Core Viewpoint - Kingsoft Office's stock price has shown significant growth this year, with a year-to-date increase of 18.36% and a recent surge of 12.35% over the past five trading days, indicating strong market interest and performance [1]. Financial Performance - For the period from January to September 2025, Kingsoft Office reported a revenue of 4.178 billion yuan, reflecting a year-on-year growth of 15.21%. The net profit attributable to shareholders was 1.178 billion yuan, which represents a year-on-year increase of 13.32% [2]. - Since its A-share listing, Kingsoft Office has distributed a total of 1.897 billion yuan in dividends, with 1.159 billion yuan distributed over the past three years [3]. Shareholder Information - As of September 30, 2025, the number of shareholders for Kingsoft Office reached 34,800, an increase of 14.09% compared to the previous period. The average number of circulating shares per person decreased by 12.35% to 13,304 shares [2]. - The top ten circulating shareholders include significant institutional investors, with Hong Kong Central Clearing Limited holding 10.2761 million shares, a decrease of 6.924 million shares from the previous period [3].

消息面上，工信部近日印发的《推动工业互联网平台高质量发展行动方案（2026—2028年）》，标志着我国工业 互联网发展进入全新阶段。文件首次系统性提出"工业智能体"概念，明确AI将深度嵌入工业全链条——从生产控 制的判别式AI（如设备故障预警），到产品设计、工艺优化的生成式AI（如AI智能生成工艺参数），彻底颠覆传 统制造业依赖"老师傅经验"的模式。 重点布局国产AI产业链的科创人工智能ETF华宝（589520）继昨日创历史新高后，今日（1月14日）延续猛烈涨 势，场内价格盘中涨超3.6%，现涨3.37%，开盘不足一小时，实时成交额超4800万元，交投火热！ 值得关注的是，科创人工智能ETF华宝（589520）近2日连续吸金，合计金额1.02亿元，反映资金看好国产AI产业 链后市表现，借道ETF大举抢筹！ | 序号 | 名称 | 涨跌幅 | 两日图 | 申万一级行业 | 申万二级行业 | 申万三级行业 | 总市值 | 成交额 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1 | 星外科技-U | 14.61% | 1m | 计算机 | ...

Core Viewpoint - The total margin balance of the Sci-Tech Innovation Board reached 288.907 billion yuan on January 13, showing an increase of 1.127 billion yuan compared to the previous trading day [1] Group 1: Margin Balance - The financing balance amounted to 287.888 billion yuan, increasing by 1.178 billion yuan from the previous trading day [1] - The margin trading balance decreased to 10.19 billion yuan, down by 0.051 billion yuan from the previous trading day [1] Group 2: Individual Stock Performance - On January 13, 311 stocks on the Sci-Tech Innovation Board experienced net financing inflows, with 10 stocks having net inflows exceeding 100 million yuan [1] - Kingsoft Office topped the list with a net financing inflow of 276 million yuan [1] - Other notable stocks with significant net financing inflows include Chengdu Xian Dao, Zhongke Xingtu, Zhongxin International, Rongchang Bio, Western Superconducting, and Green Harmony [1]

科创创业人工智能ETF景顺（159142）紧密跟踪科创创业AI指数（932456），20%涨跌停限制。成分股横跨科创板、创业板，其最新前十大权重股分别为中 际旭创、新易盛、寒武纪-U、澜起科技、金山办公、芯原股份、昆仑万维、协创数据、石头科技、润泽科技。 中信建投证券指出，当前AI产业动态密集，海外xAI、Anthropic陆续融资，国内"人工智能+制造政策"推出，智谱和MiniMax上市大涨，后续DeepSeek-V4推 出有望引发新一轮AI应用热潮。随着模型能力不断提升，尤其是推理与长窗口成本的显著下降，AI下游应用场景正加速进入商业化验证阶段，重点关注搜 索&营销、Coding、多模态、Agent、AI for Science领域，相关公司商业化进程有望进一步加速。 1月14日，指数走强，创业板指拉升涨逾1%。 AI应用、阿里MCP等方向涨幅居前， 国泰海通证券指出，应用与算力轮动，算力之后有应用，本轮AI产业革命引发全球共振行情。展望2026年，有望看到AI应用从可用到好用，与多元化商业 模式落地，AI应用有望成为2026年AI产业行情核心主线。 科创创业人工智能ETF景顺（159142）盘中走强，截 ...

