金山办公(688111) - 2025 Q2 - 季度财报

Definitions Company Profile and Key Financial Indicators Company Overview This chapter provides Beijing Kingsoft Office Software Co., Ltd.'s basic corporate information, including its name, legal representative, addresses, and contact details Company Basic Information | Item | Information | | :--- | :--- | | Company Chinese Name | 北京金山办公软件股份有限公司 | | Company Abbreviation | Kingsoft Office | | Legal Representative | Zou Tao | | Registered Address | 2nd Floor, No. 33 Xiaoying West Road, Haidian District, Beijing | | Office Address | Kingsoft Software Building, No. 33 Xiaoying West Road, Haidian District, Beijing | | Company Website | www.wps.cn | Key Accounting Data and Financial Indicators In H1 2025, the company achieved 2.657 billion Yuan revenue (+10.12%) and 747 million Yuan net profit (+3.57%), reflecting strong operational quality and R&D commitment Key Accounting Data (Jan-Jun 2025) | Key Accounting Data | Current Reporting Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,657,121,733.79 | 2,412,993,928.06 | 10.12% | | Net Profit Attributable to Shareholders of Listed Company | 747,204,516.37 | 721,437,815.34 | 3.57% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | 727,320,191.45 | 687,649,317.05 | 5.77% | | Net Cash Flow from Operating Activities | 738,347,612.83 | 628,328,299.09 | 17.51% | | | End of Current Reporting Period (Yuan) | End of Prior Year (Yuan) | Period-end vs. Prior Year-end Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 11,636,356,266.29 | 11,355,557,559.61 | 2.47% | | Total Assets | 16,426,714,814.02 | 15,912,888,756.23 | 3.23% | Key Financial Indicators (Jan-Jun 2025) | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 1.62 | 1.56 | 3.85% | | Diluted Earnings Per Share (Yuan/share) | 1.61 | 1.56 | 3.21% | | Weighted Average Return on Net Assets (%) | 6.35% | 7.03% | Decreased by 0.68 percentage points | | R&D Investment as Percentage of Operating Revenue (%) | 36.07% | 33.47% | Increased by 2.60 percentage points | - During the reporting period, the company's non-recurring gains and losses totaled 19.88 million Yuan, primarily from changes in fair value of financial assets, government subsidies, and other non-operating income and expenses[22] - Excluding the impact of share-based payment expenses, the company's net profit for the first half of 2025 was 826 million Yuan, a 1.88% decrease compared to 842 million Yuan in the prior period[24] Management Discussion and Analysis Industry and Main Business Overview As a leading domestic office software provider, the company's industry benefits from digital economy, AI, and cloud collaboration trends, with core products like WPS Office, WPS 365, and WPS AI serving global users through 'freemium' and subscription models - The office software industry is driven by digital economy, AI technology upgrades, and cloud collaboration trends, with the global market size projected to reach $29.51 billion by 2025 according to Statista[28][29][31] - As of June 2025, the company's WPS global monthly active devices reached 651 million, an 8.56% year-on-year increase, with PC MAU at 305 million (+12.29%) and mobile MAU at 346 million (+5.48%), solidifying its leading position in the domestic office software market[34] - The company's main business is divided into personal and institutional segments, with personal business offering WPS Personal, Kingsoft Docs, and WPS AI Office Assistant, while institutional business provides WPS 365, WPS AI Enterprise, and Government editions, forming comprehensive office solutions[36][39][40][42] - The company's personal business adopts a freemium model, while institutional business primarily generates revenue through annual or multi-year contracts for WPS 365 subscription services or software licenses[43][44][45] Discussion and Analysis of Operations In H1 2025, the company achieved robust growth with 2.657 billion Yuan revenue (+10.12%) and 747 million Yuan net profit (+3.57%), driven by its 'AI, Collaboration, Internationalization' strategy and WPS AI 3.0 H1 2025 Revenue by Business Segment | Business Segment | Revenue (Million Yuan) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | WPS Personal Business | 1,748.45 | 8.38% | | WPS 365 Business | 308.79 | 62.27% | | WPS Software Business | 541.61 | -2.08% | | Total Operating Revenue | 2,657.12 | 10.12% | - The company launched WPS AI 3.0, introducing 'WPS Lingxi,' a native Office AI agent, achieving deep integration of AI with office software through 'software AI-fication' and 'AI software-fication,' marking a shift from tool-based AI applications to collaborative intelligent agents[47][49] - For personal business, cumulative domestic annual paying individual users reached 41.79 million, a 9.54% year-on-year increase, with WPS AI monthly active users reaching 29.51 million, projected for rapid growth in the second half of the year[59] - WPS 365 business maintained high growth, adding notable enterprise clients such as China Unicom, China Three Gorges Corporation, and China Baowu, continuously enhancing its market influence[63] Analysis of Core Competencies The company's core competencies lie in its strong R&D, comprehensive product offerings, nationwide service network, and effective operational strategies, leveraging 37 years of R&D, a 36.07% R&D expense ratio, AI-integrated products, and a multi-platform ecosystem for user growth - The company demonstrates significant R&D advantages, with 959 million Yuan invested in R&D in H1 2025, accounting for 36.07% of revenue, and a team of 3,533 R&D employees, representing