KINGSOFT (03888) announces third quarter earnings, with a net profit attributable to shareholders of approximately 2.13 billion yuan, a decrease of 48% year-on-year.

KINGSOFT (03888) released its third-quarter performance for 2025, with a group revenue of approximately 2.419 billion yuan, a year-on-year decrease of 17%, and a quarter-on-quarter growth of 5%. Operational profit was about 277 million yuan, a year-on-year decrease of 76% and a quarter-on-quarter decrease of 28%. The net profit attributable to the parent company was about 213 million yuan, a year-on-year decrease of 48% and a quarter-on-quarter decrease of 60%. Basic earnings per share were 0.15 yuan. Mr. Lei Jun, Chairman of KINGSOFT, said: "In the third quarter, the group focused on its core business, continuously consolidating its core competitiveness. Beijing Kingsoft Office Software, Inc focused on "AI, collaboration, internationalization" as its strategic focus, continuing to deepen the application of AI in various scenarios, and strengthening brand and ecosystem development. The online gaming business is advancing its diversification and globalization layout, with the global launch of the sci-fi mecha game "Breaking Limits." Mr. Zou Tao, CEO of KINGSOFT, said: "In the third quarter, the group's total revenue was 24.19 billion yuan, a year-on-year decrease of 17% and a quarter-on-quarter increase of 5%. The performance of office software and service business was robust, benefiting from significant growth in WPS software business, rapid growth in WPS 365 business, and steady growth in WPS personal business. The decline in online gaming and other businesses was mainly due to a decrease in revenue contribution from certain existing games. The newly launched games are still in the early stages of development, gradually establishing market influence. In the office software and service business, WPS personal business promoted the landing and promotion of new AI products and refined operations in domestic and overseas markets, driving steady increases in WPS AI monthly active users, paying users, and user value. For the WPS 365 business, we continue to improve collaboration and AI product lines, making effective progress in covering private enterprises and local state-owned enterprise customers, and continuously enhancing product strength and industry influence. For the WPS software business, the progress of Xin Innovation bidding is accelerating. Government AI products continue to iterate, and are currently being promoted in central and local party and government organs, escorting Xinchuang customers' digital transformation. In the online gaming business, the flagship game "JX3" celebrated its 16th anniversary in August and launched the annual expansion pack in October, introducing innovative gameplay. The anime game "Chen Bai Forbidden Zone" relies on long-term content updates and user operations to strengthen the core user base. The sci-fi mecha game "Breaking Limits" continued to optimize gameplay and operation modes after its launch, improving player experience. Two international IP games, "Goose Duck Murder" and "Angry Birds", are expected to be launched domestically in the coming quarters. Mr. Lei Jun concluded: "Looking ahead, Beijing Kingsoft Office Software, Inc will continue to focus on its core strategy of "AI, collaboration, internationalization", relying on its core product matrix to meet the full-scenario needs of individual users to large enterprises. The online gaming business will focus on developing high-quality content and global distribution, continuously strengthen the vitality of classic IP, and drive new product categories for sustainable development."