Financial Data and Key Metrics Changes - The company reported notable growth in earnings per share, indicating a positive trend in profitability [4]. Business Line Data and Key Metrics Changes - There was a significant increase in concurrent users exceeding 300,000, showcasing high popularity for the company's offerings [5]. Market Data and Key Metrics Changes - User feedback on recent tests has been polarized, with key issues including server crashes and debates regarding gameplay mechanics [5]. Company Strategy and Development Direction - The management is expected to discuss strategic investment plans and the use of cash in future communications, indicating a focus on growth and sustainability [4]. Management's Comments on Operating Environment and Future Outlook - Management's views on the sustainability of earnings growth in 2025 were sought, reflecting concerns about maintaining performance in a competitive environment [4]. Other Important Information - The call included a reminder that forward-looking statements may not be reliable for future predictions, highlighting the inherent uncertainties in the market [1]. Q&A Session Summary Question: Sustainability of earnings per share growth in 2025 - Management was asked if the improvement in earnings per share is expected to be sustainable in 2025 [4]. Question: Strategic investment plans and cash usage - A question was raised regarding the company's views on the use of cash and strategic investment plans [4]. Question: User feedback on recent tests - Inquiry was made about the recent test results and the polarized user feedback, particularly concerning server issues and gameplay [5].

Financial Performance - In 2024, Kingsoft achieved a total revenue of RMB 10,317.9 million, representing a year-on-year growth of 21%[10]. - Revenue from office software and services reached RMB 5,121.1 million, an increase of 12% compared to the previous year[10]. - Revenue from online games and other businesses surged to RMB 5,196.8 million, marking a significant growth of 31%[10]. - Operating profit for 2024 soared to RMB 3,646.6 million, a remarkable increase of 64%, with an operating margin rising to 35% from 26% in 2023[10]. - The company achieved a net profit of RMB 2,797.1 million for the year, compared to a loss of RMB 5,341.9 million in the previous year[9]. - The gross profit for 2024 was RMB 8,580.5 million, reflecting a 22% increase year-over-year, with a gross margin of 83%[21]. - The profit attributable to the owners of the parent company for 2024 is RMB 1,551.6 million, up from RMB 483.5 million in the previous year[30]. - The profit attributable to the owners of the parent company before share-based payment costs for 2024 is RMB 1,719.6 million, compared to RMB 684.5 million last year[31]. - The net profit margin excluding share-based payment costs for 2024 and 2023 is 17% and 8%, respectively[32]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the quarter, representing a 25% year-over-year growth[1]. Research and Development - Research and development costs increased to RMB 3,045.4 million, reflecting the company's commitment to enhancing core capabilities in collaboration and AI[9]. - Research and development costs rose to RMB 3,045.4 million, a 13% increase year-over-year, due to increased staffing and AI-related investments[22]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[5]. - The company aims to deepen the application of AI technology in the office sector and strengthen the capabilities of WPS 365 while expanding globally[12]. Strategic Focus and Market Expansion - Kingsoft's strategic focus includes enhancing its product ecosystem around "multi-screen, cloud, content, collaboration, and AI" to improve market competitiveness[10]. - The company is actively exploring new game categories while deepening its engagement with classic martial arts IPs in the online gaming sector[10]. - The company plans to launch several new games in 2025, including "Jian Xia Qing Yuan: Zero" and a sci-fi mech game "Jie Xian Ji"[12]. - Market expansion plans include entering three new international markets by the end of the fiscal year, targeting a 15% increase in global market share[6]. Corporate Governance - The company is committed to enhancing corporate governance practices to ensure compliance with the applicable codes and regulations[68]. - The board consists of seven members, including one executive director, three non-executive directors, and three independent non-executive directors, ensuring compliance with listing rules[79]. - The board held four meetings and one annual general meeting during the year ending December 31, 2024, with all directors attending all meetings[86]. - The company has established written guidelines to regulate securities trading by employees who may possess unpublished internal information[76]. - The board is responsible for the preparation of financial statements that fairly reflect the group's financial position and performance, ensuring compliance with applicable accounting standards[78]. - The company has implemented a continuous professional development program for all directors to enhance their knowledge and skills[83]. - The board has authorized senior management to conduct daily operations while maintaining oversight of significant decisions affecting the company[77]. - The company has established a board diversity policy, achieving a female representation of 14% on the board and 32% among all employees[90]. Shareholder Communication and