approximately 66% of total staff[67][90][95] - Product advantages include full platform coverage (Windows, Mac, Linux, iOS, Android, HarmonyOS), AI-powered intelligent collaboration, and deep localization for the domestic market, such as the 'Daoke' platform offering country-specific template resources[70][71] - The company boasts a nationwide service guarantee system, with product adaptations completed with over 400 ecosystem partners, providing localized and timely service responses for government and enterprise clients[72] Core Technology Overview | Technology Area | Core Technology Examples | Technology Level | | :--- | :--- | :--- | | Multi-platform Office | Multi-platform OS adaptation technology, unified kernel technology | Domestic leading | | Document Cloud and Security | Document encryption and permission control technology, data synchronization and secure storage technology | Domestic leading | | Mobile and Collaboration | Cloud-based mobile sharing technology, multi-platform collaborative editing technology | Internationally advanced/Domestic leading | | Intelligent Office | Large model training and inference optimization technology, training-inference integration technology | Domestic leading | Risk Factors The company faces risks from macroeconomic conditions, market competition, and the increasing demands on its strategic planning, internal control, and operational management as its business scales, potentially impacting its operations and profitability - The company notes that as its operating scale expands, higher demands are placed on strategic planning, organizational structure, internal control, and operational management, with the inability to continuously enhance management capabilities posing a significant risk[97] Financial Analysis of Key Operating Performance This chapter explains financial statement item changes, including an 18.70% increase in R&D expenses due to personnel and AI investments, significant shifts in investment cash flow from fixed deposit purchases, and a 50.94% rise in fixed assets due to the Wuhan park's construction completion Analysis of Major Financial Statement Item Changes (H1 2025 vs H1 2024) | Item | Change (%) | Main Reason | | :--- | :--- | :--- | | R&D Expenses | 18.70% | Increased personnel compensation and R&D AI investment | | Net Cash Flow from Operating Activities | 17.51% | Increased cash inflow from sales of goods and services | | Net Cash Flow from Investing Activities | Not applicable | Due to reduced new purchases of time deposits in the current period | | Net Cash Flow from Financing Activities | Not applicable | Due to cash dividends paid in the prior period | Analysis of Major Balance Sheet Item Changes (Period-end vs. Period-start) | Item Name | Change (%) | Main Reason | | :--- | :--- | :--- | | Fixed Assets | 50.94% | Due to the capitalization of construction in progress for the Wuhan park | | Construction in Progress | -100.00% | Due to the capitalization of construction in progress for the Wuhan park | | Employee Compensation Payable | -32.94% | Due to payment of prior year's annual bonus | | Other Payables | 332.18% | Due to unpaid 2024 dividends | Corporate Governance, Environment, and Society Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, the company completed the re-election of its Board of Directors and Supervisory Board, appointed new senior management, with Mr. Zou Tao elected Chairman and Mr. Zhang Qingyuan appointed General Manager - On June 4, 2025, the company completed the re-election of its Board of Directors and Supervisory Board, with Mr. Zou Tao elected Chairman and Mr. Zhang Qingyuan appointed General Manager[115][116] Equity Incentive Plans During the reporting period, the company launched its '2025 Restricted Stock Incentive Plan (Draft),' proposing to grant up to 3.46 million restricted shares, while also reviewing and implementing vesting conditions for prior incentive plans - In April 2025, the company approved the '2025 Restricted Stock Incentive Plan (Draft),' proposing to grant up to 3.46 million restricted shares, with 2.791 million shares initially granted to 198 incentive recipients on June 4[118] Social Responsibility and Rural Revitalization The company actively fulfills social responsibility by leveraging its technology for rural digitalization and education, investing 800,000 Yuan in rural revitalization and launching the 'Spring Bud Program' to support digital education transformation in western regions - The company invested 800,000 Yuan in rural revitalization, with its AI education project in Huize County, Yunnan, successfully selected as an 'Outstanding Smart Education Case for 2025' by the Ministry of Education[120] - In May 2025, the company launched the 'Spring Bud Program,' utilizing smart office technology to provide a comprehensive, localized, and intelligent education platform for users in western regions, promoting balanced regional educational development[121] Significant Matters Fulfillment of Commitments During the reporting period, the company's controlling shareholder, actual controller, related parties, and the company itself strictly fulfilled all commitments made during the IPO, including share lock-ups, non-compete clauses, and related party transaction regulations - The company's controlling shareholder, actual controller, directors, supervisors, and senior management strictly adhered to all commitments made since the IPO, including those regarding share lock-ups, non-compete clauses, and related party transactions[123] Major Litigation and Arbitration Matters