[Financial Data](index=2&type=section&id=Financial%20Data) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) For the six months ended June 30, 2023, the Group's total revenue grew 13% to **RMB 4.16 billion**, operating profit increased 24% to **RMB 1.14 billion**, and profit attributable to owners of the parent turned profitable at **RMB 250 million**, with operating cash flow significantly up to **RMB 2.31 billion** Key Financial Data for the Six Months Ended June 30, 2023 | Metric | H1 2023 (RMB thousands) | H1 2022 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue** | 4,163,797 | 3,687,167 | +12.9% | | **Gross Profit** | 3,457,239 | 2,969,986 | +16.4% | | **Operating Profit** | 1,136,015 | 918,179 | +23.7% | | **Profit for the Period** | 605,725 | 335,935 | +80.3% | | **Profit/(Loss) Attributable to Owners of the Parent** | 249,530 | (42,064) | Turned Profitable | | **Basic EPS (RMB)** | 0.18 | (0.03) | Turned Profitable | Summary of Balance Sheet as of June 30, 2023 | Metric | June 30, 2023 (RMB thousands) | Dec 31, 2022 (RMB thousands) | | :--- | :--- | :--- | | **Total Assets** | 34,890,675 | 31,887,955 | | **Total Liabilities** | 8,978,605 | 7,731,488 | | **Total Equity** | 25,912,070 | 24,156,467 | | **Cash and Bank Balances** | 21,684,511 | 18,201,410 | Summary of Cash Flows for the Six Months Ended June 30, 2023 | Metric | H1 2023 (RMB thousands) | H1 2022 (RMB thousands) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 2,307,572 | 1,053,441 | | **Net Cash Flow Used in Investing Activities** | (1,482,629) | (456,902) | | **Net Cash Flow from/(Used in) Financing Activities** | 989,023 | (499,495) | [Summary of Notes to Financial Statements](index=9&type=section&id=Summary%20of%20Notes%20to%20Financial%20Statements) The Group primarily operates in office software and services and entertainment software and others, with the former generating **RMB 2.17 billion** revenue and **RMB 500 million** segment profit, and the latter **RMB 1.99 billion** revenue and **RMB 630 million** segment profit; no interim dividend was declared - The Group primarily engages in two main businesses: (a) designing, researching, developing, and marketing WPS Office software products and services; and (b) researching and developing games, as well as providing PC and mobile game services[9](index=9&type=chunk)[13](index=13&type=chunk) Segment Results for H1 2023 | Operating Segment | Revenue (RMB thousands) | Segment Profit (RMB thousands) | | :--- | :--- | :--- | | **Office Software and Services** | 2,172,497 | 502,912 | | **Entertainment Software and Others** | 1,991,300 | 630,418 | | **Total** | 4,163,797 | 1,133,330 | - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2023[20](index=20&type=chunk) - The five-year convertible bonds with a principal amount of **HKD 3.1 billion** and an annual interest rate of 0.625%, issued in April 2020, had no conversions or redemptions during the reporting period[28](index=28&type=chunk) [Operations Summary](index=17&type=section&id=Operations%20Summary) As of June 2023, monthly active devices for office software main products reached **584 million**, a 2% year-on-year increase, with cumulative paying users growing 16% to **33.24 million** Key Operating Data for Office Software | Metric | June 2023 | June 2022 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Monthly Active Devices for Main Products (millions)** | 584 | 570 | +2% | | **Cumulative Paying Users (millions)** | 33.24 | 28.56 | +16% | [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) [Q2 2023 Performance Analysis](index=20&type=section&id=Q2%202023%20Performance%20Analysis) In Q2 2023, the Group's total revenue grew 20% to **RMB 2.19 billion**, with office software and services revenue up 21% and online game revenue up 18% due to strong 'Jian Wang 3' performance; gross profit margin improved to 84%, and operating profit significantly increased by 61% Q2 2023 Revenue Performance | Business Segment | Revenue (RMB millions) | Y-o-Y Change | Q-o-Q Change | | :--- | :--- | :--- | :--- | | **Office Software and Services** | 1,120.8 | +21% | +7% | | **Online Games and Others** | 1,072.6 | +18% | +17% | | **Total** | 2,193.5 | +20% | +11% | - The year-on-year growth in office software business was primarily driven by the sustainable growth of domestic personal and institutional office subscription businesses[32](index=32&type=chunk) - The growth in online game business was mainly due to significant revenue increase from 'Jian Wang 3' through continuous updates and user experience optimization[32](index=32&type=chunk) - The gross profit margin for Q2 was **84%**, an increase of four percentage points from the same period last year, primarily due to changes in revenue mix[33](index=33&type=chunk) - Operating profit before share-based compensation costs was **RMB 767 million**, a 59% year-on-year increase[35](index=35&type=chunk) [H1 2023 Performance Analysis](index=23&type=section&id=H1%202023%20Performance%20Analysis) In H1 2023, the Group's total revenue grew 13% to **RMB 4.16 billion**, with office software and services revenue up 21% and online games and others revenue up 5%; gross profit margin improved to 83%, and profit attributable to owners of the parent turned profitable at **RMB 250 million** H1 2023 Revenue Performance | Business Segment | Revenue (RMB millions) | Y-o-Y Change | | :--- | :--- | :--- | | **Office Software and Services** | 2,172.5 | +21% | | **Online Games and Others** | 1,991.3 | +5% | | **Total** | 4,163.8 | +13% | - The gross profit margin for H1 was **83%**, an increase of two percentage points from the same period last year[41](index=41&type=chunk) - Research and development costs increased by 6% year-on-year to **RMB 1.33 billion**, primarily due to increased employee-related expenses at Kingsoft Office Group[42](index=42&type=chunk) - Profit attributable to owners of the parent for H1 was **RMB 249.5 million**, compared to a loss of **RMB 42.1 million** in the same period last year[44](index=44&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2023, the Group maintained a strong cash position with **RMB 21.68 billion** in cash and bank balances and a healthy gearing ratio of **26%**, while net cash from operating activities in H1 significantly increased to **RMB 2.31 billion** Financial Position Summary | Metric | June 30, 2023 | | :--- | :--- | | **Cash and Bank Balances** | RMB 21,684.5 millions | | **Gearing Ratio** | 26% | - Net cash generated from operating activities in H1 2023 was **RMB 2.308 billion**, a significant increase from **RMB 1.053 billion** in the same period last year[47](index=47&type=chunk) [Business Review and Outlook](index=26&type=section&id=Business%20Review%20and%20Outlook) The Group's core businesses developed steadily, with Kingsoft Office launching WPS AI and deepening digital transformation services, while flagship game 'Jian Wang 3' achieved record-high revenue and 'Snowbreak: Containment Zone' expanded globally; the Group plans to continue driving innovation - Kingsoft Office Group seized the opportunity of large language models, actively investing in R&D to launch **WPS AI**, an intelligent office assistant based on large language models, and commenced public beta testing overseas[49](index=49&type=chunk) - The office software business continues to advance government and enterprise cloud-integrated and collaborative office solutions, and incubate industry-agnostic solutions, centered on a 'multi-screen, cloud, content, AI, collaboration' strategy[49](index=49&type=chunk) - The flagship game 'Jian Wang 3' achieved record-high quarterly revenue, with both daily active users and revenue maintaining year-on-year growth[49](index=49&type=chunk)[50](index=50&type=chunk) - The self-developed anime-style shooter 'Snowbreak: Containment Zone' was simultaneously released globally on PC and mobile platforms, expanding its user base and entering overseas markets[49](index=49&type=chunk)[50](index=50&type=chunk) - Future