Tag: Kingsoft Corporation Limited

• Kingsoft Office Group Achieves Steady Growth
• Fueled by Technological Innovation, Empowering Customers
• Online Games Business Iterates Classic IP and Actively Expands New Game Genres

Kingsoft Corporation Limited (Kingsoft or the Company; HKG: 3888), 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. Our domestic institutional subscription business, leveraging the continuous improvement of the WPS 365, steadily advanced its SaaS transformation, and expanded its customer base among large and medium-sized private enterprises and local state-owned enterprises. Overseas business also maintained healthy growth. With respect to AI application innovation, the Group launched a series of core capabilities and solutions, including AI Co-writing, AI Docs (intelligent document library), Kingsoft Government Office Model, and the AI assistant – WPS Lingxi. The Group also released the WPS HarmonyOS NEXT, further promoting the development of the AI office ecosystem.

Online Games and Others
For the third quarter of 2024, revenue from online games and others business for the third quarter of 2024 increased by 78% year-on-year significantly and 33% quarter-on-quarter to RMB1,708.0 million. The year-on-year and quarter-on-quarter increases were mainly attributed to the outstanding performance of JX3 Online and the successful launch of JX3 Ultimate further boosting the game popularity, and the active operation and enhanced experience of other games.

JX3 Online continues to demonstrate remarkable resilience. JX3 Ultimate has performed outstandingly since its launch, and the number of returning players has exceeded expectations. In October, JX3 Online released its annual expansion pack, featuring a new class, increased level cap, and innovative gameplay, further enhancing players’ emotional engagement and activity. The sci-fi mecha game Mecha BREAK completed its first public beta test in August, with player enthusiasm exceeding expectations, sparking widespread attention globally. The game has garnered nearly 3 million global pre-registrations and peaked at 17th on the Steam Global Wishlist. Furthermore, the mobile game The Fate of Sword: Zero has received license approval and is scheduled to launch next year.

Mr. Jun LEI concluded, “In the third quarter, we focused on refining and optimizing our core products and services to lay a solid foundation for future development. Kingsoft Office Group will continue its long-term investment in AI and collaboration and address users’ office needs across various scenarios and deliver more intelligent and efficient office experience. Meanwhile, our online games business will remain dedicated to ongoing innovation and quality enhancement, offering exceptional gaming experience and rich content to global players.”

About Kingsoft Corporation Limited
Kingsoft (HKG: 3888) is a leading Chinese software and internet service company listed on the Hong Kong Stock Exchange. It has three main subsidiaries: Kingsoft Office, Seasun Holdings and Kingsoft Shiyou. With the implementation of the “transformation toward mobile internet” strategy, Kingsoft has completed a comprehensive transformation in its overall business and management model. The Company has established a strategic layout with office software and interactive entertainment as its pillars, and cloud services and artificial intelligence as its new starting points. Kingsoft has nearly 8,000 employees worldwide and holds a significant market share domestically. For more details, please refer to http://www.kingsoft.com.

Kingsoft Investor Relations:
Li Yinan	Tel: (86) 10 6292 7777	Email: ir@kingsoft.com
For further queries, please contact Hill and Knowlton:
Ovina Zhu	Tel: (852) 2894 6315	Email: kingsofthk@hkstrategies.com

– AI Powers Comprehensive Evolution of Office Products,
– while Game Quality Enhancement and New Genres Expansion Progressing Simultaneously
– Leading to Significant Progress in Core Businesses

FINANCIAL HIGHLIGHTS

RMB’000

(Unaudited)

For the 6 Months

Ended June 30

For the 3 Months

Ended June 30

2024

2023

2024

2023

Revenue

4,610,641

4,163,797

2,473,766

2,193,490

– Office Software and Services

2,413,079

2,172,497

1,187,730

1,120,845

– Online Games and Others

2,197,562

1,991,300

1,286,036

1,072,645

Gross Profit

3,782,688

3,457,239

2,042,035

1,831,846

Operating Profit

1,395,615

1,136,015

794,037

675,713

Profit Attributable to Owners of

the Parent

677,923

249,530

393,353

57,187

Basic Earnings per Share (RMB)

0.51

0.18

0.29

0.04

Kingsoft Corporation Limited (Kingsoft or the Company, HKG: 3888), a leading software and internet services company in China, announces its unaudited results for the three and six months ended June 30, 2024.

In the first half of 2024, Kingsoft’s total revenue reached RMB 4,611 million, representing a year-on-year increase of 11%. Revenue from office software and services business was RMB 2,413 million, while revenue from online games and other business was RMB 2,198 million, accounting for 52% and 48% of total revenue, respectively. Gross profit for the first half of 2024 was RMB 3,783 million, a 9% increase compared to the same period last year.

In the second quarter of 2024, Kingsoft’s total revenue reached RMB 2,474 million, representing a year-on-year increase of 13%. Revenue from office software and services business was RMB 1,188 million, while revenue from online games and others business was RMB 1,286 million, accounting for 48% and 52% of total revenue, respectively. Gross profit was RMB 2,042 million, representing a year-on-year increase of 11%.

