Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5][13] Core Views - The report indicates that despite a decline in the gaming business, the dual-driven trend of WPS BC is becoming increasingly evident, with expectations for revenue recovery following optimizations [5][6] - The company's Q3 2025 revenue was 2.419 billion yuan, a year-on-year decline of 17.0%, with a net profit of 213 million yuan, down 48.5% year-on-year, primarily due to underperformance in the gaming sector and increased marketing expenses [6][7] - WPS revenue reached 1.52 billion yuan, growing 26.1% year-on-year, with significant growth in both personal and enterprise segments, indicating a potential for becoming a key player in the B-end market [6][7] Financial Summary and Valuation Metrics - Revenue projections for 2025 are estimated at 9.909 billion yuan, with a year-on-year change of -4.0% [9] - Net profit for 2025 is forecasted at 1.4 billion yuan, reflecting a year-on-year decrease of 9.8% [9] - The company's gross margin is expected to be 80.9% in 2025, with a net margin of 14.1% [9] - The P/E ratio for 2025 is projected at 28.0 times, with a gradual decrease to 16.1 times by 2027 [9]

Core Insights - Xiaomi Group recently reported strong financial results, while Kingsoft Corporation, led by billionaire Lei Jun, delivered disappointing financial performance [2] Financial Performance - In Q3, Kingsoft's revenue decreased by 17% year-on-year to 2.419 billion yuan, with net profit nearly halved to 213 million yuan [3][5] - For the first three quarters of the year, Kingsoft's revenue fell by 6.12% to 7.065 billion yuan, and net profit decreased by 5.58% to 1.029 billion yuan [5] - The decline in performance is attributed to a significant drop in revenue from the gaming segment, which fell by 47% to 899 million yuan, accounting for 37% of total revenue [6][5] Gaming Business Challenges - The poor performance of the gaming segment is linked to the underwhelming launch of the game "Limitless Machine," which saw a drastic drop in daily active users from over 130,000 to around 1,000 [3][21] - Kingsoft's management acknowledged operational missteps during the game's launch, which contributed to its disappointing performance [3][23] Office Software Performance - In contrast, Kingsoft's office software and services segment showed resilience, generating revenue of 1.521 billion yuan, a 26% increase year-on-year [4][12] - The global monthly active devices for WPS Office reached 669 million, reflecting a 9% year-on-year growth [11] Strategic Focus - Kingsoft is focusing on enhancing its core competencies, with an emphasis on AI applications and internationalization as strategic priorities [14] - The company is also investing in AI product development, which has contributed to the growth of WPS 365 and personal business segments [13] Historical Context - Kingsoft's growth can be traced back to its founders, with Lei Jun and Qiu Bojun playing pivotal roles in its development [30] - The company has faced various challenges over the years, including competition from Microsoft and the need to diversify its offerings [34][37] Future Outlook - Kingsoft plans to continue optimizing its gaming offerings and maintaining user engagement for existing titles while preparing for the launch of international IP games [28][29] - The company’s stock performance indicates a market capitalization of 141.6 billion yuan for Kingsoft Office, significantly surpassing the parent company’s market cap of 40.1 billion HKD [40]

Core Viewpoint - Kingsoft's core business is showing a diverging trend, with significant revenue decline in its gaming segment while the office software segment experiences growth [2][5]. Financial Performance - For Q3 ending September 30, 2025, Kingsoft reported total revenue of 2.419 billion RMB, a 17% year-on-year decrease [3]. - Gross profit fell by 21% to 1.944 billion RMB, and net profit nearly halved, down 48% to 213 million RMB [2][3]. - Office software and services revenue was 1.521 billion RMB, up 26% year-on-year, accounting for 63% of total revenue [3][5]. - Network gaming and other revenues plummeted by 47% to 898 million RMB, making up 37% of total revenue [2][3]. Office Software Segment - The growth in office software revenue is attributed to the performance of WPS software, WPS 365, and personal business, driven by increased demand from private enterprises and local state-owned enterprises [5]. - As of September 30, WPS Office had 669 million monthly active devices, an 8.83% increase year-on-year [5]. - The number of paid personal users reached 41.79 million, a 10% increase from the previous year [5]. AI and R&D Investment - Kingsoft is focusing on AI development, with R&D expenses rising by 18.48% to 1.495 billion RMB, representing 35.77% of revenue [6]. - The company has launched WPS AI 3.0 and is enhancing its product offerings in AI, collaboration, and internationalization [5][6]. Gaming Segment Challenges - The gaming segment's revenue dropped significantly, with marketing expenses for Q3 reaching 564 million RMB, a 55% year-on-year increase [10]. - The decline in gaming revenue is attributed to reduced contributions from existing games and the slow market establishment of new titles [10]. - The performance of the game "Limitless Mecha" has been disappointing, with a significant drop in player engagement shortly after launch [10][12]. Competitive Landscape - The office software market is highly competitive, with products like Microsoft Office, ByteDance's Feishu, and Tencent Docs competing directly with WPS Office [8]. - Balancing commercialization and user experience remains a critical challenge for Kingsoft in the face of intense competition [8].