Dividends - The proposed final dividend for 2024 is RMB 184.6 million, up from RMB 171.4 million in 2023[9]. - The board considers internal control, risk management, and the company's financial condition when proposing dividends[114]. - Effective communication with shareholders is prioritized, with updates on business operations and financial data available on the company's website[122]. - The company has reviewed its shareholder communication policy and is satisfied with its execution and effectiveness[123]. Employee and Talent Management - The group employed approximately 8,047 full-time employees as of December 31, 2024, up from 7,172 in 2023[144]. - Employee costs, including directors and senior management remuneration, were approximately RMB 4,070.9 million for 2024, compared to RMB 3,765.5 million in 2023[144]. - The company aims to attract, motivate, and retain key talent through a compensation structure that includes base salary, benefits, retirement plans, performance bonuses, and incentive stock options[98]. - The company has established a shorter vesting period for employee participants under the 2024 share plan to enhance flexibility in attracting and retaining talent[99]. Audit and Compliance - The total remuneration paid to the external auditor, Ernst & Young, for audit services was RMB 6.20 million for 2024, down from RMB 6.65 million in 2023, while non-audit services amounted to RMB 2.45 million, compared to RMB 2.60 million in the previous year[111]. - The company’s financial reporting system and internal controls are regularly reviewed for effectiveness and adequacy[96]. - The company has not detected any non-compliance with the established guidelines by employees during the year[76]. Share Option Plans - The 2024 Share Option Plan was approved on May 23, 2024, allowing for the issuance of up to 133,916,711 new shares, which is 10% of the total shares issued as of that date[158]. - The total number of unexercised share rewards under the 2024 Share Option Plan remained at 1,527,400 as of December 31, 2024[159]. - The maximum number of shares that may be issued upon exercise of options under the 2021 Share Option Plan is capped at 10% of the total issued shares as of December 9, 2021, which amounts to 137,020,371 shares[166]. - The company has approved and adopted the 2021, 2022, 2023, and 2024 share incentive plans, with a total of 870,000, 1,000,000, 1,000,000, and 997,000 shares authorized for issuance, respectively, representing approximately 0.19%, 0.22%, 0.22%, and 0.22% of the total issued share capital as of December 31, 2024[178].

Key Points Summary of Kingsoft Software Conference Call Company Overview - **Company**: Kingsoft Software - **Year**: 2024 - **Total Revenue**: 10.316 billion RMB, a 23% year-on-year increase, marking a historical high [2][5] Financial Performance - **Office Software Revenue**: 5.12 billion RMB, up 12% year-on-year [2][5] - **Online Gaming Revenue**: 5.196 billion RMB, a significant increase of 31% year-on-year [2][5] - **Operating Profit Margin**: 3.65 billion RMB, a 64% increase year-on-year [3][5] - **Net Profit**: 1.55 billion RMB, a remarkable growth of 220% year-on-year [3][5] Business Segments Office Software - **R&D Investment**: Increased focus on AI and collaboration, with the launch of WPS AI 2.0, which includes four components: writing, design, reading, and data [2][6] - **User Engagement**: Aiming to enhance user activity and work efficiency through new features [2][18] - **Overseas Market**: Monthly active users on PC nearing 30 million, with personal product revenue reaching 180 million RMB, a 42% increase [4][20] Online Gaming - **New Game Launch**: "Bottom Line Machine" has over 3 million total testers and 310,000 concurrent users, expected to launch in Q2 [2][7] - **Long-term Product**: "Jian Wang 3" achieved record revenue growth of approximately 20% in 2024, with a stable operation strategy planned for 2025 [2][11] Strategic Focus - **AI Development**: Continued investment in AI technology to enhance product offerings and user experience [6][19] - **Global Expansion**: Plans to increase investment in overseas markets, including R&D and marketing efforts [4][20] - **Shareholder Returns**: Company holds approximately 26.5 billion RMB in cash equivalents, with plans to increase dividends and buybacks when market conditions allow [4][30] Market Position and Competition - **Competitive Landscape**: "Bottom Line Machine" faces competition from titles like "World of Tanks 3" and other similar products [8][10] - **User Growth Strategy**: No perceived ceiling on user numbers in the anime market, with ongoing content updates to maintain engagement [14] Future Outlook - **2025 Projections**: Gaming business expected to see single-digit growth due to high base in 2024; office business guidance not provided but anticipated to perform well [4][15][16] - **AI Integration**: Focus on enhancing AI capabilities in office software, with specific targets for user engagement metrics [18][19] Additional Insights - **Cash Management**: Company maintains a cautious approach to capitalizing expenses, with all costs treated as current expenses [28] - **Cloud Business**: Future funding support for cloud services remains uncertain, with no immediate plans for equity adjustments [34][35] This summary encapsulates the key points from the Kingsoft Software conference call, highlighting the company's financial performance, strategic initiatives, and future outlook across its business segments.

