Good morning, ladies and gentlemen, and thank you for standing by for Kingsoft Cloud's first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I will now turn the meeting in over to your host for today's call, Mr. Wayne Wang, Investor Relations of Kingsoft Cloud. Please proceed, Wayne.

Thank you, operator. Hello, everyone, and thank you for joining us today. Kingsoft Cloud's first quarter 2026 earnings release was just built earlier today and is available on our website at ir.ksyun.com, as well as on PR Newswire services. On the call today from Kings of Cloud, we have our chairman and CEO, Mr. Zhou Tao, CFO, Ms. Li Yi, senior vice president, Mr. Liu Tao, senior vice president, Mr. Tian Kai-Yen, vice president, Mr. Wang Zeng-Zeng, and boss secretary, Mr. Cloud Tian. Mr. Zhou will discuss our business strategies, operations, and other company highlights, followed by Ms. Li, who will discuss the financial performance. They will be available to answer your questions during the Q&A session that follows. There will be consecutive interpretations. All interpretations are for your convenience and reference purposes only. In case of any discrepancy, management statement in the original language will prevail. Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934F amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding this and other risks, uncertainties, or factors are included in the company's violence with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under applicable law. Finally, please note that, unless otherwise stated, all financial figures mentioned during this conference call have been nominated in RMB. It is now my pleasure to introduce our chairman and CEO, Mr. Zhou.

Please go ahead. 业绩电话会 持续发展战略,一方面夯实自算云基础设施和训推平台能力,另一方面深耕行业垂直场景落地,全新投入AI重塑世界的变革, 本季度实现收入27.0亿元 37.2% 行业云均实现了同比增长 供业云收入达20亿元 同比增长47.5% 盈利水平方面,本季度公司实现调整后毛利率,毛利率3.5亿元8.6%,调整后 EBITDA7.5亿元,同比增长134.7%,调整后 EBITDA27.6%,同比提升11.4%. 其次 智善继续驱动公司业务增长 本季度智善业务账单收入达10亿元 同比增长90.1% 50.1% 极强劲 而26年4月为1月的约53倍 第三生态合作继续深化本季度来自小米和金山生态的收入达8.4亿元同比增长68.9

随着小米在人车家全生态和AI领域强化投入带来更多业务机会 我们米上调与小米持续关联交易上限 调整后2025至2027三年框架内 来自小米金山持续关联收入上限达142亿元 Good evening everyone and welcome to Kingsoft Cloud's first quarter 2026 earnings call. I am Zhou Tao CEO of Kingsoft Cloud. Since the beginning of 2026, the continued adoption of AI coding together with the rapid rise of AI agents, have driven AI to evolve from chat-oriented to action-oriented use cases. This shift is fueling concurrent growth in both model inference and training demand, further expanding the setting of the cloud computing industry. This quarter, Kingsoft Cloud remains firmly committed to our high-quality and sustainable development strategy. We strengthened our AI cloud infrastructure and enhanced our training inference platform capabilities in the meantime we also further deepen our presence in industry specific use cases fully embracing ai's transformative role in reshaping the world first we sustain our momentum of high quality growth in terms of revenue we recorded a total revenue of rmb 2.7 billion this quarter representing a year-over-year growth of 37.2 percent both Both public cloud and enterprise cloud services achieved year-over-year growth. Among them, public cloud revenue reached R&B 2.0 billion, a year-over-year increase of 47.5%. In terms of profitability, our adjusted gross profit reached R&B 351 million, up 8.6% year-over-year. Adjusted EBITDA was RMB 748 million, representing a year-over-year increase of 134.7%, with adjusted EBITDA margin reaching 27.6%, a significant year-over-year improvement of 11.4% each point. Second, AI Cloud continued to drive the company's business growth. This quarter, AI cloud growth buildings reached RMB 1.0 billion, a year-over-year increase of 90.1%, accounting for over half of public cloud revenue for the first time, reaching 50.1%. Notably, our token services delivered exceptionally strong growth, with April 2026 revenue skyrocketing to 53 times that of January. Third, ecosystem cooperation continued to strengthen. This quarter, revenue from Xiaomi and Kingsoft's ecosystem reached RMB's $838 million, a year-over-year increase of 68.9%, accounting for 31.0% of total revenue. As Xiaomi reinforces its investments in the human, car, home, smart ecosystem, and AI advancement, it brings forth more business opportunities for us. We plan to revise the annual caps for the continuing connected transactions with Xiaomi.

