Kingsoft's Q1 2021: Net Profit Surges 1,763%

Technology Author: 马渭淞 Editor: 张宇喆 May 26, 2021 09:28 AM (GMT+8)

On May 25, Kingsoft released its financial report for the first quarter of 2021, along with solid revenue growth, surging net income and rising R&D costs.

to work in an office

According to its latest financials:

  • The total revenue in Q1 2021 was CNY 1.56 billion, a year-on-year increase of 33%, as well as a month-on-month decrease of 3%. 

  • The net profit was CNY 117 million, representing a year-on-year increase of 1763% and a month-on-month decrease of 47%.

  • Online games and other services reached CNY 789 million, down 1% from Q1 2020 and 7% from Q4 2020, accounting for 51% of the total revenue. The slight decrease was mainly attributed to the decline in the income of mobile games. 

  • The office software and services business was CNY 771 million, increasing 104% over Q1 2020, accounting for 49% of the total revenue. The staggering growth was mainly due to the rising demand for cloud and collaboration, the rapid growth of business and increasingly popular subscription services. 

  • The R&D cost was CNY 491 million, an increase of 38% over the same period of last year and 15% over the previous quarter. 

  • Monthly active users improved by 11% to 494 million and the number of monthly active users of the WPS Office PC version reached 194 million, denoting an increase of 15% over the same period of last year, while the number of monthly active users of WPS office mobile version slightly climbed 8% to 294 million.

Established in 1988, Kingsoft is a leading application software product and service provider in China. Its product line covers a variety of fields such as desktop office, information security, utility tools, game entertainment and industrial applications. Meanwhile, the company independently develops a suite of products such as WPS Office and Kingsoft PowerWord for individual users and enterprise users. On November 18, 2019, Kingsoft was officially listed on the STAR Board of Shanghai Stock Exchange.