Mr. Jun LEI, Chairman of Kingsoft, stated: “In the second quarter of 2024, we steadfastly implemented our established strategy, and significant progress has been made in our core businesses. Kingsoft Office Group maintained steady operations and adhered to the strategy of ‘Multi-Screen, Cloud, Content, Collaboration, AI’. We actively embraced the opportunities presented by large language models, and continuously invested in collaboration and AI R&D to enhance product competitiveness and promote the practical application of new productive forces in the smart office sector. In the online games business, we focused on a quality-centered strategy, delving deeply into classic JX series while actively expanding into new game genres.”

Mr. Tao ZOU, the chief executive officer (“CEO”) of Kingsoft, said, “In the second quarter of 2024, we achieved solid growth in revenue and operating profit. Total revenue for the second quarter was RMB2,474 million, representing a year-on-year increase of 13% and a quarter-on-quarter increase of 16%. Revenue from online games and others business was RMB1,286 million, representing a year-on-year increase of 20% and a significant quarter-on-quarter increase of 41%, while revenue from office software business was RMB1,188 million, representing a year-on-year increase of 6%. The operating profit was RMB794 million, representing a year-on-year increase of 18% and a significant quarter-on-quarter increase of 32%.”

Office software and services: Official released of WPS AI 2.0, further enhancing the intelligent office experience
In the first half of 2024, the revenue of Kingsoft Office Group reached RMB2,413 million, representing a year-on-year increase of 11%. In the second quarter, its revenue reached RMB1,188 billion, representing a year-on-year increase of 6%.

Kingsoft Office Group upgraded its AI strategy and released WPS AI 2.0. Focusing on individual users, it has launched four AI assistants in writing, reading, data and design. For enterprise users, we released WPS AI Enterprise Edition, which includes AI Hub, AI Docs, and Copilot Pro. For government users, we released Kingsoft Government Office Model , and WPS AI Government Edition.

In the second quarter, the individual office subscription business experienced steady growth. We enhanced the cloud-integrated experience of its products, increasing user reliance on WPS cloud services, which in turn boosted user activity on the cloud. Simultaneously, we continually improved users’ awareness and utilization of AI features. In the enterprise office sector, WPS 365 continued to drive business transformation, advancing cloud integration and collaborative work processes for government and corporate clients. We also focused deeply on the value scenarios of key government and enterprise customers, incubating secure and efficient industry-wide solutions. In the field of localization industry, we addressed the actual replacement needs of critical industries, achieving localized migration, adaptation, and application reconstruction of office systems. Meanwhile, the overseas business maintained healthy growth, with the upgraded release of WPS AI’s international edition and its membership system.

Online Games business: Core IP continues to break through, injecting new vitality into development
In the first half of 2024, revenue from the online games and others business grew steadily to RMB2,198 million, a 10% increase year-on-year. Revenue for the second quarter was RMB1,286 million, a 20% increase year-on-year and a significant increase of 41% quarter-on-quarter.

Our core games have achieved a milestone breakthrough. The mobile version of JX3 Ultimate was successfully launched in June, with full platform data inheritance and interconnectivity with the flagship PC game JX3 Online. The daily active user count across all platforms reached a record high. Many dormant players returned, while new players kept joining, enhancing the baseline for the long-term operation of the IP and injecting new vitality into it. We will hold the 15th-anniversary celebration of JX3 Online in August and launch a new expansion pack in October to further enhance its long-term vitality. The sci-fi mech game, Mecha BREAK, has completed its first domestic public beta test in August.

Mr. Jun LEI concluded, “Looking forward to the second half of the year, Kingsoft Office Group will remain dedicated to focusing on AI and collaboration, continue to invest in R&D, and improve the products related to WPS 365 and WPS AI systems. We will also promote their applications in office scenarios across various industries to provide more efficient and intelligent office solutions. Online games business will keep focusing on users, deepen expanded genres and seek new breakthroughs. We will adhere to the technology-driven business, continuously innovate and deliver products and content, and create prime experiences to generate value for our users and shareholders.”

About Kingsoft Corporation Limited
Kingsoft (HKG: 3888) is a leading Chinese software and internet service company listed on the Hong Kong Stock Exchange. It has three main subsidiaries: Kingsoft Office, Seasun Holdings and Kingsoft Shiyou. With the implementation of the “transformation toward mobile internet” strategy, Kingsoft has completed a comprehensive transformation in its overall business and management model. The Company has established a strategic layout with office software and interactive entertainment as its pillars, and cloud services and artificial intelligence as its new starting points. Kingsoft has more than 7,000 employees worldwide and holds a significant market share domestically. For more details, please refer to http://www.kingsoft.com.

Kingsoft Investor Relations:
Li Yinan	Tel: (86) 10 6292 7777	Email: ir@kingsoft.com
For inquiries, please contact Hill+Knowlton Strategies:
Li Yanjiao	Tel: (86) 6150 8598	Email: po@wsfg.com
Lai Junshen	Tel: (852) 9798 0715	Email: po@wsfg.com

– Continuously Upgardes WPS 365
– Actively Refines Prime Games

Kingsoft Corporation Limited (Kingsoft or the Company; HKG: 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, 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 LiJason Lai	Tel: (852) 6150 8598Tel: (852) 9798 0715	Email: po@wsfg.comEmail: po@wsfg.com

• Continued Investment in R&D of AI and Collaboration Solid Growth for Kingsoft Office Group
• Expanding the Advantages of Long-term Operation of Prime Games Strong Growth for JX3 Online

Kingsoft Corporation Limited (Kingsoft or the Company; HKG: 3888), a leading Chinese software and Internet service company, has announced its 2023 annual results and fourth quarter results for the period ended 31 December 2023.