plans include launching an upgraded performance version of 'Jian Wang 3' PC game in Q4, and the self-developed mobile game 'Jian Xia World: Origin', which has obtained a license, will also be launched in mainland China[50](index=50&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Corporate Governance and Personnel](index=28&type=section&id=Corporate%20Governance%20and%20Personnel) As of June 30, 2023, the Group had **7,086** full-time employees with **RMB 1.865 billion** in H1 staff costs; the Audit Committee reviewed interim financial data, and the company complied with corporate governance codes, except for quarterly management reporting to the Board - As of June 30, 2023, the Group had **7,086** full-time employees, with total staff costs of **RMB 1.865 billion** for H1[51](index=51&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2023[53](index=53&type=chunk) - The company has complied with all applicable provisions of the Corporate Governance Code, except that management provides business updates to the Board quarterly instead of monthly as recommended by the code[55](index=55&type=chunk)

[2 -> 29] Good day and thank you for standing by. Welcome to the Q1 2023 Kingsoft Cooperation Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. [30 -> 57] To withdraw your question, please press star one and one again. Please be advised ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任 何責任。 Kingsoft Corporation Limited 金 山 軟 件 有 限 公 司 （於開曼群島持續經營的有限公司） （股份代號：03888） （可換股債券代號：40210） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 三 個 月 業 績 公 告 金山軟件有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司及其附屬公司（「本 集團」或「金山」）截至二零二三年三月三十一日止三個月未經審計的業績。 財務資料摘要 截至下列日期止三個月 二零二三年 二零二二年 二零二二年 三月 三月 十二月 三十一日 三十一日 三十一日 同比變動 環比變動 人民幣千元 人民幣千元 人民幣千元 % % （未經審計）（未經審計）（未經審計） （經重述） （經重述） ...

Financial Performance - Total revenue for Kingsoft in 2022 reached RMB 7,636.7 million, a year-on-year increase of 20%[12]. - Revenue from office software and services was RMB 3,890.6 million, up 19% year-on-year, driven by strong growth in personal and institutional subscription services[12]. - Revenue from online games and other businesses reached a record high of RMB 3,746.2 million, reflecting a 21% year-on-year increase, primarily due to the strong performance of the mobile game "Swordman World 3"[12]. - Operating profit for the group was RMB 1,868.7 million, representing a significant year-on-year growth of 37%[12]. - The gross profit for 2022 was RMB 6,177.00 million, up from RMB 5,214.29 million in 2021, showing an increase of about 18.5%[25]. - The operating profit for the year was RMB 1,868.68 million, compared to RMB 1,360.58 million in 2021, indicating a growth of approximately 37.3%[25]. - The revenue for 2022 was RMB 7,636.7 million, representing a 20% increase year-on-year, with office software and services accounting for 51% and online games and others for 49% of total revenue[26]. - The total revenue for the company in 2022 was RMB 7,636.74 million, compared to RMB 6,371.41 million in 2021, marking a growth of approximately 19.8%[25]. User Engagement and Growth - In 2022, the number of monthly active devices for major products reached 573 million, a 5% increase year-over-year[20]. - The total number of paid users increased to 29.97 million, representing an 18% year-over-year growth[20][21]. - The management team highlighted a 15% increase in user engagement year-over-year, indicating strong customer retention and satisfaction[68]. - Future outlook includes a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[69]. Strategic Focus and Innovation - The company continues to focus on digital transformation needs for enterprise-level users and enhancing cloud office experiences for individual users[12]. - The company plans to focus on AI technology and digital transformation services to drive future growth[15][19]. - The company aims to enhance user experience and service quality through continuous innovation and optimization of its membership