Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39278 |
Entity Registrant Name | Kingsoft Cloud Holdings Limited |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Building D, Xiaomi Science and Technology Park, No. 33 Xierqi Middle Road |
Entity Address, Address Line Two | Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100085 |
Entity Address, Country | CN |
Entity Common Stock, Shares Outstanding | 3,805,284,801 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001795589 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | Ernst & Young Hua Ming LLP |
Auditor Firm ID | 1408 |
Auditor Location | Beijing, the People’s Republic of China |
Business Contact | |
Document and Entity Information | |
Contact Personnel Name | Haijian He |
City Area Code | 86 |
Extension | 10 |
Local Phone Number | 6292 7777 |
Entity Address, Address Line One | Building D, Xiaomi Science and Technology Park, No. 33 Xierqi Middle Road |
Entity Address, Address Line Two | Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100085 |
Entity Address, Country | CN |
American Depositary Shares | |
Document and Entity Information | |
Title of 12(b) Security | American depositary shares, each ADS represents 15 ordinary shares, par valueUS$0.001 per share |
Trading Symbol | KC |
Security Exchange Name | NASDAQ |
Ordinary Shares | |
Document and Entity Information | |
Title of 12(b) Security | Ordinary shares, par value US$0.001 per share* |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 3,419,166 | $ 495,732,000 | ¥ 4,217,528 |
Restricted cash | 114,560 | 16,610,000 | 239,093 |
Accounts receivable, net of allowance for credit losses of RMB32,265 and RMB47,962 (US$6,954) as of December 31, 2021 and 2022, respectively | 2,402,430 | 348,320,000 | 3,570,975 |
Short-term investments | 1,253,670 | 181,765,000 | 2,491,056 |
Prepayments and other assets | 1,612,022 | 233,721,000 | 1,687,021 |
Amounts due from related parties | 246,505 | 35,740,000 | 207,143 |
Total current assets | 9,048,353 | 1,311,888,000 | 12,412,816 |
Non-current assets: | |||
Property and equipment, net | 2,132,994 | 309,255,000 | 2,364,103 |
Intangible assets, net | 1,008,020 | 146,149,000 | 1,169,767 |
Goodwill | 4,605,724 | 667,767,000 | 4,625,115 |
Prepayments and other assets | 21,263 | 3,083,000 | 29,066 |
Equity investments | 273,580 | 39,665,000 | 207,166 |
Amounts due from related parties | 5,758 | 835,000 | 5,758 |
Deferred tax assets | 7,798 | ||
Operating lease right-of-use assets | 220,539 | 31,975,000 | 256,451 |
Total non-current assets | 8,267,878 | 1,198,729,000 | 8,665,224 |
Total assets | 17,316,231 | 2,510,617,000 | 21,078,040 |
Current liabilities: | |||
Accounts payable (including accounts payable of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB2,733,487 and RMB2,113,674 (US$306,454) as of December 31, 2021 and 2022, respectively) | 2,301,958 | 333,753,000 | 2,938,632 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB1,208,868 and RMB644,858 (US$93,496) as of December 31, 2021 and 2022, respectively) | 2,830,826 | 410,428,000 | 2,223,840 |
Short-term bank loans (including short-term bank loans of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB1,348,166 and RMB885,500 (US$128,385) as of December 31, 2021 and 2022, respectively) | 909,500 | 131,865,000 | 1,348,166 |
Income tax payable (including income tax payable of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB1,026 and RMB nil (US$ nil) as of December 31, 2021 and 2022, respectively) | 51,892 | 7,524,000 | 60,217 |
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 RMB797,731 and RMB388,308 (US$56,299) as of December 31, 2021 and 2022, respectively) | 427,727 | 62,015,000 | 836,435 |
Current operating lease liabilities (including current operating lease liabilities of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB70,672 and RMB87,142 (US$12,634) as of December 31, 2021 and 2022, respectively) | 136,723 | 19,823,000 | 108,590 |
Total current liabilities | 6,658,626 | 965,408,000 | 7,515,880 |
Non-current liabilities: | |||
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 RMB472,882 and RMB413,464 (US$59,947) as of December 31, 2021 and 2022, respectively) | 413,464 | 59,947,000 | 472,882 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB nil and RMB nil (US$ nil) as of December 31, 2021 and 2022, respectively) | 167,052 | 24,220,000 | 205,889 |
Other liabilities (including other liabilities of the consolidated VIEs and their subsidiaries without recourse to the primary beneficiary of RMB6,975 and RMB 284,971 (US$41,316) as of December 31, 2021 and 2022, respectively) | 370,531 | 53,722,000 | 1,232,677 |
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 RMB121,057 and RMB90,138 (US$13,069) as of December 31, 2021 and 2022, respectively) | 123,059 | 17,842,000 | 158,289 |
Total non-current liabilities | 1,074,106 | 155,731,000 | 2,069,737 |
Total liabilities | 7,732,732 | 1,121,139,000 | 9,585,617 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Ordinary shares (par value of US$0.001 per share; 4,000,000,000 and 40,000,000,000 shares authorized, 3,805,284,810 and 3,805,284,801 shares issued, 3,646,381,840 and 3,687,612,015 shares outstanding as of December 31, 2021 and 2022, respectively) | 25,062 | 3,634,000 | 24,782 |
Treasury shares | (208,385) | (30,213,000) | |
Additional paid-in capital | 18,648,205 | 2,703,736,000 | 18,245,801 |
Statutory reserves funds | (14,700) | (2,131,000) | (7,723) |
Accumulated deficit | (10,102,236) | (1,464,687,000) | (7,451,029) |
Accumulated other comprehensive (loss) income | 453,074 | 65,690,000 | (207,882) |
Total Kingsoft Cloud Holdings Limited shareholders' equity | 8,801,020 | 1,276,029,000 | 10,603,949 |
Non-controlling interests | 782,479 | 113,449,000 | 888,474 |
Total equity | 9,583,499 | 1,389,478,000 | 11,492,423 |
Total liabilities, non-controlling interests and shareholders' equity | ¥ 17,316,231 | $ 2,510,617,000 | ¥ 21,078,040 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares |
Accounts receivable, net of allowance for credit losses | ¥ 47,962 | $ 6,954 | ¥ 32,265 |
Accounts payable | 2,301,958 | 333,753 | 2,938,632 |
Accrued expenses and other current liabilities | 2,830,826 | 410,428 | 2,223,840 |
Short-term bank loans | 909,500 | 131,865 | 1,348,166 |
Income tax payable | 51,892 | 7,524 | 60,217 |
Amounts due to related parties | 427,727 | 62,015 | 836,435 |
Current operating lease liabilities | 136,723 | 19,823 | 108,590 |
Amounts due to related parties | 413,464 | 59,947 | 472,882 |
Deferred tax liabilities | 167,052 | 24,220 | 205,889 |
Other liabilities | 370,531 | 53,722 | 1,232,677 |
Non-current operating lease liabilities | ¥ 123,059 | $ 17,842 | ¥ 158,289 |
Ordinary shares par value (per share) | $ / shares | $ 0.001 | ||
Ordinary shares authorized | 40,000,000,000 | 40,000,000,000 | 40,000,000,000 |
Ordinary shares issued | 3,805,284,801 | 3,805,284,801 | 3,805,284,810 |
Ordinary shares outstanding | 3,508,413,941 | 3,508,413,941 | 3,646,381,840 |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||
Accounts payable | ¥ 2,113,674 | $ 306,455 | ¥ 2,733,487 |
Accrued expenses and other current liabilities | 644,858 | 93,496 | 1,208,868 |
Short-term bank loans | 885,500 | 128,385 | 1,348,166 |
Income tax payable | 0 | 0 | 1,026 |
Amounts due to related parties | 388,308 | 56,299 | 797,731 |
Current operating lease liabilities | 87,142 | 12,634 | 70,672 |
Amounts due to related parties | 413,464 | 59,947 | 472,882 |
Deferred tax liabilities | 0 | 0 | 0 |
Other liabilities | 284,971 | 41,316 | 6,975 |
Non-current operating lease liabilities | ¥ 90,138 | $ 13,069 | ¥ 121,057 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Revenues: | ||||
Total revenues | ¥ 8,180,107 | $ 1,186,004 | ¥ 9,060,784 | ¥ 6,577,307 |
Cost of revenues (including related party amounts of RMB988, RMB980 and nil for the years ended December 31, 2020, 2021 and 2022, respectively) | (7,750,569) | (1,123,727) | (8,709,496) | (6,220,324) |
Gross profit | 429,538 | 62,277 | 351,288 | 356,983 |
Operating expenses: | ||||
Selling and marketing expenses | (560,059) | (81,201) | (518,167) | (409,211) |
General and administrative expenses | (1,149,677) | (166,687) | (601,702) | (379,892) |
Research and development expenses | (971,216) | (140,813) | (1,043,811) | (775,130) |
Total operating expenses | (2,680,952) | (388,701) | (2,163,680) | (1,564,233) |
Operating loss | (2,251,414) | (326,424) | (1,812,392) | (1,207,250) |
Interest income | 80,743 | 11,707 | 71,942 | 77,118 |
Interest expense | (137,812) | (19,981) | (52,040) | (9,453) |
Foreign exchange gain (loss) | (334,629) | (48,517) | 37,822 | 188,800 |
Other gain (loss), net | (43,810) | (6,352) | 83,606 | 14,301 |
Other (expense) income, net | 23,007 | 3,336 | 95,047 | (10,810) |
Loss before income taxes | (2,663,915) | (386,231) | (1,576,015) | (947,294) |
Income tax expense | (24,473) | (3,548) | (15,741) | (14,904) |
Net loss | (2,688,388) | (389,779) | (1,591,756) | (962,198) |
Less: net income (loss) attributable to non-controlling interests | (30,204) | (4,379) | (3,044) | 61 |
Net loss attributable to Kingsoft Cloud Holdings Limited | (2,658,184) | (385,400) | (1,588,712) | (962,259) |
Accretion to redemption value of redeemable convertible preferred shares | ¥ | (19,768) | |||
Net loss attributable to ordinary shareholders - basic | ¥ (2,658,184) | $ (385,400) | ¥ (1,588,712) | ¥ (982,027) |
Net loss per share: | ||||
Basic | (per share) | ¥ (0.73) | $ (0.11) | ¥ (0.46) | ¥ (0.41) |
Diluted | (per share) | ¥ (0.73) | $ (0.11) | ¥ (0.46) | ¥ (0.41) |
Shares used in the net loss per share computation: | ||||
Basic | shares | 3,623,838,985 | 3,623,838,985 | 3,441,729,444 | 2,400,874,197 |
Diluted | shares | 3,623,838,985 | 3,623,838,985 | 3,441,729,444 | 2,400,874,197 |
Other comprehensive (loss) income, net of tax of nil: | ||||
Foreign currency translation adjustments | ¥ 660,697 | $ 95,792 | ¥ (139,575) | ¥ (552,788) |
Comprehensive loss | (2,027,691) | (293,987) | (1,731,331) | (1,514,986) |
Less: Comprehensive income (loss) attributable to non-controlling interests | (30,463) | (4,417) | (3,177) | 61 |
Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders | (1,997,228) | (289,570) | (1,728,154) | (1,515,047) |
Accretion to redemption value of redeemable convertible preferred shares | ¥ | (19,768) | |||
Comprehensive loss attributable to ordinary shareholders | (1,997,228) | (289,570) | (1,728,154) | (1,534,815) |
Public cloud services | ||||
Revenues: | ||||
Total revenues | 5,360,282 | 777,168 | 6,159,085 | 5,166,851 |
Enterprise cloud services | ||||
Revenues: | ||||
Total revenues | 2,816,976 | 408,423 | 2,897,817 | 1,372,689 |
Others | ||||
Revenues: | ||||
Total revenues | ¥ 2,849 | $ 413 | ¥ 3,882 | ¥ 37,767 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Revenue from related party | ¥ 1,128,665 | $ 163,642 | ¥ 929,524 | ¥ 777,369 |
Cost of revenue from related party | 0 | 980 | 988 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | |
Public cloud services | ||||
Revenue from related party | 1,043,183 | 151,248 | 905,755 | 777,287 |
Enterprise cloud services | ||||
Revenue from related party | 85,482 | 12,394 | 23,695 | 0 |
Others | ||||
Revenue from related party | ¥ 0 | $ 0 | ¥ 74 | ¥ 82 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands | Ordinary Shares IPO CNY (¥) shares | Ordinary Shares Follow on offering CNY (¥) shares | Ordinary Shares Redeemable Convertible Preferred Stock CNY (¥) shares | Ordinary Shares CNY (¥) shares | Ordinary Shares USD ($) shares | Treasury shares CNY (¥) | Treasury shares USD ($) | Additional Paid-in Capital IPO CNY (¥) | Additional Paid-in Capital Follow on offering CNY (¥) | Additional Paid-in Capital Redeemable Convertible Preferred Stock CNY (¥) | Additional Paid-in Capital CNY (¥) shares | Additional Paid-in Capital USD ($) shares | Accumulated Other Comprehensive Income CNY (¥) | Accumulated Other Comprehensive Income USD ($) | Accumulated deficit Adjustment CNY (¥) | Accumulated deficit CNY (¥) | Accumulated deficit USD ($) | Statutory Reserve Funds CNY (¥) | Statutory Reserve Funds USD ($) | Total Kingsoft Cloud Holdings Limited shareholders (deficit) equity IPO CNY (¥) | Total Kingsoft Cloud Holdings Limited shareholders (deficit) equity Follow on offering CNY (¥) | Total Kingsoft Cloud Holdings Limited shareholders (deficit) equity Redeemable Convertible Preferred Stock CNY (¥) | Total Kingsoft Cloud Holdings Limited shareholders (deficit) equity Adjustment CNY (¥) | Total Kingsoft Cloud Holdings Limited shareholders (deficit) equity CNY (¥) | Total Kingsoft Cloud Holdings Limited shareholders (deficit) equity USD ($) | Non-Controlling Interests CNY (¥) | Non-Controlling Interests USD ($) | Series A Convertible Preferred Shares CNY (¥) shares | IPO CNY (¥) | Follow on offering CNY (¥) | Redeemable Convertible Preferred Stock CNY (¥) | Adjustment CNY (¥) | CNY (¥) | USD ($) | ||||
Balance at Dec. 31, 2019 | ¥ 5,558 | ¥ 91,746 | ¥ 484,348 | ¥ (4,902,097) | ¥ (4,197,259) | ¥ 123,186 | ¥ (4,197,259) | |||||||||||||||||||||||||||||||
Balance (In shares) at Dec. 31, 2019 | shares | 894,711,200 | [1] | 894,711,200 | [1] | 458,116,000 | |||||||||||||||||||||||||||||||||
Net (loss) profit for the year | (962,259) | (962,259) | ¥ 61 | (962,198) | ||||||||||||||||||||||||||||||||||
Accretion to redemption value of redeemable convertible preferred shares | (19,768) | (19,768) | (19,768) | |||||||||||||||||||||||||||||||||||
Other comprehensive loss | (552,788) | (552,788) | (552,788) | |||||||||||||||||||||||||||||||||||
Share-based compensation | 330,114 | 330,114 | 330,114 | |||||||||||||||||||||||||||||||||||
Exercise and vesting of share-based awards | ¥ 517 | 22,390 | 22,907 | 22,907 | ||||||||||||||||||||||||||||||||||
Exercise and vesting of share-based awards (In shares) | shares | [1] | 76,883,116 | 76,883,116 | |||||||||||||||||||||||||||||||||||
Repurchase of ordinary shares | ¥ (38) | (26,662) | (26,700) | (26,700) | ||||||||||||||||||||||||||||||||||
Repurchase of ordinary shares (In shares) | shares | [1] | (5,475,254) | (5,475,254) | |||||||||||||||||||||||||||||||||||
Issuance of ordinary shares | ¥ 3,663 | ¥ 945 | ¥ 3,871,731 | ¥ 1,880,288 | ¥ 3,875,394 | ¥ 1,881,233 | ¥ 3,875,394 | ¥ 1,881,233 | ||||||||||||||||||||||||||||||
Issuance of ordinary shares (In shares) | shares | [1] | 517,500,000 | 138,750,000 | |||||||||||||||||||||||||||||||||||
Conversion of Series A, Series B convertible preferred shares and Series C, Series D and Series D+ redeemable convertible preferred shares into ordinary shares | ¥ 8,913 | ¥ 3,243 | ¥ 7,880,202 | 119,943 | ¥ 7,889,115 | ¥ (123,186) | ¥ 7,889,115 | |||||||||||||||||||||||||||||||
Conversion of Series A, Series B convertible preferred shares and Series C, Series D and Series D+ redeemable convertible preferred shares into ordinary shares (In shares) | shares | 1,259,133,571 | [1] | 458,116,000 | [1] | 458,116,000 | [1] | (458,116,000) | |||||||||||||||||||||||||||||||
Balance at Dec. 31, 2020 | ¥ 22,801 | ¥ 14,149,984 | (68,440) | ¥ (5,684) | (5,864,356) | ¥ (5,684) | 8,239,989 | 61 | ¥ (5,684) | 8,240,050 | ||||||||||||||||||||||||||||
Balance (In shares) at Dec. 31, 2020 | shares | [1] | 3,339,618,633 | 3,339,618,633 | |||||||||||||||||||||||||||||||||||
Net (loss) profit for the year | (1,588,712) | (1,588,712) | (3,044) | (1,591,756) | ||||||||||||||||||||||||||||||||||
Appropriation to statutory reserves | 7,723 | ¥ (7,723) | ||||||||||||||||||||||||||||||||||||
Business acquisition | ¥ 1,598 | 3,617,083 | 891,590 | 4,508,673 | ||||||||||||||||||||||||||||||||||
Business acquisition (In shares) | shares | 247,475,446 | [1] | 247,475,446 | [1] | 3,615,485,000 | 3,615,485,000 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | (139,442) | (139,442) | (133) | (139,575) | ||||||||||||||||||||||||||||||||||
Share-based compensation | ¥ 434,350 | 434,350 | 434,350 | |||||||||||||||||||||||||||||||||||
Exercise and vesting of share-based awards | ¥ 383 | 45,982 | 46,365 | 46,365 | ||||||||||||||||||||||||||||||||||
Exercise and vesting of share-based awards (In shares) | shares | [1] | 59,287,761 | ||||||||||||||||||||||||||||||||||||
Balance at Dec. 31, 2021 | ¥ 24,782 | $ 3,889 | 18,245,801 | $ 2,863,164 | (207,882) | $ (32,621) | (7,451,029) | $ (1,169,229) | (7,723) | $ (1,212) | 10,603,949 | $ 1,663,991 | 888,474 | $ 139,421 | 11,492,423 | $ 1,803,412 | ||||||||||||||||||||||
Balance (In shares) at Dec. 31, 2021 | shares | [1] | 3,646,381,840 | 3,646,381,840 | |||||||||||||||||||||||||||||||||||
Net (loss) profit for the year | (2,658,184) | (2,658,184) | (30,204) | (2,688,388) | (389,779,000) | |||||||||||||||||||||||||||||||||
Appropriation to statutory reserves | 6,977 | (6,977) | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | 660,956 | 660,956 | (259) | 660,697 | ||||||||||||||||||||||||||||||||||
Capital contribution from non-controlling interests | 2,143 | 2,143 | ||||||||||||||||||||||||||||||||||||
Disposal of a subsidiary | (9,136) | (9,136) | ||||||||||||||||||||||||||||||||||||
Share-based compensation | 392,291 | 392,291 | (68,539) | 323,752 | ||||||||||||||||||||||||||||||||||
Exercise and vesting of share-based awards | ¥ 280 | 10,113 | 10,393 | 10,393 | ||||||||||||||||||||||||||||||||||
Exercise and vesting of share-based awards (In shares) | shares | [1] | 45,933,211 | 45,933,211 | |||||||||||||||||||||||||||||||||||
Repurchase of ordinary shares | ¥ (208,385) | (208,385) | (208,385) | |||||||||||||||||||||||||||||||||||
Repurchase of ordinary shares (In shares) | shares | [1] | (183,901,110) | (183,901,110) | |||||||||||||||||||||||||||||||||||
Balance at Dec. 31, 2022 | ¥ 25,062 | $ 3,634,000 | ¥ (208,385) | $ (30,213,000) | ¥ 18,648,205 | $ 2,703,736,000 | ¥ 453,074 | $ 65,690,000 | ¥ (10,102,236) | $ (1,464,687,000) | ¥ (14,700) | $ (2,131,000) | ¥ 8,801,020 | $ 1,276,029,000 | ¥ 782,479 | $ 113,449,000 | ¥ 9,583,499 | $ 1,389,478,000 | ||||||||||||||||||||
Balance (In shares) at Dec. 31, 2022 | shares | [1] | 3,508,413,941 | 3,508,413,941 | |||||||||||||||||||||||||||||||||||
[1]As of December 31, 2020, 2021 and 2022, 206,506,322, 158,902,970 and 112,969,750 ordinary shares, respectively, were issued in relation to the share awards. These shares are legally issued but not outstanding. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | |||
Stock Issued During Period, Shares, Issued for Services | 112,969,750 | 158,902,970 | 206,506,322 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net loss | ¥ (2,688,388) | $ (389,779) | ¥ (1,591,756) | ¥ (962,198) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 1,157,424 | 167,811 | 855,604 | 758,038 | |
Share-based compensation | 359,835 | 52,171 | 434,350 | 330,114 | |
Provision for credit losses | 346,867 | 50,291 | 112,013 | 31,881 | |
(Loss) gain from disposal of property and equipment | 28,788 | 4,174 | (5,814) | (2,242) | |
Changes in fair value of equity investments | 354 | 52 | (82,492) | (14,301) | |
Gain on disposal of equity investments | (10,363) | ||||
Impairment of equity investments | 14,940 | 2,166 | |||
Changes in fair value of purchase consideration of a business acquisition | 28,516 | 4,134 | 9,249 | ||
Changes in fair value of purchase contingent consideration of a business acquisition | (7,034) | ||||
Impairment of contract costs | 7,270 | 1,054 | |||
Issuance costs expensed for offerings | 38,872 | 5,636 | 3,727 | ||
Foreign exchange (gain) loss | 334,629 | 48,517 | (37,822) | (188,800) | |
Deferred income tax | (35,195) | (5,103) | (11,852) | (177) | |
Non-cash operating lease expense | 72,244 | 10,474 | 52,648 | 52,890 | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | 827,589 | 119,988 | (947,790) | (1,024,113) | |
Prepayments and other assets | 132,639 | 19,231 | 30,883 | (356,761) | |
Amounts due from related parties | (39,581) | (5,739) | (2,075) | (75,315) | |
Accounts payable | (585,424) | (84,879) | 593,410 | 804,198 | |
Accrued expenses and other liabilities | 251,751 | 36,501 | (91,018) | 381,001 | |
Operating lease liabilities | (43,701) | (6,336) | (31,791) | (45,748) | |
Amounts due to related parties | (15,192) | (2,203) | 2,064 | 8,739 | |
Income tax payable | (5,263) | (763) | 20,717 | 8,457 | |
Net cash used in operating activities | 188,974 | 27,398 | (708,869) | (290,433) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchases of property and equipment | (1,418,634) | (205,682) | (723,285) | (1,559,946) | |
Disposal of property and equipment | 34,635 | 5,022 | 8,319 | 1,363 | |
Purchases of intangible assets | (18,774) | (2,722) | (12,106) | (16,865) | |
Purchases of short-term investments | (2,549,508) | (369,644) | (2,568,325) | (5,607,690) | |
Proceeds from maturities of short-term investments | 4,043,262 | 586,218 | 2,720,186 | 2,891,597 | |
Purchases of land use rights | (14,832) | ||||
Acquisition of equity investments | (63,356) | (9,186) | (52,493) | $ (8,237) | (14,650) |
Disposal of equity investments | 63,476 | ||||
Acquisition of business, net of cash acquired | (157,484) | (22,833) | 139,350 | ||
Asset-related government grants received | 99,571 | 14,436 | 3,255 | 7,020 | |
Disposal of a subsidiary | (2,577) | (374) | |||
Net cash used in investing activities | (32,865) | (4,765) | (421,623) | (4,314,003) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Repayment of long-term bank loan | (74,351) | (100,000) | |||
Repayment of short-term bank loans | (1,375,325) | (199,402) | (496,707) | ||
Proceeds from short-term bank loans | 936,658 | 135,803 | 1,540,166 | 278,487 | |
Settlement of share-based awards | (43,981) | (6,377) | |||
Payment of offering costs | (25,338) | (3,674) | |||
Proceeds from IPO, net of offering costs | 3,933,393 | ||||
Proceeds from follow-on offering, net of offering costs | 1,876,316 | ||||
Capital contribution from non-controlling interests | 2,143 | 311 | |||
Proceeds from loans due to related parties | 300,000 | 43,496 | 1,192,455 | ||
Repayment of loans due to a related party | (755,719) | (109,570) | |||
Proceeds from exercise of options | 17,801 | 2,581 | 50,924 | 11,227 | |
Repurchases of ordinary shares | (208,385) | (30,213) | |||
Proceeds from redeemable convertible preferred shares, net of issuance costs | 124,730 | ||||
Net cash generated from (used in) financing activities | (1,152,146) | (167,045) | 2,212,487 | 6,124,153 | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 73,142 | 10,605 | (50,048) | (118,306) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (922,895) | (133,807) | 1,081,995 | 1,519,717 | |
Cash, cash equivalents, and restricted cash at beginning of year | 4,456,621 | 646,149 | 3,424,674 | 2,023,263 | |
Cash, cash equivalents, and restricted cash at end of year | 3,533,726 | 512,342 | 4,456,621 | $ 646,149 | 3,424,674 |
Supplemental disclosures of cash flow information: | |||||
Restricted cash | 114,560 | 16,610 | 239,093 | ||
Income taxes paid | 64,932 | 9,414 | 6,874 | 6,270 | |
Interest expense paid | 130,322 | 18,895 | 45,844 | 9,206 | |
Non-cash investing and financing activities: | |||||
Purchases of property and equipment included in accrued expenses and other liabilities | 120,530 | 17,475 | 759,391 | 181,038 | |
Purchase consideration included in accrued expenses and other liabilities | 1,208,985 | 175,286 | 1,328,508 | ||
Settlement of senior executive loans by repurchase of ordinary shares | ¥ 26,700 | ||||
Offering costs included in accrued expenses and other liabilities | ¥ 13,534 | $ 1,962 | |||
Non-cash acquisition of business | ¥ 3,617,083 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND BASIS OF PRESENTATION | |
ORGANIZATION AND BASIS OF PRESENTATION | 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 mainland China, 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 interest Date of attributable Place of establishment/ to the Name establishment acquisition Company Principal activities Subsidiaries: Kingsoft Cloud Corporation Limited HK February 1, 2012 100 % Cloud services Beijing Kingsoft Cloud Technology Co., Ltd. (“Beijing Kingsoft Cloud”)* Mainland China April 9, 2012 100 % Research and development Beijing Yunxiang Zhisheng Technology Co., Ltd. (“Yunxiang Zhisheng”)* Mainland China December 15, 2015 100 % Research and development Camelot Technology Co., Ltd. (“Camelot Technology”) Mainland China September 3, 2021 82.72 % Enterprise digital solutions and related services Variable interest entities: Zhuhai Kingsoft Cloud Technology Co., Ltd. (“Zhuhai Kingsoft Cloud”) Mainland China November 9, 2012 Nil Investment holding Kingsoft Cloud (Beijing) Information Technology Co., Ltd. (“Kingsoft Cloud Information”) Mainland China April 13, 2018 Nil Investment holding Variable interest entities’ subsidiaries: Beijing Kingsoft Cloud Network Technology Co., Ltd. (“Beijing Kingsoft Cloud Network Technology”) Mainland China November 9, 2012 Nil Cloud services Beijing Jinxun Ruibo Network Technology Co., Ltd. (“Beijing Jinxun Ruibo”) Mainland China December 17, 2015 Nil Cloud services Nanjing Qianyi Shixun Information Technology Co., Ltd. Mainland China March 31, 2016 Nil Cloud services Wuhan Kingsoft Cloud Information Technology Co., Ltd. Mainland China December 26, 2017 Nil Cloud services Kingsoft Cloud (Tianjin) Technology Development Co., Ltd. Mainland China May 30, 2019 Nil Cloud services * 1. ORGANIZATION AND BASIS OF PRESENTATION (Continued) In October 2022, the Company 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 RMB456,000 (US$66,114). As of December 31, 2022, the acquisition of the 9.50% of equity interests in Camelot Technology was not completed. To comply with laws and regulations of mainland China which prohibit foreign control of companies that engage in value-added telecommunication services, the Group primarily conducts its business in the mainland China 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 mainland China 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 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. 1. ORGANIZATION AND BASIS OF PRESENTATION (Continued) Exclusive Purchase Option Agreements Pursuant to the exclusive purchase option agreement between 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 mainland China. 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 mainland China 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 mainland China. 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 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. 1. ORGANIZATION AND BASIS OF PRESENTATION (Continued) Equity Pledge Agreements (Continued) 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. 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 mainland China, 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 its 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 mainland China; (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 mainland China; and (iii) the resolutions are valid in accordance with the articles of association of the Company and Cayman Islands Law. However, uncertainties in the mainland China 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 mainland China 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 mainland China, 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. 