Kingsoft Announces 2019 Third Quarter Results
2019年11月13日 - 7:46PM
JCN Newswire
Kingsoft Corporation Limited ("Kingsoft" or the "Company"; HKEX
stock code: 03888), a leading Chinese software and internet service
company, has announced its unaudited quarterly results for the
three months ended 30 September 2019 ("period under review").
During the period under review, the revenue of Kingsoft increased
32% year-on-year and 8% quarter-on-quarter to RMB2,022.9 million.
Revenue from online games, cloud services, and office software and
services and others represented 33%, 48% and 19% respectively of
total revenue. Gross profit for the third quarter increased 15%
quarter-on-quarter to RMB822.9 million.
Mr. Jun LEI, Chairman of Kingsoft, commented, "Our various
businesses continued to show good momentum in the third quarter of
2019. Our flagship JX Online III PC game and JX Online I mobile
game maintained their popularity among users and achieved
satisfactory revenue growth quarter-on-quarter. Our cloud services
business achieved rapid growth, and we officially released a new
range of finance cloud solutions to expand our customer portfolio
for this segment. Meanwhile, revenue from the WPS value-added
services maintained strong growth, and the listing of Beijing
Office Software on the science and technology innovation board on
the Shanghai Stock Exchange is expected to take place on 18
November 2019."
Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, "Our
revenue was RMB2,022.9 million, up 32% year-on-year and 8%
quarter-on-quarter. Revenue of cloud services continued to grow
rapidly year-on-year, driven by our competitive advantage in mobile
videos and the internet market, as well as breakthroughs in the
enterprise and government markets."
BUSINESS REVIEW
Online Games
Revenue from the online games business for the third quarter of
2019 increased 16% quarter-on-quarter to RMB663.5 million. The
quarter-on-quarter increase was mainly due to revenue growth of our
flagship game JX Online III PC game with continuous improvements in
user experience through constant content updates, and revenue
contribution from JX Online III mobile game launched in June
2019.
On 28 August, Kingsoft celebrated the 10th anniversary of the JX
Online III PC game in Xi'an, and shared with its gamers the
development outlook on technological innovation, user operation and
content creation. Regarding mobile games, Kingsoft continued to
pursue a diversified product strategy, and a new mobile game Double
Life World was launched in Japan on 20 September. The domestic
version of the game will be released in the near future. In the
fourth quarter, the Company plans to launch a new expansion pack
for the JX Online III PC game to provide players with new game
content and better experience.
Cloud Services
Driven by its competitive advantage in mobile videos and the
internet market, as well as breakthroughs in the enterprise market,
revenue from the cloud services for the third quarter of 2019
maintained rapid growth, increasing 62% year-on-year and 6%
quarter-on-quarter to RMB976.3 million.
Leveraging the Company's leading infrastructure and technology,
Kingsoft video cloud successfully supported the live broadcast of
Autohome's "818 Global Car Night Gala" and the "National Day Parade
on the PRC's 70th Anniversary Celebrations". During the Asia
Pacific CDN Summit 2019, Kingsoft Cloud won the "CDN Leader Award
for Top 10 Outstanding Operating Enterprises". In terms of game
cloud, together with China Telecom and Intel, Kingsoft Cloud
jointly released cloud gaming solutions to achieve fast cloud
streaming from the player-end. In terms of the finance cloud
development, Kingsoft Cloud has achieved a financial ecosystem from
the most basic cloud infrastructure construction, by launching
full-stack smart finance cloud solutions and KBaaS commercial
blockchain platform. "Jinggang Cloud", an industrial cloud platform
jointly built by Kingsoft Cloud's government cloud and Ansteel, was
recognized as one of the "Top 10 Case Studies in Cloud Migration"
in 2019. The Company secured a strategic cooperation with the
Xiqing district of Tianjin to jointly develop the "Xiqing Cloud",
and with the government of Chibi city and Shuangliu district of
Chengdu to build a big data industry ecosystem. Looking to the
future, Kingsoft is committed to empowering enterprise clients in
digital transformations across a variety of industries, by leading
the integration and innovation of cloud computing, big data, AI and
other cutting-edge technologies.
Office Software and Services and Others
Revenue from the office software and services and others for the
third quarter of 2019 increased 50% year-on-year to RMB383.1
million. The year-on-year increase was mainly due to stable growth
from value-added services of WPS Office personal edition, driven by
enhanced user engagement and increased paid users with more
practical functions and high quality resources provided.
Office software and services business continued to show sustained
growth. By providing complete coverage of office use case
scenarios, the performance of the personal value-added services of
WPS Office remained robust. In addition, the Company launched a new
version of WPS Office for Linux which utilizes its technological
capabilities, including knowledge base, AI and data mining. By
introducing AI technology into office products, WPS further
enhanced user experience and service capabilities on the Linux
system. This in turn strengthened Kingsoft's ability to drive its
government enterprise business. In terms of overseas expansion,
Kingsoft released the WPS Office 2020 suite in New Delhi, India on
28 August. As Kingsoft Office's flagship office software suite, WPS
Office 2020 features a comprehensive suite of functions and
services, including pre-built templates and PDF editing, etc. as
well as macOS support. Looking ahead, Kingsoft is committed to
providing a variety of cutting-edge office products and services,
creating the best office user experience for global customers
through technology empowerment.
Mr. Jun LEI concluded, "On the whole, we are pleased to achieve a
satisfactory performance in the third quarter amid a challenging
environment. As we continue to see the convergence of innovation
and digital transformation, Kingsoft will maintain its competitive
edge in the industry. Looking ahead, we expect our business
performance to remain robust, driven by sustainable growth of our
cloud services business and office software business. We are
cautiously confident to meet our 2019 target and endeavor to
generate long-term value for our shareholders."
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
subsidiaries including Seasun, Kingsoft Cloud and Kingsoft Office.
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 interactive entertainment and
office software as the pillars and cloud computing as the new
growth driver and source. The Company has over 7,000 staff around
the world. It enjoys a large market share in various countries and
regions both home and abroad. For more information, please visit
http://www.kingsoft.com.
Kingsoft Investor Relations:
Francie Lu Tel: (86) 10 6292 7777 Email: ir@kingsoft.com
For further queries, please contact Hill+Knowlton Strategies
Asia:
Sophie Du Tel: (852) 2894 6264 Email: kingsoft@hkstrategies.com
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