尽管办公软件业务表现亮眼，但金山软件仍受游戏业务疲软所拖累。 11月20日，香港恒生科技指数跌幅扩大至1%，其中金山软件（03888.HK）一度跌超11%。截至早盘收盘，下跌9.51%，报27.80港元。 昨日，金山软件发布2025年第三季度业绩公告称，营收为人民币 24.2 亿元，环比增长 5%，同比下降 17%；归母净利润为2.13亿元，环比下降60%，同比下 降48%；每股基本盈利为0.15元，环比下降62%，同比下降52%。经营活动产生的现金流量净额为4.94亿元，同比下降64%。 | 財務摘要 | | | | | | | --- | --- | --- | --- | --- | --- | | | | 截至下列日期止三個月 | | | | | | 二零二五年 | 二零二四年 | 二零二五年 | 同比 | 環比 | | | 九月三十日 | 九月三十日 | 六月三十日 | 變動 | 變動 | | | 人民幣千元 | 人民幣千元 | 人民幣千元 | ማዕ | 00 | | | (未經審計) | (未經審計) | (未經審計) | | | | 收益 | 2,419,177 | 2,914,785 | 2, ...

金山软件首席执行官邹涛先生表示："第三季度，集团总收益人民币24.19亿元，同比下降17%，环比增 长5%。办公软件及服务业务表现稳健，得益于WPS软件业务的显著增长、WPS 365业务的快速增长及 WPS个人业务的稳健增长。网络游戏及其他业务下滑，主要由于若干现有游戏的收益贡献减少。新上 线游戏处于发展初期，仍在逐步建立市场影响力。 在办公软件及服务业务中，WPS个人业务通过AI新产品落地推广及海内外市场精细化运营，带动WPS AI月活、付费用户数及用户价值稳步提升。对于WPS 365业务，我们不断完善协作与AI条线产品，民营 企业及地方国企客户覆盖进展卓有成效，产品力和行业影响力持续提升。对于WPS软件业务，信创招 标进度加速。政务AI产品持续迭代，目前已在中央及地方党政机关落地推广，为信创客户数智化转型 保驾护航。 在网络游戏业务中，旗舰游戏《剑网3》于八月迎来十六周年，并于十月推出年度资料片，引入创新玩 法。二次元游戏《尘白禁区》依托长线内容更新与用户运营，稳固核心用户群体。科幻机甲游戏《解限 机》上线后持续调优玩法和运营模式，提升玩家体验。两款国际化IP游戏《鹅鸭杀》和《愤怒的小鸟》 预计在未来季度 ...

Core Insights - The 2025 Guangzhou Animation and Game Festival (AGF×CICF) successfully attracted over 450,000 attendees and featured more than 1,000 top brands and 7,000 IP-related products from October 2 to 5 [1] - Guangdong's six major "policy packages" aimed at promoting high-quality development in the cultural industry have received positive feedback from industry leaders, indicating a strong potential for the two-dimensional economy, particularly in gaming and animation, to become a new growth engine for the Guangdong-Hong Kong-Macao Greater Bay Area [3][17] Policy Support - The "policy packages" include 87 specific measures across six sectors, including film, performing arts, animation, online games, e-sports, and online audio-visual content, providing substantial support for the cultural industry [3][19] - Local governments are also introducing complementary policies to support high-quality development in the cultural industry, such as Guangzhou's Huangpu District offering up to 20 million yuan in subsidies for qualifying units [28][30] Industry Events - Multiple animation and gaming exhibitions were held during the National Day holiday, serving as platforms for companies to showcase their latest products and stimulate the holiday economy [6][12] - The AGF and CICF featured over 100 unique events, including the 22nd Golden Dragon Awards and various gaming competitions, with an exhibition area of 82,000 square meters [8][52] Economic Impact - The events not only provide immersive experiences for the Z generation but also effectively stimulate the holiday economy and cultural tourism resources [6][10] - The integration of various cultural elements, such as traditional culture and modern gaming, is seen as a way to enhance consumer engagement and drive economic growth [25][42] Industry Collaboration - Experts emphasize the importance of establishing a unified talent qualification recognition system and a collaborative development fund for the animation and gaming industries across the Greater Bay Area [38][40] - The need for cross-industry collaboration is highlighted, with suggestions to integrate high-quality IP into local theme parks and cultural sites to enhance the cultural tourism experience [40][42] International Expansion - The "policy packages" and local measures are designed to encourage cultural products and enterprises to expand internationally, with a focus on leveraging the Greater Bay Area's advantages for global outreach [46][50] - Successful examples of international expansion include the game "Ningchao," which topped the App Store charts in multiple countries and regions shortly after its release [48]

