Tag: Kingsoft Corporation Limited

• Kingsoft Office Group Continues to Pursue “Multi-screen, Cloud, Content, AI and Collaboration” Product Strategy
• Online Games Business Maintains Focus on Premium Game Strategy

Kingsoft Corporation Limited (Kingsoft or the Company; HKG: 3888), a leading Chinese software and Internet service company, has announced its unaudited 2022 interim results and its second quarter results for the period ended 30 June 2022.

For the first half of 2022, the revenue of Kingsoft increased 21% year-on-year to RMB3,687.2 million. Revenue from office software and services business increased 15% year-on-year to RMB1,795.7 million. Revenue from online games and others increased 28% year-on-year to RMB 1,891.5 million. Revenue from office software and services and online games and others represented 49% and 51%, respectively, of total revenue for the first half of 2022. Gross profit for the first half of 2022 increased 18% year-on-year to RMB2,970.0 million, while operating profit amounted to RMB918.2 million.

For the second quarter of 2022, the Company’s revenue increased 24% year-on-year to RMB1,834.2 million. Revenue from office software and services business increased 18% year-on-year to RMB924.6 million. Revenue from online games and others business increased 31% year-on-year to RMB909.6 million. Revenue from office software and services and online games and others represented 50% and 50%, respectively, of total revenue for the second quarter of 2022. Gross profit for the second quarter of 2022 increased 22% year-on-year to RMB1,467.7 million, while operating profit increased 82% year-on-year to RMB418.7 million.

Mr. Jun LEI, Chairman of the Company, commented, “Despite the challenges posed by the recurrence of the pandemic, we remained focused on our strategy and achieved satisfactory results in our core businesses. Kingsoft Office Group is committed to empowering the digital transformation of institutional users while enhancing the cloud office user experience for individual users. We focus on technological empowerment, product innovation, service enhancement as well as marketing channel and eco-system expansion. Meanwhile, we continue to pursue the product strategy of ‘multi-screen, cloud, content, artificial intelligence (“AI”) and collaboration’ and have achieved good operational performance. Regarding our online games business, we adhere to a strategy on premium games and focus on technology innovation, as well as constant cultural facets enrichment, which promote further game development.”

Mr. Tao ZOU, Chief Executive Officer of the Company, added, “For the second quarter of 2022, the Company’s revenue increased 24% year-on-year to RMB1,834.2 million. Driven by the growth of subscription revenue from individual and institutional subscription businesses, our office software and services business increased by 18% year-on-year during the second quarter of 2022. Our online games and other business increased by 31% year-on-year during the second quarter of 2022, primarily driven by the contribution of mobile games launched in the fourth quarter of 2021 such as JX World III and JX I: Gui Lai.”

BUSINESS REVIEW
Office Software and Services
During the quarter, the revenue of office software and services increased 18% year-on-year to RMB924.6
million. Individual subscription business sustained growth momentum. Based on the continuous enhancement of cloud office experience, Kingsoft Office Group developed and introduced various new functions dedicated to specific scenarios to drive the active use of cloud services and continuous increase in subscription payment. We remained focused on attracting more long-term paying users and the number of premium subscribers continued increasing.

In response to the government departments demand for digital management, end-to-cloud integration and mobile office, our products are highly compatible with government office systems, which assist the government in achieving informatization gradually and realizing centralized document management, effective and efficient file application, collaboration features, security control etc. In response to soaring demand for digital transformation among enterprises, our core products focus on solving pain points such as uploading documents to the cloud and ensuring file transfer security through continued optimization and the assistance of quality customer services.

Kingsoft Office Group has closely monitored the localization industry trend. As the localization gradually penetrates into local government, we take the initiative to tap those markets. Driven by favorable policies and industry demand, our penetration in the industry localization continues to increase. In addition, demand for integrated end-to-cloud products from customers in the localization industry, such as finance, energy and telecommunications, also continues to grow. We have further optimized the re-flowable and fixed-layout document format standards of our localization products to provide an efficient and integrated user experience, which would further strengthen the competitiveness of our products.

Kingsoft Office Group continued to strategically play down its advertising business by reducing the number of advertising spaces and the frequency of push notifications. Since we strived to improve the quality of clicks and reduce user interference, our advertising business was undergoing a steady and gradual decline.

