HONG KONG, Nov 21, 2023 – (ACN Newswire) – Kingsoft Corporation Limited (“Kingsoft” or the “Company”, HKEx stock code: 03888), a leading Chinese software and internet service company, has announced its unaudited quarterly results for the three months ended 30 September 2023 (“period under review”).

For the third quarter of 2023, Kingsoft’s total revenue reached approximately RMB2,059.7 million, representing an increase of 12% from the same period last year. In particular, revenue from the office software and services business amounted to approximately RMB1,098.3 million, representing a year-on-year increase of 9% and accounting for 53% of the total revenue, while revenue from the online games and others business amounted to approximately RMB961.4 million, representing a year-on-year increase of 15% and accounting for 47% of the total revenue. Gross profit amounted to approximately RMB1,676.9 million, representing a year-on-year increase of 14%. Operating profit amounted to approximately RMB376.1 million, representing a year-on-year increase of 13%.

Mr. Jun LEI, Chairman of the Company, commented, “In the third quarter, our core businesses have made steady progress. Focusing on the priority strategies of ‘artificial intelligence (“AI”)’ and ‘collaboration’, Kingsoft Office Group continuously optimized the AI performance of products. Online games business continued to iterate and upgrade self-developed premium games.”

Mr. Tao ZOU, Chief Executive Officer of the Company, added, “In the third quarter, the Group maintained stable financial performance. The total revenue was RMB2,059.7 million, representing a year-on-year increase of 12%, mainly due to the steady growth of JX3 Online and the sustainable growth in subscription businesses of both individuals and institutions from Kingsoft Office Group.”

BUSINESS REVIEW

Office Software and Services

For the third quarter of 2023, Revenue from the office software and services business increased 9% year-on-year and decreased 2% quarter-on-quarter to RMB1,098.3 million. The year-on-year increase was mainly due to the growth of Kingsoft Office Group’s domestic individual office subscription business and institutional subscription business partially offset by the decrease in revenue from domestic institutional licensing business. The slight quarter-on-quarter decrease was mainly due to the declined institutional licensing business, partially offset by the sustainable growth of the institutional subscription business.

During the period under review, for individual office subscription business, Kingsoft Office Group optimized its membership system, improved user experience across its products, and achieved steady increases in both the paying ratio and the average revenue per paying user. To enhance the AI performance of products, Kingsoft Office Group invested in the independent development of small and medium-sized models. We have reached strategic cooperation with Alibaba Cloud and iFlytek to jointly build a digital and intelligent service ecosystem.

Regarding institutional subscription business, Kingsoft Office Group actively promoted cloud integration and collaborative office progress for government and enterprises and developed high-quality digital office solutions to assist them in the digital transformation. Through WPS 365, Kingsoft Office Group continued to facilitate customers’ adoption of cloud and collaborative applications and made significant progress in expanding the user base in micro, small, and medium-sized enterprises. In order to strengthen regional service construction, Kingsoft Office Group organized a series of digital office activities in many cities in China and continuously expanded penetration in multiple industries including energy, education, and finance.

Online Games and Others

Revenue from the online games and other businesses for the third quarter of 2023 increased 15% year-on-year and decreased 10% quarter-on-quarter to RMB961.4 million. The year-on-year increase was mainly due to revenue growth from JX3 Online and revenue contribution from Snowbreak: Containment Zone launched in July, partially offset by decreased revenue from existing games. The quarter-on-quarter decrease was primarily attributed to the decline in revenue from JX3 Online, which had a relatively high base in the second quarter.

During the period under review, JX3 Online updated constantly and sustained a good atmosphere in the player community. In August, JX3 Online celebrated its 14th anniversary with players. In October, it launched the beta test with ultimate graphic quality and a new expansion pack, ensuring the ongoing success of the IP. World of Sword Origin was transformed from PC game through optimizing and upgrading the graphics and gameplay details while retaining traditional 2D graphics and classic gameplay. This mobile game was released in China in September and received recognition from players. We also optimized the anime game Snowbreak: Containment Zone on an ongoing basis. Looking forward, the mobile version of JX3 Ultimate has received the license approval and is expected to be launched in the first half of next year to achieve cross-platform operation.