Following the adjustments, the revised annual caps with Xiaomi and KingSong for the continuing connector transactions under the three-year framework from 2025 to 2027 will reach RMB 14.2 billion. 内大体量高可见的云计算,长期全球战略合作,精心规划,打造具有长期精进力的产品与解决方案,和生态外客户的广泛认可,凭借扎实的产品技术力,丰富的案例经验和良好的口碑,所拓展客户强劲的增长势头,我们为某独角兽自动驾驶客户提供自算服务, 实现快速交付和运维响应 助力其海量数据处理和端到端神经网络的高效训练迭代 抢占市场先机 我们也凭借新流 训推平台卓越的资源调度 弹性扩机互联网企业的 抓住了推理业务爆发式增长的市场机遇 第三 我们实现了客户结构的显著优化 随着推理应用支架 音视频等在内的广泛行业 客户结构更加均衡 本季度我们深度赋能某全面保障客户新业务的快速发展与平台的稳定运行 我们还成功支持某头部物流科技企业开展大模型代码开发项目 通过灵活调用多个模型为客户技术团队赋能 驱动研发效率与创新能力双提升 正是这种多元化的客户结构与业务布局 不仅带来收入规模的提升 也使我们能更灵活的错峰调度算力 提升资源利用率和盈利能力 Now, let me walk you through our business highlights for the first quarter of 2026.

In terms of public cloud services, revenue reached RMB 2.0 billion this quarter, representing a year-over-year increase of 47.5%. First, we continued to closely align with the large-scale and highly visible cloud computing demand within the Xiaomi and Kingsoft ecosystem. With a long-term and global strategic perspective, we are carefully planning and continuously through refining our offerings to build products and solutions with sustainable competitive advantages. Second, we earned broad recognition from customers outside the ecosystem. Leveraging our solid product and technology capabilities, extensive project experience, and strong market reputation, we rapidly expanded both our customer coverage and the depth of business cooperation. This quarter, revenue from our top five non-ecosystem customers increased by 66% year over year, maintaining strong growth momentum. We provided AI cloud services to a leading autonomous driving unicorn, enabling rapid deployment and responsive operations. This supported large-scale data processing and efficient end-to-end neural network training iterations, helping the customer capture early market opportunities. Through our Starflow training and inference platform, with backed-in-class resource scheduling, elastic scalability, and model deployment capabilities, we effectively supported the token demand of many top-tier internet companies, capturing the surge in inference-driven demand. Third, we achieved a meaningful optimization of our customer mix. As inference applications continue to scale, our AI business now spans a wide range of industries, including internet, AI companies, autonomous writing, logistics, fintech, gaming, and video streaming, resulting in a more balanced customer mix. This quarter, we deeply empowered a leading AI for Science customer, ensuring its rapid business growth and stable platform operations. we also supported a top logistics technology company in executing large-scale code development projects enabling its engineering teams through flexible multi-modal utilization and significantly improving r&d efficiency and innovation capability capability this diversified customer mix and business portfolio not only drive revenue growth but also enabled us to schedule computing resources more flexibly in off-peak periods, improve resource utilization and enhance profitability.

