HONG KONG, Aug 18, 2020 – (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 2020 interim results and its second quarter results for the period ended 30 June 2020.

For the first half of 2020, the revenue of Kingsoft increased 41% year-on-year to RMB2,591.4 million. Revenue from the online games, and office software and services and others represented 64% and 36%, respectively, of the Company's total revenue for the first half of 2020.

For the second quarter of 2020, the Company's revenue increased 49% year-on-year and 21% quarter-on-quarter to RMB1,420.1 million. Revenue from the online games, and office software and services and others represented 61% and 39%, respectively, of the Company's total revenue for the second quarter of 2020. Gross profit for the second quarter of 2020 increased 55% year-on-year and 24% quarter-on-quarter to RMB1,202.2 million, while operating profit increased 232% year-on-year and 42% quarter-on-quarter to RMB548.7 million.

Mr. Jun LEI, Chairman of Kingsoft, commented, "The Company saw strong growth in the second quarter, driven by continued demand for subscription and licensing services of WPS Office, coupled with excellent performance by core online games. WPS Office focused on product development and promotion, explored into complementary verticals, to build its core competitiveness. In the online games sector, we continued to improve our ability to develop and operate premium games, while expanding into new game categories. On 8 May 2020 (New York time), Kingsoft Cloud Holdings Limited was successfully listed on the NASDAQ. As the largest shareholder of Kingsoft Cloud, we have full confidence in its future performance. "

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, "Our revenue in the second quarter of 2020 was RMB1,420.1 million, up 49% year-on-year and 21% quarter-on-quarter. Our revenue in the first half of 2020 was RMB2,591.4 million, up 41% year-on-year. In the second quarter of the year, our online games business recorded a year-on-year growth of 53% and office software and services and others businesses grew 43% year-on-year, respectively.

BUSINESS REVIEW

Office Software and Services and Others

For the first half of 2020, revenue from office software and services and others increased 40% year-on-year to RMB941.5 million. Revenue in the second quarter increased 43% year-on-year and 41% quarter-on-quarter to RMB551.0 million. The year-on-year increase was largely due to solid growth from subscription services and licensing products of Kingsoft Office, driven by fast growing paid users through offering new innovative content, rich product features, and better user experience.

For the second quarter of 2020, Kingsoft Office, as a beneficiary of increased demand in remote working, maintained stable and healthy development. Kingsoft Office's office software licensing business maintained its rapid growth. The Company continued to promote cloud office migration to its leading customers, further strengthening its market leadership in document and information processing. In the first half of 2020, Kingsoft Office launched new editions of WPS Office such as Integrated Edition, Business Edition and Graphics Edition, while establishing an open Application Program Interface (API) with developer partners in its ecosystem. As of June 2020, Kingsoft has completed product adaptation with 190 developer partners, achieving integration in areas such as work collaboration, input method, mail, voice recognition, handwriting pad and tablet. In addition, over hundreds of thousands of micro, small and medium enterprises have used WPS+ cloud office services.

WPS Office's personal subscription services continued to show robust growth, due to innovative content, rich features, as well as improved user outreach and experience via innovative channels such as live streaming sales. In addition to online document editing, WPS Docs provides collaborative office products such as spreadsheet, calendar, to-do list and meeting, enabling users to work together seamlessly via Kingsoft Office's cloud platform.

Kingsoft Office continues to expand its partnerships and brand awareness. During this period, Kingsoft Office has become the official supplier of Beijing 2022 Winter Olympics. In addition, Kingsoft Office entered a strategic cooperation with the International Centre for Higher Education Innovation under the auspices of United Nations Educational, Scientific and Cultural Organization (UNESCO-ICHEI), providing WPS Office-related online courses to this global education resource platform. Forging ahead, Kingsoft Office continues to adhere to its philosophy of technological empowerment, focusing its efforts on technological innovation and product optimization and continue to innovate the organizational structure and strengthen the construction of R&D Center.

