킹소프트 클라우드(KC) 2026년 2분기 실적 발표 콜: AI 매출 성장이 첫 조정 영업이익 견인

킹소프트 클라우드(NASDAQ: KC)가 AI 클라우드 수요 가속화에 힘입어 분기 매출 최대치를 기록하고 조정 영업이익이 처음으로 흑자 전환했다고 발표했다. 경영진은 AI 연산 능력 확장을 지속하는 한편, 연간 설비투자(CapEx) 기본 전망치를 유지했다.

핵심 요약

• 2026년 2분기 매출은 AI 클라우드 수요 증가에 힘입어 전년 동기 대비 31% 증가한 30억 7,000만 위안을 기록해 분기 기준 최대치를 달성했다.
• AI 클라우드 총 청구액은 전년 동기 대비 82% 증가한 13억 3,000만 위안을 기록했다. 이는 퍼블릭 클라우드 매출의 56%, 전체 매출의 43% 이상을 차지했다.
• 조정 매출총이익률은 15.4%로 전분기 대비 2.4%포인트, 전년 동기 대비 0.5%포인트 상승했다.
• 조정 영업이익은 1억 2,400만 위안을 기록했으며, 이익률은 사상 최고치인 4.0%를 달성했다. 이는 회사의 첫 조정 영업이익 흑자 전환이다.
• 퍼블릭 클라우드 매출은 전년 동기 대비 45% 증가한 23억 6,000만 위안을 기록했다. MaaS 매출은 2026년 1분기 대비 12배 이상 증가했다.
• 설비투자, 사용권 자산, 금융 리스를 포함한 해당 분기 AI 인프라 투자 규모는 33억 위안에 달했다.

주요 재무 데이터

사업 및 경영 실적

AI 클라우드는 킹소프트 클라우드의 핵심 성장 동력으로 유지되었다. 회사 측은 AI 클라우드 고객층이 인터넷 서비스, AI 연구소, 체화된 AI(Embodied AI), 자율주행, 과학용 AI, 핀테크, 게임, 온라인 비디오 등으로 다변화되었다고 밝혔다. 경영진은 이러한 고객 다변화가 연산 자원의 유연한 배정과 강한 가격 결정력을 뒷받침한다고 설명했다.

샤오미 및 킹소프트 생태계로부터 발생한 매출은 전년 동기 대비 28% 증가한 8억 1,000만 위안을 기록하며 전체 매출의 26%를 차지했다. 상반기 해당 생태계 대상 퍼블릭 클라우드 매출은 54% 증가했다. 또한 주주들은 샤오미와의 연계 거래 한도 상향안을 승인하여 2026년과 2027년 합산 한도가 100억 위안으로 확대되었다.

킹소프트 클라우드의 MaaS 플랫폼은 120개 모델을 지원하며 230개 이상의 기업 고객에게 서비스를 제공했다. 경영진은 고성능 오픈소스 중국형 모델의 채택 확대와 에이전트 기반 활용 사례의 증가를 이러한 빠른 성장의 원인 중 하나로 꼽았다.

회사는 또한 보안 샌드박스 환경, 지식 및 메모리 관리, 평가, 거버넌스를 포함하는 에이전트 키트(Agent kits)를 출시했다. 아울러 자원 스케줄링, 가동률 및 모델 배포 효율성을 개선하기 위해 학습 및 추론 플랫폼을 업그레이드했다.

엔터프라이즈 클라우드 매출은 7억 1,000만 위안을 기록했다. 경영진은 인도 및 매출 인식이 일반적으로 하반기에 집중되므로 최근의 성장을 직선적으로 확장 해석해서는 안 된다고 설명했다. 회사는 또한 일부 프로젝트 기반 사업을 운영 기반 모델로 전환하고 있으며, 이는 퍼블릭 클라우드 매출로 분류될 수 있다.

경영진 전망

경영진은 연간 설비투자(CapEx) 기본 전망치를 유지했다. 사용권 자산과 금융 리스를 포함한 투자는 2026년 상반기에 62억 위안에 달했으며, 이는 2025년 전체 연간 투자 지표의 75% 이상에 해당하는 수준이다.

