | <br>**Issued** <br>**ordinary/registered** <br>**share capital** | <br>**Date of** <br>**establishment/** <br>**acquisition** | **the Company** | **the Company** | <br>**Principal activities** |
|  |  |  |  | **Direct (%)** | **Indirect (%)** |  |
| **Subsidiaries:** |  |  |  |  |  |  |
| Kingsoft Cloud Corporation Limited | HK | HK$2,000 thousands | February 1, 2012 | 100 |  | Cloud services |
| Beijing Kingsoft Cloud Technology Co., Ltd. ("Beijing Kingsoft Cloud") \* | Chinese mainland | RMB910,000 | April 9, 2012 |  | 100 | Research and development |
| Beijing Yunxiang Zhisheng Technology Co., Ltd. ("Yunxiang Zhisheng") \* | Chinese mainland | RMB1,390,000 | December 15, 2015 |  | 100 | Research and development |
| Camelot Technology Co., Ltd. ("Camelot Technology") \*\* | Chinese mainland | RMB250,000 | September 3, 2021 |  | 100 | Enterprise digital solutions and related services |
| Hainan Yangpu Kingsoft Cloud Information Technology Co., Ltd. | Chinese mainland | USD600,000 | August 4, 2022 |  | 100 | Cloud services |
| **Variable interest entities:** |  |  |  |  |  |  |
| Zhuhai Kingsoft Cloud Technology Co., Ltd. ("Zhuhai Kingsoft Cloud") \*\* | Chinese mainland | RMB11,080 | November 9, 2012 | Nil |  | Investment holding |
| Kingsoft Cloud (Beijing) Information Technology Co., Ltd. ("Kingsoft Cloud Information") \*\* | Chinese mainland | RMB10,000 | April 13, 2018 | Nil |  | Investment holding |
| **Variable interest entities' subsidiaries:** |  |  |  |  |  |  |
| Beijing Kingsoft Cloud Network Technology Co., Ltd. ("Beijing Kingsoft Cloud Network Technology") \*\* | Chinese mainland | RMB200,000 | November 9, 2012 |  | Nil | Cloud services |
| Beijing Jinxun Ruibo Network Technology Co., Ltd. ("Beijing Jinxun Ruibo") \*\* | Chinese mainland | RMB10,000 | December 17, 2015 |  | Nil | Cloud services |
| Nanjing Qianyi Shixun Information Technology Co., Ltd. \*\* | Chinese mainland | RMB15,000 | March 31, 2016 |  | Nil | Cloud services |
| Wuhan Kingsoft Cloud Information Technology Co., Ltd. \*\* | Chinese mainland | RMB100,000 | December 26, 2017 |  | Nil | Cloud services |
| Kingsoft Cloud (Tianjin) Technology Development Co., Ltd. \*\* | Chinese mainland | RMB100,000 | May 30, 2019 |  | Nil | Cloud services |
| Lingqiong Shunlian (Qingyang) Data Technology Co., Ltd.\*\* | Chinese mainland | RMB300,000 | March 9, 2021 |  | Nil | Cloud services |

---

\* These companies are registered as wholly foreign-owned enterprises ("WFOE") and limited liability enterprises under the law of Chinese mainland.

\*\* These companies are registered as limited liability enterprises under the law of Chinese mainland.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **ORGANIZATION AND BASIS OF PRESENTATION (Continued)** 

To comply with laws and regulations of Chinese mainland which prohibit foreign control of companies that engage in value-added telecommunication services, the Group primarily conducts its business in Chinese mainland through its variable interest entities, Zhuhai Kingsoft Cloud and Kingsoft Cloud Information, and subsidiaries of its variable interest entities (collectively, the "VIEs"). The equity interests of the VIEs are legally held by Chinese mainland shareholders (the "Nominee Shareholders"). Despite the lack of technical majority ownership, the Company through WFOE has effective control of the VIEs through a series of contractual arrangements (the "Contractual Agreements"). Through the Contractual Agreements, the Nominee Shareholders effectively assigned all of their voting rights underlying their equity interests in the VIEs to the Company and therefore, the Company has the power to direct the activities of the VIEs that most significantly impact its economic performance. The Company also has the ability and obligation to absorb substantially all of the profits and all the expected losses of the VIEs that potentially could be significant to the VIEs. Therefore, the Company is the primary beneficiary of the VIEs. Based on the above, the Company consolidates the VIEs in accordance with SEC Regulation SX-3A-02 and Accounting Standards Codification ("ASC") 810, *Consolidation* ("ASC 810").

The following is a summary of the Contractual Agreements:

#### Shareholder Voting Right Trust Agreements
Pursuant to the shareholder voting right trust agreements signed amongst Beijing Kingsoft Cloud, Zhuhai Kingsoft Cloud and its Nominee Shareholders, each Nominee Shareholder irrevocably authorizes the person designated by Beijing Kingsoft Cloud to act as his, her or its attorney-in-fact ("AIF") to exercise on such Nominee Shareholder's behalf any and all rights that such shareholder has in respect of his, her or its equity interests in Zhuhai Kingsoft Cloud. Beijing Kingsoft Cloud has the right to replace the authorized AIF at any time upon written notice without consent from the other parties. The rights as a shareholder of Zhuhai Kingsoft Cloud, including, but not limited to, the right to attend shareholders' meetings, vote on any resolution that requires a shareholder vote, such as the appointment of executive directors and senior management. The shareholder voting right trust agreements are valid as long as the Nominee Shareholders remain the shareholders of the VIEs. Zhuhai Kingsoft Cloud and its Nominee Shareholders have no right to unilaterally terminate the agreement.

The terms of the shareholder voting right trust agreements signed amongst Yunxiang Zhisheng, Kingsoft Cloud Information and its Nominee Shareholders are the same as the terms described above.

#### Loan Agreements
Beijing Kingsoft Cloud has granted interest-free loans with an aggregate amount of RMB279 to one shareholder of Zhuhai Kingsoft Cloud. The loan was solely for the purposes of capital injection of Zhuhai Kingsoft Cloud. The loans are only repayable by the shareholder through a transfer of her equity interests in Zhuhai Kingsoft Cloud to Beijing Kingsoft Cloud or its designated person(s).

The terms of the loan agreement signed between Yunxiang Zhisheng and all Nominee Shareholders of Kingsoft Cloud Information are the same as the terms described above, except that the total amount of loans extended to all Nominee Shareholders of Kingsoft Cloud Information is RMB10,000.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **ORGANIZATION AND BASIS OF PRESENTATION (Continued)** 

#### Exclusive Purchase Option Agreements
Pursuant to the exclusive purchase option agreement amongst Beijing Kingsoft Cloud, Zhuhai Kingsoft Cloud and its Nominee Shareholders, Beijing Kingsoft Cloud has an exclusive irrevocable option to purchase, all or part of the equity interests in Zhuhai Kingsoft Cloud, when and to the extent permitted under laws of Chinese mainland. The purchase price of the equity interests in Zhuhai Kingsoft Cloud shall be equal to the minimum amount of consideration permitted by applicable laws of Chinese mainland or either RMB0.001 or the loan amount, whichever is higher. Without the prior consent of the WFOE, the VIEs and the Nominee Shareholders shall not: (i) amend the articles of association, (ii) increase or decrease the registered capital, (iii) sell or otherwise dispose of their assets or beneficial interest, (iv) create or allow any encumbrance on their assets or other beneficial interests, (v) extend any loans to third parties, (vi) enter into any material contracts (except those contracts entered into in the ordinary course of business), (vii) merge with or acquire any other persons or make any investments, or (viii) distribute dividends to their shareholders. Any proceeds received by the Nominee Shareholders from the exercise of the option, distribution of profits or dividends, shall be remitted to the WFOE or their designated person(s), to the extent permitted under laws of Chinese mainland. In addition, the Nominee Shareholders granted Beijing Kingsoft Cloud an exclusive right to designate one or more persons to purchase all or part of the equity interests in Zhuhai Kingsoft Cloud. The exclusive purchase option agreement will terminate when the Nominee Shareholders transfer all of their equity interests in Zhuhai Kingsoft Cloud to Beijing Kingsoft Cloud or its designated person(s).

The terms of the exclusive purchase option agreement signed amongst Yunxiang Zhisheng, Kingsoft Cloud Information and its Nominee Shareholders are the same as the terms described above.

#### Exclusive Consultation and Technical Services Agreements
Pursuant to the exclusive consultation and technical services agreement between Beijing Kingsoft Cloud and Zhuhai Kingsoft Cloud, Beijing Kingsoft Cloud has the sole and exclusive right to provide Zhuhai Kingsoft Cloud with consulting services and technical services. Without the prior written consent of Beijing Kingsoft Cloud, Zhuhai Kingsoft Cloud may not directly or indirectly accept any services subject to the exclusive consultation and technical services agreement from any third party, while Beijing Kingsoft Cloud has the right to designate any party to provide such services. Zhuhai Kingsoft Cloud will pay Beijing Kingsoft Cloud a service fee periodically which is adjustable at the sole discretion of Beijing Kingsoft Cloud. The exclusive consultation and technical services agreements will remain effective unless terminated by the WFOE at its sole discretion.

The terms of the exclusive consultation and technical services agreement signed between Yunxiang Zhisheng and Kingsoft Cloud Information are the same as the terms described above, except that the agreement will continuously remain effective unless both parties agree to terminate the agreement.

#### Equity Pledge Agreements
Pursuant to the equity pledge agreement amongst Beijing Kingsoft Cloud, Zhuhai Kingsoft Cloud and its Nominee Shareholders, the Nominee Shareholders have pledged all of their equity interests in Zhuhai Kingsoft Cloud to Beijing Kingsoft Cloud to guarantee performance of their obligations under the Contractual Agreements described above. During the term of the equity pledge agreement, Beijing Kingsoft Cloud has the right to receive all of Zhuhai Kingsoft Cloud's dividends and profits distributed on the pledged equity. In the event of a breach by Zhuhai Kingsoft Cloud or any of its Nominee Shareholders of the contractual obligations under the equity pledge agreement, Beijing Kingsoft Cloud, as pledgee, will have the right to dispose of the pledged equity interests in Zhuhai Kingsoft Cloud and will have priority in receiving the proceeds from such disposal. Zhuhai Kingsoft Cloud and its Nominee Shareholders undertake that, without the prior written consent of Beijing Kingsoft Cloud, they will not transfer, or create or allow any encumbrance on the pledged equity interests. The equity pledge agreements will be in effect permanently until Zhuhai Kingsoft Cloud and its Nominee Shareholders have fulfilled all the obligations under the Contractual Agreements.

The terms of the equity pledge agreement signed amongst Yunxiang Zhisheng, Kingsoft Cloud Information and its Nominee Shareholders are the same as the terms described above.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **ORGANIZATION AND BASIS OF PRESENTATION (Continued)** 

#### Financial Support Undertaking Letter
Pursuant to the financial support undertaking letter, the Company is obligated and hereby undertakes to provide unlimited financial support to the VIEs, to the extent permissible under the applicable laws and regulations of Chinese mainland, whether or not any such operational loss is actually incurred. The Company will not request repayment of the loans or borrowings if the VIEs or their Nominee Shareholders do not have sufficient funds or are unable to repay.

#### Resolutions of all Shareholders and resolution of the Board of Directors of the Company
The Shareholders and the Company's Board of Directors resolved that the rights under the Shareholder Voting Right Trust Agreements and the Exclusive Purchase Option Agreements were assigned to the Board of Directors of the Company or any officer authorized by the Board of Directors.

In the opinion of the Company's legal counsel, (i) the ownership structure relating to the VIEs complies with current laws and regulations of Chinese mainland; (ii) the Contractual Agreements with the VIEs and the Nominee Shareholders are valid, binding and enforceable on all parties to these Contractual Agreements and do not violate current laws or regulations of Chinese mainland; and (iii) the resolutions are valid in accordance with the memorandum and articles of association of the Company and Cayman Islands Law.

However, uncertainties in Chinese mainland legal system could cause the relevant regulatory authorities to find the current Contractual Agreements and businesses to be in violation of any existing or future laws or regulations of Chinese mainland and could limit the Company's ability to enforce its rights under these contractual arrangements. Furthermore, the Nominee Shareholders of the VIEs may have interests that are different from those of the Company, which could potentially increase the risk that they would seek to act contrary to the terms of the Contractual Agreements with the VIEs. In addition, if the Nominee Shareholders will not remain the shareholders of the VIEs, breach, or cause the VIEs to breach, or refuse to renew the existing Contractual Arrangements the Company has with them and the VIEs, the Company may not be able to effectively control the VIEs and receive economic benefits from them, which may result in deconsolidation of the VIEs.

