Kingsoft Cloud (3896.HK) climbed more than 10% in Hong Kong trading Thursday to HK$6.20.

The cloud-services provider posted record quarterly revenue of RMB 3.07 billion for the second quarter, up 30.8% year-on-year. AI cloud billing revenue surged 82% to RMB 1.33 billion, accounting for 56% of public-cloud revenue. Adjusted gross margin widened to 15.4%, and the company reported its first-ever positive GAAP operating profit.

The net loss narrowed 79.6% to RMB 93 million. First-half revenue rose 33.7% to RMB 5.78 billion, while adjusted EBITDA more than doubled, climbing 155% to RMB 1.85 billion.

Jefferies maintained a buy rating on Kingsoft Cloud's U.S.-listed shares and raised its price target to $17.70, citing expanding AI revenue contribution and improving profitability as key growth drivers.