- Online Games Business Iterates Classic IP and Actively Expands New Game Genres

FINANCIAL HIGHLIGHTS

RMB’000 (Unaudited)

For the three months ended

30 September 2024

30 September

2023

30 June

2024

Revenue

2,914,785

2,059,679

2,473,766

- Office Software and Services

1,206,815

1,098,325

1,187,730

- Online Games and Others

1,707,970

961,354

1,286,036

Gross Profit

2,454,444

1,676,854

2,042,035

Operating Profit

1,144,118

376,073

794,037

Profit Attributable to Owners of the Parent

413,449

28,492

393,353

Basic Earnings per Share (RMB)

0.31

0.02

0.29

Kingsoft Corporation Limited (“Kingsoft” or the “Company”; Stock Code: 03888.HK), a leading software and internet services company in China, has announced its unaudited quarterly results for the three months ended September 30, 2024 (“period under review”).

During the period under review, the revenue of Kingsoft increased by 42% year-on-year and 18% quarter-on-quarter to RMB2,914.8 million. Revenue from the office software and services represented 41% and online games and others represented 59% of total revenue. Gross profit increased 46% year-on-year to RMB2,454.4 million. Operating profit before share-based compensation costs surged by 168% year-on-year and increased by 37% quarter-on-quarter to RMB1,202.4 million.

Mr. Jun LEI, Chairman of Kingsoft, commented, “In the third quarter, our core businesses made steady progress, further solidifying our market presence. Kingsoft Office Group remains dedicated to R&D of AI and collaboration, empowering individual and institutional customers with technological innovation, bringing users a one-stop AI-empowered office experience, and promoting the application of new productive forces within the office services sector. With respect to online games business, we continue to refine our classic JX online series and actively expand into new game genres.”

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, “In the third quarter, fueled by the robust performance of our game products, the Group achieved significant growth in both total revenue and operating profit, both reaching a record high. Total revenue amounted to RMB2,914.8 million, representing year-on-year and quarter-on-quarter increases of 42% and 18% respectively. Revenue from online games and others business reached RMB1,708.0 million, representing a notable year-on-year increase of 78% and a quarter-on-quarter increase of 33%. Revenue from the office software and services business amounted to RMB1,206.8 million, representing a year-on-year increase of 10% and quarter-on-quarter growth of 2%. The operating profit of the Group surged to RMB1,144.1 million, demonstrating a substantial 204% year-on-year and a 44% quarter-on-quarter growth.”

BUSINESS REVIEW

Office Software and Services

For the third quarter of 2024, revenue from the office software and services business increased by 10% year-on-year and 2% quarter-on-quarter to RMB1,206.8million. The year-on-year increase was mainly due to the growth of Kingsoft Office Group’s domestic individual office subscription business.

In the domestic individual office subscription business, Kingsoft Office Group continued to optimize the features of WPS AI, providing users with a more convenient and efficient creative experience, further enhancing user stickiness and conversion rates.

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