회사는 컴퓨팅 자산 활용도, 수익성, 현금 창출 능력을 개선하는 동시에 AI 인프라에 대한 투자를 지속할 계획이다. 경영진은 투자 결정이 수요에 기반하고 자본 효율성에 중점을 두어 이루어질 것임을 강조했다.

리스크 및 주요 관전 포인트

• 경영진은 AI 반도체 공급 부족을 장기적인 산업 환경으로 설명했다. 킹소프트 클라우드는 공급업체를 다변화하고 국산 반도체와의 호환성을 개선하여 이에 대응하고 있다.
• MaaS 수익성은 토큰 가격, 신규 모델 출시, 고객의 모델 선호도 및 운영 효율성에 따라 변동될 수 있다.
• 엔터프라이즈 클라우드 프로젝트 시점은 특히 국유 기업 및 정부 기관 등 고객의 예산 편성 변화에 민감하게 작용한다.
• AI 인프라 구매는 비교적 소수의 대형 프로젝트에 집중되어 있어 월별 및 분기별 CapEx 변동성이 커질 수 있다.
• 지속적인 AI 용량 확장은 감가상각비를 증가시키므로 투자가자본수익률(ROIC)을 유지하려면 지속적인 가동률 확보가 필요하다.

애널리스트 Q&A 주요 내용

경영진은 연산 능력 서비스와 MaaS가 서로 다른 리스크 및 수익 특성을 갖고 있다고 말했다. 연산 능력 계약은 장기 계약을 통해 가동률에 대한 높은 가시성을 제공하는 반면, MaaS는 더 나은 수익성을 제공할 수 있지만 토큰 가격 책정, 모델 변화, 운영 효율성에 더 많이 노출되어 있다. 따라서 두 모델 간의 자원 배분은 동적으로 조정될 예정이다.

경쟁적 입지와 관련해 경영진은 우선시해야 할 자체 모델이 없는 중립적 클라우드 제공업체로서 킹소프트 클라우드의 역할을 강조했다. 회사는 자체 연산 능력과 인프라 역량을 활용해 마진과 서비스 신뢰성을 지원하는 동시에 고객 선호도에 따른 모델을 제공할 수 있다.

가격 책정과 관련해 경영진은 스토리지 및 연산 서비스의 가격 인상이 고객들에게 전반적으로 받아들여졌다고 밝혔다. 일부 사례에서는 늘어난 비용을 전가하는 데 그치지 않고 수익성을 개선하기도 했다. 또한 보다 자산 경량화(asset-light)된 매니지드 서비스 프로젝트를 추진 중이다.

경영진은 프로젝트, 회수 확정성, 마진, 고정 자산, 감가상각 정책에 따라 수익이 다르기 때문에 MaaS와 연산 능력 서비스에 대한 별도의 ROIC 수치를 제시하지 않았다. 그럼에도 불구하고 영업 레버리지가 개선되고 고정비가 분산됨에 따라 전체 ROIC가 점차 회복되고 있다고 밝혔다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good morning, ladies and gentlemen, and thank you for standing by for Kingsoft Cloud's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note that today's call is being recorded. I will now turn the call over to Mr. Jackie Zou, Senior Director of Capital Markets at Kingsoft Cloud. Jackie, please go ahead.

Unknown Executive

Thank you, operator. Hello, everyone, and thank you for joining us today. Kingsoft Cloud's Second Quarter 2026 earnings release was issued earlier today and is available on our IR website and DuoReswire. Joining us today are Ms. Zou Tao, Chairman and CEO; Ms. Yi Li, CFO, Mr. Liu Tao, Senior Vice President; Mr. Ken Kayan, Senior Vice President; Mr. Yu Jung, Vice President Mr. Joe Rio, Batumi Vice President; and Mr. Clark Ken, Board Secretary and Associate Vice President.

