EX-99.2 3 tm2316316d1_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

KINGSOFT CLOUD HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands)

		Dec 31, 2022				Mar 31, 2023				Mar 31, 2023
		RMB				RMB				US$
ASSETS
Current assets:
Cash and cash equivalents			3,419,166				3,568,288				519,583
Restricted cash			114,560				97,897				14,255
Accounts receivable, net			2,402,430				2,232,702				325,107
Short-term investments			1,253,670				893,311				130,076
Prepayments and other assets			1,612,022				1,614,758				235,126
Amounts due from related parties			246,505				307,347				44,753
Total current assets			9,048,353				8,714,303				1,268,900
Non-current assets:
Property and equipment, net			2,132,994				1,786,097				260,076
Intangible assets, net			1,008,020				962,968				140,219
Prepayments and other assets			21,263				21,046				3,065
Equity investments			273,580				268,338				39,073
Goodwill			4,605,724				4,605,724				670,645
Amounts due from related parties			5,758				6,389				930
Operating lease right-of-use assets			220,539				192,393				28,015
Total non-current assets			8,267,878				7,842,955				1,142,023
Total assets			17,316,231				16,557,258				2,410,923
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term bank loans			909,500				1,087,206				158,309
Accounts payable			2,301,958				2,195,642				319,710
Accrued expenses and other current liabilities			2,830,826				2,671,739				389,035
Income tax payable			51,892				55,117				8,026
Amounts due to related parties			427,727				420,088				61,170
Current operating lease liabilities			136,723				115,769				16,857
Total current liabilities			6,658,626				6,545,561				953,107
Non-current liabilities:
Deferred tax liabilities			167,052				155,522				22,646
Amounts due to related parties			413,464				337,583				49,156
Other liabilities			370,531				447,981				65,231
Non-current operating lease liabilities			123,059				114,458				16,666
Total non-current liabilities			1,074,106				1,055,544				153,699
Total liabilities			7,732,732				7,601,105				1,106,806
Shareholders’ equity:
Ordinary shares			25,062				25,070				3,650
Treasury stock			(208,385	)			(208,385	)			(30,343	)
Additional paid-in capital			18,648,205				18,659,506				2,717,034
Statutory reserves funds			(14,700	)			(14,700	)			(2,140	)
Accumulated deficit			(10,102,236	)			(10,709,224	)			(1,559,384	)
Accumulated other comprehensive income			453,074				423,241				61,629
Total Kingsoft Cloud Holdings Limited shareholders’ equity			8,801,020				8,175,508				1,190,446
Noncontrolling interests			782,479				780,645				113,671
Total equity			9,583,499				8,956,153				1,304,117
Total liabilities and shareholders’ equity			17,316,231				16,557,258				2,410,923

KINGSOFT CLOUD HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(All amounts in thousands, except for share and per share data)

		Three Months Ended
		Mar 31, 2022				Dec 31, 2022				Mar 31, 2023				Mar 31, 2023
		RMB				RMB				RMB				US$
Revenues:
Public cloud services			1,380,807				1,344,293				1,153,674				167,988
Enterprise cloud services			792,509				785,918				709,976				103,381
Others			493				802				750				109
Total revenues			2,173,809				2,131,013				1,864,400				271,478
Cost of revenues			(2,093,851	)			(1,969,056	)			(1,670,215	)			(243,202	)
Gross profit			79,958				161,957				194,185				28,276
Operating expenses:
Selling and marketing expenses			(144,405	)			(126,081	)			(88,053	)			(12,822	)
General and administrative expenses			(221,763	)			(442,764	)			(488,628	)			(71,150	)
Research and development expenses			(246,633	)			(255,488	)			(215,370	)			(31,360	)
Total operating expenses			(612,801	)			(824,333	)			(792,051	)			(115,332	)
Operating loss			(532,843	)			(662,376	)			(597,866	)			(87,056	)
Interest income			21,157				21,688				14,068				2,048
Interest expense			(34,066	)			(31,694	)			(27,927	)			(4,066	)
Foreign exchange (loss) gain			(18,741	)			132,290				93				14
Other (loss) gain, net			(12,035	)			26,399				(7,946	)			(1,157	)
Other income, net			20,038				4,085				12,286				1,789
Loss before income taxes			(556,490	)			(509,608	)			(607,292	)			(88,428	)
Income tax benefit (expense)			1,670				(12,049	)			(1,529	)			(223	)
Net loss			(554,820	)			(521,657	)			(608,821	)			(88,651	)
Less: net loss attributable to noncontrolling interests			(1,571	)			(12,779	)			(1,833	)			(267	)
Net loss attributable to Kingsoft Cloud Holdings Limited			(553,249	)			(508,878	)			(606,988	)			(88,384	)
Net loss per share:
Basic and diluted			(0.15	)			(0.14	)			(0.17	)			(0.02	)
Shares used in the net loss per share computation:
Basic and diluted			3,648,282,282				3,528,680,363				3,546,512,621				3,546,512,621
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments			(9,764	)			(136,070	)			(29,833	)			(4,344	)
Comprehensive loss			(564,584	)			(657,727	)			(638,654	)			(92,995	)
Less: Comprehensive income (loss) attributable to noncontrolling interests			408				(12,682	)			(1,834	)			(267	)
Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders			(564,992	)			(645,045	)			(636,820	)			(92,728	)

KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

		Three Months Ended
		Mar 31, 2022				Dec 31, 2022				Mar 31, 2023				Mar 31, 2023
		RMB				RMB				RMB				US$
Gross profit			79,958				161,957				194,185				28,276
Adjustments:
– Share-based compensation expenses			3,619				6,557				224				33
Adjusted gross profit			83,577				168,514				194,409				28,309

KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

		Three Months Ended
		Mar 31, 2022				Dec 31, 2022				Mar 31, 2023
Gross margin			3.7	%			7.6	%			10.4	%
Adjusted gross margin			3.8	%			7.9	%			10.4	%

KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

		Three Months Ended
		Mar 31, 2022				Dec 31, 2022				Mar 31, 2023				Mar 31, 2023
		RMB				RMB				RMB				US$
Net Loss			(554,820	)			(521,657	)			(608,821	)			(88,651	)
Adjustments:
– Share-based compensation expenses			93,182				101,270				11,309				1,647
– Foreign exchange loss (gain)			18,741				(132,290	)			(93	)			(14	)
– Impairment of long-lived assets			-				-				185,135				26,958
Adjusted net loss			(442,897	)			(552,677	)			(412,470	)			(60,060	)
Adjustments:
– Interest income			(21,157	)			(21,688	)			(14,068	)			(2,048	)
– Interest expense			34,066				31,694				27,927				4,066
– Income tax (benefit) expense			(1,670	)			12,049				1,529				223
– Depreciation and amortization			287,481				285,515				266,535				38,811
Adjusted EBITDA			(144,177	)			(245,107	)			(130,547	)			(19,008	)
– Loss on disposal of property and equipment			-				28,788				20,216				2,944
Excluding loss on disposal of property and equipment, normalized Adjusted EBITDA			(144,177	)			(216,319	)			(110,331	)			(16,064	)

KINGSOFT CLOUD HOLDINGS LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for percentage)

		Three Months Ended
		Mar 31, 2022				Dec 31, 2022				Mar 31, 2023
Net loss margin			-25.5	%			-24.5	%			-32.7	%
Adjusted net loss margin			-20.4	%			-25.9	%			-22.1	%
Adjusted EBITDA Margin			-6.6	%			-11.5	%			-7.0	%
Normalized Adjusted EBITDA			-6.6	%			-10.2	%			-5.9	%

KINGSOFT CLOUD HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(All amounts in thousands)  

		Three Months Ended
		Mar 31, 2022				Dec 31, 2022				Mar 31, 2023				Mar 31, 2023
		RMB				RMB				RMB				US$
Net cash (used in) generated from operating activities			(626,008	)			370,446				(271,387	)			(39,517	)
Net cash (used in) generated from investing activities			(524,766	)			900,951				319,670				46,548
Net cash generated from (used in) financing activities			97,609				(806,656	)			103,994				15,143
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(21,017	)			(137,369	)			(19,818	)			(2,886	)
Net (decrease) increase in cash, cash equivalents and restricted cash			(1,053,165	)			464,741				152,277				22,174
Cash, cash equivalents and restricted cash at beginning of period			4,456,621				3,206,354				3,533,726				514,550
Cash, cash equivalents and restricted cash at end of period			3,382,439				3,533,726				3,666,185				533,838