Mr. Jun LEI concluded, “In the third quarter, we committed to refining and optimizing our core products and services. Going forward, Kingsoft Office Group will continue to focus on AI and collaboration and restructure office software, to provide users with intelligent product experience. Meanwhile, the online games business will continue to develop premium games and maintain long-term operations to better serve players. We will remain our focus on investing in the R&D of our core businesses, to enhance our core competencies and achieve high-quality and sustainable growth.”

About Kingsoft Corporation Limited

Kingsoft is a leading software and Internet services company based in China listed on the stock exchange of Hong Kong. It has three major subsidiaries including Kingsoft Office, Seasun and Kingsoft Shiyou. Following the implementation of its “mobile internet transformation” strategy, Kingsoft has completed the comprehensive transformation of its overall business and management models and formed a strategic platform with office software and interactive entertainment as the pillars and cloud services and AI as the new directions. The Company has more than 7,000 staff around the world and enjoys a large market share in China. For more information, please visit http://www.kingsoft.com.

Kingsoft Investor Relations:

Francie Lu  Tel: (86) 10 6292 7777  Email: ir@kingsoft.com

For further queries, please contact Wonderful Sky Financial Group:

Ada Di  Tel: (852) 3977 1838  Email: po@wsfg.com

Daphne Pang  Tel: (852) 9653 6911  Email: po@wsfg.com

Copyright 2023 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, Aug 24, 2023 – (ACN Newswire) – IGG Inc ("IGG" or the "Group", stock code: 799.HK), a leading global developer and publisher of mobile games and applications, announces its unaudited consolidated interim results for the six months ended 30 June 2023.

2023 Interim Financial Highlights and 2H23 Outlook of IGG Inc:

— For the first half of 2023, "Lords Mobile", IGG's flagship title launched seven years ago, continued to generate stable revenue, contributing over HK$1.6 billion. Meanwhile, the Group's two blockbuster strategy games, "Doomsday: Last Survivors" and "Viking Rise", each exceeded HK$70 million in monthly gross billing. The gross billing of "Doomsday: Last Survivors" has been rising steadily, with monthly gross billing in July reaching a new high of HK$82 million. At the same time, the Group's APP Business(1) is experiencing rapid growth, with monthly gross billing surging from over HK$12 million at the start of the year to more than HK$57 million in June, followed by a remarkable jump to HK$63 million in July. The two new games and the APP Business contributed 35% to the Group's total revenue in the second quarter of 2023. This helped the Group achieve a year-on-year increase in revenue to HK$2.5 billion in the first half of 2023, and a 19% growth compared to the second half of 2022. The Group resumed generating profits in June and its monthly gross billing rebounded to HK$500 million in July. Its game and APP Business are working in tandem to power the company ahead, ushering in a new chapter for IGG.

— Through the persistent optimization of resources and strategic application of AIGC(2) technology, the Group has achieved a 30% reduction, year-on-year, in research and development and administrative expenses in the first half of 2023. During the period, the Group launched marketing campaigns for "Doomsday: Last Survivors" and "Viking Rise". Despite HK$360 million in net losses for IGG's core business, the investment in new games was essential for the Group's sustained growth and long-term success, and the Group has reported profit in June 2023. As for investments, the Group has stepped into profitability as part of its investment projects gradually enter the profit-making phase and its impairment losses decreased significantly. As a result, the Group recorded a net loss of HK$360 million during the period. Looking ahead, with the growth of the two new games and the APP Business, the Group is confident in its ability to maintain solid financial performance.

