Beijing Kingsoft Office Software (688111) investor relations material

Executive summary

• Achieved revenue of RMB 3.31 billion, up 24.69% year-over-year; net profit attributable to shareholders was RMB 2.52 billion, up 236.94% year-over-year, mainly due to significant investment income; adjusted net profit (excluding investment income and share-based payments) was RMB 1.09 billion, up 28.29% year-over-year.

• WPS personal business revenue reached RMB 2.01 billion, up 15.20% year-over-year; WPS 365 business revenue was RMB 497 million, up 60.84% year-over-year; WPS software business revenue was RMB 722 million, up 33.36% year-over-year.

• Maintained high R&D investment, with R&D expenses of RMB 1.15 billion, accounting for 34.76% of revenue; R&D staff totaled 3,962, representing 64% of total employees.

Financial highlights

• Operating income: RMB 3.31 billion, up 24.69% year-over-year.

• Net profit attributable to shareholders: RMB 2.52 billion, up 236.94% year-over-year; adjusted net profit: RMB 1.09 billion, up 28.29% year-over-year.

• Basic EPS: RMB 5.44, up 235.80% year-over-year; adjusted EPS: RMB 2.35.

• Operating cash flow: RMB 643 million, down 12.96% year-over-year, mainly due to increased tax prepayments.

• Gross margin remained robust; R&D expense ratio at 34.76%.

Outlook and guidance

• Will continue to focus on "AI, collaboration, internationalization" strategy, driving intelligent product upgrades and AI-native innovation.

• Expects AI-driven products and services to further contribute to revenue growth, especially through new business models combining subscriptions and AI usage.

• Plans to deepen global expansion and enhance enterprise AI solutions.