Core Viewpoint - The AGF Asia Game Expo held in Guangzhou showcased major gaming companies and highlighted the potential of Chinese game developers to create and market sci-fi games internationally, challenging stereotypes about domestic game themes [1] Group 1: Event Overview - The AGF Asia Game Expo took place from October 2 to 5 at the Poly World Trade Center in Guangzhou, alongside the CICF China International Comic Festival and Animation Game Exhibition [1] - Major gaming companies such as Tencent Games, Supercell, NetEase Games, Shengqu Games, 37 Interactive Entertainment, and Xishanju participated in the event, presenting numerous popular game IPs [1] Group 2: Industry Insights - Xishanju's marketing head, Zhan Zaozao, expressed the ambition to promote the domestic sci-fi mech game "Jiexianji" to break the stereotype that Chinese games are predominantly martial arts-themed [1] - The company aims to demonstrate China's capability in independently developing sci-fi games and successfully entering international markets [1]

Core Viewpoint - The AGF Asia Game Expo held in Guangzhou showcased a variety of gaming companies and aimed to break stereotypes about Chinese games, particularly through the promotion of the sci-fi mech game "Jiexianji" by Xishanju [1] Group 1: Event Overview - The AGF Asia Game Expo took place from October 2 to 5 at the Poly World Trade Center in Guangzhou, alongside the CICF China International Comic Festival [1] - Major gaming companies such as Tencent Games, Supercell, NetEase Games, Shengqu Games, 37 Interactive Entertainment, and Xishanju participated in the event [1] Group 2: Industry Insights - Xishanju's marketing head, Zhan Zaozao, expressed the intention to use "Jiexianji" to challenge the stereotype that Chinese games are predominantly martial arts-themed [1] - The company aims to demonstrate China's capability in independently developing sci-fi games and to expand their reach internationally [1]

Core Insights - The article highlights the debut of "Jiexianji," the first self-developed sci-fi mech game IP from Xishanju, at the AGF Asia Game Expo, showcasing its global ambitions and innovative gameplay [1][2]. Group 1: Game Launch and Features - The S1 season "Blue Core Arc Light" of "Jiexianji" has recently launched, introducing new mech units and gameplay features [2]. - A life-sized statue of "Longyuan" attracted significant attention at the expo, enhancing the visual appeal of the game [2]. - Xishanju set up a simulated cockpit for players to experience immersive mech combat, along with high-performance computers and professional controllers for gameplay [2]. Group 2: Community Engagement and Cultural Impact - The AGF event provided a valuable offline social platform for ACG enthusiasts, allowing "Jiexianji" to connect with fans of mech games [2][3]. - Xishanju aims to enhance player experiences through cross-industry collaborations, focusing on cultural, technological, and industrial synergies [3]. - The company showcased various mech models and merchandise, which received positive feedback from attendees, indicating a growing interest in the IP [3].

Core Insights - The AGF Asia Game Fair in Guangzhou is a significant cultural event, featuring over 80,000 square meters of exhibition space, hundreds of activities, and nearly a thousand top brands, with an expected participation of over 800,000 players [1] - The event showcases the vitality and attractiveness of the Guangdong gaming industry, supported by local government policies aimed at promoting the development of quality games [1][8] - Major gaming companies, including Tencent, NetEase, and 37 Interactive Entertainment, participated, presenting numerous popular IPs and engaging players with innovative experiences [1][3] Industry Trends - The event reflects a growing trend of integrating traditional culture with digital gaming, as seen in the interactive experiences that educate players about cultural heritage [4][5] - The "谷子经济" (Guziko Economy) is emerging as a strong segment within the secondary economy, with projections indicating a market size of 168.9 billion yuan in 2024, representing a 41% year-on-year growth [7] - Cross-industry collaborations are on the rise, with brands like Luckin Coffee and Merinda launching themed pop-up stores and co-branded products, enhancing the fusion of gaming, anime, and consumer experiences [7] Company Strategies - Companies are leveraging government policies to enhance game development, focusing on AI and digital innovation to improve content quality and operational efficiency [8] - 37 Interactive Entertainment is emphasizing the creation of immersive experiences that blend entertainment with cultural education, as demonstrated by their interactive exhibits [4][8] - Kuro Game is committed to developing high-quality games and expanding its IP through online and offline channels, aiming to create a positive cycle of consumption that drives both gaming and cultural tourism [9]