Online Games

Revenue from the online games business for the first half of 2020 increased 41% year-on-year to RMB1,649.9 million and revenue for the second quarter of 2020 increased 53% year-on-year to RMB869.2 million. The increase was mainly due to strong performance of self-developed PC games, as well as an increase in mobile games. In the second quarter, revenue and average daily active users of its flagship JX Online III PC game recorded year-on-year growth of 120% and 39% respectively, reflecting its track record in developing and operating blockbuster online games. In June, Kingsoft launched a beta test for the JX Online III mobile game and received positive player response. In the same month, the Company also started the pre-registration for War of the Visions: Final Fantasy Brave Exvius. Meanwhile, the cloud version of JX Online III PC game has officially launched its testing version in July, becoming one of the first cloud games in China. The Company further strengthened cooperation with Tencent and launched JX Online II mobile game on all platforms in August, which was ranked as the number one in the iOS top free charts on its debut.

In the coming quarters, Kingsoft will continue to focus on new product development and operation optimization. We will celebrate the 11th anniversary of JX Online III PC game and launch a new expansion pack to further strengthen the longevity and vitality of our core IP. During the year, JX Online I mobile game will be renamed as New JX Online I: Yuan Qi Wang You with an all-new game appearance and experience for players. Wo Long Yin 2 will also be launched later."

Mr. Jun LEI concluded, "Our results were robust in the first half of 2020 despite the impact of COVID-19. Going forward, we remain confident in the resilience of our business model and the pace of our developments. We will continue to focus on optimizing our organizational structure, technological innovation and product enhancement, so as to provide our customers with the best user experiences. We strive to deliver sustainable business growth and bring solid returns to our shareholders and partners."

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 two subsidiaries including Seasun and Kingsoft Office. 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 interactive entertainment and office software as the pillars and cloud services and AI as the new directions. The Company has more than 5,000 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:
Sophie Du Tel: (852) 2894 6264 Email: kingsoft@hkstrategies.com


Copyright 2020 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, May 26, 2020 – (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 31 March 2020 ("period under review").

During the period under review, the revenue of Kingsoft increased 32% year-over-year to RMB1,171.3 million. Revenue from the online games and office software and services and others represented 67% and 33%, respectively, of total revenue. Gross profit increased 36% year-over-year to RMB970.1 million, while operating profit increased 124% year-over-year to RMB385.2 million.

Mr. Jun LEI, Chairman of Kingsoft, commented, "Our first-quarter results represent a strong start to the year. The team did an excellent job in responding to the challenges of COVID-19 while delivering stable business progress. More importantly, the COVID-19 pandemic has expedited the digital transformation and online collaboration of all industries, and therefore laid a solid foundation for our future development. Especially, we saw significant growth in the operational performance of cloud office products and services as WPS has been more widely adopted for remote working. Our flagship JX Online III PC game also achieved a stable performance with revenue continuing to grow year-on-year. On 8 May 2020 (New York time), Kingsoft Cloud Holdings Limited was successfully listed on the National Association of Securities Dealers Automated Quotations capital market ("NASDAQ"). Our cloud services business continued to maintain its robust growth in the first quarter, and as the largest shareholder of Kingsoft Cloud, we have full confidence in its future performance. Riding on the wave of the post-pandemic digital transformation, we are marching towards a bright future and are determined to become a winner of this unprecedented new digital era."

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, "In the first quarter, our total revenue was RMB1,171.3 million, up 32% year-on-year, kicking off 2020 on a positive note in spite of the COVID-19 outbreak. Our office software and services and others, and online game businesses grew 36% and 30% year-on-year respectively in the first quarter."

BUSINESS REVIEW
Office Software and Services and Others

Revenue from the office software and services and others for the first quarter of 2020 increased 36% year-on-year to RMB390.6 million. The steady year-on-year growth was mainly due to the robust revenue growth from WPS Office subscription services, driven by rapid expansion of user base with enhanced features and services.