Mr. Zou will discuss our business performance and key developments followed by Ms. Li with a review of our financial results. Management will then take your questions. Consecutive interpretation will be provided for convenience and for reference only.

In the event of APs prudency, management statements in the original language will prevail. Before we begin, I would like to remind you that today's call contains forward-looking statements made under the safe harbor provisions of U.S. Private Securities Litigation Reform tax of [indiscernible]. These statements involve risks and uncertainties and actual results may differ materially from those expressed or implied by the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially is included in the company's filings with the U.S. SEC. The company undertakes no obligation to update any forward-looking statements, except as required by [indiscernible] Unless otherwise stated, all financial figures discussed on today's call are denominated in renminbi.

With that, it is my pleasure to turn the call over to our Chairman and CEO, Mr. Zou. Mr. Zou, please go ahead.

Tao Zou

[Interpreted]

Hello, everyone, and welcome to Kingsoft Cloud's Second Quarter 2026 Earnings Call. I am Zou Tao, CEO of Kingsoft Cloud. This quarter, we saw further evolution in the AI cloud market, the rapid growth of the open source model ecosystem is creating significant opportunities for neutral cloud providers. At the same time, our long-held mission of bringing AI to every industry becoming a reality through a combination of model as service, agent as service and FTE services.

Against this backdrop, Kingsoft Cloud remains committed to technology leadership and high-quality sustainable growth. We are accelerating the development of our AI cloud mass and FTE businesses with encouraging progress. First, AI continues to drive strong revenue growth. Total revenue reached a record of RMB 3.07 billion, up 31% year-over-year. AI cloud gross billings increased 82% to RMB 1.33 billion and accounted for 56% of public cloud revenue.

Mass revenue also rose strongly with Q2 revenue up more than 12x from the Q1 level. Second, profitability improved significantly. Adjusted gross margin rose to 15.4%, up 2.4 percentage points quarter-over-quarter. Operating profit turned positive for the first time with adjusted operating margin reaching a record high of 4.0%. This reflects our continued efforts to capture AI opportunities, improve revenue quality and drive greater operating efficiency.

Third, our customer mix continued to improve with stronger momentum both within and outside our ecosystem. Revenue from the [indiscernible] Kingsoft ecosystem reached RMB 810 million, up 28% year-over-year and accounting for 26% of total revenue. Revenue from our top 5 nonecosystem customers grew 51%.

Our AI cloud business now serves a broad range of sectors, including internet services, front care AI labs, embody AI, autonomous driving, AI foci, Fintech, gaming and online video to name a few. This diversified customer base supports continued growth while allowing us to allocate computing resources more flexibly and strengthen our pricing power and business resilience.

Now let me walk you through our business progress in the second quarter of 2026. In public cloud, revenue reached RMB 2.36 billion, up 45% year-over-year. First, Xiaomi continues to expand AI across its human car on ecosystem, while WPS AI continues to advance. As the only strategic platform for the Xiaomi and Kingsoft ecosystem, we see substantial AI-driven growth opportunities.

In June, our shareholders approved a further increase in the annual caps who connected transactions with Xiaomi. The combined HEPS for 2026 and 2027 now total RMB 10 billion, 39% higher than the full year adjustment. In the first half, public cloud revenue from Xiaomi and Kingsoft grew 54% year-over-year. Second, we further strengthened the mass capabilities of our [indiscernible] platform. [indiscernible] now supports 120 models with major new models launched on the platform in sync with their market release and serves more than 230 enterprise customers. Third, we defend cooperation with leading customers in emerging sectors. We delivered large-scale computing clusters to leading embody AI and autonomous driving customers, supporting rapid model iteration and expanded our cooperation with a leading AI for science customers to support the growth of this new business.

In Enterprise Cloud, revenue reached RMB 710 million. In public services, we signed an agreement with the [indiscernible] Communications Administration of the Yang Zou River to build Zanghai Cloud, a dedicated digital infrastructure platform for Young River shipping. We also followed a strategic partnership with the Wuhan municipal data bureau and Wuhan Cloud across computing resource interconnection, digital governance, intelligent computing applications and ecosystem development.