In addition, if the current structure or any of the contractual arrangements were found to be in violation of any existing or future laws or regulations of Chinese mainland, the Company may be subject to penalties, including but not be limited to, revocation of business and operating licenses, discontinuing or restricting business operations, restricting the Company's right to collect revenues, temporary or permanent blocking of the Company's internet platforms, restructuring of the Company's operations, imposition of additional conditions or requirements with which the Company may not be able to comply, or other regulatory or enforcement actions against the Company that could be harmful to its business. The imposition of any of these or other penalties could have a material adverse effect on the Company's ability to conduct its business.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **ORGANIZATION AND BASIS OF PRESENTATION (Continued)** 

The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and VIEs' subsidiaries included in the Company's consolidated balance sheets, consolidated statements of comprehensive loss and consolidated statements of cash flows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **ASSETS** |  |  |  |
| **Current assets:** |  |  |  |
| Cash and cash equivalents | 1167677 | 1369890 | 195892 |
| Restricted cash | 45500 | 49106 | 7022 |
| Accounts receivable, net of allowance for credit losses of RMB43,103 and RMB82,698 (US$11,826) as of December 31, 2024 and 2025, respectively | 1044659 | 1305535 | 186689 |
| Prepayments and other assets | 1320306 | 1709831 | 244503 |
| Amounts due from related parties | 266392 | 441954 | 63199 |
| Amounts due from subsidiaries of the Group | 3358071 | 2351001 | 336189 |
| **Total current assets** | **7202605** | **7227317** | **1033494** |
| **Non-current assets:** |  |  |  |
| Property and equipment, net | 4534518 | 9949308 | 1422732 |
| Intangible assets, net | 74107 | 64929 | 9285 |
| Prepayments and other assets | 448922 | 139486 | 19946 |
| Goodwill | 48815 | 48815 | 6980 |
| Equity investments | 166114 | 166114 | 23754 |
| Operating lease right-of-use assets | 94952 | 66221 | 9469 |
| **Total non-current assets** | **5367428** | **10434873** | **1492166** |
| **Total assets** | **12570033** | **17662190** | **2525660** |
| **Current liabilities:** |  |  |  |
| Accounts payable | 1710737 | 1817085 | 259840 |
| Accrued expenses and other current liabilities | 1490594 | 1986957 | 284131 |
| Short-term borrowings | 2166265 | 3307636 | 472986 |
| Amounts due to related parties | 1504654 | 691860 | 98935 |
| Current operating lease liabilities | 40329 | 19945 | 2852 |
| Amounts due to subsidiaries of the Group | 3951665 | 3168990 | 453160 |
| **Total current liabilities** | **10864244** | **10992473** | **1571904** |
| **Non-current liabilities:** |  |  |  |
| Long-term borrowings | 1660584 | 3023538 | 432360 |
| Other liabilities | 721082 | 2570487 | 367575 |
| Non-current operating lease liabilities | 49352 | 44602 | 6378 |
| Amounts due to related parties | 309612 | 2212325 | 316358 |
| Amounts due to subsidiaries of the Group | 9267652 | 9784789 | 1399206 |
| **Total non-current liabilities** | **12008282** | **17635741** | **2521877** |
| **Total liabilities** | **22872526** | **28628214** | **4093781** |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **ORGANIZATION AND BASIS OF PRESENTATION (Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Revenues | 4599721 | 5202692 | 6620373 | 946701 |
| Net loss | (2110022) | (1913044) | (768096) | (109836) |
| Net cash (used in) generated from operating activities | (286575) | 412302 | 2519735 | 360317 |
| Net cash used in investing activities | (1833636) | (3036703) | (4532128) | (648086) |
| Net cash generated from financing activities | 1809799 | 2881726 | 2187700 | 312837 |

---

The carrying amounts of the assets, liabilities and the results of operations of the VIEs and their subsidiaries are presented in aggregate due to the similarity of the purpose and design of the VIEs and their subsidiaries, the nature of the assets in these VIEs and their subsidiaries and the type of the involvement of the Company in these VIEs and their subsidiaries.

The revenue-producing assets that are held by the VIEs and their subsidiaries comprise mainly electronic equipment, and data center machinery and equipment. The VIEs and their subsidiaries contributed an aggregate of 65.3%, 66.8% and 69.3% of the Group's consolidated revenue for the years ended December 31, 2023, 2024 and 2025, respectively, after elimination of inter-entity transactions.

As of December 31, 2024 and 2025, except for RMB2,177,992 and RMB2,146,782 (US$306,986) of VIEs' subsidiaries' electronic equipment that was secured for the loans borrowed from Xiaomi Group and other financial institutions (Note 12 and Note 18), and RMB8,958 and RMB35,257 (US$5,042) of a VIE's subsidiary's restricted cash that was secured for certain payables to suppliers, respectively, there was no other pledge or collateralization of the VIEs and VIEs' subsidiaries' assets that can only be used to settle obligations of the VIEs and VIEs' subsidiaries. Other than the amounts due to subsidiaries of the Group (which are eliminated upon consolidation), all remaining liabilities of the VIEs and VIEs' subsidiaries are without recourse to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

#### Basis of presentation
The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP").

***Principles of consolidation***

The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries, the VIEs, and the subsidiaries of the VIEs for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation.

#### Going concern consideration
The Group's consolidated financial statements have been prepared in accordance with U.S. GAAP on a going concern basis. The going concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed in the consolidated financial statements.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Going concern consideration (Continued)
During the year ended December 31, 2025, the Group incurred net loss of RMB943,692 (US$134,946). As of December 31, 2025, the Group had an accumulated deficit of RMB15,247,868 (US$2,180,416). The Group has primarily funded the operations as well as the capital expenditures through revenue generated from contracts with customers, equity financing, and proceeds from financing facilities such as borrowings from third parties and related parties.

In view of the operating loss of the Group and the significant capital expenditures required for the expansion of operations of the Group, management has given careful consideration to the future liquidity and performance of the Group and its available sources of financing in assessing whether the Group will have sufficient financial resources to continue as a going concern. As of December 31, 2025, the Group had cash, cash equivalents and restricted cash of RMB6,117,237 (US$874,754). In addition, the Group had existing credit facilities available from banks and other financial institutions to finance the future operations and capital expenditures of the Group.

Based on above, management believes that the going concern basis of preparation is supported. Therefore, the consolidated financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Group be unable to continue as a going concern.

#### Use of estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet date and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group's consolidated financial statements include, but are not limited to, allowance for credit losses for accounts receivable and contract assets, impairment of goodwill and impairment of long-lived assets. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates.

**Comparative Information**

Certain financial information of the Group has been adjusted to conform with the current period's presentation to facilitate comparison.

#### Foreign currency
The Group's financial information is presented in Renminbi ("RMB"). The functional currency of the Company and the Company's subsidiaries located in the U.S. is U.S. dollars ("US$"). The functional currency of the Company's subsidiaries and the VIEs and VIEs' subsidiaries located in Chinese mainland is Renminbi ("RMB"). The functional currencies of the Company's subsidiaries located in Japan and Hong Kong are Japanese Yen ("Yen") and Hong Kong dollars ("HK$"), respectively.

Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive loss. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders' equity.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Convenience translation
Amounts in U.S. dollars are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.9931 per US$1.00 on December 31, 2025 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

#### Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and time deposits or other highly liquid investments placed with banks or other financial institutions which have original maturities of less than three months.

As of December 31, 2024 and 2025, a majority of the Group's cash and cash equivalents were held by financial institutions located in Chinese mainland and Hong Kong. Deposits held in Chinese mainland are subject to restrictions on foreign exchange and the ability to transfer cash outside of Chinese mainland. In May 2015, a new Deposit Insurance System ("DIS") managed by the People's Bank of China ("PBOC") was implemented. Deposits in the licensed banks in Chinese mainland are protected by DIS, up to a limit of RMB500. Hong Kong has an official Deposit Protection Scheme ("DPS"). Deposits in the licensed banks in Hong Kong are protected by DPS, up to a limit of HK$800 thousands.

As an offshore holding company, the Company is permitted under laws and regulations of Chinese mainland to provide funding from the proceeds of its offshore fundraising activities to its Chinese mainland subsidiaries only through loans or capital contributions, and to its VIEs only through loans, in each case subject to the satisfaction of the applicable government registration and approval requirements.

For the year ended December 31, 2025, there have been the following cash transfers between the Company, the Company's subsidiaries, the Company's VIEs and their subsidiaries:

- The Company and its subsidiaries made capital contribution amounted to RMB80,789 (US$11,553) to the WFOE.

- The Company and its subsidiaries provided loans amounted to RMB2,636,656 (US$377,037) and repaid loans amounted to RMB100,000 (US$14,300) to the VIEs and their subsidiaries, and the VIEs and their subsidiaries provided loans amounted to RMB50,000 (US$7,150) and paid loan interest amounted to RMB157,744 (US$22,557) to the Company and its subsidiaries.

- The VIEs and their subsidiaries transferred RMB33,129 (US$4,737) to the Company's subsidiaries, for services provided.

There were no other cash transferred, dividends or distributions between the VIEs and their subsidiaries and the Company and the Company's subsidiaries for the year ended December 31, 2025. In addition, the Group has not generated sufficient distributable profits to pay dividends or fully settle amounts due to the Company.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Restricted cash
As of December 31, 2024 and 2025, substantially all of the Group's restricted cash was held by financial institutions located in Chinese mainland and mainly represents cash secured to guarantee certain payables to suppliers.

***Short-term investments***

The Group's short-term investments comprise primarily of cash deposits at fixed rates and structured deposits with original maturities of greater than three months, but less than twelve months. The Group elects the fair value option to measure and record these structured deposits in accordance with ASC Topic 825, *Financial Instruments* ("ASC 825"). The Group believes the fair value option election creates more transparency of the current value of these structured deposits. Change in the fair value are recognized in "Other loss, net" in the consolidated statements of comprehensive loss.

#### Non-controlling interests
A non-controlling interest is recognized to reflect the portion of subsidiaries' equity which is not attributable, directly or indirectly, to the Group. Consolidated net loss on the consolidated statements of comprehensive loss includes the net loss attributable to non-controlling interests. The cumulative results of operations attributable to non-controlling interests are recorded as "non-controlling interests" in the Group's consolidated balance sheets.

#### Equity investments
&nbsp;&nbsp;&nbsp;&nbsp;*a)* *Equity investments with readily determinable fair value* 

Equity investments with readily determinable fair value, except for those accounted for under the equity method and those that result in consolidation of the investee, are measured at fair value, and any changes in fair value are recognized in the consolidated statements of comprehensive loss.

In 2022, the Group purchased equity interest of a company listed on the Hong Kong Stock Exchange and disposed in November 2024. Unrealized losses for the equity investments with readily determinable fair value were recorded in "Other loss, net" on the consolidated statements of comprehensive loss.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

***Equity investments (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;*b)* *Equity investments without readily determinable fair value* 

The Group's equity investments without readily determinable fair value are primarily long-term investments in unlisted companies based in Chinese mainland that are not in-substance common stock. For equity investments without readily determinable fair value and do not qualify for the existing practical expedient in ASC 820, *Fair Value Measurements and Disclosures* ("ASC 820") to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Group elected to use the measurement alternative to measure all its investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any.

The Group makes a qualitative assessment of whether the equity investments are impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment's fair value in accordance with the principles of ASC 820. If the fair value is less than the investment's carrying value, the Group recognizes an impairment loss in the statements of comprehensive loss equal to the difference between the carrying value and fair value.

&nbsp;&nbsp;&nbsp;&nbsp;*c)* *Equity method investments* 

The Group's investment in common stock or in-substance common stock in entity in which it can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting and classified as "equity method investments" in accordance with ASC Subtopics 323-10 ("ASC 323-10"), *Investments-Equity Method and Joint Ventures: Overall*. The Group subsequently adjusts the carrying amount of the investment to recognize the Group's proportionate share of equity investment's profit or loss. The Group evaluates the equity method investment for impairment under ASC 323-10. An impairment loss on the equity method investments is recognized when the decline in value is determined to be other-than-temporary.

In April 2023, the Group acquired 49% equity interests in an equity investment which it can exercise significant influence over the investee, and therefore, the Group accounts for such investment as an equity method investment in accordance with ASC 323.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Equity investments (Continued)
The total carrying value of equity investments held were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| **Equity investments without readily determinable fair value** |  |  |  |  |
| Initial cost basis | 124196 | 124196 | 124196 | 17760 |
| Cumulative unrealized gains | 119245 | 119245 | 119245 | 17052 |
| Cumulative unrealized losses (including impairment) | (28522) | (28522) | (28522) | (4079) |
| Foreign currency translation | 979 | 2066 | 815 | 117 |
|  | 215898 | 216985 | 215734 | 30850 |
| **Equity investment with readily determinable fair value** |  |  |  |  |
| Initial cost basis | 42437 |  |  |  |
| Cumulative unrealized losses | (12469) |  |  |  |
| Cumulative realized gain | 100 |  |  |  |
| Foreign currency translation | 205 |  |  |  |
|  | 30273 |  |  |  |
| **Equity method investment** |  |  |  |  |
| Initial cost basis | 12070 | 14840 | 14840 | 2122 |
| Share of income from equity method investment | 1689 | 2357 | 3592 | 513 |
|  | 13759 | 17197 | 18432 | 2635 |
| Total carrying value | 259930 | 234182 | 234166 | 33485 |

---

#### Fair value measurements
Financial instruments of the Group primarily include cash and cash equivalents, restricted cash, short-term investments, certain other liabilities, amounts due from and due to related parties, short-term borrowings and long-term borrowings. The carrying amounts of the borrowings approximate to their fair values due to the fact that the related interest rates approximate the interest rates currently offered by financial institutions for similar debt instruments of comparable maturities. The carrying amounts of the remaining financial instruments approximate to their fair values because of their short-term maturities.