After investing for years in game development, the Group's two highly rated strategy games, "Doomsday: Last Survivors" and "Viking Rise", each generated monthly gross billing in excess of HK$70 million in the first half of 2023. "Lords Mobile", IGG's flagship title launched seven years ago, continued to generate stable revenue, contributing over HK$1.6 billion in the first half of 2023. After a decade of perseverance, the APP Business finally hit its stride this year, with monthly gross billing surging from over HK$12 million at the beginning of the year to more than HK$57 million in June. The combined revenue from the two new games and APP Business in the second quarter of 2023 accounted for 35% of the Group's total revenue, propelling IGG's revenue to a year-on-year increase and a 19% half-on-half growth to HK$2.5 billion. The Group resumed generating profits in June and its monthly gross billing rebounded to HK$500 million in July. Its game and APP Business are working in tandem to power the company ahead, ushering in a new chapter for IGG. During the period, revenue from Asia, Europe and North America accounted for 44%, 26% and 25%, respectively, of the Group's total revenue.

Through the persistent optimization of resources and strategic application of AIGC technology, the Group has achieved a 30% reduction, year-on-year, in research and development and administrative expenses in the first half of 2023. During the period, the Group launched marketing campaigns for "Doomsday: Last Survivors" and "Viking Rise". Despite HK$360 million in net losses for IGG's core business, the investment in new games was essential for the Group's sustained growth and long-term success, and the Group has reported profit in June 2023. As for investments, the Group has stepped into profitability as part of its investment projects gradually enter the profit-making phase and its impairment losses decreased significantly. As a result, the Group recorded a net loss of HK$360 million during the period. As at 30 June 2023, the Group's mobile games were available in 23 different languages worldwide, with over 1.6 billion users in total and over 38 million monthly active users ("MAU")(3) across more than 200 countries and regions.

"Lords Mobile", IGG's blockbuster title, is the Group's first cross-platform, multi-language, real-time game designed for global gamers. The game has been well-received by gamers since its launch in 2016 and continues to generate stable revenue of over HK$1.6 billion for the Group in the first half of 2023. As at 30 June 2023, it has 640 million registered users worldwide and nearly 10 million MAU. IGG will continue to release new game content and diversified promotional initiatives to extend the game's longevity.

Drawing on over a decade of experience and expertise in the strategy games genre, the Group developed two highly rated strategy games – "Doomsday: Last Survivors" and "Viking Rise". After more than a year of refinement and optimization since its launch in 2021, "Doomsday: Last Survivors" has become a favourite for 22 million gamers with its distinctive post-apocalyptic survival theme, deep integration of "real-time" and "strategy" gameplay, and unique art style. Following a marketing campaign that started in March this year, the game's monthly gross billing reached HK$82 million in July. The Group will soon introduce a new survival competition gameplay in guild battle that will let players experience the fun of real-time team formation and battles between guilds in the game.

"Viking Rise", the other highly rated strategy game, demonstrated huge potential during its beta testing. A Viking-themed game that perfectly combines strategy gameplay with intricate community management, "Viking Rise" received global recommendations from Apple and Google on its launch, and quickly rose to the top of the strategy games download charts in over 60 countries and regions worldwide(4) . After a marketing campaign starting mid-April, the gross billing for May exceeded HK$70 million. "Viking Rise" has released a long-awaited cross-server battle feature, "Kingdom Mayhem". The game will soon introduce a new innovative cross-server guild war feature, "Battle of the Ruins", offering players a diverse range of battle experience.

After a decade of perseverance, the APP Business finally hit its stride this year, with monthly gross billing surging from over HK$12 million at the start of the year to more than HK$57 million in June, followed by a remarkable jump to HK$63 million in July. As at 30 June 2023, it has over 300 million registered users worldwide and nearly 20 million MAU. The Group is committed to ongoing promotion and diversification of its product portfolio, leveraging the synergies of platform-based business model to take the APP Business to the next level.

The rise of AIGC technology is transforming many industries, including the mobile Internet sector, and is rapidly becoming a dominant trend. IGG took a proactive approach in embracing AIGC technology and fully applied it to both product development and operations. The use of AIGC in language translation, art production, and customer service has significantly improved the efficiency of the Group's product development and operations, resulting in cost savings and increased productivity.