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 at December 31 2021 2022 2022 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 2,209,647 1,231,226 178,511 Restricted cash 89,704 107,840 15,635 Accounts receivable, net of allowance for credit losses of RMB30,082 and RMB32,413 (US$4,699) as of December 31, 2021 and 2022, respectively 3,170,860 2,032,260 294,650 Prepayments and other assets 907,350 927,040 134,408 Amounts due from related parties 184,137 216,346 31,367 Amounts due from subsidiaries of the Group 2,157,428 2,538,670 368,073 Total current assets 8,719,126 7,053,382 1,022,644 Non-current assets: Property and equipment, net 2,157,093 1,978,937 286,919 Intangible assets, net 93,662 83,393 12,091 Prepayments and other assets 27,036 20,257 2,937 Goodwill 64,082 48,814 7,077 Equity investments 162,244 179,697 26,054 Amounts due from related parties 4,712 4,712 683 Operating lease right-of-use assets 184,908 147,719 21,417 Total non-current assets 2,693,737 2,463,529 357,178 Total assets 11,412,863 9,516,911 1,379,822 Current liabilities: Accounts payable 2,733,487 2,113,674 306,455 Accrued expenses and other liabilities 1,208,868 644,858 93,496 Short-term bank loans 1,348,166 885,500 128,385 Income tax payable 1,026 — — Amounts due to related parties 797,731 388,308 56,299 Current operating lease liabilities 70,672 87,142 12,634 Amounts due to subsidiaries of the Group 1,597,946 3,854,844 558,900 Total current liabilities 7,757,896 7,974,326 1,156,169 Non-current liabilities: Other liabilities 6,975 284,971 41,316 Non-current operating lease liabilities 121,057 90,138 13,069 Amounts due to related parties 472,882 413,464 59,947 Amounts due to subsidiaries of the Group 7,486,525 7,206,545 1,044,851 Total non-current liabilities 8,087,439 7,995,118 1,159,183 Total liabilities 15,845,335 15,969,444 2,315,352 1. ORGANIZATION AND BASIS OF PRESENTATION (Continued) For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Revenues 6,377,158 7,972,143 5,571,837 807,840 Net loss (922,908) (1,556,904) (2,211,057) (320,573) Net cash used in operating activities (833,479) (958,748) (144,977) (21,020) Net cash used in investing activities (1,471,637) (843,586) (1,167,374) (169,253) Net cash generated from financing activities 2,802,088 2,612,563 567,592 82,293 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 97.0%, 88.0% and 68.1% of the Group’s consolidated revenue for the years ended December 31, 2020, 2021 and 2022, respectively, after elimination of inter-entity transactions. As of December 31, 2021 and 2022, except for RMB702,424 and RMB585,005 (US$84,818) of VIEs’ subsidiaries’ electronic equipment that was secured for the loans borrowed from Xiaomi Group (Note 13 and Note 19), and RMB89,704 and RMB14,695 (US$2,131) of a VIE’s subsidiary’s restricted cash that was secured for certain payables to suppliers and to guarantee certain revenue contracts, 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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”). “Statutory reserve funds” are separately presented on the consolidated balance sheet as of December 31, 2022 and the consolidated statement of changes in shareholders’ equity for the year ended December 31, 2022. Accordingly, prior year balances were reclassified to conform with current year presentation. Principles of consolidation The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries, the VIEs, and their subsidiaries of the VIEs for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Use of estimates The preparation of 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 dates 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, contract assets and amounts due from related parties, measurement of operating and finance lease right-of-use assets and lease liabilities, impairment of long-lived assets, impairment of goodwill, useful lives of long-lived assets, realization of deferred tax assets, uncertain tax positions, share-based compensation expense, the purchase price allocation and fair value of non-controlling interests and contingent consideration with respect to business combinations, the fair value of equity investments and standalone selling prices of performance obligation of revenue contracts. 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. 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 the mainland China 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 (loss), a component of shareholders’ equity. Convenience translation Amounts in U.S. dollars are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.8972 per US$1.00 on December 31, 2022 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) As of December 31, 2021 and 2022, a majority of the Group’s cash and cash equivalents were held by financial institutions located in mainland China and Hong Kong. Deposits held in mainland China are subject to restrictions on foreign exchange and the ability to transfer cash outside of mainland China. In May 2015, a new Deposit Insurance System (“DIS”) managed by the People’s Bank of China (“PBOC”) was implemented by the Chinese government. Deposits in the licensed banks in mainland China 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$500. As an offshore holding company, the Company is permitted under laws and regulations of mainland China to provide funding from the proceeds of its of offshore fundraising activities to its mainland China 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 years ended December 31, 2020, 2021 and 2022, the VIEs and their subsidiaries transferred RMB24,869, RMB20,157 and RMB18,473 (US$2,678), respectively, to the Company’s WFOE as payment or prepayment of service fees under the Contractual Agreements. 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 periods presented. In addition, the Group has not generated sufficient distributable profits to pay dividends or fully settle amounts due to the Company. Restricted cash As of December 31, 2021, a majority of the Group’s restricted cash was held by financial institutions located in mainland China and Hong Kong, and mainly represents cash reserved in escrow accounts for the remaining payments in relation to a business acquisition, cash secured for certain payables to suppliers and cash to guarantee the Group’s performance under certain revenue contracts. As of December 31, 2022, substantially all of the Group’s restricted cash was held by financial institutions located in mainland China, and mainly represents cash secured for certain payables to suppliers. Short-term investments The Group’s short-term investments comprise primarily of cash deposits at fixed rates with original maturities of greater than three months, but less than 12 months. As of December 31, 2021 and 2022, all of the Group’s short-term investments were held by financial institutions located in mainland China and Hong Kong. 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 income (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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Business combinations The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Equity investments 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 for a cash consideration of RMB63,356 (US$9,186). The Group recorded RMB22,683 (US$3,289) of unrealized losses resulting from the change in fair value of the equity investments in “Other gain (loss), net” on the consolidated statement of comprehensive loss for the year ended December 31, 2022. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 mainland China that are not in-substance common stock. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurements and Disclosures 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 entity has to estimate 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 entity has to recognize an impairment loss in the statements of comprehensive loss equal to the difference between the carrying value and fair value. In 2021, the Group: i) acquired equity interest of a company engaged in providing technology services with a cash consideration of RMB52,493 (US$8,237); and ii) disposed equity interests in certain equity investees and recognized a disposal gain of RMB10,363 (US$1,626) in “Other gain (loss), net”. In February 2022, the Group disposed certain equity interests in Beijing Yunshu Xunlian Technology Co., Ltd. (“Beijing Yunshu”), and deconsolidated Beijing Yunshu’s financial results from the Group’s consolidated financial statements from the date of disposal. The Group measured its remaining interests in Beijing Yunshu at fair value upon deconsolidation, and the loss recognized from the disposal of Beijing Yunshu was immaterial. Subsequent to the deconsolidation, the Group owns 15.63% equity interests in Beijing Yunshu and the remaining equity interests are accounted for using the measurement alternative. The Group recognized RMB14,301, RMB82,492 and RMB22,452 (US$3,255) of unrealized gains (upward adjustments), and RMB nil, RMB nil and RMB nil (US$nil) of unrealized losses (downward adjustments) resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, in other gain (loss), net on the consolidated statements of comprehensive loss for the years ended December 31, 2020, 2021 and 2022, respectively. The total carrying value of equity investments held were as follows: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Equity investments without readily determinable fair value: Initial cost basis 114,876 114,256 124,196 18,007 Cumulative unrealized gains 14,301 96,793 119,245 17,289 Cumulative unrealized losses (including impairment) — — (14,940) (2,166) Foreign currency translation (2,594) (3,883) 271 39 126,583 207,166 228,772 33,169 Equity investments with readily determinable fair value: Initial cost basis — — 63,356 9,186 Cumulative unrealized losses — — (22,683) (3,289) Foreign currency translation — — 4,135 599 — — 44,808 6,496 Total carrying value 126,583 207,166 273,580 39,665 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair value measurements Financial instruments of the Group primarily include cash and cash equivalents, restricted cash, short-term investments, accounts receivable and contract assets, equity investments, accounts payable, purchase consideration payable, certain other liabilities, amounts due from and due to related parties and short-term bank loans. For equity investments without readily determinable fair value, the Group elected to use the measurement alternative to measure those 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, with the assistance of an independent third-party valuation firm, determined the estimated fair value of its equity investments using the alternative measurement. The Group measures equity investments with readily determinable fair value using the market approach based on the quoted prices in an active market. The Group measures its purchase consideration payable at fair value on a recurring basis. The fair value of purchase consideration payable is estimated by discounting cash flows using interest rates currently available for similar debts instruments of comparable 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. The carrying amounts of the remaining financial instruments approximate to their fair values because of their short-term maturities. 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. a) Assets and liabilities measured at fair value on a recurring basis Quoted prices in Significant active markets other Significant Total Fair for identical observable unobservable Total Value assets inputs inputs losses (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB RMB As of December 31, 2021 Purchase consideration payable (1,328,508) — (1,328,508) — (9,249) As of December 31, 2022 Purchase consideration payable (1,208,985) — (1,208,985) — (28,516) Equity investments with readily determinable fair value 44,808 44,808 — — (22,683) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b) Assets and liabilities measured at fair value on a non-recurring basis Quoted prices in Significant active markets other Significant Total Fair for identical observable unobservable Total Value assets inputs inputs gains (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB RMB As of December 31, 2021 Equity investments accounted for using measurement alternative 207,166 — — 207,166 82,492 As of December 31, 2022 Equity investments accounted for using measurement alternative 228,772 — — 228,772 22,452 The non-recurring fair value measurements to the carrying amount of equity investments accounted for using measurement alternative usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Group. These non-recurring fair value measurements were measured by using the observable transaction price and other unobservable inputs (level 3) as of the observable transaction dates. Adoption of ASC 326 On January 1, 2021, the Group adopted ASC 326, Credit Losses Accounts receivable and contract assets, net The Group maintains an allowance for credit losses in accordance with 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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: Estimated Category Useful Life Electronic equipment 3-4 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 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. 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: Estimated Category 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. As of December 31, 2021 and 2022, the Group did not have any intangible assets with indefinite lives. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Impairment of long-lived assets The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, 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. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. The significant assumptions used in the future undiscounted cash flows of the asset group for which impairment indicators are identified included revenue growth rates and bandwidth and internet data center costs (“IDC costs”). For all periods presented, there was no impairment of any of the Group’s long-lived assets. Segment reporting In accordance with ASC 280-10, Segment Reporting: Overall 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, 2021 and 2022, the Group had two reporting units, consisting of Cloud service and solutions and Cloud-based digital solution 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 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue recognition The Group applies the five-step model outlined in ASC 606, Revenue from Contracts with Customers 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 lifecycles. 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 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. Using the practical expedient in ASC 606, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one year or less. 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. 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 and upgrades, is recognized at a point in time only upon customer acceptance of the Solutions and upon delivery of the specified upgrade, respectively. 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 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. 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 for new products and services and enhancement of the Group’s service offerings. The Group expenses research and development costs as they are incurred. Advertising expenditures Advertising costs are expensed when incurred and are included in sales and marketing expenses in the consolidated statements of comprehensive loss. For the years ended December 31, 2020, 2021 and 2022, the advertising expenses were RMB15,348, RMB24,070 and RMB9,512 (US$1,379), respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government grants Government grants primarily consist of financial grants received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Government grants of non-operating nature and with no further conditions to be met are recorded as non-operating income in “Other (expense) income, net” when received. The remaining government grants are related to acquisition of assets. The grants are recorded as “deferred government grants” included in the accrued expenses and other liabilities line items in the consolidated balance sheets when received. Once the Group fulfills the conditions stipulated under the grant, the grant amount is deducted from the carrying amount of the asset with a corresponding reduction in the deferred government grant balance. Leases The Group determines if an arrangement is a lease or contains a lease at lease inception. For leases with lease and non-lease components, the Group has elected to apply the practical expedient to not separate the lease component and its associated non-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 we 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 liabilities” and “Other liabilities”, respectively, in the consolidated balance sheets. 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 income (loss) Comprehensive income (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 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes 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 mainland China. The amount of interest expense is computed by |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2022 | |
CONCENTRATION OF RISKS | |
CONCENTRATION OF RISKS | 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 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. 3. CONCENTRATION OF RISKS (Continued) Accounts receivable and contract assets are typically unsecured and are derived from revenues earned from reputable customers. As of December 31, 2021, the Group had two customers, with receivable balances exceeding 10% of the total accounts receivable balances. As of December 31, 2022, the Group had one customer accounted for more than 10% of the total accounts receivable balances. As of December 31, 2021, the Group had one customer, with a contract asset balance exceeding 10% of the total contract assets balances. As of December 31, 2022, the Group 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 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; and 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 the mainland China. Revenue from three customers accounted for 10%, 28% and 15%, respectively, of total revenues during the year ended December 31, 2020. Revenue from two customers accounted for 22% and 13%, respectively, of total revenues during the year ended December 31, 2021. Revenue from two customers accounted for 20% and 11%, respectively, of total revenues during the year ended December 31, 2022. 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 mainland China 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 mainland China 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 mainland China 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 due to 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 was appreciation of approximately 6.3% and 2.3% during the years ended December 31, 2020 and 2021, and depreciation of approximately 8.2% during the year ended December 31, 2022, respectively. It is difficult to predict how market forces or mainland China or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. 3. CONCENTRATION OF RISKS (Continued) 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. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2022 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | 4. BUSINESS COMBINATION Acquisition of Shenzhen Yunfan In March 2021, the Group completed the acquisition of 100% equity interest in Shenzhen Yunfan Acceleration Technology Co., Ltd. and its subsidiary (collectively, “Shenzhen Yunfan”). Shenzhen Yunfan 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 the Group’s expertise in public cloud services. The results of Shenzhen Yunfan have been included in the Group’s consolidated financial statements since April 2021. The total cash purchase price consideration was RMB126,400 (US$19,835). The Group recognized RMB586 (US$92) of net assets acquired excluding intangible assets, RMB77,000 (US$12,083) of intangible assets which comprised of technology, trademark and domain name, and RMB48,814 (US$7,660) of goodwill resulted from the acquisition. Goodwill recognized represents the expected synergies from integrating Shenzhen Yunfan with the Group’s existing cloud business and is not deductible for tax purposes. Acquisition of Beijing Yunshu In April 2021, the Group completed the acquisition of 86.21% equity interest in Beijing Yunshu, which the Group expected to enhance the Group’s public cloud services. The total cash purchase price was RMB7,034 (US$1,104) contingent consideration. The results of Beijing Yunshu’s operations have been included in the Group’s consolidated financial statements since April 2021 until Beijing Yunshu was deconsolidated in February 2022. Acquisition of Camelot In September 2021, the Group completed the acquisition of 100% equity interests in Camelot Employee Scheme INC. (“CES”), which legally held 79.53% equity interests in Camelot Technology and its subsidiaries (collectively referred to as “Camelot”). Camelot is mainly engaged in enterprise digital solutions and enterprise digital services, and the acquisition is expected to further develop the Group’s enterprise cloud business. The results of Camelot have been included in the consolidated financial statements of the Group since September 2021. The total purchase consideration was RMB5,290,553, which consisted of a cash consideration of RMB751,974 and an equity consideration of RMB4,538,579. Goodwill recognized represents the expected synergies from integrating Camelot with the Group’s existing enterprise cloud business and is not tax deductible. 4. BUSINESS COMBINATION (Continued) During the second quarter of 2022, the Group completed the allocation of the purchase price to the individual assets acquired and liabilities assumed. The table below summaries the final determination of the estimated fair values of the assets acquired and liabilities assumed from Camelot as of the acquisition date: Camelot RMB US$ Total fair value of purchase consideration 5,290,553 767,058 Less: Cash and cash equivalents 618,439 89,665 Restricted cash 1,126 163 Accounts receivable and other assets 940,511 136,361 Property and equipment, net 13,792 2,000 Intangible assets: Customer relationship 620,100 89,906 Trademarks 474,000 68,724 Copyrights 34,100 4,944 Deferred tax assets 54,419 7,890 Deferred tax liabilities (268,490) (38,927) Accounts payable and other liabilities (871,903) (126,415) Non-controlling interests (882,451) (127,943) Goodwill 4,556,910 660,690 The valuations used in the purchase price allocation for the acquisitions were determined by the Group with the assistance of independent third-party valuation firms using the income approach (a Level 3 measurement). Significant assumptions used in the valuation of intangible assets included projected revenue growth rates, operating margin, customer attrition rates, royalty rates and discount rate. Non-controlling interests at the acquisition date was measured by applying the equity percentage held by non-controlling shareholders and a discount for lack of control premium to the fair value of the acquired business of Camelot. Actual and Pro-forma Impact from the acquisition of Camelot The revenue and net loss from the acquisition of Camelot included in the Group’s consolidated statements of comprehensive loss for the year ended December 31, 2021 are RMB822,850 and RMB7,892, respectively. The net loss includes amortization expense relating to intangible assets recognized upon acquisition and other acquisition date fair value measures. The supplemental pro-forma information is based on the assumption that the acquisition of Camelot had occurred on January 1, 2020, after giving effect to certain adjustments including amortization expenses of intangible assets and other acquisition date fair value measure, which in aggregate amounted to RMB150,122 and RMB143,409 for the years ended December 31, 2020 and 2021, respectively. The pro-forma consolidated revenue was RMB8,253,329 and RMB10,349,504, and the pro-forma net loss was RMB1,003,136 and RMB1,616,748 for the years ended December 31, 2020 and 2021, respectively. The pro-forma basic and diluted loss per share and for The actual results of operation after the acquisition date and pro forma results of operations for the acquisitions of Shenzhen Yunfan and Beijing Yunshu have not been presented because the effects were not material. |
REVENUES, OTHER GAIN (LOSS), NE
REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET | 12 Months Ended |
Dec. 31, 2022 | |
REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET | |
REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET | 5. REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET The following table presents the Group’s revenues from contracts with customers disaggregated by material revenue category: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Public cloud services recognized over time 5,166,851 6,159,085 5,360,282 777,168 Enterprise cloud services: Recognized at a point in time 1,368,544 2,159,869 711,466 103,153 Recognized over time 4,145 737,948 2,105,510 305,270 1,372,689 2,897,817 2,816,976 408,423 Others: Recognized at a point in time 36,611 1,208 — — Recognized over time 1,156 2,674 2,849 413 37,767 3,882 2,849 413 6,577,307 9,060,784 8,180,107 1,186,004 The transaction prices allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at December 31, 2022 are related to enterprise cloud services and others, which are as follows: RMB US$ Within one year 52,798 7,655 More than one year 41,022 5,948 Total 93,820 13,603 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 2020 2021 2022 2022 RMB RMB RMB US$ Revenue recognized from amounts included in contract liabilities at the beginning of the period 37,550 112,221 192,428 27,899 5. REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET (Continued) The following table presents the Group’s other gain (loss), net: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Gross unrealized gain on equity investments held 14,301 82,492 22,452 3,255 Gross unrealized loss (including impairment) on equity investments held — — (37,623) (5,455) Net realized gain (loss) on equity investments sold — 10,363 (123) (18) Changes in fair value of purchase consideration in a business acquisition — (9,249) (28,516) (4,134) 14,301 83,606 (43,810) (6,352) The following table presents the Group’s other (expense) income, net: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Government grants* 5,869 100,759 56,867 8,245 Income from ADS Reimbursement (Note 12) 5,219 9,967 10,386 1,506 Value added tax transferred out (20,904) (23,721) (32,766) (4,751) Gain on disposal of property and equipment 2,242 7,107 156 23 Others (3,236) 935 (11,636) (1,687) (10,810) 95,047 23,007 3,336 * Government grants primarily included government subsidies for rental expenses and interests paid for bank loans, and deductions or refund of other taxes. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | 6. ACCOUNTS RECEIVABLE, NET As at December 31 2021 2022 2022 RMB RMB US$ Accounts receivable 3,603,240 2,450,392 355,274 Allowance for credit losses (32,265) (47,962) (6,954) Accounts receivable, net 3,570,975 2,402,430 348,320 6. ACCOUNTS RECEIVABLE, NET (Continued) The movements of the allowance for credit losses were as follows: As at December 31 2020 2021 2022 2022 RMB RMB RMB US$ Balance at beginning of the year 22,894 15,770 32,265 4,678 Adoption of ASC 326 (Note 2) — 5,684 — — Provision for expected credit losses 44,695 121,731 323,848 46,954 Write-offs charged against the allowance* (44,096) (101,202) (273,286) (39,623) Recoveries during the year (7,723) (9,718) (34,865) (5,055) Balance at end of the year 15,770 32,265 47,962 6,954 * The increase in write-offs of accounts receivable in 2022 is primarily due to the deterioration of customer business conditions impacted by COVID-19. |
PREPAYMENTS AND OTHER ASSETS
PREPAYMENTS AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER ASSETS | |
PREPAYMENTS AND OTHER ASSETS | 7. PREPAYMENTS AND OTHER ASSETS As at December 31 2021 2022 2022 RMB RMB US$ Current portion: Prepayments to suppliers 162,528 194,796 28,243 Contract costs* 145,628 133,084 19,295 Contract assets, net** 550,068 488,226 70,786 VAT prepayments 619,391 678,847 98,424 Interest receivable 21,463 21,955 3,183 Individual income tax receivable*** (Note 12) 48,949 3,742 543 Others 138,994 91,372 13,247 1,687,021 1,612,022 233,721 Non-current portion: Prepayments for electronic equipment 25,388 19,211 2,785 Others 3,678 2,052 298 29,066 21,263 3,083 * 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. ** 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 decrease in contract assets in 2022 reflects the net impact of billed revenues in excess of revenue recognized during the period. The allowance for credit losses on contract assets were RMB1,591 and RMB21,453 (US$3,110) as of December 31, 2021 and 2022, respectively. The amounts charged to expenses for credit losses on contract assets were RMB2,100 and RMB19,862 (US$2,880), and write-offs charged against the allowance were RMB509 and RMB nil (US$ nil), respectively, for the years ended December 31, 2021 and 2022, respectively. *** Represents amounts due from certain employees related to their individual income taxes (“IIT”) arising from exercise and vesting of share-based awards. Except disclosed separately, the expected credit loss rate and the loss allowance for the remaining financial assets included in prepayments and other assets were immaterial as of December 31, 2021 and December 31, 2022. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET As at December 31 2021 2022 2022 RMB RMB US$ Electronic equipment 5,123,149 5,421,548 786,051 Office equipment and fixtures 15,462 15,376 2,229 Data center machinery and equipment 144,328 319,652 46,345 Building 15,768 161,428 23,405 Construction in progress 147,817 3,459 501 5,446,524 5,921,463 858,531 Less: accumulated depreciation (3,082,421) (3,788,469) (549,276) Property and equipment, net 2,364,103 2,132,994 309,255 Depreciation expense for the years ended December 31, 2020, 2021 and 2022 was RMB750,375, RMB783,305 and RMB983,509 (US$142,595), respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET As at December 31 2021 2022 2022 RMB RMB US$ Customer relationships 620,100 620,500 89,964 Patents and technologies 67,900 60,900 8,830 Trademarks and domain names 497,098 497,939 72,194 Software and copyrights 71,752 88,502 12,832 Others 3,637 3,707 537 1,260,487 1,271,548 184,357 Less: accumulated amortization Customer relationships (32,637) (130,701) (18,950) Patents and technologies (8,138) (17,763) (2,575) Trademarks and domain names (20,722) (70,494) (10,221) Software and copyrights (26,692) (41,286) (5,986) Others (2,531) (3,284) (476) (90,720) (263,528) (38,208) Intangible assets, net 1,169,767 1,008,020 146,149 Amortization expense of intangible assets for the years ended December 31, 2020, 2021 and 2022 was RMB7,663, RMB72,299 and RMB173,915 (US$25,216), respectively. As of December 31, 2022, estimated amortization expense of the existing intangible assets for each of the next five years and thereafter is as follows: RMB US$ 2023 177,022 25,666 2024 172,096 24,952 2025 166,308 24,112 2026 162,686 23,587 2027 and thereafter 329,908 47,832 Total 1,008,020 146,149 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL | |
