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Kingsoft Cloud Kingsoft Cloud Announces Unaudited Third Quarter 2021 Financial Results November 24 , 2021 BEIJING , Nov. 24 , 2021 ( GLOBE NEWSWIRE ) -- Kingsoft Cloud Holdings Limited ( " Kingsoft Cloud " or the " Company " ) ( NASDAQ : KC ) , a leading independent cloud service provider in China , today announced its unaudited financial results for the third quarter ended September 30 , 2021 . Mr. Yulin Wang , Chief Executive Officer of Kingsoft Cloud , commented , " As the largest independent cloud service provider in China , we continue to execute our growth strategies as we strive to ' become the most trusted cloud partner for our customers , and create the digital future together ' . Despite headwinds in the macro environment , we are making great strides in building and strengthening relationships with premium customers . Last quarter we engaged with Meituan as our new customer . We have seen these newly engaged premium customers continue to contribute more to our incremental public cloud revenues . We are proud to announce that Pinduoduo , one of the largest e - commerce platforms in China , became a new customer this quarter . We expect the new customer engagement trend continue to boost our public cloud growth . In addition , we have captured the new opportunities amid the regulation changes and started working with Shouqi , one of the emerging ride - hailing applications to empower them navigating the shifting landscape in China since July this year . Through these cooperation , we made further progress in enriching and diversifying our products and solution offerings in different sectors . And lastly , we are on track of integrating Camelot as a part of our efforts to build out our enterprise cloud services business . They currently serve over 500 premium customers and own multiple fulfillment centers , and we are now working on cross selling our services and enhancing our execution capabilities . We believe we are well positioned for long - term and healthy growth in this new era of digitalization . " Mr. Henry He , Chief Financial Officer of Kingsoft Cloud added , " Our total revenues were RMB2,413.8 million , up 40 % year - over - year . Revenue from public cloud services was RMB1,686.0 million . For the second time in a row , our public cloud incremental revenues rose over RMB100 million sequentially , and it was the seventh consecutive quarterly revenue increase since our IPO . Revenue from enterprise cloud services was RMB726.9 million , a year - over - year increase of 78 % . In October , we held our inaugural Kingsoft Cloud Summit & Investor Day . We would like to express our appreciation for all those who attended and for your continued support . " Third Quarter 2021 Financial Results Total Revenues reached RMB2,413.8 million ( US $ 374.61 million ) , representing an increase of 39.6 % from RMB1,728.8 million in the same period of 2020. The increases were due to the growth in both public cloud services and enterprise cloud services for our premium customers . • Revenues from public cloud services were RMB1,686.0 million ( US $ 261.7 million ) , representing an increase of 28.7 % from RMB1,309.7 million in the same period of 2020 and a quarter - over - quarter incremental increase of RMB135.2 million . Revenues from public cloud services have been increasing for seven consecutive quarters since our first quarterly results after IPO . The increase was mainly due to our stable relations with top premium customers , engagement with new high - profile customers and cross - selling of our diversified products and solutions . • Revenues from enterprise cloud services were RMB726.9 million ( US $ 112.8 million ) , representing an increase of 77.7 % from RMB409.1 million in the same period of 2020. The increase was mainly due to the strong demand in the market and our capabilities to provide industry - specific solutions , partially offset by the power shortage issues which delayed certain delivery process of enterprise cloud projects . • Other revenues were RMB0.9 million ( US $ 0.1 million ) . 1 This announcement contains translations of certain Renminbi ( RMB ) amounts into U.S. dollars ( US $ ) at a specified rate solely for the convenience of the reader . Unless otherwise noted , the translation of RMB into US $ has been made at RMB6.4434 to US $ 1.00 , the noon buying rate in effect on September 30 , 2021 as certified for customs purposes by the Federal Reserve Bank of New York . Cost of revenues was RMB2,325.4 million ( US $ 360.9 million ) , representing an increase of 43.9 % from RMB1,615.9 million in the same period of 2020. IDC costs increased by 33.1 % to RMB1,410.9 million ( US $ 219.0 million ) from RMB1,060.1 million in the same period of 2020 , in line with the Company's expanding business . Depreciation and amortization costs were RMB200.0 million ( US $ 31.0 million ) , compared with RMB156.5 million in the same period of 2020 . Gross profit decreased by 21.7 % to RMB88.4 million ( US $ 13.7 million ) , from RMB112.9 million in the same period in 2020. Gross margin was 3.7 % , compared with 6.5 % in the same period in 2020 . Non - GAAP gross profit² decreased by 19.7 % to RMB92.2 million ( US $ 14.3 million ) , from RMB114.8 million in the same period in 2020. Non - GAAP gross margin was 3.8 % , compared with 6.6 % in the same period in 2020. The decrease was primarily due to lower than expected utilization of our underlying public cloud infrastructure which was budgeted based on demand forecast as of the beginning of the year , and industry - wide public cloud demand turned out to be lower than expected . Selling and marketing expenses were RMB132.2 million ( US $ 20.5 million ) , compared with RMB96.8 million in the same period in 2020 . General and administrative expenses were RMB156.6 million ( US $ 24.3 million ) , compared with RMB91.3 million in the same period in 2020 . Research and development expenses were RMB268.7 million ( US $ 41.7 million ) , compared with RMB167.6 million in the same period in 2020 .