Kingsoft sees first half profit jump 20.4%, revenue up

Kingsoft Corporation Limited reported a 1% year-on-year increase in total revenue for the first half of 2025, reaching RMB4,645.4 million. This was primarily driven by a 10% rise in office software and services revenue to RMB2,657.1 million. The growth in the software segment was attributed to WPS individual and WPS 365 businesses, enhanced by AI-enabled features. However, online games and others business revenue decreased by 10% year-on-year to RMB1,988.3 million, mainly due to a high base in the first half of 2024.

Profit attributable to owners of the parent for the first half of 2025 significantly increased by 20.4% to RMB816.3 million, compared to RMB677.9 million in the same period last year. This increase was partly due to a gain recognized on the deemed disposal of Kingsoft Cloud resulting from new share issues in Q2 2025. Basic earnings per share for the period stood at RMB0.60, up from RMB0.51 in the first half of 2024.

Operating profit for the six months decreased by 29% to RMB1,108.9 million before share-based compensation costs. The group's R&D costs increased by 16% to RMB1,681.6 million, reflecting continued investments in AI, collaboration capabilities, and new game genres. Selling and distribution expenses rose by 19% to RMB764.5 million, driven by marketing for Kingsoft Office and new game pre-launch activities.