Guan Cha Zhe Wang·2025-11-20 05:06Core Viewpoint - Kingsoft's performance is significantly impacted by the weakness in its gaming business, despite strong results in its office software segment [1][3]. Financial Performance - Kingsoft reported Q3 2025 revenue of RMB 2.42 billion, a 5% increase quarter-on-quarter but a 17% decrease year-on-year [3][4]. - The net profit attributable to shareholders was RMB 213 million, down 60% quarter-on-quarter and 48% year-on-year [3][4]. - Basic earnings per share were RMB 0.15, reflecting a 62% decline quarter-on-quarter and a 52% decline year-on-year [3][4]. - Operating cash flow was RMB 494 million, a 64% decrease year-on-year [3]. Business Segments - Office software revenue reached RMB 1.52 billion, showing a 26% year-on-year increase and a 12% quarter-on-quarter increase, driven by growth in WPS software and services [4][5]. - The gaming segment generated RMB 897 million, a 47% year-on-year decline and a 6% quarter-on-quarter decline, now accounting for 37% of total revenue [5][6]. Marketing and Expenses - Sales and distribution expenses for Q3 were RMB 564 million, up 55% year-on-year and 33% quarter-on-quarter, primarily due to increased marketing efforts for gaming [5][6]. Game Performance - The flagship game "Jian Wang 3" has been operational for over 16 years but is facing significant competition and operational issues, leading to a decline in revenue [6][7]. - The new game "Jie Xian Ji" launched on Steam showed initial promise but has since seen a drastic drop in player engagement, with peak online players falling below 5,000 [9][11].