KINGSOFT(HK:03888) Feng Huang Wang Cai Jing·2026-01-07 07:33Core Insights - The return of the game "Goose Duck" in China has generated significant social media buzz, with over 20 million pre-registrations and billions of views on related topics, indicating its potential as a new "social currency" for Generation Z [1][2][4] Group 1: Game Performance and Market Impact - "Goose Duck" has achieved a remarkable presence on social media, with its pre-registration surpassing 20 million and related topics trending on platforms like Weibo, accumulating hundreds of millions of views [2][3] - The game has strong social attributes, with nearly 80% of its players aged 18-25, highlighting its appeal among younger audiences [4] - Despite initial excitement, there have been complaints regarding server issues and user experience, indicating potential operational challenges [3][4] Group 2: Financial Performance of Kingsoft - Kingsoft's financial performance has been under pressure, with revenue and net profit declining in the first three quarters of 2025, showing a revenue drop of 8.34% to 7.065 billion yuan and a net profit decrease of 5.68% to 1.029 billion yuan [7][8] - The gaming segment has faced significant challenges, with revenue from network games dropping by 26.1% to 2.886 billion yuan, and a nearly 50% decline in the third quarter alone [7][8] - Increased marketing expenses, which rose by 55% year-on-year to 564 million yuan, have not translated into revenue growth, leading to a substantial decline in gaming income [7][8] Group 3: Strategic Challenges and Future Outlook - Kingsoft is transitioning from a short-term hit-driven model to a long-term IP-focused strategy, aiming to integrate games into users' daily lives [6][8] - The company faces a cycle of declining revenue from existing games while new titles have not met market expectations, raising concerns about future growth [8][9] - The CEO has acknowledged that the decline in revenue is primarily due to the aging of flagship games and the underperformance of new releases, alongside increased investments in AI and game development [8][9]