For the first quarter of 2020, the office software and services business developed steadily. Global monthly active users of WPS family reached record highs with strong growth of cloud office products and services, particularly WPS Docs. WPS Docs, an online document product, has become one of the largest online collaboration tools in China. Kingsoft Office has further consolidated its leading position in the office market in China, with a dominant user base in WPS Office and WPS Docs. During the quarter, Kingsoft Office provided more than 4 million free business collaborative cloud office accounts to various governments organizations, enterprises, schools and medical institutions, to support remote working and work resumption in the fight against COVID-19. More than 100 government organizations and industry associations have adopted WPS+, WPS business's one-stop cloud office service platform, as their preferred remote office product. With continued innovation and leading position in the field of office software, Beijing Kingsoft Office Software Inc. was named as an Innovation Pioneer Enterprise in Information Technology Application in China, and it was also admitted to the Information Technology Park in Jingkai district, a National Cybersecurity Industrial Park. WPS Office 2019 Security Edition received the prestigious "Butian Award" from the Independent Innovation Report of Internet Information in 2019 and Outstanding Product and Technology Award of Information Technology Application in China in recognition of its product excellency. The above breakthroughs provide a solid foundation for the Company's licensing business to seize opportunities in the areas of cloud office, innovative information technology and infrastructure investment. Going forward, Kingsoft Office will further leverage its technology capabilities to maintain dominant position and stellar reputation in document and information processing, while enhancing user experience and offering easy-to-use yet highly effective products and services.

Online Games

Revenue from the online games business for the first quarter of 2020 reached to RMB780.7 million, represented a 30% growth year-on-year. The online games business maintained robust year-on-year revenue and user growth, reflecting the Company's R&D track record in developing compelling online games and IPs. Revenue and average daily active users of flagship JX Online III PC game recorded a year-on-year growth of 33% and 20% respectively, while revenue from other PC games of the JX series increased by 44% year-on-year. For mobile games business, the key mobile game JX Online I and Eudemons Online continued to perform steadily during the quarter.

During the COVID-19 outbreak, Kingsoft has launched several charity initiatives such as setting up in-game fund raising and offering free game log-ins in response to China's call to support epidemic prevention and control. Kingsoft aimed to deliver positive messages in these unprecedented times and further enhance the positive influence of its IPs.

On 22 May, Kingsoft launched Jie Lu Zai Jiang Hu, a new expansion pack for JX Online III PC game, aiming to provide gamers with a new game experience. Going forward, Kingsoft will continue to focus on quality content creation and further enhance the integration of R&D and operation, thus laying a solid foundation for its long-term development.

Mr. Jun LEI concluded, "We are pleased to achieve a satisfactory performance in the first quarter amid the COVID-19 outbreak. Our business has shown strong resilience and we are confident in the strength of our business model and our developments going forward. Looking ahead, we will continue to increase our investment in key areas, improve our product and service capabilities, innovate on our business model, with our ultimate focus being the provision of high-quality products and services to our customers."

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 two subsidiaries including Seasun and Kingsoft Office. 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 interactive entertainment and office software as the pillars and cloud computing and AI as the new directions. The Company has over 5,000 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:
Sophie Du Tel: (852) 2894 6264 Email: kingsoft@hkstrategies.com


Copyright 2020 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, Mar 24, 2020 – (ACN Newswire) – Kingsoft Corporation Limited ("Kingsoft" or the "Company"; HKEx stock code: 03888), a leading Chinese software and Internet service company, has announced its 2019 unaudited annual results and fourth quarter results for the period ended 31 December 2019.

For the year of 2019, the revenue of Kingsoft increased 39% year-on-year to RMB8,218.3 million. Revenue from the online games, cloud services and office software and services and others represented 33%, 47% and 20%, respectively, of the Company's total revenue for the year of 2019.

For the fourth quarter of 2019, the Company's revenue increased 48% year-on-year and 28% quarter-on-quarter to RMB2,594.7 million. Revenue from the online games, cloud services and office software and services and others represented 35%, 43% and 22%, respectively, of the Company's total revenue for the fourth quarter of 2019. Gross profit for the fourth quarter of 2019 increased 70% year-on-year and increased 56% quarter-on-quarter to RMB1,282.0 million. Operating profit before share-based compensation costs for the fourth quarter of 2019 was RMB235.0 million, compared to loss of RMB105.4 million in the corresponding period last year.

