Kingwu Financial News | Kingsoft Cloud (03896) showed strength against the market, rising by 5.88% as of the time of publication to HK$2.34 with a turnover of 0.339 billion Hong Kong dollars.

On the news front, recently, Kingsoft Cloud announced that in order to accelerate its investment in artificial intelligence infrastructure, on November 11, 2024, Peking Kingsoft Cloud Network Technology Co., Ltd. (a consolidated entity of the company, "Kingsoft Cloud Network") and Citic Financial Leasing Co., Ltd. reached a financing lease agreement through fair negotiation. Under this agreement, Citic Financial Leasing agreed to provide financing lease services to Kingsoft Cloud Network through the method of post-sale and leaseback of several servers, with a total principal amount of RMB 0.25 billion. The term of the agreement is 3 years, with an initial annual interest rate of 4.35%.

Morgan Stanley's research report stated that Kingsoft Cloud, a subsidiary of Kingsoft, recently announced that it had entered into a financing lease agreement to provide funding for its artificial intelligence capital expenditure. It is expected that Kingsoft Cloud will repay the shareholder loan of 1.5 billion yuan on time. JPMorgan mentioned that the demand for edge artificial intelligence (Edge AI) and advanced driver-assistance systems (ADAS) for Xiaomi's new electric vehicle business, a key customer of Kingsoft Cloud, is continuously increasing, which is likely to expand its investment in artificial intelligence. With a relatively large investment scale, it can significantly alleviate the capital expenditure burden of Kingsoft Cloud, enabling it to achieve asset-light.