For the year of 2023, the revenue of Kingsoft increased 12% year-on-year to RMB8,533.6 million. Revenue from the office software and services, and online games and others represented 53% and 47%, respectively, of the Company’s total revenue for the year of 2023. Gross profit for the year of 2023 increased 14% year-on-year to RMB7,030.3 million, while operating profit increased 19% year-on-year to RMB2,226.9 million.

For the fourth quarter of 2023, the Company’s revenue increased 9% year-on-year and 12% quarter-on-quarter to RMB 2,310.1 million. Revenue from the office software and services and online games and others represented 56% and 44%, respectively, of the Company’s total revenue for the fourth quarter of 2023. Gross profit for the fourth quarter of 2023 increased 9% year-on-year and 13% quarter-on-quarter to RMB1,896.3 million, while operating profit amounted to RMB714.8 million.

Mr. Jun LEI, Chairman of Kingsoft, commented: “In 2023, the Group’s overall performance maintained solid growth despite challenges. We actively promoted our core businesses to lay a solid foundation for sustainable development in the future. Focusing on the strategy of ‘multiscreen, cloud, content, collaboration, AI’, Kingsoft Office Group continued to invest in R&D of AI and collaboration, and strengthened the competitiveness of its products through technological innovation, product iteration, performance enhancement and other initiatives. In terms of online games business, we adhered to the original intention of creating prime games and insisted on long-term operation. As developing wuxia games, we are also making incremental progress in exploring new game genres.”

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added: “In 2023, the Group’s businesses demonstrated growth resilience, with the Group’s total revenue of RMB8,533.6 million, representing a year-on-year increase of 12%. The office software and services business maintained solid operations, with annual revenue of RMB4,556.5 million, representing a year-on-year increase of 17%, driven by the growth of domestic individual and institutional subscription businesses. Revenue from online games and other businesses amounted to RMB3,977.1 million, representing a year-on-year increase of 6%, mainly driven by the strong growth of JX3 Online. Operating profit of the Group amounted to RMB2,226.9 million in 2023, increasing by 19% year-on-year. These results reflected our efforts to adhere to the technology-driven business, continuously invest in products and technologies, and enhance user experience.”

BUSINESS REVIEW
Office Software and Services
In 2023, revenue from office software and services business increased 17% year-on-year to RMB 4,556.5 million. Revenue in the fourth quarter increased 18% year-on-year and 17% quarter-on-quarter to RMB 1,285.7 million. The increases were mainly due to the growth of both domestic individual office subscription business and institutional subscription business, partially offset by the decrease in institutional licensing business of Kingsoft Office Group.

Kingsoft Office Group has released WPS AI, an intelligent office application powered by large language models, focusing on the development of three strategic directions: AI Generated Content (content creation), Copilot (intelligent assistant), and Insight (knowledge insight). WPS AI officially launched public beta testing in the Chinese Mainland in the fourth quarter, laying a solid foundation for further commercialization. We have also upgraded the WPS Office to improved user experience. In addition, we continued to improve the end-to-cloud integration experience, and enhanced user activity in the cloud. While adhering to long-term membership strategy, we have upgraded the membership benefits structure, launched the super membership system to meet the needs of different users through a flexible combination of benefits.

For institutional customers, Kingsoft Office Group has upgraded WPS 365, new productive forces in office, to provide content creation, office collaboration, open ecosystem and digital asset management capabilities. We continued to promote the end-to-cloud integration and collaboration process, focused on the business scenarios of government and premium customers of state-owned and private enterprises. We deepened our product capabilities to serve industries such as finance, transportation, energy, publishing, healthcare, consumer retail, high-end manufacturing and the Internet, incubated secure and efficient solutions that can be applied across the industry, and continued to replicate typical cases for widespread adoption. Meanwhile, we have been continuously collaborating with premium customers to explore feasible solutions for the implementation of WPS AI in government and enterprise office scenarios to advance its application in various industries and office settings. In the field of public cloud service, we encouraged customers to use cloud and collaboration applications, enabling them to manage their digital assets, and expanded market reach with channel partners. By highlighting the features of our products, we attracted enterprise customers and increased their user engagement and payment retention.

In 2023, Kingsoft Office Group has closely monitored the localization industry policy changes and customer demand, and taken the initiative to tap local government market in advance. Starting from the replacement needs of localization industries such as finance, energy and operators, we promoted the adoption of the new license mode and deepened their cloud and collaboration office process.

Kingsoft Office Group put users first and officially shut down domestic third-party advertising business in December 2023. In terms of overseas business, based on our solid foundation in the mobile sector, we continued to cultivate our user base on desktop platforms. Looking ahead, Kingsoft Office Group will continue to focus on AI and collaboration, further polish the products, and provide high-quality AI collaborative office products and services to individual and institutional users.