GOODWILL | 10. GOODWILL The Group’s goodwill was recognized from the business acquisitions in 2021. The changes in the carrying amount of goodwill were as follows: Cloud-based Cloud service digital solutions and solutions and services Total RMB RMB RMB Balance as of December 31, 2021 3,669,031 956,084 4,625,115 Disposal of a subsidiary (15,268) — (15,268) Adjustments to fair values of preliminary purchase price allocation (3,259) (864) (4,123) Balance as of December 31, 2022 3,650,504 955,220 4,605,724 Balance as of December 31, 2022, in US$ 529,273 138,494 667,767 As of December 31, 2021, the Group performed a qualitative assessment for goodwill allocated to the Cloud service and solutions and the Cloud-based digital solutions and services reporting units, and concluded that it is not more-likely-than-not that the fair value of the reporting units is less than their carrying amount. As of December 31, 2022, the Group performed a qualitative assessment for goodwill allocated to the Cloud-based digital solutions and services reporting unit, and concluded that it is not more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. The Group elected to bypass the qualitative assessment and proceed directly to perform quantitative assessment for the goodwill allocated to Cloud service and solutions reporting unit due to industry and market considerations, and overall financial performance of the reporting unit. The fair value of this reporting unit has been determined using the income approach. Significant assumptions used included projected revenue growth rates, IDC costs, terminal growth rate, and discount rate. As of December 31, 2022, as the fair value of the Cloud service and solutions reporting unit exceeded its carrying amount, no impairment loss was recognized. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
LEASES | 11. LEASES The Group’s operating leases mainly related to office space and buildings, and its finance leases are related to data center machinery and equipment. The finance leases include a bargain purchase option, 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 2020 2021 2022 2022 RMB RMB RMB US$ Operating lease costs 52,890 52,648 72,244 10,474 Short-term lease costs 3,036 11,317 15,493 2,246 Finance lease costs: Depreciation of finance lease assets — — 9,204 1,334 Interest on finance lease liabilities — — 5,491 796 Variable lease payments — — 7,237 1,050 Total finance lease costs — — 21,932 3,180 Other information related to leases where the Group is the lessee is as follows: As at December 31 2020 2021 2022 Weighted-average remaining lease term: Operating leases 9.7 years 8.3 years 7.7 years Finance leases — — 9.3 years Weighted-average discount rate: Operating leases 6.36 % 6.18 % 5.88 % Finance leases — — 5.90 % Cash paid for amounts included in the measurement of lease liabilities: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Operating cash payments for operating leases 60,273 35,214 47,385 6,870 11. LEASES (Continued) Lease assets obtained in exchange for lease obligations: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Operating leases 195,890 6,915 47,288 6,856 Finance leases — — 175,324 25,420 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, 2022 were as below: Operating lease Finance lease RMB US$ RMB US$ 2023 139,681 20,252 — — 2024 54,613 7,918 20,485 2,970 2025 32,530 4,716 30,728 4,455 2026 13,067 1,895 30,728 4,455 2027 and thereafter 62,532 9,066 163,881 23,761 Total future lease payments 302,423 43,847 245,822 35,641 Less: imputed interest (42,641) (6,182) (65,007) (9,425) Total lease liability balance 259,782 37,665 180,815 26,216 |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 12. ACCRUED EXPENSES AND OTHER LIABILITIES As at December 31 2021 2022 2022 RMB RMB US$ Current portion: Customer advances* 378,957 411,467 59,657 Salary and welfare payable 600,775 671,124 97,304 Purchase of property and equipment 759,391 120,530 17,475 Accrued expenses 116,021 188,533 27,335 Other tax and surcharges payable 91,287 110,242 15,984 Deferred government grants** 8,488 17,257 2,502 Purchase consideration payable*** 148,038 1,208,985 175,286 Individual income tax payable**** (Note 7) 48,949 3,742 543 Others***** 71,934 98,946 14,342 2,223,840 2,830,826 410,428 Non-current portion: Deferred government grants** 6,975 104,156 15,101 Purchase consideration payable*** 1,180,470 — — Finance lease liability — 180,815 26,216 Unrecognized tax benefit 15,954 40,539 5,878 Others***** 29,278 45,021 6,527 1,232,677 370,531 53,722 * The amount represents contract liabilities for the rendering of services. The increase in customer advances as of December 31, 2022 is a result of the increase in consideration received from the Group’s customers. ** The amount primarily represents government subsidies for constructions of a data center in mainland China. *** The amount represents the remaining purchase consideration to acquire Camelot. As of December 31, 2022, RMB257,777 (US$37,374) and RMB951,208 (US$137,912) will be settled by cash and ordinary shares of the Company by June 30, 2023, respectively. **** Represents IIT payable to the tax bureau on behalf of certain employees related to their exercise and vesting of share-based awards. ***** In July 2020, the Company received a reimbursement of US$7,469 (equivalent to RMB47,597) from the depository for the establishment and maintenance of the ADS program (“ADS Reimbursement”). As of December 31, 2021 and 2022, RMB9,836 and RMB10,762 (US$1,560) were included in the current portion, and RMB22,989 and RMB14,350 (US$2,081) were included in the non-current portion of accrued expenses and other liabilities, respectively. The ADS Reimbursement will be released to the consolidated statements of comprehensive loss in equal amounts over the ADS program term. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
LOANS | 13. LOANS Bank loans As of December 31, 2021 and 2022, the Group had a total of RMB1,348,166 and RMB909,500 of short-term bank loans, respectively. Short-term bank loans are unsecured, and the weighted average interest rate as of December 31, 2021 and 2022 was 4.59% and 4.16%, respectively. There are no commitment fees and conditions under which lines may be withdrawn associated with the Group’s unused facilities. Related party loans The carrying amounts of the related party loans included in “Amounts due to related parties” on the consolidated balance sheets were as below: As at December 31 2021 2022 2022 RMB RMB US$ Current Kingsoft Group* 500,000 — — Xiaomi Group** 236,206 340,129 49,314 736,206 340,129 49,314 Non-current: Xiaomi Group** 472,882 413,464 59,947 472,882 413,464 59,947 1,209,088 753,593 109,261 * During 2021, the Group entered into an unsecured loan agreement with Kingsoft Group for an aggregate principal amount of RMB500,000 (US$78,461) with a fixed annual interest rate of 4.65%. The Group has fully repaid the loan in November 2022. ** During 2021 and 2022, the Group entered into several loan agreements with fixed annual interest rates of 4.36% and 3.98% with Xiaomi Group which are secured by the Group’s electronic equipment, respectively. The carrying amount of the electronic equipment pledged was RMB702,424 and RMB585,005 (US$84,818) as of December 31, 2021, and 2022, respectively. As of December 31, 2022, the loans will be repaid according to the following schedule: RMB US$ 2023 1,259,065 182,547 2024 322,758 46,796 2025 81,500 11,816 2026 61,125 8,862 1,724,448 250,021 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2022 | |
TAXATION | |
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. China The Group’s mainland China entities are subject to the statutory income tax rate of 25%, in accordance with the Enterprise Income Tax law (the “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 mainland China 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. Loss before income taxes consists of: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Mainland China (1,095,015) (1,646,607) (2,475,677) (358,939) Non-mainland China 147,721 70,592 (188,238) (27,292) (947,294) (1,576,015) (2,663,915) (386,231) The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive loss are as follows: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Current income tax expense 15,081 27,593 59,668 8,651 Deferred income tax benefit (177) (11,852) (35,195) (5,103) 14,904 15,741 24,473 3,548 14. TAXATION (Continued) The reconciliation of income tax expense computed using the mainland China statutory tax rate to the actual income tax expense is as follows: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Loss before income tax (947,294) (1,576,015) (2,663,915) (386,231) Income tax computed at the mainland China statutory tax rate of 25% (236,824) (394,004) (665,978) (96,558) Effect of tax holiday and preferential tax rates (44,121) 7,083 52,651 7,634 Effect of different tax rates in different jurisdictions 10,580 (1,681) 58,266 8,448 Other non-taxable income (35,454) (24,999) (28,993) (4,204) Non-deductible expenses 14,060 36,719 5,727 830 Share-based compensation costs 82,528 108,588 90,015 13,051 Research and development super deduction (113,388) (146,639) (64,718) (9,383) Withholding tax and others 11,581 9,552 10,785 1,564 Change in valuation allowance 399,756 434,056 525,169 76,142 True-up adjustments in respect of prior year’s annual tax filing (83,342) (3,474) (15,195) (2,203) Expiration of tax loss carryforward — — 124,555 18,059 Tax rate change on deferred items 9,528 (9,460) (67,811) (9,832) Income tax expense 14,904 15,741 24,473 3,548 14. TAXATION (Continued) Deferred tax The significant components of the Group’s deferred tax assets and liabilities are as follows: As at December 31 2021 2022 2022 RMB RMB US$ Deferred tax assets: Tax loss carried forward 1,841,192 2,318,161 336,102 Accrued expenses 235,737 84,428 12,241 Depreciation 7,082 17,073 2,475 Allowance for credit losses 53,436 85,666 12,420 Government grant 4,266 5,779 838 Operating lease liabilities 63,781 57,828 8,384 Accrued interest 170,337 197,767 28,674 Finance lease liabilities — 47,505 6,888 Others 2,737 8,241 1,194 Less: valuation allowance (1,881,873) (2,415,627) (350,233) 496,695 406,821 58,983 Deferred tax liabilities: Operating lease right-of-use assets 57,300 46,367 6,723 One-time deduction for fixed asset purchases 337,564 231,532 33,569 Long-lived assets arising from acquisition 277,267 238,672 34,603 Finance lease right-of-use assets — 41,530 6,021 Others 22,655 15,772 2,287 694,786 573,873 83,203 Net deferred tax liabilities : 198,091 167,052 24,220 14. TAXATION (Continued) 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, 2021 and 2022, the Group’s total deferred tax assets before valuation allowances were RMB2,378,568 and RMB2,822,448 (US$409,216), respectively. As of December 31, 2021 and 2022, the Group recorded valuation allowances of RMB1,881,873 and RMB2,415,627 (US$350,233), respectively, on its deferred tax assets that are not more-likely-than-not to be realized. As of December 31, 2022, the Group had net losses of approximately RMB9,490,802 (US$1,376,037) mainly deriving from entities in the mainland China Unrecognized tax benefits As of December 31, 2021 and 2022, the Group had unrecognized tax benefits of RMB59,049 and RMB58,718 (US$8,513), of which RMB43,095 and RMB18,179 (US$2,635), respectively, were presented as a reduction to the deferred tax assets related to tax losses carryforward, and the remaining amounts of RMB15,954 and RMB40,539 (US$5,878), 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, 2021 and 2022, there were RMB15,954 and RMB40,539 (US$5,878) of unrecognized tax benefits that if recognized would impact the annual effective tax rate, respectively. A reconciliation of the beginning and ending balances of unrecognized tax benefit is as follows: As at December 31 2021 2022 2022 RMB RMB US$ Balance at beginning of the year 12,613 59,049 8,561 Additions from the business acquisitions 19,551 — — Additions based on tax position related to current year 26,885 15,894 2,304 Additions based on tax positions related to prior year — 22,462 3,257 Reductions for tax positions related to prior years — (38,687) (5,609) Balance at end of the year 59,049 58,718 8,513 For the periods presented, the Group did not record any interest related to unrecognized tax benefits. In general, the tax authorities have three to five years to conduct examinations of the tax filings of the Group’s subsidiaries located in mainland China. Accordingly, the subsidiaries’ tax years of 2017 through 2022 remain open to examination by the respective tax authorities. There are no ongoing examinations by tax authorities for any of the Group’s subsidiaries. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED PAYMENTS | |
SHARE-BASED PAYMENTS | 15. 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 two to five years. 2013 Share Option Scheme A summary of the activity for the options granted under the 2013 Share Option Scheme is stated below: Weighted- Weighted- Weighted- average average Aggregate Number of average exercise grant-date remaining intrinsic options price fair value contractual term value US$ US$ Years US$ Outstanding, December 31, 2021 61,760,202 0.07 0.87 6.61 60,339 Granted 8,667,040 0.07 0.36 — — Forfeited (11,272,993) 0.07 1.17 — — Exercised (20,788,141) 0.07 0.52 — — Outstanding, December 31, 2022 38,366,108 0.07 0.86 6.01 6,972 Vested and expected to vest at December 31, 2022 38,366,108 0.07 0.86 6.01 6,972 Exercisable at December 31, 2022 25,646,851 0.07 0.58 5.41 4,669 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, 2021 and 2022 and the option’s respective exercise price. Total intrinsic value of options exercised for the years ended December 31, 2020, 2021 and 2022 were RMB906,120, RMB79,224 and RMB26,299 (US$3,813), respectively. The total weighted-average grant-date fair value of the share-based awards granted during the years ended December 31, 2020, 2021 and 2022 were US$1.16, US$2.80 and US$0.36 per option, respectively. The aggregate fair value of the share-based awards vested during the years ended December 31, 2020, 2021 and 2022 were RMB44,135, RMB51,892 and RMB84,098 (US$12,193), respectively. As of December 31, 2022, there were RMB39,969 (US$5,795) of total unrecognized employee share-based compensation expenses, related to unvested share-based awards, which are expected to be recognized over a weighted-average period of 1.13 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future. 15. SHARE-BASED PAYMENTS (Continued) 2013 Share Award Scheme A summary of the activity for the restricted shares issued under the 2013 Share Award Scheme is stated below: Number of Weighted-average shares grant-date fair value US$ Outstanding, December 31, 2021 57,987,266 1.32 Granted 17,805,065 1.29 Cancelled (9,452,885) 1.73 Vested (17,310,087) 1.05 Forfeited (18,880,457) 1.37 Outstanding, December 31, 2022 30,148,902 1.33 Expected to vest at December 31, 2022 30,148,902 1.33 The total weighted-average grant-date fair value of the share-based awards granted during the years ended December 31, 2020, 2021 and 2022 were US$0.78, US$2.04 and US$1.29 per share, respectively. The aggregate fair value of the share-based awards vested during the years ended December 31, 2020, 2021 and 2022 were RMB91,683, RMB90,121 and RMB119,156 (US$17,276), respectively. As of December 31, 2022, there were RMB116,666 (US$16,915) of total unrecognized share-based compensation expenses related to unvested share-based awards which are expected to be recognized over a weighted-average period of 1.64 years. The fair value of the restricted shares is the fair value of the Company’s ordinary shares at their respective grant dates. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future. A summary of the activity for the options granted under the 2013 Share Award Scheme is stated below: Weighted- Weighted- Weighted- average average Aggregate Number of average exercise grant-date remaining intrinsic options price fair value contractual term value US$ US$ Years US$ Outstanding, December 31, 2021 27,868,420 0.83 0.31 7.99 6,169 Forfeited (10,800,320) 0.87 0.29 — — Outstanding, December 31, 2022 17,068,100 0.87 0.31 6.97 — Vested and expected to vest at December 31, 2022 17,068,100 0.87 0.31 6.97 — Exercisable at December 31, 2022 9,136,740 0.87 0.31 6.95 — 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, 2021 and 2022 and the option’s respective exercise price. Total intrinsic value of options exercised for the years ended December 31, 2020 and 2021 were RMB3,230 and RMB1,561, respectively. No option was exercised during the year ended December 31, 2022. 15. SHARE-BASED PAYMENTS (Continued) 2013 Share Award Scheme (Continued) The total weighted-average grant-date fair value of the share-based awards granted during the years ended December 31, 2020 and 2021 were US$0.31 and US$0.31 per option, respectively. There were no share-based awards granted under 2013 Share Aware Scheme during the year ended December 31, 2022. The aggregate fair value of the share-based awards vested during the years ended December 31, 2020, 2021 and 2022 were RMB15,981, RMB16,192 and RMB11,462 (US$1,662), respectively. As of December 31, 2022, there were RMB5,035 (US$730) of total unrecognized employee share-based compensation expenses, related to unvested share-based awards, which are expected to be recognized over a weighted-average period of 1.35 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future. 2021 Share Award Scheme In November 2021, the Company adopted the 2021 Share Award Scheme. A summary of the activity for the restricted shares with option features issued under the 2021 Share Award Scheme is stated below: Weighted- average Weighted- Weighted- grant- average Aggregate Number of average exercise date remaining intrinsic options price fair value contractual term value US$ US$ Years US$ Outstanding, December 31, 2021 — — — — — Granted 129,509,841 0.01 0.33 — — Exercised (3,131,947) 0.01 0.40 — — Forfeited (22,374,413) 0.01 0.38 — — Outstanding, December 31, 2022 104,003,481 0.01 0.32 9.44 25,786 Vested and expected to vest at December 31, 2022 104,003,481 0.01 0.32 9.44 25,786 Exercisable at December 31, 2022 30,927,052 0.00 0.25 9.86 7,858 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, 2022 and the exercise price of respective share-based awards. Total intrinsic value of the share-based awards exercised for the year ended December 31, 2022 was RMB5,297 (US$768). The total weighted-average grant date fair value of the share-based awards granted during the year ended December 31, 2022 was US$0.33 per share. The aggregate fair value of the share-based awards vested during the year ended December 31, 2022 was RMB18,371 (US$2,664). As of December 31, 2022, there were RMB108,162 (US$15,682) 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 2.16 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future. 15. SHARE-BASED PAYMENTS (Continued) Others In connection with the acquisition of Shenzhen Yunfan, the Company granted 11,684,432 restricted shares to certain employees that contain 1-3 years service vesting condition. As of December 31, 2021 and 2022, 2,278,360 and 6,981,396 of restricted shares were vested, respectively. As of December 31, 2022, there were RMB30,882 (US$4,477) of total unrecognized share-based compensation expenses related to these unvested share-based awards that will be recognized over 1 year. Fair value of share options The fair value of share options was determined using the binomial tree model, with the assistance from an independent third-party appraiser. The binomial model requires the input of highly subjective assumptions, including the expected share price volatility and the exercise multiple. For expected volatility, the Company has made reference to historical volatility of several comparable companies. The exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it has considered the statistics on exercise patterns of employees compiled by Huddart and Lang in Huddart, S., and M. Lang. 1996. “Employee Stock Option Exercises: An Empirical Analysis.” Journal of Accounting and Economics, vol. 21, no. 1(February):5-43, which are widely adopted by valuers as authoritative guidance on expected exercise multiples. For the employee exit rate, which represents the annual turnover rate of employees leaving services, the Group uses the historical employee exiting data to have an estimate of that input. The risk-free rate for the period within the contractual life of the options is based on the market yield of U.S. Treasury Bonds in effect at the time of grant. The assumptions used to estimate the fair value of the share options granted are as follows: For the year ended December 31 2020 2021 2022 Risk-free rate 0.66%-1.84% 1.13%-1.62% 1.75%-2.93% Expected volatility range 37.3%-37.8% 36.28%-38.03% 35.62%-46.22% Exercise multiple 2.20-2.80 2.20-2.80 2.20-2.80 Fair market value per ordinary share as at valuation dates US$0.76-US$1.94 US$1.97-US$3.49 US$0.24-US$0.73 Share-based awards of Camelot Camelot subsidiary also has an equity incentive plan granting share-based awards that contain 3 year service vesting condition (the “Camelot Award”). The portion relating to the acquisition-date fair-value-based measure of the “Camelot Award” that was attributable to precombination service was recognized as non-controlling interest and the portion relating to any remaining postcombination service was recognized as share-based compensation expenses in the Group’s consolidated financial statements. The Group did not grant any share-based awards under the Camelot Award after its acquisition of Camelot. 15. SHARE-BASED PAYMENTS (Continued) The acquisition date fair value of each Camelot Award is estimated using the binomial tree option pricing model with the following assumptions: 2021 Risk-free rate 0.21 % Expected volatility range 50.56 % Exercise multiple 2.20 Fair market value per ordinary share as at valuation dates RMB23.00 In November 2022, the Company’s board of directors approved to replace all outstanding Camelot Awards with cash consideration of RMB43,981 and 27,500,715 share-based awards of the Company under the 2021 Share Award Scheme. The following table sets forth the amount of share-based compensation expense included in each of the relevant financial statement line items: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Cost of revenues 10,614 17,481 15,618 2,264 Selling and marketing expenses 62,270 72,594 68,562 9,940 General and administrative expenses 169,101 193,886 187,843 27,235 Research and development expenses 88,129 150,389 87,812 12,732 330,114 434,350 359,835 52,171 |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 16. 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 mainland China permit payments of dividends by the Group’s mainland China subsidiaries only out of its retained earnings, if any, as determined in accordance with accounting standards and regulations of mainland China. 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 mainland China 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. In accordance with the Regulations on Enterprises with Foreign Investment of China and its Articles of Association, the Company’s mainland China subsidiaries, being foreign-invested enterprises established in the mainland China, are required to provide certain statutory reserves, namely the general reserve fund, enterprise expansion fund and staff welfare and bonus fund, all of which are appropriated from net profit as reported in its mainland China statutory accounts. The Company’s mainland China subsidiaries are required to allocate at least 10% of its annual after-tax profit to the general reserve fund until such fund has reached 50% of its registered capital based on the enterprise’s mainland China statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the Board of Directors of the mainland China subsidiaries. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances, or cash dividends. 16. RESTRICTED NET ASSETS (Continued) In accordance with the mainland China Company Laws, the Company’s mainland China subsidiaries and the VIEs must make appropriations from their annual after-tax profits as reported in their mainland China statutory accounts to non-distributable reserve funds, namely statutory surplus fund, statutory public welfare fund and discretionary surplus fund. The VIEs are required to allocate at least 10% of their after-tax profits to the statutory surplus fund until such fund has reached 50% of their respective registered capital. Appropriation to discretionary surplus is made at the discretion of the Board of Directors of the VIEs. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances, or cash dividends. Under laws and regulations of mainland China, there are restrictions on the Company’s mainland China 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 mainland China subsidiaries and the net assets of the VIEs and VIEs’ subsidiaries in which the Company has no legal ownership, totaling RMB4,055,608 (US$588,008) as of December 31 2022; therefore, in accordance with Rules 504 and 4.08(e)(3) of Regulation S-X, the condensed parent company only financial statements as of December 31, 2021 and 2022 and for each of the three years in the period ended December 31, 2022 are disclosed in Note 23. Furthermore, cash transfers from the Company’s mainland China subsidiaries to its subsidiaries outside of China are subject to mainland China government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the mainland China subsidiaries and VIEs to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
LOSS PER SHARE | |