The Group applies ASC 820 in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Include other inputs that are directly or indirectly observable in the marketplace.

Level 3—Unobservable inputs which are supported by little or no market activity.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Fair value measurements (Continued)
&nbsp;&nbsp;&nbsp;&nbsp;*a)* *Assets and liabilities measured at fair value on a recurring basis* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Total Fair**<br>**Value**<br>| **Quoted prices in**<br>**active markets**<br>**for identical**<br>**assets**<br>**(Level 1)** | **Significant**<br>**other**<br>**observable**<br>**inputs**<br>**(Level 2)** | <br>**Significant**<br>**unobservable**<br>**inputs**<br>**(Level 3)** | <br>**Total**<br>**gain**<br>**(loss)**<br>|
|  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| **As of December 31, 2024** |  |  |  |  |  |
| Structured deposits | 90422 |  | 90422 |  | 422 |

---

The fair values of the Group's structured deposits are determined based on the observable market inputs such as yield curves, credit spreads, or quoted price from the issuers (Level 2). For the year ended December 31, 2024, the Group recognized a gain of RMB422 resulting from changes in fair value in the consolidated statements of comprehensive loss.

&nbsp;&nbsp;&nbsp;&nbsp;*b)* *Assets and liabilities measured at fair value on a non-recurring basis* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Total Fair**<br>**Value**<br>| **Quoted prices in**<br>**active markets**<br>**for identical**<br>**assets**<br>**(Level 1)** | **Significant**<br>**other**<br>**observable**<br>**inputs**<br>**(Level 2)** | <br>**Significant**<br>**unobservable**<br>**inputs**<br>**(Level 3)** | <br>**Total**<br>**losses**<br>|
|  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| **As of December 31, 2024** |  |  |  |  |  |
| Long-lived assets in public cloud asset group as of September 30, 2024 (Note 7) | 4894018 |  |  | 4894018 | (919724) |

---

As of December 31, 2025, the Group did not have any assets or liabilities that were measured at fair value on a non-recurring basis.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Accounts receivable and contract assets, net
The Group maintains an allowance for credit losses in accordance with ASC 326, *Credit Losses* ("ASC 326") and records the allowance for credit losses as an offset to accounts receivable and contract assets, and the estimated credit losses charged to the allowance is classified as "General and administrative expenses" in the consolidated statements of comprehensive loss. The Group assesses collectability by reviewing accounts receivable and contract assets on a collective basis where similar characteristics exist and on an individual basis when the Group identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Group considers historical collectability based on past due status, the age of the accounts receivable and contract assets balances, credit quality of the Group's customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Group's ability to collect from customers.

#### Property and equipment, net
Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Property and equipment under finance leases are depreciated on a straight-line basis over the shorter of the estimated useful life of the leased assets or the lease term. Estimated useful lives for the property and equipment are as follows:

---

| | |
|:---|:---|
| <br>**Category** | **Estimated** <br>**Useful Life** |
| Electronic equipment | 3-5 years |
| Office equipment and fixtures | 5 years |
| Data center machinery and equipment | 10 years |
| Building | 50 years |

---

Repair and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss.

Direct costs that are related to the construction of property and equipment, and are incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences when the assets are ready for their intended use.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Intangible assets
Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination were recognized initially at fair value at the date of acquisition. Intangible assets with finite useful lives are amortized using a straight-line method of amortization that reflects the estimated pattern in which the economic benefits of the intangible assets are to be consumed. The estimated useful lives for the intangible assets are as follows:

---

| | |
|:---|:---|
| <br>**Category** | **Estimated** <br>**Useful Life** |
| Customer relationships | 6 years |
| Patents and technologies | 6-10 years |
| Trademarks and domain names | 10 years |
| Software and copyrights | 3-10 years |
| Others | 3 years |

---

If an intangible asset is determined to have an indefinite life, it should not be amortized until its useful life is determined to be no longer indefinite.

***Impairment of long-lived assets***

The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets in an asset group may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value.

#### Segment reporting
***The Group's chief operating decision maker ("CODM") has been identified as the Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group as a whole and hence, the Group has only one operating segment. The CODM uses consolidated net loss to assess financial performance and allocate resources. The CODM considers budget to actual comparisons of consolidated net loss on a regular basis when assessing the operating results and making resource decisions to improve profitability. The CODM also uses the budget to actual comparisons of consolidated net loss to make decisions aligned with the Group's strategic initiatives and capital allocation priorities. Significant expenses reviewed by the CODM include those that are presented in the consolidated statements of comprehensive loss. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets.***

A majority of the Group's revenues were generated from Chinese mainland and a majority of the long-lived assets of the Group are located in Chinese mainland, and therefore, no geographical segments are presented.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Goodwill
Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination. Goodwill is allocated to the reporting units of the Group that are expected to benefit from the synergies of the business combination based on the estimated fair value at the date of acquisition. A reporting unit is defined as an operating segment or one level below an operating segment referred to as a component. The Group determines reporting units by first identifying its operating segments, and then assesses whether any components of these segments constituted a business for which discrete financial information is available and where the segment manager regularly reviews the operating results of that component. As of December 31, 2024 and 2025, the Group had two reporting units, consisting of Cloud service and solutions and Cloud-based digital solutions and services. Because, except for those two reporting units identified, other components below the consolidated level either did not have discrete financial information or their operating results were not regularly reviewed by the segment manager.

The Group assesses goodwill for impairment in accordance with ASC 350-20, *Intangibles—Goodwill and Other: Goodwill* ("ASC 350-20"), which requires goodwill to be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events. The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative test in accordance with ASC 350-20. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. The Group also considers the last quantitative assessment completed. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The quantitative impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess.

#### Revenue recognition
The Group applies the five-step model outlined in ASC 606, *Revenue from Contracts with Customers* ("ASC 606"), and accounts for a contract when it has approval and commitment from the customer, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

Revenue is allocated to each performance obligation based on its standalone selling price. The Group generally determines standalone selling prices based on observable prices. If the standalone selling price is not observable through past transactions, the Group estimates the standalone selling price based on multiple factors, including, but not limited to, historical discounting trends for services, gross margin objectives, internal costs, and industry technology life cycles. Timing of revenue recognition may differ from the timing of invoicing to customers. For certain revenue contracts, customers are required to pay before the services are delivered to the customer. The Group recognizes a contract asset or a contract liability in the consolidated balance sheets, depending on the relationship between the entity's performance and the customer's payment. Contract liabilities represent the excess of payments received as compared to the consideration earned and are reflected in "Accrued expenses and other current liabilities" in the Group's consolidated balance sheets. Contract assets primarily relate to the Group's rights to consideration for work completed in relation to its services performed but not billed at the reporting date and are reflected in "Prepayments and other assets" in the Group's consolidated balance sheets. The contract assets are transferred to the receivables when the rights become unconditional. For the contract that contains significant financing component, the transaction price is adjusted for the effects of the time value of money which is equivalent to the amounts charged in separate financing transaction between the Group and its customer at contract inception. For a contract where the period between the payment by the customer and the transfer of the promised goods or services is one year or less, the transaction price is not adjusted for the effects of a significant financing component, using the practical expedient in ASC 606. Pursuant to ASC 606-10-32-2A, the Group also elected to exclude sales taxes and other similar taxes from the measurement of the transaction price. Therefore, revenues are recognized net of value added taxes ("VAT") and surcharges.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

***Public cloud services***

The Group provides integrated cloud-based services including cloud computing, storage and delivery. Substantially all of the Group's public cloud service revenue is recognized on a monthly basis based on utilization and duration. The nature of the Group's performance obligation is a single performance obligation under these contracts to stand ready to provide an unspecified quantity of integrated cloud-based services each day throughout the contract period. The Group uses monthly utilization records, an output measure, to recognize revenue over time as it most faithfully depicts the simultaneous consumption and delivery of services. At the end of each month, the transaction consideration is fixed based on utilization records and no variable consideration exists.

The Group also generates public cloud service revenue from prepaid subscription packages which are recognized ratably over the fixed subscription period.

***Enterprise cloud services***

The Group provides comprehensive customized cloud-based and enterprise digital solutions, which are typically completed within twelve months ("Solutions"). The components within the Solutions are not distinct within the context of the contract because they are considered highly interdependent, and the customer can only benefit from these components in conjunction with one another as a two-way dependency exists. In connections with Solutions, the Group also provides post-delivery maintenance and upgrade services that are mainly technical support services performed by the Group's technical support team. Therefore, the arrangement has three performance obligations, the Solutions, maintenance and upgrades. Revenue allocated to the Solutions is recognized over time if one of the following criteria is met: (i) the customer simultaneously receives and consumes the benefits as the Group performs; (ii) the Group's performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or (iii) the asset delivered has no alternative use and the Group has an enforceable right to payment for performance completed to date. Otherwise, revenue is recognized at a point in time when a customer obtains control of a promised asset or service and the Group satisfies its performance obligation, i.e. upon customer acceptance of the Solutions. Revenue allocated to upgrades is recognized at a point in time upon delivery of the specified upgrade. Revenue allocated to maintenance is recognized over time because the customer simultaneously receives and consumes the benefits as the Group performs throughout a fixed term. Revenue allocated to maintenance and upgrades during the periods presented was immaterial.

The Group also provides enterprise digital services. The series of enterprise digital services are substantially the same from day to day, and each day of the service is considered to be distinct and separately identifiable as it benefits the customer daily. Further, the uncertainty related to the service consideration is resolved on a daily basis as the Group satisfies its obligation to perform enterprise digital service daily with enforceable right to payment for performance completed to date. Thus, revenue is recognized as service is performed and the customer simultaneously receives and consumes the benefits from the service daily.

#### Cost of revenue
Cost of revenues primarily includes bandwidth and internet data center costs ("IDC costs"), depreciation expense of electronic equipment, data center machinery and equipment, salaries and benefits for employees directly involved in revenue generation activities, and other expenses directly attributable to the provision of services.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Research and development
Research and development expenses primarily consist of payroll and related expenses for employees and third-party service provider costs in the development of new products and services. The Group expenses research and development costs as they are incurred.

#### Advertising expenditures
Advertising costs are expensed when incurred and are included in selling and marketing expenses in the consolidated statements of comprehensive loss. For the years ended December 31, 2023, 2024 and 2025, the advertising expenses were RMB9,114, RMB4,691 and RMB6,409 (US$917), respectively.

#### Government grants
Government grants, which mainly represent amounts received from central and local governments in connection with the Company's investments in local business districts and contributions to technology development, are recognized as income in "Other income (expenses), net" or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated income statements upon receipt and when all conditions attached to the grants are probable fulfilled.

Government grants related to assets are recognized as a reduction of the carrying amount of the related asset when all conditions attached to the grants are probable fulfilled and are recognized in the consolidated income statements as a reduction of related depreciation or amortization expense over the estimated useful live of the related asset on a straight-line method.

#### Leases
The Group determines if an arrangement is a lease or contains a lease at lease inception. For certain class of underlying asset, the Group accounts for the lease and non-lease components as a single lease component. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Group will exercise that option. The Group recognizes a right-of-use asset and a lease liability on the consolidated balance sheets based on the present value of the lease payments over the lease term at commencement date. Variable lease payments that do not depend on an index or a rate are not included in the lease payments and are recognized in earnings in the period in which the event or condition that triggers the payment occurs. The Group has also elected the practical expedient for the short-term lease exemption for contracts with lease terms of 12 months or less.

Operating lease expense is recorded on a straight-line basis over the lease term. Finance lease right-of-use assets are depreciated on a straight-line basis over the lesser of the useful life of the leased assets or the lease term. Interests on finance lease liabilities are determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. Finance lease right-of-use assets are included in "Property and equipment, net" in the consolidated balance sheets. Current and non-current portions of finance lease liabilities are included in "Accrued expenses and other current liabilities" and "Other liabilities", respectively, in the consolidated balance sheets.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

***Leases (Continued)***

As most of the Group's leases do not provide an implicit rate, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

#### Comprehensive loss
Comprehensive loss is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Among other disclosures, ASC 220, *Comprehensive Income*, requires that all items that are required to be recognized under current accounting standards as components of comprehensive loss be reported in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented, the Group's comprehensive loss includes net loss and foreign currency translation adjustments and is presented in the consolidated statements of comprehensive loss.