Group 1 - The Ministry of Industry and Information Technology (MIIT) issued the "Action Plan for Promoting High-Quality Development of Industrial Internet Platforms (2026-2028)", which aims to guide platform and manufacturing companies to co-build an open-source ecosystem and enhance compatibility with open-source operating systems like HarmonyOS [1] - Pacific Securities highlighted that industrial software is the foundation for industrial AI applications, predicting a compound annual growth rate (CAGR) of 41.4% for the AI + industrial software segment in China from 2024 to 2029, significantly outpacing the 19.3% CAGR of core industrial software during the same period [1] - By 2029, the penetration rate of AI + industrial software is expected to increase from 9% in 2024 to 22%, indicating a strong growth trajectory for the sector [1] Group 2 - As of January 14, 2026, the CSI Innovation and Entrepreneurship Artificial Intelligence Index (932456) rose by 2.5%, with notable increases in constituent stocks such as Dongfang Guoxin (up 9.50%), Hehe Information (up 9.28%), and Runze Technology (up 6.08%) [1] - The CSI Innovation and Entrepreneurship Artificial Intelligence ETF (588410) increased by 1.61%, with the latest price reported at 1.14 yuan [1] - The CSI Innovation and Entrepreneurship Artificial Intelligence Index comprises 50 listed companies involved in providing foundational resources, technology, and application support for artificial intelligence, reflecting the overall performance of AI-themed stocks [2]

Group 1 - The AI application sector continues to strengthen, with the CSI Software Service Index rising by 1.91% as of January 14, 2026, and notable stocks like Shiji Information hitting the daily limit up of 10% [1] - The Software ETF Index has seen a significant increase of 11.02% over the past week, reaching a new high of 293 million yuan [1] - The National Bureau of Statistics is advancing the establishment of a registration system for data property rights to promote the circulation and utilization of data elements, aiming to create benchmark data sets with international influence by the end of 2026 [1] Group 2 - As of December 31, 2025, the top ten weighted stocks in the CSI Software Service Index account for 60.89% of the index, including companies like iFLYTEK and Kingsoft [2] - The Software ETF Index closely tracks the CSI Software Service Index, providing opportunities for off-market investors through linked funds [2]

Group 1 - The financing balance of the Sci-Tech Innovation Board increased by 1.178 billion yuan compared to the previous day, with 24 stocks seeing an increase of over 50 million yuan in financing balance [1] - As of January 13, the total margin financing balance of the Sci-Tech Innovation Board reached 288.907 billion yuan, an increase of 1.128 billion yuan from the previous trading day [1] - Among the stocks on the Sci-Tech Innovation Board, 501 had a financing balance exceeding 100 million yuan, with 60 stocks having a balance over 1 billion yuan [1] Group 2 - The stock with the highest net financing purchase was Kingsoft Office, with a latest financing balance of 3.161 billion yuan, an increase of 276 million yuan from the previous day [2] - Other notable stocks with significant net purchases included Chengdu Xian Dao and Zhongke Star Map, with net purchases of 207 million yuan and 171 million yuan respectively [2] - Stocks favored by financing customers showed an average increase of 3.41%, with Rongchang Biology, Tianzhihang, and Guangyun Technology leading the gains at 20.00%, 16.62%, and 16.42% respectively [2] Group 3 - The stock with the highest financing balance as a percentage of market capitalization was Changying Tong, with a financing balance of 517 million yuan, accounting for 7.35% of its market value [2] - Other stocks with high financing balance ratios included Rongbai Technology, Kangzhong Medical, and Tongyuan Environment, with ratios of 7.08%, 6.09%, and 5.60% respectively [2] - The industries attracting financing customers were concentrated in computer, pharmaceutical biology, and electronics, with 6, 4, and 4 stocks respectively [2]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Software and IT Services - **Growth Forecast**: The sector is expected to achieve a revenue growth of **12% YoY in 2026E**, slightly down from **13% YoY in 2025E** due to macroeconomic factors and soft demand in various verticals [18][20]. Core Insights - **AI Monetization**: Accelerated AI monetization is anticipated to drive growth, alongside trends in software import substitution [18][20]. - **Employee Count**: A **5% YoY decline** in employee numbers was observed in 2025, with expectations for a **1% YoY increase** in 2026, leading to an average **4.6 percentage points (ppts)** improvement in operating profit margin (OPM) [2]. - **Valuation**: Current average trading at **5.4x 12-month forward P/S**, which is **1 standard deviation (SD) below historical averages**, indicating an undemanding sector valuation despite solid share price performance [13][14]. Company-Specific Insights - **Top Picks**: - **Kingdee**: Expected to benefit from resilient top-line growth and improved profitability [3][8]. - **Meitu**: Strong earnings growth anticipated due to rising subscription revenue and productivity tools expansion [3][8]. - **Kingsoft Office**: Upgraded to Buy due to better growth outlook driven by WPS 365 and import substitution trends [3][8]. - **Downgrades**: - **Kingsoft Corp** downgraded to Neutral due to weaker game business growth [3]. Financial Performance - **2025 Recap**: Share prices of covered software companies rose by **16% on average** in 2025, underperforming the MSCI China Index which rose by **23%** [11][12]. - **Revenue Estimates**: Revenue forecasts for 2025-2027 have been revised down by **2% on average** for 16 companies under coverage [10]. Sector Spending Breakdown - **Major Sectors**: Software spending is concentrated in manufacturing & natural resources (28%), financials (25%), government (14%), and communications/media/services (12%), collectively accounting for **75% of total software spending in 2026E** [20][21]. Risks and Cautions - **Cybersecurity and Property Software**: Cautious outlook on cybersecurity and property software due to muted demand and declining property sales [1][48]. - **SOE Revenue Growth**: SOE revenue growth was **1.0% YoY** in 11M25, indicating stable demand for software despite slight declines in growth rates [24][25]. Conclusion - The China software and IT services sector is poised for solid growth driven by AI and import substitution, but faces challenges from macroeconomic volatility and sector-specific demand issues. Key companies like Kingdee, Meitu, and Kingsoft Office are highlighted as strong investment opportunities, while caution is advised in areas like cybersecurity and property software.