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 10,317,904 thousand, representing a 21% increase from RMB 8,533,611 thousand in 2023[3] - Operating profit increased by 64% to RMB 3,646,623 thousand, compared to RMB 2,226,882 thousand in the previous year[3] - Profit attributable to equity holders of the parent surged by 221% to RMB 1,551,613 thousand, up from RMB 483,457 thousand in 2023[3] - Basic earnings per share rose to RMB 1.16, a 222% increase from RMB 0.36 in the prior year[3] - The company reported a net profit of RMB 2,797,096 thousand for the year, compared to RMB 1,215,188 thousand in 2023[9] - The company's profit for the year ended December 31, 2024, was RMB 2,797,096,000, a significant increase of 130.5% compared to RMB 1,215,188,000 in 2023[10] - Total comprehensive income for the year was RMB 2,853,311,000, up 122.5% from RMB 1,285,670,000 in the previous year[10] - The gross profit for 2024 was RMB 8,580.5 million, reflecting a 22% increase year-on-year, with a gross margin of 83%[76] - The operating profit before share-based compensation for 2024 grew by 54% to RMB 3,922.5 million compared to the previous year[82] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.15 per share, up from HKD 0.14 per share in 2023[5] - The company declared a dividend of RMB 170,337,000 for the year 2023, reflecting its commitment to returning value to shareholders[11] - The proposed final dividend for 2024 is HKD 0.15 per share, compared to HKD 0.14 per share in 2023, resulting in a total of RMB 184,613,000 for the year[42] - The company repurchased shares worth RMB 397,098,000 during the year, indicating a strategy to enhance shareholder value[11] - The company repurchased a total of 21,062,800 shares at a total cost of approximately HKD 435.60 million during 2024[102] Assets and Liabilities - Non-current assets totaled RMB 8,044,078 thousand, a decrease from RMB 8,301,498 thousand in 2023[6] - Current assets increased to RMB 30,240,397 thousand from RMB 26,893,214 thousand in the previous year[6] - Total liabilities increased significantly to RMB 9,872,073 thousand, compared to RMB 8,621,455 thousand in 2023[8] - The total assets of the company as of December 31, 2024, were RMB 28,412,402,000, reflecting growth from RMB 26,573,257,000 in 2023[11] - The total equity attributable to the owners of the parent company as of December 31, 2024, was RMB 22,456,276,000, an increase from RMB 21,289,033,000 in 2023[11] Cash Flow - The net cash flow from operating activities for the year ended December 31, 2024, was RMB 4,587,160, an increase from RMB 3,488,746 in 2023, representing a growth of approximately 31.5%[13] - The net cash flow used in investing activities for 2024 was RMB (8,523,733), compared to RMB (6,476,034) in 2023, indicating an increase in investment outflows of about 31.6%[13] - The net cash flow from financing activities for 2024 was RMB (1,083,680), a decrease from RMB 655,863 in 2023, reflecting a significant shift in financing strategy[13] - The total cash and cash equivalents at the end of 2024 amounted to RMB 3,703,586, down from RMB 8,707,372 at the end of 2023, a decrease of approximately 57.5%[13] - The