In This Article:
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Annual Revenue: Surpassed RMB10.3 billion, a 21% year-on-year increase.
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Operating Profit: Reached RMB3.646 billion, a 64% increase compared to the previous year.
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Operating Profit Margin: Improved from 26% in 2023 to 35% in 2024.
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Q4 Revenue: RMB2,792 million, a 21% year-on-year increase, but a 4% decrease quarter-on-quarter.
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Office Software and Services Revenue: Increased 17% year-on-year to RMB1,501 million in Q4.
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Online Games and Other Revenue: Increased 26% year-on-year to RMB1,291 million in Q4.
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Gross Profit Margin: Increased by 2 percentage points to 84% year-on-year in Q4.
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Net Profit Margin (Excluding Share-Based Compensation): 18% in Q4 2024.
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Profit Attributable to Owners of the Parent: RMB460 million in Q4 2024.
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Cash Resources: RMB27 billion as of December 31, 2024.
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Net Cash from Operating Activities: RMB4,587 million for the year ended December 31, 2024.
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Capital Expenditure: RMB426 million for the year ended December 31, 2024.
Release Date: March 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Kingsoft Corp Ltd (KSFTF) achieved record highs in revenue and profitability, with annual revenues surpassing RMB10.3 billion, marking a 21% year-on-year increase.
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The operating profit margin improved significantly from 26% in 2023 to 35% in 2024.
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The company launched WPS AI version 2.0, providing comprehensive AI solutions, enhancing productivity and collaboration.
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The number of daily active devices for WPS Office PC exceeded 100 million in the domestic market, indicating strong user engagement.
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Kingsoft's online business achieved outstanding growth, with total revenue reaching RMB5.2 billion, a 31% year-on-year increase.
Negative Points
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The company faced challenges with server crashes and polarized user feedback during recent game tests.
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There was a decrease in revenue from online games and other business by 24% quarter on quarter.
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Research and development costs increased by 7% year on year, driven by rising AI-related expenses.
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The company experienced a net loss of RMB74 million in the fourth quarter of 2024.
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Share of losses of associates was RMB148 million for the fourth quarter of 2024, indicating ongoing challenges in this area.
Q & A Highlights
Q: The company has shown notable growth in earnings per share. Does management expect this improvement to be sustainable in 2025? Additionally, could you share your views on the use of cash, strategic investment plans, and shareholder return plans? A: The EPS growth in 2024 was driven by strong performance in office software and games, particularly GX 3. For 2025, we are optimistic about maintaining this growth, supported by strong office software performance and stable game operations. We plan to continue strategic investments, especially in AI, and maintain shareholder returns through dividends and market repurchases.