Kingsoft Announces First Quarter 2024 Results
2024年5月22日 - 7:00PM
JCN Newswire
Kingsoft Corporation Limited ("Kingsoft" or the "Company"; HKEx
stock code: 03888), a leading Chinese software and Internet service
company, has Announces First Quarter Results for the Period Ended
March 31, 2024.
In the first quarter of 2024, the revenue of Kingsoft increased 8%
year-on-year to RMB2,136.9 million. Among them, revenue from the
office software and services, and online games and others
represented 57% and 43% of the Group's total revenue for the first
quarter of 2024, respectively. Gross profit for the first quarter
of 2024 increased 7% year-on-year to RMB1,740.7 million, while
operating profit was RMB601.6 million increased 31%
year-on-year.
Mr. Jun LEI, Chairman of Kingsoft, commented: "We are off to a good
start in 2024 with solid performance. With opportunities arising
from the booming digital economy, Kingsoft Office Group focuses on
AI and collaboration, deepening the R&D and commercialization
of related products, and actively advances the implementation of
new productive forces in the office field. Online games business
maintains the strategy of prime games, focusing on deepening and
expanding the classic JX online series while continuously exploring
new game genres. In the future, we will continue to dig deeper into
the office and gaming fields, and with the help of technology and
innovation, we will continue to enhance our core competitiveness
and strive to bring more returns to our users and investors."
Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added: "In the
first quarter, the Group demonstrated steady financial performance.
The total revenue for the first quarter amounted to RMB2,136.9
million, representing a year-on-year increase of 8%, among which
the revenue from the office software and services business was
RMB1,225.3 million, representing a year-on-year increase of 17%,
this was primarily driven by the growth of both domestic individual
office subscription business and institutional subscription
business. The operating profit of the Group for the first quarter
increased remarkably to RMB601.6 million, marking a 31%
year-on-year growth. The above achievements reflect our insistence
on technology as the core, customer-oriented, and continuous
improvement of products and services to bring users excellent
experience."
BUSINESS REVIEW
Office Software and Services
Revenue from the office software and services business for the
first quarter of 2024 increased 17% year-on-year to RMB1,225.3
million. The year-on-year increase was mainly due to the growth of
domestic individual office subscription business, institutional
subscription business and institutional licensing business of
Kingsoft Office Group, partially offset by the decreased internet
advertising business. The growth of domestic individual office
subscription business was mainly attributable to the increases in
both the user stickiness and paying ratio, resulting from enriched
membership benefits. The growth of domestic institutional
subscription business was mainly because we continuously promoted
the transformation to subscription models, as the launch of WPS
365, the new productive forces in office. The increase of
institutional licensing business was mainly driven by purchase
orders on localization solutions. The decrease of internet
advertising business was mainly due to the shut-down of the
domestic third-party advertising business at the end of 2023.
Kingsoft Office Group continued optimizing its product portfolio to
support intelligent office solutions. In terms of domestic
individual subscription business, we continuously enriched the
membership benefits to enhance user stickiness and paying ratio.
With regard to domestic institutional subscription business, we
kept improving the product system, enhancing service experience,
expanding ecosystem channels, and actively promoting the
transformation to cloud and collaboration office. Driven by orders
in the localization industry, the institutional licensing business
achieved growth. In March, WPS AI began its initial
commercialization. In April, we launched upgraded WPS 365, the new
productive forces in office, covering the upgraded versions of WPS
Office, WPS AI Enterprise Edition, and WPS Collaboration, and
providing users with one-stop AI office solutions.
Online Games and others
Revenue from the online games and others business for the first
quarter of 2024 decreased 1% year-on-year. The slight year-on-year
decrease was primarily due to a natural decline in revenue from
certain existing games, partially offset by revenue contribution
from titles released in the second half of 2023.
The online gaming business maintained the strategy of prime games
in the first quarter of 2024. The flagship JX3 Online demonstrated
resilience and vitality, maintaining steady performance. For the
mobile version JX3 Ultimate (3), we initiated extensive testing in
collaboration with players to continuously improve the game
quality. It is expected to be launched in June 2024, realizing
full-platform accessibility for the flagship JX3 Online, and
offering players unified gaming experience across multiple
platforms. We also achieved phased progress in exploring new game
genres, upheld the principle of user-first and paid high attention
to user feedback and suggestions. We actively operated the anime
shooter game, Snowbreak: Containment Zone, which achieved
significant increases in both daily active users and gross receipts
in the first quarter. The sci-fi game Mecha BREAK () received the
license approval in March 2024, and is undergoing testing and
continuous optimization in Chinese Mainland and overseas regions,
while maintaining in the top 100 of the Steam Global Wishlist since
its debut.
Mr. Jun LEI concluded, "Looking ahead, Kingsoft Office Group will
remain dedicated to investing in R&D of AI and collaboration,
continuously exploring the application of WPS AI in office
scenarios across various industries. Online games business will
keep focusing on prime games, listening to user feedback and
providing high-quality gaming experience. We firmly believe that
these efforts will strengthen the Group's core competitiveness and
lay a solid foundation for our long-term sustainable
development."
About Kingsoft Corporation Limited
Kingsoft is a leading software and Internet services company based
in China listed on the stock exchange of Hong Kong. It has three
main subsidiaries including Kingsoft Office, Seasun and Kingsoft
Shiyou. Following the implementation of its "mobile internet
transformation" strategy, Kingsoft has completed the comprehensive
transformation of its overall business and management models, and
formed a strategic platform with office software and interactive
entertainment as the pillars and cloud services and AI as the new
directions. The Company has more than 7,000 staff around the world
and enjoys a large market share in China. For more information,
please visit http://www.kingsoft.com.
Kingsoft Investor Relations:
Yinan Li
Tel: (86) 10 6292 7777
Email: ir@kingsoft.com
For further queries, please contact Wonderful Sky Financial
Group:
Angie Li, Tel: (852) 6150 8598, Email: po@wsfg.com
Jason Lai, Tel: (852) 9798 0715, Email: po@wsfg.com
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