system[15][19]. - The company emphasizes a strategic focus on "multi-screen, cloud, content, AI, and collaboration" to strengthen its core competitiveness[12]. - The company aims to improve operational efficiency by 10% through strategic cost management initiatives[74]. Research and Development - Research and development costs rose to RMB 2,552.8 million, a 10% increase year-on-year, due to increased investment in cloud and collaboration services[28]. - The company is investing heavily in R&D, with a budget allocation of 10% of revenue aimed at developing innovative technologies and products[70]. Corporate Governance - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[78]. - The board has reviewed and confirmed compliance with the corporate governance code, except for specific provisions regarding attendance and reporting frequency[78]. - The board consists of seven members, including one executive director, three non-executive directors, and three independent non-executive directors, ensuring a third of the board is independent[89]. - The company has established a new compliance framework to enhance corporate governance and risk management practices[76]. - The board is responsible for overseeing the company's operations and ensuring compliance with legal and regulatory requirements[85]. Environmental, Social, and Governance (ESG) - The board of directors emphasizes the importance of ESG (Environmental, Social, and Governance) strategies, aiming for a 30% reduction in carbon footprint by 2025[75]. - The company aims to identify and assess significant ESG-related risks and opportunities, ensuring compliance with relevant policies and regulations[115]. - The Environmental, Social, and Governance Committee currently consists of four directors, including three independent non-executive directors[113]. Shareholder Engagement - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure timely disclosure of information[132]. - The company has established a policy in place for shareholders to propose matters for discussion at general meetings, promoting shareholder engagement[138]. - The company actively engages with investors through various channels, including online and offline meetings, to address their concerns and provide necessary information[134]. Stock Incentive Plans - The company has adopted stock option plans to incentivize and reward eligible participants, with details available in the financial statements[167]. - The maximum number of shares that may be issued under the 2021 share option plan is capped at 10% of the total shares issued as of December 9, 2021, which amounts to 137,020,371 shares[174]. - The total fair value of the awarded shares under the share incentive plan for the year 2022 was RMB 67,303,000[185]. - The share incentive plan allows for the issuance of up to 50,832,211 shares, with specific limits on special incentive plans[188]. Financial Position - As of December 31, 2022, the group's cash and bank deposits totaled RMB 18,201.4 million, representing 57% of total assets[41]. - The net loss attributable to equity holders of the parent company for 2022 was RMB 6,048.2 million, compared to a profit of RMB 395.3 million in the previous year[38]. - Total assets as of December 31, 2022, were RMB 31,888.0 million, while total liabilities were RMB 7,733.1 million[159]. - Employee costs, including directors and senior management remuneration, were approximately RMB 3,486.7 million for 2022, compared to RMB 3,003.7 million in 2021[154].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任 何責任。 Kingsoft Corporation Limited 金 山 軟 件 有 限 公 司 （於開曼群島持續經營的有限公司） （股份代號：03888） （可換股債券代號：40210） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 業 績 公 告 金山軟件有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其附屬公 司（「本集團」）截至二零二二年十二月三十一日止年度之經審核業績。該等業績已由本 公司核數師安永會計師事務所根據《香港審計準則》審核。此外，該等業績亦已由本公司 的審核委員會（「審核委員會」）審閱。 財務資料概要 截至十二月三十一日止年度 二零二二年 二零二一年 同比變動 人民幣千元 人民幣千元 % 收益 7,636,743 6,371,406 20 營運溢利 1,868,682 1,360,583 37 扣除股份酬金成本前的營運溢利 2,129,476 1 ...