cash and bank deposits as of December 31, 2024, totaled RMB 23,815.0 million, representing 62% of total assets[90] Research and Development - The company has been focusing on R&D for products such as WPS Office, WPS 365, and WPS AI, indicating a commitment to innovation and market expansion[17] - The company has ongoing research and development in office products and services, including WPS Office, WPS 365, and WPS AI, as well as in gaming services[23] - R&D expenses for 2024 amounted to RMB 3,045.4 million, a 13% increase from the previous year, driven by increased staffing and AI-related investments[77] - R&D expenses for Q4 2024 were RMB 730.4 million, up 7% year-on-year, primarily due to increased staff and AI-related expenditures[63] Market Performance - The revenue from office software and services was RMB 5,121,075 thousand, while revenue from online games and others was RMB 5,196,829 thousand[9] - The revenue from the office software and services business was RMB 5,121.1 million, growing by 12%, while the revenue from online games and other businesses reached RMB 5,196.8 million, significantly increasing by 31%[96] - The number of active devices using WPS Office globally reached 632 million in December 2024, a 6% increase year-on-year[54] - Cumulative paying users reached 41.70 million as of December 31, 2024, marking a 17% year-on-year growth[54] - The revenue from online games and other segments was RMB 1,291.3 million in Q4 2024, a 26% increase year-on-year[60] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the year ending December 31, 2024, and confirmed compliance with applicable accounting standards[107] - The company has adhered to the corporate governance code, except for the requirement to provide monthly updates to the board, opting instead for quarterly reports[109] - Forward-looking statements regarding the company's financial condition and operational performance are subject to inherent risks and uncertainties, which may lead to significant differences from actual results[110] - The company will publish all financial and related information as required by listing rules on the Hong Kong Stock Exchange and its own website at an appropriate time[111] Employee and Workforce - Employee benefits expenses, including salaries and wages, totaled RMB 4,070,898 thousand for 2024, up from RMB 3,765,451 thousand in 2023, reflecting an increase of approximately 8%[26] - The company has increased its workforce to approximately 8,047 full-time employees, up from 7,172 in 2023[101] - The total employee cost for 2024 was approximately RMB 4,070.9 million, compared to RMB 3,765.5 million in 2023[101]

更多资料加入知识星球:水木调研纪要 关注公众号:水木纪要 金山软件 更多资料加入知识星球:水木调研纪要 关注公众号:水木纪要 分别超过 200%和 40%。其次,在 DIP 带动 AI 应用发展的背景下,金山软件主营 业务涵盖游戏和办公,这两个领域都是重要的AI 应用场景,有进一步催化作用。 级报数据加V：shuinu9870 98 E报数据加V: shuinu9870 摘要 金山软件预计 2024年净利润达 15 亿元人民币,2025年有望突破 20亿元, 人民币 - 2006年 - 1000 催化。 -手调研 为什么在当前时点推荐金山软件? 我们在当前时点推荐金山软件有几个主要原因。首先,金山软件作为雷军系的 领军企业之一,其基本面正在向好发展。尽管去年(2024年)小米和金山云的 市场表现备受关注,但金山软件尚未被市场充分重视。我们预计 2024年的净利 润将达到15亿元人民币,2025年则有望突破20亿元人民币,对应的利润增速 更多一手调研究者 & 福州教行研报数据加V： = http://www.blogs.com/selection/space/fille/search/colors/ 金山软件主 ...

