HONG KONG, Aug 23, 2022 – (ACN Newswire) – Kingsoft Corporation Limited (“Kingsoft” or the “Company”; HKEx stock code: 03888), a respected Chinese software and Online sites company, has announced its unaudited 2022 interim results and its own second-quarter results for the time ended 30 June 2022.
For the initial 1 / 2 of 2022, the revenue of Kingsoft increased 21% year-on-year to RMB3,687.2 million. Revenue from office software and services business increased 15% year-on-year to RMB1,795.7 million. Revenue from online flash games among others increased 28% year-on-year to RMB 1,891.5 million. Revenue from office software and services and online flash games among others represented 49% and 51%, respectively, of total revenue for the initial 1 / 2 of 2022. Gross profit for the initial 1 / 2 of 2022 increased 18% year-on-year to RMB2,970.0 million, while operating profit amounted to RMB918.2 million.
For the next quarter of 2022, the business’s revenue increased 24% year-on-year to RMB1,834.2 million. Revenue from office software and services business increased 18% year-on-year to RMB924.6 million. Revenue from online flash games along with other businesses increased 31% year-on-year to RMB909.6 million. Revenue from office software and services and online flash games among others represented 50% and 50%, respectively, of total revenue for the next quarter of 2022. Gross profit for the next quarter of 2022 increased 22% year-on-year to RMB1,467.7 million, while operating profit increased 82% year-on-year to RMB418.7 million.
Mr. Jun LEI, Chairman of the business, commented, “Regardless of the challenges posed by the recurrence of the pandemic, we remained centered on our strategy and achieved satisfactory results inside our core businesses. Kingsoft Office Group is focused on empowering the digital transformation of institutional users while enhancing the cloud office user experience for individual users. We concentrate on technological empowerment, product innovation, and service enhancement in addition to a marketing channel and eco-system expansion. Meanwhile, we continue steadily to pursue the merchandise strategy of ‘multi-screen, cloud, content, artificial intelligence (“AI”) and collaboration’ and also have achieved good operational performance. Regarding our online flash games business, we stick to a technique on premium games and concentrate on technology innovation, along with constant cultural facets enrichment, which promotes further game development.”
Mr. Tao ZOU, CEO of the business, added, “For the next quarter of 2022, the business’s revenue increased 24% year-on-year to RMB1,834.2 million. Driven by the growth of subscription revenue from individual and institutional subscription businesses, our office software and services business increased by 18% year-on-year through the second quarter of 2022. Our online flash games along with other business increased by 31% year-on-year through the second quarter of 2022, primarily driven by the contribution of mobile games launched in the fourth quarter of 2021 such as for example JX World III and JX I: Gui Lai.”
Office Software and Services
Through the quarter, the revenue of office software and services increased 18% year-on-year to RMB924.6
million. Individual subscription business sustained growth momentum. In line with the continuous enhancement of cloud office experience, Kingsoft Office Group developed and introduced various new functions focused on specific scenarios to operate a vehicle the active usage of cloud services and continuous upsurge in subscription payment. We remained centered on attracting more long-term paying users and the amount of premium subscribers continued increasing.
In reaction to the federal government departments demand for digital management, end-to-cloud integration and mobile office, our products are highly appropriate for government office systems, which assist the federal government in achieving informatization gradually and realizing centralized document management, effective and efficient file application, collaboration features, security control etc. In reaction to soaring demand for digital transformation among enterprises, our core products concentrate on solving pain points such as for example uploading documents to the cloud and ensuring file transfer security through continued optimization and the help of quality customer services.
Kingsoft Office Group has closely monitored the localization industry trend. Because the localization gradually penetrates into municipality, we take the initiative to tap those markets. Driven by favorable policies and industry demand, our penetration in industry localization continues to improve. Furthermore, demand for integrated end-to-cloud products from customers in the localization industry, such as for example finance, energy and telecommunications, also is growing. We’ve further optimized the re-flowable and fixed-layout document format standards of our localization products to supply a competent and integrated user experience, which may further fortify the competitiveness of our products.
Kingsoft Office Group continued to strategically play down its advertising business by reducing the amount of advertising spaces and the frequency of push notifications. Since we strived to boost the standard of clicks and reduce user interference, our advertising business was undergoing a reliable and gradual decline.
ONLINE FLASH GAMES among others
Through the quarter, the revenue of online flash games along with other businesses increased by 31% year-on-year to RMB909.6 million. Our flagship JX Online III PC game remained stable. Upon the launch of the non-deleting test in China by the end of this past year, JX World III maintained a superb reputation and high popularity among gamers. Furthermore, the overall game launched in Hong Kong, Macau and Taiwan through the quarter and achieved a fantastic performance.
Looking forward to the 3rd quarter, we launched the open beta across all platforms and a fresh section for JX World III and can celebrate the 13th anniversary of JX Online III PC game. Through continuous content upgrades and technology innovation, we make an effort to sustain the vitality of our core I P. Meanwhile, we also uphold our corporate responsibility and continue steadily to explore the social value of our games. Biphase, our initial self-developed charity game which targets bipolar disorder, has received multiple awards and acclamation from international gaming authorities upon its debut overseas this past year. In addition, the overall game also received license approval in July this season and is scheduled for launch in China.
Mr. Jun LEI concluded: “In the next quarter, we embraced the change of the complex environment and achieved further development by continuously enhancing our services and products. Looking ahead, the Group will abide by technological empowerment, maintain our investment in R&D and enhance operational efficiency. We shall keep concentrating on our core strategies, abide by integrity and innovation to empower our users and partners and create long-term returns for the shareholders.”
About Kingsoft Corporation Limited
Kingsoft is really a leading software and Internet services company located in China listed on the stock market of Hong Kong. It has three main subsidiaries including Kingsoft Office, Seasun and Kingsoft Shiyou. Following implementation of its “mobile internet transformation” strategy, Kingsoft has completed the comprehensive transformation of its overall business and management models and formed a strategic platform with office software and interactive entertainment because the pillars and cloud services and AI because the new directions. THE BUSINESS has a lot more than 7,000 staff all over the world and enjoys a big market share in China. To find out more, please visit http://www.kingsoft.com.
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