Online Games and Others
During the quarter, the revenue of online games and other business increased by 31% year-on-year to RMB909.6 million. Our flagship JX Online III PC game remained stable. Upon the launch of the non-deleting test in China at the end of last year, JX World III maintained an outstanding reputation and a high popularity among gamers. In addition, the game launched in Hong Kong, Macau and Taiwan during the quarter and achieved an excellent performance.

Looking ahead to the third quarter, we launched the open beta across all platform and a new section for JX World III and will celebrate the 13th anniversary of JX Online III PC game. Through continuous content upgrade and technology innovation, we strive to sustain the vitality of our core I P. Meanwhile, we also uphold our corporate responsibility and continue to explore the social value of our games. Biphase, our initial self-developed charity game which focuses on bipolar disorder, has received multiple awards and acclamation from international gaming authorities upon its debut overseas last year. In addition, the game has also received the license approval in July this year and is scheduled for launch in China.

Mr. Jun LEI concluded: “In the second quarter, we embraced the change of the complex environment and achieved further development by continuously enhancing our products and services. Looking ahead, the Group will adhere to technological empowerment, maintain our investment in R&D and enhance operational efficiency. We will keep focusing on our core strategies, adhere to integrity and innovation to empower our users and partners and create long-term returns 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

• Kingsoft Office Group Achieves Significant Increase in Institutional Subscription Business
• Online Games Business Delivers Steady Growth

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 31 March 2022 (period under review).

During the period under review, the revenue of Kingsoft increased 19% year-over-year and 2% quarter-over-quarter to RMB1,853.0 million. Revenue from the office software and services, and the online games and others represented 47% and 53%, respectively, of total revenue. Gross profit increased 14% year-over-year and 4% quarter-over-quarter to RMB1,502.3 million. Operating profit before share-based compensation costs increased 5% year-over-year and 42% quarter-over-quarter to RMB573.7 million.

Mr. Jun LEI, Chairman of Kingsoft, commented, “Amidst the evolving market and new challenges, we have successfully seized the opportunity for digital transformation and achieved a decent start in our core businesses. During the quarter, Kingsoft Office Group continued to pursue the strategy of ‘multi-screen, cloud, content, artificial intelligence (“AI”) and collaboration’, upgrade its cloud office services and solutions, expand its user base and enhanced market penetration. In the online games business, we continued to focus on the R&D of premium games, promote the long-term development of core games and the overseas market expansion.”

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, “The Company maintained steady performance across all businesses in the first quarter with total revenue reaching RMB1,853.0 million, increasing by 19% year-on-year. Driven by the continued growth of subscription revenue from individual and institutional users, our office software and services business in the first quarter increased by 13% year-on-year. With the contribution of our new mobile games launched in the fourth quarter of 2021, our online games and other business in the first quarter increased by 25% year-on-year.”

BUSINESS REVIEW

Office Software and Services
For the first quarter of 2022, revenue from the office software and services business increased 13% year on year to RMB871.1 million. The year-on-year increase was mainly due to the continued growth of Kingsoft Office Group’s individual and institutional subscription business.

During the quarter, the robust year-on-year growth of domestic individual subscriptions business was primarily driven by the ongoing user base expansion and growth in the number of long-term paying users. Meanwhile, during the COVID-19 pandemic, the highly effective collaboration functions of WPS Docs facilitated information sharing and drove a continuous increase in the number of uploaded cloud documents. Regarding the government and enterprise market, Kingsoft Office Group continued to enhance the solution quality of cloud and collaboration, bring brand-new experiences to users, and further promote cloud office migration and penetration. Kingsoft Office Group continued to optimize its solutions, enhance the eco-system construction and channel capabilities, and seize new opportunities arising from digital government and the industry digital transformation.

Online Games and Others
Revenue from the online games and other businesses for the first quarter of 2022 increased 25% year-on-year and 7% quarter-on-quarter to RMB981.9 million. The increases were mainly due to the successful launch of several mobile games in the fourth quarter of 2021.