Online Games and others
Revenue from the online games and others business for the year of 2023 increased 6% year-on-year to RMB 3,977.1 million. The year-on-year increase was primarily attributed to the remarkable resilience of flagship game JX3 Online, which introduced new gameplay and content updates, and revenue contribution from new titles like Snowbreak: Containment Zone and World of Sword Origin, partially offset by the decline in revenue from certain existing games. Revenue for the fourth quarter of 2023 kept flat year-on-year and increased 7% quarter-on-quarter to RMB1,024.4 million. The quarter-on-quarter increase was primarily driven by the revenue contribution from World of Sword Origin released in Chinese Mainland in September, partially offset by decreased revenue from certain existing games.

In 2023, the online games business saw steady growth. The flagship game JX3 Online demonstrated resilience and strong vitality. It has been in operation for fourteen years and achieved a record high in annual revenue. JX3 Online continued to iterate and release new expansion packs with upgraded graphics, providing players more diverse and enriched gaming experience. World of Sword Origin was successively launched in Vietnam and Chinese Mainland, attracting dedicated players with its classic gameplay and nostalgic appeal, while also contributed to the global reach of traditional Chinese culture. The global release of the anime shooter game, Snowbreak: Containment Zone, expanded the user base of anime and overseas markets. The sci-fi mech game Mecha BREAK made its debut at The Game Awards at the end of the year, gaining widespread attention from the international market for its art design and innovative gameplay, eagerly awaited by global players.

Looking forward to 2024, the release of JX3 Ultimate will offer players brand new experience across multiple platforms. We will continue to expand into new genres, refine scifi mech game Mecha BREAK and continuously optimize anime game Snowbreak: Containment Zone.

Mr. Jun LEI concluded, “In 2023, our core businesses have steadily advanced. In 2024, Kingsoft Office Group will firmly seize the opportunities of digital economic development and continuously explore the business opportunities of digital office services. We will continue to carry out product innovation and user experience optimization around ‘multi-screen, cloud, content, collaboration, AI’ to continuously improve service quality and provide individual and institutional users with more efficient and intelligent office solutions. At the same time, we will deepen our presence in the field of wuxia games and make progress in the new genres of sci-fi mech games, bringing players all-new gaming experience. Looking ahead, we will continue to leverage technology, embrace AI and seize new opportunities to pursue high-quality and 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

• Kingsoft Office Group Focuses on AI and Collaboration
• Online Games Business Continues to Iterate on High-Quality Games

Kingsoft Corporation Limited (Kingsoft or the Company, HKG: 3888), a leading Chinese software and internet service company, has announced its unaudited quarterly results for the three months ended 30 September 2023 (period under review).

For the third quarter of 2023, Kingsoft’s total revenue reached approximately RMB2,059.7 million, representing an increase of 12% from the same period last year. In particular, revenue from the office software and services business amounted to approximately RMB1,098.3 million, representing a year-on-year increase of 9% and accounting for 53% of the total revenue, while revenue from the online games and others business amounted to approximately RMB961.4 million, representing a year-on-year increase of 15% and accounting for 47% of the total revenue. Gross profit amounted to approximately RMB1,676.9 million, representing a year-on-year increase of 14%. Operating profit amounted to approximately RMB376.1 million, representing a year-on-year increase of 13%.

Mr. Jun LEI, Chairman of the Company, commented, “In the third quarter, our core businesses have made steady progress. Focusing on the priority strategies of ‘artificial intelligence (“AI”)’ and ‘collaboration’, Kingsoft Office Group continuously optimized the AI performance of products. Online games business continued to iterate and upgrade self-developed premium games.”

Mr. Tao ZOU, Chief Executive Officer of the Company, added, “In the third quarter, the Group maintained stable financial performance. The total revenue was RMB2,059.7 million, representing a year-on-year increase of 12%, mainly due to the steady growth of JX3 Online and the sustainable growth in subscription businesses of both individuals and institutions from Kingsoft Office Group.”

BUSINESS REVIEW
Office Software and Services
For the third quarter of 2023, Revenue from the office software and services business increased 9% year-on-year and decreased 2% quarter-on-quarter to RMB1,098.3 million. The year-on-year increase was mainly due to the growth of Kingsoft Office Group’s domestic individual office subscription business and institutional subscription business partially offset by the decrease in revenue from domestic institutional licensing business. The slight quarter-on-quarter decrease was mainly due to declined institutional licensing business, partially offset by the sustainable growth of institutional subscription business.

During the period under review, for individual office subscription business, Kingsoft Office Group optimized its membership system, improved user experience across its products, and achieved steady increases in both the paying ratio and the average revenue per paying user. To enhance the AI performance of products, Kingsoft Office Group invested in independent development of small and medium-sized models. We have reached strategic cooperation with Alibaba Cloud and iFlytek to jointly build a digital and intelligent service ecosystem.

Regarding institutional subscription business, Kingsoft Office Group actively promoted cloud integration and collaborative office progress for government and enterprises, and developed high-quality digital office solutions to assist them in the digital transformation. Through WPS 365, Kingsoft Office Group continued to facilitate customers’ adoption of cloud and collaborative applications, and made significant progress in expanding user base in micro, small and medium-sized enterprises. In order to strengthen regional service construction, Kingsoft Office Group organized a series of digital office activities in many cities in China and continuously expanded penetration in multiple industries including energy, education and finance.

