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 ...

Financial Data and Key Metrics - Revenue for Q1 2024 reached RMB 2,137 million, a YoY increase of 8.45% and a QoQ decrease of 7.50% [2] - Net profit attributable to shareholders was RMB 285 million, a YoY increase of 47.95% and a QoQ increase of 38.52% [2] - Adjusted net profit attributable to shareholders (excluding share-based compensation costs) was RMB 329 million, compared to RMB 236 million in the same period last year and RMB 257 million in Q4 2023 [2] - Monthly active devices for the company's office software products reached 602 million, a YoY increase of 2.21% and a QoQ increase of 0.67% [2] Business Line Data and Key Metrics - Online games and other revenue was RMB 912 million, a YoY decrease of 0.78% and a QoQ decrease of 11.02%, accounting for 42.66% of total revenue [3] - Office software and services revenue was RMB 1,225 million, a YoY increase of 16.52% and a QoQ decrease of 4.69%, accounting for 57.34% of total revenue [3] - The growth in office software revenue was driven by domestic personal and institutional subscription services, as well as institutional licensing, partially offset by a decline in advertising revenue [3] Market Data and Key Metrics - The company's flagship game "JX3" maintained steady growth, while the mobile version "JX3: Beyond Boundaries" is expected to launch in June 2024, offering a multi-platform gaming experience [7] - The sci-fi mecha game "Xianji" received a license in March 2024 and is undergoing testing and optimization in both domestic and overseas markets [7] Company Strategy and Industry Competition - The company is focusing on its "multi-screen, cloud, content, collaboration, AI" strategy, with continuous investment in AI and collaboration product development [7] - WPS AI began initial commercialization in March, and the upgraded WPS 365 platform was launched in April, providing a comprehensive AI office solution [7] - The company remains confident in its competitive position against Microsoft's Copilot, citing strong user loyalty and a solid foundation in the domestic market [9] Management Commentary on Operating Environment and Future Outlook - The company achieved steady financial performance in Q1 2024, with operating profit reaching RMB 601.6 million, a YoY increase of 31% [7] - Management emphasized the importance of user feedback and long-term operational strategies, particularly in the gaming segment [8] - The company is optimistic about the growth potential of its AI-driven office solutions and expects further advancements in both C-end and B-end markets [8] Other Important Information - The company's gross margin for Q1 2024 was 81.46%, a YoY decrease of 1.04 percentage points and a QoQ decrease of 0.62 percentage points [4] - R&D expenses increased by 7.83% YoY to RMB 713 million, driven by continued investment in AI and collaboration products [4] - Sales and marketing expenses decreased by 25.59% YoY to RMB 261 million, primarily due to reduced promotional spending in the gaming segment [4] Q&A Summary Q1: Sustainability of "Chen Bai" and WPS AI progress - The company is confident in the sustained growth of "Chen Bai" due to its deep expertise in the niche market and has raised its full-year revenue guidance for the game [8] - WPS AI's C-end testing met expectations, and the company is focusing on model optimization and B-end integration with existing clients [8] Q2: Breakdown of gaming growth and share repurchase plans - "Chen Bai" is expected to contribute significantly to gaming revenue growth, while "JX3: Beyond Boundaries" will drive user base expansion [8] - The company has a share repurchase plan of up to HKD 1 billion, with flexibility based on market conditions [8] Q3: AI competition and cost impact - The company views the reduction in AI model costs as beneficial and is considering lowering membership fees for WPS AI [9] - Management is not concerned about competition from Microsoft's Copilot, citing strong user loyalty and a solid domestic market presence [9]

Financial Data and Key Metrics Changes - In Q1 2024, Kingsoft Corporation achieved revenue of RMB 21.37 billion, representing a year-over-year increase of 8.45% but a quarter-over-quarter decrease of 7.50% [2] - The net profit attributable to shareholders for Q1 2024 was RMB 2.85 billion, showing a year-over-year increase of 47.95% and a quarter-over-quarter increase of 38.52% [4] - The adjusted net profit before share-based compensation for Q1 2024 was RMB 3.29 billion, compared to RMB 2.36 billion in the same period last year and RMB 2.57 billion in Q4 2023 [4] Business Line Data and Key Metrics Changes - Revenue from online games and other sources in Q1 2024 was RMB 9.12 billion, a slight year-over-year decrease of 0.78% and a quarter-over-quarter decrease of 11.02%, accounting for 42.66% of total revenue [2] - Revenue from office software and services in Q1 2024 was RMB 12.25 billion, reflecting a year-over-year increase of 16.52% but a quarter-over-quarter decrease of 4.69%, making up 57.34% of total revenue [2] Market Data and Key Metrics Changes - The number of monthly active devices for the main office software products reached 602 million in Q1 2024, representing a year-over-year growth of 2.21% and a quarter-over-quarter growth of 0.67% [5] Company Strategy and Development Direction - Kingsoft is focusing on a strategy centered around "multi-screen, cloud, content, collaboration, and AI," with ongoing investments in AI and collaborative product development [5] - The company aims to enhance product competitiveness through technological innovation and product iteration, while also exploring new game genres and maintaining a strong focus on user feedback [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainable growth of the gaming business, particularly with the success of the game "Dust White Zone," and has adjusted revenue expectations for the year [7] - The company is optimistic about the future of its office software business, driven by the launch of the upgraded WPS 365 platform, which integrates AI solutions for users [5] Other Important Information - The overall gross margin for Q1 2024 was 81.46%, a decrease of 1.04 percentage points year-over-year and 0.62 percentage points quarter-over-quarter [3] - Research and development expenses for Q1 2024 were RMB 7.13 billion, reflecting a year-over-year increase of 7.83% [3] Q&A Session Summary Question 1: What is the outlook for the game "Dust White Zone" and the strategy for future games? - The board believes in the sustainability of "Dust White Zone" growth, with an adjusted revenue forecast for the year indicating a 10% increase, supported by user feedback and operational adjustments [7] Question 2: Can you break down the 10% growth guidance for games and any considerations for stock buybacks? - "Dust White Zone" is expected to contribute significantly to growth, while "Sword Network 3 Unlimited" is anticipated to drive user engagement and growth [7] Question 3: How does management view the competitive landscape in the AI sector and its impact on WPS AI? - The decrease in model costs is seen as beneficial for WPS AI, and management is confident in their competitive position against major players like Microsoft [8]