JX World III, which was launched at the end of 2021, achieved an excellent performance in the quarter, and further demonstrated our strengths in R&D and operation of premium games. Meanwhile, we continued to optimize our newly launched titles. In April 2022, we received the license approval for JX Online III Origin and launched its open beta on 13 May. In view of globalization, we strive to increase our product presence in international markets. As such, JX World III was launched in Southeast Asia in March 2022, and Wu Lin Xian Xia was launched in Hong Kong, Macao, and Taiwan in April 2022, and will also be released in South Korea in the third quarter of the year.

Mr. Jun LEI concluded, “The results we achieved in the first quarter lays a solid foundation for the year 2022. Looking ahead, the Company will continue to adhere to technological empowerment and keep investing in R&D . We will also strengthen our products and services, optimize the user experience and strive to build a brighter future together with our users and partners.”

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

• Continue to Develop the “Cloud and Collaboration” Ecosystem
• New Games Achieve Great Performance

Kingsoft Corporation Limited (Kingsoft or the Company; HKG: 3888), a leading Chinese software and Internet service company, has announced its 2021 annual results and fourth-quarter results for the period ended 31 December 2021.

For the year 2021, the revenue of Kingsoft increased 14% year-on-year to RMB6,371.4 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 2021. Gross profit for the year 2021 increased 11% year-on-year to RMB 5,214.3 million, while operating profit amounted to RMB1,360.6 million.

For the fourth quarter of 2021, the Company’s revenue increased 13% year-on-year and 21% quarter-on-quarter to RMB1,822.1 million. Revenue from the office software and services and online games and others represented 50% and 50%, respectively, of the Company’s total revenue for the fourth quarter of 2021. Gross profit for the fourth quarter of 2021 increased 8% year-on-year and 17% quarter-on-quarter to RMB1,449.6 million, while operating profit amounted to RMB331.4 million.

Mr. Jun LEI, Chairman of Kingsoft, commented, “In 2021, we are poised to achieve a steady growth in our core businesses leveraging our continuous investment in technological innovation. Kingsoft Office Group understands user needs and has further enhanced its products and services. It has also continued to pursue the ecosystem strategy of “multi-screen, cloud, content, artificial intelligence (“AI”) and collaboration” and achieved an excellent operation performance. Meanwhile, our online games business has launched several new mobile games during the year while continuing to focus on the development of premium games, long-term operation and enrichment of core game IPs.”

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, “The Group’s business continued to achieve steady growth, with revenue reaching RMB6,371.4 million, increasing by 14% year-on-year. Our office software and services business maintained a solid growth momentum and its revenue increased 45% year-on-year.”

BUSINESS REVIEW
Office Software and Services
In 2021, revenue from office software and services business increased 45% year-on-year to RMB3,264.8 million. Revenue in the fourth quarter increased 19% year-on-year and 12% quarter-on-quarter to RMB903.9 million.

In 2021, Kingsoft Office Group continued to enhance its products and services for cloud office and collaboration office scenarios. With increasing user activeness and user stickiness in individual and enterprise users, cloud migration of both domestic individual and institutional subscriptions has accelerated. With the stable growth in the number of monthly active devices of its key products, Kingsoft Office Group has continued to optimize its user experience and products functions, promote cloud migration, increase usage of its value-added functions and further drove the growth in its number of paying users. In addition, the significant increase in the number of uploaded cloud documents and the increase in the proportion of long-term paying users have also laid a solid foundation for the development of the individual subscription business in the future.

Regarding the government and enterprise market, Kingsoft Office Group took advantage of the industry trend on the demands of government and enterprise users for data asset management and office efficiency improvement and has actively improved product systems, enhanced user experience and expanded eco-systems, to promote the cloud office migration of government and enterprise users. This has also set a solid foundation for its subsequent promotion of digital office platform solutions. As the cloud migration of government and enterprise users continues, Kingsoft Office Group is expected to increase its presence in the government and enterprise market.

In addition, Kingsoft Office Group has witnessed a strong demand growth from the government and enterprise users, as localization projects enter a booming stage with a fast-growing market leveraging the favourable policies. Moreover, Kingsoft Office Group also received substantial orders for its re-flowable and fixed-layout document format products which lead to the robust growth of its domestic institutional licensing business.

