Kingsoft Office(SH:688111) Xin Lang Cai Jing·2025-09-11 01:38Core Viewpoint - Kingsoft Office is experiencing growth, but the momentum is slowing down, and the reduction in advance payments raises concerns about its future growth potential [1] Financial Performance - In the first half of the year, Kingsoft Office achieved revenue of 2.657 billion yuan, a year-on-year increase of 10.12%, and a net profit attributable to shareholders of 747 million yuan, up 3.57% [1] - The company's revenue growth rate has been declining, with recent figures showing a significant drop in advance payments, from a peak of 2.892 billion yuan to 1.873 billion yuan [2][3] Business Segments - Kingsoft Office operates in two main business areas: - 2C personal business, where users can download WPS Office or use it online for free, with a revenue of 1.748 billion yuan, growing 8.38% [3] - 2B institutional business, providing WPS 365 services to organizational clients, with a revenue of 308 million yuan, growing 62.27% [4] User Engagement - As of June 30, the global monthly active devices for WPS Office reached 651 million, a year-on-year increase of 8.56%, with PC version active devices at 305 million, up 12.29% [3] - The cumulative annual paid personal user count reached 41.79 million, growing 9.54%, but the growth rate is slowing down [3] Stock Incentives and Management Expectations - The company announced a stock incentive plan with performance targets set lower than the expected growth for 2024, raising questions about management's expectations for future performance [1][4] - The stock incentive plan includes a target of 10% annual revenue growth from 2025 to 2029, with a trigger value of 8% [4] Shareholder Concerns - There are concerns regarding potential conflicts of interest as the stock incentive conditions may favor management at the expense of minority shareholders [4] - Recent share transfers by major shareholders at a discount raise further questions about the company's governance and shareholder value [5]