Beijing Kingsoft Office Software, Inc (688111.SH) achieved a revenue of 2.413 billion yuan in the first half of the year: Iterating WPS AI 2.0 to achieve landing in multiple scenarios.

On the evening of August 20th, Beijing Kingsoft Office Software, Inc (688111.SH) officially released its 2024 interim report data. In the first half of 2024, Beijing Kingsoft Office Software, Inc's revenue and net profit saw comprehensive growth, with operating income of 2.413 billion yuan, a year-on-year increase of 11.09%; net profit attributable to the parent company's owners was 721 million yuan, a year-on-year increase of 20.38%; net profit after deducting non-recurring gains and losses attributable to the parent company's owners was 688 million yuan, a year-on-year increase of 19.35%, showing continuous improvement in profitability. Subscription services, as the core growth engine of Beijing Kingsoft Office Software, Inc, generated 1.973 billion yuan in revenue in the first half of 2024, accounting for about 82% of total revenue, with an increase of nearly 5 percentage points year-on-year. Steady growth in subscription services, with WPS 365 serving over 18,000 top government and enterprise clients In the first half of 2024, Beijing Kingsoft Office Software, Inc's subscription services maintained steady growth: domestic individual subscription service revenue was 1.53 billion yuan, a year-on-year increase of 22.17%; domestic institutional subscription and service revenue was 443 million yuan, a year-on-year increase of 5.95%. In addition, Beijing Kingsoft Office Software, Inc's total contract liabilities reached 2.685 billion yuan, laying a foundation for long-term business development. In the first half of this year, with WPS AI entering the commercialization stage, Beijing Kingsoft Office Software, Inc's cumulative annual paid personal users reached 38.15 million, with a record high of 6.02 billion monthly active devices for its main products. On the institutional side, WPS 365 fully integrated AI capabilities, with corporate clients' penetration rate in the public cloud market continuously strengthening, showing initial effects in the transformation towards a SaaS model. By the end of the reporting period, WPS 365 had served over 18,000 top government and enterprise clients, including well-known organizations such as CITIC BANK, China United Property Insurance, China BEST, Guangzhou Metro, China National Gold Group Gold Jewellery, Shanghai Construction, Tongwei Co., Ltd, Haier Group, BOE Technology Group, New Oriental Education, covering industries such as finance, energy, communication, transportation, real estate, publishing, biopharmaceuticals, high-end manufacturing, and education. R&D investment accounting for over 30%, iterating WPS AI 2.0 In the first half of 2024, Beijing Kingsoft Office Software, Inc invested 808 million yuan in research and development, accounting for about 33% of revenue, with a year-on-year increase of 12.61% in R&D expenses, injecting stable power into the continuous development of its products. In recent years, Beijing Kingsoft Office Software, Inc has closely followed the trend of the AI industry, continuously iterating and upgrading AI and collaboration products. In July of this year, Beijing Kingsoft Office Software, Inc launched WPS AI 2.0, which, through innovative applications in the personal, enterprise, and government versions, helps users and customers enhance the productivity of their office work. For individual users, the upgraded WPS AI 2.0 achieved paradigm innovation in four dimensions: AI writing assistant, AI reading assistant, AI data assistant, and AI design assistant. For businesses, Beijing Kingsoft Office Software, Inc continues to explore feasible solutions for the application of WPS AI Enterprise Edition in office scenarios with top enterprise clients, promoting the digital transformation of enterprises. For government clients, the company has introduced the Golden Mountain government office model, and based on this, released WPS AI Government Edition, covering capabilities such as government AI writing, government AI Q&A, and government AI tools, adaptable to various environments, supporting private deployment, and providing intelligent support for government scenarios. During the reporting period, Beijing Kingsoft Office Software, Inc also closely collaborated with partners such as Huawei on a series of infrastructure construction and improvement projects. The newly introduced WPS HarmonyOS version runs smoothly on all platforms, achieving unified multi-platform accounts, cross-platform calls, and cross-screen collaboration. Dozens of AI features of WPS AI have also been simultaneously migrated to the HarmonyOS platform, providing users with a full-scene multi-terminal collaborative, more efficient and convenient office experience. As the official collaborative office software supplier for the Chinese sports delegation at the 2024 Olympic Games, WPS 365 fully leveraged its product service advantages during the 2024 Paris Olympic Games, ensuring the multiple location, cross-border, mobile, scenario-based, and collaborative office needs of the Chinese sports delegation, ensuring emergency response capabilities, and providing strong support for the athletes at the Olympics.