Financial Performance - For the three months ended September 30, 2022, the revenue was RMB 1,837,127 thousand, representing a 22% increase year-over-year from RMB 1,510,163 thousand[2]. - The operating profit for the same period was RMB 331,770 thousand, up 15% from RMB 287,299 thousand in the previous year[2]. - The net loss attributable to shareholders was RMB (6,054,900) thousand, compared to a profit of RMB 565,198 thousand in the same period last year[2]. - The company reported a total comprehensive loss of RMB (5,917,573) thousand for the period, compared to a profit of RMB 703,952 thousand in the previous year[5]. - The basic and diluted earnings per share for the period were both RMB (4.44), compared to RMB 0.41 in the same period last year[4]. - The net loss attributable to equity holders of the parent for Q3 2022 was RMB 6,054.9 million, compared to a profit of RMB 565.2 million in Q3 2021[24]. - The net loss for the three months ended September 30, 2022, was RMB 5,917,573 thousand, compared to a profit of RMB 703,952 thousand in the same period of 2021, indicating a significant decline in profitability[36]. Revenue Breakdown - Revenue from office software and services accounted for 55% of total revenue, while online games and other services contributed 45%[16]. - Revenue from office software and services reached RMB 1,004.7 million, a 25% increase year-over-year and a 9% increase quarter-over-quarter, driven by growth in personal and institutional subscription services[16]. - Revenue from online games and other services was RMB 832.4 million, an 18% increase year-over-year but an 8% decrease quarter-over-quarter, primarily due to the contribution from mobile games launched in Q4 2021[16]. - Total revenue for the third quarter reached RMB 1,837.1 million, representing a year-on-year growth of 22%[29]. - Revenue from office software and services was RMB 1,004.7 million, with a year-on-year increase of 25%[29]. User Metrics - The monthly active devices for the main office software product reached 578 million, an 11% increase year-over-year from 521 million[3]. - The cumulative number of paying users increased to 28.56 million, a 31% rise compared to the previous year[3]. - The number of paid users and the proportion of long-term paid users increased, contributing to the robust growth in personal subscription services[16]. - Cumulative paying users increased to 28.56 million, reflecting a year-on-year growth of 21.88%[34]. Costs and Expenses - The cost of revenue for Q3 2022 was RMB 371.0 million, a 38% increase year-over-year and a 1% increase quarter-over-quarter[48]. - Gross profit for Q3 2022 was RMB 1,466.2 million, an 18% increase year-over-year, with a gross margin of 80%, down 2 percentage points from the previous year[48]. - R&D expenses in Q3 2022 amounted to RMB 641.7 million, a 3% increase year-over-year, reflecting investments in product improvement and cloud services[49]. - Sales and distribution expenses rose to RMB 355.6 million in Q3 2022, a 47% increase year-over-year, driven by the promotional efforts for the mobile game "Swordman World 3" during its public testing[19]. - Administrative expenses were RMB 156.1 million in Q3 2022, up 17% year-over-year, primarily due to increased employee-related costs[20]. Cash Flow and Assets - The company reported a net cash flow from operating activities of RMB 288.1 million for the three months ended September 30, 2022[11]. - The operating cash flow for the three months ended September 30, 2022, was RMB 288,104 thousand, a decrease from RMB 489,877 thousand in the same period of 2021[42]. - The company had cash and cash equivalents of RMB 12,251.4 million as of September 30, 2022, down from RMB 16,190.1 million at the end of 2021[11]. - Total non-current assets decreased from RMB 14,883.6 million as of December 31, 2021, to RMB 8,340.5 million as of September 30, 2022[10]. - Total equity decreased from RMB 28,792.2 million as of December 31, 2021, to RMB 23,790.6 million as of September 30, 2022[9]. Future Plans and Investments - The company plans to continue expanding its market presence and investing in new product development to drive future growth[2]. - The company plans to continue expanding its digital office platform penetration among government and enterprise clients[16]. - The company aims to strengthen core competitiveness and improve operational efficiency for long-term sustainable development[30]. - The company plans to maintain R&D investment to enhance cloud and collaborative office service experiences and expand into new game categories[30].