Online Games and Others
Revenue from the online games and others business for the third quarter of 2023 increased 15% year-on-year and decreased 10% quarter-on-quarter to RMB961.4 million. The year-on-year increase was mainly due to revenue growth from JX3 Online and revenue contribution from Snowbreak: Containment Zone launched in July, partially offset by decreased revenue from existing games. The quarter-on-quarter decrease was primarily attributed to the decline in revenue from JX3 Online, which had a relatively high base in the second quarter.

During the period under review, JX3 Online updated constantly and sustained good atmosphere in the player community. In August, JX3 Online celebrated the 14th anniversary with players. In October, it launched the beta test with ultimate graphic quality and a new expansion pack, ensuring the ongoing success of the IP. World of Sword Origin was transformed from PC game through optimizing and upgrading the graphics and gameplay details while retaining traditional 2D graphics and classic gameplay. This mobile game was released in China in September and received recognition from players. We also optimized the anime game Snowbreak: Containment Zone on an ongoing basis. Looking forward, the mobile version of JX3 Ultimate has received the license approval and is expected to be launched in the first half of next year to achieve cross-platform operation.

Mr. Jun LEI concluded, “In the third quarter, we committed to refining and optimizing our core products and services. Going forward, Kingsoft Office Group will continue to focus on AI and collaboration, restructure office software, to provide users with intelligent product experience. Meanwhile, online games business will continue to develop premium games and maintain long-term operations to better serve players. We will remain our focus on investing in the R&D of our core businesses, to enhance our core competencies and achieve high-quality and sustainable growth.”

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 major 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:
Francie Lu  Tel: (86) 10 6292 7777  Email: ir@kingsoft.com

For further queries, please contact Wonderful Sky Financial Group:
Ada Di  Tel: (852) 3977 1838  Email: po@wsfg.com
Daphne Pang  Tel: (852) 9653 6911  Email: po@wsfg.com

• AI Product Deployment Accelerates; Subscription Business Continues to Grow
• JX Online III Delivers Impressive Results
• Snowbreak: Containment Zone Expands into Global Markets

Kingsoft Corporation Limited (Kingsoft or the Company; HKG: 3888), a leading Chinese software and Internet service company, has announced its unaudited 2023 interim results and its second quarter results for the period ended 30 June 2023.

For the first half of 2023, the revenue of Kingsoft increased 13% year-on-year to RMB4,163.8 million. Revenue from office software and services business increased 21% year-on-year to RMB2,172.5 million. Revenue from online games and others increased 5% year-on-year to RMB1,991.3 million. Revenue from office software and services and online games and others represented 52% and 48%, respectively, of total revenue for the first half of 2023. Gross profit for the first half of 2023 increased 16% year-on-year to RMB3,457.2 million, while operating profit increased 24% year-on-year to RMB1,136.0 million.

For the second quarter of 2023, the Company’s revenue increased 20% year-on-year to RMB2,193.5 million. Revenue from office software and services business increased 21% year-on-year to RMB1,120.8 million. Revenue from online games and others business increased 18% year-on-year to RMB1,072.6 million. Revenue from office software and services and online games and others represented 51% and 49%, respectively, of total revenue for the second quarter of 2023. Gross profit for the second quarter of 2023 increased 25% year-on-year to RMB1,831.8 million, while operating profit increased 61% year-on-year to RMB675.7 million.

Mr. Jun LEI, Chairman of the Company, commented, “Our core businesses achieved robust growth in the second quarter of 2023. Kingsoft Office Group has seized emerging opportunities brought about by large language models (“LLMs”), actively engages in product development within this field to enhance users’ work efficiency. Meanwhile, the Group addresses the digital transformation needs of organizational users, aligning with the ‘multi-screen, cloud, content, artificial intelligence (“AI”), collaboration’ strategy, presenting solid growth in its business performance. Online games business focuses on developing premium games. Flagship JX Online III continued to enjoy popularity among players and achieved record-high quarterly gross billings. Anime game Snowbreak: Containment Zone expanded our user base and tapped into international markets, showcasing our determination to explore new game genres and global markets. The steady progress of our core businesses provides a solid foundation for the execution of our strategy.”

Mr. Tao ZOU, Chief Executive Officer of the Company, added, “The Group achieved strong revenue growth in the second quarter, reaching RMB2,193.5 million, marking a year-on-year increase of 20%. This growth was primarily driven by the exceptional performance of the JX Online III and sustainable growth in subscription businesses of both individuals and institutions from Kingsoft Office Group. Operating profit amounted to RMB675.7 million, exhibiting a year-on-year growth of 61%. These achievements reflected our continuous efforts to enhance core competitiveness, getting well prepared to seize new opportunities.”