Summary of Kingsoft Corporation's Q3 2024 Earnings Conference Call Company Overview - **Company**: Kingsoft Corporation - **Industry**: Financial Software and Online Gaming Key Financial Highlights - **Total Revenue**: RMB 29.15 billion, a 42% year-on-year increase and an 18% quarter-on-quarter increase [2][9] - **Operating Profit**: RMB 11.4 billion, a 204% year-on-year increase and a 44% quarter-on-quarter increase [2][9] - **Revenue Breakdown**: - **Office Software and Services**: RMB 12.07 billion, up 10% year-on-year and 2% quarter-on-quarter [2][9] - **Gaming and Other Businesses**: RMB 1.78 billion, up 78% year-on-year and 33% quarter-on-quarter [2][9] Business Performance Office Software - **Technological Investment**: Continuous investment in R&D has maintained Kingsoft's leadership in domestic office software [3][4] - **AI Integration**: The introduction of WPS AI 2.0 and the launch of DirtX AI Half-Written have enhanced user engagement and efficiency [3][4] - **Subscription Growth**: Domestic individual office subscription revenue reached RMB 716 million, a 17.2% year-on-year increase [4][5] - **User Base**: Monthly active users reached 618 million, with a 4.9% year-on-year growth [4][5] Gaming Sector - **Performance of Classic Titles**: The Sword Art Online series continues to perform well, with GX3 Ultimate achieving 11.46 million monthly active users in its first month [6][7] - **New Game Releases**: Anticipation for three to five new games in the upcoming year, with three already licensed [12][14] - **User Engagement**: Strong retention rates observed, with returning players for GX3 Ultimate reaching 60.3% [6][7] Strategic Initiatives - **AI and Collaboration**: Kingsoft is committed to enhancing AI capabilities and collaboration tools to improve user experience [8][20] - **International Expansion**: The company is focusing on expanding its presence in overseas markets, particularly in Southeast Asia [22][23] - **Institutional Business Growth**: Revenue from domestic institutional subscriptions increased by 9% year-on-year, driven by policy alignment and localization solutions [5][15] Financial Outlook - **Profitability**: Net profit attributable to owners was RMB 403 million, compared to RMB 28 million in the same quarter last year [10][11] - **Cash Position**: As of September 30, 2024, Kingsoft had cash resources of RMB 25 billion [11] - **Shareholder Returns**: Discussions on potential dividends and share repurchase programs are ongoing, with a focus on maintaining shareholder value [17][18] Additional Insights - **Market Conditions**: The management noted improvements in the macroeconomic environment, particularly benefiting government and state-owned enterprise clients [18][19] - **AI Product Commercialization**: Progress in AI product commercialization is in line with expectations, with a focus on gradual improvements rather than immediate comprehensive solutions [20][21] This summary encapsulates the key points from Kingsoft Corporation's Q3 2024 earnings call, highlighting financial performance, business strategies, and future outlooks.

Revenue and Profit Performance - Revenue for the three months ended September 30, 2024, was RMB 2,914.785 million, a 42% year-over-year increase and an 18% quarter-over-quarter increase[3] - Operating profit for the three months ended September 30, 2024, was RMB 1,144.118 million, a 204% year-over-year increase and a 44% quarter-over-quarter increase[3] - Net profit attributable to the parent company's shareholders for the three months ended September 30, 2024, was RMB 413.449 million, a 1,351% year-over-year increase and a 5% quarter-over-quarter increase[3] - Revenue for Q3 2024 reached RMB 2,914.8 million, a 42% YoY increase and an 18% QoQ growth[34] - Revenue for Q3 2024 reached RMB 2,914.8 million, a 42% YoY increase and an 18% QoQ growth[54] - Gross profit for the three months ended September 30, 2024, was RMB 2,454.444 million, a 46% year-over-year increase[8] - Gross profit for Q3 2024 was RMB 2,454.4 million, up 46% YoY and 20% QoQ, with a gross margin of 84%, up 3 percentage points YoY and 1 percentage point QoQ[35] - Operating profit before share-based compensation for Q3 2024 was RMB 1,202.4 million, up 168% YoY and 37% QoQ[41] - Net profit attributable to the parent company for Q3 2024 was RMB 413.4 million, compared to RMB 28.5 million in Q3 2023 and RMB 393.4 million in Q2 2024[45] Office Software and Services - Revenue from office software and services was RMB 1,206.815 million for the three months ended September 30, 2024, a 10% year-over-year increase[8] - Office software and services revenue for Q3 2024 was RMB 1,206.8 million, up 10% YoY and 2% QoY, driven by WPS AI 2.0 enhancements[34] - Office software and services revenue for Q3 2024 was