Zhi Tong Cai Jing·2025-11-19 09:08Core Insights - Kingsoft Software (03888) reported Q3 2025 earnings with total revenue of approximately RMB 2.419 billion, a year-on-year decrease of 17% but a quarter-on-quarter increase of 5% [1] - Operating profit was around RMB 277 million, down 76% year-on-year and down 28% quarter-on-quarter [1] - Net profit attributable to shareholders was approximately RMB 213 million, a decrease of 48% year-on-year and a decrease of 60% quarter-on-quarter, with basic earnings per share of RMB 0.15 [1] Business Performance - The company focused on its core business, emphasizing AI, collaboration, and internationalization as strategic priorities [1] - The office software and services segment showed stable performance, driven by significant growth in WPS software, rapid growth in WPS 365, and steady growth in WPS personal business [2] - The gaming and other businesses experienced a decline due to reduced revenue contributions from existing games, while newly launched games are still in the early stages of market establishment [1][2] Office Software and Services - WPS personal business benefited from the rollout of new AI products and refined operations in domestic and international markets, leading to steady increases in monthly active users, paid users, and user value [2] - WPS 365 business is continuously improving collaboration and AI product lines, with effective coverage of private enterprises and local state-owned enterprises [2] - Government AI products are being iterated and have been promoted in central and local government agencies, supporting the digital transformation of clients [2] Gaming Business - The flagship game "Jian Wang 3" celebrated its 16th anniversary in August and launched an annual expansion pack in October, introducing innovative gameplay [2] - The anime game "Chen Bai Jin Qu" is maintaining its core user base through long-term content updates and user operations [2] - The sci-fi mech game "Jie Xian Ji" continues to optimize gameplay and operational models post-launch to enhance player experience [2] - Two international IP games, "Goose Goose Duck" and "Angry Birds," are expected to launch in the domestic market in upcoming quarters [2] Future Outlook - Kingsoft Software plans to continue focusing on its core strategy of AI, collaboration, and internationalization, leveraging its core product matrix to meet the needs of individual users and large enterprises [2] - The gaming business will concentrate on developing high-quality content and global distribution, enhancing the longevity of classic IPs, and promoting the growth of new categories for sustainable development [2]