In digital health, we are leading a project under the national key R&D program on biology and information integration to develop a cloud-based virtual surgery platform, which has been deployed in more than 30 hospitals natural [indiscernible] In Enterprise Services, we defend our cooperation with [indiscernible] to jointly build and operate the Guangzhou Provincial Public Services Cloud under an integrated investment, construction and operations model.

In products and technology, we continue to upgrade our full-stack AI capabilities for intelligent computing and AI application deployment. This quarter, we further optimized the model deployment on [indiscernible] for high concurrency inference, significantly improving throughput for several core models and enabling more granular access usage and model level management.

We also launched Agent kits, providing secure sandbox knowledge and memory management and evaluation and governance tools to help enterprises build production-grade AI agents. At the same time, we are making general service cloud products such as database and storage, easier for agents to access and use. We enhanced the [indiscernible] training and inference platform with more flexible resource scheduling, sharing and allocation for training and fine-tuning workloads, improving utilization and reducing development and operating costs.

So private deployment of domestic AI infrastructure, our Galaxy Stack platform completed deep integration and full life cycle mutual management for multiple mainstream domestic AI chips.

Looking ahead, we will continue to capture opportunities both within and outside our ecosystem, improve the operating efficiency of our computing assets and strengthen our profitability and cash generation capability amid AI industry tailwinds. We remain committed to creating long-term sustainable value for customers, shareholders and society.

With that, I will hand the call over to our CFO, Li Yi, who will review our second quarter financial results.

Yi Li

Thank you, [indiscernible] and thank you all for joining the call today. I will now discuss the second quarter financial results [indiscernible]. Before we go through the details of the financial results for the second quarter, I would like to highlight [indiscernible]. First, our quarter revenue reached over RMB 3 billion for the first time in our company's history, up year-over-year for the last consecutive quarter. In particular, our AI cloud gross billing increased 82% year-over-year to RMB 1.33 billion, accounting for over 43% of our total revenue 31% a year ago. This reflects a continued structural shift in our business leading towards AI. Second, our profitability has improved. Our adjusted gross margins were 15.4%, up 2.4 percentage points quarter-over-quarter at 0.5% parentage points year-on-year.

Our adjusted EBITDA margin reached 36% up from 32% in the same quarter last year and 82% last quarter. Mostly when we had to break even at operating income level this quarter and recorded adjusting operating profit margin of 4%. These unconvalidate our ability to strong AIDC demand into healthy profit growth.

Third, we continue to invest to accelerate the buildout of our AI compute capacity. Capital expenditures, together with right of use assets of tenant through third party financing and the finance leases reached RMB 3.3 billion this quarter versus RMB 2.9 billion in last quarter and RMB 2.8 billion in the same quarter last year.

Now let me walk you through our financial results for the second quarter of 2026. This quarter, total revenue were RMB 3.72 million, up 31% year-over-year or 40% quarter-over-quarter. Of these revenues from [indiscernible] cloud service were 2,358 billion up 45% from 1,625 million in the same quarter last year.

Revenues from enterprise [indiscernible] reached RMB 740 million, compared with RMB 724 million in the same quarter last year, down [indiscernible] by 1% year-on-year. Total quarter revenues was [ 606 ] million, representing a 30% year-over-year or increase, mainly due to a continued investment in a cloud infrastructure.

IDC costs increased by 23% year-over-year from RMB 803 million to 1190 million this quarter. The increase was mainly due to the increase of [indiscernible]. Preamortization costs increased by 75% year-over-year from RMB 732 million in the same quarter of 2025 to RMB 964 million in quarter, largely due to the deterioration of newly acquired and listed AI infrastructure, including servers and network equipment.

Solution development and service costs increased by 4% year-over-year from RMB 564 million in the same quarter of 2025 to RMB 786 billion this quarter. The modest increase was mainly due to higher costs incurred in AI transformation in solution development and delivery. [indiscernible] costs and other costs were approximately $66 million in total this quarter [indiscernible] RMB 92 million in the same quarter last year.