Looking ahead, with the steady growth of the two new games and the APP Business, the Group is confident in its ability to maintain solid financial performance. Embracing the corporate spirit of "Innovators at Work, Gamers at Heart", the Group will continue to strengthen its global R&D and operation capabilities, to relentlessly pursue its strategy of quality, innovation and excellence in creating innovative yet timeless games.

About IGG Inc
Established in 2006, IGG Inc is a leading global mobile games and applications developer and operator with headquarters in Singapore and local offices in the United States, China, Canada, Japan, South Korea, Thailand, the Philippines, Indonesia, Brazil, Turkiye, Italy and Spain. IGG offers multi-language and multifarious games to users around the world. The Group has established long-term partnerships with over 100 business partners, including global platforms, advertising channels, and vendors such as Apple, Google and Meta. IGG's most popular games include "Lords Mobile", "Castle Clash", "Doomsday: Last Survivors", "Viking Rise", and "Time Princess".

(1) APP Business: the Group's application and mobile advertisement mediation platform business
(2) AIGC: Artificial Intelligence Generated Content
(3) The Group's users in total and monthly active users include users of mobile games and apps.
(4) Source of ranking data: third-party analytics platform, data.ai.


Copyright 2023 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, Aug 22, 2023 – (ACN Newswire) – Kingsoft Corporation Limited ("Kingsoft" or the "Company"; HKEx stock code: 03888), a leading Chinese software and Internet service company, has announced its unaudited 2023 interim results and its second quarter results for the period ended 30 June 2023.

For the first half of 2023, the revenue of Kingsoft increased 13% year-on-year to RMB4,163.8 million. Revenue from office software and services business increased 21% year-on-year to RMB2,172.5 million. Revenue from online games and others increased 5% year-on-year to RMB1,991.3 million. Revenue from office software and services and online games and others represented 52% and 48%, respectively, of total revenue for the first half of 2023. Gross profit for the first half of 2023 increased 16% year-on-year to RMB3,457.2 million, while operating profit increased 24% year-on-year to RMB1,136.0 million.

For the second quarter of 2023, the Company's revenue increased 20% year-on-year to RMB2,193.5 million. Revenue from office software and services business increased 21% year-on-year to RMB1,120.8 million. Revenue from online games and others business increased 18% year-on-year to RMB1,072.6 million. Revenue from office software and services and online games and others represented 51% and 49%, respectively, of total revenue for the second quarter of 2023. Gross profit for the second quarter of 2023 increased 25% year-on-year to RMB1,831.8 million, while operating profit increased 61% year-on-year to RMB675.7 million.

Mr. Jun LEI, Chairman of the Company, commented, "Our core businesses achieved robust growth in the second quarter of 2023. Kingsoft Office Group has seized emerging opportunities brought about by large language models ("LLMs"), actively engages in product development within this field to enhance users' work efficiency. Meanwhile, the Group addresses the digital transformation needs of organizational users, aligning with the 'multi-screen, cloud, content, artificial intelligence ("AI"), collaboration' strategy, presenting solid growth in its business performance. Online games business focuses on developing premium games. Flagship JX Online III continued to enjoy popularity among players and achieved record-high quarterly gross billings. Anime game Snowbreak: Containment Zone expanded our user base and tapped into international markets, showcasing our determination to explore new game genres and global markets. The steady progress of our core businesses provides a solid foundation for the execution of our strategy."

Mr. Tao ZOU, Chief Executive Officer of the Company, added, "The Group achieved strong revenue growth in the second quarter, reaching RMB2,193.5 million, marking a year-on-year increase of 20%. This growth was primarily driven by the exceptional performance of the JX Online III and sustainable growth in subscription businesses of both individuals and institutions from Kingsoft Office Group. Operating profit amounted to RMB675.7 million, exhibiting a year-on-year growth of 61%. These achievements reflected our continuous efforts to enhance core competitiveness, getting well prepared to seize new opportunities."