业务管理等场景的数值化升级 我们基于金山云技术底座 采用省平台加多区线平台一体化架构 在湖北打造供应链公共信息平台 实现资源节约数据互通业务协同 目前已支撑多地式区线平台规模化上云 以丙军国内芯片厂商合作,构建从底层芯片到上层应用的全站资算服务体系,落地推动国产资算云规模化商业应用,满足高安全、高可控的华东科技大学同济医学院附属协合医院合作,通过体系化数据管控方法,分散式管理,向标准化治理的跨越。 为大型医疗机构智能化转型梳理标杆 我们还签约某大型一共体平台项目 该项目基于数据中心彰显了我们在一共体建设领域 医疗机构以此为标杆 大规模推广上线 企业服务领域当交付绿色能源运营平台 保障大型重力有效管理 In terms of enterprise cloud services, revenue reached R&B 710 million this quarter, representing

a year-over-year increase of 14.7%. In the public services sector, we launched the state-owned cloud cloud platform in Shenzhen, focusing on the core needs of state-owned enterprises for high security, strong compliance, and strict data confidentiality, and fully enabling the digital and intelligent upgrade of office, business, and management use cases. Leveraging KingSup Cloud's technology foundation, we adopted an integrated architecture, that is, provincial platform plus multi-prefecture and county platforms, to build a supply chain public information platform in Hubei, enabling resources efficiency, data interoperability, and business collaboration, and have now supported the scaled migration of multiple municipal and counter-level platforms to the cloud. We also partnered with a leading domestic chip manufacturer to build a full-stack intelligent computing service system spanning from underlying chips to upper-layer applications, advancing the large-scale commercial deployment of domestically developed intelligent computing cloud solutions and meeting the demand for high-security and highly-controllable computing capabilities. In the digital healthcare sector, we collaborated with Union Hospital affiliated with Tongji Medical College of Huazhong University of Science and Technology, one of the top ranked hospitals in China, on a data governance project. Through a systematic data management framework, we helped the hospital transition from fragmented management to standardized governance, setting a benchmark for the intelligent transformation of large medical institutions. We also signed a contract for a large-scale medical consortium platform project. Based on the data middle platform, this project highlights our end-to-end professional capabilities in planning, designing, construction, and operation within the medical consortium space, laying the foundation for large-scale replication and rollout across healthcare institutions.

In the enterprise services sector, we delivered a green energy operation platform for leading clean energy service provider, enabling effective incentive management of large heavy-duty truck We further extended into the broader green and low-carbon industrial chain, exploring digital solutions for solid waste management and driving large-scale business deployment. 产品技术方面 我们继续坚持技术利益 紧密围绕制算需求 面向日益多样化的模型需求 我们的新流平台 大幅扩充模型生态 API服务 新增语音识别 语音生成类模型 扩充图片和视频更精细化的管理体验 面向智能体需求 然后,我们上线了Egents Engine,高效完成Egents的开发,和Egents一键部署能力,支持OpenCloud,HEMAS等主流Egents的应用。 实现5分钟以内部署,面向AI训练场景,完成加速,兼顾性能与成本。 面向AI落地天洋百夜的私有化部署需求,我们的银河云平台完成了里程碑突破, In terms of product and technology, we continue to stay committed to a technology-driven approach

closely aligned with AI cloud demands, and have comprehensively upgraded our products and services. During the quarter, in response to increasingly diverse model requirements, our Starflow platform significantly expanded its model ecosystem. We added new API services for speech recognition and speech synthesis, expanded image and video generation models, and delivered a more refined user management experience. To address growing demand for AI agents, we launched Agent Engine, enabling customers to efficiently develop, deploy, and manage agents. We also introduced one-click agent deployment on our cloud hosts, supporting mainstream agent applications such as OpenClaw and Hermes, achieving deployment within five minutes and significantly lowering the barrier to adoption. For AI training and inference use cases, KS3 cache accelerator now delivers stable millisecond level low latency balancing performance and cost efficiency to meet the rising demand for private deployment of ai across industries our galaxy stack platform reached a key milestone adding star flow and security modules and completing a full stack closed loop private deployment solution for ai cloud covering cloud infrastructure integrated training and inference token services and security God knows. will increase the ability for customers, investors, employees and society to create a longer-term value.

Next, I'd like to introduce CFO Liye to you for the business industry. Thank you.