RMB 1,206.8 million, up 10% YoY and 2% QoQ[54] - Domestic individual office subscription business continues to optimize WPS AI product features, enhancing user stickiness and payment conversion[55] - Domestic institutional subscription business steadily advances SaaS transformation with WPS 365, targeting large-scale private enterprises and local state-owned enterprises[55] - WPS AI innovations include text companion writing, AI Docs intelligent document library, and WPS Lingxi AI assistant, with the release of WPS HarmonyOS version[55] Online Games and Other Revenue - Revenue from online games and others was RMB 1,707.970 million for the three months ended September 30, 2024, a 78% year-over-year increase[8] - Online games and other revenue for Q3 2024 was RMB 1,708.0 million, a 78% YoY increase and 33% QoQ growth, boosted by strong performance of "JX3" and the successful launch of "JX3 Infinite"[34] - The company's gaming and other business revenue for Q3 2024 was RMB 1,708.0 million, a 78% YoY increase and a 33% QoQ growth[54] - "JX3" game shows strong resilience, with "JX3: Infinite" exceeding expectations in returning user numbers[55] - "JX3" annual expansion released in October, introducing new classes, level caps, and innovative gameplay[55] - Sci-fi mecha game "JX3: Limit Breaker" completed its first public test in August, with nearly 3 million global pre-registrations and ranking 17th on Steam wishlists[55] - Mobile game "JX3: Zero" has obtained a license and is planned for release next year[55] Research and Development - Research and development costs for the three months ended September 30, 2024, were RMB 860.931 million, a 28% year-over-year increase[8] - R&D costs for Q3 2024 were RMB 860.9 million, a 28% YoY increase and a 16% QoQ growth, driven by increased headcount for AI and collaboration product development[36] - The company will continue long-term investment in AI and collaboration to meet user needs in various office scenarios[56] User Metrics - Monthly active devices for the main office software products reached 618 million in September 2024, a 5% year-over-year increase and a 3% quarter-over-quarter increase[5] - Cumulative paying users for the main office software products reached 38.15 million in September 2024, a 15% year-over-year increase[5] Financial Position and Cash Flow - Total non-current assets as of September 30, 2024, were RMB 8,292.9 million, slightly down from RMB 8,301.5 million at the end of 2023[11] - Total current assets as of September 30, 2024, were RMB 28,143.5 million, up from RMB 26,893.2 million at the end of 2023[11] - Net cash generated from operating activities for Q3 2024 was RMB 1,387.3 million, compared to a net cash outflow of RMB 552.4 million in the same period last year[20] - Cash and cash equivalents at the end of Q3 2024 were RMB 2,202.5 million, down from RMB 2,430.9 million at the beginning of the quarter[23] - Total equity as of September 30, 2024, was RMB 27,668.9 million, up from RMB 26,573.3 million at the end of 2023[18] - The company's cash and bank deposits as of September 30, 2024, were RMB 20,483.1 million, slightly up from RMB 19,747.7 million at the end of 2023[25] - Cash and bank deposits, along with restricted cash, totaled RMB 20,483.1 million and RMB 3.2 million respectively, accounting for 56% of the company's total assets[48] - Net cash generated from operating activities for Q3 2024 was RMB 1,387.3 million, compared to a net cash outflow of RMB 552.4 million in Q3 2023 and a net cash inflow of RMB 1,045.2 million in Q2 2024[51] - Capital expenditures for Q3 2024 were RMB 108.6 million, down from RMB 159.7 million in Q3 2023 and RMB 49.7 million in Q2 2024[52] Earnings Per Share - Basic earnings per share for the three months ended September 30, 2024, were RMB 0.31, a 1,450% year-over-year increase[3] Overseas and AI Business - Overseas business maintains healthy growth[55] - The gaming business focuses on innovation and quality improvement to deliver exceptional global gaming experiences[56]

Financial Performance - For the six months ended June 30, 2024, total revenue reached RMB 4,610,641 thousand, a 10.7% increase from RMB 4,163,797 thousand in the same period of 2023[12]. - Operating profit for the six months ended June 30, 2024, was RMB 1,395,615 thousand, up 22.9% from RMB 1,136,015 thousand in the same period of 2023[14]. - The company reported a net profit of RMB 1,198,130 thousand for the six months ended June 30, 2024, a significant increase from RMB 605,725 thousand in 2023[14]. - The basic earnings per share for the six months ended June 30, 2024, was RMB 0.51, compared to RMB 0.18 in the same period of 2023[14]. - The gross profit for Q2 2024 was RMB 2,042.0 million, an 11% increase year-on-year and a 17% increase