BUSINESS REVIEW
Office Software and Services
For the first half of 2023, revenue from office software and services business increased 21% year-on-year to RMB2,172.5 million. Revenue in the second quarter increased 21% year-on-year to RMB1,120.8 million. Kingsoft Office Group embraces the opportunities brought about by AI and introduced WPS AI, an intelligent office assistant based on LLMs, initiated its Open Beta overseas. The Group unveiled the spring version of WPS Office, enhancing product capabilities, and providing seamless cloud integration experience.

In individual subscription business, Kingsoft Office Group took comprehensive steps towards improving user experience. While adhering to a long-term membership strategy, we merged functional and resource-based memberships, upgrading the membership benefits structure, and offered tailored benefits for specific needs.

Related to institutional subscription business, Kingsoft Office Group continued promoting cloud integration and collaborative office progress and delving into business scenarios for government and enterprises. The Group deepened product capabilities to serve industries such as finance, energy, publishing, healthcare, and high-end manufacturing. This involved incubating secure and efficient industry-specific solutions, aiming at enhancing organizational efficiency for institutions. We consistently expanded our ecosystem, and jointly built digital office application scenarios with partners.

Kingsoft Office Group has closely monitored the localization industry policy changes and customer demand, and taken the initiative to tap local government and industry localization markets in advance. In terms of overseas business, based on a solid foundation in the mobile sector, we continued to cultivate our user base on desktop platforms. Looking ahead, Kingsoft Office Group will uphold the service concept of “user first” and “relentless innovation”, ensuring that more users can easily enjoy the benefits of intelligent office solutions.

Online Games and Others
In the first half of 2023, revenue from online games and others increased 5% year-on-year to RMB1,991.3 million, and revenue for the second quarter of 2023 increased by 18% year-on-year to RMB1,072.6 million. Our online gaming business demonstrated outstanding performance over the quarter, reflecting our ability to sustain premium games’ longevity. This success reflected in the increase in daily active users and gross billings of JX Online III. We have remained committed to enhancing the content and players experience of JX Online III, resulting in positive response. Self-developed game, Snowbreak: Containment Zone, combining shooting gameplay and anime aesthetics, provided users with fresh and innovative gaming experience. This game was simultaneously launched on both PC and mobile platforms worldwide. It achieved instant acclaim by topping the free games chart on the iOS App Store in China, as well as in major international markets like the US, Japan, and South Korea upon its launch.

Looking ahead, we will maintain our commitment to a user-oriented approach, paying close attention to feedback and suggestions from our players. Meanwhile, we have been enhancing and optimizing our games to further enrich the user experience. In the fourth quarter, we plan to launch the upgrade version of JX Online III PC game, further extending the IP’s vitality. Self-developed mobile game World of Sword Origin, which has received gaming license approval, is scheduled for release in Mainland China.

Mr. Jun LEI concluded: “We are confident in the future opportunities and challenges. The Group will manage core businesses steadily, drive innovation, create top-tier digital office services and premium gaming content for a global user base. We adhere to technology-driven business, committing to high-quality sustainable development, aiming to deliver better products and services to our users and create 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 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:
Francie Lu Tel: (86) 10 6292 7777 Email: ir@kingsoft.com
For further queries, please contact Hill+Knowlton Strategies Asia:
Ovina Zhu Tel: (852) 2894 6315 Email: kingsoft@hkstrategies.com

• Institutional Subscription Business Records Remarkable Growth with Rising Demand of Digital Transformation in Government and Enterprises
• JX World III mobile game Achieves Great Performance with Increased Player Activeness of JX Online III

On 21 March 2023, Kingsoft Corporation Limited (Kingsoft or the Company; HKG: 3888), a leading Chinese software and Internet service company, has announced its 2022 annual results and fourth quarter results for the period ended 31 December 2022.

For the year of 2022, the revenue of Kingsoft increased 20% year-on-year to RMB7,636.7 million. Revenue from the office software and services and online games and others represented 51% and 49%, respectively, of the Company’s total revenue for the year of 2022. Gross profit for the year of 2022 increased 18% year-on-year to RMB6,177.0 million, while operating profit amounted to RMB1,868.7 million.

For the fourth quarter of 2022, the Company’s revenue increased 16% year-on-year and 15% quarter-on-quarter to RMB2,112.4 million. Revenue from the office software and services and online games and others represented 52% and 48%, respectively, of the Company’s total revenue for the fourth quarter of 2022. Gross profit for the fourth quarter of 2022 increased 20% year-on-year and 19% quarter-on-quarter to RMB1,740.8 million, while operating profit amounted to RMB618.7 million.

Mr. Jun LEI, Chairman of Kingsoft, commented, “2022 was full of challenges and uncertainties, in which we actively embraced changes, maintained strategic focus, and further strengthened our core competitiveness. Kingsoft Office Group was committed to empowering the digital transformation of institutional customers and enhancing the cloud office user experience for individual users. Our business performance showed resilience, with the strategy of ‘multi-screen, cloud, content, artificial intelligence (“AI”) and collaboration’. Online games business focused on the development of premium games, and our flagship and new launched titles gained popularity. All these achievements have given us confidence to keep advancing our strategy in the enterprise services and online games sectors.”