Summary of Kingsoft Office (A) Conference Call Company Overview - **Company**: Kingsoft Office - **Sector**: PC Software - **Main Product**: WPS Office series, an alternative to Microsoft Office, compatible with various operating systems including Windows, Linux, MacOS, Android, iOS, and Harmony OS - **Monthly Active Devices**: 669 million as of Q3 2025 [11] Key Points Growth Outlook - **Upgrade to Buy**: Kingsoft Office's rating upgraded from Neutral to Buy due to a more positive growth outlook driven by: 1. Rapid growth of WPS 365 with client base expansion, including privately-owned enterprises (POEs) and local state-owned enterprises (SOEs) [1] 2. Recovery in WPS to-C business revenue with accelerated AI monetization domestically and strong overseas user growth [1] 3. Promising growth in WPS software business with increasing Xinchuang (import substitution) opportunities [1] Financial Estimates - **Earnings Estimates**: FY26-27E earnings estimates raised by 2% due to stronger-than-expected growth in WPS 365 and WPS software businesses [1] - **Price Objective**: Adjusted DCF-based price objective to RMB 408 from RMB 363, trading at 55x 12-month forward P/E, which is 1 standard deviation below its historical average [1] - **Revenue Growth**: Expected revenue CAGR of 20% from FY25-27E, compared to 14% for global SaaS peers [1][22] WPS 365 and Enterprise Adoption - **WPS 365 Upgrades**: Recent upgrades to a one-stop AI collaborative office platform are expected to accelerate enterprise adoption, enhancing collaboration and document management capabilities [2] - **Total Addressable Market (TAM)**: Estimated to grow at a CAGR of 31% from 2024-2030 for domestic office software among Chinese enterprises, excluding SMEs [14][15] Revenue Breakdown and Growth Projections - **Revenue Segmentation**: - WPS to-C (domestic) and WPS to-C (overseas) are expected to grow significantly, with overseas growth projected at 30-40% YoY [3][16] - WPS 365 is anticipated to contribute increasingly to total revenue, with a forecasted revenue breakdown showing a rise in contribution from 3% in FY23 to 19% by FY27 [20] - **Financial Metrics**: - FY26E revenue projected at RMB 7,222 million, with net income expected to reach RMB 2,612 million [4][34] Competitive Positioning - **Market Position**: WPS 365 is well-positioned against competitors due to its cloud-based architecture, which mitigates software piracy and integrates various productivity tools [14] - **User Acquisition**: The mobile-first distribution strategy is expected to enhance user acquisition and conversion rates, particularly in emerging markets [16] Valuation Metrics - **Valuation Comparison**: Kingsoft Office's implied FY26E Price/FCF of 45x is 50% higher than leading global SaaS companies, justified by its superior growth outlook and stronger free cash flow margin [1][22] - **P/E Ratio**: Currently trading at 58x, compared to a historical mean of 100x [27] Risks and Considerations - **Market Competition**: The competitive landscape in the office software market remains intense, with ongoing innovations required to maintain market share [12] - **Economic Factors**: Potential economic fluctuations could impact growth rates and user adoption [12] Conclusion Kingsoft Office is positioned for significant growth driven by its innovative WPS 365 platform and expanding market opportunities. The company's financial outlook is positive, supported by strong revenue growth projections and a favorable valuation compared to peers.

Group 1 - The AI application sector is showing strong performance, with rapid commercialization and increasing market interest across various subfields, particularly in AI marketing and AI healthcare [1] - Significant companies in the AI marketing space include BlueFocus, Liou Co., Tianxiaxiu, and Zhidema, among others [2] - In the AI healthcare sector, notable companies include Xinganjiang, Dian Diagnostics, Hongbo Medical, and Meinian Health [2] Group 2 - The AI transportation sector features companies like Desay SV, Zhongke Chuangda, and Siwei Tuxin [4] - In the AI office segment, key players include Kingsoft Office, Foxit Software, and Yonyou Network [4] - The AI finance sector is represented by companies such as Dongfang Caifu and Tonghuashun [4] Group 3 - The AI education field includes significant companies like New Oriental and iFLYTEK [4] - AI intelligent agents are represented by companies such as Kunlun Wanwei and Nansheng Co. [4]