Online Games and others
Revenue from the online games and other businesses for 2021 was RMB3,106.6 million. Revenue for the fourth quarter of 2021 increased 8% year-on-year and 30% quarter-on-quarter to RMB 918.2million. The steady year-on-year growth in the fourth quarter was mainly due to the successful launch of several mobile games which diversified the Company’s game portfolio. In the fourth quarter, revenue from the flagship JX Online III PC game and the classic JX 2D PC game grew steadily quarter-on-quarter. Moreover, we have also achieved breakthroughs in product development demonstrating the vitality of the core IP and our strong R&D and operational capabilities.

Following the successful release of the JX I Pocket mobile game in Vietnam in April 2021, JX I: Gui Lai, the domestic version of JX I Pocket mobile game was released in October. Upon its debut, JX I: Gui Lai was ranked third in the top free charts and first in the top-grossing role-playing game (RPG) charts for iOS. In November, Wu Lin Xian Xia, our self-developed mobile game, was released in China with the highest-ranking sixth in the top-grossing charts for iOS, demonstrating our successful strategic cooperation with Nuverse. In December, JX World III, the third generation of the JX World series mobile games, was launched. Upon its launch, JX World III ranked first in the top free charts and ninth in the top-grossing charts for iOS. In addition, the mobile game was also recommended on the front page of Apple Today and was recognized as a superstar product by the Mobile Hardcore Alliance.

Mr. Jun LEI concluded, “Looking forward, Kingsoft Office Group will ride on the trend of cloud and collaboration office and continue to invest in product research and development. It will also further explore the opportunities in the enterprise market and strive to empower the digital transformation of large-scale organizations. Regarding our online games business, we will maintain the development of our core IP while focusing on bringing new game genres and new IPs. Looking ahead, we will continue to invest in R&D, promote technological innovation and upgrades, and pursue social responsibility to ensure long-term sustainable growth of our business.”

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 two subsidiaries including Kingsoft Office and Seasun. 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 an important 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 to Pursue “Multi-screen, Cloud, Content, AI and Collaboration” Strategy
• Online Games Business to Focus on Premium Game Strategy

Kingsoft Corporation Limited (Kingsoft or the Company; HKG:3888), a leading Chinese software and Internet service company, has announced its unaudited 2021 interim results and its second-quarter results for the period ended 30 June 2021.

For the first half of 2021, the revenue of Kingsoft increased 17% year-on-year to RMB3,039.1 million. Revenue from office software and services business increased 70% year-on-year to RMB1,557.2 million. Revenue from office software and services and online games and others represented 51% and 49%, respectively, of the Company’s total revenue for the first half of 2021. Gross profit for the first half of 2021 increased 16% year-on-year to RMB2,523.7 million, while operating profit amounted to RMB741.9 million.

For the second quarter of 2021, the Company’s revenue increased 4% year-on-year to RMB1,479.5 million. Revenue from office software and services business increased 47% year-on-year to RMB786.2 million. Revenue from office software and services and online games and others represented 53% and 47%, respectively, of the Company’s total revenue for the second quarter of 2021. Gross profit for the second quarter of 2021 remained flat year-on-year and amounted to RMB1,207.9 million, while operating profit amounted to RMB229.8 million.

Mr. Jun LEI, Chairman of Kingsoft, commented, “We maintained a steady performance in all businesses in the first half of 2021. Kingsoft Office Group seized the opportunity for digital transformation and will continue to pursue the strategy of “multi-screen, cloud, content, AI and collaboration”. In the online games business, we continued to focus our strategy on premium games, increase our investment in R&D and continuously expand new game genres.”

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, “In the first half of 2021, revenue of the Company continued to grow steadily. Our total revenue came in at RMB3,039.1 million, up 17% year-on-year. Our office software and services business recorded a strong growth of 70% and 47% year-on-year, respectively, for the first half and second quarter of 2021. Our total revenue in the second quarter was RMB1,479.5 million, up 4% year-on-year.”

BUSINESS REVIEW
Office Software and Services
For the first half of 2021, revenue from office software and services business increased 70% year-on-year to RMB1,557.2 million. Revenue in the second quarter increased 47% year-on-year to RMB786.2 million. The rapid revenue increase was largely due to robust growth from licensing business and sustainable growth from subscription services business of Kingsoft Office Group. The revenue growth of licensing business was driven primarily by increasing demand for localization, as well as cloud and collaboration services from government and enterprises. The increase of subscription services business was mainly due to growing demand for cloud and collaboration services and enhancement of user stickiness from personal users.

