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Briefing
Jun 30, 2020 · The Chinese Olympic Committee
Briefing
Jun 30, 2020 · The Chinese Olympic Committee

Kingsoft Office Becomes Official Supplier of Beijing 2022 Winter Olympics

News
Jun 10, 2020 · gelonghui
News
Jun 10, 2020 · tech.163
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Jun 8, 2020 · 10JQKA
News EO
Mar 24, 2020
report
News EO
Mar 24, 2020

Kingsoft Office’s Net Profit Up by Nearly 30% in 2019

On March 24, Beijing-based software provider Kingsoft Office (688111:SH), a subsidiary of the Hong Kong bourse-listed Kingsoft Corporation (3888:HK), released its financial report (in Chinese) for 2019. The annual operating income reached CNY 1.58 billion (USD 220 million), up by 39.82% from 2018. Meanwhile, the firm's net profit attributable to shareholders hit CNY 400 million (USD 56.67 million), a year-on-year increase of 28.94%. Kingsoft Office went public in November in 2019 and the closing stock price as of March 24 is CNY 218 with a 1.87% increase. The company's products are mainly WPS Office software, which can be applied on many mainstream operating platforms such as Windows, Linux, MacOS, Android, IOS; the company's services mainly include office value-added services based on company products and related documents and Internet advertising promotion services. During the reporting period, the company reached the business revenue of CNY 1.58 billion (USD 220 million), an increase of 39.82% over the previous year. The subscription of the office service business was CNY 680 million (USD 95.78 million), an increase of 73.06% and contributes to 43% of total income. The office software licensing business earned CNY 496 million (USD 69.87 million), an increase of 39.41%, and occupies 31.4%. The Internet advertising promotion business was CNY 404 million (USD 56.91 million), an increase of 5.99% over the past year. As for the user base, as of December 2019, the company's main products had more than 411 million monthly active users (MAU), of which the WPS Office desktop version has more than 154 million monthly active users. WPS Office Mobile has more than 248 million monthly active users; the company's other products (such as Kingsoft PowerWord, etc.) have close to 10 million monthly active users. During the Coronavirus, office products were hit by this 'black swan' event and the Kingsoft sharing document product, which is similar to Google docs, became the main driver in the first quarter of 2020. It seems like their story in 2020 after their achievements in 2019 is still one of profit. According to the official statistics of Kingsoft Office, on February 4th the number of Kingsoft users exceeded 100 million. As of March 2 this year, Kingsoft's monthly active users exceeded 239 million. Not only did the online documentation products attract online users, but all products related to remote work or online sharing are also gaining traction. Other strong players similar to Kingsoft docs include Shimo Document, with monthly PV (Pageview) exceeding 360 million, and Tencent docs with monthly active users exceeded 160 million. Meanwhile, online sharing is sweeping more widely from short videos and education to healthcare and food delivery. On the same day of publishing the financial report, Kingsoft Office hired the founder of Xiaomi, Lei Jun, as the company's honorary chairman, indirectly holding 11.99% of Kingsoft Office's equity. In his "Open Letter to Investors," he said (in Chinese), "This is the first annual performance answer sheet after Kingsoft Office is listed, and it is a performance answer sheet that gives us full confidence."

News EO
Sep 28, 2019
report
News EO
Sep 28, 2019

Kingsoft Office, WPS Office Software Developer, Goes Public on Star Market

Kingsoft Office (金山办公, 688111:SH), a subsidiary of the Hong Kong bourse-listed Kingsoft Corporation (金山软件, 3888:HK), has passed the final review and is now preparing to start trading its stock on the Shanghai Stock Exchange Sci-Tech Innovation Board, known as the Star Market. While giving the firm’s IPO application the green light, the Listing Committee has also emphasized a few pain points, including investment information disclosure: the watchdog is seemingly concerned about how Kingsoft allocates money, as the private capital received in the recent years can affect the company’s financial records. According to publicly accessible sources, Kingsoft Office carried out a USD 50 million Series A round of financing in November 2013. Morningside Venture Capital, GGV Capital and Shunwei Capital made up a trio of investors that took part in the event. Meanwhile, billionaire entrepreneur Lei Jun (雷军), founder and CEO of Xiaomi (1810:HK), is going to have the third listed company under his reign. Indirectly holding 11.99% of Kingsoft Office’s equity, he is, de facto, the main decision-maker in the firm. Founded in 1988, Kingsoft Office has grown into one of the world’s most prominent office software enterprises. With over 1,900 employees, six R&D centers and offices in the United States and China, the company holds 42.75% of the domestic market and is actively expanding abroad. As mentioned in the Star Market prospectus (in Chinese), it recorded 328 million monthly active users of its primary product – universal office suite WPS Office – in March 2019. Having relatively high compatibility with Microsoft Office, Google Docs, Adobe PDF and other global leading office software packages, WPS Office has a set of competitive advantages over the rest. Besides quite attractive pricing options and localization, the company provides a free version that supports an extensive arsenal of functions. Software business is a priori something that depends entirely on research and development. The company spent a total of CNY 907.48 million (USD 127.41 million) on R&D over the last three years. Holding 179 patents, nearly 20 of which are international, the firm is among the most knowledge-intensive applicants to the Star board. Kingsoft Office is one of the biggest enterprises to have applied for an IPO in the sci-tech venue. According to the recent EqualOcean report (download), it is the most significant contributor to the ‘industry profit pool’. The company’s net profit grew at a CAGR of 54.66% from CNY 129.93 million (USD 18.33 million) in 2016 to CNY 310.67 million (USD 43.81 million) in 2018.