#### Income taxes
The Group follows the liability method of accounting for income taxes in accordance with ASC 740, *Income Taxes* ("ASC 740"). Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate.

The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related tax laws of Chinese mainland. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

***Income taxes (Continued)***

In accordance with the provisions of ASC 740, the Group recognizes in its consolidated financial statements the impact of a tax position if a tax return position or future tax position is "more likely than not" to prevail based on the facts and technical merits of the position. Tax positions that meet the "more likely than not" recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Group's estimated liability for unrecognized tax benefits that, if any, will be recorded in "Other liabilities" in the accompanying consolidated financial statements is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Group's estimates. As each audit is concluded, adjustments, if any, are recorded in the Group's consolidated financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur.

The Group adopted Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): *Improvements to Income Tax Disclosures* ("ASU 2023-09") on January 1, 2025 on a prospective basis, which requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as additional information on income taxes paid.

#### Share-based compensation
The Group applies ASC 718, *Compensation—Stock Compensation* ("ASC 718"), to account for its employee share-based payments. In accordance with ASC 718, the Group determines whether an award should be classified and accounted for as a liability award or equity award. All the Group's share-based awards to employees are classified as equity awards and are recognized in the consolidated financial statements based on their grant date fair values.

The Group uses the accelerated method for all awards granted with graded vesting based on service conditions, and elects to account for forfeitures as they occur. For share options, the Group, with the assistance of an independent third-party valuation firm, determined the fair value of the share-based awards granted to employees. The binomial option pricing model was applied in determining the estimated fair value of the options granted to employees. For restricted share units, the Group recognizes the estimated compensation cost based on the fair value of its ordinary shares on the date of the grant.

#### Treasury shares
Treasury shares represent ordinary shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury shares are accounted for under the cost method. Under this method, repurchase of ordinary shares was recorded as treasury shares at historical purchase price.

#### Loss per share
In accordance with ASC 260, *Earnings Per Share* ("ASC 260"), basic loss per share is computed by dividing the net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

***Loss per share (Continued)***

For the years ended December 31, 2023, 2024 and 2025, ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options and vesting of awarded shares. Ordinary equivalent shares are excluded from the computation of diluted per share if their effects would be anti-dilutive.

#### Employee benefit expenses
All eligible employees of the Group are entitled to staff welfare benefits including medical care, welfare grants, unemployment insurance and pension benefits through a Chinese mainland government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the qualified employees' salaries. The Group is required to make contributions to the plans out of the amounts accrued. The Chinese mainland government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group's obligations are limited to the amounts contributed. The Group has no further payment obligations once the contributions have been paid.

The Group recorded employee benefit expenses of RMB389,146, RMB433,805 and RMB464,752 (US$66,459) for the years ended December 31, 2023, 2024 and 2025, respectively.

#### Recent accounting pronouncements
***In December 2024, the FASB issued ASU 2024-03, *Disaggregation of Income Statement Expenses* ("ASU 2024-03"), which requires additional disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. In January 2025, the FASB issued ASU 2025-01, which clarifies the effective date of ASU 2024-03. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. This ASU should be applied prospectively with the option to apply the standard retrospectively. The Group is currently evaluating the impact of this new standard on its consolidated financial statements.***

***In July 2025, the FASB issued ASU 2025-05, *Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets* ("ASU 2025-05"), which provide (1) all entities with a practical expedient and (2) entities other than public business entities with an accounting policy election when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. An entity can elect a practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the assets when estimating expected credit losses. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those fiscal years. Early adoption is permitted. This ASU should be applied prospectively. The Group does not expect the adoption of the accounting standard updates would have a material impact on its consolidated financial statements.***

***In September 2025, the FASB issued ASU 2025-06, *Intangibles: Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software* ("ASU 2025-06"). The guidance modernizes the accounting for software costs and enhances the transparency about an entity's software costs. The guidance is effective for the fiscal years beginning after December 15, 2027 and for interim periods within those fiscal years. This ASU can be applied prospectively, retrospectively, or under a modified transition approach. The Company is currently evaluating the impact of the new standard and does not expect to have a material impact on its consolidated financial statements resulting from adoption of the new standard.***

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** 

#### Recent accounting pronouncements (Continued)
In December 2025, the FASB issued ASU 2025-10, *Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities* ("ASU 2025-10"), to improve generally accepted accounting principles by establishing authoritative guidance on the accounting for government grants received by business entities. The amendments establish the accounting for a government grant received by a business entity, including guidance for (1) a grant related to an asset and (2) a grant related to income. The guidance is effective for fiscal years beginning after December 15, 2028, with early adoption permitted, and it can be applied using one of the following approaches: (1) a modified prospective approach; (2) a modified retrospective approach and (3) a retrospective approach to all government grants. The Group is currently evaluating the impact of this new standard on its consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **CONCENTRATION OF RISKS** 

#### Concentration of credit risk
Assets that potentially subject the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable and contract assets. The carrying amounts of these assets represent the Group's maximum exposure to credit risk. The Group expects that there is no significant credit risk associated with cash and cash equivalents, restricted cash and short-term investments, which were held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries, the VIEs and the subsidiaries of VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality.

Accounts receivable and contract assets are typically unsecured and are derived from revenues earned from reputable customers. As of December 31, 2024, the Group had one customer accounted for more than 10% of the total accounts receivable balance. As of December 31, 2025, the Group had no customers accounted for more than 10% of the total accounts receivable balances. As of December 31, 2024, the Group had one customer accounted for more than 10% of the total contract assets balance. As of December 31, 2025, the Group had two customers accounted for more than 10% of the total contract assets balances. The risks with respect to accounts receivable and contract assets are mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances.

#### Business, customer, political, social and economic risks
The Group participates in a dynamic and competitive high technology industry and believes that changes in any of the following areas could have a material adverse effect on the Group's future financial position, results of operations or cash flows: changes in the overall demand for services; competitive pressures due to existing competitors; new trends in new technologies and industry standards; control of telecommunication infrastructures by local regulators and industry standards; changes in certain strategic relationships or customer relationships; regulatory considerations; and risks associated with the Group's ability to attract and retain employees necessary to support its growth. The Group's operations could be adversely affected by significant political, economic and social uncertainties in Chinese mainland.

Revenue from two customers accounted for 15% and 12%, respectively, of total revenues during the year ended December 31, 2023. Revenue from two customers accounted for 16% and 10%, respectively, of total revenues during the year ended December 31, 2024. Revenue from two customers accounted for 23% and 12%, respectively, of total revenues during the year ended December 31, 2025.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **CONCENTRATION OF RISKS (Continued)** 

#### Currency convertibility risk
The Group transacts a majority of its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the Chinese mainland government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the PBOC. However, the unification of the exchange rates does not imply that the RMB may be readily convertible into United States dollars or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers' invoices, shipping documents and signed contracts. Additionally, the value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in Chinese mainland foreign exchange trading system market.

The Group has not made any foreign currency payments that are subject to approval by the PBOC or other institutions during the periods presented. While the Group's Chinese mainland subsidiaries, VIEs and subsidiaries of the VIEs have not converted cash and cash equivalents in RMB to a foreign currency for the periods presented, they plan to convert in the future to repay the amounts owed by the Company's subsidiary.

#### Foreign currency exchange rate risk
From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For RMB against U.S. dollar, there were depreciations of approximately 2.9% and 2.8% during the years ended December 31, 2023 and 2024, respectively. However, there was appreciation of 4.2% during the year ended December 31, 2025. It is difficult to predict how market forces or Chinese mainland or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future.

To the extent that the Group needs to convert the U.S. dollar into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against the U.S. dollar would have an adverse effect on the RMB amount the Group would receive from the conversion. Conversely, if the Group decides to convert RMB into the U.S. dollar for the purpose of making payments for dividends on ordinary shares, strategic acquisitions or investments or other business purposes, appreciation of the U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Group. In addition, a significant depreciation of the RMB against the U.S. dollar may significantly reduce the U.S. dollar equivalent of the Group's earnings or losses.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **REVENUES, OTHER LOSS, NET AND OTHER INCOME (EXPENSES), NET** 

The following table presents the Group's revenues from contracts with customers disaggregated by material revenue category:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Public cloud services recognized over time | 4381741 | 5007251 | 6633492 | 948577 |
| Enterprise cloud services: |  |  |  |  |
| &nbsp;&nbsp;Recognized at a point in time | 580741 | 537323 | 299924 | 42889 |
| &nbsp;&nbsp;Recognized over time | 2083252 | 2240454 | 2625203 | 375398 |
|  | 2663993 | 2777777 | 2925127 | 418287 |
| Other services recognized over time | 1727 | 152 |  |  |
|  | 7047461 | 7785180 | 9558619 | 1366864 |

---

The transaction prices allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as of December 31, 2025 are primarily related to enterprise cloud services and others, which are as follows:

---

| | | |
|:---|:---|:---|
|  | **RMB** | **US$** |
| Within one year | 123817 | 17706 |
| More than one year | 67963 | 9719 |
| Total | 191780 | 27425 |

---

Contract liabilities relate to contracts where the Group received payments but has not yet satisfied the related performance obligations. The advance consideration received from customers for the services is a contract liability until services are provided to the customer.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Revenue recognized from amounts included in contract liabilities at the beginning of the period | 233143 | 234643 | 82193 | 11753 |

---

The following table presents the Group's other loss, net:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Share of income from an equity method investment | 1689 | 668 | 1235 | 177 |
| Gross unrealized loss (including impairment) on equity investments held | (26051) | (10568) |  |  |
| Net realized gain (loss) on equity investments sold | 100 | (626) |  |  |
| Gain on disposal of a subsidiary | 6022 |  |  |  |
| Changes in fair value of purchase consideration in a business acquisition | (14433) |  |  |  |
| Changes in fair value of currency swap |  | (2420) | (10219) | (1462) |
|  | (32673) | (12946) | (8984) | (1285) |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **REVENUES, OTHER LOSS, NET AND OTHER INCOME (EXPENSES), NET (Continued)** 

The following table presents the Group's other income (expenses), net:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Government grants | 114282 | 22971 | 271933 | 38886 |
| Income from ADS Reimbursement  | 12696 | 3660 | 10806 | 1545 |
| Value added tax transferred out | (37237) | (30757) | (29899) | (4276) |
| Loss on extinguishment of liabilities |  |  | (54497) | (7793) |
| Others | 10622 | (2256) | (7299) | (1043) |
|  | 100363 | (6382) | 191044 | 27319 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **ACCOUNTS RECEIVABLE, NET** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Accounts receivable | 1526275 | 1839894 | 263101 |
| Allowance for credit losses | (57612) | (99422) | (14217) |
| Accounts receivable, net | 1468663 | 1740472 | 248884 |

---

The movements of the allowance for credit losses were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Balance at the beginning of the year | 47962 | 24743 | 57612 | 8238 |
| Provision for expected credit losses | 474172 | 285916 | 175179 | 25051 |
| Write-offs charged against the allowance for credit losses \* | (497391) | (253047) | (133369) | (19072) |
| Balance at the end of the year | 24743 | 57612 | 99422 | 14217 |

---

\* The decrease in write-off charged against the allowance for credit losses was mainly due to the Group's enhanced credit risk management for third-party customers and stricter customer selection.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **PREPAYMENTS AND OTHER ASSETS** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Current portion:** |  |  |  |
| Prepayments to suppliers | 149654 | 185810 | 26570 |
| Contract costs\* | 136222 | 151946 | 21728 |
| Contract assets, net\*\* | 640074 | 644024 | 92094 |
| VAT prepayments | 1119935 | 1415187 | 202369 |
| Interest receivable | 948 | 8207 | 1174 |
| Individual income tax receivable\*\*\* | 64943 | 24799 | 3546 |
| Others | 121298 | 162341 | 23214 |
|  | 2233074 | 2592314 | 370695 |
| **Non-current portion:** |  |  |  |
| Prepayments for electronic equipment\*\*\*\* | 415462 | 42359 | 6057 |
| Others | 34521 | 97477 | 13939 |
|  | 449983 | 139836 | 19996 |

---

\* The amount represents costs incurred in advance of revenue recognition arising from direct and incremental costs related to enterprise cloud services provided. Such contract costs are recognized as cost of revenue upon the recognition of the related revenues.

\*\* The amount represents the Group's rights to consideration for work completed in relation to its services performed but not billed at the end of respective periods. The allowance for credit losses on contract assets was RMB62,738 and RMB48,544 (US$6,942) as of December 31, 2024 and 2025, respectively. An expense of RMB19,183, RMB22,570 and a net reversal of RMB14,194 (US$2,030) were recognized for credit losses on contract assets for the years ended December 31, 2023, 2024 and 2025, respectively. Write-offs charged against the allowance was not material for the years presented.

\*\*\* The amount represents amounts due from certain employees related to their individual income taxes arising from exercise and vesting of share-based awards.

\*\*\*\*The amount represents prepayments made to suppliers for the purchase of electronic equipment.

