In the third quarter, Kingsoft (03888) achieved a record high total revenue and operating profit. The net profit attributable to the owners of the parent company was approximately 413 million yuan, an increase of 13.51 times year-on-year.

KINGSOFT (03888) announced its performance in the third quarter of 2024, with revenue of approximately RMB 2.915 billion, a year-on-year increase of 42% and a quarter-on-quarter increase of 18%. Operating profit was approximately RMB 1.144 billion, a year-on-year increase of 204% and a quarter-on-quarter increase of 44%. Net profit attributable to the owners of the parent company was approximately RMB 413 million, a year-on-year increase of 13.51 times, and a quarter-on-quarter increase of 5%. Basic earnings per share were RMB 0.31. Among them, revenue from office software and services was approximately RMB 1.207 billion, an increase of 10% compared to the same period last year and an increase of 2% compared to the previous quarter. The year-on-year increase was mainly due to the growth of domestic personal office subscription business of Beijing Kingsoft Office Software, Inc. and its subsidiaries, which was attributed to the introduction of four new assistants in WPS AI 2.0 in this quarter, providing users with a more convenient and efficient creative experience, effectively promoting user stickiness and increasing conversion to paid customers. Revenue from online games and other businesses was RMB 1.708 billion, an increase of 78% compared to the same period last year and an increase of 33% compared to the previous quarter. The significant year-on-year and quarter-on-quarter growth was mainly due to: i) the outstanding performance of "JX3" and the successful launch of "JX3 Unbound" boosting the popularity of the game; ii) active operation and experience optimization of other games. Mr. Lei Jun, Chairman of the company, said: "In the third quarter, our core business steadily progressed, continuously consolidating our market position. Beijing Kingsoft Office Software, Inc. Group focuses on research and development in the AI and collaboration fields, empowering individual and institutional customers with technological innovation, bringing users a one-stop AI office experience, promoting the landing of new quality productivity in the office field. The online gaming business continues to iterate the classic swordsmen series and actively expand into new categories." Mr. Zou Tao, CEO of the company, added: "In the third quarter, driven by the outstanding performance of our gaming products, the group's total revenue and operating profit both achieved significant growth and reached new historical highs. The total revenue of the group was RMB 2.9148 billion, a year-on-year increase of 42% and a quarter-on-quarter increase of 18%. Revenue from gaming and other businesses was RMB 1.708 billion, a significant year-on-year increase of 78% and a quarter-on-quarter increase of 33%. Revenue from office software and services was RMB 1.207 billion, a year-on-year increase of 10% and a quarter-on-quarter increase of 2%. The group's operating profit was RMB 1.144 billion, a year-on-year surge of 204% and a quarter-on-quarter increase of 44%. In the domestic personal office subscription business, we continue to optimize the product features of WPS AI, providing users with a more convenient and efficient creative experience, further enhancing personal user stickiness and conversion to paid customers. Leveraging the continuous improvement of WPS 365 product in domestic institutional subscription business, we steadily promote SaaS transformation and expand the scale of private and local SOEs customers. Our overseas business also maintained healthy growth. In terms of AI application innovation, we launched a series of core capabilities and solutions including text companions, AI Docs intelligent document library, Kingsoft government office model, AI intelligent assistant WPS Lingxi, and released WPS Hongmeng version, further driving the development of AI office ecosystem. In the online gaming business, "JX3" continues to show exceptional resilience. Since its launch, "JX3 Unbound" has performed well, exceeding expectations in user return rate. In October, "JX3" released its annual expansion, including new sects, new level caps, and innovative gameplay, further enhancing player emotional experience and activity. The sci-fi mecha game "Escape Limit" completed its first public test in August, with a higher-than-expected enthusiasm among participating players, attracting wide attention globally. The global pre-registration for the game reached nearly three million, ranking as high as 17th on the Steam wishlist. In addition, the mobile game "Swordsmen Love Zero" has obtained approval and is scheduled to be launched next year." Mr. Lei Jun concluded: "In the third quarter, we focused on polishing and optimizing our core products and services, laying a solid foundation for future development. Beijing Kingsoft Office Software, Inc. Group will continue to invest in AI and collaboration for the long term, meeting the office needs of users in different scenarios, and providing users with more intelligent and efficient office experience. The online gaming business will focus on continuous innovation and quality improvement, bringing outstanding gaming experience and rich gaming content to global players."