Our adjusted profit for the quarter was RMB 472 million, increased by 35% year-over-year and 34% quarter-on-quarter. Adjusted gross margin was 15.4%, up from 14.9% in the same quarter last year and from 30% last quarter. The increase was driven by higher gross margin in public cloud business, thanks to strong demand tailwinds.

On the expense side, excluding share-based compensation cost expenses, our total adjusted operating expense were RMB 391 million decreased from RMB 761 million in the same quarter last year and from RMB 455 million last quarter, mainly reflecting our disciplined cost and expense control of which are adjusted risk and development expenses were [indiscernible] 84 million, up 1% year-over-year. Adjusted selling and marketing expenses were $102 million, down 7% year-over-year.

General and administrative expenses were RMB 105 million down 51% year-over-year, largely due to lower credit loss expenses. Our adjusted operating profit was RMB 124 million tolling profit from adjusted operating loss of $166 million in the same period last year. This improvement was primarily driven by the expansion of our revenue deal higher gross margin and enhanced operating efficiency.

Adjusted operating profit margin was 4% this quarter compared with minus 7.1% in the same period last year at minus 2.2% in the last quarter. Our adjusted net loss was RMB 6 million, down from RMB 300 million in the same quarter last year at RMB 237 million [indiscernible] Our non-GAAP dBA profit was RMB 1,100 million increased by 171% from RMB 406 million in the same quarter last year. Our non-GAAP EBITDA margin achieved 36% compared with 70% in the same quarter last year and 82% in the last quarter. It was mainly due to our improving growth profit as well as higher degration costs in our cost as we accelerate our AI computing capacity buildout. Ended June 30, 2026, our cash and cash equivalent totaled RMB 4,674 million compared with RMB 4,504 million as of March 31, 2026. The modest decrease was mainly due to our continued investment in AI infrastructure to support business growth.

Looking ahead, we aim to capitalize on the excellent growth in AI demand and further investing in infrastructure, expanding our product and service offerings, managing [indiscernible] equity risk and improving operating efficient. We remain commitment to our OEAI strategy and continue to deliver high-quality growth to our shareholders. Thank you all.

Unknown Executive

So this concludes our prepared remarks. We will now begin the Q&A session. If possible, please ask your questions in both Mandarin and English. So operator, please proceed.

Operator

[Operator Instructions] Your first question comes from Liping Zhao from CICC.

질의응답

Unknown Analyst

[Interpreted]

Let me translate by myself. So good evening, Mr. and Ms. Li. I've got 2 questions on your mass business. First, how well improvements in open store model capabilities affect the company's mass business based on your observations, what's the current usage growth trend and which use cases are driving at most? And second, given the payback period for the mass business might be shorter. Will the company allocate more resources to it?

Tao Zou

[Interpreted]

Okay. So just quickly translate. So this answer comes from our SVP, Mr. Nota. So in relation to your first question, the development in open-source [indiscernible] models have mainly 3 impacts. Number one is that we are seeing a very big demand coming from [indiscernible] traditionally flooring model, taking the lead in this area. However, once we have seen the launch of KLM and K3, kind of high-performance models, we're seeing increasingly users from Mainland China adopting and using this made in China [indiscernible] model. And secondly, the increasing use of agentic scenario also broad change to our business. And with that, we have launched, as mentioned in the prepared remarks, the agent product to satisfy such needs. And certainly, it is worth mentioning that in terms of day-to-day routine tasks and workloads, the choice usually is the price for value kind of models, which are essentially the Chinese models. So that is why this development opens source [indiscernible] model is actually beneficial for our business. And your second question regarding the balance between mass business and the computing power. So we basically have different business models for the 2 business. For computing power business, essentially, once we sell the computing power, the utilization is financial 100%, and we usually come with long-term contracts to secure the utilization throughout a prolonged period of time, and therefore, it's relatively safe, so to speak. But for the mass business, it is subject to quality of factors, including the fluctuation of the token price, the launching of new models, which the governors might prefer to use and also the operating efficiency that we're able to achieve in doing the mass business.