Except disclosed separately, the expected credit loss allowance for the remaining financial assets included in prepayments and other assets were immaterial as of December 31, 2024 and 2025.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **PROPERTY AND EQUIPMENT, NET** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Electronic equipment | 9259789 | 16471053 | 2355329 |
| Office equipment and fixtures | 11098 | 13425 | 1920 |
| Data center machinery and equipment | 182413 | 182413 | 26085 |
| Buildings | 72107 | 75842 | 10845 |
| Construction in progress | 133158 | 181882 | 26008 |
|  | 9658565 | 16924615 | 2420187 |
| Less: accumulated depreciation | (5028513) | (6829745) | (976640) |
| Property and equipment, net | 4630052 | 10094870 | 1443547 |

---

Depreciation expense for the years ended December 31, 2023, 2024 and 2025 was RMB760,023, RMB1,089,594 and RMB2,306,599 (US$329,839), respectively.

In consideration of the continuous operating losses of the public cloud asset group, the Group performed recoverability tests and the results indicated that long-lived assets associated with the public cloud asset group were not recoverable during the years ended December 31, 2023 and 2024. As the estimated fair value of these assets was below their carrying value, the Group recognized RMB653,670 and RMB919,724 impairment losses for the years ended December 31, 2023 and 2024, respectively. The Group determined the fair value of the asset group using the discounted cash flows method with the assistance of an independent third-party valuation firm. The significant assumptions used included revenue growth rates for public cloud services revenue, IDC costs and discount rate.

The Group performed recoverability tests during the year ended December 31, 2025, as a result of the impairment assessment, no impairment losses were recognized.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **INTANGIBLE ASSETS, NET** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Customer relationships | 621159 | 621159 | 88825 |
| Patents and technologies | 60900 | 60900 | 8709 |
| Trademarks and domain names | 498001 | 497957 | 71207 |
| Software and copyrights | 115095 | 127948 | 18296 |
| Others | 4529 | 4134 | 591 |
|  | 1299684 | 1312098 | 187628 |
| Less: accumulated amortization |  |  |  |
| &nbsp;&nbsp;Customer relationships | (326665) | (424855) | (60755) |
| &nbsp;&nbsp;Patents and technologies | (38063) | (48213) | (6894) |
| &nbsp;&nbsp;Trademarks and domain names | (169975) | (219474) | (31384) |
| &nbsp;&nbsp;Software and copyrights | (66333) | (82897) | (11854) |
| &nbsp;&nbsp;Others | (3768) | (3890) | (556) |
|  | (604804) | (779329) | (111443) |
| Intangible assets, net | 694880 | 532769 | 76185 |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **INTANGIBLE ASSETS, NET (Continued)** 

Amortization expense of intangible assets for the years ended December 31, 2023, 2024 and 2025 was RMB180,459, RMB173,496 and RMB173,765 (US$24,848), respectively. As of December 31, 2025, estimated amortization expense of the existing intangible assets for each of the next five years and thereafter is as follows:

---

| | | |
|:---|:---|:---|
|  | **RMB** | **US$** |
| 2026 | 171364 | 24505 |
| 2027 | 157827 | 22569 |
| 2028 | 53313 | 7624 |
| 2029 | 52525 | 7511 |
| 2030 and thereafter | 97740 | 13976 |
| Total | 532769 | 76185 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **GOODWILL** 

The carrying amount of goodwill as of each reporting period is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Cloud service** <br>**and solutions** | **Cloud-based** <br>**digital solutions**<br>**and services** | <br>**Total** |
|  | **RMB** | **RMB** | **RMB** |
| Balance as of December 31, 2024 | 3650504 | 955220 | 4605724 |
| Balance as of December 31, 2025 | 3650504 | 955220 | 4605724 |
| Balance as of December 31, 2025, in US$ | 522015 | 136595 | 658610 |

---

Cloud service and solutions reporting unit

In 2024 and 2025, the Group performed quantitative assessment for the goodwill allocated to Cloud service and solutions reporting unit. The fair value of this reporting unit has been determined using the discounted cash flow approach with the assistance of an independent third-party valuation firm. Significant assumptions used included projected revenue growth rates for public cloud services revenue, IDC costs and discount rate. As of December 31, 2025, the fair value of the Cloud service and solutions reporting unit amounted to RMB8,619,000 (US$1,232,501) exceeded its carrying amount by RMB1,837,247 (US$262,723) or 27%. No impairment losses were recognized for the periods presented.

Cloud-based digital solutions and services reporting unit

In 2024 and 2025, the Group performed qualitative and quantitative assessment for the goodwill allocated to Cloud-based digital solutions and services reporting unit. The fair value of this reporting unit has been determined using the discounted cash flow approach with the assistance of an independent third-party valuation firm. Significant assumptions used included projected revenue growth rates, gross margin and discount rate. As of December 31, 2025, the fair value of the Cloud-based digital solutions and services reporting unit amounted to RMB2,854,000 (US$408,117) exceeded its carrying amount by RMB322,719 (US$46,148) or 13%. No impairment losses were recognized for the periods presented.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **LEASES** 

The Group's operating leases mainly related to office space and buildings, and its finance leases are related to electronic equipment, and data center machinery and equipment. Certain finance leases contain variable lease payments based on the actual usage of the machinery and equipment, and have no fixed or in-substance fixed lease payments for the first two years of the lease term. Certain operating leases include rental free periods and rental escalation clause, which are factored into the Group's determination of lease payments when appropriate.

The components of lease costs were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31**  | **For the year ended December 31**  | **For the year ended December 31**  | **For the year ended December 31**  |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Operating lease costs | 53172 | 58373 | 61388 | 8778 |
| Short-term lease costs | 46220 | 29478 | 22995 | 3228 |
| Finance lease costs: |  |  |  |  |
| Depreciation of finance lease assets | 22361 | 120848 | 823640 | 117779 |
| Interest on finance lease liabilities | 15563 | 34717 | 160943 | 23015 |
| Variable lease payments | 23054 | 15491 | 6157 | 880 |
| Total finance lease costs | 60978 | 171056 | 990740 | 141674 |

---

Other information related to leases where the Group is the lessee is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2023** | **2024** | **2025** |
| Weighted-average remaining lease term: |  |  |  |
| &nbsp;&nbsp;Operating leases | 9.5<br> years | 9.4<br> years | 9.4<br> years |
| &nbsp;&nbsp;Finance leases | 7.8<br> years | 3.8<br> years | 3.5<br> years |
| Weighted-average discount rate: |  |  |  |
| &nbsp;&nbsp;Operating leases | 5.88% | 5.66% | 5.96% |
| &nbsp;&nbsp;Finance leases | 5.84% | 5.02% | 5.16% |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **LEASES (Continued)** 

Cash paid for amounts included in the measurement of lease liabilities:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Operating cash flows from operating leases | 53086 | 61794 | 34590 | 4946 |
| Operating cash flows from finance leases | 23054 | 36655 | 198292 | 28355 |
| Financing cash flows from finance leases | 13308 | 137656 | 819981 | 117256 |

---

Lease right-of-use assets obtained in exchange for lease liabilities from new leases during the year:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Operating leases | 11016 | 25829 | 24266 | 3470 |
| Finance leases | 169350 | 911216 | 3500567 | 500574 |

---

The undiscounted future minimum payments under the Group's operating and finance lease liabilities and reconciliation to the operating and finance lease liabilities recognized on the consolidated balance sheet as of December 31, 2025 were as below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Operating lease** | **Operating lease** | **Finance lease** | **Finance lease** |
|  | **RMB** | **US$** | **RMB** | **US$** |
| 2026 | 42353 | 6056 | 1374449 | 196544 |
| 2027 | 15477 | 2213 | 1075762 | 153832 |
| 2028 | 11182 | 1599 | 1011977 | 144711 |
| 2029 | 10436 | 1492 | 560620 | 80168 |
| 2030 and thereafter | 32177 | 4601 | 245933 | 35168 |
| Total future lease payments | 111625 | 15961 | 4268741 | 610423 |
| Less: imputed interest | (19545) | (2794) | (447964) | (64059) |
| Total lease liability balance | 92080 | 13167 | 3820777 | 546364 |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Current portion:** |  |  |  |
| Customer advances\* | 248937 | 270377 | 38663 |
| Salary and welfare payable | 798269 | 920393 | 131614 |
| Purchase of property and equipment | 348284 | 270867 | 38733 |
| Accrued expenses | 116015 | 97407 | 13929 |
| Other tax and surcharges payable | 181444 | 170595 | 24395 |
| Deferred government grants\*\* | 243247 | 3867 | 553 |
| Purchase consideration payable\*\*\* | 569050 | 118415 | 16933 |
| Payables for acquisition of non-controlling interests \*\*\*\* | 251000 |  |  |
| Finance lease liabilities\*\*\*\*\* | 484860 | 1267896 | 181307 |
| Individual income tax payable | 64508 | 22097 | 3160 |
| Others | 36376 | 80515 | 11514 |
|  | 3341990 | 3222429 | 460801 |
| **Non-current portion:** |  |  |  |
| Deferred government grants\*\* | 3051 | 2737 | 391 |
| Finance lease liabilities\*\*\*\*\* | 697101 | 2552881 | 365057 |
| Unrecognized tax benefit | 52696 | 57937 | 8285 |
| Others | 37423 | 32340 | 4626 |
|  | 790271 | 2645895 | 378359 |

---

\* The amount represents contract liabilities for the rendering of services. The increase in customer advances as of December 31, 2025 is a result of the increase in consideration received from the Group's customers.

\*\* The amount primarily represents government subsidies for the public cloud business in Chinese mainland. The decrease in the current portion of deferred government grants was mainly because several government subsidies fulfilled the conditions in 2025.

\*\*\* On August 25, 2023, the Company entered into supplementary agreements (the "Supplementary Agreements") with the founder shareholders and certain non-founder selling shareholders of Camelot Technology, to adjust the settlement timing and method of the remaining outstanding purchase consideration. The outstanding balance as of December 31, 2025 in accordance with these Supplementary Agreements will be settled within one year.

---

| | |
|:---|:---|
| \*\*\*\* | In October 2022 and in November 2025, the Company acquired 9.50% and the remaining 7.77% of equity interests in Camelot Technology with the non-controlling shareholders, respectively. As of December 31, 2025, the purchase consideration related to the acquisition of non-controlling interests has been fully settled. |

---

---

| | |
|:---|:---|
| \*\*\*\*\* | The increase in finance lease liabilities was primarily due to the acquirement of electronic equipment, and data center machinery and equipment through finance lease arrangements during the period. The right-of-use assets under finance leases amounted to RMB3,582,878 (US$512,345) as of December 31, 2025, which were recorded in "Property and equipment, net". |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **BORROWINGS** 

**Third party borrowings**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Current:** |  |  |  |
| Unsecured borrowings\* | 1784906 | 2498052 | 357217 |
| Secured borrowings\*\* | 440859 | 850227 | 121581 |
|  | **2225765** | **3348279** | **478798** |
| **Non-current:** |  |  |  |
| Unsecured borrowings\* | 1037400 | 1596700 | 228325 |
| Secured borrowings\*\* | 623184 | 1426838 | 204035 |
|  | **1660584** | **3023538** | **432360** |
|  | **3886349** | **6371817** | **911158** |

---

\* All of the Group's unsecured borrowings were from well-known banks and financial institutions. As of December 31, 2024 and 2025, the Group had unsecured current borrowings with the weighted average interest rates of 3.19% and 2.78%, respectively, which will be repayable within one year. As of December 31, 2024 and 2025, the Group had non-current borrowings with the weighted average interest rates of 3.16% and 2.93%, respectively, and maturity dates of these non-current borrowings ranged from March 2027 to December 2029.

\*\* During 2025, the Group entered into several loan agreements with fixed annual interest rates ranging from 2.50% to 6.12% with well-known banks and financial institutions. The loans have maturity dates ranged from April 2026 to March 2029 and are secured by the Group's electronic equipment and certain receivables arising from specific revenue contracts.

There are no commitment fees and conditions under which lines may be withdrawn associated with the Group's unused facilities. As of December 31, 2025, the unused financing facilities were RMB1,088,694 (US$155,681) from various banks and financial institutions.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **BORROWINGS (Continued)** 

**Related party borrowings**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Current:** |  |  |  |
| Kingsoft Group - secured borrowings \* | 1000000 |  |  |
| Xiaomi Group - secured borrowings\*\* | 363080 | 265666 | 37990 |
| Xiaomi Group - unsecured borrowings\*\*\* | 146442 |  |  |
|  | **1509522** | **265666** | **37990** |
| **Non-current:** |  |  |  |
| Xiaomi Group - secured borrowings\*\* | 309612 | 294127 | 42060 |
|  | **309612** | **294127** | **42060** |
|  | **1819134** | **559793** | **80050** |

---

\* As of December 31, 2025, the Group repaid loans drawn down in 2024 for a total of RMB1,000,000.

\*\* During 2024 and 2025, the Group entered into several loan agreements with fixed annual interest rate of 6.70% with Xiaomi Group which are secured by the Group's electronic equipment.