LOSS PER SHARE | 17. LOSS PER SHARE Basic and diluted loss per share for each of the years presented are calculated as follows: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Numerator: Net loss attributable to Kingsoft Cloud Holdings Limited (962,259) (1,588,712) (2,658,184) (385,400) Accretion to redemption value of redeemable convertible preferred shares (19,768) — — — Net loss attributable to ordinary shareholders - basic and diluted (982,027) (1,588,712) (2,658,184) (385,400) Denominator: Weighted average number of ordinary shares outstanding - basic and diluted 2,400,874,197 3,441,729,444 3,623,838,985 3,623,838,985 Basic and diluted loss per share (0.41) (0.46) (0.73) (0.11) For the year ended December 31, 2020, the effects of all outstanding convertible preferred shares and redeemable convertible preferred shares, options, and awarded shares were excluded from the computation of diluted loss per share for the periods presented as their effects would be anti-dilutive. For the years ended December 31, 2021 and 2022, the effects of all options and awarded shares were excluded from the computation of diluted loss per share for the periods presented as their effects would be anti-dilutive. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 18. SHAREHOLDERS’ EQUITY In February 2020, the Company entered into an arrangement to allow the senior executives to settle its due on demand interest bearing loans (“Settlement Arrangement”). Under the terms of the Settlement Arrangement, the Company will repurchase ordinary shares already issued to the executives for a cashless settlement of the outstanding loan amount including interest and related IIT. The number of ordinary shares to be repurchased is calculated by dividing the outstanding amount on settlement date by US$0.70 per share, which is below the estimated fair value per ordinary share of US$0.76 determined by the Company with the assistance of an independent appraiser. Therefore, there is no compensation expense to be recorded as a result of this repurchase. On February 29, 2020, the Company repurchased 5,475,254 ordinary shares at nil consideration from these senior executives in lieu of full settlement of the outstanding amount. On April 7, 2020, the Company’s shareholders and Board of Directors approved to increase the Company’s authorized share capital to US$4,000 divided into 4,000,000,000 shares with a par value of US$0.001 each, consisting of (i) 2,282,750,429 ordinary shares, (ii) 458,116,000 Series A Preferred Shares, (iii) 153,603,600 Series B Preferred Shares, (iv) 185,665,192 Series C Preferred Shares, (v) 842,738,782 Series D Preferred Shares, and (vi) 77,125,997 Series D+ Preferred Shares, respectively, which will become effective immediately prior to the completion of the Company’s IPO. All of the Preferred Shares issued and outstanding immediately prior to the completion of the IPO will be converted (by way of re-designation and re-classification) into ordinary shares on a one for one basis. Each ordinary share entitles the holder thereof to one vote per share on all matters subject to vote at general meetings of the Company. On May 8, 2020, the Company completed its IPO on the NASDAQ Global Select Market. 30,000,000 ADS representing 450,000,000 ordinary shares were sold at $17.00 per ADS, or $1.13 per share. Additionally, the underwriters exercised their options to purchase an additional 67,500,000 ordinary shares in the form of 4,500,000 ADSs. Net proceeds from the IPO including underwriter options after deducting underwriting discount and offering expenses were approximately RMB3,875,394. The deferred IPO costs were recorded as a reduction of the proceeds received from the IPO in the shareholders’ (deficit) equity. Upon completion of the IPO, all outstanding Preferred Shares were converted on a one-for-one basis into 1,717,249,571 ordinary shares. On September 23, 2020, the Company completed its follow-on offering on the NASDAQ Global Select Market. 8,000,000 ADS representing 120,000,000 ordinary shares were sold at $31.00 per ADS, or $2.07 per share. Additionally, the underwriters exercised their options to purchase an additional 18,750,000 ordinary shares in the form of 1,250,000 ADSs. Net proceeds from the follow-on offering including underwriter options after deducting underwriting discount and offering expenses were approximately RMB1,881,233. The offering costs were recorded as a reduction of the proceeds received from the follow-on offering in the shareholders’ (deficit) equity. On September 3, 2021, the Company issued 247,475,446 ordinary shares in connection with the acquisition of Camelot. On December 17, 2021, the Company’s shareholders and Board of Directors approved to increase the Company’s authorized share capital to US$40,000 divided into 40,000,000,000 ordinary shares with a par value of US$0.001 each. On March 31, 2022, the Company’s shareholders and Board of Directors authorized a share repurchase program (“2022 Share Repurchase Program”) under which the Company may repurchase up to US$100,000 of its ordinary shares in the form of ADSs during a twelve-month period. The share repurchases may be made in accordance with applicable laws and regulations through open market transactions, privately negotiated transactions or other legally permissible means as determined by the management. Under the 2022 Share Repurchase Program, the Company has repurchased 183,901,110 ordinary shares for the year ended December 31, 2022. On December 30, 2022, the Company completed its listing by way of introduction on the Main Board of The Stock Exchange of Hong Kong Limited (the “HK Stock Exchange”). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS a) Related Parties Name of related parties Relationship with the Group Kingsoft Corporation Limited and its subsidiaries (other than all of entities of the Group) (“Kingsoft Group”) Principal shareholder of the Company Xiaomi Corporation and its subsidiaries (“Xiaomi Group”) Entity controlled by a director of the Company b) The Group had the following related party transactions: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Revenues: Public cloud services provided to Xiaomi Group 655,165 749,597 804,647 116,663 Public cloud services provided to Kingsoft Group 119,011 156,158 187,907 27,244 Public cloud services provided to Cheetah Group*** 3,111 — — — Public cloud services provided to Others — — 50,629 7,341 Enterprise cloud services provided to Xiaomi Group — 22,857 74,590 10,815 Enterprise cloud services provided to Kingsoft Group — 838 10,892 1,579 Other services provided to Xiaomi Group 82 — — — Other services provided to Kingsoft Group — 74 — — 777,369 929,524 1,128,665 163,642 Purchase of devices from Xiaomi Group 2,177 1,349 144 21 Interest expense on loans due to Xiaomi Group — 16,633 48,707 7,062 Interest expense on a loan due to Kingsoft Group — 4,088 18,364 2,663 Rental of building from Xiaomi Group* 47,900 56,452 48,766 7,070 Rental of office space, and administrative services from Kingsoft Group** 13,801 13,321 13,931 2,020 63,878 91,843 129,912 18,836 * The Group entered into agreements to lease building and office space from Xiaomi Group. As of December 31, 2021 and 2022, the related operating lease right-of-use assets amounted to RMB210,551 and RMB167,697 (US$24,314) and operating lease liabilities amounted to RMB238,180 and RMB224,346 (US$32,527), respectively. ** The Group entered into agreements to lease building and office space from Kingsoft Group in 2022. As of December 31, 2022, the related operating lease right-of-use assets amounted to RMB2,625 (US$381) and operating lease liabilities amounted to RMB3,634 (US$527). *** Cheetah Group refers to Cheetah Mobile Inc. and its subsidiaries. Cheetah Group was no longer the Group's related party after May 8, 2020. 19. RELATED PARTY TRANSACTIONS (Continued) c) The Group had the following related party balances at the end of the year: As at December 31 2021 2022 2022 RMB RMB US$ Amounts due from related parties: Trade related: Xiaomi Group 175,170 200,577 29,081 Kingsoft Group 26,868 34,550 5,009 Others — 6,268 909 Non-trade related: Kingsoft Group 10,863 10,868 1,576 212,901 252,263 36,575 Amounts due to related parties: Trade related: Kingsoft Group 15,092 14,069 2,040 Xiaomi Group 55,853 44,245 6,415 Non-trade related: Kingsoft Group* 529,284 29,284 4,246 Xiaomi Group* 709,088 753,593 109,261 1,309,317 841,191 121,962 * All the balances with related parties except for the loans from Xiaomi Group were unsecured. All outstanding balances except for loans from Xiaomi Group are repayable on demand unless otherwise disclosed. The effect of adopting ASC 326 to due from related parties was immaterial. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Capital expenditure commitments The Group has commitments for the construction of a data center of RMB34,287 (US$4,971) at December 31, 2022, which are scheduled to be paid within one year. In October 2022, the Company 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 RMB456,000 (US$66,114), of which will be settled in five installments by the end of 2024. As of December 31, 2022, the transaction was not completed. 20. COMMITMENTS AND CONTINGENCIES (Continued) Other commitments On May 23, 2022 and June 9, 2022, the Group entered into Contingencies The Group is currently not involved in any legal or administrative proceedings that may have a material adverse impact on the Group’s business, financial position or results of operations. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 21. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) RMB Balance as of January 1, 2020 484,348 Foreign currency translation adjustments, net of tax of nil (552,788) Balance as of December 31, 2020 (68,440) Foreign currency translation adjustments, net of tax of nil (139,442) Balance as of December 31, 2021 (207,882) Foreign currency translation adjustments, net of tax of nil 660,956 Balance as of December 31, 2022 453,074 Balance as of December 31, 2022, in US$ 65,690 There have been no reclassifications out of accumulated other comprehensive income (loss) to net loss for the periods presented. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through the date of issuance of the consolidated financial statements and does not identify any events with material financial impact on the Company’s consolidated financial statements. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 23. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY Condensed Balance Sheets As at December 31 2021 2022 2022 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 69,393 169,743 24,610 Short-term investments 1,029,472 — — Prepayments and other assets 53,618 34,141 4,951 Amounts due from subsidiaries (other than WFOE)* 5,408,311 4,354,380 631,326 Amounts due from WFOE 100,000 100,000 14,499 Total current assets 6,660,794 4,658,264 675,386 Non-current assets: Investments in subsidiaries 5,328,424 5,518,634 800,127 Total non-current assets 5,328,424 5,518,634 800,127 Total assets 11,989,218 10,176,898 1,475,513 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other liabilities 182,075 1,309,490 189,858 Income tax payable 3,307 2,764 401 Amounts due to WFOE 4,840 5,287 767 Amounts due to VIEs and VIEs’ subsidiaries 6 43,987 6,377 Amounts due to related parties 829 — — Total current liabilities 191,057 1,361,528 197,403 Other liabilities 1,194,212 14,350 2,081 Total non-current liabilities 1,194,212 14,350 2,081 Total liabilities 1,385,269 1,375,878 199,484 Commitments and contingencies Shareholders’ equity: Ordinary shares (par value of US$0.001 per share; 40,000,000,000 and 40,000,000,000 shares authorized, 3,805,284,810 and 3,805,284,801 shares issued, 3,646,381,840 and 3,508,413,941 shares outstanding as of December 31, 2021 and 2022, respectively) 24,782 25,062 3,634 Treasury shares — (208,385) (30,213) Additional paid-in capital 18,245,801 18,648,205 2,703,736 Accumulated deficit (7,458,752) (10,116,936) (1,466,818) Accumulated other comprehensive (loss) income (207,882) 453,074 65,690 Total Kingsoft Cloud Holdings Limited shareholders’ equity 10,603,949 8,801,020 1,276,029 Total liabilities and shareholders’ equity 11,989,218 10,176,898 1,475,513 23. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Continued) Condensed Statements of Comprehensive Loss For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Operating expenses: General and administrative expenses (27,052) (40,913) (148,392) (21,515) Total operating expenses (27,052) (40,913) (148,392) (21,515) Operating loss Interest income 10,199 15,224 12,430 1,802 Foreign exchange gain (loss) 30,931 10,198 (39,426) (5,717) Other income, net 5,377 9,889 10,372 1,504 Other loss, net — — (37,764) (5,475) Share of losses of subsidiaries (171,421) (121,100) (264,260) (38,313) Contractual interests in VIEs and VIEs’ subsidiaries** (809,672) (1,461,042) (2,190,364) (317,573) Loss before income taxes (961,638) (1,587,744) (2,657,404) (385,287) Income tax expense (621) (968) (780) (113) Net loss (962,259) (1,588,712) (2,658,184) (385,400) Other comprehensive income (loss), net of tax of nil : Foreign currency translation adjustments (552,788) (139,442) 660,956 95,830 Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders (1,515,047) (1,728,154) (1,997,228) (289,570) Accretion to redemption value of redeemable convertible preferred shares (19,768) — — — Comprehensive loss attributable to ordinary shareholders (1,534,815) (1,728,154) (1,997,228) (289,570) * Majority of amounts due from the Company’s subsidiaries were ultimately provided to the VIEs and their subsidiaries by the Company’s subsidiaries. Except for the Company’s investments in Camelot, the carrying amounts of investments in subsidiaries and the VIEs were reduced to zero by the Company’s share of contractual interests in cumulative losses as of December 31, 2021, and 2022, and the carrying amounts of “amounts due from subsidiaries” were further adjusted. ** 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 2020 2021 2022 2022 RMB RMB RMB US$ Net cash (used in) generated from operating activities (6,203,310) 1,178,019 (40,310) (5,844) Net cash (used in) generated from investing activities (218,674) (1,179,393) 358,010 51,907 Net cash generated from (used in) financing activities 5,945,666 (815) (215,923) (31,306) Effect of exchange rate changes on cash and cash equivalents 3,969 3,570 (1,427) (208) Net (decrease) increase in cash and cash equivalents (472,349) 1,381 100,350 14,549 Cash and cash equivalents at beginning of the year 540,361 68,012 69,393 10,061 Cash and cash equivalents at end of the year 68,012 69,393 169,743 24,610 23. 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 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). “Statutory reserve funds” are separately presented on the consolidated balance sheet as of December 31, 2022 and the consolidated statement of changes in shareholders’ equity for the year ended December 31, 2022. Accordingly, prior year balances were reclassified to conform with current year presentation. |
Principles of consolidation | Principles of consolidation The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries, the VIEs, and their subsidiaries of the VIEs for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of 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 dates 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, contract assets and amounts due from related parties, measurement of operating and finance lease right-of-use assets and lease liabilities, impairment of long-lived assets, impairment of goodwill, useful lives of long-lived assets, realization of deferred tax assets, uncertain tax positions, share-based compensation expense, the purchase price allocation and fair value of non-controlling interests and contingent consideration with respect to business combinations, the fair value of equity investments and standalone selling prices of performance obligation of revenue contracts. 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. |
Foreign currency | 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$”). The functional currency of the Company’s subsidiaries and the VIEs and VIEs’ subsidiaries located in the mainland China is Renminbi (“RMB”). The functional currencies of the Company’s subsidiaries located in Japan and Hong Kong are Japanese Yen (“Yen”) and Hong Kong dollars (“HK$”), 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 (loss), a component of shareholders’ equity. |
Convenience translation | Convenience translation Amounts in U.S. dollars are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.8972 per US$1.00 on December 31, 2022 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Cash and cash equivalents | Cash and cash equivalents 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, 2021 and 2022, a majority of the Group’s cash and cash equivalents were held by financial institutions located in mainland China and Hong Kong. Deposits held in mainland China are subject to restrictions on foreign exchange and the ability to transfer cash outside of mainland China. In May 2015, a new Deposit Insurance System (“DIS”) managed by the People’s Bank of China (“PBOC”) was implemented by the Chinese government. Deposits in the licensed banks in mainland China 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$500. As an offshore holding company, the Company is permitted under laws and regulations of mainland China to provide funding from the proceeds of its of offshore fundraising activities to its mainland China 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 years ended December 31, 2020, 2021 and 2022, the VIEs and their subsidiaries transferred RMB24,869, RMB20,157 and RMB18,473 (US$2,678), respectively, to the Company’s WFOE as payment or prepayment of service fees under the Contractual Agreements. 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 periods presented. In addition, the Group has not generated sufficient distributable profits to pay dividends or fully settle amounts due to the Company. |
Restricted cash | Restricted cash As of December 31, 2021, a majority of the Group’s restricted cash was held by financial institutions located in mainland China and Hong Kong, and mainly represents cash reserved in escrow accounts for the remaining payments in relation to a business acquisition, cash secured for certain payables to suppliers and cash to guarantee the Group’s performance under certain revenue contracts. As of December 31, 2022, substantially all of the Group’s restricted cash was held by financial institutions located in mainland China, and mainly represents cash secured for certain payables to suppliers. |
Short-term investments | Short-term investments The Group’s short-term investments comprise primarily of cash deposits at fixed rates with original maturities of greater than three months, but less than 12 months. As of December 31, 2021 and 2022, all of the Group’s short-term investments were held by financial institutions located in mainland China and Hong Kong. |
Non-controlling interests | 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 income (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. |
Business combinations | Business combinations The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
Equity investments | Equity investments 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 for a cash consideration of RMB63,356 (US$9,186). The Group recorded RMB22,683 (US$3,289) of unrealized losses resulting from the change in fair value of the equity investments in “Other gain (loss), net” on the consolidated statement of comprehensive loss for the year ended December 31, 2022. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 mainland China that are not in-substance common stock. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurements and Disclosures 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 entity has to estimate 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 entity has to recognize an impairment loss in the statements of comprehensive loss equal to the difference between the carrying value and fair value. In 2021, the Group: i) acquired equity interest of a company engaged in providing technology services with a cash consideration of RMB52,493 (US$8,237); and ii) disposed equity interests in certain equity investees and recognized a disposal gain of RMB10,363 (US$1,626) in “Other gain (loss), net”. In February 2022, the Group disposed certain equity interests in Beijing Yunshu Xunlian Technology Co., Ltd. (“Beijing Yunshu”), and deconsolidated Beijing Yunshu’s financial results from the Group’s consolidated financial statements from the date of disposal. The Group measured its remaining interests in Beijing Yunshu at fair value upon deconsolidation, and the loss recognized from the disposal of Beijing Yunshu was immaterial. Subsequent to the deconsolidation, the Group owns 15.63% equity interests in Beijing Yunshu and the remaining equity interests are accounted for using the measurement alternative. The Group recognized RMB14,301, RMB82,492 and RMB22,452 (US$3,255) of unrealized gains (upward adjustments), and RMB nil, RMB nil and RMB nil (US$nil) of unrealized losses (downward adjustments) resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, in other gain (loss), net on the consolidated statements of comprehensive loss for the years ended December 31, 2020, 2021 and 2022, respectively. The total carrying value of equity investments held were as follows: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Equity investments without readily determinable fair value: Initial cost basis 114,876 114,256 124,196 18,007 Cumulative unrealized gains 14,301 96,793 119,245 17,289 Cumulative unrealized losses (including impairment) — — (14,940) (2,166) Foreign currency translation (2,594) (3,883) 271 39 126,583 207,166 228,772 33,169 Equity investments with readily determinable fair value: Initial cost basis — — 63,356 9,186 Cumulative unrealized losses — — (22,683) (3,289) Foreign currency translation — — 4,135 599 — — 44,808 6,496 Total carrying value 126,583 207,166 273,580 39,665 |
Fair value measurements | Fair value measurements Financial instruments of the Group primarily include cash and cash equivalents, restricted cash, short-term investments, accounts receivable and contract assets, equity investments, accounts payable, purchase consideration payable, certain other liabilities, amounts due from and due to related parties and short-term bank loans. For equity investments without readily determinable fair value, the Group elected to use the measurement alternative to measure those 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, with the assistance of an independent third-party valuation firm, determined the estimated fair value of its equity investments using the alternative measurement. The Group measures equity investments with readily determinable fair value using the market approach based on the quoted prices in an active market. The Group measures its purchase consideration payable at fair value on a recurring basis. The fair value of purchase consideration payable is estimated by discounting cash flows using interest rates currently available for similar debts instruments of comparable 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. The carrying amounts of the remaining financial instruments approximate to their fair values because of their short-term maturities. 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. a) Assets and liabilities measured at fair value on a recurring basis Quoted prices in Significant active markets other Significant Total Fair for identical observable unobservable Total Value assets inputs inputs losses (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB RMB As of December 31, 2021 Purchase consideration payable (1,328,508) — (1,328,508) — (9,249) As of December 31, 2022 Purchase consideration payable (1,208,985) — (1,208,985) — (28,516) Equity investments with readily determinable fair value 44,808 44,808 — — (22,683) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b) Assets and liabilities measured at fair value on a non-recurring basis Quoted prices in Significant active markets other Significant Total Fair for identical observable unobservable Total Value assets inputs inputs gains (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB RMB As of December 31, 2021 Equity investments accounted for using measurement alternative 207,166 — — 207,166 82,492 As of December 31, 2022 Equity investments accounted for using measurement alternative 228,772 — — 228,772 22,452 The non-recurring fair value measurements to the carrying amount of equity investments accounted for using measurement alternative usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Group. These non-recurring fair value measurements were measured by using the observable transaction price and other unobservable inputs (level 3) as of the observable transaction dates. |
Adoption of ASC 326 | Adoption of ASC 326 On January 1, 2021, the Group adopted ASC 326, Credit Losses |
Accounts receivable and contract assets, net | Accounts receivable and contract assets, net The Group maintains an allowance for credit losses in accordance with 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, 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: Estimated Category Useful Life Electronic equipment 3-4 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 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. |
Intangible assets | 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: Estimated Category 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. As of December 31, 2021 and 2022, the Group did not have any intangible assets with indefinite lives. |
Impairment of long-lived assets | Impairment of long-lived assets The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, 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. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. The significant assumptions used in the future undiscounted cash flows of the asset group for which impairment indicators are identified included revenue growth rates and bandwidth and internet data center costs (“IDC costs”). For all periods presented, there was no impairment of any of the Group’s long-lived assets. |
Segment reporting | Segment reporting In accordance with ASC 280-10, Segment Reporting: Overall |
Goodwill | 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, 2021 and 2022, the Group had two reporting units, consisting of Cloud service and solutions and Cloud-based digital solution 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 |
Revenue recognition | Revenue recognition The Group applies the five-step model outlined in ASC 606, Revenue from Contracts with Customers 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 lifecycles. 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 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. Using the practical expedient in ASC 606, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one year or less. 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. 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 and upgrades, is recognized at a point in time only upon customer acceptance of the Solutions and upon delivery of the specified upgrade, respectively. 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 revenue Cost of revenues primarily includes 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. |
Research and development | 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 for new products and services and enhancement of the Group’s service offerings. The Group expenses research and development costs as they are incurred. |
Advertising expenditures | Advertising expenditures Advertising costs are expensed when incurred and are included in sales and marketing expenses in the consolidated statements of comprehensive loss. For the years ended December 31, 2020, 2021 and 2022, the advertising expenses were RMB15,348, RMB24,070 and RMB9,512 (US$1,379), respectively. |
Government grants | Government grants Government grants primarily consist of financial grants received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Government grants of non-operating nature and with no further conditions to be met are recorded as non-operating income in “Other (expense) income, net” when received. The remaining government grants are related to acquisition of assets. The grants are recorded as “deferred government grants” included in the accrued expenses and other liabilities line items in the consolidated balance sheets when received. Once the Group fulfills the conditions stipulated under the grant, the grant amount is deducted from the carrying amount of the asset with a corresponding reduction in the deferred government grant balance. |
Leases | Leases The Group determines if an arrangement is a lease or contains a lease at lease inception. For leases with lease and non-lease components, the Group has elected to apply the practical expedient to not separate the lease component and its associated non-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 we 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 liabilities” and “Other liabilities”, respectively, in the consolidated balance sheets. 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 income (loss) | Comprehensive income (loss) Comprehensive income (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 |
Income taxes | Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes 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 mainland China. 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. 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 non-current 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. |