So therefore, we generally balance these 2 business models and hope to have each one of them complement the other one. So we generally dynamically evaluate these 2 business and at the product side, how much resources to allocate.

Operator

We will take our next question -- next question comes from Wenting Yu from CLSA.

Wenting Yu

[Interpreted] The first question is that since joined, how has the chip procurement progressed in recent months? And what's your latest full year CapEx guidance? And the second question is about the enterprise cloud. This time the segment of revenue has decelerated in the past 2 quarters. How should we think about the full year enterprise growth and what's the AI transformation and medium-term positioning for this segment?

Unknown Executive

[Interpreted]

So allow me to quickly translate. So the answer comes from our -- so 3 points. Number one, actually, since 2023, it's been 3 years, and the market has always been hearing voices about the limited supply. So I would say this is actually a new norm. The tech supply on difficulty is actually a long-term kind of situation. But secondly, we should also be aware of the fact that despite of those constraints, financial constraints, the Chinese cloud computing AI industry development has not been restricted or largely restricted by that. And the way that we actually tackle with such situation is that we try to increase the number of business partners that we work with. We try to increase the number of suppliers we work with and we also work with the increasing the compatibility of made in China chips. You are all very well very much aware of the -- recently many of the many China chips are becoming public, and they are particularly good in use cases such as model interest.

Now number three, I would like to say that when you look at the CapEx number from a month-to-month basis, it is usually quite volatile. And I have to say that the purchasing number because of it's usually a large chunk of money in a relatively small number of projects. So the purchase number, if you look at it on a monthly basis, is actually not a linear number. So I would say that for our whole year CapEx estimate, it should still be in line with what we have been expecting and our CFO should be able to give you more details in that regard.

Tao Zou

Our cash expenditure includes [indiscernible] asset to lease arrangement, reaching RMB 6.2 billion in the first half of 2026 accounted for over 75% of our portfolio CapEx last year, where July stature cannot fully represent third quarters of all trends. It clearly shows tangible growth acceleration. Accordingly, we maintain our full year CapEx base case unchanged at [indiscernible] Billion. Thank you, Tintin.

Operator

We will take our next question.

Unknown Executive

Sorry, we need to continue [indiscernible]

Operator

Apologies.

Unknown Executive

[Interpreted]

Okay. So this answer comes from our [indiscernible]. So generally, I don't think -- although we are seeing relatively slow growth in the enterprise cloud segment, I would say it is not the right way to look at it from the linear extrapolation perspective. I will give you 3 reasons. I think number one, just to explain why we're seeking -- looking at relative business in this regard is that the upstream supply pricing hiking hike which changed quite significantly in recent quarters, has affected the -- our prospective customers, essentially the SOE companies and also the government agencies to -- they have to frequently adjust their budgeting product, which delayed their decision-making process. So that's number one. And number two, you're all quite aware that the seasonality in enterprise cloud business is quite strong. Usually, the delivery and revenue recognition are concentrated in the second half of the year. So we have actually quite a strong pipeline to deliver in the second half of the year.

And thirdly, this is actually a result of a proactive adjustment of our business structure namely proactively from the project-based business model to an operating base business model, where operating business model from a financial reporting perspective is automatically classified into public cloud. So this is not typically as it what sees as a weakening of the enterprise cloud business. So that's the 3 points I like to offer.

Operator

We will take our next question comes from Timothy Zhao from Goldman Sachs.

Timothy Zhao

[Interpreted]

My first question is regarding the mass [indiscernible] Just wondering compared to the peers in the market. How do you think about the Kingsoft Cloud competitive advantage in a master basis in terms of the application scenario, et cetera? And could you share more about the revenue recognition and the profitability profile of the mass service bid.

Second question is regarding the overall pricing trend in the AI cloud business. Just wondering if you can share -- what is the latest trend over the past couple of months? And what have you heard from the customers after you announced certain price hikes or discount reduction over the past few months and whether you are able to quantify the impact from the price hike to your overall AI cloud revenue growth.