\*\*\* As of December 31, 2025, the Group repaid all the borrowings under supplier finance arrangement with Xiaomi Group.

The Group's secured borrowings were secured by the Group's electronic equipment and certain receivables arising from multiple specific revenue contracts. As of December 31, 2024 and 2025, the carrying amount of the electronic equipment pledged was RMB2,177,992 and RMB2,146,782 (US$306,986), respectively. The amount of receivables pledged may be up to RMB2,482,301 (US$354,964), and the carrying amount of receivables pledged was RMB624,224 (US$89,263) as of December 31, 2025.

As of December 31, 2025, the borrowings based on the contractual undiscounted principal payments will be repaid according to the following schedule:

---

| | | |
|:---|:---|:---|
|  | **As of December 31** | **As of December 31** |
|  | **2025** | **2025** |
|  | **RMB** | **US$** |
| 2026 | 3610982 | 516364 |
| 2027 | 1565283 | 223832 |
| 2028 | 1707420 | 244158 |
| 2029 | 41639 | 5954 |
|  | **6925324** | **990308** |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **TAXATION** 

#### Enterprise income tax
*Cayman Islands*

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains.

*Hong Kong*

The subsidiaries incorporated in Hong Kong are subject to income tax at the rate of 16.5% on the estimated assessable profits arising in Hong Kong. For the periods presented, the Group did not make any provisions for Hong Kong profit tax as the Group did not generate any assessable profits arising in Hong Kong. Under the Hong Kong tax law, the subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

*Chinese mainland*

The Group's Chinese mainland entities are subject to the statutory income tax rate of 25%, in accordance with the Enterprise Income Tax ("EIT") law, which was effective since January 1, 2008. Certain subsidiaries of the Group being qualified as a High New Technology Enterprise ("HNTE") are entitled to the preferential income tax rate of 15%. Dividends, interests, rent or royalties payable by the Group's Chinese mainland entities to non-resident enterprises, and proceeds from any such non-resident enterprise investor's disposition of assets (after deducting the net value of such assets) shall be subject to 10% EIT, namely withholding tax, unless the respective non-resident enterprise's jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) income before income taxes consists of:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Chinese mainland | (2139795) | (2049215) | (966311) | (138180) |
| Non-Chinese mainland | (25893) | 68649 | 18416 | 2633 |
|  | (2165688) | (1980566) | (947895) | (135547) |

---

The current and deferred components of income tax expense (benefit) appearing in the consolidated statements of comprehensive loss are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Current income tax expense | 42446 | 39365 | 35556 | 5084 |
| Deferred income tax benefit | (24487) | (40889) | (39759) | (5685) |
|  | 17959 | (1524) | (4203) | (601) |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **TAXATION (Continued)** 

***Enterprise income tax (Continued)***

The reconciliation of income tax expense (benefit) computed using the Chinese mainland statutory tax rate to the actual income tax expense is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** |
|  | **RMB** | **RMB** |
| Loss before income tax | (2165688) | (1980566) |
| Income tax computed at the Chinese mainland statutory tax rate of 25% | (541422) | (495141) |
| Effect of tax holiday and preferential tax rates | 110393 | 143182 |
| Effect of different tax rates in different jurisdictions | 21918 | 21325 |
| Other non-taxable income | (26008) | (32690) |
| Non-deductible expenses | 6379 | 15806 |
| Share-based compensation costs | 45411 | 53610 |
| Research and development super deduction | (132163) | (104438) |
| Withholding tax and others | 9771 | 8060 |
| Change in valuation allowance | 397137 | 451724 |
| True-up adjustments in respect of prior year's annual tax filing | 49940 | 55422 |
| Expiration of tax losses | 83300 | 98864 |
| Effect of tax rate change on deferred tax | (6697) | (217248) |
| Income tax expense (benefit) | 17959 | (1524) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2025** | **2025** | **2025** |
|  | **RMB** | **US$** | **Percent** |
| **Loss before income tax** | (947895) | (135547) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax computed at the Chinese mainland statutory tax rate of 25% | (236974) | (33887) | 25% |
| **Foreign tax effects** |  |  |  |
| &nbsp;&nbsp;**Cayman** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of different tax rate between Chinese mainland and Cayman  | 13949 | 1995 | (1.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | (380) | (55) | 0.0% |
| &nbsp;&nbsp;**Other foreign jurisdictions** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-taxable income | (23095) | (3302) | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 7690 | 1099 | (0.8)% |
| **Effect of changes in tax laws or rates enacted in the current period** | (78307) | (11198) | 8.3% |
| **Effect of cross-border tax laws** |  |  | 0.0% |
| **Tax credits** |  |  | 0.0% |
| **Change in valuation allowance** | 177479 | 25379 | (18.7)% |
| **Change in unrecognized tax benefits** | (2044) | (292) | 0.2% |
| **Nontaxable or nondeductible items** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation costs | 110786 | 15842 | (11.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 1441 | 206 | (0.2)% |
| **Others** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development super deduction | (113494) | (16229) | 12.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of tax holiday and preferential tax rates | 94972 | 13581 | (10.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;True-up adjustments in respect of prior year's annual tax filing and others | 24989 | 3573 | (2.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Expiration of tax losses | 18785 | 2687 | (2.0)% |
| **Income tax benefit** | (4203) | (601) | 0.4% |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **TAXATION (Continued)** 

#### Deferred tax
The significant components of the Group's deferred tax assets and liabilities are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Deferred tax assets:** |  |  |  |
| Tax loss carried forward | 3132028 | 3139447 | 448935 |
| Accrued expenses | 269237 | 377986 | 54051 |
| Depreciation | 24487 | 32184 | 4602 |
| Allowance for doubtful accounts | 312232 | 218216 | 31204 |
| Government grant | 1545 | 1235 | 177 |
| Operating lease liabilities | 30568 | 20909 | 2990 |
| Accrued interest | 283717 | 319042 | 45622 |
| Finance lease liabilities | 299692 | 944497 | 135061 |
| Impairment of long-lived assets | 295182 | 224496 | 32103 |
| Others | 16316 | 29256 | 4184 |
| Less: valuation allowance | (3263302) | (3446462) | (492838) |
|  | 1401702 | 1860806 | 266091 |
| **Deferred tax liabilities:** |  |  |  |
| Operating lease right-of-use assets | 28524 | 20177 | 2885 |
| Finance lease right-of-use assets | 252257 | 926543 | 132494 |
| One-time deduction for fixed asset purchases | 1033789 | 826197 | 118145 |
| Long-lived assets arising from acquisition | 166592 | 129152 | 18468 |
| Others | 22217 | 20651 | 2953 |
|  | 1503379 | 1922720 | 274945 |
| **Net deferred tax liabilities:** | 101677 | 61914 | 8854 |

---

The Group operates through several subsidiaries, VIEs and subsidiaries of VIEs and the valuation allowance is considered for each subsidiary, VIE and subsidiary of VIE on an individual basis. As of December 31, 2024 and 2025, the Group's total deferred tax assets before valuation allowances were RMB4,665,004 and RMB5,307,268 (US$758,929), respectively. As of December 31, 2024 and 2025, the Group recorded valuation allowances of RMB3,263,302 and RMB3,446,462 (US$492,838), respectively, on its deferred tax assets that are not more-likely-than-not to be realized.

As of December 31, 2025, the Group had net losses of approximately RMB12,809,797 (US$1,831,777) mainly deriving from entities in the Chinese mainland and Hong Kong. The tax losses in the Chinese mainland can be carried forward for five years to offset future taxable profits and the period was extended to ten years for entities that qualify as HNTE. The tax losses of entities in the Chinese mainland will expire between 2026 and 2030 and the tax losses of entities in the Chinese mainland that qualify as HNTE will expire between 2026 and 2035, if not utilized. The tax losses in Hong Kong can be carried forward without an expiration date.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **TAXATION (Continued)** 

#### Unrecognized tax benefits
As of December 31, 2024 and 2025, the Group had unrecognized tax benefits of RMB72,786 and RMB78,027 (US$11,158), of which RMB20,090 and RMB20,090 (US$2,873), respectively, were presented as a reduction to the deferred tax assets related to tax losses carryforward, and the remaining amounts of RMB52,696 and RMB57,937 (US$8,285), respectively, were presented in "Other liabilities" in the consolidated balance sheets. The Group does not expect the amount of unrecognized tax benefits to increase significantly in the next 12 months. As of December 31, 2024 and 2025, there were RMB52,696 and RMB57,937 (US$8,285) of unrecognized tax benefits that, recognized and affected the annual effective tax rate, respectively. A reconciliation of the beginning and ending balances of unrecognized tax benefit is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Balance at the beginning of the year | 61030 | 72786 | 10408 |
| Additions based on tax position related to current year | 8234 | 7285 | 1042 |
| Additions based on tax positions related to prior year | 10319 | 1584 | 227 |
| Reductions for tax positions related to prior years | (6797) | (3628) | (519) |
| Balance at the end of the year | 72786 | 78027 | 11158 |

---

The Group recorded interest related to unrecognized tax benefits of RMB1,952, RMB2,981 and RMB2,244 (US$321) for the years ended December 31, 2023, 2024 and 2025, respectively. The Group did not record any penalties related to unrecognized tax benefits for the years ended December 31, 2023, 2024 and 2025.

In general, the tax authorities have three to five years to conduct examinations of the tax filings of the Group's subsidiaries located in Chinese mainland. Accordingly, the subsidiaries' tax years of 2020 through 2025 remain open to examination by the respective tax authorities. There are no ongoing examinations by tax authorities for any of the Group's subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **SHARE-BASED PAYMENTS** 

The Company has three share-based compensation plans under which awards may be granted to employees, namely, the 2013 Share Option Scheme, the 2013 Share Award Scheme and 2021 Share Award Scheme. The maximum aggregate numbers of ordinary shares that are authorized to be issued under the 2013 Share Option Scheme, 2013 Share Award Scheme and 2021 Share Award Scheme are 209,750,000, 215,376,304 and 380,528,480, respectively. These plans have a contractual term of ten years. The share-based awards are accounted for as equity awards and generally vest over a period from one to five years.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **SHARE-BASED PAYMENTS (Continued)** 

#### 2013 Share Option Scheme
A summary of the activity for the options granted under the 2013 Share Option Scheme is stated below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Number of**<br>**options** | <br>**Weighted-**<br>**average exercise**<br>**price** | **Weighted-**<br>**average**<br>**grant-date**<br>**fair value** | **Weighted-**<br>**average**<br>**remaining**<br>**contractual term** | <br>**Aggregate**<br>**intrinsic**<br>**value** |
|  |  | **US$** | **US$** | **Years** | **US$** |
| Outstanding, December 31, 2024 | 20418438 | 0.07 | 0.89 | 4.31 | 12763 |
| Forfeited | (106830) | 0.07 | 2.55 |  |  |
| Exercised | (5840430) | 0.07 | 0.68 |  |  |
| Outstanding, December 31, 2025 | 14471178 | 0.07 | 0.97 | 3.71 | 8901 |
| Vested and expected to vest at December 31, 2025 | 14471178 | 0.07 | 0.97 | 3.71 | 8901 |
| Exercisable at December 31, 2025 | 13944203 | 0.07 | 0.93 | 3.64 | 8577 |

---

The aggregate intrinsic value in the table above represents the difference between the fair value of the Company's ordinary share as of December 31, 2024 and 2025 and the option's respective exercise price. Total intrinsic value of options exercised for the years ended December 31, 2023, 2024 and 2025 were RMB5,510, RMB54,102 and RMB25,119 (US$3,592), respectively.

There were no options granted during the years ended December 31, 2023, 2024 and 2025. The aggregate fair value of the share-based awards vested during the years ended December 31, 2023, 2024 and 2025 were RMB46,725, RMB27,467 and RMB14,987 (US$2,143), respectively.

As of December 31, 2025, there were RMB345 (US$49) of total unrecognized employee share-based compensation expenses, related to unvested share-based awards, which are expected to be recognized over a weighted-average period of 0.36 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future.

#### 2013 Share Award Scheme
A summary of the activity for the restricted shares issued under the 2013 Share Award Scheme is stated below:

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Number of**<br>**shares** | <br>**Weighted-average**<br>**grant-date fair value** | **Aggregate**<br>**intrinsic**<br>**value**  |
|  |  | **US$** | **US$** |
| Outstanding, December 31, 2024 | 4079582 | 1.82 | 2853 |
| Vested | (2333820) | 1.66 |  |
| Forfeited | (321195) | 2.07 |  |
| Outstanding, December 31, 2025 | 1424567 | 2.03 | 982 |
| Expected to vest at December 31, 2025 | 1424567 | 2.03 | 982 |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **SHARE-BASED PAYMENTS (Continued)** 

#### 2013 Share Award Scheme (Continued)
There were no share-based awards granted during the years ended December 31, 2023, 2024 and 2025. The aggregate fair value of the share-based awards vested during the years ended December 31, 2023, 2024 and 2025 were RMB71,379, RMB49,172 and RMB27,015 (US$3,863), respectively.