Overall, in this wave of AI innovation, from text generation to multi-model capabilities, from training to inference, from chatting to real-world text execution, and from agent to clause, First, the pace of innovation and deepening applications continues to reinforce our conviction that AI will fundamentally reshape industries across the board. Kingsoft Cloud will continue to uphold its strategy of high quality and sustainable development, increase investment, deepen its focus on core products and solutions, and continuously enhance profitability, creating greater long-term value for customers, shareholders, employees, and society. Next, I will hand over to our CFO, Ms. Li Yi, who will walk you through our first quarter financial results.

Thank you, Mr. Zhou and Clark, and thank you all for joining the call today. I will now discuss the first quarter financial results using RMB as currency.

Before we walk through the details of the financial results of the first quarter, I would like to highlight the following aspects.

First, our revenue has been consecutively achieved year-over-year growth for eight quarters reaching $3,704 million this quarter. For the first time, our AI business became the majority revenue driver, contributing over 50% of our public cloud services revenue and marking a pivotal structural shift in our growth mix. This quarter, our AI business building increased 91% year-over-year, amounted to $998 million. Second, our adjusted gross profit was $351 million, increased by 7% year-over-year, despite the overall supply chain challenges. Our adjusted EBITDA margin was 28%, increased by 11 percentage points year-over-year, thanks to our AI revenue growth. Third, in that strong demand across diverse sectors, we remain steadfast in investing our infrastructure, as our capital expenditures and leased assets obtained in combination growth 38% year-over-year to three billion this quarter. And we expect to continue to invest to facilitate further business expansion throughout the year. Now, I will walk you through our financial results for the first quarter of 2026. This quarter, total news was 2,704 million. Of these, three news from public cloud sources were 1,996 million. up 47% from $1,353 million in the same quarter last year. Real news for enterprise revenue subsists reach $707 million, up 50% from $660 million in the same quarter last year. Total cost of revenues was $2,358 million, up 43% year-over-year, which was mainly due to our investment into AI computer resources. ITC cost increased by 26% year-over-year, from $723 million to $911 million this quarter. The increase was mainly due to the increase of RAC services which served the expanding AI business. Depreciation and amortization cost increased from $370,000 in the same quarter of 2025 to $890,000 this quarter. The increase was mainly due to the depreciation of newly acquired and leased servers and network equipment, which were mainly related to AI business. Solution development and services cost increased by 40% year-over-year from $500 and $5 million in the same quarter of 2025 to $575 million this quarter. The increase was mainly due to the solution personal expansion of Camelot. $4 million cost and the other cost was $2 million and $0.01 million this quarter. Our adjusted growth profit for the quarter was $351 million, increased by 7% year-over-year and decreased by 25% quarter-over-quarter. Adjusted growth margin decreased from 70% last quarter to 30% this quarter. The decrease was mainly due to the higher cost of server along with expansion of our AI business, as well as upfront costs incurred for future revenue generating activities with certain customers. On the expense side, exclude share-based compensation expenses. Our total adjusted operating expenses were $455 million, remaining stable compared with the same quarter last year and last quarter, of which are adjusted R&D expenses for $184 million, decreased by 80% from staying caught last year. Adjusted selling and marketing expenses were $112 million, increased by 4% year-over-year. Adjusted general and administrative expenses were $159 million, increased by 34% year-over-year. Our adjusted operating loss was $60 million, increased by 7% from adjusted operating loss of $56 million in the same period last year. The improvement was mainly due to the expansion of revenue scale. Adjusted operating loss margin decreased from 3% in the same period last year to 2% this quarter, representing a decrease of 0.6 percentage points. Our long gap in digital profit was $748 million, increased by 135% from $390 million in the same quarter last year. Our long gap in digital margin achieved 28%, compared with 60% in the same quarter last It was mainly due to our strong commitment to AI cloud computing development and strategic adjustment of business structures. This quarter, our capital expenditures, including those financed by third parties and right of use assets obtained in exchange for financially stability, were 2,185 million. Looking ahead, we aim to capitalize on the explosive growth in demand by further investing infrastructures, enhancing services stability, managing liquidity risk, and improving operating efficiency. We remain focused on AI-driven strategies, providing customers with high-value access cloud services. That's all for the introduction of our operational and financial results. Thank you all.