Mr. Jun LEI, Chairman of Kingsoft, commented, "Our businesses sustained positive momentum during the quarter. Our online games business delivered stable growth in both PC and mobile segments, while office software and services and cloud services continued to achieve robust revenue growth with accelerated deployment across industries. Meanwhile, we have completed the listing of our office software and services business, Beijing Kingsoft Office Software Inc. ("Beijing Office Software"), on 18 November 2019 on the science and technology innovation board of the Shanghai Stock Exchange ("SSE STAR Market"). Overall, we made solid progress in 2019, and we are confident in a robust operating outlook and sustained growth for 2020."

Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, "Our revenue for the fourth quarter was RMB2,594.7 million, up 48% year-on-year and 28% quarter-on-quarter. Revenue of 2019 was RMB8,218.3 million, increasing 39% year-on-year. Our revenue maintained a stable growth against the backdrop of a dynamic environment thanks to our solid market competitiveness and execution capabilities. Meanwhile, annual revenue of cloud services and office software and services and others maintained a strong and rapid growth, with a year-on-year growth of 73% and 43%, respectively."

BUSINESS REVIEW

Office Software and Services and Others

For the year of 2019, the revenue from office software and services and others increased 43% year-on-year to RMB1,622.3 million. Revenue in the fourth quarter increased 52% year-on-year and 48% quarter-on-quarter to RMB565.7 million. The increase was primarily due to strong revenue growth from WPS Office subscription and licensing services, driven by the expansion of user base, and the increase in consumption frequency and paid conversion rate. Riding on the growth of the office software market, promotion of licensed software in China, enhancement of brand recognition and technology, revenue from WPS increased rapidly year-on-year.

For the fourth quarter of 2019, the office software services sector made its debut in the capital market, gaining momentum for further development. On 18 November 2019, Beijing Office Software was listed on the SSE STAR Market, raising RMB4.459 billion for four key aspects: development and upgrade of WPS Office software, construction of an AI infrastructure R&D center for office software, Internet cloud services for office products, and internationalization of office software. During the period, Kingsoft continued to make encouraging progress in working with key government clients and entered into agreements with leading clients in the fields including energy and finance for comprehensive cooperation in office software. In October 2019, WPS Office's overseas monthly active users exceeded 100 million as the Company actively seized the opportunities from the Belt and Road Initiative. With the proactive promotion of its cloud office strategy, WPS Office subscription services achieved significant growth during the quarter. At the beginning of 2020, the demand for cloud office and remote office work by various enterprises has significantly increased, driving the rapid development of online collaboration products like Kingsoft Docs. As of 2 March, the number of MAU of Kingsoft Docs has exceeded 239 million. This trend also further fostered user habits and boosted market demand, expanding the potential growth in WPS Office's personal and enterprises subscription services in the future.

Cloud Services

For the year of 2019, the revenue of cloud services increased 73% year-on-year to RMB3,847.2 million. Revenue in the fourth quarter amounted to RMB1,113.3 million. Leveraging the Company's competitive advantages in internet and video sectors, as well as the accelerated implementation of Kingsoft Cloud across various industry sectors, revenue from cloud services business maintained its rapid growth during the fourth quarter.

Kingsoft Cloud strengthened its industry leading position in the internet and video sectors, continued to focus on technology innovation and further promoted the integration and implementation of cutting-edge technologies such as edge computing, smart high definition and artificial intelligence ("AI") etc. As a leading cloud service provider, Kingsoft Cloud made strong inroads in terms of government and enterprise services, financial services and artificial intelligence of things ("AIoT"). Key highlights include:

– Beijing government's cloud project was recognized as one of the "Outstanding Innovation Case Studies" in "2019 Innovation Case Studies of Government Digital Applications".
– Kingsoft Cloud was awarded the "Outstanding Contribution Award for Fintech Product Innovation" etc.