As of December 31, 2025, there were RMB1,955 (US$280) of total unrecognized share-based compensation expenses related to unvested share-based awards which are expected to be recognized over a weighted-average period of 0.48 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future.

A summary of the activity for the options granted under the 2013 Share Award Scheme is stated below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Number of**<br>**options** | <br>**Weighted-**<br>**average exercise**<br>**price** | **Weighted-**<br>**average**<br>**grant-date**<br>**fair value** | **Weighted-**<br>**average**<br>**remaining**<br>**contractual term** | <br>**Aggregate**<br>**intrinsic**<br>**value** |
|  |  | **US$** | **US$** | **Years** | **US$** |
| Outstanding, December 31, 2024 | 13272900 | 0.87 | 0.32 | 4.97 |  |
| Exercised | (3367365) | 0.87 | 0.29 |  |  |
| Outstanding, December 31, 2025 | 9905535 | 0.87 | 0.33 | 3.97 |  |
| Vested and expected to vest at December 31, 2025 | 9905535 | 0.87 | 0.33 | 3.97 |  |
| Exercisable at December 31, 2025 | 9905535 | 0.87 | 0.33 | 3.97 |  |

---

The aggregate intrinsic value in the table above represents the difference between the fair value of the Company's ordinary share as of December 31, 2024 and 2025 and the option's respective exercise price. No options were exercised during the years ended December 31, 2023 and 2024.

There were no options granted under 2013 Share Aware Scheme during the years ended December 31, 2023, 2024 and 2025. The aggregate fair value of the share-based awards vested during the years ended December 31, 2023, 2024 and 2025 were RMB9,045, RMB5,401 and RMB1,483 (US$212), respectively.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **SHARE-BASED PAYMENTS (Continued)** 

#### 2021 Share Award Scheme
A summary of the activity for the restricted shares with option features (the "RSUs") issued under the 2021 Share Award Scheme is stated below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Number of** <br>**the RSUs** | <br>**Weighted-** <br>**average exercise** <br>**price** | **Weighted-** <br>**average** <br>**grant-** <br>**date** <br>**fair value** | <br>**Weighted-** <br>**average** <br>**remaining** <br>**contractual term** | <br>**Aggregate** <br>**intrinsic** <br>**value** |
|  |  | **US$** | **US$** | **Years** | **US$** |
| Outstanding, December 31, 2024 | 126506726 | 0.01 | 0.29 | 8.46 | 87214 |
| Granted | 127899901 | 0.01 | 0.75 |  |  |
| Exercised | (54125280) | 0.01 | 0.30 |  |  |
| Forfeited | (4802299) | 0.01 | 0.39 |  |  |
| Outstanding, December 31, 2025 | 195479048 | 0.01 | 0.55 | 8.44 | 132796 |
| Vested and expected to vest at December 31, 2025 | 195479048 | 0.01 | 0.55 | 8.44 | 132796 |
| Exercisable at December 31, 2025 | 96416390 | 0.01 | 0.39 | 7.81 | 65768 |

---

The aggregate intrinsic value in the table above represents the difference between the fair value of the Company's ordinary share as of December 31, 2024 and 2025 and the exercise price of respective share-based awards. Total intrinsic value of the share-based awards exercised for the years ended December 31, 2023, 2024 and 2025 were RMB68,812, RMB535,068 and RMB257,115 (US$36,767), respectively.

The weighted-average grant date fair value of the share-based awards granted during the years ended December 31, 2023, 2024 and 2025 were US$0.27, US$0.21 and US$0.75 per share, respectively. The aggregate fair value of the share-based awards vested during the years ended December 31, 2023, 2024 and 2025 were RMB108,925, RMB175,724 and RMB312,203 (US$44,644), respectively.

As of December 31, 2025, there were RMB244,346 (US$34,941) of total unrecognized employee share-based compensation expenses related to unvested share-based awards, which are expected to be recognized over a weighted-average period of 1.20 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **SHARE-BASED PAYMENTS (Continued)** 

#### 2021 Share Award Scheme (Continued)
The following table sets forth the amount of share-based compensation expense included in each of the relevant financial statement line items:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Cost of revenues | 9756 | 16868 | 38275 | 5472 |
| Selling and marketing expenses | 6977 | 45572 | 95997 | 13728 |
| General and administrative expenses | 114766 | 101106 | 255261 | 36502 |
| Research and development expenses | 50146 | 50895 | 57376 | 8205 |
|  | 181645 | 214441 | 446909 | 63907 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**15.** **RESTRICTED NET ASSETS** 

The Company's ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant statutory laws and regulations of Chinese mainland permit payments of dividends by the Group's Chinese mainland subsidiaries only out of its retained earnings, if any, as determined in accordance with accounting standards and regulations of Chinese mainland. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company's Chinese mainland subsidiaries. The Company has not previously declared or paid any cash dividend or dividend in kind and has no plan to declare or pay any dividends in the near future.

Each of the Company's entities in Chinese mainland is required to set aside at least 10% of its after-tax profits each year to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, each entity may allocate a portion of its after-tax profits to a discretionary surplus fund at its discretion. These reserves are not transferable to the Company in the form of cash dividends, loans or advances. These reserves are therefore not available for distribution except in liquidation.

Under laws and regulations of Chinese mainland, there are restrictions on the Company's Chinese mainland subsidiaries and the VIEs with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. Amounts of net assets restricted include paid-in capital and statutory reserve funds of the Company's Chinese mainland subsidiaries and the net assets of the VIEs and VIEs' subsidiaries in which the Company has no legal ownership, totaling RMB6,561,664 (US$938,305) as of December 31, 2025; therefore, in accordance with Rules 504 and 4.08(e)(3) of Regulation S-X, the condensed parent company only financial statements as of December 31, 2024 and 2025 and for each of the three years in the period ended December 31, 2025 are disclosed in Note 22.

Furthermore, cash transfers from the Company's Chinese mainland subsidiaries to its subsidiaries outside of China are subject to Chinese mainland government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the Chinese mainland subsidiaries and VIEs to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**16.** **LOSS PER SHARE** 

Basic and diluted loss per share for each of the years presented are calculated as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| **Numerator:** |  |  |  |  |
| Net loss attributable to Kingsoft Cloud Holdings Limited shareholders - basic and diluted | (2176340) | (1966680) | (936251) | (133882) |
| **Denominator:** |  |  |  |  |
| Weighted average number of ordinary shares outstanding - basic and diluted | 3558354940 | 3658088876 | 4107065011 | 4107065011 |
| Basic and diluted loss per share | (0.61) | (0.54) | (0.23) | (0.03) |

---

For the years ended December 31, 2023, 2024 and 2025, the effects of unexercised options and unvested awarded shares were excluded from the computation of diluted loss per share for the periods presented as their effects would be anti-dilutive.

&nbsp;&nbsp;&nbsp;&nbsp;**17.** **SHAREHOLDERS' EQUITY** 

In April, June and September 2025, the Company issued a total of 726,500,000 ordinary shares with net proceeds amounted to RMB4,533,333 (US$648,258).

&nbsp;&nbsp;&nbsp;&nbsp;**18.** **RELATED PARTY TRANSACTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;***a)***  ***Related Parties*** 

---

| | |
|:---|:---|
| **Name of principal related parties** | **Relationship with the Group** |
| Kingsoft Corporation Limited ("Kingsoft Corporation") and its subsidiaries ("Kingsoft Group") | Principal shareholder of the Company |
| Xiaomi Corporation and its subsidiaries ("Xiaomi Group") | Principal shareholder of the Company |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**18.** **RELATED PARTY TRANSACTIONS (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;***b)***  ***The Group had the following material related party transactions:*** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;Public cloud services provided to Xiaomi Group | 763338 | 1091451 | 1853124 | 264993 |
| &nbsp;&nbsp;Public cloud services provided to Kingsoft Group | 217333 | 281286 | 363300 | 51951 |
| &nbsp;&nbsp;Public cloud services provided to other related parties | 378 | 516 | 737 | 105 |
| &nbsp;&nbsp;Enterprise cloud services provided to Xiaomi Group | 104967 | 182364 | 382438 | 54688 |
| &nbsp;&nbsp;Enterprise cloud services provided to Kingsoft Group | 18690 | 15479 | 21320 | 3049 |
| &nbsp;&nbsp;Enterprise cloud services provided to other related parties | 2200 | 16 |  |  |
| &nbsp;&nbsp;Other services provided to other related parties | 436 |  |  |  |
|  | 1107342 | 1571112 | 2620919 | 374786 |
| Purchase of network hardware devices from Xiaomi Group |  |  | 29637 | 4238 |
| Interest expense on loans due to Xiaomi Group | 39703 | 30963 | 45156 | 6457 |
| Interest expense on a loan due to Kingsoft Group | 958 | 45709 | 30870 | 4414 |
| Rental of building and office space from Xiaomi Group\* | 39804 | 37878 | 42271 | 6046 |
| Rental of office space, and administrative services from Kingsoft Group | 9167 | 9812 | 13599 | 1945 |
|  | 89632 | 124362 | 161533 | 23100 |

---

\* The Group entered into agreements to lease building and office space from Xiaomi Group. As of December 31, 2024 and 2025, the Group recognized the related operating lease right-of-use assets amounted to RMB83,457 and RMB55,420 (US$7,925) and operating lease liabilities amounted to RMB91,841 and RMB62,846 (US$8,987), respectively.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**18.** **RELATED PARTY TRANSACTIONS (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;***c)***  ***The Group had the following related party balances at the end of the year:*** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Amounts due from related parties:** |  |  |  |
| Trade related: |  |  |  |
| Xiaomi Group | 285656 | 455834 | 65183 |
| Kingsoft Group | 18117 | 104495 | 14944 |
| Other related parties | 14753 | 13067 | 1868 |
|  | 318526 | 573396 | 81995 |
| **Amounts due to related parties:** |  |  |  |
| Trade related: |  |  |  |
| Kingsoft Group | 1258 | 27027 | 3865 |
| Xiaomi Group\* | 26676 | 2309833 | 330302 |
| Other related parties | 14284 | 5380 | 769 |
| Non-trade related\*\*: |  |  |  |
| Kingsoft Group | 1032459 | 32224 | 4607 |
| Xiaomi Group | 819134 | 559793 | 80050 |
|  | 1893811 | 2934257 | 419593 |

---

\*The balance as of December 31, 2025 included RMB2,261,090 (US$323,332) advance received for public cloud services.

\*\*Amounts included borrowings from related parties as disclosed in Note 12.

All the balances with related parties except for the certain borrowings from Xiaomi Group and Kingsoft Group were unsecured. All outstanding balances except for borrowings from Xiaomi Group and Kingsoft Group as disclosed in Note 12 are repayable on demand unless otherwise disclosed. The credit losses for the amount due from related parties were immaterial for the periods presented.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**19.** **COMMITMENTS AND CONTINGENCIES** 

#### Purchase commitments
In 2025, the Group entered into two non-cancelable internet data center service agreements pursuant to which the Group has total contractual minimum purchase commitments amounting to RMB1,280,000 (US$183,038). As of December 31, 2025, the remaining purchase commitment is RMB587,169 (US$83,964).

#### Contingencies
The Group is currently not involved in legal or administrative proceedings that may have a material adverse impact on the Group's business, financial position or results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;**20.** **ACCUMULATED OTHER COMPREHENSIVE INCOME** 

---

| | |
|:---|:---|
|  | **RMB** |
| Balance as of December 31, 2023 | 555342 |
| Foreign currency translation adjustments, net of tax of nil | 11558 |
| Balance as of December 31, 2024 | 566900 |
| Foreign currency translation adjustments, net of tax of nil | (126493) |
| Balance as of December 31, 2025 | 440407 |
| Balance as of December 31, 2025, in US$ | 62977 |

---

There have been no reclassifications out of accumulated other comprehensive income to net loss for the periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;**21.** **SUBSEQUENT EVENT** 

On March 3, 2026, Wuhan Kingsoft Cloud Information Technology Co., Ltd. ("Wuhan Kingsoft Cloud", a subsidiary of the Company) entered into an equity transfer agreement with Shenzhen Xunlei Network Technology Co., Ltd. ("Xunlei"), pursuant to which, Xunlei will transfer 20% of the equity interest it held in Shenzhen One Thing Technologies Co., Ltd. to Wuhan Kingsoft Cloud at a consideration of RMB50,000.