Financial Performance - For the three months ended March 31, 2024, the company reported revenue of RMB 2,136,875 thousand, an increase of 8% compared to RMB 1,970,307 thousand for the same period in 2023[3] - Operating profit for the same period was RMB 601,578 thousand, reflecting a 31% year-over-year increase from RMB 460,302 thousand[3] - Profit attributable to equity holders of the parent was RMB 284,570 thousand, up 48% from RMB 192,343 thousand in the previous year[3] - The basic and diluted earnings per share were both RMB 0.21, representing a 50% increase compared to RMB 0.14 in the same quarter last year[3] - The revenue for Q1 2024 was RMB 2,136.9 million, an increase of 8% year-on-year but a decrease of 7% quarter-on-quarter[14] - Revenue from office software and services was RMB 1,225.3 million, up 17% year-on-year, driven by growth in domestic personal and institutional subscription businesses[14] - The total revenue for Q1 2024 was RMB 2,136.9 million, reflecting an 8% year-on-year increase, with the office software and services segment generating RMB 1,225.3 million, up 17% year-on-year[29] - The operating profit for Q1 2024 was RMB 601.6 million, showing a significant year-on-year growth of 31%[29] User Metrics - The number of monthly active devices for the main product reached 602 million, a 2% increase year-over-year from 589 million[4] - The cumulative number of paying users increased to 35.49 million, an 18% rise from 29.97 million in the previous year[4] Cash Position - The company reported a net cash position of RMB 20,770,189 thousand as of March 31, 2024, compared to RMB 20,271,193 thousand at the end of the previous year[7] - The total cash and cash equivalents at the end of Q1 2024 were RMB 20,770.2 million, compared to RMB 15,703.4 million at the same time last year[9] - The company reported a strong cash position with cash and bank deposits totaling RMB 20,770.2 million, representing 59% of total assets as of March 31, 2024[25] Expenses - The cost of revenue for Q1 2024 was RMB 396.2 million, a 15% increase year-on-year, primarily due to increased server and bandwidth costs[15] - Gross profit for Q1 2024 was RMB 1,740.7 million, a 7% increase year-on-year, with a gross margin of 81%, down one percentage point from the previous year[15] - R&D expenses for Q1 2024 were RMB 712.8 million, an 8% increase year-on-year, reflecting continued investment in AI and collaborative products[16] - Selling and distribution expenses for Q1 2024 were RMB 261.3 million, a decrease of 26% year-on-year, mainly due to reduced promotional spending for online games[17] - Administrative expenses for Q1 2024 were RMB 160.3 million, a 7% increase year-on-year, driven by employee-related costs[18] Future Outlook - The company plans to continue expanding its product offerings and user base, focusing on innovation in software and services[2] - The company has not disclosed specific guidance for future performance but indicated a positive outlook based on current trends and user growth[2] - The company plans to continue investing in AI and collaboration research and development, focusing on the commercialization of WPS AI across various office scenarios[30] Profitability - Operating profit before share-based compensation for Q1 2024 was RMB 678.0 million, a 27% increase year-on-year[20] - The net profit margin excluding share-based compensation for Q1 2024 was 15%, compared to 12% in Q1 2023 and 11% in Q4 2023[24] - The income tax expense for Q1 2024 was RMB 42.3 million, a 63% increase year-on-year but a 66% decrease from the previous quarter[22] Cash Flow - The net cash flow from operating activities for Q1 2024 was RMB 329.0 million, compared to RMB 362.6 million in the same period last year[9] - The net cash generated from operating activities for Q1 2024 was RMB 329.0 million, compared to RMB 362.6 million in Q1 2023 and RMB 1,733.6 million in Q4 2023[27] Capital Expenditure - The capital expenditure for Q1 2024 was RMB 114.6 million, compared to RMB 79.6 million in Q1 2023 and RMB 131.2 million in Q4 2023[28] Product Development - The flagship game "Jian Wang 3" continues to show resilience, with the mobile version "Jian Wang 3 Wu Jie" entering multiple rounds of testing, expected to launch in June 2024[29]