KINGSOFT(03888)2024-09-20 08:41Financial 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].