Financial Performance - Total revenue for the first half of 2022 was RMB 3,687.2 million, representing a year-on-year growth of 21%[13]. - The net profit for the first half of 2022 was RMB 338,239 thousand, down from RMB 452,554 thousand in the same period last year[12]. - Operating profit for the first half of 2022 was RMB 918,179 thousand, an increase from RMB 741,885 thousand in the first half of 2021[12]. - Gross profit for the first half of 2022 was RMB 2,969,986 thousand, compared to RMB 2,523,732 thousand in the previous year[12]. - The company reported a basic loss per share of RMB (0.03) for the six months ended June 30, 2022, compared to earnings of RMB 0.12 per share in the same period of 2021[72]. - The total comprehensive income for the six months ended June 30, 2022, was RMB 634,178 thousand, compared to RMB 405,344 thousand in the same period of 2021, representing an increase of approximately 56.5%[73]. Revenue Breakdown - Revenue from office software and services for the six months ended June 30, 2022, was RMB 1,795,694 thousand, up from RMB 1,557,210 thousand in the same period last year[12]. - Revenue from online games and others for the same period was RMB 1,891,473 thousand, compared to RMB 1,481,923 thousand in the previous year[12]. - Revenue from office software and services in Q2 2022 was RMB 924.6 million, an 18% increase year-on-year, driven by growth in personal and institutional subscription services[15]. - Revenue from online games and other businesses in Q2 2022 was RMB 909.6 million, a 31% increase year-on-year, primarily due to contributions from mobile games launched in Q4 2021[15]. - For the six months ended June 30, 2022, revenue was RMB 3,687.2 million, an increase of 21% year-on-year, with office software and services and online games contributing 49% and 51% to total revenue, respectively[26]. Research and Development - The company incurred research and development costs of RMB 1,250,532 thousand for the first half of 2022, compared to RMB 1,022,913 thousand in the previous year[12]. - R&D expenses in Q2 2022 were RMB 642.3 million, a 21% increase year-on-year, reflecting increased employee-related costs[17]. - Research and development costs for the first half of 2022 were RMB 1,250.5 million, a 22% increase year-on-year, mainly due to an increase in employee numbers and related expenses[28]. User Metrics - The number of monthly active devices for key products reached 570 million, a 14% increase year-over-year[10]. - Cumulative paying users increased to 28.56 million, representing a 31% year-over-year growth[10]. - The company continues to focus on enhancing user experience in cloud office applications, leading to a sustained increase in paid user numbers[13]. Shareholder Information - As of June 30, 2022, the group held cash and bank deposits totaling RMB 14,204.6 million, representing 38% of total assets[34]. - The company repurchased a total of 3,288,200 shares of its own ordinary shares at a total cost of approximately HKD 77.93 million during the six months ended June 30, 2022, enhancing shareholder value[60]. - Major shareholders include Color Link Management with 15.37% ownership (210,116,248 shares) and Tencent Holdings with 7.81% ownership (106,784,515 shares) as of June 30, 2022[57]. Losses and Expenses - The net cash used in investing activities for the six months ended June 30, 2022, was RMB (456,902) thousand, compared to RMB (108,969) thousand in the same period of 2021, reflecting a significant increase in cash outflow[80]. - The company recorded a share of losses from associates of RMB 692.4 million for the first half of 2022, compared to RMB 435.7 million for the same period in 2021[31]. - The company reported a loss from joint ventures of RMB 692,357 thousand for the six months ended June 30, 2022, compared to a loss of RMB 435,697 thousand in the same period of 2021, indicating a worsening performance[79]. Market Strategy - The company plans to continue expanding its market presence and investing in new product development[11]. - The company is actively reducing the number of advertising placements and push frequency to improve click quality and minimize user disruption[13]. - The company continues to seek new business opportunities to supplement and enhance its existing operations and expand into new markets[39]. Financial Position - As of June 30, 2022, the company had total liabilities of RMB 3,972,143,000, down 3.05% from RMB 4,096,184,000 as of December 31, 2021[75]. - The debt-to-asset ratio was 21% as of June 30, 2022, unchanged from December 31, 2021[67]. - The company held cash and bank deposits totaling RMB 14,204,579,000 as of June 30, 2022, compared to RMB 16,190,138,000 as of December 31, 2021[109]. Investments - The fair value of the investment in Kingsoft Cloud as of June 30, 2022, was approximately RMB 2,833.8 million, down from RMB 9,527.9 million as of December 31, 2021[38]. - Kingsoft Cloud reported a net loss of RMB 1,609.7 million for the first half of 2022, compared to a net loss of RMB 841.4 million in the first half of 2021, representing an increase in losses of approximately 91.1%[200]. - The investment in Kingsoft Cloud accounted for 8% of the total assets of the company as of June 30, 2022[200].