Share-based compensation | Share-based compensation The Group applies ASC 718, Compensation—Stock Compensation The Group uses the accelerated method for all awards granted with graded vesting based on service conditions, and elected to account for forfeitures as they occur. 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. A change in the terms or conditions of share options is accounted for as a modification of share-based awards. The Group calculates the incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested share-based awards, the Group recognizes incremental compensation cost in the period the modification occurred. For unvested share-based awards, the Group recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. Cancellation of an award accompanied by the concurrent grant of (or offer to grant) a replacement award are accounted for as a modification of the terms of the cancelled award. |
Treasury shares | 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 | Loss per share In accordance with ASC 260, Earnings Per Share 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. For the year ended December 31, 2020, ordinary equivalent shares consist of ordinary shares issuable upon the conversion of the Company’s convertible preferred shares and redeemable convertible preferred shares using the if-converted method; and ordinary shares issuable upon the exercise of share options and vesting of awarded shares, using the treasury stock method. For the years ended December 31, 2021 and 2022, ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options and vesting of awarded shares. Ordinary share equivalents are excluded from the computation of diluted per share if their effects would be anti-dilutive. |
Employee benefit expenses | 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 mainland China 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 mainland China 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 RMB126,784, RMB310,126 and RMB431,929 (US$62,624) for the years ended December 31, 2020, 2021 and 2022, respectively. |
Impact of COVID-19 | Impact of COVID-19 For the years ended December 31, 2020 and 2021, COVID-19 has had immaterial impact on the Group’s operations. For the year ended December 31, 2022, the Group’s operations were negatively impacted by the resurgence of COVID-19. There are still uncertainties of COVID-19’s future impact, and the extent of the impact will depend on a number of factors, including the duration and severity of the pandemic; the uneven impact to certain industries; and the macroeconomic impact of government measures to contain the spread of COVID-19 and related government stimulus measures. As a result, certain of the Group’s estimates and assumptions, including allowance for credit losses, equity investments, long-lived assets and goodwill subject to impairment assessments, require increased judgment and carry a higher degree of variability and volatility that could result in material changes to the Group’s estimates in future periods. |
Recent accounting pronouncements | Recent accounting pronouncements In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions , which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Group for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. The Group does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Schedule of Principal Subsidiaries Variable Interest Entities, and Subsidiaries | The Company’s principal subsidiaries, variable interest entities, and subsidiaries of its variable interest entities, are as follows: Percentage of equity interest Date of attributable Place of establishment/ to the Name establishment acquisition Company Principal activities Subsidiaries: Kingsoft Cloud Corporation Limited HK February 1, 2012 100 % Cloud services Beijing Kingsoft Cloud Technology Co., Ltd. (“Beijing Kingsoft Cloud”)* Mainland China April 9, 2012 100 % Research and development Beijing Yunxiang Zhisheng Technology Co., Ltd. (“Yunxiang Zhisheng”)* Mainland China December 15, 2015 100 % Research and development Camelot Technology Co., Ltd. (“Camelot Technology”) Mainland China September 3, 2021 82.72 % Enterprise digital solutions and related services Variable interest entities: Zhuhai Kingsoft Cloud Technology Co., Ltd. (“Zhuhai Kingsoft Cloud”) Mainland China November 9, 2012 Nil Investment holding Kingsoft Cloud (Beijing) Information Technology Co., Ltd. (“Kingsoft Cloud Information”) Mainland China April 13, 2018 Nil Investment holding Variable interest entities’ subsidiaries: Beijing Kingsoft Cloud Network Technology Co., Ltd. (“Beijing Kingsoft Cloud Network Technology”) Mainland China November 9, 2012 Nil Cloud services Beijing Jinxun Ruibo Network Technology Co., Ltd. (“Beijing Jinxun Ruibo”) Mainland China December 17, 2015 Nil Cloud services Nanjing Qianyi Shixun Information Technology Co., Ltd. Mainland China March 31, 2016 Nil Cloud services Wuhan Kingsoft Cloud Information Technology Co., Ltd. Mainland China December 26, 2017 Nil Cloud services Kingsoft Cloud (Tianjin) Technology Development Co., Ltd. Mainland China May 30, 2019 Nil Cloud services * |
Schedule of Assets Liabilities Results of Variable Interest Entities | 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 at December 31 2021 2022 2022 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 2,209,647 1,231,226 178,511 Restricted cash 89,704 107,840 15,635 Accounts receivable, net of allowance for credit losses of RMB30,082 and RMB32,413 (US$4,699) as of December 31, 2021 and 2022, respectively 3,170,860 2,032,260 294,650 Prepayments and other assets 907,350 927,040 134,408 Amounts due from related parties 184,137 216,346 31,367 Amounts due from subsidiaries of the Group 2,157,428 2,538,670 368,073 Total current assets 8,719,126 7,053,382 1,022,644 Non-current assets: Property and equipment, net 2,157,093 1,978,937 286,919 Intangible assets, net 93,662 83,393 12,091 Prepayments and other assets 27,036 20,257 2,937 Goodwill 64,082 48,814 7,077 Equity investments 162,244 179,697 26,054 Amounts due from related parties 4,712 4,712 683 Operating lease right-of-use assets 184,908 147,719 21,417 Total non-current assets 2,693,737 2,463,529 357,178 Total assets 11,412,863 9,516,911 1,379,822 Current liabilities: Accounts payable 2,733,487 2,113,674 306,455 Accrued expenses and other liabilities 1,208,868 644,858 93,496 Short-term bank loans 1,348,166 885,500 128,385 Income tax payable 1,026 — — Amounts due to related parties 797,731 388,308 56,299 Current operating lease liabilities 70,672 87,142 12,634 Amounts due to subsidiaries of the Group 1,597,946 3,854,844 558,900 Total current liabilities 7,757,896 7,974,326 1,156,169 Non-current liabilities: Other liabilities 6,975 284,971 41,316 Non-current operating lease liabilities 121,057 90,138 13,069 Amounts due to related parties 472,882 413,464 59,947 Amounts due to subsidiaries of the Group 7,486,525 7,206,545 1,044,851 Total non-current liabilities 8,087,439 7,995,118 1,159,183 Total liabilities 15,845,335 15,969,444 2,315,352 |
Schedule of Operations and Cash Flows Results of Variable Interest Entities | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Revenues 6,377,158 7,972,143 5,571,837 807,840 Net loss (922,908) (1,556,904) (2,211,057) (320,573) Net cash used in operating activities (833,479) (958,748) (144,977) (21,020) Net cash used in investing activities (1,471,637) (843,586) (1,167,374) (169,253) Net cash generated from financing activities 2,802,088 2,612,563 567,592 82,293 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of assets and liabilities measured at fair value on a recurring and non-recurring basis | Quoted prices in Significant active markets other Significant Total Fair for identical observable unobservable Total Value assets inputs inputs losses (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB RMB As of December 31, 2021 Purchase consideration payable (1,328,508) — (1,328,508) — (9,249) As of December 31, 2022 Purchase consideration payable (1,208,985) — (1,208,985) — (28,516) Equity investments with readily determinable fair value 44,808 44,808 — — (22,683) Quoted prices in Significant active markets other Significant Total Fair for identical observable unobservable Total Value assets inputs inputs gains (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB RMB As of December 31, 2021 Equity investments accounted for using measurement alternative 207,166 — — 207,166 82,492 As of December 31, 2022 Equity investments accounted for using measurement alternative 228,772 — — 228,772 22,452 |
Schedule of Property Plant and Equipment Useful Lives | Estimated Category Useful Life Electronic equipment 3-4 years Office equipment and fixtures 5 years Data center machinery and equipment 10 years Building 50 years |
Schedule of Finite Lived Intangible Assets Useful Lives | Estimated Category 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 |
Summary of total carrying value of equity investments held | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Equity investments without readily determinable fair value: Initial cost basis 114,876 114,256 124,196 18,007 Cumulative unrealized gains 14,301 96,793 119,245 17,289 Cumulative unrealized losses (including impairment) — — (14,940) (2,166) Foreign currency translation (2,594) (3,883) 271 39 126,583 207,166 228,772 33,169 Equity investments with readily determinable fair value: Initial cost basis — — 63,356 9,186 Cumulative unrealized losses — — (22,683) (3,289) Foreign currency translation — — 4,135 599 — — 44,808 6,496 Total carrying value 126,583 207,166 273,580 39,665 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
BUSINESS COMBINATION | |
Summary of fair value of assets acquired and liabilities assumed | Camelot RMB US$ Total fair value of purchase consideration 5,290,553 767,058 Less: Cash and cash equivalents 618,439 89,665 Restricted cash 1,126 163 Accounts receivable and other assets 940,511 136,361 Property and equipment, net 13,792 2,000 Intangible assets: Customer relationship 620,100 89,906 Trademarks 474,000 68,724 Copyrights 34,100 4,944 Deferred tax assets 54,419 7,890 Deferred tax liabilities (268,490) (38,927) Accounts payable and other liabilities (871,903) (126,415) Non-controlling interests (882,451) (127,943) Goodwill 4,556,910 660,690 |
REVENUES, OTHER GAIN (LOSS), _2
REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET | |
Summary of disaggregation of revenue | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Public cloud services recognized over time 5,166,851 6,159,085 5,360,282 777,168 Enterprise cloud services: Recognized at a point in time 1,368,544 2,159,869 711,466 103,153 Recognized over time 4,145 737,948 2,105,510 305,270 1,372,689 2,897,817 2,816,976 408,423 Others: Recognized at a point in time 36,611 1,208 — — Recognized over time 1,156 2,674 2,849 413 37,767 3,882 2,849 413 6,577,307 9,060,784 8,180,107 1,186,004 |
Summary of revenue, remaining performance obligation | The transaction prices allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at December 31, 2022 are related to enterprise cloud services and others, which are as follows: RMB US$ Within one year 52,798 7,655 More than one year 41,022 5,948 Total 93,820 13,603 |
Summary of contract with customer liability recognized | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Revenue recognized from amounts included in contract liabilities at the beginning of the period 37,550 112,221 192,428 27,899 |
Schedule of other gain (loss), net | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Gross unrealized gain on equity investments held 14,301 82,492 22,452 3,255 Gross unrealized loss (including impairment) on equity investments held — — (37,623) (5,455) Net realized gain (loss) on equity investments sold — 10,363 (123) (18) Changes in fair value of purchase consideration in a business acquisition — (9,249) (28,516) (4,134) 14,301 83,606 (43,810) (6,352) |
Schedule of other income (expense), net | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Government grants* 5,869 100,759 56,867 8,245 Income from ADS Reimbursement (Note 12) 5,219 9,967 10,386 1,506 Value added tax transferred out (20,904) (23,721) (32,766) (4,751) Gain on disposal of property and equipment 2,242 7,107 156 23 Others (3,236) 935 (11,636) (1,687) (10,810) 95,047 23,007 3,336 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts receivable, net | As at December 31 2021 2022 2022 RMB RMB US$ Accounts receivable 3,603,240 2,450,392 355,274 Allowance for credit losses (32,265) (47,962) (6,954) Accounts receivable, net 3,570,975 2,402,430 348,320 |
Schedule of the movement in the allowance for doubtful accounts | The movements of the allowance for credit losses were as follows: As at December 31 2020 2021 2022 2022 RMB RMB RMB US$ Balance at beginning of the year 22,894 15,770 32,265 4,678 Adoption of ASC 326 (Note 2) — 5,684 — — Provision for expected credit losses 44,695 121,731 323,848 46,954 Write-offs charged against the allowance* (44,096) (101,202) (273,286) (39,623) Recoveries during the year (7,723) (9,718) (34,865) (5,055) Balance at end of the year 15,770 32,265 47,962 6,954 |
PREPAYMENTS AND OTHER ASSETS (T
PREPAYMENTS AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER ASSETS | |
Schedule of prepayments and other assets | As at December 31 2021 2022 2022 RMB RMB US$ Current portion: Prepayments to suppliers 162,528 194,796 28,243 Contract costs* 145,628 133,084 19,295 Contract assets, net** 550,068 488,226 70,786 VAT prepayments 619,391 678,847 98,424 Interest receivable 21,463 21,955 3,183 Individual income tax receivable*** (Note 12) 48,949 3,742 543 Others 138,994 91,372 13,247 1,687,021 1,612,022 233,721 Non-current portion: Prepayments for electronic equipment 25,388 19,211 2,785 Others 3,678 2,052 298 29,066 21,263 3,083 * 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. ** 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 decrease in contract assets in 2022 reflects the net impact of billed revenues in excess of revenue recognized during the period. The allowance for credit losses on contract assets were RMB1,591 and RMB21,453 (US$3,110) as of December 31, 2021 and 2022, respectively. The amounts charged to expenses for credit losses on contract assets were RMB2,100 and RMB19,862 (US$2,880), and write-offs charged against the allowance were RMB509 and RMB nil (US$ nil), respectively, for the years ended December 31, 2021 and 2022, respectively. *** Represents amounts due from certain employees related to their individual income taxes (“IIT”) arising from exercise and vesting of share-based awards. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment | As at December 31 2021 2022 2022 RMB RMB US$ Electronic equipment 5,123,149 5,421,548 786,051 Office equipment and fixtures 15,462 15,376 2,229 Data center machinery and equipment 144,328 319,652 46,345 Building 15,768 161,428 23,405 Construction in progress 147,817 3,459 501 5,446,524 5,921,463 858,531 Less: accumulated depreciation (3,082,421) (3,788,469) (549,276) Property and equipment, net 2,364,103 2,132,994 309,255 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets | As at December 31 2021 2022 2022 RMB RMB US$ Customer relationships 620,100 620,500 89,964 Patents and technologies 67,900 60,900 8,830 Trademarks and domain names 497,098 497,939 72,194 Software and copyrights 71,752 88,502 12,832 Others 3,637 3,707 537 1,260,487 1,271,548 184,357 Less: accumulated amortization Customer relationships (32,637) (130,701) (18,950) Patents and technologies (8,138) (17,763) (2,575) Trademarks and domain names (20,722) (70,494) (10,221) Software and copyrights (26,692) (41,286) (5,986) Others (2,531) (3,284) (476) (90,720) (263,528) (38,208) Intangible assets, net 1,169,767 1,008,020 146,149 |
Schedule of amortization expense of intangible assets | RMB US$ 2023 177,022 25,666 2024 172,096 24,952 2025 166,308 24,112 2026 162,686 23,587 2027 and thereafter 329,908 47,832 Total 1,008,020 146,149 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL | |
Summary of Carrying Value of Goodwill | Cloud-based Cloud service digital solutions and solutions and services Total RMB RMB RMB Balance as of December 31, 2021 3,669,031 956,084 4,625,115 Disposal of a subsidiary (15,268) — (15,268) Adjustments to fair values of preliminary purchase price allocation (3,259) (864) (4,123) Balance as of December 31, 2022 3,650,504 955,220 4,605,724 Balance as of December 31, 2022, in US$ 529,273 138,494 667,767 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
Schedule of components of lease costs | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Operating lease costs 52,890 52,648 72,244 10,474 Short-term lease costs 3,036 11,317 15,493 2,246 Finance lease costs: Depreciation of finance lease assets — — 9,204 1,334 Interest on finance lease liabilities — — 5,491 796 Variable lease payments — — 7,237 1,050 Total finance lease costs — — 21,932 3,180 |
Schedule of other information related to the leases | As at December 31 2020 2021 2022 Weighted-average remaining lease term: Operating leases 9.7 years 8.3 years 7.7 years Finance leases — — 9.3 years Weighted-average discount rate: Operating leases 6.36 % 6.18 % 5.88 % Finance leases — — 5.90 % |
Schedule of cash paid for amounts included in measurement of lease liabilities | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Operating cash payments for operating leases 60,273 35,214 47,385 6,870 |
Schedule of lease assets obtained in exchange for lease obligations | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Operating leases 195,890 6,915 47,288 6,856 Finance leases — — 175,324 25,420 |
Schedule of undiscounted future minimum payments under the operating and financing lease liabilities and reconciliation to the operating and financing lease liabilities | Operating lease Finance lease RMB US$ RMB US$ 2023 139,681 20,252 — — 2024 54,613 7,918 20,485 2,970 2025 32,530 4,716 30,728 4,455 2026 13,067 1,895 30,728 4,455 2027 and thereafter 62,532 9,066 163,881 23,761 Total future lease payments 302,423 43,847 245,822 35,641 Less: imputed interest (42,641) (6,182) (65,007) (9,425) Total lease liability balance 259,782 37,665 180,815 26,216 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of accrued expenses and other liabilities | As at December 31 2021 2022 2022 RMB RMB US$ Current portion: Customer advances* 378,957 411,467 59,657 Salary and welfare payable 600,775 671,124 97,304 Purchase of property and equipment 759,391 120,530 17,475 Accrued expenses 116,021 188,533 27,335 Other tax and surcharges payable 91,287 110,242 15,984 Deferred government grants** 8,488 17,257 2,502 Purchase consideration payable*** 148,038 1,208,985 175,286 Individual income tax payable**** (Note 7) 48,949 3,742 543 Others***** 71,934 98,946 14,342 2,223,840 2,830,826 410,428 Non-current portion: Deferred government grants** 6,975 104,156 15,101 Purchase consideration payable*** 1,180,470 — — Finance lease liability — 180,815 26,216 Unrecognized tax benefit 15,954 40,539 5,878 Others***** 29,278 45,021 6,527 1,232,677 370,531 53,722 * The amount represents contract liabilities for the rendering of services. The increase in customer advances as of December 31, 2022 is a result of the increase in consideration received from the Group’s customers. ** The amount primarily represents government subsidies for constructions of a data center in mainland China. *** The amount represents the remaining purchase consideration to acquire Camelot. As of December 31, 2022, RMB257,777 (US$37,374) and RMB951,208 (US$137,912) will be settled by cash and ordinary shares of the Company by June 30, 2023, respectively. **** Represents IIT payable to the tax bureau on behalf of certain employees related to their exercise and vesting of share-based awards. ***** In July 2020, the Company received a reimbursement of US$7,469 (equivalent to RMB47,597) from the depository for the establishment and maintenance of the ADS program (“ADS Reimbursement”). As of December 31, 2021 and 2022, RMB9,836 and RMB10,762 (US$1,560) were included in the current portion, and RMB22,989 and RMB14,350 (US$2,081) were included in the non-current portion of accrued expenses and other liabilities, respectively. The ADS Reimbursement will be released to the consolidated statements of comprehensive loss in equal amounts over the ADS program term. |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
Schedule of related party loans | As at December 31 2021 2022 2022 RMB RMB US$ Current Kingsoft Group* 500,000 — — Xiaomi Group** 236,206 340,129 49,314 736,206 340,129 49,314 Non-current: Xiaomi Group** 472,882 413,464 59,947 472,882 413,464 59,947 1,209,088 753,593 109,261 * During 2021, the Group entered into an unsecured loan agreement with Kingsoft Group for an aggregate principal amount of RMB500,000 (US$78,461) with a fixed annual interest rate of 4.65%. The Group has fully repaid the loan in November 2022. ** During 2021 and 2022, the Group entered into several loan agreements with fixed annual interest rates of 4.36% and 3.98% with Xiaomi Group which are secured by the Group’s electronic equipment, respectively. The carrying amount of the electronic equipment pledged was RMB702,424 and RMB585,005 (US$84,818) as of December 31, 2021, and 2022, respectively. |
Summary of loan principal due according to schedule | RMB US$ 2023 1,259,065 182,547 2024 322,758 46,796 2025 81,500 11,816 2026 61,125 8,862 1,724,448 250,021 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TAXATION | |
Schedule of income before income tax, domestic and foreign | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Mainland China (1,095,015) (1,646,607) (2,475,677) (358,939) Non-mainland China 147,721 70,592 (188,238) (27,292) (947,294) (1,576,015) (2,663,915) (386,231) |
Schedule of current and deferred components of income tax expense (benefit) | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Current income tax expense 15,081 27,593 59,668 8,651 Deferred income tax benefit (177) (11,852) (35,195) (5,103) 14,904 15,741 24,473 3,548 |
Schedule of effective income tax expense reconciliation | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Loss before income tax (947,294) (1,576,015) (2,663,915) (386,231) Income tax computed at the mainland China statutory tax rate of 25% (236,824) (394,004) (665,978) (96,558) Effect of tax holiday and preferential tax rates (44,121) 7,083 52,651 7,634 Effect of different tax rates in different jurisdictions 10,580 (1,681) 58,266 8,448 Other non-taxable income (35,454) (24,999) (28,993) (4,204) Non-deductible expenses 14,060 36,719 5,727 830 Share-based compensation costs 82,528 108,588 90,015 13,051 Research and development super deduction (113,388) (146,639) (64,718) (9,383) Withholding tax and others 11,581 9,552 10,785 1,564 Change in valuation allowance 399,756 434,056 525,169 76,142 True-up adjustments in respect of prior year’s annual tax filing (83,342) (3,474) (15,195) (2,203) Expiration of tax loss carryforward — — 124,555 18,059 Tax rate change on deferred items 9,528 (9,460) (67,811) (9,832) Income tax expense 14,904 15,741 24,473 3,548 |
Schedule of deferred tax assets and liabilities | As at December 31 2021 2022 2022 RMB RMB US$ Deferred tax assets: Tax loss carried forward 1,841,192 2,318,161 336,102 Accrued expenses 235,737 84,428 12,241 Depreciation 7,082 17,073 2,475 Allowance for credit losses 53,436 85,666 12,420 Government grant 4,266 5,779 838 Operating lease liabilities 63,781 57,828 8,384 Accrued interest 170,337 197,767 28,674 Finance lease liabilities — 47,505 6,888 Others 2,737 8,241 1,194 Less: valuation allowance (1,881,873) (2,415,627) (350,233) 496,695 406,821 58,983 Deferred tax liabilities: Operating lease right-of-use assets 57,300 46,367 6,723 One-time deduction for fixed asset purchases 337,564 231,532 33,569 Long-lived assets arising from acquisition 277,267 238,672 34,603 Finance lease right-of-use assets — 41,530 6,021 Others 22,655 15,772 2,287 694,786 573,873 83,203 Net deferred tax liabilities : 198,091 167,052 24,220 |
Summary of unrecognized tax benefit | As at December 31 2021 2022 2022 RMB RMB US$ Balance at beginning of the year 12,613 59,049 8,561 Additions from the business acquisitions 19,551 — — Additions based on tax position related to current year 26,885 15,894 2,304 Additions based on tax positions related to prior year — 22,462 3,257 Reductions for tax positions related to prior years — (38,687) (5,609) Balance at end of the year 59,049 58,718 8,513 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED PAYMENTS | |
Summary of the activity under the share option scheme | A summary of the activity for the options granted under the 2013 Share Option Scheme is stated below: Weighted- Weighted- Weighted- average average Aggregate Number of average exercise grant-date remaining intrinsic options price fair value contractual term value US$ US$ Years US$ Outstanding, December 31, 2021 61,760,202 0.07 0.87 6.61 60,339 Granted 8,667,040 0.07 0.36 — — Forfeited (11,272,993) 0.07 1.17 — — Exercised (20,788,141) 0.07 0.52 — — Outstanding, December 31, 2022 38,366,108 0.07 0.86 6.01 6,972 Vested and expected to vest at December 31, 2022 38,366,108 0.07 0.86 6.01 6,972 Exercisable at December 31, 2022 25,646,851 0.07 0.58 5.41 4,669 |
Summary of the activity for the options issued under the share award scheme | A summary of the activity for the options granted under the 2013 Share Award Scheme is stated below: Weighted- Weighted- Weighted- average average Aggregate Number of average exercise grant-date remaining intrinsic options price fair value contractual term value US$ US$ Years US$ Outstanding, December 31, 2021 27,868,420 0.83 0.31 7.99 6,169 Forfeited (10,800,320) 0.87 0.29 — — Outstanding, December 31, 2022 17,068,100 0.87 0.31 6.97 — Vested and expected to vest at December 31, 2022 17,068,100 0.87 0.31 6.97 — Exercisable at December 31, 2022 9,136,740 0.87 0.31 6.95 — |
Schedule of assumptions used to estimate the fair value of the share options | The assumptions used to estimate the fair value of the share options granted are as follows: For the year ended December 31 2020 2021 2022 Risk-free rate 0.66%-1.84% 1.13%-1.62% 1.75%-2.93% Expected volatility range 37.3%-37.8% 36.28%-38.03% 35.62%-46.22% Exercise multiple 2.20-2.80 2.20-2.80 2.20-2.80 Fair market value per ordinary share as at valuation dates US$0.76-US$1.94 US$1.97-US$3.49 US$0.24-US$0.73 |
Summary of acquisition date fair value of each share-based award is estimated | The acquisition date fair value of each Camelot Award is estimated using the binomial tree option pricing model with the following assumptions: 2021 Risk-free rate 0.21 % Expected volatility range 50.56 % Exercise multiple 2.20 Fair market value per ordinary share as at valuation dates RMB23.00 In November 2022, the Company’s board of directors approved to replace all outstanding Camelot Awards with cash consideration of RMB43,981 and 27,500,715 share-based awards of the Company under the 2021 Share Award Scheme. |
Summary of the amount of share-based compensation expense included in each of the relevant financial statement line items | The following table sets forth the amount of share-based compensation expense included in each of the relevant financial statement line items: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Cost of revenues 10,614 17,481 15,618 2,264 Selling and marketing expenses 62,270 72,594 68,562 9,940 General and administrative expenses 169,101 193,886 187,843 27,235 Research and development expenses 88,129 150,389 87,812 12,732 330,114 434,350 359,835 52,171 |
2013 Share Award Scheme | |
SHARE-BASED PAYMENTS | |
Summary of the activity for the restricted shares issued under the share award scheme | A summary of the activity for the restricted shares issued under the 2013 Share Award Scheme is stated below: Number of Weighted-average shares grant-date fair value US$ Outstanding, December 31, 2021 57,987,266 1.32 Granted 17,805,065 1.29 Cancelled (9,452,885) 1.73 Vested (17,310,087) 1.05 Forfeited (18,880,457) 1.37 Outstanding, December 31, 2022 30,148,902 1.33 Expected to vest at December 31, 2022 30,148,902 1.33 |
2021 Share Award Scheme | |
SHARE-BASED PAYMENTS | |