BUSINESS REVIEW

Office Software and Services
For the first half of 2023, revenue from office software and services business increased 21% year-on-year to RMB2,172.5 million. Revenue in the second quarter increased 21% year-on-year to RMB1,120.8 million. Kingsoft Office Group embraces the opportunities brought about by AI and introduced WPS AI, an intelligent office assistant based on LLMs, initiated its Open Beta overseas. The Group unveiled the spring version of WPS Office, enhancing product capabilities, and providing seamless cloud integration experience.

In individual subscription business, Kingsoft Office Group took comprehensive steps towards improving user experience. While adhering to a long-term membership strategy, we merged functional and resource-based memberships, upgrading the membership benefits structure, and offered tailored benefits for specific needs.

Related to institutional subscription business, Kingsoft Office Group continued promoting cloud integration and collaborative office progress and delving into business scenarios for government and enterprises. The Group deepened product capabilities to serve industries such as finance, energy, publishing, healthcare, and high-end manufacturing. This involved incubating secure and efficient industry-specific solutions, aiming at enhancing organizational efficiency for institutions. We consistently expanded our ecosystem, and jointly built digital office application scenarios with partners.

Kingsoft Office Group has closely monitored the localization industry policy changes and customer demand, and taken the initiative to tap local government and industry localization markets in advance. In terms of overseas business, based on a solid foundation in the mobile sector, we continued to cultivate our user base on desktop platforms. Looking ahead, Kingsoft Office Group will uphold the service concept of "user first" and "relentless innovation", ensuring that more users can easily enjoy the benefits of intelligent office solutions.

Online Games and Others
In the first half of 2023, revenue from online games and others increased 5% year-on-year to RMB1,991.3 million, and revenue for the second quarter of 2023 increased by 18% year-on-year to RMB1,072.6 million. Our online gaming business demonstrated outstanding performance over the quarter, reflecting our ability to sustain premium games' longevity. This success reflected in the increase in daily active users and gross billings of JX Online III. We have remained committed to enhancing the content and players experience of JX Online III, resulting in positive response. Self-developed game, Snowbreak: Containment Zone, combining shooting gameplay and anime aesthetics, provided users with fresh and innovative gaming experience. This game was simultaneously launched on both PC and mobile platforms worldwide. It achieved instant acclaim by topping the free games chart on the iOS App Store in China, as well as in major international markets like the US, Japan, and South Korea upon its launch.

Looking ahead, we will maintain our commitment to a user-oriented approach, paying close attention to feedback and suggestions from our players. Meanwhile, we have been enhancing and optimizing our games to further enrich the user experience. In the fourth quarter, we plan to launch the upgrade version of JX Online III PC game, further extending the IP's vitality. Self-developed mobile game World of Sword Origin, which has received gaming license approval, is scheduled for release in Mainland China.

Mr. Jun LEI concluded: "We are confident in the future opportunities and challenges. The Group will manage core businesses steadily, drive innovation, create top-tier digital office services and premium gaming content for a global user base. We adhere to technology-driven business, committing to high-quality sustainable development, aiming to deliver better products and services to our users and create long-term value for our shareholders."

About Kingsoft Corporation Limited
Kingsoft is a leading software and Internet services company based in China listed on the stock exchange of Hong Kong. It has three main subsidiaries including Kingsoft Office, Seasun and Kingsoft Shiyou. Following the implementation of its "mobile internet transformation" strategy, Kingsoft has completed the comprehensive transformation of its overall business and management models, and formed a strategic platform with office software and interactive entertainment as the pillars and cloud services and AI as the new directions. The Company has more than 7,000 staff around the world and enjoys a large market share in China. For more information, please visit http://www.kingsoft.com.

Kingsoft Investor Relations:
Francie Lu Tel: (86) 10 6292 7777 Email: ir@kingsoft.com
For further queries, please contact Hill+Knowlton Strategies Asia:
Ovina Zhu Tel: (852) 2894 6315 Email: kingsoft@hkstrategies.com


Copyright 2023 ACN Newswire. All rights reserved. http://www.acnnewswire.com