This concludes our prepared remarks. Thank you for your attention. We are now happy to take your questions.

Please ask your questions in both Mandarin and English, if possible. operator please go ahead thank you we will now begin the question and answer session if you wish to ask a question please press star 1 1 on your telephone and wait for your name to be announced to withdraw your question please press star 1 1 again we will take our first question and the question comes from from CICC. Please go ahead.

Your line is open. 说一说就是目前这块业务大概我们的想法是怎么样的 然后它的收入体量和利润率水平如何 未来怎么看就是整块业务的一个收入规模 我们怎么展望它的这个想做到什么样的一个水平吧 然后第二个问题是想问一下关于我们这个AI 这个公有云里面AI的这部分收入啊 因为我们也都知道这个上游无论是这个芯片和存储的价格都是上浮了不少 那同时呢下游的这个需求也是非常的旺盛 那么和去年这个4Q相比 我们看到今年的1Q和2Q新签的这个订单的情况 平均价格是否有了一些提升 那么这个提升的幅度如何 我自己翻译一下 good evening mr. Joe and miss Lee thanks for taking my questions and congrats on another strong quarter so I have two questions the first one is relating to your staff low mass platform miss Joe mentioned that the revenue of the mass platform increased 53 times from January to April could you share the current revenue scale and margin levels and what's management's outlook on this business and the second question is about the AI pricing compared to the fourth quarter of 2025 have there been increases in the average pricing for the new name signed public cloud contracts in the first quarter and second quarter this year? If so, by how much?

Thank you. 来是在服务规模以上的客户的所以呢其实我们从年后回来开始呢我们结合这个agent的这个需求爆发我们接到了大量的顶级互联网客户和各行业客户的这种webcoding的场景解agent的场景啊所以这个量爆起来呢就是每个客户的量级都是比较大的实际上我们现在是受限于交付资源的原因所以其实没有完全充分释放这个业务的潜力啊但就在这种相对有限的条件下业务还是得到了一个巨大的增长 But because it's not sure enough, so we can see the whole year of this business. We can say that it's a rather pleasant growth. So we can see a more accurate situation. From the revenue standpoint, this business, compared to our traditional云计算業, and our traditional算力 business, it's a relatively high value. And it's a, according to our技術 improvement, and it will be improved by our technology.

So quickly translation, so our token business actually started off at a relatively small base, let's say, end of last year and the beginning of this year. However, traditionally, we have already maintained a very strong customer base of very large-scale leading customers. So at the beginning of this year, we're starting to meet huge demands coming from such customers in light of the surge of agent demand, the surge of vacuuming demand in such use cases. So obviously, the demand was huge and very strong, but in a way, our business was restricted by the underlying resources that is available to us. So I would say that obviously, we're optimistic about the growth of this business, however, we need to, due to that uncertainty, we just mentioned, we would like to, let's say, see a couple more quarters before disclosing more details to the market of how that business grows. And secondly, in terms of margin levels, I would say that the margin levels for this token business, the inference business, is generally higher than traditional cloud computing business. And we do see a lot of improvement in margin coming from technology advancement, coming from the optimization of algorithms, coming from the optimizing that algorithm with the random models, and also optimization and improvement coming from operating models. So I would say we're cautiously optimistic about the margin, but again, due to still currently in a quickly expanding phase, it's not in a static phase, so we will not, at this stage, talk more about the specific margin numbers. 第二个问题我来回答那么从我们目前看到的情况来讲的从下游的客户的需求来讲应该是在周一的出现一个激增的一个状态那么同时的话呢我们的上游供应上的价格呢其实也在一个激增部分不管是从不见还是从整机还是到原材料其实都在一个上涨的过程里面

So, everyone thinks that the growth趨勢 will continue to continue.

