Understanding the Market | Kingsoft Cloud rises over 5% again, renewing and revising the related transaction framework agreement with Xiaomi, enhancing the company's revenue visibility
Kingsoft Cloud rose over 5% again, as of the time of writing, up 5.56%, priced at HKD 3.61, with a transaction volume of HKD 407 million. In terms of news, Kingsoft Cloud announced on November 19th that it has renewed and revised its related party transaction framework agreement established in December 2022 with Kingsoft (which directly held approximately 37.40% of Kingsoft Cloud's shares on the announcement date) and Xiaomi (which directly and indirectly held a total of approximately 12.25% of the shares on the announcement date). The agreement includes cloud services provided by Kingsoft Cloud to the aforementioned related parties and financing services received from related parties, covering a three-year period from 2025 to 2027. CICC believes that since the second half of 2022, Kingsoft Cloud has continuously focused on computing power and R&D resources to meet the needs of Kingsoft and Xiaomi ecosystem customers, with the revenue proportion from Kingsoft and Xiaomi increasing from approximately 10% in 2021 to 20% in 3Q24. This related party transaction framework agreement outlines a clear growth path for ecosystem customer revenue over the next three years, and as the revenue proportion from related parties continues to rise within the company's overall revenue, the visibility of the company's performance is further enhanced
According to Zhitong Finance APP, Kingsoft Cloud (03896) has risen over 5% again, with a current increase of 5.56%, priced at HKD 3.61, and a transaction volume of HKD 407 million.
In terms of news, Kingsoft Cloud announced on November 19th that it has renewed and revised its related party transaction framework agreement established in December 2022 with Kingsoft (which directly held approximately 37.40% of Kingsoft Cloud's shares on the announcement date) and Xiaomi (which directly and indirectly held a total of approximately 12.25% of the shares on the announcement date). The agreement includes cloud services provided by Kingsoft Cloud to the aforementioned related parties and financing services received from related parties, covering a three-year period from 2025 to 2027.
CICC believes that since the second half of 2022, Kingsoft Cloud has continuously focused on computing power and R&D resources to serve the needs of Kingsoft and Xiaomi's ecosystem customers. The revenue proportion from Kingsoft and Xiaomi has increased from approximately 10% in 2021 to 20% in Q3 2024. This related party transaction framework agreement outlines a clear growth path for ecosystem customer revenue over the next three years. As the revenue proportion from related parties continues to increase in the company's overall revenue, the visibility of the company's performance is further enhanced