The computer software copyright infringement case with Beijing Guanqun Information Technology Co., Ltd. is ongoing, with the plaintiff seeking retrial at the Supreme People's Court after initial dismissals, making the final outcome uncertain - In the computer software copyright infringement case with Beijing Guanqun Company, after the company won both the first and second instances, the opposing party has applied for a retrial with the Supreme People's Court, which has been accepted for review, making the case outcome uncertain[128] Share Changes and Shareholder Information Share Capital Changes During the reporting period, the company's total share capital increased by 653,650 shares to 463,179,293 shares due to the implementation of restricted stock incentive plans, primarily from partial vesting of 2021, 2022, and 2023 plans - During the reporting period, the company's total share capital increased by 653,650 shares due to the implementation of multiple restricted stock incentive plans, reaching 463,179,293 shares at period-end[135][136] Shareholder Information As of the end of the reporting period, the company had 30,514 common shareholders, with Kingsoft WPS Corporation Limited holding 51.47% as the controlling shareholder, and Hong Kong Securities Clearing Company Limited increasing its stake to 3.71% Top Ten Shareholders' Holdings as of Period-end | Shareholder Name | Shares Held at Period-end | Proportion (%) | | :--- | :--- | :--- | | Kingsoft WPS Corporation Limited | 238,387,351 | 51.47 | | Tianjin Qiwen Wuwei Enterprise Management Consulting Partnership | 17,932,710 | 3.87 | | Hong Kong Securities Clearing Company Limited | 17,200,078 | 3.71 | | China Merchants Bank - Huaxia SSE STAR Market 50 ETF | 12,807,676 | 2.77 | | Industrial and Commercial Bank of China - E Fund SSE STAR Market 50 ETF | 9,586,153 | 2.07 | Changes in Shareholdings of Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, some directors, supervisors, and senior management experienced changes in their shareholdings due to Kingsoft Software's capital changes, indirect reductions, or equity incentive vesting, with Directors Ge Ke and Zhang Qingyuan seeing decreases from indirect reductions - Some directors, supervisors, and senior management experienced changes in their shareholdings due to Kingsoft Software's capital changes, personal reductions, indirect reductions (via Qiwenv N-dimensional inquiry transfer), and equity incentive vesting[145][146] - During the reporting period, the company granted shares from the 2025 Restricted Stock Incentive Plan to Vice General Managers Bi Xiaocun, Luo Yan, and Wang Dong[147] Bond-Related Information Corporate Bond Information As of the end of the reporting period, the company had no outstanding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - During the reporting period, the company had no corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds[150] Financial Report Financial Statements This chapter presents unaudited consolidated and parent company financial statements, showing total assets increased to 16.427 billion Yuan, owner's equity to 11.636 billion Yuan, operating revenue of 2.657 billion Yuan, and net profit attributable to parent company shareholders of 747 million Yuan Consolidated Balance Sheet Summary (2025-06-30) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 16,426,714,814.02 | | Total Liabilities | 4,790,358,547.73 | | Owner's Equity Attributable to Parent Company | 11,636,356,266.29 | Consolidated Income Statement Summary (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 2,657,121,733.79 | | Total Operating Costs | 2,075,474,798.81 | | Of which: R&D Expenses | 958,530,996.22 | | Total Profit | 779,853,810.38 | | Net Profit Attributable to Parent Company Shareholders | 747,204,516.37 | Consolidated Cash Flow Statement Summary (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 738,347,612.83 | | Net Cash Flow from Investing Activities | -259,983,418.71 | | Net Cash Flow from Financing Activities | -297,832,047.78 | | Net Increase in Cash and Cash Equivalents | 181,315,873.91 | Notes to Consolidated Financial Statements This chapter details key consolidated financial statement items, including 1.079 billion Yuan in monetary funds, 1.606 billion Yuan in financial assets, 594 million Yuan in accounts receivable, and 54.81 million Yuan in bad debt provisions, with personal business contributing 1.748 billion Yuan to revenue and personnel compensation being the largest R&D expense at 753 million Yuan - As of period-end, the company's monetary funds totaled 1.079 billion Yuan, including 2.737 million Yuan in restricted performance bonds[333] - Accounts receivable had a book balance of 594 million Yuan, with approximately 60% being less than one year old; the company uses individual and portfolio (aging analysis) methods for bad debt provisions, with an ending balance of 54.81 million Yuan[338][340] H1 2025 Main Business Revenue Composition | Product Type | Operating Revenue (Yuan) | Operating Cost (Yuan) | | :--- | :--- | :--- | | WPS Personal Business | 1,748,454,415.66 | 339,006,957.35 | | WPS 365 Business | 308,795,330.57 | 26,181,102.32 | | WPS Software Business | 541,607,125.44 | 28,758,365.56 | | Other | 58,264,862.12 | 3,773,649.33 | H1 2025 R&D Expense Composition | Item | Amount (Yuan) | | :--- | :--- | | Personnel Compensation Expenses | 753,353,317.19 | | Lease and Service Fees | 65,082,727.06 | | Third-Party Service Fees | 43,893,407.53 | | Share-based Payment Expenses | 42,140,797.61 | | Other | 54,051,546.83 | | Total | 958,530,996.22 |