So, even the price is rising, but the customers still think that in this stage, the price of the on-air price can be completely covered by the on-air customer. So, in general, we have a question about the selling and purchasing price in relation to our business. So, yes, as widely recognized, the demand for our cloud computing services have been surging So is the pricing from our upstream, which includes from components to holistic servers to other raw materials. So the current consensus of the market, including our customers, is that the price hiking, the price surge trend will actually continue, not only happening, already happening in Q1, but also will continue in Q2 and maybe some quarters to follow. So they would believe that the current time point to secure more computing power is actually the right moment to do so. And because of that, the pass-through of the price of the cluster pressure coming from our upstream is actually doable and would not affect our negatively, it would not negatively affect our margin levels in this current market situation.

Thank you.

We will take our next question. Your next question comes from the line of Wentin Yu from CELSA. Please go ahead. Your line is open.

Thank you. The first question is regarding the gross margin in the first quarter. We noticed that the gross margin drop a bit in the first period, and what are the main reasons? Has the positive effects of the product price increase has been factored in already? And the second question is, with ongoing high demand for computing power, large model companies are adapting their resource allocation and forming partnerships beyond public soft standards to keep the advantage of companies and telcos. How does management see the cloud competitive position and advantages in this trend?

Thank you for your question. For the first time, our first quarter of the margin, we can see a 3% percentage decrease. I think the first factor is because there's the 30% revenue come from the public cloud, public enterprises cloud. So that is the first reason. And the second one is the upfront cost in terms of future revenue generated activities with certain customers. For the coming courses, we expect the fourth project margin will recover to the nominal level.

Thank you. 这整个的这个市场格局发生了一个很有意思的现象啊 有些过去竞争关系的现在是合作伙伴了 真假具体的这个就是就是现在也变成上下有的 有些是一盘上了啊 我们是民企业啊 那进入到自尚时代也是个紧密合作 呃其实是这样啊 我说这个这个现象的背后呢 说明说明几个问题啊 我说第一个呢其实是一种能力的互补 当然也可以说是一种制度的互补啊 其实这个呢我自己在当前竞争有的谈论不要以竞争对手去看它我觉得无论从体制还是从能力上它都非常明显啊 第二个呢就是这个算力市场的以及供给的够足这个矛盾所以呢这个大家要联合起来大家抱谈在一起 我知道你刚才谈这个问题种竞争的角度去看感受到的其实更面临一个蓬勃发展的时代 It's a very good question.

Relatively interesting change in market land 2025. That is, some of the actually becoming cooperation partners in this wake of strong AI demand. And what you mentioned in your question, it also exemplifies the private enterprises' complementary capabilities from, or I would say, complementary institutions, you know, coming from different backgrounds of enterprises, which we have mentioned, you know, back in the general computing, the CPU computing age, and this is actually manifesting itself again in this new AI, so intelligent cloud era. And secondly, we would think that this is fundamentally reflects the strong discrepancy between, or the strong gap, or the big gap between supply and demand in today's market. So everybody actually needs to come together and to overcome shortcomings that each one of us have to form holistic and overall solutions to serve the end customers. Your question is more from a competition perspective, but from our understanding and experience, we're actually seeing a more kind of cooperative perspective of the story. So we're going to have this shortcomings, and we work together to serve the needs of the end customers.

Thank you. We will take our next question. Your next question comes from the line of Daily Lee from Bank of America Securities. Please go ahead. Your line is open.

I think the growth rate is very fast, and I want to share some of the second-year-old-year-old-year-old-year-old-year-old-year-old-year-old-year-old-year-old-year-old-year-old-year-old-year-old. The most important thing is that the growth rate of training is about the two months. The second question is about the small detail. I have two questions here. First question about the demand outlook for the public cloud, the one key result is pretty And how do we see the demand trend in Q2 and the CENHAB this year? Regarding the demand mix, how's the trend for inferencing and the model training? And the second question is about the contract term with our clients. as the upstream costs are in a rising trend, are we taking like a shorter term or any change in terms of the contract terms?