Summary of the activity for the options issued under the share award scheme | In November 2021, the Company adopted the 2021 Share Award Scheme. A summary of the activity for the restricted shares with option features issued under the 2021 Share Award Scheme is stated below: Weighted- average Weighted- Weighted- grant- average Aggregate Number of average exercise date remaining intrinsic options price fair value contractual term value US$ US$ Years US$ Outstanding, December 31, 2021 — — — — — Granted 129,509,841 0.01 0.33 — — Exercised (3,131,947) 0.01 0.40 — — Forfeited (22,374,413) 0.01 0.38 — — Outstanding, December 31, 2022 104,003,481 0.01 0.32 9.44 25,786 Vested and expected to vest at December 31, 2022 104,003,481 0.01 0.32 9.44 25,786 Exercisable at December 31, 2022 30,927,052 0.00 0.25 9.86 7,858 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOSS PER SHARE | |
Schedule of earnings per share, basic and diluted | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Numerator: Net loss attributable to Kingsoft Cloud Holdings Limited (962,259) (1,588,712) (2,658,184) (385,400) Accretion to redemption value of redeemable convertible preferred shares (19,768) — — — Net loss attributable to ordinary shareholders - basic and diluted (982,027) (1,588,712) (2,658,184) (385,400) Denominator: Weighted average number of ordinary shares outstanding - basic and diluted 2,400,874,197 3,441,729,444 3,623,838,985 3,623,838,985 Basic and diluted loss per share (0.41) (0.46) (0.73) (0.11) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related Parties and nature of relationship | a) Related Parties Name of related parties Relationship with the Group Kingsoft Corporation Limited and its subsidiaries (other than all of entities of the Group) (“Kingsoft Group”) Principal shareholder of the Company Xiaomi Corporation and its subsidiaries (“Xiaomi Group”) Entity controlled by a director of the Company |
Schedule of related party transactions | b) The Group had the following related party transactions: For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Revenues: Public cloud services provided to Xiaomi Group 655,165 749,597 804,647 116,663 Public cloud services provided to Kingsoft Group 119,011 156,158 187,907 27,244 Public cloud services provided to Cheetah Group*** 3,111 — — — Public cloud services provided to Others — — 50,629 7,341 Enterprise cloud services provided to Xiaomi Group — 22,857 74,590 10,815 Enterprise cloud services provided to Kingsoft Group — 838 10,892 1,579 Other services provided to Xiaomi Group 82 — — — Other services provided to Kingsoft Group — 74 — — 777,369 929,524 1,128,665 163,642 Purchase of devices from Xiaomi Group 2,177 1,349 144 21 Interest expense on loans due to Xiaomi Group — 16,633 48,707 7,062 Interest expense on a loan due to Kingsoft Group — 4,088 18,364 2,663 Rental of building from Xiaomi Group* 47,900 56,452 48,766 7,070 Rental of office space, and administrative services from Kingsoft Group** 13,801 13,321 13,931 2,020 63,878 91,843 129,912 18,836 * The Group entered into agreements to lease building and office space from Xiaomi Group. As of December 31, 2021 and 2022, the related operating lease right-of-use assets amounted to RMB210,551 and RMB167,697 (US$24,314) and operating lease liabilities amounted to RMB238,180 and RMB224,346 (US$32,527), respectively. ** The Group entered into agreements to lease building and office space from Kingsoft Group in 2022. As of December 31, 2022, the related operating lease right-of-use assets amounted to RMB2,625 (US$381) and operating lease liabilities amounted to RMB3,634 (US$527). *** Cheetah Group refers to Cheetah Mobile Inc. and its subsidiaries. Cheetah Group was no longer the Group's related party after May 8, 2020. |
Schedule of related party balances | c) The Group had the following related party balances at the end of the year: As at December 31 2021 2022 2022 RMB RMB US$ Amounts due from related parties: Trade related: Xiaomi Group 175,170 200,577 29,081 Kingsoft Group 26,868 34,550 5,009 Others — 6,268 909 Non-trade related: Kingsoft Group 10,863 10,868 1,576 212,901 252,263 36,575 Amounts due to related parties: Trade related: Kingsoft Group 15,092 14,069 2,040 Xiaomi Group 55,853 44,245 6,415 Non-trade related: Kingsoft Group* 529,284 29,284 4,246 Xiaomi Group* 709,088 753,593 109,261 1,309,317 841,191 121,962 * |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of accumulated other comprehensive income (loss) | RMB Balance as of January 1, 2020 484,348 Foreign currency translation adjustments, net of tax of nil (552,788) Balance as of December 31, 2020 (68,440) Foreign currency translation adjustments, net of tax of nil (139,442) Balance as of December 31, 2021 (207,882) Foreign currency translation adjustments, net of tax of nil 660,956 Balance as of December 31, 2022 453,074 Balance as of December 31, 2022, in US$ 65,690 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
Summary of Parent Company Balance Sheet | As at December 31 2021 2022 2022 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 69,393 169,743 24,610 Short-term investments 1,029,472 — — Prepayments and other assets 53,618 34,141 4,951 Amounts due from subsidiaries (other than WFOE)* 5,408,311 4,354,380 631,326 Amounts due from WFOE 100,000 100,000 14,499 Total current assets 6,660,794 4,658,264 675,386 Non-current assets: Investments in subsidiaries 5,328,424 5,518,634 800,127 Total non-current assets 5,328,424 5,518,634 800,127 Total assets 11,989,218 10,176,898 1,475,513 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other liabilities 182,075 1,309,490 189,858 Income tax payable 3,307 2,764 401 Amounts due to WFOE 4,840 5,287 767 Amounts due to VIEs and VIEs’ subsidiaries 6 43,987 6,377 Amounts due to related parties 829 — — Total current liabilities 191,057 1,361,528 197,403 Other liabilities 1,194,212 14,350 2,081 Total non-current liabilities 1,194,212 14,350 2,081 Total liabilities 1,385,269 1,375,878 199,484 Commitments and contingencies Shareholders’ equity: Ordinary shares (par value of US$0.001 per share; 40,000,000,000 and 40,000,000,000 shares authorized, 3,805,284,810 and 3,805,284,801 shares issued, 3,646,381,840 and 3,508,413,941 shares outstanding as of December 31, 2021 and 2022, respectively) 24,782 25,062 3,634 Treasury shares — (208,385) (30,213) Additional paid-in capital 18,245,801 18,648,205 2,703,736 Accumulated deficit (7,458,752) (10,116,936) (1,466,818) Accumulated other comprehensive (loss) income (207,882) 453,074 65,690 Total Kingsoft Cloud Holdings Limited shareholders’ equity 10,603,949 8,801,020 1,276,029 Total liabilities and shareholders’ equity 11,989,218 10,176,898 1,475,513 |
Summary of Parent Company Income Statement | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Operating expenses: General and administrative expenses (27,052) (40,913) (148,392) (21,515) Total operating expenses (27,052) (40,913) (148,392) (21,515) Operating loss Interest income 10,199 15,224 12,430 1,802 Foreign exchange gain (loss) 30,931 10,198 (39,426) (5,717) Other income, net 5,377 9,889 10,372 1,504 Other loss, net — — (37,764) (5,475) Share of losses of subsidiaries (171,421) (121,100) (264,260) (38,313) Contractual interests in VIEs and VIEs’ subsidiaries** (809,672) (1,461,042) (2,190,364) (317,573) Loss before income taxes (961,638) (1,587,744) (2,657,404) (385,287) Income tax expense (621) (968) (780) (113) Net loss (962,259) (1,588,712) (2,658,184) (385,400) Other comprehensive income (loss), net of tax of nil : Foreign currency translation adjustments (552,788) (139,442) 660,956 95,830 Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders (1,515,047) (1,728,154) (1,997,228) (289,570) Accretion to redemption value of redeemable convertible preferred shares (19,768) — — — Comprehensive loss attributable to ordinary shareholders (1,534,815) (1,728,154) (1,997,228) (289,570) * Majority of amounts due from the Company’s subsidiaries were ultimately provided to the VIEs and their subsidiaries by the Company’s subsidiaries. Except for the Company’s investments in Camelot, the carrying amounts of investments in subsidiaries and the VIEs were reduced to zero by the Company’s share of contractual interests in cumulative losses as of December 31, 2021, and 2022, and the carrying amounts of “amounts due from subsidiaries” were further adjusted. ** It represents the primary beneficiary’s share of losses generated from the VIEs and their subsidiaries. |
Summary of Parent Company Cash Flow | For the year ended December 31 2020 2021 2022 2022 RMB RMB RMB US$ Net cash (used in) generated from operating activities (6,203,310) 1,178,019 (40,310) (5,844) Net cash (used in) generated from investing activities (218,674) (1,179,393) 358,010 51,907 Net cash generated from (used in) financing activities 5,945,666 (815) (215,923) (31,306) Effect of exchange rate changes on cash and cash equivalents 3,969 3,570 (1,427) (208) Net (decrease) increase in cash and cash equivalents (472,349) 1,381 100,350 14,549 Cash and cash equivalents at beginning of the year 540,361 68,012 69,393 10,061 Cash and cash equivalents at end of the year 68,012 69,393 169,743 24,610 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Organization and Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
CN | Zhuhai Kingsoft Cloud Technology Co Ltd | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | Mainland China |
Variable: Date of establishment/ acquisition | Nov. 09, 2012 |
Variable: Principal activities | Investment holding |
CN | Kingsoft Cloud Beijing Information Technology Co Ltd | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | Mainland China |
Variable: Date of establishment/ acquisition | Apr. 13, 2018 |
Variable: Principal activities | Investment holding |
Subsidiaries | CN | Kingsoft Cloud (Tianjin) Technology Development Co Ltd | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | Mainland China |
Variable: Date of establishment/ acquisition | May 30, 2019 |
Variable: Principal activities | Cloud services |
Subsidiaries | CN | Wuhan Kingsoft Cloud Information Technology Co Ltd | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | Mainland China |
Variable: Date of establishment/ acquisition | Dec. 26, 2017 |
Variable: Principal activities | Cloud services |
Subsidiaries | CN | Beijing Jinxun Ruibo Network Technology Co Ltd | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | Mainland China |
Variable: Date of establishment/ acquisition | Dec. 17, 2015 |
Variable: Principal activities | Cloud services |
Subsidiaries | CN | Nanjing Qianyi Shixun Information Technology Co Ltd | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | Mainland China |
Variable: Date of establishment/ acquisition | Mar. 31, 2016 |
Variable: Principal activities | Cloud services |
Subsidiaries | Kingsoft Cloud Corporation Limited | HK | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | HK |
Date of establishment/ acquisition | Feb. 01, 2012 |
Percentage of equity interest attributable to the Company | 100% |
Principal activities | Cloud services |
Subsidiaries | Beijing Kingsoft Cloud Technology Co Ltd | CN | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | Mainland China |
Date of establishment/ acquisition | Apr. 09, 2012 |
Percentage of equity interest attributable to the Company | 100% |
Principal activities | Research and development |
Variable: Date of establishment/ acquisition | Nov. 09, 2012 |
Variable: Principal activities | Cloud services |
Subsidiaries | Beijing Yunxiang Zhisheng Technology Co Ltd | CN | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | Mainland China |
Date of establishment/ acquisition | Dec. 15, 2015 |
Percentage of equity interest attributable to the Company | 100% |
Principal activities | Research and development |
Subsidiaries | Camelot Technology Co Ltd | CN | |
Organization Consolidation And Presentation Of Financial Statements | |
Place of establishment | Mainland China |
Date of establishment/ acquisition | Sep. 03, 2021 |
Percentage of equity interest attributable to the Company | 82.72% |
Principal activities | Enterprise digital solutions and related services |
ORGANIZATION AND BASIS OF PRE_4
ORGANIZATION AND BASIS OF PRESENTATION - Additional Information (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2022 CNY (¥) | Oct. 31, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 | Dec. 31, 2022 USD ($) | |
Restricted cash | ||||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||||
Assets secured for payment of liabilities | ¥ 14,695 | ¥ 89,704 | $ 2,131 | |||||
Camelot Group | ||||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||||
Percentage of equity interests acquired | 9.50% | 9.50% | ||||||
Cash consideration paid | ¥ 751,974 | ¥ 456,000 | $ 66,114 | |||||
Camelot Technology Co Ltd | ||||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||||
Percentage of acquisition not completed | 9.50% | |||||||
Cash consideration paid | ¥ 456,000 | $ 66,114 | ||||||
Revenue Benchmark | Variable Interest Entity, Primary Beneficiary [Member] | Consolidated Revenue | ||||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||||
Concentration risk percentage | 68.10% | 68.10% | 88% | 97% | ||||
Xiaomi Group [Member] | Electronic equipment | ||||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||||
Assets secured for payment of liabilities | ¥ 585,005 | ¥ 702,424 | $ 84,818 | |||||
Camelot Employee Scheme Inc | Camelot Technology Co Ltd | Camelot Group | ||||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||||
Percentage of equity interests acquired | 9.50% | |||||||
Beijing Yunxiang Zhisheng Technology Co Ltd | ||||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||||
Payment towards loans to related parties | 10,000 | |||||||
Loan To Zhuhai King Soft Cloud | Beijing Kingsoft Cloud Technology Co Ltd | ||||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||||
Payment towards loans to related parties | ¥ 279 | |||||||
Exclusive Purchase Option Agreement With Zhuhai King Soft Cloud And Nominee Shareholders | Beijing Kingsoft Cloud Technology Co Ltd | ||||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||||
Equity Method investment per share purchase price | ¥ / shares | ¥ 0.001 |
ORGANIZATION AND BASIS OF PRE_5
ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Operations and Cash Flows Results of Variable Interest (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Organization Consolidation And Presentation Of Financial Statements | ||||
Revenues | ¥ 8,180,107 | $ 1,186,004 | ¥ 9,060,784 | ¥ 6,577,307 |
Net loss | (2,658,184) | (385,400) | (1,588,712) | (962,259) |
Net cash used in operating activities | 188,974 | 27,398 | (708,869) | (290,433) |
Net cash used in investing activities | (32,865) | (4,765) | (421,623) | (4,314,003) |
Net cash generated from financing activities | (1,152,146) | (167,045) | 2,212,487 | 6,124,153 |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements | ||||
Revenues | 5,571,837 | 807,840 | 7,972,143 | 6,377,158 |
Net loss | (2,211,057) | (320,573) | (1,556,904) | (922,908) |
Net cash used in operating activities | (144,977) | (21,020) | (958,748) | (833,479) |
Net cash used in investing activities | (1,167,374) | (169,253) | (843,586) | (1,471,637) |
Net cash generated from financing activities | ¥ 567,592 | $ 82,293 | ¥ 2,612,563 | ¥ 2,802,088 |
ORGANIZATION AND BASIS OF PRE_6
ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Assets Liabilities Results of Variable Interest Entities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 3,419,166 | $ 495,732 | ¥ 4,217,528 |
Restricted cash | 114,560 | 16,610 | 239,093 |
Accounts receivable, net of allowance for credit losses of RMB30,082 and RMB32,413 (US$4,699) as of December 31, 2021 and 2022, respectively | 2,402,430 | 348,320 | 3,570,975 |
Prepayments and other assets | 1,612,022 | 233,721 | 1,687,021 |
Total current assets | 9,048,353 | 1,311,888 | 12,412,816 |
Non-current assets: | |||
Property and equipment, net | 2,132,994 | 309,255 | 2,364,103 |
Intangible assets, net | 1,008,020 | 146,149 | 1,169,767 |
Prepayments and other assets | 21,263 | 3,083 | 29,066 |
Goodwill | 4,605,724 | 667,767 | 4,625,115 |
Equity investments | 273,580 | 39,665 | 207,166 |
Operating lease right-of-use assets | 220,539 | 31,975 | 256,451 |
Total non-current assets | 8,267,878 | 1,198,729 | 8,665,224 |
Total assets | 17,316,231 | 2,510,617 | 21,078,040 |
Current liabilities: | |||
Accounts payable | 2,301,958 | 333,753 | 2,938,632 |
Amounts due to related parties | 427,727 | 62,015 | 836,435 |
Current operating lease liabilities | 136,723 | 19,823 | 108,590 |
Total current liabilities | 6,658,626 | 965,408 | 7,515,880 |
Non-current liabilities: | |||
Other liabilities | 370,531 | 53,722 | 1,232,677 |
Non-current operating lease liabilities | 123,059 | 17,842 | 158,289 |
Amounts due to related parties | 413,464 | 59,947 | 472,882 |
Total non-current liabilities | 1,074,106 | 155,731 | 2,069,737 |
Total liabilities | 7,732,732 | 1,121,139 | 9,585,617 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Current assets: | |||
Cash and cash equivalents | 1,231,226 | 178,511 | 2,209,647 |
Restricted cash | 107,840 | 15,635 | 89,704 |
Accounts receivable, net of allowance for credit losses of RMB30,082 and RMB32,413 (US$4,699) as of December 31, 2021 and 2022, respectively | 2,032,260 | 294,650 | 3,170,860 |
Prepayments and other assets | 927,040 | 134,408 | 907,350 |
Amounts due from related parties | 216,346 | 31,367 | 184,137 |
Amounts due from subsidiaries of the Group | 2,538,670 | 368,073 | 2,157,428 |
Total current assets | 7,053,382 | 1,022,644 | 8,719,126 |
Non-current assets: | |||
Property and equipment, net | 1,978,937 | 286,919 | 2,157,093 |
Intangible assets, net | 83,393 | 12,091 | 93,662 |
Prepayments and other assets | 20,257 | 2,937 | 27,036 |
Goodwill | 48,814 | 7,077 | 64,082 |
Equity investments | 179,697 | 26,054 | 162,244 |
Amounts due from related parties | 4,712 | 683 | 4,712 |
Operating lease right-of-use assets | 147,719 | 21,417 | 184,908 |
Total non-current assets | 2,463,529 | 357,178 | 2,693,737 |
Total assets | 9,516,911 | 1,379,822 | 11,412,863 |
Current liabilities: | |||
Accounts payable | 2,113,674 | 306,455 | 2,733,487 |
Accrued expenses and other liabilities | 644,858 | 93,496 | 1,208,868 |
Short-term bank loans | 885,500 | 128,385 | 1,348,166 |
Income tax payable | 1,026 | ||
Amounts due to related parties | 388,308 | 56,299 | 797,731 |
Current operating lease liabilities | 87,142 | 12,634 | 70,672 |
Amounts due to subsidiaries of the Group | 3,854,844 | 558,900 | 1,597,946 |
Total current liabilities | 7,974,326 | 1,156,169 | 7,757,896 |
Non-current liabilities: | |||
Other liabilities | 284,971 | 41,316 | 6,975 |
Non-current operating lease liabilities | 90,138 | 13,069 | 121,057 |
Amounts due to related parties | 413,464 | 59,947 | 472,882 |
Amounts due to subsidiaries of the Group | 7,206,545 | 1,044,851 | 7,486,525 |
Total non-current liabilities | 7,995,118 | 1,159,183 | 8,087,439 |
Total liabilities | ¥ 15,969,444 | $ 2,315,352 | ¥ 15,845,335 |
ORGANIZATION AND BASIS OF PRE_7
ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Assets Liabilities Results of Variable Interest Entities (Parentheticals) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Organization Consolidation And Presentation Of Financial Statements | ||||||
Allowanace for doubtful debt on accounts receivable current | ¥ 47,962 | $ 6,954 | ¥ 32,265 | $ 4,678 | ¥ 15,770 | ¥ 22,894 |
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements | ||||||
Allowanace for doubtful debt on accounts receivable current | ¥ 32,413 | $ 4,699 | ¥ 30,082 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2022 CNY (¥) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 CNY (¥) item | Dec. 31, 2021 USD ($) item | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Feb. 28, 2022 | Jan. 01, 2021 CNY (¥) | |
Accounting Policies | ||||||||
Closing foreign exchange rate of CNY per US$1.00 | 6.8972 | 6.8972 | ||||||
Equity securities measured at fair value using alternate measurement | ¥ 228,772 | ¥ 207,166 | ¥ 126,583 | $ 33,169 | ||||
Unrealized losses (downward adjustments) recognized | 0 | $ 0 | 0 | 0 | ||||
Equity securities without readily determinable fair value, upward price adjustment | 22,452 | 3,255 | 82,492 | 14,301 | ||||
Impairment of long lived assets | 0 | |||||||
Advertising expenses | 9,512 | 1,379 | 24,070 | 15,348 | ||||
Employee benefit expenses | 431,929 | 62,624 | 310,126 | 126,784 | ||||
Cash Consideration Paid | 63,356 | 9,186 | 52,493 | $ 8,237 | 14,650 | |||
Equity method investment, realized gain loss on disposal | 22,683 | $ 3,289 | 10,363 | $ 1,626 | ||||
Accumulated deficit | (10,102,236) | (7,451,029) | (1,464,687) | ¥ 5,684 | ||||
Cumulative unrealized gains | ¥ 119,245 | ¥ 96,793 | 14,301 | $ 17,289 | ||||
Percentage of ownership interest in equity investments without readily determinable fair value | 15.63% | |||||||
Number of reporting units | item | 2 | 2 | 2 | 2 | ||||
intangible assets with indefinite lives | ¥ 0 | ¥ 0 | ||||||
VIEs and their subsidiaries | ||||||||
Accounting Policies | ||||||||
Payment or prepayment of service fees | ¥ 18,473,000 | $ 2,678,000 | ¥ 20,157,000 | ¥ 24,869,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Property Plant and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Electronic equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Electronic equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 4 years |
Office Equipment and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Data center machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Building | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 50 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Finite Lived Intangible Assets Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Others [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 6 years |
Patents And Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 6 years |
Patents And Technology [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Trade Marks And Domain Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Software And Copyrights [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Software And Copyrights [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Total carrying value of equity (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Equity investments without readily determinable fair value: | ||||
Initial cost basis | ¥ 124,196 | $ 18,007 | ¥ 114,256 | ¥ 114,876 |
Cumulative unrealized gains | 119,245 | 17,289 | 96,793 | 14,301 |
Cumulative unrealized losses (including impairment) | (14,940) | (2,166) | ||
Foreign currency translation | 271 | 39 | (3,883) | (2,594) |
Equity investments without readily determinable fair value | 228,772 | 33,169 | 207,166 | 126,583 |
Equity investments with readily determinable fair value: | ||||
Initial cost basis | 63,356 | 9,186 | ||
Cumulative unrealized losses | (22,683) | (3,289) | ||
Foreign currency translation | 4,135 | 599 | ||
Equity investments with readily determinable fair value | 44,808 | 6,496 | ||
Total carrying value | ¥ 273,580 | $ 39,665 | ¥ 207,166 | ¥ 126,583 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Total carrying value of equity (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investments with readily determinable fair value, total fair value | ¥ 44,808 | $ 6,496 | |||
Purchase consideration payable, total losses | (28,516) | $ (4,134) | ¥ (9,249) | ||
Equity investments with readily determinable fair value, total losses | (22,452) | $ (3,255) | (82,492) | ¥ (14,301) | |
Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Purchase consideration payable, total fair value | (1,208,985) | (1,328,508) | |||
Equity investments with readily determinable fair value, total fair value | 44,808 | ||||
Purchase consideration payable, total losses | (28,516) | (9,249) | |||
Equity investments with readily determinable fair value, total losses | (22,683) | ||||
Non-recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investments accounted for using measurement alternative | 228,772 | 207,166 | |||
Equity investments accounted for using measurement alternative, total gains (losses) | 22,452 | 82,492 | |||
FairValueInputsLevel1Member | Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investments with readily determinable fair value, total fair value | 44,808 | ||||
FairValueInputsLevel2Member | Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Purchase consideration payable, total fair value | (1,208,985) | (1,328,508) | |||
FairValueInputsLevel3Member | Non-recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investments accounted for using measurement alternative | ¥ 228,772 | ¥ 207,166 |
Concentration of Risks (Details
Concentration of Risks (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration of Risk [Line Items] | |||
Percentage depreciation in foreign currency exchange rate | 8.20% | 2.30% | 6.30% |
Revenue Benchmark | One Customer | Customer Concentration Risk | |||
Concentration of Risk [Line Items] | |||
Concentration risk percentage | 20% | 22% | 10% |
Revenue Benchmark | Two customer | Customer Concentration Risk | |||
Concentration of Risk [Line Items] | |||
Concentration risk percentage | 11% | 13% | 28% |
Revenue Benchmark | Three customer | Customer Concentration Risk | |||
Concentration of Risk [Line Items] | |||
Concentration risk percentage | 15% | ||
Contract asset | Two Customers | Customer Concentration Risk | |||
Concentration of Risk [Line Items] | |||
Concentration risk percentage | 10% | 10% | |
Contract asset | One Customer | Customer Concentration Risk | |||
Concentration of Risk [Line Items] | |||
Concentration risk percentage | 10% | 10% |
BUSINESS COMBINATION - Addition
BUSINESS COMBINATION - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 CNY (¥) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Oct. 31, 2022 | Dec. 31, 2021 CNY (¥) | Apr. 30, 2021 CNY (¥) | Apr. 30, 2021 USD ($) | |
BUSINESS COMBINATION | ||||||||||
Goodwill | ¥ 4,605,724 | $ 667,767 | ¥ 4,625,115 | |||||||
Camelot Group | ||||||||||
BUSINESS COMBINATION | ||||||||||
Equity interest held | 79.53% | |||||||||
Shenzhen Yunfan | ||||||||||
BUSINESS COMBINATION | ||||||||||
Percentage of equity interests acquired | 100% | 100% | ||||||||
Cash consideration paid | ¥ 126,400 | $ 19,835 | ||||||||
Business combination intangible assets acquired | 77,000 | 12,083 | ||||||||
Goodwill | 48,814 | 7,660 | ||||||||
Business combination recognized identifiable net assets | 586 | 92 | ||||||||
Beijing Yunshu | ||||||||||
BUSINESS COMBINATION | ||||||||||
Percentage of equity interests acquired | 86.21% | 86.21% | ||||||||
Purchase consideration payable, total fair value | ¥ (7,034) | $ (1,104) | ||||||||
Camelot Group | ||||||||||
BUSINESS COMBINATION | ||||||||||
Percentage of equity interests acquired | 9.50% | |||||||||
Cash consideration paid | ¥ 751,974 | 456,000 | $ 66,114 | |||||||
Goodwill | 4,556,910 | $ 660,690 | ||||||||
Consideration paid | 5,290,553 | ¥ 5,290,553 | $ 767,058 | |||||||
Equity settled consideration | ¥ 4,538,579 | |||||||||
Beijing Camelot | ||||||||||
BUSINESS COMBINATION | ||||||||||
Percentage of equity interests acquired | 100% |
BUSINESS COMBINATION - Summary
BUSINESS COMBINATION - Summary of fair value of assets acquired and liabilities assumed (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Intangible assets: | |||||
Goodwill | ¥ 4,605,724 | $ 667,767 | ¥ 4,625,115 | ||
Camelot Group | |||||
Fair values of the assets acquired and liabilities assumed | |||||
Total fair value of purchase consideration | ¥ 5,290,553 | 5,290,553 | $ 767,058 | ||
Cash and cash equivalents | 618,439 | 89,665 | |||
Restricted cash | 1,126 | 163 | |||
Accounts receivable and other assets | 940,511 | 136,361 | |||
Property and equipment, net | 13,792 | 2,000 | |||
Intangible assets: | |||||
Deferred tax assets | 54,419 | 7,890 | |||
Deferred tax liabilities | (268,490) | (38,927) | |||
Accounts payable and other liabilities | (871,903) | (126,415) | |||
Non-controlling interests | (882,451) | (127,943) | |||
Goodwill | 4,556,910 | 660,690 | |||
Customer Relationships [Member] | Camelot Group | |||||
Intangible assets: | |||||
Intangible assets | 620,100 | 89,906 | |||
Trademarks | Camelot Group | |||||
Intangible assets: | |||||
Intangible assets | 474,000 | 68,724 | |||
Copyrights | Camelot Group | |||||
Intangible assets: | |||||
Intangible assets | ¥ 34,100 | $ 4,944 |
BUSINESS COMBINATION - Actual a
BUSINESS COMBINATION - Actual and Pro-forma Impact from the acquisition of Camelot (Details) - Camelot ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 $ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2020 CNY (¥) ¥ / shares | |
Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed [Line Items] | |||
Revenue since acquisition | ¥ 822,850 | ||
Net loss since acquisition | 7,892 | ||
Amortization expenses of intangible assets and other acquisition date fair value measure | 143,409 | ¥ 150,122 | |
Pro-forma consolidated revenue | 10,349,504 | 8,253,329 | |
Pro-forma net loss | ¥ 1,616,748 | ¥ 1,003,136 | |
Pro-forma basic loss per share | (per share) | $ 0.07 | ¥ 0.45 | ¥ 0.39 |
Pro-forma diluted loss per share | (per share) | $ 0.07 | ¥ 0.45 | ¥ 0.39 |
REVENUES, OTHER GAIN (LOSS), _3
REVENUES, OTHER GAIN (LOSS), NET AND OTHER INCOME, NET - Summary of Disaggregation of Revenue (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disaggregation of Revenue | ||||
Revenue from contract with customer, excluding assessed tax | ¥ 8,180,107 | $ 1,186,004 | ¥ 9,060,784 | ¥ 6,577,307 |
Public Cloud Service | Transferred over Time | ||||
Disaggregation of Revenue | ||||
Revenue from contract with customer, excluding assessed tax | 5,360,282 | 777,168 | 6,159,085 | 5,166,851 |
Enterprise cloud services | ||||
Disaggregation of Revenue | ||||
Revenue from contract with customer, excluding assessed tax | 2,816,976 | 408,423 | 2,897,817 | 1,372,689 |
Enterprise cloud services | Transferred at Point in Time | ||||
Disaggregation of Revenue | ||||
Revenue from contract with customer, excluding assessed tax | 711,466 | 103,153 | 2,159,869 | 1,368,544 |
Enterprise cloud services | Transferred over Time | ||||
Disaggregation of Revenue | ||||
Revenue from contract with customer, excluding assessed tax | 2,105,510 | 305,270 | 737,948 | 4,145 |
Product and Service Other | ||||
Disaggregation of Revenue | ||||
Revenue from contract with customer, excluding assessed tax | 2,849 | 413 | 3,882 | 37,767 |
Product and Service Other | Transferred at Point in Time | ||||
Disaggregation of Revenue | ||||
Revenue from contract with customer, excluding assessed tax | 1,208 | 36,611 | ||
Product and Service Other | Transferred over Time | ||||
Disaggregation of Revenue | ||||
Revenue from contract with customer, excluding assessed tax | ¥ 2,849 | $ 413 | ¥ 2,674 | ¥ 1,156 |
REVENUES, OTHER GAIN (LOSS), _4
REVENUES, OTHER GAIN (LOSS), NET AND OTHER INCOME, NET - Summary of Revenue, Remaining Performance Obligation (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||
Revenue remaining performance obligation | ¥ 93,820 | $ 13,603 |
Within One Year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||
Revenue remaining performance obligation | 52,798 | 7,655 |
More Than One Year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||
Revenue remaining performance obligation | ¥ 41,022 | $ 5,948 |
REVENUES, OTHER GAIN (LOSS), _5
REVENUES, OTHER GAIN (LOSS), NET AND OTHER INCOME, NET - Summary of Contract with Customer Liability Recognized (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET | ||||
Revenue recognized from amounts included in contract liabilities at the beginning of the period | ¥ 192,428 | $ 27,899 | ¥ 112,221 | ¥ 37,550 |
REVENUES, OTHER GAIN (LOSS), _6
REVENUES, OTHER GAIN (LOSS), NET AND OTHER INCOME, NET - Summary of other gain (loss), net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET | ||||
Gross unrealized gain on equity investments held | ¥ 22,452 | $ 3,255 | ¥ 82,492 | ¥ 14,301 |
Gross unrealized loss (including impairment) on equity investments held | (37,623) | (5,455) | ||
Net realized gain (loss) on equity investments sold | (123) | (18) | 10,363 | |
Changes in fair value of purchase consideration in a business acquisition | (28,516) | (4,134) | (9,249) | |
Total | ¥ (43,810) | $ (6,352) | ¥ 83,606 | ¥ 14,301 |
REVENUES, OTHER GAIN (LOSS), _7
REVENUES, OTHER GAIN (LOSS), NET AND OTHER INCOME, NET - Summary of other income (expense), net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
REVENUES, OTHER GAIN (LOSS), NET AND OTHER (EXPENSE) INCOME, NET | ||||
Government grants | ¥ 56,867 | $ 8,245 | ¥ 100,759 | ¥ 5,869 |
Income from ADS Reimbursement | 10,386 | 1,506 | 9,967 | 5,219 |
Value added tax transferred out | (32,766) | (4,751) | (23,721) | (20,904) |
Gain on disposal of property and equipment | 156 | 23 | 7,107 | 2,242 |
Others | (11,636) | (1,687) | 935 | (3,236) |
Total | ¥ 23,007 | $ 3,336 | ¥ 95,047 | ¥ (10,810) |
ACCOUNTS RECEIVABLE, NET - Sche
ACCOUNTS RECEIVABLE, NET - Schedule of Accounts Receivable, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
ACCOUNTS RECEIVABLE, NET | ||||||
Accounts receivable | ¥ 2,450,392 | $ 355,274 | ¥ 3,603,240 | |||
Allowance for credit losses | (47,962) | (6,954) | (32,265) | $ (4,678) | ¥ (15,770) | ¥ (22,894) |
Accounts receivable, net | ¥ 2,402,430 | $ 348,320 | ¥ 3,570,975 |
ACCOUNTS RECEIVABLE, NET - Sc_2
ACCOUNTS RECEIVABLE, NET - Schedule of the Movement in the allowance for Doubtful Accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
ACCOUNTS RECEIVABLE, NET | ||||
Balance at beginning of the year | ¥ 32,265 | $ 4,678 | ¥ 15,770 | ¥ 22,894 |
Adoption of ASC 326 | 5,684 | |||
Provision for expected credit losses | 323,848 | 46,954 | 121,731 | 44,695 |
Write-offs charged against the allowance | (273,286) | (39,623) | (101,202) | (44,096) |
Recoveries during the period | (34,865) | (5,055) | (9,718) | (7,723) |
Balance at end of the year | ¥ 47,962 | $ 6,954 | ¥ 32,265 | ¥ 15,770 |
PREPAYMENTS AND OTHER ASSETS -
PREPAYMENTS AND OTHER ASSETS - Schedule of Prepayments and Other Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current portion: | |||
Prepayments to suppliers | ¥ 194,796 | $ 28,243 | ¥ 162,528 |
Contract costs | 133,084 | 19,295 | 145,628 |
Contract assets, net | 488,226 | 70,786 | 550,068 |
VAT prepayments | 678,847 | 98,424 | 619,391 |
Interest receivable | 21,955 | 3,183 | 21,463 |
Individual income tax receivable | 3,742 | 543 | 48,949 |
Others | 91,372 | 13,247 | 138,994 |
Total | 1,612,022 | 233,721 | 1,687,021 |
Non-current portion: | |||
Prepayments for electronic equipment | 19,211 | 2,785 | 25,388 |
Others | 2,052 | 298 | 3,678 |
Total | ¥ 21,263 | $ 3,083 | ¥ 29,066 |
PREPAYMENTS AND OTHER ASSETS _2
PREPAYMENTS AND OTHER ASSETS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
PREPAYMENTS AND OTHER ASSETS | ||||
Contract with customer, asset, allowance for credit loss | ¥ 21,453 | ¥ 1,591 | $ 3,110 | |
Contract with customer asset credit loss expense | 19,862 | $ 2,880 | 2,100 | |
Contract with customer asset, allowance for credit loss, write-offs | ¥ 0 | $ 0 | ¥ 509 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Property, Plant and Equipment | |||
Property and equipment, gross | ¥ 5,921,463 | $ 858,531 | ¥ 5,446,524 |
Less: accumulated depreciation | (3,788,469) | (549,276) | (3,082,421) |
Property and equipment, net | 2,132,994 | 309,255 | 2,364,103 |
Electronic equipment | |||
Property, Plant and Equipment | |||
Property and equipment, gross | 5,421,548 | 786,051 | 5,123,149 |
Office equipment and fixtures | |||
Property, Plant and Equipment | |||
Property and equipment, gross | 15,376 | 2,229 | 15,462 |
Data center machinery and equipment | |||
Property, Plant and Equipment | |||
Property and equipment, gross | 319,652 | 46,345 | 144,328 |
Building | |||
Property, Plant and Equipment | |||
Property and equipment, gross | 161,428 | 23,405 | 15,768 |
Construction in progress | |||
Property, Plant and Equipment | |||
Property and equipment, gross | ¥ 3,459 | $ 501 | ¥ 147,817 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | ¥ 983,509 | $ 142,595 | ¥ 783,305 | ¥ 750,375 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | ¥ 1,271,548 | $ 184,357 | ¥ 1,260,487 |
Less: accumulated amortization | (263,528) | (38,208) | (90,720) |
Intangible assets, net | 1,008,020 | 146,149 | 1,169,767 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 620,500 | 89,964 | 620,100 |
Less: accumulated amortization | (130,701) | (18,950) | (32,637) |
Patents and technologies | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 60,900 | 8,830 | 67,900 |
Less: accumulated amortization | (17,763) | (2,575) | (8,138) |
Trademarks and domain names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 497,939 | 72,194 | 497,098 |
Less: accumulated amortization | (70,494) | (10,221) | (20,722) |
Software and copyrights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 88,502 | 12,832 | 71,752 |
Less: accumulated amortization | (41,286) | (5,986) | (26,692) |
Others | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 3,707 | 537 | 3,637 |
Less: accumulated amortization | ¥ (3,284) | $ (476) | ¥ (2,531) |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
INTANGIBLE ASSETS, NET | ||||
Amortization expense of intangible assets | ¥ 173,915 | $ 25,216 | ¥ 72,299 | ¥ 7,663 |
INTANGIBLE ASSETS, NET - Sche_2
INTANGIBLE ASSETS, NET - Schedule of estimated amortization expense of intangible assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Amortization expense of intangible assets | |||
2023 | ¥ 177,022 | $ 25,666 | |
2024 | 172,096 | 24,952 | |
2025 | 166,308 | 24,112 | |
2026 | 162,686 | 23,587 | |
2027 and thereafter | 329,908 | 47,832 | |
Intangible assets, net | ¥ 1,008,020 | $ 146,149 | ¥ 1,169,767 |
GOODWILL - Summary of Carrying
GOODWILL - Summary of Carrying Value of Goodwill (Details) - 12 months ended Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
GOODWILL | ||
Beginning balance | ¥ 4,625,115 | |
Disposal of a subsidiary | (15,268) | |
Adjustments to fair values of preliminary purchase price allocation | (4,123) | |
Ending balance | 4,605,724 | $ 667,767 |
Cloud service and solutions | ||
GOODWILL | ||
Beginning balance | 3,669,031 | |
Disposal of a subsidiary | (15,268) | |
Adjustments to fair values of preliminary purchase price allocation | (3,259) | |
Ending balance | 3,650,504 | 529,273 |
Cloud-based digital solutions and services | ||
GOODWILL | ||
Beginning balance | 956,084 | |
Adjustments to fair values of preliminary purchase price allocation | (864) | |
Ending balance | ¥ 955,220 | $ 138,494 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Cloud service and solutions | |
Goodwill [Line Items] | |
Impairment loss | $ 0 |
LEASES - Additional Information
LEASES - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
LEASES | ||||
Weighted average remaining lease term for operating lease | 7 years 8 months 12 days | 7 years 8 months 12 days | 8 years 3 months 18 days | 9 years 8 months 12 days |
Weighted average discount rate for operating lease | 5.88% | 5.88% | 6.18% | 6.36% |
Weighted average remaining lease term for finance lease | 9 years 3 months 18 days | 9 years 3 months 18 days | ||
Weighted average discount rate for finance lease | 5.90% | 5.90% | ||
Operating lease costs | ¥ 72,244 | $ 10,474 | ¥ 52,648 | ¥ 52,890 |
Short-term lease costs | 15,493 | 2,246 | ¥ 11,317 | ¥ 3,036 |
Depreciation of finance lease assets | 9,204 | 1,334 | ||
Interest on finance lease liabilities | 5,491 | 796 | ||
Variable lease payments | 7,237 | 1,050 | ||
Total finance lease costs | ¥ 21,932 | $ 3,180 |
LEASES - Cash paid for amounts
LEASES - Cash paid for amounts included in the measurement of lease liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
LEASES | ||||
Operating cash payments for operating leases | ¥ 47,385 | $ 6,870 | ¥ 35,214 | ¥ 60,273 |
LEASES - Lease assets obtained
LEASES - Lease assets obtained in exchange for lease obligations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
LEASES | ||||
Operating leases | ¥ 47,288 | $ 6,856 | ¥ 6,915 | ¥ 195,890 |
Finance leases | ¥ 175,324 | $ 25,420 |
LEASES - Summary of Undiscounte
LEASES - Summary of Undiscounted Future Minimum Payments under the Group's Operating Lease Liabilities (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Operating lease | ||
2023 | ¥ 139,681 | $ 20,252 |
2024 | 54,613 | 7,918 |
2025 | 32,530 | 4,716 |
2026 | 13,067 | 1,895 |
2027 and thereafter | 62,532 | 9,066 |
Total future lease payments | 302,423 | 43,847 |
Less: imputed interest | (42,641) | (6,182) |
Total lease liability balance | 259,782 | 37,665 |
Finance lease | ||
2024 | 20,485 | 2,970 |
2025 | 30,728 | 4,455 |
2026 | 30,728 | 4,455 |
2027 and thereafter | 163,881 | 23,761 |
Total future lease payments | 245,822 | 35,641 |
Less: imputed interest | (65,007) | (9,425) |
Total lease liability balance | ¥ 180,815 | $ 26,216 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Schedule of accrued expenses and other liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current portion: | |||
Customer advances | ¥ 411,467 | $ 59,657 | ¥ 378,957 |
Salary and welfare payable | 671,124 | 97,304 | 600,775 |
Purchase of property and equipment | 120,530 | 17,475 | 759,391 |
Accrued expenses | 188,533 | 27,335 | 116,021 |
Other tax and surcharges payable | 110,242 | 15,984 | 91,287 |
Deferred government grants | 17,257 | 2,502 | 8,488 |
Purchase consideration payable | 1,208,985 | 175,286 | 148,038 |
Individual income tax payable | 3,742 | 543 | 48,949 |
Others | 98,946 | 14,342 | 71,934 |
Accounts payable and accrued liabilities current | 2,830,826 | 410,428 | 2,223,840 |
Non-current portion: | |||
Deferred government grants | 104,156 | 15,101 | 6,975 |
Purchase consideration payable | 1,180,470 | ||
Finance lease liability | 180,815 | 26,216 | |
Unrecognized tax benefit | 40,539 | 5,878 | 15,954 |
Others | 45,021 | 6,527 | 29,278 |
Accounts payable and accrued liabilities noncurrent | ¥ 370,531 | $ 53,722 | ¥ 1,232,677 |
ACCRUED EXPENSES AND OTHER LI_4
ACCRUED EXPENSES AND OTHER LIABILITIES - Schedule of accrued expenses and other liabilities (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | ||||||
Jul. 31, 2020 CNY (¥) | Jul. 31, 2020 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||
Purchase consideration payable, current | ¥ 1,208,985 | $ 175,286 | ¥ 148,038 | ||||
Purchase consideration payable, non current | 1,180,470 | ||||||
Other accrued liabilities recorded as current | 98,946 | 14,342 | 71,934 | ||||
Other accrued liabilities recorded as noncurrent | 45,021 | 6,527 | 29,278 | ||||
Camelot Group | |||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||
Purchase consideration payable, current | 257,777 | 37,374 | |||||
Camelot Group | Ordinary Shares | |||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||
Purchase consideration payable, non current | ¥ 951,208 | $ 137,912 | |||||
Other Current Liabilities | |||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||
Other accrued liabilities recorded as current | 10,762 | 1,560 | 9,836 | ||||
Other Noncurrent Liabilities | |||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||
Other accrued liabilities recorded as noncurrent | ¥ 14,350 | $ 2,081 | ¥ 22,989 | ||||
ADS Reimbursement | |||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||
Reimbursement received from the depository for the establishment and maintenance of the ads program | ¥ 47,597 | $ 7,469 |
LOANS (Details)
LOANS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
LOANS | ||
Short-term bank loans | ¥ 909,500 | ¥ 1,348,166 |
Weighted average interest rate | 4.16% | 4.59% |
LOANS - Related party loans (De
LOANS - Related party loans (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
LOANS | |||
Current | ¥ 340,129 | $ 49,314 | ¥ 736,206 |
Amounts due to related parties | 413,464 | 59,947 | 472,882 |
Related party loans | 753,593 | 109,261 | 1,209,088 |
Kingsoft Group | |||
LOANS | |||
Current | 500,000 | ||
Xiaomi Group | |||
LOANS | |||
Current | 340,129 | 49,314 | 236,206 |
Amounts due to related parties | ¥ 413,464 | $ 59,947 | ¥ 472,882 |
LOANS - Unsecured loans (Detail
LOANS - Unsecured loans (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | |
LOANS | ||||
Fixed annual interest rate | 3.98% | 4.36% | ||
Kingsoft Group | ||||
LOANS | ||||
Aggregate principal amount | ¥ 500,000 | $ 78,461 | ||
Fixed annual interest rate | 4.65% |
LOANS - Other loans (Details)
LOANS - Other loans (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
LOANS | |||
Fixed annual interest rate | 3.98% | 4.36% | |
Carrying amount of the electronic equipment pledged | ¥ 585,005 | ¥ 702,424 | $ 84,818 |
LOANS - Loan repaid schedule (D
LOANS - Loan repaid schedule (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Loan repaid according to the schedule | ||
2023 | ¥ 1,259,065 | $ 182,547 |
2024 | 322,758 | 46,796 |
2025 | 81,500 | 11,816 |
2026 | 61,125 | 8,862 |
Total long term debt | ¥ 1,724,448 | $ 250,021 |
TAXATION (Details)
TAXATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
TAXATION | |||||
Deferred tax assets gross | ¥ 2,822,448 | ¥ 2,378,568 | $ 409,216 | ||
Valuation allowance on deferred tax assets | 2,415,627 | 1,881,873 | 350,233 | ||
Unrecognized tax benefits | 58,718 | 59,049 | ¥ 12,613 | 8,513 | $ 8,561 |
Unrecognized tax benefits setoff against deferred tax assets | 18,179 | 43,095 | 2,635 | ||
Unrecognized tax benefits of remaining amounts | 40,539 | 15,954 | 5,878 | ||
Unrecognized tax benefits that would impact effective tax rate | 40,539 | ¥ 15,954 | 5,878 | ||
Interest related to unrecognized tax benefits | ¥ 0 | ||||
Tax Withholding On Payment Of Interest And Dividends To Non PRC Resident Enterprises | |||||
TAXATION | |||||
Tax withholding rates on interest and dividend payments | 10% | 10% | 10% | ||
HK | |||||
TAXATION | |||||
Income tax rate | 16.50% | 16.50% | 16.50% | ||
Operating loss carryforwards | ¥ 9,490,802 | 1,376,037 | |||
CN | |||||
TAXATION | |||||
Income tax rate | 25% | 25% | 25% | ||
Operating loss carryforwards | ¥ 9,490,802 | $ 1,376,037 | |||
CN | Beijing Kingsoft Cloud Network Technology Co Ltd | Preferential Income Tax Rate | |||||
TAXATION | |||||
Income tax rate | 15% | 15% | 15% |
TAXATION - Schedule of income b
TAXATION - Schedule of income before income tax, domestic and foreign (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
TAXATION | ||||
Mainland China | ¥ (2,475,677) | $ (358,939) | ¥ (1,646,607) | ¥ (1,095,015) |
Non-mainland China | (188,238) | (27,292) | 70,592 | 147,721 |
Loss before income taxes | ¥ (2,663,915) | $ (386,231) | ¥ (1,576,015) | ¥ (947,294) |
TAXATION - Schedule of componen
TAXATION - Schedule of components of income tax expense (benefit) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
TAXATION | ||||
Current income tax expense | ¥ 59,668 | $ 8,651 | ¥ 27,593 | ¥ 15,081 |
Deferred income tax benefit | (35,195) | (5,103) | (11,852) | (177) |
Income tax expense | ¥ 24,473 | $ 3,548 | ¥ 15,741 | ¥ 14,904 |
TAXATION - Reconciliation of in
TAXATION - Reconciliation of income tax expense computed using the PRC statutory tax rate to the actual income tax expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
TAXATION | ||||
Loss before income tax | ¥ (2,663,915) | $ (386,231) | ¥ (1,576,015) | ¥ (947,294) |
Income tax computed at the mainland China statutory tax rate of 25% | (665,978) | (96,558) | (394,004) | (236,824) |
Effect of tax holiday and preferential tax rates | 52,651 | 7,634 | 7,083 | (44,121) |
Effect of different tax rates in different jurisdictions | 58,266 | 8,448 | (1,681) | 10,580 |
Other non-taxable income | (28,993) | (4,204) | (24,999) | (35,454) |
Non-deductible expenses | 5,727 | 830 | 36,719 | 14,060 |
Share based compensation costs | 90,015 | 13,051 | 108,588 | 82,528 |
Research and development super deduction | (64,718) | (9,383) | (146,639) | (113,388) |
Withholding tax and others | 10,785 | 1,564 | 9,552 | 11,581 |
Change in valuation allowance | 525,169 | 76,142 | 434,056 | 399,756 |
True-up adjustments in respect of prior year's annual tax filing | (15,195) | (2,203) | (3,474) | (83,342) |
Expiration of tax loss carryforward | 124,555 | 18,059 | ||
Tax rate change on deferred items | (67,811) | (9,832) | (9,460) | 9,528 |
Income tax expense | ¥ 24,473 | $ 3,548 | ¥ 15,741 | ¥ 14,904 |
TAXATION - Significant componen
TAXATION - Significant components of the Group's deferred tax assets and liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Deferred tax assets: | |||
Tax loss carried forward | ¥ 2,318,161 | $ 336,102 | ¥ 1,841,192 |
Accrued expenses | 84,428 | 12,241 | 235,737 |
Depreciation | 17,073 | 2,475 | 7,082 |
Allowance for credit losses | 85,666 | 12,420 | 53,436 |
Government grant | 5,779 | 838 | 4,266 |
Operating lease liabilities | 57,828 | 8,384 | 63,781 |
Accrued interest | 197,767 | 28,674 | 170,337 |
Finance lease liabilities | 47,505 | 6,888 | 0 |
Others | 8,241 | 1,194 | 2,737 |
Less: valuation allowance | (2,415,627) | (350,233) | (1,881,873) |
Deferred tax assets, net | 406,821 | 58,983 | 496,695 |
Deferred tax liabilities: | |||
Operating lease right-of-use assets | 46,367 | 6,723 | 57,300 |
One-time deduction for fixed asset purchases | 231,532 | 33,569 | 337,564 |
Long-lived assets arising from business acquisition | 238,672 | 34,603 | 277,267 |
Finance lease right-of-use assets | 41,530 | 6,021 | 0 |
Others | 15,772 | 2,287 | 22,655 |
Deferred tax liabilities, gross | 573,873 | 83,203 | 694,786 |
Net deferred tax liabilities | ¥ 167,052 | $ 24,220 | ¥ 198,091 |
TAXATION - Summary of unrecogni
TAXATION - Summary of unrecognized tax benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
TAXATION | |||
Balance at beginning of the year | ¥ 59,049 | $ 8,561 | ¥ 12,613 |
Additions from the business acquisitions | 19,551 | ||
Additions based on tax position related to current year | 15,894 | 2,304 | 26,885 |
Additions based on tax positions related to prior year | 22,462 | 3,257 | 0 |
Reductions for tax positions related to prior years | (38,687) | (5,609) | 0 |
Balance at end of the year | ¥ 58,718 | $ 8,513 | ¥ 59,049 |
SHARE-BASED PAYMENTS - Summary
SHARE-BASED PAYMENTS - Summary of the activity under the share option scheme (Details) - 2013 Share Option Scheme - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SHARE-BASED PAYMENTS | |||
Number of options - Outstanding at beginning | 61,760,202 | ||
Number of options - Granted | 8,667,040 | ||
Number of options - Forfeited | (11,272,993) | ||
Number of options - Exercised | (20,788,141) | ||
Number of options - Outstanding at ending | 38,366,108 | 61,760,202 | |
Number of options - Vested and expected | 38,366,108 | ||
Number of options - Exercisable | 25,646,851 | ||
Weighted- average exercise price - Outstanding at beginning | $ 0.07 | ||
Weighted- average exercise price - Granted | 0.07 | ||
Weighted- average exercise price - Forfeited | 0.07 | ||
Weighted- average exercise price - Exercised | 0.07 | ||
Weighted- average exercise price - Outstanding at ending | 0.07 | $ 0.07 | |
Weighted- average exercise price - Vested and expected | 0.07 | ||
Weighted- average exercise price - Exercisable | 0.07 | ||
Weighted- average grant- date fair value - Outstanding at beginning | 0.87 | ||
Weighted- average grant- date fair value - Granted | 0.36 | 2.80 | $ 1.16 |
Weighted- average grant- date fair value - Forfeited | 1.17 | ||
Weighted- average grant- date fair value - Exercised | 0.52 | ||
Weighted- average grant- date fair value - Outstanding at ending | 0.86 | $ 0.87 | |
Weighted- average grant- date fair value - Vested and expected | 0.86 | ||
Weighted- average grant- date fair value - Exercisable | $ 0.58 | ||
Weighted- average remaining contractual term - Outstanding | 6 years 3 days | 6 years 7 months 9 days | |
Weighted- average remaining contractual term - Vested and expected | 6 years 3 days | ||
Weighted- average remaining contractual term - Exercisable | 5 years 4 months 28 days | ||
Aggregate intrinsic value - Outstanding | $ 6,972 | $ 60,339 | |
Aggregate intrinsic value - Vested and expected | 6,972 | ||
Aggregate intrinsic value - Exercisable | $ 4,669 |
SHARE-BASED PAYMENTS - Addition
SHARE-BASED PAYMENTS - Additional information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2022 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2018 shares | |
SHARE-BASED PAYMENTS | |||||||||
Number of share-based awards granted | ¥ (43,981) | $ (6,377) | |||||||
Maximum | |||||||||
SHARE-BASED PAYMENTS | |||||||||
Share based compensation by share based payment arrangement vesting period | 3 years | 3 years | |||||||
Minimum | |||||||||
SHARE-BASED PAYMENTS | |||||||||
Share based compensation by share based payment arrangement vesting period | 1 year | 1 year | |||||||
2013 Share Option Scheme | |||||||||
SHARE-BASED PAYMENTS | |||||||||
Share based compensation by share based payment arrangement number of shares authorised | 209,750,000 | ||||||||
Share based compensation by share based payment arrrangement intrinsic value of options excercised during the period | ¥ 26,299 | $ 3,813 | ¥ 79,224 | ¥ 906,120 | |||||
Share based compensation by share based payment arrangement weighted average grant date fair value of awards granted during the period | $ / shares | $ 0.36 | $ 2.80 | $ 1.16 | ||||||
Aggregate fair value of the share-based awards vested | 84,098 | $ 12,193 | 51,892 | 44,135 | |||||
Share based compensation by share based payment arrangement unrecognised compensation | ¥ 39,969 | $ 5,795 | |||||||
Weighted-average period recognized | 1 year 1 month 17 days | 1 year 1 month 17 days | |||||||
Number of options - Exercised | 20,788,141 | 20,788,141 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 8,667,040 | 8,667,040 | |||||||
2013 Share Award Scheme | |||||||||
SHARE-BASED PAYMENTS | |||||||||
Share based compensation by share based payment arrangement number of shares authorised | 215,376,304 | ||||||||
Share based compensation by share based payment arrrangement intrinsic value of options excercised during the period | ¥ | 1,561 | 3,230 | |||||||
Share based compensation by share based payment arrangement weighted average grant date fair value of awards granted during the period | $ / shares | $ 0.31 | 0.31 | |||||||
Aggregate fair value of the share-based awards vested | ¥ 11,462 | $ 1,662 | 16,192 | 15,981 | |||||
Weighted-average period recognized | 1 year 4 months 6 days | 1 year 4 months 6 days | |||||||
Total unrecognized share-based compensation expenses | ¥ 5,035 | 730 | |||||||
Number of options - Exercised | 0 | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |||||||
2021 Share Award Scheme | |||||||||
SHARE-BASED PAYMENTS | |||||||||
Share based compensation by share based payment arrangement number of shares authorised | 380,528,480 | ||||||||
Share based compensation by share based payment arrrangement intrinsic value of options excercised during the period | ¥ 5,297 | $ 768 | |||||||
Share based compensation by share based payment arrangement weighted average grant date fair value of awards granted during the period | $ / shares | $ 0.33 | ||||||||
Aggregate fair value of the share-based awards vested | ¥ 18,371 | $ 2,664 | |||||||
Weighted-average period recognized | 2 years 1 month 28 days | 2 years 1 month 28 days | |||||||
Total unrecognized share-based compensation expenses | ¥ 108,162 | 15,682 | |||||||
Number of options - Exercised | 3,131,947 | 3,131,947 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 129,509,841 | 129,509,841 | |||||||
Restricted Shares | |||||||||
SHARE-BASED PAYMENTS | |||||||||
Weighted-average period recognized | 1 year | 1 year | |||||||
Restricted shares,aggregate fair value | $ | $ 6,981,396 | $ 2,278,360 | |||||||
Total unrecognized share-based compensation expenses | 30,882 | 4,477 | |||||||
Restricted shares, number of shares granted | 11,684,432 | 11,684,432 | |||||||
Restricted Shares | 2013 Share Award Scheme | |||||||||
SHARE-BASED PAYMENTS | |||||||||
Weighted-average period recognized | 1 year 7 months 20 days | 1 year 7 months 20 days | |||||||
Restricted shares, total weighted average grant-date fair value granted | $ / shares | $ 1.29 | $ 2.04 | $ 0.78 | ||||||
Restricted shares,aggregate fair value | ¥ 119,156 | $ 17,276 | ¥ 90,121 | ¥ 91,683 | |||||
Total unrecognized share-based compensation expenses | ¥ 116,666 | $ 16,915 | |||||||
Restricted shares, number of shares granted | 17,805,065 | 17,805,065 | |||||||
Camelot Award | |||||||||
SHARE-BASED PAYMENTS | |||||||||
Share based compensation by share based payment arrangement vesting period | 3 years | 3 years | |||||||
Camelot Award | 2021 Share Award Scheme | |||||||||
SHARE-BASED PAYMENTS | |||||||||
Number of share-based awards granted | ¥ | ¥ 43,981 | ||||||||
Number of shares issued upon modification of award | 27,500,715 |
SHARE-BASED PAYMENTS - Summar_2
SHARE-BASED PAYMENTS - Summary of the activity for the restricted shares issued under the share award scheme (Details) - Restricted Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SHARE-BASED PAYMENTS | |||
Number of shares - Granted | 11,684,432 | ||
2013 Share Award Scheme | |||
SHARE-BASED PAYMENTS | |||
Number of shares - Outstanding at beginning | 57,987,266 | ||