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, “The Group’s businesses continued to make robust progress in 2022, with total revenue reaching RMB7,636.7 million, increasing by 20% year-on-year. In 2022, the office software and services business maintained solid growth with revenue of RMB3,890.6 million, up 19% year-on-year. Notably, individual and institutional subscription businesses grew robustly. The online games and others business experienced solid growth, with annual revenue reaching a new record high of RMB3,746.2 million in 2022, up 21% year-on-year, as the result of outstanding performance of JX World III mobile game. Operating profit of the group was RMB1,868.7 million in 2022, increasing significantly by 37% year-on-year. These results reflected the resilience of our business model, efficiency of our business execution, as well as years of investment in R&D of our Group’s core products.”

BUSINESS REVIEW
Office Software and Services
In 2022, revenue from office software and services business increased 19% year-on-year to RMB3,890.6 million. The year-on-year increase was mainly due to the sustainable growth of individual subscription business, and fast growth of institutional subscription business, partially offset by the decreases in institutional licensing and internet advertising businesses of Kingsoft Office Group. Revenue in the fourth quarter increased 21% year-on-year and 9% quarter-on-quarter to RMB1,090.2 million. The year-on-year increase was mainly due to the sustainable growth of individual subscription business, and robust growth of institutional subscription business of Kingsoft Office Group.

Despite the sluggish shipments of global PC and smartphone markets, the number of monthly active devices of Kingsoft Office Group’s main products continued to grow against the trend in 2022. We constantly optimized the user experience of our products in cross-platform scenarios such as cloud and collaboration to encourage users to use cloud document services continuously. By the end of 2022, the number of documents uploaded to the public cloud platform has exceeded 175.2 billion, up 35% year-on-year. We continued to add membership privileges of WPS and Docer to attract users to become paying subscribers, enhance user loyalty, achieve stable growth in the number of paying subscribers, increase the proportion of long-term members, and optimize the membership structure.

Kingsoft Office Group deeply served the digital transformation of domestic government and enterprises, catered for their needs of efficiency improvement, data management, information security and industry scenario applications, and continued to promote their end-to-cloud integration and collaboration process. In response to the government’s demand for standardized, efficient, and long-term electronic document management, we launched an electronic document resource library product. Making full use of cloud computing, big data, AI and other technologies, we assisted party and government agencies in building electronic document resource library platforms and supported the full lifecycle management of electronic documents in digital government construction. For premium enterprise customers, we provided modular digital office empowerment services, continuously advancing the enterprise cloud integration process, addressing core pain points of enterprises, such as “improving efficiency, enhancing data security, and controlling costs”, and assisting enterprises in achieving cost reduction and efficiency improvement. For the public cloud service, our full range of digital office platform products with tiered versions were utilized to encourage customers to use cloud and collaboration applications in high frequency, which enhanced user engagement and payment retention.

Kingsoft Office Group has closely monitored the localization industry policy changes and customer demand, and taken the initiative to tap local government and industry localization markets in advance. Starting from the replacement needs of industries such as finance, operators, and energy, we promoted the adoption of the Windows/Linux dual-version annual venue mode and deepened their cloud and collaboration office process.

Looking forward, following the strategy of ‘multi-screen, cloud, content, AI and collaboration’, Kingsoft Office Group will focus on AI to achieve more breakthroughs in technology applications, and continue to explore innovative business models and optimize user experiences. At the same time, we will continuously improve service quality, empower government and enterprises with high-quality products and technological services, and assist them in achieving digital transformation more effectively.

Online Games and others
Revenue from the online games and others business for 2022 increased 21% year-on-year to RMB3,746.2 million. The year-on-year increase was mainly due to the successful launch of several mobile games which broadened our games portfolio in the fourth quarter of 2021, such as JX World III and JX I: Gui Lai, partially offset by decreased revenue from existing games. Revenue for the fourth quarter of 2022 increased 11% year-on-year and 23% quarter-on-quarter to RMB1,022.3 million. The year-on-year increase was mainly due to revenue contribution from JX World III mobile game released in the fourth quarter of 2021, and revenue growth from JX Online III driven by continuous improvement in content, gameplay and overall user experience, partially offset by decreased revenue from existing games.

Online games business continuously cultivated key IP franchises more deeply and broadly, and further enhanced the value of core IPs. Flagship JX Online III marched into its thirteenth year and remained steady, and we put our focus on driving players’ engagement. We launched two expansion packs and conducted multiple in-game events and campaigns to improve player activeness in 2022. In October, the number of daily active accounts achieved a recent high with the successful release of the anniversary expansion pack for JX Online III, Heng Dao Duan Lang. To further enrich our game content, we actively incorporated traditional cultural elements and launched a series of IP crossover campaigns in this game.

JX World III mobile game, one of the classic JX IP, performed strongly in 2022. In order to bring more immersive and authentic wuxia world experience to players, we continued to introduce distinctive gameplay and content to keep players engaged and entertained. We launched three expansion packs in 2022 on the basis of weekly updates. In August, we released the open beta across all platforms in Chinese mainland.

Looking ahead, we will proactively make progress in new game genres and overseas markets. Our new anime games, Snowbreak: Containment Zone and The Other Shore, have received the approval of gaming licenses and are expected to be released in China and aboard from the second half of 2023. We will focus on long-term operation of existing titles. The upgrade version of JX Online III PC game is expected to be launched by the end of 2023, laying the foundation for JX3 Ultimate and ensuring high-quality game iteration.