quarter-on-quarter, with a gross margin of 83%[21]. - The profit attributable to the company's owners for H1 2024 was RMB 677.9 million, compared to RMB 249.5 million in the same period last year[46]. - The company reported a profit of RMB 677,923,000 for the six months ended June 30, 2024, contributing to a total comprehensive income of RMB 706,576,000[138]. User Growth and Engagement - The number of cumulative paying users increased by 15% year-over-year, reaching 38.15 million as of June 30, 2024, compared to 33.24 million in 2023[9]. - Monthly active devices for key products remained stable at 602 million as of June 30, 2024, compared to 584 million in the same period of 2023[9]. Research and Development - Research and development costs for the six months ended June 30, 2024, were RMB 1,454,051 thousand, an increase from RMB 1,326,711 thousand in 2023[14]. - R&D expenses for Q2 2024 amounted to RMB 741.3 million, an 11% increase year-on-year and a 4% increase quarter-on-quarter[22]. - R&D expenses for H1 2024 were RMB 1,454.1 million, a 10% increase year-over-year, mainly due to increased investments in collaboration and AI[37]. - The company has continued to invest in the research and development of WPS Office software and gaming services, indicating a focus on innovation and market expansion[153]. Market Strategy and Future Plans - The company plans to continue expanding its market presence and investing in new product development to drive future growth[12]. - The company will continue to explore new market opportunities to enhance its existing business and expand into new markets[57]. - The company plans to invest approximately RMB 1,900 million in the construction of the Wuhan Park by June 30, 2024, to enhance R&D capabilities and attract talent[57]. Financial Position and Assets - As of June 30, 2024, the company's cash and bank deposits amounted to RMB 19,713.9 million, representing 55% of total assets, with a debt-to-asset ratio of 24%[48]. - Total assets as of June 30, 2024, amounted to RMB 27,961,806 thousand, a decrease from RMB 30,314,274 thousand as of December 31, 2023[134]. - The total net assets reached RMB 27,003,005,000 as of June 30, 2024, compared to RMB 26,573,257,000 at the end of December 2023[136]. - The company’s total equity increased to RMB 25,912,070 thousand as of June 30, 2024, up from RMB 24,156,467 thousand at the beginning of the year, reflecting a growth of about 7%[139]. Shareholder Information and Incentive Plans - As of June 30, 2024, the company’s issued share capital was 1,339,184,157 shares, with Lei Jun holding a total of 308,157,048 shares, representing 23.01% of the issued share capital[60]. - The 2024 Share Option Plan was approved on May 23, 2024, allowing for the issuance of up to 133,916,711 shares, which is 10% of the issued shares as of that date[68]. - The company aims to attract and retain talent through the implementation of the 2021 Share Option Plan and the Share Award Scheme[74][79]. - The total number of unexercised share options under the 2021 Share Option Plan as of June 30, 2024, is 5,500,000, with an exercise price of HKD 31.69 per share[76]. Cash Flow and Financial Activities - Operating cash flow for the six months ended June 30, 2024, was RMB 1,374,262 thousand, down from RMB 2,307,572 thousand in the same period last year, indicating a decline of about 40%[141]. - The company experienced a significant increase in cash outflows for investment activities, totaling RMB 6,787,751 thousand, compared to RMB 1,482,629 thousand in the previous year, representing an increase of approximately 358%[143]. - The net cash flow from financing activities was a negative RMB 869,442 thousand, contrasting with a positive cash flow of RMB 989,023 thousand in the same period last year[146]. Dividend and Share Repurchase - The company declared a final dividend of RMB 170,337,000 for the year ended December 31, 2023[138]. - The company repurchased a total of 18,688,600 shares at a total cost of approximately HKD 385.62 million during the six months ended June 30, 2024[113]. - The company paid dividends to equity holders of the parent amounting to RMB 170,337 thousand, slightly increasing from RMB 162,831 thousand in the previous year[146].

Good day and thank you for standing by. Welcome to the second quarter of 2024 KingsHealth Corporation 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's con ...

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） 截至二零二四年六月三十日止三個月及六個月 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」）截至二零二四年六月三十日止三個月及六個月之未經審計業績。該等 中期業績已由本公司審核委員會（「審核委員會」）審閱。 1 財務資料 簡明合併損益表 截至二零二四年六月三十日止三個月及六個月 | | | 截至六月三十日止三個月 | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | --- | --- | | | | 二零二四年 | 二零二三年 | 二零二四年 | 二零二三年 | | | | 人民幣千元 | 人民幣千元 | 人民幣千元 | 人民幣千 ...