Kingsoft Cloud quickly responded to the COVID-19 outbreak and launched eight anti-epidemic products and solutions, covering epidemic prevention and control, collaborative office, remote education and telemedicine etc. The Emergency Materials Management System has provided services to more than 10,000 institutions in multiple municipalities and autonomous regions across China upon its launch, receiving unanimous praise from the customers.

Meanwhile, the Company is considering a possible spin-off and separate listing of Kingsoft Cloud Holdings Limited. On 20 December 2019 (New York time), Kingsoft Cloud Holdings Limited submitted on a confidential basis to SEC a draft registration statement for a possible IPO. Going forward, Kingsoft Cloud remains committed to strengthening the strategic cooperation with Xiaomi's AIoT, increasing the in-depth service of oversea business, leading the integration of cloud computing, big data, AI and other cutting-edge technologies with various industry scenarios, striving for cost optimization, and empowering enterprise clients in their digital transformations.

Online Games

Revenue from the online games business for the year of 2019 increased 8% year-on-year to RMB2,748.7 million. Revenue in the fourth quarter increased 39% year-on-year and 38% quarter-on-quarter to RMB915.8 million. Both PC and mobile games recorded stable performance during the year, and revenues improved year-on-year.

Kingsoft has launched a new expansion pack for its flagship JX Online III PC game in the fourth quarter, resulting in a 24% jump in average daily active users (compared to 30 days prior to the launch) and a record-high monthly gross billing in December. The Company's classic PC game JX World achieved year-on-year growth in both number of gamers and revenue. The continued growth of the JX series demonstrated the Company's resilience and strong capabilities in developing and operating long-term games and IP values. For mobile games, Kingsoft's JX Online I continued to perform well during the year with a stable concurrent income. In addition, the Company has launched a new mobile game Double Life World in Japan in September, followed by China in November, earning high praise at home and abroad. The newly launched mobile game was ranked as the number one in the iOS top free charts on its debut, and subsequently climbed to top five in the top grossing charts. The successful launch of Double Life World has further strengthened the Company's diversified product strategy. Kingsoft will seize market opportunities and achieve breakthroughs in product diversification. In view of the dynamic market and regulatory environment in China, Kingsoft will continue to expand overseas presence to further drive the growth of games business.

Mr. Jun LEI concluded, "Amidst a turbulent economic environment, we managed to achieve a satisfactory performance in 2019. Our operating loss margin has been narrowed during the year, mainly due to the significant improvement of the operation efficiency of our cloud business. Meanwhile, Beijing Office Software was successfully listed on the SSE STAR Market. Although our investments in the cloud business led to an operating loss in 2019, we recommended the payment of a final dividend of HK$0.1 per share with an aim to reciprocate our shareholders' long-term support. Subsequent to the relief of the global COVID-19 pandemic and conclusion of the IPO of Kingsoft Cloud Holdings Limited, we will further review our dividend policy as and when appropriate. Going forward, Kingsoft Cloud will be committed to strengthening its market position, by leveraging leading technologies and promoting innovation across various industries. We will work with strategic partners to further expand our ecosystem, and to make our cloud computing offerings more accessible globally. In terms of office software and services, WPS will focus on its multi-pronged strategies of "Cloud, Multi-screen, Content and AI" to solve our users' diverse needs and to maintain our competitive advantages. As we continue to seize opportunities arising from enterprises' digital transformation, Kingsoft will maintain its competitive edge in the industry. Looking ahead, we see a clear momentum of growth across all our business segments driven by increasing customer demand. We are confident to meet our performance targets in the coming year 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 subsidiaries including Seasun, Kingsoft Cloud and Kingsoft Office. 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 interactive entertainment and office software as the pillars and cloud computing as the new growth driver and source. The Company has over 7,000 staff around the world. It enjoys a large market share in various countries and regions both home and abroad. 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:
Sophie Du Tel: (852) 2894 6264 Email: kingsoft@hkstrategies.com



Copyright 2020 ACN Newswire. All rights reserved. http://www.acnnewswire.com