Mr. Jun LEI concluded, “In 2022, we achieved steady growth. In 2023, we will continue to seek progress while maintaining stability, and drive business growth with technology and service innovation. For office software and services business, we will continue to empower enterprises’ digital transformation, focus on AI to achieve more breakthroughs in technology applications, reconstruct and optimize the membership system, further promote the transformation of subscriptions. For online games business, we will continue to extend the longevity of premium games based on original IPs, actively expand new game genres and pursue opportunities in overseas markets. Amid increasingly fierce industry competition, we believe that by relying on technological innovation, products and services enhancements and operations optimization, we will achieve further high-quality 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:
Francie Lu Tel: (86) 10 6292 7777 Email: ir@kingsoft.com
For further queries, please contact Hill+Knowlton Strategies Asia:
Ovina Zhu Tel: (852) 2894 6315 Email: kingsoft@hkstrategies.com

• Kingsoft Office Group Achieves Significant Growth in Office Software and Services Business
• Adheres to the Strategy of Premium Games and Optimizes Game Experience

Kingsoft Corporation Limited (Kingsoft or the Company; HKG: 03888), a leading Chinese software and Internet service company, has announced its unaudited quarterly results for the three months ended 30 September 2022 (period under review).

During the period under review, the revenue of Kingsoft increased 22% year-on-year and kept flat quarter-on-quarter to RMB1,837.1 million. Revenue from the office software and services, and the online games and others represented 55% and 45%, respectively, of total revenue. Gross profit increased 18% year-on-year to RMB1,466.2 million. Operating profit before share-based compensation costs increased 10% year-on-year to RMB395.3 million.

Mr. Jun LEI, Chairman of Kingsoft, commented, “The Group adheres to technological empowerment, with a focus on developing core products and technologies. During the quarter, our core businesses demonstrated strong resilience. Leveraging its accumulated experience and strengths in products and technologies development, Kingsoft Office Group continued to pursue the strategy of ‘multi-screen, cloud, content, artificial intelligence (“AI”) and collaboration’ and improve its products and services solutions, aiming to increase user stickiness for cloud and collaboration office scenarios. Regarding our online games business, we have adhered to the strategy of premium games and focused on the long-term development of core games.”

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, “During the third quarter, our total revenue reached RMB1,837.1 million, up 22% year-on-year. Driven by the continued growth of individual and institutional subscription businesses, revenue from office software and services business reached RMB1,004.7 million, up 25% year-on-year.

BUSINESS REVIEW
Office Software and Services
For the third quarter of 2022, revenue from the office software and services business increased 25% year-on-year and 9% quarter-on-quarter to RMB1,004.7 million. The year-on-year increase was mainly due to the continued growth of Kingsoft Office Group’s individual and institutional subscription businesses.

In the third quarter, with a growing individual user base, Kingsoft Office Group strived to increase user engagement and stickiness and the proportion of long-term paying users by enhancing cloud services, enriching product portfolio and improving user experience. Kingsoft Office Group has dedicated itself to improving application performance for the government and enterprise subscription business by working on user efficiency, data management, information security and industry application scenarios in order to cater to the need of users which has led to a growing penetration of the enterprise-level product, Kingsoft Digital Office Platform. As for the institutional licensing business, our products continued to gain acceptance by increasing demand for domestic office software from government and enterprises, partially offset the high base for the same period last year and slower localization progress this year. Recently, we launched the official document version of WPS for the government users. Developed upon the professional version of WPS, it offers industry-leading functions such as official document work mode, a variety of official document templates, and document conversion to optimize document work efficiency of government users.

Online Games and Others
Revenue from the online games and others business for the third quarter of 2022 increased 18% year-on-year to RMB832.4 million. The year-on-year increase was mainly due to the successful launch of several mobile games in the fourth quarter of 2021.

During the review period, we continued to refine the core IP, enrich the content and enhance product quality through technological innovation aiming to bring players a better gaming experience. We celebrated the 13th anniversary of the flagship JX Online III PC game in August and launched Heng Dao Duan Lang, the anniversary expansion pack and a new section Dao Zong for the JX Online III PC game in October. The third season of JX Online III: Chivalrous Shen Jianxin, an animation series based on the JX Online III was released on Bilibili in July and was welcomed by gamers. The rating of the animation series on Bilibili reached a record high and the influence of JX IP has been further enhanced. In August, we launched the open beta across all platforms and a new expansion pack for JX World III in China. The launch has further enhanced user engagement and reached a broader player base laying a solid foundation for our long-term development.”

Mr. Jun LEI concluded, “Looking ahead, we will maintain our investment in R&D, further enhance the user experience for our ‘cloud and collaboration’ office services and expand new game genres. We will continue to focus on technology innovation and product upgrades and enhance competitiveness and efficiency, aiming for the long-term sustainable development of the Group.”

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:
Francie Lu Tel: (86) 10 6292 7777 Email: ir@kingsoft.com

For further queries, please contact Hill+Knowlton Strategies Asia:
Ovina Zhu Tel: (852) 2894 6315 Email: kingsoft@hkstrategies.com