Tencent, one of Kingsoft's shareholders, dropped its stake from 20.745 million shares to 10.372 million shares, cutting its stake in half.
Chinese Office Software Provider Beijing Kingsoft Office Software, Inc. (Chinese: 金山办公) released its third quarter financial report on October 26, 2022, showing that its revenue in the third quarter was USD 1 billion, a year-on-year increase of 24.35%, while its profit attributable to shareholders company was USD 290 million , down 1.91% year-on-year.
In the third quarter of 2022, the Company's total subscription revenue reached USD 699 million, up 44.17% from the same period last year, accounting for 70% of the overall revenue. Among them, revenue from domestic personal office service subscription business rose 43% year-on-year to CNY517 million, while revenue from domestic institutional subscription and service business increased 47% year-on-year to CNY182 million.
In addition, revenue from Internet advertising business was further reduced in the context of its strategic contraction. In the third quarter of 2022, the company's Internet advertising promotion services and other businesses achieved revenue of 79.21 million CNY, down 4% from a year earlier.
While contracting its advertising business, Kingsoft Office continued to increase its R&D investment. In the first nine months of this year, its R&D investment has reached 972 million CNY, up 37.04% year-on-year, with an R&D expense ratio of 34.78%.
According to the financial report, as of September 30, the number of monthly active devices of the company's main products reached 578 million, an increase of 10.94% year-on-year. Among them, the number of monthly active devices of WPS Office PC version was 238 million, an increase of 15.53% year-on-year; the number of monthly active devices of mobile version was 336 million, an increase of 8.04% over the same period last year.
The financial report also disclosed the shareholdings of the top ten shareholders of Kingsoft Office, in which Tencent reduced its shareholding from 20.745 million shares in the middle of this year to 10.372 million shares, reducing its holding by half; 5Y Capital(Chinese:五源资本) reduced its holding by about 4.27 million shares.
As of press time, Kingsoft Office shares closed at CNY 270.30 apiece, down 2.31%, with a market cap of CNY124.67 billion.