Yangtze River Business Daily News ● Yangtze River Business Daily reporter Yang Die

The operating performance of Kingsoft Office (688111.SH), which is committed to AI, continues to grow steadily.

On the evening of February 27, Kingsoft Office disclosed a performance express report that in 2024, the company will achieve operating income of 5.121 billion yuan, an increase of 12.4% over the same period of the previous year; net profit attributable to owners of the parent company (hereinafter referred to as "net profit") was 1.645 billion yuan, a year-on-year increase of 24.84%.

The Yangtze River Business Daily reporter noted that in recent years, Kingsoft Office has continued to promote the optimization of business structure, and since 2019, the company's operating income and net profit have continued to grow, and by 2024, it has been growing for six consecutive years.

Building WPS AI fist products is the key direction of Kingsoft Office. In 2024, Kingsoft Office will officially start the commercialization process of WPS AI, and in the first half of the year alone, the cumulative number of annual paying users of the company's AI members and large members has exceeded one million.

Kingsoft Office maintains a high investment in R&D, and from 2021 to the first three quarters of 2024, Kingsoft Office has accumulated R&D expenses of 5.147 billion yuan.

Revenue and net profit increased for six consecutive years

According to the data, Kingsoft Office is a leading office software and service provider in China, mainly engaged in the design, development, sales and promotion of WPS Office office software products and services. WPS Office series products began in 1988 and are one of the earliest office software products in the world. In recent years, Kingsoft's office performance has continued to rise.

According to the latest performance report, in 2024, Kingsoft Office will achieve operating income of 5.121 billion yuan, an increase of 12.4% over the same period of the previous year; net profit was 1.645 billion yuan, a year-on-year increase of 24.84%; Net profit after deducting non-recurring gains and losses (hereinafter referred to as "non-net profit") was 1.556 billion yuan, a year-on-year increase of 23.3%.

For the performance growth in 2024, Kingsoft Office said that the company's operation is stable and progressive, focusing on the core strategic direction of "multi-screen, cloud, content, collaboration, and AI", continuing to increase R&D investment in the field of collaboration and AI, driving product iteration and upgrading with innovation, and creating a product system that is more suitable for user needs, effectively enhancing the company's market competitiveness and industry influence in the field of smart office.

The Yangtze River Business Daily reporter found that since 2019, the operating income and net profit of Kingsoft Office have continued to grow, and by 2024, there has been six consecutive years of growth.

In the past four years, the R&D rate has exceeded 32%.

The steady growth of Kingsoft office performance is related to its continuous promotion of business structure optimization.

The Yangtze River Business Daily reporter found that in recent years, Kingsoft Office has continued to shrink its Internet advertising business in order to optimize the user experience.

In 2016, the revenue of Jinshan Office's Internet advertising and promotion services was 243 million yuan, accounting for 44.8% of the company's main business income in the same period. By 2023, its Internet advertising promotion services and other business revenue will be 288 million yuan, a decrease of 6.05% from the same period in 2022, and the proportion of revenue will decrease to 6.32%.

In the 2024 semi-annual report, Kingsoft Office introduced that the company has shut down the domestic third-party commercial advertising business in December 2023, and currently only provides Internet advertising promotion services for overseas markets. Therefore, at present, the company's revenue sources mainly include personal office service subscription business, domestic agency subscription and service business, domestic agency licensing business, international and other businesses.

In 2024, Kingsoft Office seized the opportunity of the AI industry trend, and officially started the commercialization process of WPS AI while continuously iteratively upgrading the functions of AI and collaboration products, and the cumulative annual paid users of its AI members and large members exceeded one million in the first half of the year alone, injecting strong impetus into the development of domestic individual subscription business. Since then, Kingsoft Office has been committed to the continuous upgrade of WPS AI and the acceleration of the commercialization of WPS AI.

In terms of R&D, Kingsoft Office has maintained a high amount of investment. Starting from 2021, the company's annual R&D expenses exceeded 1 billion yuan, and from 2021 to the first three quarters of 2024, they were 1.082 billion yuan, 1.331 billion yuan, 1.472 billion yuan and 1.262 billion yuan, respectively, an increase of 52.15%, 23.08%, 10.6% and 17.26% year-on-year, and the R&D rates were 32.98%, 34.27%, 32.32% and 34.79% respectively. Based on this calculation, in the past four years, the research and development expenses of Kingsoft office have accumulated 5.147 billion yuan.

Editor-in-charge: ZB