Number of shares - Granted | 17,805,065 | ||
Number of shares - Cancelled | (9,452,885) | ||
Number of shares - Vested | (17,310,087) | ||
Number of shares - Forfeited | (18,880,457) | ||
Number of shares - Outstanding at ending | 30,148,902 | 57,987,266 | |
Number of shares - Expected to vest | 30,148,902 | ||
Weighted-average grant date fair value - Outstanding at beginning | $ 1.32 | ||
Weighted-average grant date fair value - Granted | 1.29 | $ 2.04 | $ 0.78 |
Weighted-average grant date fair value - Cancelled | 1.73 | ||
Weighted-average grant date fair value - Vested | 1.05 | ||
Weighted-average grant date fair value - Forfeited | 1.37 | ||
Weighted-average grant date fair value - Outstanding at ending | 1.33 | $ 1.32 | |
Weighted-average grant date fair value - Expected to vest | $ 1.33 |
SHARE-BASED PAYMENTS - Summar_3
SHARE-BASED PAYMENTS - Summary of the activity for the options granted under the share award scheme (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
2013 Share Award Scheme | |||
SHARE-BASED PAYMENTS | |||
Number of options - Outstanding at beginning | 27,868,420 | ||
Number of options - Granted | 0 | ||
Number of options - Forfeited | (10,800,320) | ||
Number of options - Exercised | 0 | ||
Number of options - Outstanding at ending | 17,068,100 | 27,868,420 | |
Number of options - Vested and expected | 17,068,100 | ||
Number of options - Exercisable | 9,136,740 | ||
Weighted- average exercise price - Outstanding at beginning | $ 0.83 | ||
Weighted- average exercise price - Forfeited | 0.87 | ||
Weighted- average exercise price - Outstanding at ending | 0.87 | $ 0.83 | |
Weighted- average exercise price - Vested and expected | 0.87 | ||
Weighted- average exercise price - Exercisable | 0.87 | ||
Weighted- average grant- date fair value - Outstanding at beginning | 0.31 | ||
Weighted- average grant- date fair value - Granted | 0.31 | $ 0.31 | |
Weighted- average grant- date fair value - Forfeited | 0.29 | ||
Weighted- average grant- date fair value - Outstanding at ending | 0.31 | $ 0.31 | |
Weighted- average grant date fair value - Vested and expected | 0.31 | ||
Weighted- average grant- date fair value - Exercisable | $ 0.31 | ||
Weighted- average remaining contractual term - Outstanding | 6 years 11 months 19 days | 7 years 11 months 26 days | |
Weighted- average remaining contractual term - Vested and expected | 6 years 11 months 19 days | ||
Weighted- average remaining contractual term - Exercisable | 6 years 11 months 12 days | ||
Aggregate intrinsic value - Outstanding | $ 6,169 | ||
2021 Share Award Scheme | |||
SHARE-BASED PAYMENTS | |||
Number of options - Granted | 129,509,841 | ||
Number of options - Forfeited | (22,374,413) | ||
Number of options - Exercised | (3,131,947) | ||
Number of options - Outstanding at ending | 104,003,481 | ||
Number of options - Vested and expected | 104,003,481 | ||
Number of options - Exercisable | 30,927,052 | ||
Weighted- average exercise price - Granted | $ 0.01 | ||
Weighted- average exercise price - Forfeited | 0.01 | ||
Weighted- average exercise price - Exercised | 0.01 | ||
Weighted- average exercise price - Outstanding at ending | 0.01 | ||
Weighted- average exercise price - Vested and expected | 0.01 | ||
Weighted- average exercise price - Exercisable | 0 | ||
Weighted- average grant- date fair value - Granted | 0.33 | ||
Weighted- average grant- date fair value - Forfeited | 0.38 | ||
Weighted- average grant- date fair value - Exercised | 0.40 | ||
Weighted- average grant- date fair value - Outstanding at ending | 0.32 | ||
Weighted- average grant date fair value - Vested and expected | 0.32 | ||
Weighted- average grant- date fair value - Exercisable | $ 0.25 | ||
Weighted- average remaining contractual term - Outstanding | 9 years 5 months 8 days | ||
Weighted- average remaining contractual term - Vested and expected | 9 years 5 months 8 days | ||
Weighted- average remaining contractual term - Exercisable | 9 years 10 months 9 days | ||
Aggregate intrinsic value - Outstanding | $ 25,786 | ||
Aggregate intrinsic value - Vested and expected | 25,786 | ||
Aggregate intrinsic value - Exercisable | $ 7,858 |
SHARE-BASED PAYMENTS - Summar_4
SHARE-BASED PAYMENTS - Summary of assumptions used to estimate the fair value of the share options (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 08, 2018 | |
SHARE-BASED PAYMENTS | ||||
Risk-free rate, Minimum | 1.75% | 1.13% | 0.66% | |
Risk-free rate, Maximum | 2.93% | 1.62% | 1.84% | |
Expected volatility range, Minimum | 35.62% | 36.28% | 37.30% | |
Expected volatility range, Maximum | 46.22% | 38.03% | 37.80% | |
Exercise multiple, Minimum | 2.20 | 2.20 | 2.20 | |
Exercise multiple, Maximum | 2.80 | 2.80 | 2.80 | |
Fair market value per ordinary share as at valuation dates | $ 0.76 | |||
Minimum | ||||
SHARE-BASED PAYMENTS | ||||
Fair market value per ordinary share as at valuation dates | $ 0.24 | $ 1.97 | $ 0.76 | |
Maximum | ||||
SHARE-BASED PAYMENTS | ||||
Fair market value per ordinary share as at valuation dates | $ 0.73 | $ 3.49 | $ 1.94 |
SHARE-BASED PAYMENTS - Summar_5
SHARE-BASED PAYMENTS - Summary of acquisition date fair value of each share-based award is estimated (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Jan. 08, 2018 | |
SHARE-BASED PAYMENTS | ||
Fair market value per ordinary share as at valuation dates | $ 0.76 | |
Camelot Award | ||
SHARE-BASED PAYMENTS | ||
Risk-free rate | 0.21% | |
Expected volatility range | 50.56% | |
Exercise multiple | 2.20 | |
Fair market value per ordinary share as at valuation dates | $ 23 |
SHARE-BASED PAYMENTS - Summar_6
SHARE-BASED PAYMENTS - Summary of share-based compensation expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
SHARE-BASED PAYMENTS | ||||
Share-based compensation expense | ¥ 359,835 | $ 52,171 | ¥ 434,350 | ¥ 330,114 |
Cost of revenues | ||||
SHARE-BASED PAYMENTS | ||||
Share-based compensation expense | 15,618 | 2,264 | 17,481 | 10,614 |
Selling and marketing expenses | ||||
SHARE-BASED PAYMENTS | ||||
Share-based compensation expense | 68,562 | 9,940 | 72,594 | 62,270 |
General and administrative expenses | ||||
SHARE-BASED PAYMENTS | ||||
Share-based compensation expense | 187,843 | 27,235 | 193,886 | 169,101 |
Research and development expenses | ||||
SHARE-BASED PAYMENTS | ||||
Share-based compensation expense | ¥ 87,812 | $ 12,732 | ¥ 150,389 | ¥ 88,129 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | |
RESTRICTED NET ASSETS | ||
Reserve fund as percentage of registered capital | 50% | 50% |
Variable Interest Entity, Primary Beneficiary | CHINA | ||
RESTRICTED NET ASSETS | ||
Net assets restricted | ¥ 4,055,608 | $ 588,008 |
Minimum | Variable Interest Entity, Primary Beneficiary | CHINA | ||
RESTRICTED NET ASSETS | ||
Percentage of annual after tax profit to be allocated to reserve fund | 10% | |
Statutory funds as a percentage of registered capital | 50% | |
Minimum | Subsidiaries | CHINA | ||
RESTRICTED NET ASSETS | ||
Percentage of annual after tax profit to be allocated to reserve fund | 10% |
LOSS PER SHARE - Summary of ear
LOSS PER SHARE - Summary of earnings per share basic and diluted (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net loss attributable to Kingsoft Cloud Holdings Limited | ¥ (2,658,184) | $ (385,400) | ¥ (1,588,712) | ¥ (962,259) |
Accretion to redemption value of redeemable convertible preferred shares | ¥ | (19,768) | |||
Net loss attributable to ordinary shareholders - basic | (2,658,184) | (385,400) | (1,588,712) | (982,027) |
Net loss attributable to ordinary shareholders - diluted | ¥ (2,658,184) | $ (385,400) | ¥ (1,588,712) | ¥ (982,027) |
Denominator: | ||||
Weighted average number of ordinary shares outstanding-basic | 3,623,838,985 | 3,623,838,985 | 3,441,729,444 | 2,400,874,197 |
Weighted average number of ordinary shares outstanding-diluted | 3,623,838,985 | 3,623,838,985 | 3,441,729,444 | 2,400,874,197 |
Basic loss per share | (per share) | ¥ (0.73) | $ (0.11) | ¥ (0.46) | ¥ (0.41) |
Diluted loss per share | (per share) | ¥ (0.73) | $ (0.11) | ¥ (0.46) | ¥ (0.41) |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||||||||||||
Mar. 31, 2022 | Sep. 23, 2020 CNY (¥) shares | May 08, 2020 CNY (¥) shares | Feb. 29, 2020 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares | Dec. 31, 2021 CNY (¥) shares | Dec. 17, 2021 USD ($) $ / shares shares | Sep. 03, 2021 shares | Sep. 23, 2020 $ / shares | May 08, 2020 $ / shares shares | Apr. 07, 2020 USD ($) $ / shares shares | Jan. 08, 2018 $ / shares | |||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Fair value per ordinary share | $ / shares | $ 0.76 | |||||||||||||||||
Shares repurchased during the period value | ¥ | ¥ 208,385 | ¥ 26,700 | ||||||||||||||||
Ordinary shares par value (per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||
Ordinary shares authorized | 40,000,000,000 | 40,000,000,000 | 40,000,000,000 | 40,000,000,000 | ||||||||||||||
Ordinary shares issued | 3,805,284,801 | 3,805,284,801 | 3,805,284,810 | |||||||||||||||
Ordinary shares | ¥ 25,062 | $ 3,634 | ¥ 24,782 | $ 40,000 | ||||||||||||||
Camelot | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Ordinary shares issued | 247,475,446 | |||||||||||||||||
2022 Share Repurchase Program | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Shares repurchased during the period shares | 183,901,110 | 183,901,110 | ||||||||||||||||
Shares repurchased during the period value | $ | $ 100,000 | |||||||||||||||||
Repurchase period (in months) | 12 months | |||||||||||||||||
NASDAQ/NGS (GLOBAL SELECT MARKET) | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Sale of stock consideration received in the transaction | ¥ | ¥ 1,881,233 | |||||||||||||||||
Ordinary Shares | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Shares repurchased during the period shares | [1] | 183,901,110 | 183,901,110 | 5,475,254 | ||||||||||||||
Shares repurchased during the period value | ¥ | ¥ 38 | |||||||||||||||||
Revision in authorised capital | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Common stock preferred stock and temporary equity shares authorised | 4,000,000,000 | |||||||||||||||||
Ordinary shares par value (per share) | $ / shares | $ 0.001 | |||||||||||||||||
Ordinary shares authorized | 2,282,750,429 | |||||||||||||||||
Ordinary shares | $ | $ 4,000 | |||||||||||||||||
IPO | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Issuance of ordinary shares (In shares) | 30,000,000 | |||||||||||||||||
Sale of stock issue price per share | $ / shares | $ 1.13 | |||||||||||||||||
Sale of stock consideration received in the transaction | ¥ | ¥ 3,875,394 | |||||||||||||||||
Number of shares of preferred stock converted into common stock | 1,717,249,571 | |||||||||||||||||
IPO | Ordinary Shares | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Issuance of ordinary shares (In shares) | 450,000,000 | 517,500,000 | [1] | |||||||||||||||
Sale of stock issue price per share | $ / shares | $ 17 | |||||||||||||||||
Over-Allotment Option | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Issuance of ordinary shares (In shares) | 4,500,000 | |||||||||||||||||
Over-Allotment Option | NASDAQ/NGS (GLOBAL SELECT MARKET) | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Issuance of ordinary shares (In shares) | 1,250,000 | |||||||||||||||||
Over-Allotment Option | Ordinary Shares | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Issuance of ordinary shares (In shares) | 67,500,000 | |||||||||||||||||
Over-Allotment Option | Ordinary Shares | NASDAQ/NGS (GLOBAL SELECT MARKET) | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Issuance of ordinary shares (In shares) | 18,750,000 | |||||||||||||||||
Follow On Offer | NASDAQ/NGS (GLOBAL SELECT MARKET) | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Issuance of ordinary shares (In shares) | 120,000,000 | |||||||||||||||||
Sale of stock issue price per share | $ / shares | $ 2.07 | |||||||||||||||||
Follow On Offer | Ordinary Shares | NASDAQ/NGS (GLOBAL SELECT MARKET) | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Issuance of ordinary shares (In shares) | 8,000,000 | |||||||||||||||||
Sale of stock issue price per share | $ / shares | $ 31 | |||||||||||||||||
Series A Convertible Preferred Shares | Revision in authorised capital | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Temporary equity shares authorised | 458,116,000 | |||||||||||||||||
Series B Convertible Redeemable Preferred Shares | Revision in authorised capital | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Temporary equity shares authorised | 153,603,600 | |||||||||||||||||
Series C Redeemable Convertible Preferred Shares | Revision in authorised capital | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Temporary equity shares authorised | 185,665,192 | |||||||||||||||||
Series D Redeemable Convertible Preferred Shares | Revision in authorised capital | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Temporary equity shares authorised | 842,738,782 | |||||||||||||||||
Series D Plus Redeemable Convertible Preferred Shares | Revision in authorised capital | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Temporary equity shares authorised | 77,125,997 | |||||||||||||||||
Executive Officer | ||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||
Repurchase price per share | $ / shares | $ 0.70 | |||||||||||||||||
Shares repurchased during the period shares | 5,475,254 | |||||||||||||||||
Shares repurchased during the period value | $ | $ 0 | |||||||||||||||||
[1]As of December 31, 2020, 2021 and 2022, 206,506,322, 158,902,970 and 112,969,750 ordinary shares, respectively, were issued in relation to the share awards. These shares are legally issued but not outstanding. |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of related parties and nature of relationship (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Kingsoft Group | |
RELATED PARTY TRANSACTIONS | |
Nature of common ownership or management control relationships | Principal shareholder of the Company |
Xiaomi Group | |
RELATED PARTY TRANSACTIONS | |
Nature of common ownership or management control relationships | Entity controlled by a director of the Company |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Schedule of related party transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | ¥ 1,128,665 | $ 163,642 | ¥ 929,524 | ¥ 777,369 |
Related party transaction, amounts of transaction | 129,912 | 18,836 | 91,843 | 63,878 |
Public Cloud Service | Xiaomi Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | 804,647 | 116,663 | 749,597 | 655,165 |
Public Cloud Service | Kingsoft Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | 187,907 | 27,244 | 156,158 | 119,011 |
Public Cloud Service | Cheetah Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | 3,111 | |||
Public Cloud Service | Others | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | 50,629 | 7,341 | ||
Others | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | 0 | 0 | 74 | 82 |
Others | Xiaomi Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | 82 | |||
Others | Kingsoft Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | 74 | |||
Purchase of Services | Xiaomi Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Related party transaction, amounts of transaction | 144 | 21 | 1,349 | 2,177 |
Interest expense on loan | Xiaomi Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Related party transaction, amounts of transaction | 48,707 | 7,062 | 16,633 | |
Interest expense on loan | Kingsoft Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Related party transaction, amounts of transaction | 18,364 | 2,663 | 4,088 | |
Rental of office space and administrative services | Kingsoft Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Related party transaction, amounts of transaction | 13,931 | 2,020 | 13,321 | 13,801 |
Rental of building | Xiaomi Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Related party transaction, amounts of transaction | 48,766 | 7,070 | 56,452 | 47,900 |
Enterprise cloud services | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | 85,482 | 12,394 | 23,695 | ¥ 0 |
Enterprise cloud services | Xiaomi Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | 74,590 | 10,815 | 22,857 | |
Enterprise cloud services | Kingsoft Group | ||||
RELATED PARTY TRANSACTIONS | ||||
Revenue from related parties | ¥ 10,892 | $ 1,579 | ¥ 838 |
RELATED PARTY TRANSACTIONS - _3
RELATED PARTY TRANSACTIONS - Schedule of related party transactions (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
RELATED PARTY TRANSACTIONS | |||
Operating lease right-of-use assets | ¥ 220,539 | $ 31,975 | ¥ 256,451 |
Operating lease liabilities | 259,782 | 37,665 | |
Xiaomi Group | |||
RELATED PARTY TRANSACTIONS | |||
Operating lease right-of-use assets | 167,697 | 24,314 | 210,551 |
Operating lease liabilities | 224,346 | 32,527 | ¥ 238,180 |
Kingsoft Group | |||
RELATED PARTY TRANSACTIONS | |||
Operating lease right-of-use assets | 2,625 | 381 | |
Operating lease liabilities | ¥ 3,634 | $ 527 |
RELATED PARTY TRANSACTIONS - _4
RELATED PARTY TRANSACTIONS - Schedule of related party balances (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Amounts due from related parties: | |||
Amounts due from related parties | ¥ 252,263 | $ 36,575 | ¥ 212,901 |
Amounts due to related parties: | |||
Amounts due to related parties | 841,191 | 121,962 | 1,309,317 |
Kingsoft Group | Trade related | |||
Amounts due from related parties: | |||
Amounts due from related parties | 34,550 | 5,009 | 26,868 |
Amounts due to related parties: | |||
Amounts due to related parties | 14,069 | 2,040 | 15,092 |
Kingsoft Group | Non-trade related | |||
Amounts due from related parties: | |||
Amounts due from related parties | 10,868 | 1,576 | 10,863 |
Amounts due to related parties: | |||
Amounts due to related parties | 29,284 | 4,246 | 529,284 |
Xiaomi Group | Trade related | |||
Amounts due from related parties: | |||
Amounts due from related parties | 200,577 | 29,081 | 175,170 |
Amounts due to related parties: | |||
Amounts due to related parties | 44,245 | 6,415 | 55,853 |
Xiaomi Group | Non-trade related | |||
Amounts due to related parties: | |||
Amounts due to related parties | 753,593 | 109,261 | ¥ 709,088 |
Others | Trade related | |||
Amounts due from related parties: | |||
Amounts due from related parties | ¥ 6,268 | $ 909 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jun. 09, 2023 agreement | May 23, 2022 agreement | Sep. 30, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Oct. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |||||||
Capital expenditure commitments | ¥ 34,287 | $ 4,971 | |||||
Number of non-cancelable internet data center service agreements | 2 | 2 | |||||
Total contractual minimum purchase commitments | 1,250,000 | 181,233 | |||||
Remaining purchase commitment | 254,303 | $ 36,870 | |||||
Camelot Group | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||
Equity interest acquired (in percent) | 9.50% | ||||||
Cash consideration | ¥ 751,974 | ¥ 456,000 | $ 66,114 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) -Schedule of accumulated other comprehensive income (loss) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Beginning Balance | ¥ (207,882) | ¥ (68,440) | ¥ 484,348 | |
Foreign currency translation adjustments, net of tax of nil | 660,956 | (139,442) | (552,788) | |
Ending Balance | ¥ 453,074 | $ 65,690 | ¥ (207,882) | ¥ (68,440) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustments tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed balance sheets (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 17, 2021 USD ($) | Jan. 01, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Current assets: | ||||||||
Cash and cash equivalents | ¥ 3,419,166 | $ 495,732,000 | ¥ 4,217,528 | |||||
Short-term investments | 1,253,670 | 181,765,000 | 2,491,056 | |||||
Prepayments and other assets | 1,612,022 | 233,721,000 | 1,687,021 | |||||
Total current assets | 9,048,353 | 1,311,888,000 | 12,412,816 | |||||
Non-current assets: | ||||||||
Total non-current assets | 8,267,878 | 1,198,729,000 | 8,665,224 | |||||
Total assets | 17,316,231 | 2,510,617,000 | 21,078,040 | |||||
Current liabilities: | ||||||||
Income tax payable | 51,892 | 7,524,000 | 60,217 | |||||
Total current liabilities | 6,658,626 | 965,408,000 | 7,515,880 | |||||
Other liabilities | 370,531 | 53,722,000 | 1,232,677 | |||||
Total non-current liabilities | 1,074,106 | 155,731,000 | 2,069,737 | |||||
Total liabilities | 7,732,732 | 1,121,139,000 | 9,585,617 | |||||
Commitments and contingencies | ||||||||
Shareholders' equity: | ||||||||
Ordinary shares (par value of US$0.001 per share; 4,000,000,000 and 40,000,000,000 shares authorized, 3,805,284,810 and 3,805,284,801 shares issued, 3,646,381,840 and 3,687,612,015 shares outstanding as of December 31, 2021 and 2022, respectively) | 25,062 | 3,634,000 | 24,782 | $ 40,000,000 | ||||
Treasury shares | (208,385) | (30,213,000) | ||||||
Additional paid-in capital | 18,648,205 | 2,703,736,000 | 18,245,801 | |||||
Accumulated deficit | (10,102,236) | (1,464,687,000) | (7,451,029) | ¥ 5,684 | ||||
Accumulated other comprehensive (loss) income | 453,074 | 65,690,000 | (207,882) | ¥ (68,440) | ¥ 484,348 | |||
Total equity | 9,583,499 | 1,389,478,000 | 11,492,423 | $ 1,803,412 | 8,240,050 | (4,197,259) | ||
Total liabilities, non-controlling interests and shareholders' equity | 17,316,231 | 2,510,617,000 | 21,078,040 | |||||
Parent Company | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 169,743 | 24,610,000 | 69,393 | $ 10,061,000 | ¥ 68,012 | ¥ 540,361 | ||
Short-term investments | 1,029,472 | |||||||
Prepayments and other assets | 34,141 | 4,951,000 | 53,618 | |||||
Amounts due from subsidiaries (other than WFOE) | 4,354,380 | 631,326,000 | 5,408,311 | |||||
Amounts due from WFOE | 100,000 | 14,499,000 | 100,000 | |||||
Total current assets | 4,658,264 | 675,386,000 | 6,660,794 | |||||
Non-current assets: | ||||||||
Investments in subsidiaries | 5,518,634 | 800,127,000 | 5,328,424 | |||||
Total non-current assets | 5,518,634 | 800,127,000 | 5,328,424 | |||||
Total assets | 10,176,898 | 1,475,513,000 | 11,989,218 | |||||
Current liabilities: | ||||||||
Accrued expenses and other liabilities | 1,309,490 | 189,858,000 | 182,075 | |||||
Income tax payable | 2,764 | 401,000 | 3,307 | |||||
Amounts due to WFOE | 5,287 | 767,000 | 4,840 | |||||
Amounts due to VIEs and VIEs' subsidiaries | 43,987 | 6,377,000 | 6 | |||||
Amounts due to related parties | 829 | |||||||
Total current liabilities | 1,361,528 | 197,403,000 | 191,057 | |||||
Other liabilities | 14,350 | 2,081,000 | 1,194,212 | |||||
Total non-current liabilities | 14,350 | 2,081,000 | 1,194,212 | |||||
Total liabilities | 1,375,878 | 199,484,000 | 1,385,269 | |||||
Commitments and contingencies | ||||||||
Shareholders' equity: | ||||||||
Ordinary shares (par value of US$0.001 per share; 4,000,000,000 and 40,000,000,000 shares authorized, 3,805,284,810 and 3,805,284,801 shares issued, 3,646,381,840 and 3,687,612,015 shares outstanding as of December 31, 2021 and 2022, respectively) | 25,062 | 3,634,000 | 24,782 | |||||
Treasury shares | (208,385) | (30,213,000) | ||||||
Additional paid-in capital | 18,648,205 | 2,703,736,000 | 18,245,801 | |||||
Accumulated deficit | (10,116,936) | (1,466,818,000) | (7,458,752) | |||||
Accumulated other comprehensive (loss) income | 453,074 | 65,690,000 | (207,882) | |||||
Total equity | 8,801,020 | 1,276,029,000 | 10,603,949 | |||||
Total liabilities, non-controlling interests and shareholders' equity | ¥ 10,176,898 | $ 1,475,513,000 | ¥ 11,989,218 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed balance sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 17, 2021 |
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | $ 0.001 |
Ordinary shares authorized | 40,000,000,000 | 40,000,000,000 | 40,000,000,000 |
Common stock, shares, issued | 3,805,284,801 | 3,805,284,810 | |
Common stock, shares, outstanding | 3,508,413,941 | 3,646,381,840 | |
Parent Company | |||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | |
Ordinary shares authorized | 40,000,000,000 | 40,000,000,000 | |
Common stock, shares, issued | 3,805,284,801 | 3,805,284,810 | |
Common stock, shares, outstanding | 3,508,413,941 | 3,646,381,840 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed statements of comprehensive loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Operating expenses: | ||||
General and administrative expenses | ¥ (1,149,677) | $ (166,687) | ¥ (601,702) | ¥ (379,892) |
Total operating expenses | (2,680,952) | (388,701) | (2,163,680) | (1,564,233) |
Interest income | 80,743 | 11,707 | 71,942 | 77,118 |
Foreign exchange gain (loss) | (334,629) | (48,517) | 37,822 | 188,800 |
Other income, net | 23,007 | 3,336 | 95,047 | (10,810) |
Other gain, net | (43,810) | (6,352) | 83,606 | 14,301 |
Loss before income taxes | (2,663,915) | (386,231) | (1,576,015) | (947,294) |
Income tax expense | (24,473) | (3,548) | (15,741) | (14,904) |
Net loss attributable to Kingsoft Cloud Holdings Limited | (2,658,184) | (385,400) | (1,588,712) | (962,259) |
Other comprehensive income (loss), net of tax of nil: | ||||
Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders | (1,997,228) | (289,570) | (1,728,154) | (1,515,047) |
Accretion to redemption value of redeemable convertible preferred shares | (19,768) | |||
Comprehensive loss attributable to ordinary shareholders | (1,997,228) | (289,570) | (1,728,154) | (1,534,815) |
Parent Company | ||||
Operating expenses: | ||||
General and administrative expenses | (148,392) | (21,515) | (40,913) | (27,052) |
Total operating expenses | (148,392) | (21,515) | (40,913) | (27,052) |
Interest income | 12,430 | 1,802 | 15,224 | 10,199 |
Foreign exchange gain (loss) | (39,426) | (5,717) | 10,198 | 30,931 |
Other income, net | 10,372 | 1,504 | 9,889 | 5,377 |
Other gain, net | (37,764) | (5,475) | ||
Share of losses of subsidiaries | (264,260) | (38,313) | (121,100) | (171,421) |
Contractual interests in VIEs and VIEs' subsidiaries | (2,190,364) | (317,573) | (1,461,042) | (809,672) |
Loss before income taxes | (2,657,404) | (385,287) | (1,587,744) | (961,638) |
Income tax expense | (780) | (113) | (968) | (621) |
Net loss attributable to Kingsoft Cloud Holdings Limited | (2,658,184) | (385,400) | (1,588,712) | (962,259) |
Other comprehensive income (loss), net of tax of nil: | ||||
Foreign currency translation adjustments | 660,956 | 95,830 | (139,442) | (552,788) |
Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders | (1,997,228) | (289,570) | (1,728,154) | (1,515,047) |
Accretion to redemption value of redeemable convertible preferred shares | (19,768) | |||
Comprehensive loss attributable to ordinary shareholders | ¥ (1,997,228) | $ (289,570) | ¥ (1,728,154) | ¥ (1,534,815) |
CONDENSED FINANCIAL INFORMATI_6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed Statements of Comprehensive Loss (Parethetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Other comprehensive income (loss), net of tax | ¥ 0 | ¥ 0 | ¥ 0 |
Parent Company | |||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||
Other comprehensive income (loss), net of tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONDENSED FINANCIAL INFORMATI_7
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Net cash (used in) generated from operating activities | ¥ 188,974 | $ 27,398 | ¥ (708,869) | ¥ (290,433) |
Net cash (used in) generated from investing activities | (32,865) | (4,765) | (421,623) | (4,314,003) |
Net cash generated from (used in) financing activities | (1,152,146) | (167,045) | 2,212,487 | 6,124,153 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (922,895) | (133,807) | 1,081,995 | 1,519,717 |
Cash and cash equivalents at beginning of the year | 4,217,528 | |||
Cash and cash equivalents at end of the year | 3,419,166 | 495,732 | 4,217,528 | |
Parent Company | ||||
Net cash (used in) generated from operating activities | (40,310) | (5,844) | 1,178,019 | (6,203,310) |
Net cash (used in) generated from investing activities | 358,010 | 51,907 | (1,179,393) | (218,674) |
Net cash generated from (used in) financing activities | (215,923) | (31,306) | (815) | 5,945,666 |
Effect of exchange rate changes on cash and cash equivalents | (1,427) | (208) | 3,570 | 3,969 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 100,350 | 14,549 | 1,381 | (472,349) |
Cash and cash equivalents at beginning of the year | 69,393 | 10,061 | 68,012 | 540,361 |
Cash and cash equivalents at end of the year | ¥ 169,743 | $ 24,610 | ¥ 69,393 | ¥ 68,012 |