Kingsoft Announces 2024 Annual and Fourth Quarter Results

– AI Technology Empowers Intelligence Office; Premium Game Strategy Continues
– Product Innovation Drives Strong Growth in Operating Profit

FINANCIAL HIGHLIGHTS

HONG KONG, Mar 19, 2025 – (ACN Newswire) – Kingsoft Corporation Limited (“Kingsoft” or the “Company”; HKEx stock code: 03888), a leading Chinese software and Internet service company, has announced its 2024 annual results and fourth quarter results for the period ended 31 December 2024.

For the year of 2024, the revenue of Kingsoft increased 21% year-on-year to RMB10,317.9 million. Revenue from the office software and services, and online games and others represented 50% and 50% of the Group’s total revenue for the year of 2024, respectively. Gross profit increased 22% year-on-year to RMB8,580.5 million. In 2024, the Group’s operating profit reached 3,646.6 million, a strong year-on-year increase of 64%.

For the fourth quarter of 2024, the Company’s revenue increased 21% year-on-year to RMB2,792.5 million. Revenue from the office software and services, and online games and others represented 54% and 46% of the Group’s total revenue for the fourth quarter of 2024, respectively. Gross profit for the fourth quarter of 2024 increased 24% year-on-year to RMB2,343.3 million. The Group’s gross profit margin increased by two percentage points year-on-year and kept flat quarter-on-quarter to 84%.

Mr. Jun LEI, Chairman of the Company, commented: “Throughout 2024, we remained dedicated to technology empowerment, focused on strengthening our core capabilities, and achieved the milestone of surpassing 10 billion in revenue for the first time. Kingsoft Office Group focuses on the core strategic directions of ‘multiscreen, cloud, content, collaboration, AI’ and continues to increase investment in R&D in the fields of collaboration and AI. This drives product iteration and upgrades through innovation, creating a product system that better meets user needs, effectively enhancing its market competitiveness and industry influence in the intelligent office business. For the online games business, we deeply engage in classic wuxia IP, actively exploring new genres to provide users with diverse gaming experience.”

Mr. Tao ZOU, Chief Executive Officer of the Company, added, “The Group’s overall performance in 2024 was strong, achieving record highs in revenue, profitability, and core operating metrics. In 2024, the total revenue reached RMB10,317.9 million, a year-on-year increase of 21%. Among them, revenue from office software and services business was RMB5,121.1 million, a year-on- year increase of 12%. Revenue from online games and others business was RMB5,196.8 million, a robust year-on-year increase of 31%. In 2024, the Group’s operating profit reached 3,646.6 million, a strong year-on-year increase of 64%, and the operating profit margin increased from 26% in 2023 to 35%.”

BUSINESS REVIEW 

Office Software and Services

In 2024, revenue from the office software and services business increased 12% year-on-year to RMB5,121.1 million. The increase was primarily due to increased revenue from WPS individual and WPS 365 businesses. The increase of WPS individual business was mainly attributed to improved conversion rates, driven by the synergistic development of traditional and AI-powered features. As for the WPS 365 business, the revenue grew notably, since we continuously consolidated customer advantages in central state-owned enterprises, and accelerated penetration into private and local state-owned enterprises. Revenue from the office software and services business for the fourth quarter of 2024 increased 17% year-on-year to RMB1,501.2 million. The year-on-year increase was mainly attributable to WPS 365 and WPS individual businesses of Kingsoft Office Group. The increase of WPS 365 business was primarily due to the increased number of paying enterprises, supported by the enhanced AI and collaboration capabilities as well as the replication of typical industry solutions. The increase of WPS individual business was primarily driven by enriched the membership benefits including wide adoption of AI-powered features, which enhanced user experience and improved conversion rates.

In 2024, Kingsoft Office Group remained committed to a user-centric approach, continuously enhancing product features and services driving dual growth in both user base and monetization capabilities. For WPS domestic individual business, we accelerated the iteration of WPS AI and launched the WPS AI Assistant, empowering users with intelligent office capabilities. AI-powered enhancements were also integrated into WPS Office major components, significantly lowering the barrier to AI adoption. By the end of 2024, the number of daily active devices of WPS PC in the domestic market exceeded 100 million.  In overseas market, we prioritized expansion in high-value regions, leveraged differentiated value-added features to attract users.

For institutional customers, WPS 365 underwent a brand-new upgrade. It includes WPS Office, WPS Teams, and WPS AI Enterprise Edition, successfully integrating document management, collaboration, and AI capabilities to enable a one-stop AI-powered office solution. Additionally, we launched Kingsoft Government Office Model, and released WPS AI Government Edition, offering intelligent solutions for government.

For WPS software business, we advanced software legalization and domestic adoption, empowering government and enterprises in digital transformation. In localization, we strengthened our presence in government and key industries like finance, energy, and telecommunications, assisting clients in building secure, self-sufficient digital offices.

Online Games and others

In 2024, revenue from the online games and others business for the year of 2024 increased 31% year-on-year to RMB5,196.8 million. The significant year-on-year increase was primarily attributed to the strong performance of JX3 Online and anime game Snowbreak: Containment Zone. Revenue from the online games and others business for the fourth quarter of 2024 increased 26% year-on-year to RMB1,291.3 million. The notable year-on-year increase was mainly attributable to the solid performance from JX3 Online, as the launch of JX3 Ultimate  in 2024 further boosted players’ engagement, and the revenue contribution from the anime game Snowbreak: Containment Zone, driven by the continuous content updates.

In 2024, the online games business has achieved outstanding growth, with a record number of new users. JX3 Online achieved integration across platforms, further boosting players’ enthusiasm. The vitality of the JX3 Online IP continued to flourish, with its cultural ecosystem recovered, and has attracted a number of young players. World of Sword Origin, as a classic wuxia inheritance work, continued to operate stably and was deeply loved by players. Meanwhile, progress was also made in anime shooter game, Snowbreak: Containment Zone initially broke into new game genre through product positioning, continuous iteration, and user interaction.

Moving into 2025, we are set to introduce several new titles while continuing to refine our flagship game, JX3 Online. The sci-fi mech game Mecha BREAK, targeting the global market, is set to launch in the first half of the year. This title aims to break into the sci-fi mech genre and establish a new original IP, further enriching our game portfolio. And the Fate of Sword: Zero, the new mobile game from the classic Sword series, will be also released. The in-house developed shooter game Wild Assault, built with Unreal Engine 5, is expected to launch on platforms, including Steam and Epic Games Store in April.

Mr. Jun LEI concluded, “Looking ahead to 2025, we will continue to iterate on our core products and technologies to meet user needs and promote high-quality business development. Kingsoft Office Group will deepen AI adoption in office productivity, strengthen WPS 365’s capabilities, and expand global market reach. Targeting the global market, online games business will continue focusing on prime games, expand into new genres, and strive to create high-quality games that are deeply loved by players. We will adhere to technology empowerment, focus on product and service innovation, and create long-term value for our shareholders.”

About Kingsoft Corporation Limited

Kingsoft (3888.HK) 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 over 8,000 employees worldwide and holds a significant market share domestically. For more details, please refer to http://www.kingsoft.com.