Wenting Yu's questions to Kingsoft Cloud Holdings (KC) leadership • Q2 2025
Question
Wenting Yu of CLSA Limited inquired about the revenue outlook for the second half of 2025 and first half of 2026, Xiaomi's AI investment pace, and AI capacity trends among large model vendors. She also asked about the impact of leasing compute resources on gross margins and the expected future trend.
Answer
CEO Zhou Tao stated that H2 2025 revenue growth is expected to be stronger than H1. He confirmed the delivery of a larger computing cluster for Xiaomi and noted that overall market demand for AI remains strong, with a mix of training and inference needs. Regarding margins, he explained the strategic shift from a high-CapEx self-procurement model to lower-CapEx resource pool and profit-sharing models. While this caused a slight dip in gross profit margin, it was a successful strategic choice. He added that a new 'agent model' is also being explored and expects the gross profit margin to stabilize around the current level.