In the second quarter of 2021. As the localization project has entered a mature period and customer demand increased significantly, we continued to witness a strong revenue growth from the localization project during this quarter. With the enhanced collaboration between the subsidiary, Beijing Suwell Technology Co., Ltd., and Kingsoft Office Group, the fixed-layout document format standards have been increasingly adopted by the market, thus further optimizing the localization business ecosystem. Our cloud and collaboration office solutions effectively promoted the cloud office migration and penetration in the government and enterprise market and it brought us strong year-on-year revenue growth for the sustainable licensing business. Kingsoft Office Group has also continued to develop the micro, small and medium-sized enterprise market. As of 30 June 2021, over 1 million micro, small and medium-sized enterprises covering 19 industries are registered users of WPS+. Kingsoft Office Group organized the 2021 Office Application Developer Conference in July and launched Document Open Platform, our first product enabling global office application developers to facilitate a digital office as well as digital transformation in the government and enterprise market in China.

Meanwhile, Kingsoft Office Group has continued to optimize the user experience, and improve its customer loyalty through the application of cloud and collaboration services. We continued to enhance the penetration within the public cloud market and promote the growth of the office subscription business. During the quarter, Kingsoft Office Group launched various new functions for the WPS membership services and further optimized the user experience. In April, Kingsoft Office Group organized a content ecosystem conference in Wuhan and strived to promote the transformation of our core WPS products from office tools to office services.

In the first half of 2021, Kingsoft Office Group began the transformation of internet advertising business. We took the initiative to further adjust the advertising strategy to reduce interruptions from advertisements to users and enhance users’ cross-platform collaboration experience. During the second quarter of 2021, the internet advertising and promotion services business maintained a steady year-on-year growth with the increase in user base, while its proportion in office software and services business revenue continued to decline.

Online Games and others
Revenue from the online games and others business for the first half of 2021 amounted to RMB1,481.9 million and revenue for the second quarter of 2021 amounted to RMB693.3 million. In the second quarter, the online games business continued to enhance the core IP value of the JX series and to expand the development of new game genres. In April, the JX I: Gui Lai mobile game was successfully released in Vietnam. Among all Role Playing Games (RPG) games, the JX I: Gui Lai mobile game ranked first on both iOS and Android download charts in the first month of its debut. In May, the First-Person Shooting (FPS) game Bullet Angel was first released in Southeast Asia and got recommended by Google Play. In June, we released War of the Visions: Final Fantasy Brave Exvius, the latest game of the Final Fantasy Brave Exvius series developed by SQUARE ENIX, was released in China and it was also recommended by Apple Store.

In the coming quarters, the online games business will continue to focus on the long-term development of our classic IPs and to promote the launch of new games at the same time. We will celebrate the 12th anniversary of our flagship JX Online III Revamped PC game and launch a new expansion pack to further strengthen the longevity and vitality of our core IP. In addition, the JX World III mobile game will be launched within this year with a comprehensive upgrade in its visual design and gameplay.

Mr. Jun LEI concluded, “In the first half of 2021, we achieved a stable performance of our core businesses. Looking forward, we will continue to increase our investment in R&D, promote technological innovation, enhance technological capabilities, and develop new products and services. We will strive to bring the best experience to our users and customers and are committed to the sustainable growth of our business, bringing long-term value and returns to our shareholders and achieve a win-win situation for our partners.”

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 two subsidiaries including Kingsoft Office and Seasun. Following the implementation of its “mobile internet transformation” strategy, Kingsoft has completed the comprehensive transformation of its overall businesses and management models and formed a strategic platform with interactive entertainment and office software as the pillars and cloud services and AI as the new directions. The Company has more than 6,000 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 Driven by Development of Ecosystem for Cloud and Collaboration
JX Online III PC Game Delivers Solid Performance

Kingsoft Corporation Limited(stock code: 03888), a leading Chinese software and Internet service company, has announced its unaudited quarterly results for the three months ended 31 March 2021 (period under review).