Financial Performance - Revenue for the three months ended March 31, 2022, was RMB 1,853,015 thousand, representing a 19% increase year-over-year and a 2% increase quarter-over-quarter[2] - Operating profit for the same period was RMB 499,451 thousand, showing a 2% decrease year-over-year but a 51% increase quarter-over-quarter[2] - Net profit attributable to equity holders of the parent company was RMB 99,386 thousand, a 15% decrease year-over-year[2] - Basic earnings per share for the period was RMB 0.07, down 22% from RMB 0.09 in the same period last year[2] - The group reported a net profit of RMB 289,074 thousand for the three months ended March 31, 2022, compared to RMB 299,774 thousand in the same period last year[6] - Other comprehensive income for the period was a loss of RMB 22,623 thousand, compared to a gain of RMB 59,612 thousand in the same period last year[6] - Total comprehensive income for the period was RMB 266,451,000, down 26.0% from RMB 359,386,000 in the previous year[33] Revenue Breakdown - Revenue for Q1 2022 was RMB 1,853.0 million, an increase of 19% year-over-year and 2% quarter-over-quarter, with office software and services contributing 47% and online games and others contributing 53% to total revenue[15] - Revenue from office software and services was RMB 871.1 million, a 13% increase year-over-year but a 4% decrease quarter-over-quarter, driven by growth in personal and enterprise subscription businesses[15] - Revenue from online games and other businesses was RMB 981.9 million, a 25% increase year-over-year and a 7% increase quarter-over-quarter, attributed to the successful launch of several mobile games[15] - Subscription revenue from office software and services grew by 13% year-on-year, driven by an increase in personal and institutional users[29] - The online gaming and other businesses saw a year-on-year growth of 25%, attributed to the contribution from mobile games launched in Q4 2021[29] Assets and Liabilities - As of March 31, 2022, total non-current assets amounted to RMB 14,912,471 thousand, a slight increase from RMB 14,883,603 thousand as of December 31, 2021[7] - Current assets totaled RMB 21,533,130 thousand, showing a decrease from RMB 21,651,509 thousand in the previous year[7] - The net current assets increased to RMB 17,828,208 thousand compared to RMB 17,555,325 thousand as of December 31, 2021[7] - Total liabilities decreased to RMB 3,704,922 thousand from RMB 4,096,184 thousand year-over-year[8] - The company's equity increased to RMB 29,112,124 thousand from RMB 28,792,190 thousand year-over-year[8] - The debt-to-asset ratio was 20% as of March 31, 2022, down from 21% at the end of 2021[49] Cash Flow and Expenditures - The net cash flow from operating activities for the three months ended March 31, 2022, was RMB 188,616 thousand, down from RMB 238,250 thousand in the same period last year[9] - Cash and cash equivalents at the end of the period were RMB 4,393,695 thousand, compared to RMB 3,903,383 thousand as of March 31, 2021[9] - Capital expenditures for the three months ended March 31, 2022, were RMB 85.1 million, compared to RMB 75.1 million for the same period in 2021[25] - Operating cash flow for the three months ended March 31, 2022, was RMB 188,616,000, a decrease of 20.9% from RMB 238,250,000 in the same period last year[36] Research and Development - R&D expenses for Q1 2022 were RMB 608.3 million, a 24% increase year-over-year but an 11% decrease quarter-over-quarter, reflecting continued investment in innovation[17] - The company plans to continue investing in research and development to enhance product and service capabilities[26] - The newly launched game "Sword侠 World 3" performed well, showcasing the company's R&D capabilities and operational excellence[53] Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new product development[1] - The company is actively expanding into markets outside mainland China, with recent launches in Southeast Asia and regions like Hong Kong and Taiwan[26] - The company aims to strengthen its cloud and collaboration solutions to enhance user experience and drive digital government and industry digitalization opportunities[53]