It is reported that Kingsoft Office (688111.SH) officially released the data of the 2024 half-year report on the evening of August 20. In the first half of 2024, Kingsoft Office's revenue and net profit grew comprehensively, with operating income of 2.413 billion yuan, a year-on-year increase of 11.09%, and net profit attributable to the owners of the parent company of 0.721 billion yuan, a year-on-year increase of 20.38%. The net profit attributable to the parent company after deducting non-recurring gains and losses was 0.688 billion yuan, up 19.35% year-on-year, and the profitability continued to improve.

As the core growth engine of Kingsoft Office, subscription business generated revenue of 1.973 billion yuan in the first half of 2024, accounting for about 82% of the total revenue, an increase of nearly 5 percentage points year-on-year.

The subscription business steadily grew, and the WPS 365 service served over 18,000 top-of-head political and business customers.

In the first half of 2024, Kingsoft Office's subscription business maintained steady growth: domestic personal subscription business revenue was 1.53 billion yuan, a year-on-year increase of 22.17%; domestic institutional subscription and service business revenue was 0.443 billion yuan, a year-on-year increase of 5.95%. In addition, Kingsoft Office's total contract liabilities reached 2.685 billion yuan, laying a foundation for long-term business development.

In the first half of this year, with the commercialization of WPS AI, Kingsoft Office's cumulative annual paid personal users increased to 38.15 million, and the number of active devices for main products reached 0.602 billion, both setting historical records. With regard to institutional business, WPS 365 is fully embedded with AI capabilities, and the penetration rate of enterprise customers in the public cloud market continues to strengthen. The transition to SaaS model has initially shown its effect.

As of the end of the reporting period, WPS 365 has served more than 18,000 top-of-head political and business customers, covering industries such as finance, energy, communications, transportation, real estate, publishing, biomedical, high-end manufacturing and education, including China CITIC Bank Corporation, China United Property Insurance, China Huaneng, Guangzhou Metro, China Gold, Shanghai Construction, Tongwei Co., Ltd., Haier Group, JD.com, New Oriental Education and other well-known organizations.

The proportion of R&D investment exceeds 30%, and WPS AI 2.0 is being iterated.

In the first half of 2024, Kingsoft Office's R&D investment was 0.808 billion yuan, accounting for about 33% of revenue, and R&D expenses increased by 12.61% year-on-year, injecting stable power into product development.

In recent years, Kingsoft Office has closely followed AI industry trends and continuously iterated and upgraded AI and collaboration products. In July of this year, Kingsoft Office released WPS AI 2.0, which helps users and customers improve their productivity by innovatively applying AI in personal, enterprise, and political scenarios.

For personal users, the upgraded WPS AI 2.0 has achieved paradigmatic innovation in four dimensions: AI writing assistant, AI reading assistant, AI data assistant, and AI design assistant. For enterprises, Kingsoft Office continues to explore feasible solutions for WPS AI Enterprise Edition in office scenarios with top enterprise customers to promote the transformation of enterprise digitization. For party and government customers, Kingsoft Government Office model is introduced, and based on this, WPS AI Government Edition is released, covering political AI writing, political AI Q&A, and political AI tools. It adapts to various environments such as trust and creation, supports private deployment, and provides intelligent support for political scenarios.

During the reporting period, Kingsoft Office also collaborated closely with partners such as Huawei to carry out a series of infrastructure construction and improvement work. The first WPS Hongmeng version was launched, which runs smoothly on all terminals, realizing the unification of multiple platform accounts, cross-terminal calls, and cross-screen collaboration. Dozens of AI features of WPS AI were also migrated to the Hongmeng platform, providing users with a full-scenario and multi-end collaborative, more efficient and convenient office experience.

As the official collaborative office software supplier of the Chinese sports delegation for the 2024 Olympics, WPS 365 fully leveraged its product service advantages during the Paris Olympics, guaranteeing the Chinese sports delegation's needs for multi-site, cross-border, mobile, scenario-based, and collaborative office work, ensuring emergency response capabilities and providing support for Olympic athletes.