Kingsoft (3888) investor relations material

Executive summary

• Revenue grew 3% year-over-year to RMB 2.042 billion or RMB2,416.7 million, with office software and services up 24% and online games down 22% year-over-year.

• Profit attributable to owners surged 284% year-over-year to RMB 1,091 million, driven by joint venture gains.

• AI-driven innovation and internationalization fueled growth in office software, while gaming faced headwinds from existing titles.

• Goose Goose Duck expanded its user base, entered the App Store top grossing chart in April, and launched in January.

• Strategic focus remained on AI, collaboration, and internationalization in office software; online games emphasized premium content and long-term operations.

Financial highlights

• Office software and services revenue reached RMB 1.61 billion, up 24% year-over-year; online games and others at RMB 804 million, down 22%.

• Gross profit increased 1% year-over-year to RMB 1,929.9 million; gross margin declined 2 percentage points to 80%.

• Net profit margin (excluding share-based compensation) was 47% for the quarter.

• Operating profit dropped 34% year-over-year to RMB 395.3 million.

• Basic and diluted EPS were RMB 0.79, up 276% year-over-year.

Outlook and guidance

• Gaming revenue expected to recover in Q3 and Q4 with new product launches and content updates.

• Office business to focus on AI agent products, international expansion, and further AI integration.

• WPS 365 and AI-driven office solutions seen as key growth drivers.

• Online games to increase R&D investment and leverage AI for enhanced content and user experience.