During the period under review, the revenue of Kingsoft increased 33% year-over-year to RMB1,559.6 million. Revenue from the online games and others and office software and services represented 51% and 49%, respectively, of total revenue. Gross profit increased 36% year-over-year to RMB1,315.9 million, while profit attributable to owners of the parent increased 1,763 % year-over-year to RMB116.6 million.

Mr. Jun LEI, Chairman of Kingsoft, commented, “Our first-quarter results signal a good start for the year as we continued to focus on office application services for government, enterprises and individuals, and high-quality IP and premium games. Kingsoft Office Group seized the opportunity for digital transformation and will continue to develop the ecosystem for cloud and collaboration. In our online games business, we maintained steady development of our core games while actively carrying out research and development for new game genres.”

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, “In the first quarter, the Company achieved a decent start to the year. Our total revenue came in at RMB1,559.6 million, up 33% year-on-year, while our office software and services business recorded strong year-on-year growth of 104%. With the robust growth of office software and services revenue, our operating profit in the first quarter was RMB512.1 million, up 33% compared to the same period last year.”

BUSINESS REVIEW
Office Software and Services
For the first quarter of 2021, revenue of the Company from the office software and services increased 104% year-on-year to RMB771.0 million. Kingsoft Office Group achieved significant growth, mainly driven by the accelerated development of its ecosystem for cloud and collaboration. Kingsoft Office Group is dedicated to transforming to a premium service provider of cloud and collaboration office solutions, continuously improving its products experience and promoting cloud office migration and penetration in the government and enterprise markets. As the localization business has entered a mature period, the customer procurement increased. Therefore, Kingsoft Office Group has witnessed an exponential growth in its office software product licensing business during this quarter.

WPS Office assisted the development of the information technology system for China’s 2021 Two Sessions. During the Two Sessions, customized office software document services of WPS Office were provided to facilitate online transmission, review and approval of all official documents. Kingsoft Office Group has also accelerated its development of commercial distribution network. The 2021 Partner Conference of the Kingsoft Office Group was held in April 2021, attracting more than 1,000 attendees from its distributors and service provider partners across the ecosystem.

Meanwhile, Kingsoft Office Group has continued to optimize user experience for individuals and enterprises and improved its customer loyalty through the application of cloud and collaboration. It has also continued to enhance the penetration within the public cloud market and to promote the growth of the office service subscription business.

As at 31 March 2021, monthly active users of Kingsoft Office Group’s core products reached 494 million, achieving a year-on-year growth of 11%. Monthly active users of PC edition and mobile edition of WPS Office amounted to 194 million and 294 million, with a year-on-year increase of 15% and 8% respectively. In addition, the Company’s internet advertising and promotion service businesses remained steady during the quarter, which was in line with Kingsoft Office Group’s overall strategy.

Online Games and Others
Revenue from the online games and others for the first quarter of 2021 reached to RMB788.6 million. Revenue from flagship JX Online III PC game increased by 23% year-on-year in the first quarter of 2021. In April, a new expansion pack for the JX Online III PC game, Bai Di Feng Yun, was launched with enriched content and new gameplay resulting in a growth in daily active independent accounts after launch. Meanwhile, the performance of other JX series PC games has remained stable.

In addition, the Company has achieved breakthroughs in overseas mobile games. Upon its debut, the JX I Pocket mobile game was ranked the first in both the top free charts and grossing charts for iOS and Android apps in Vietnam. In May, first-person shooting (FPS) game Bullet Angel was released and gained popularity in Thailand and Malaysia, etc.

Looking ahead, multiple new games are scheduled for launch. For example, JX Online III: Yuan Qi, the retro version of JX Online III, and War of the Visions: Final Fantasy Brave Exvius are expected to be launched in the middle of this year.”

Mr. Jun LEI concluded, “We are pleased that all businesses performed well and started on a sound footing in the first quarter. We are full of confidence for our development going forward. We will continue to adhere to high-intensity investment in research and development with an emphasis in new technologies such as cloud and artificial intelligence to promote innovation and optimization, to prepare for breakthroughs, and to achieve sustainable growth and development as well as creating a better future with our customers and partners.”

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 two subsidiaries including Seasun 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 services and AI as the new directions. The Company has more than 5,000 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