Yahoo Finance

• Total Revenue: RMB2.915 billion, up 42% year on year and 18% quarter on quarter.

• Operating Profit: RMB1.14 billion, a 204% increase year on year and 44% increase quarter on quarter.

• Kingsoft Office Group Revenue: RMB1.207 billion, up 10% year on year and 2% quarter on quarter.

• Gaming and Other Business Revenue: RMB1.708 billion, a 78% year on year increase and 33% quarter on quarter increase.

• Domestic Individual Office Subscription Revenue: RMB715 million, a 17.2% year on year increase.

• Domestic Institutional Subscription Revenue: RMB248 million.

• Domestic Institutional Licensing Revenue: RMB143 million, up 9% year on year.

• Gross Profit: RMB2,454 million, up 46% year on year and 20% quarter on quarter.

• Gross Profit Margin: 84%, increased by 3 percentage points year on year and 1 percentage point quarter on quarter.

• R&D Costs: RMB861 million, up 28% year on year and 60% quarter on quarter.

• Selling and Distribution Expenses: RMB365 million, decreased 70% year on year and 4% quarter on quarter.

• Administrative Expenses: RMB166 million, decreased 11% year on year and increased 7% quarter on quarter.

• Profit Attributable to Owners of the Parent: RMB413 million.

• Net Cash Generated from Operating Activities: RMB1,387 million.

• Cash Resources: RMB25 billion as of September 30, 2024.

• Capital Expenditure: RMB109 million.

Release Date: November 19, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kingsoft Corp Ltd (FRA:3K1) reported a strong revenue growth of 42% year on year and 18% quarter on quarter, reaching RMB2.915 billion.

• Operating profit hit a record high of RMB1.14 billion, marking a 204% increase year on year and a 44% increase quarter on quarter.

• The Kingsoft Office Group maintained its leadership in domestic office software, with a 17.2% year on year increase in domestic individual office subscription revenue.

• The gaming business showed robust performance, with a 78% year on year increase in revenue, driven by the success of JX3 Online and JX3 Ultimate.

• The company has a strong cash position with RMB25 billion in cash resources as of September 30, 2024.

Negative Points

• R&D costs increased by 28% year on year and 60% quarter on quarter, primarily due to increased headcount and performance-based bonuses.

• The company recorded other losses of RMB63 million for the quarter, compared to gains in the previous year.

• Share of losses from associates increased to RMB428 million, up from RMB307 million in the third quarter of 2023.

• Despite strong revenue growth, the net profit margin excluding share-based compensation costs was only 16% for the quarter.

• There is uncertainty regarding future shareholder returns, as the company has not yet decided on dividend enhancements.