Thank you. 非常大啊但是受限于这个供应链的这个变化所以可能还是就是需求是短往生的啊另外呢就是说从行业上来看哪些客户行业啊其实还是很丰富的就是既有互联网的客户也有这种比如说具体的AI公司也有包括像自动驾驶的客户需求也在爆发包括机器人上的需求也在爆发对所以说整体来看就是多个行业线的需求都在爆发式的增长啊那么这里面看哪些是

推理的训练呢可以看到啊像自动驾驶机器人是明显是训练的需求为主包括为训练而准备的数据处理的需求 那么对于一些公司来说呢我们还是看到了有一些新进市场的训练的玩家在正在进入市场啊同时呢这个来自于大模型公司和互联网公司的推理以及比如口顶带来的推理需求也是在增长的啊所以这几个增长另外呢就是从合约角度来看啊因为现在的供给还比较 So in terms of AI demand, as we mentioned, it's extremely strong, and looking at the second quarter, we currently actually have a very long list of backlogs, which is mainly subject to the supply chain restrictions. Now, for the sectors that drive this growth, we're currently covering quite a few sectors which we have all seen simultaneously having explosively strong demand. Starting from the internet, from large language model AI labs, from autonomous driving and from robotics. And I would say that out of which the autonomous driving and robotics generally tend to have very strong model training requirements and demand and particularly for robotics they have also and also for autonomous driving actually they have also a lot of data processing or data treatment requirements demands for the training of their models and for the inference side of the story we have the internet companies and large-language model companies coming from their demands for VIBE coding and agents such use cases. So this is the general overview of the demand side of things. Now since you also mentioned about the contract period, we had relatively standard contract periods in the past but then now in light of this new supply chain, the price search, we currently have more flexible kind of contract period arrangements uh which maximizes our uh profit and benefits thank you thank you thank you thank you we will take our final question your final question comes from the line of timothy's out from goldman sachs please go ahead your line is open uh

Okay, thank you for your question. Thank you for your question. I have two questions. The first question is about the price of this year. The price of this year is compared to the 4th year, and the price of this year is a bit higher. In the last year, we saw the price of this year 包括训练和推理的使用量有哪些变化,那我们也宣布了在26年27年和小米的这个关联交易的额度,那想请教一下我们对整个额度的使用率,相对于25年是怎么去判断的,这个是第一条问题,那第二条问题是关于我们的资本支出和我们的这个租赁的资产,那我看到在一季度我们整体是大概花了30亿人民币左右, Thank you, management, for taking my question, and congrats on the very strong results. My first question is regarding your revenue from Xiaomi and the Kinsoft ecosystem. I noticed that the revenue growth accelerated compared to the fourth quarter of last year. Just wondering, if there's a rate to Xiaomi after the MIMO large language model launch, and especially MIMO v2.5, have you observed any specific change on the demand for kinsaw cloud resources and the breakdown between training and inferences? And after you announced the rate of hardy transaction revenue cap with Xiaomi for this year and next, just wondering how do you think about the utilization rate versus last year? My second question is regarding your capex and also lease assets. I noticed that the total amount spent was around $3 billion in the first quarter. Just wondering if you can provide us an update on how you think about this total capex number for this year.

Thank you.

So on the train. The vast majority of the resources come from Kingsoft Cloud, so we'll continue to see growth of growing demand in that respect. In inference demand, especially since the launch of V2, MIMO V2, a lot of underlying resource has been reallocated to do the training for that, to do the inference for that model. In terms of the prediction for future growth of inference coming from MIMO, we are relatively optimistic. However, it's ultimately subject to the return on Xiaomi's side. So I'll personally comment on that, but we generally remain optimistic about that.

For Captain Dietrich, actually the AI euro presents huge opportunities for us. Fortunately, we launched our internet computer business back in 2023. We have well established our supply chain capabilities and our supply network is in place now. As Mr. Liu Tao has mentioned, we have seen a certain demand from our strong customer of demand. But we have to admit the supply chain capacity is the primary limiting factor for the capital spending for the 2026. And we estimate that our data estimate is to say for the 2026 is around 15 billion to 20 billion at this moment. Thank you.

Thank you. This concludes today's question and answer session.

I will now hand back for closing remarks thank you thank you for joining us today if you have any further questions feel free to connect us looking forward to speaking with you again next quarter have a nice day this concludes today's conference call thank you for participating you may now disconnect