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**22.** **CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY** 

#### Condensed Balance Sheets

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **ASSETS** |  |  |  |
| **Current assets:** |  |  |  |
| Cash and cash equivalents | 4843 | 2161778 | 309130 |
| Prepayments and other assets | 31216 | 4633 | 663 |
| Amounts due from subsidiaries (other than WFOE) |  | 1478929 | 211484 |
| **Total current assets** | **36059** | **3645340** | **521277** |
| **Non-current assets:** |  |  |  |
| Investments in subsidiaries | 6064318 | 5881741 | 841078 |
| **Total non-current assets** | **6064318** | **5881741** | **841078** |
| **Total assets** | **6100377** | **9527081** | **1362355** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |
| **Current liabilities:** |  |  |  |
| Accrued expenses and other current liabilities | 837703 | 127030 | 18167 |
| Income tax payable | 2902 |  |  |
| Amounts due to WFOE | 5457 | 36038 | 5153 |
| Amounts due to VIEs and VIEs' subsidiaries | 86275 | 46987 | 6719 |
| **Total current liabilities** | **932337** | **210055** | **30039** |
| **Total liabilities** | **932337** | **210055** | **30039** |
| **Commitments and contingencies** |  |  |  |
| **Shareholders' equity:** |  |  |  |
| Ordinary shares (par value of US$0.001 per share; 40,000,000,000 shares authorized, 3,805,284,801 and 4,531,784,801 shares issued, 3,687,690,772 and 4,479,857,667 shares outstanding as of December 31, 2024 and 2025, respectively) | 25689 | 30888 | 4417 |
| Treasury shares | (105478) | (31068) | (4443) |
| Additional paid-in capital | 18940885 | 24073006 | 3442394 |
| Accumulated deficit | (14259956) | (15196207) | (2173029) |
| Accumulated other comprehensive income | 566900 | 440407 | 62977 |
| **Total Kingsoft Cloud Holdings Limited shareholders' equity** | **5168040** | **9317026** | **1332316** |
| **Total liabilities and shareholders' equity** | **6100377** | **9527081** | **1362355** |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**22.** **CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Continued)** 

#### Condensed Statements of Comprehensive Loss

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| **Operating expenses:** |  |  |  |  |
| General and administrative expenses | (36736) | (25975) | (51962) | (7430) |
| **Total operating expenses** | **(36736)** | **(25975)** | **(51962)** | **(7430)** |
| **Operating loss** |  |  |  |  |
| Interest income | 3830 | 861 | 45013 | 6437 |
| Interest expense | (28339) | (31048) | (21630) | (3093) |
| Foreign exchange gain (loss) | 8078 | (2592) | 17436 | 2493 |
| Other income (expenses), net | 12683 | 4070 | (44883) | (6418) |
| Other loss, net | (14433) |  |  |  |
| Share of income (loss) of subsidiaries | 62514 | 1072 | (112568) | (16098) |
| Contractual interests in VIEs and VIEs' subsidiaries\* | (2183913) | (1913044) | (768095) | (109836) |
| **Loss before income taxes** | **(2176316)** | **(1966656)** | **(936689)** | **(133945)** |
| Income tax (expense) benefit | (24) | (24) | 438 | 63 |
| **Net loss** | **(2176340)** | **(1966680)** | **(936251)** | **(133882)** |
| **Other comprehensive income (loss), net of tax of nil:** |  |  |  |  |
| Foreign currency translation adjustments | 102268 | 11558 | (126493) | (18089) |
| **Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders** | **(2074072)** | **(1955122)** | **(1062744)** | **(151971)** |

---

\* It represents the primary beneficiary's share of losses generated from the VIEs and their subsidiaries.

#### Condensed Statements of Cash Flows

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** | **For the year ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **US$** |
| Net cash (used in) generated from operating activities | (66851) | (82174) | 73443 | 10502 |
| Net cash generated from (used in) investing activities | 609277 | 243994 | (1883988) | (269407) |
| Net cash (used in) generated from financing activities | (681660) | (213174) | 4031637 | 576516 |
| Effect of exchange rate changes on cash and cash equivalents | (8586) | 34274 | (64157) | (9174) |
| **Net (decrease) increase in cash and cash equivalents** | **(147820)** | **(17080)** | **2156935** | **308437** |
| Cash and cash equivalents at the beginning of the year | 169743 | 21923 | 4843 | 693 |
| **Cash and cash equivalents at the end of the year** | **21923** | **4843** | **2161778** | **309130** |

---

[**Table of Contents**](#TOC)

**KINGSOFT CLOUD HOLDINGS LIMITED**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**(Amounts in thousands of Renminbi ("RMB") and US dollars ("US$")**

**except for number of shares and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**22.** **CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Continued)** 

***Basis of presentation***

For the presentation of the parent company only condensed financial information, the Company records its investments in subsidiaries and the VIEs under the equity method of accounting as prescribed in ASC 323, *Investments—Equity Method and Joint Ventures*. Such investments are presented on the condensed balance sheets as "Investments in subsidiaries" and the subsidiaries' and the VIEs' losses as "Share of income (loss) of subsidiaries" and "Contractual interests in VIEs and VIEs' subsidiaries" on the condensed statements of comprehensive loss. Under the equity method of accounting, the Company adjusted the carrying amount of "Investments in subsidiaries" for its share of the subsidiaries and the VIEs' cumulative losses until the investment balance reaches zero and did not provide for additional losses unless the Company has guaranteed obligations of the subsidiaries' and the VIEs' or is otherwise committed to provide further financial support.

The subsidiaries did not pay any dividends to the Company for the periods presented.

The Company does not have significant commitments or long-term obligations as of the period end.

The parent company only financial statements should be read in conjunction with the Company's consolidated financial statements.

## Exhibit 8.1

**Exhibit 8.1**

**List of Significant Subsidiaries, VIE and Subsidiaries of VIE of the Registrant**

---

| | |
|:---|:---|
| **Entity Subsidiaries** | **Place of incorporation** |
| Kingsoft Cloud Corporation Limited | Hong Kong |
| Beijing Kingsoft Cloud Technology Co., Ltd. | PRC |
| Beijing Yunxiang Zhisheng Technology Co., Ltd. | PRC |
| Camelot Technology Co., Ltd. | PRC |
| Hainan Yangpu Kingsoft Cloud Information Technology Co., Ltd. | PRC |

---

---

| | |
|:---|:---|
| **VIEs** | **Place of incorporation** |
| Zhuhai Kingsoft Cloud Technology Co., Ltd. | PRC |
| Kingsoft Cloud (Beijing) Information Technology Co., Ltd. | PRC |

---

---

| | |
|:---|:---|
| **Subsidiaries of VIEs** | **Place of incorporation** |
| Beijing Kingsoft Cloud Network Technology Co., Ltd. | PRC |
| Beijing Jinxun Ruibo Network Technology Co., Ltd. | PRC |
| Nanjing Qianyi Shixun Information Technology Co., Ltd. | PRC |
| Wuhan Kingsoft Cloud Information Technology Co., Ltd. | PRC |
| Kingsoft Cloud (Tianjin) Technology Development Co., Ltd. | PRC |
| Lingqiong Shunlian (Qingyang) Data Technology Co., Ltd. | PRC |

---

------

## Exhibit 12.1

**Exhibit 12.1**

**Certification by the Principal Executive Officer**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Tao Zou, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 20-F of Kingsoft Cloud Holdings Limited (the "Company");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors:

*CEO's Section 302 Certification*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Date: April 23, 2026

---

| | | |
|:---|:---|:---|
| By: | /s/ Tao Zou | /s/ Tao Zou |
|  | Name: | Tao Zou |
|  | Title: | Chief Executive Officer |

---

------

## Exhibit 12.2

**Exhibit 12.2**

**Certification by the Principal Accounting Officer**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Yi Li, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 20-F of Kingsoft Cloud Holdings Limited (the "Company");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors:

*CFO's Section 302 Certification*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Date: April 23, 2026

---

| | | |
|:---|:---|:---|
| By: | /s/ Yi Li | /s/ Yi Li |
|  | Name: | Yi Li |
|  | Title: | Chief Financial Officer |

---

------

## Exhibit 13.1

**Exhibit 13.1**

**Certification by the Principal Executive Officer**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the annual report of Kingsoft Cloud Holdings Limited (the "Company") on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Tao Zou, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 23, 2026

---

| | | |
|:---|:---|:---|
| By: | /s/ Tao Zou | /s/ Tao Zou |
|  | Name: | Tao Zou |
|  | Title: | Chief Executive Officer |

---

*CEO's Section 906 Certification*

------

## Exhibit 13.2

**Exhibit 13.2**

**Certification by the Principal Accounting Officer**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the annual report of Kingsoft Cloud Holdings Limited (the "Company") on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Yi Li, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 23, 2026

---

| | | |
|:---|:---|:---|
| By: | /s/ Yi Li | /s/ Yi Li |
|  | Name: | Yi Li |
|  | Title: | Chief Financial Officer |

---

*CFO's Section 906 Certification*

------

## Exhibit 15.1

**Exhibit 15.1**

![Graphic](kc-20251231xex15d1001.jpg)

FANGDA PARTNERS

http://www.fangdalaw.com

中国北京市朝阳区光华路一号 电子邮件 E-mail: email@fangdalaw.com <br> 北京嘉里中心北楼27层 电 话 Tel.: 86-10-5769-5600 <br> 邮政编码：100020 传 真 Fax: 86-10-5769-5799

27/F, North Tower, Beijing Kerry Centre

1 Guanghua Road, Chaoyang District

Beijing 100020, PRC

Kingsoft Cloud Holdings Limited

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

Haidian District

Beijing, 100085, the People's Republic of China

April 23, 2026

Dear Sirs,

We consent to the references to our firm under "Item 3. Key Information—3.D. Risk Factors-Permissions Required from the PRC Authorities for Our Operations and Securities Issuances to Foreign Investors." "Item 3. Key Information—3.D. Risk Factors—Risks Relating to Our Business and Industry—We face challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data protection, and user attitude toward data privacy and protection. Many of these laws and regulations are subject to change and uncertain interpretation, and any actual or alleged failure to comply with related laws and regulations regarding cybersecurity, information security, data privacy and protection could materially and adversely affect our business and results of operations." "Item 3. Key Information—3.D. Risk Factors—Our reliance on third-party suppliers for certain essential services could adversely affect our ability to manage our business effectively and harm our business." "Item 3. Key Information-3.D. Risk Factors—We may be required to change our registered address or relocate our operating offices under PRC law." and "Item 4. Information on the Company—4.C. Organizational Structure—Contractual Arrangements with the VIEs and Their Respective Shareholders" in Annual Report on Form 20-F of Kingsoft Cloud Holdings Limited for the fiscal year ended December 31, 2025 (the "Annual Report"), which is filed with the Securities and Exchange Commission (the "SEC") on the date hereof. We also consent to the filing with the SEC of this consent letter as an exhibit to the Annual Report.

In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, or under the Securities Exchange Act of 1934, in each case, as amended, or the regulations promulgated thereunder.

Yours faithfully

/s/ Fangda Partners

Fangda Partners

------

## Exhibit 15.2

**Exhibit 15.2**

**Our ref**JVZ/765236-000002/86424393v1

**Kingsoft Cloud Holdings Limited**

Building D, Xiaomi Science and Technology Park

No. 33 Xierqi Middle Road

Haidian District, Beijing

100085, the People's Republic of China

23 April 2026

Dear Sir or Madam

**Kingsoft Cloud Holdings Limited**

We have acted as legal advisers as to the laws of the Cayman Islands to Kingsoft Cloud Holdings Limited (the "**Company**"), an exempted company incorporated in the Cayman Islands with limited liability, in connection with the filing by the Company with the United States Securities and Exchange Commission (the "**SEC**") of an annual report on Form 20-F for the year ended 31 December 2025 (the "**Annual Report**").

We consent to the filing with the SEC of this consent letter as an exhibit to the Annual Report. In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, or under the Securities Exchange Act of 1934, in each case, as amended, or the regulations promulgated thereunder.

Yours faithfully

/s/ Maples and Calder (Hong Kong) LLP

Maples and Calder (Hong Kong) LLP

------

## Exhibit 15.3

**Exhibit 15.3**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Registration statement (Form S-8 No. 333-239769) pertaining to the 2013 Share Option Scheme and the 2013 Share Award Scheme of Kingsoft Cloud Holdings Limited,

&nbsp;&nbsp;&nbsp;&nbsp;(2) Registration statement (Form S-8 No. 333-265051) pertaining to the 2021 Share Incentive Plan of Kingsoft Cloud Holdings Limited,

&nbsp;&nbsp;&nbsp;&nbsp;(3) Registration statement (Form F-3 No. 333-286562) of Kingsoft Cloud Holdings Limited, and

&nbsp;&nbsp;&nbsp;&nbsp;(4) Registration statement (Form S-8 No. 333-288423) pertaining to the 2021 Share Incentive Plan of Kingsoft Cloud Holdings Limited;

of our reports dated April 23, 2026, with respect to the consolidated financial statements of Kingsoft Cloud Holdings Limited and the effectiveness of internal control over financial reporting of Kingsoft Cloud Holdings Limited included in this Annual Report (Form 20-F) of Kingsoft Cloud Holdings Limited for the year ended December 31, 2025.

---

| |
|:---|
| /s/ Ernst & Young Hua Ming LLP |
| Beijing, the People's Republic of China |
| April 23, 2026 |

---

------