Kingsoft Posts 100.8% Surge in Half-Year Net Profit Attributable to Owners

Stock News
Aug 19

Kingsoft (03888) has unveiled its financial results for the three and six months ended June 30, 2026. During the second quarter of 2026, the group recorded revenue of RMB 2.51 billion, representing a year-on-year increase of 8.8%. Profit attributable to owners of the parent reached RMB 548 million, up 2.92% year-on-year, with earnings per share standing at RMB 0.40.

For the first half of 2026, total revenue climbed to RMB 4.927 billion, a 6.06% rise compared to the prior year. Net profit attributable to owners of the parent surged to RMB 1.639 billion, marking a substantial 100.81% year-on-year growth, while earnings per share reached RMB 1.19.

During the quarter, WPS personal business revenue amounted to RMB 1.039 billion, reflecting a robust 17% year-on-year expansion. In the domestic market, as of June 2026, the cumulative number of annual paying individual users hit 48.25 million, an increase of 15% from the same period last year. The group has been intensifying its efforts to integrate AI capabilities with WPS Office components, further enhancing user productivity and experience. AI has progressively emerged as a crucial driver influencing individual user payment conversion and overall user value enhancement.

In overseas markets, WPS Office has introduced two major features: an end-cloud integrated cross-device synchronization function and an AI-embedded document assistant. The end-cloud integration ensures seamless connectivity across devices, while the AI assistant consolidates full-text translation, spell-checking, and intelligent polishing, supporting translation across more than 100 languages. These initiatives are accelerating the expansion of AI services among international users.

For the first half of 2026, revenue from the office software and services segment totaled RMB 3.313 billion, up 25% from the prior year. Each key business area grew at varying rates. The steady growth in WPS personal business is primarily attributed to improved AI capabilities, which have enhanced user experience and product value, thereby driving higher payment conversion rates. The robust performance of WPS 365 can be credited to the continuous upgrades of AI-driven products and the widespread adoption of AI capabilities across enterprise business scenarios. Meanwhile, growth in the WPS software business benefits from the sustained release of demand in the information and innovation sector, alongside the deeper implementation of digital and intelligent solutions among government and enterprise clients.

Research and development costs for the first half of 2026 amounted to RMB 1.873 billion, an increase of 11% year-on-year. This rise is primarily due to an increase in headcount within the office software and services business, reflecting the group's ongoing strategic commitment to technological and product innovation.

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