Unknown Executive

[Interpreted]

So in relation to your question about the positioning, we do have a unique position in the mass business Mainly, we're different from some of the total providers, which they have their in-house or proprietary models, we do not have such models. And therefore, correspondingly, we do not have to sell those [indiscernible] models that our affiliate companies have to offer. And as a result, we're able to actually sell and we actually encourage our sales team to sell the models that our customers like the most, for example, GRM et cetera.

So that's number one. And secondly, it's quite important in today's market to have your proprietary or your own computing power, which is the only way that you can actually secure significant profitability in this business.

So in relation to your question about the price hike. So there are basically 2 products which are core solutions that we have employed increasing price -- number one, that is storage and number two, that is computing power. I'll talk about them separately, respectively. In terms of storage, storage is usual, the incremental amount of storage is actually comes with the intelligent computing demand. That is a relatively small portion of the intelligence computing our overall ticket size. And therefore, in the vast majority of the customers that we negotiated with they are relatively [indiscernible] such price hike. In which case, as a result, we're actually able to not only -- in some places, not only pack through the Nepris in our cost, but also increasing our profitability in that scenario.

And number two, in terms of computing power, because of our specific capabilities, including PAC capabilities as well as the operating maintenance and network capabilities, again, we are able to pass through that cost hike into our customers. In some of the cases, we also increased our profitability. And in this quarter, we have also some projects in which we are doing managed the services, which is an asset-light business model. We look forward to seeing more of that coming to [indiscernible]

Operator

We will take the next question. Your next question comes from Wes Yang from UBS.

Wei Xiong

[Interpreted]

Congrats on a solid quarter. Considering the proprietary models and user ecosystem of other cloud providers, how should we think about our long-term positioning in the cloud market and the sustainable margin level down the road?

Unknown Executive

[Interpreted]

So we believe that [indiscernible] AI cloud service providers is important to be able to offer the top models, which the customers like and also stable services to our customers. So as mentioned, as a neutral cloud player, we are able to be in good relations with all of the top model providers [indiscernible] mono labs and be able to provide the best model according to our customers' demand. And also, we're able to -- based on our technology capabilities, we're able to provide highly available and high reliable services to them. based on out of the SLAs that we signed with them. I think thirdly, in relation to profitability question you asked, it is important to work closely with the LM terms labs to, for example, to optimize, to optimize the influence of those models. And that will include the, for example, working with them based on the undisclosed weighting of the models to increase our influence model influence efficiency.

In some of the cases, we're able to get to very close level or even reach the same level of the influence efficiency coming out from the [indiscernible] companies themselves. Thank you.

Operator

We will take our final question. Your final question comes from Yang Liu from Morgan Stanley.

Yang Liu

[Interpreted]

Let me translate my question. I would like to ask on the 2 business model, computing power leasing and Model as a service, what is the ROIC for these 2 business models? And what is the marginal change for the ROIC.

Unknown Executive

Thank you, [indiscernible] At this stage, we don't disclose separate our SD Mark and computing power services. because varies across projects, driven by payback secureness margin, fixed assets and depreciation policies. Overall, must be with much better probability than back into the core servicing at this stage. We have seen continued improvement in maintaining leverage and our business scales are fixed costs are steadily diluted and our trailing translates adjusted operating profit is trend positive, driving a gradual recovery in our overall ROIC. We adhere to demand drilling and a disciplined investment strategy with a strong focus on capital efficiency. With the continuous business structure of [indiscernible] and the material AI mediation. I think our overall LSC will keep improving steadily.

Operator

There are no further questions. Apologies. [indiscernible] the question-and-answer session. I will hand back for closing remarks.

Unknown Executive

Okay. Thank you all for joining us today. If you have any further questions, please contact our IR team. So have a good evening. You may now disconnect. Thank you.

Operator

This concludes today's conference call. Thank you for participating. You may now disconnect.