kingsoft – Asia Tab

Kingsoft Cloud’s Dual Primary Hong Kong Listing: Resilience Rooted in Technology-based Business, High-quality Development Expected from Improving Profitability

30 12 月, 2022

HONG KONG, Dec 30, 2022 - (ACN Newswire via SEAPRWire.com) - On December 30, Kingsoft Cloud (3896.HK) was officially listed on the Main Board of the Hong Kong Stock Exchange, becoming the "finale" of homecoming listing of Chinese ADRs in 2022. The dual-primary listing provides investors with greater protection and flexibility in terms of trading venues and hours, while listing by way of introduction prevents dilution and regarded as responsible for existing shareholders.With deep devotion on and cultivation of the industry for ten years, Kingsoft Cloud adhered to building a technology-based business, stayed at the frontier of cloud-native, hybrid cloud, big data and other cutting-edge technologies, and achieved industry practice-and-technology integration. In combination with in-depth understanding of strategically selected verticals, Kingsoft Cloud accomplished fast growth in both business scale and financials. Total premium customers increased from 243 in 2019 to 597 in 2021; revenue CAGR between 2019 and 2021 was 51.3%, significantly outpacing the broader industry's 36.4%.In the past year, the overall industry was under pressure due to market headwinds and the impact of COVID-19. Kingsoft Cloud made proactive adjustments, allocated resources in favor of more profitable products and projects to achieve improved sustainability, profitability and operating cash flow. A number of analysts noted that the Company's gross margin improved significantly in recent 3 quarters, and recorded operating cash inflow for 2 consecutive quarters, well received by the market such that the Company's share price has nearly doubled from the end of September to December 28. Analysts pointed out that such financial improvements are expected to continue, laying a solid foundation for the stock price to further recover.Kingsoft Cloud has always been strongly supported by the strategic shareholders Xiaomi and Kingsoft Group. According to the management in recent results roadshow, Kingsoft Cloud, in its future development, will further strengthen collaboration with strategic shareholders in their digital transformation, as well as with the broader ecosystem, and actively explore opportunities in high-value verticals. It is noted that there are 800+ enterprises in the Lei Jun Ecosystem, among which Xiaomi and Kingsoft Group alone have many businesses that are inherently highly compatible with cloud computing, such as office collaboration, gaming, IoT, smartphone cloud storage and computing, as well as electric vehicle. All of these are potential growth opportunities that Kingsoft Cloud may actively explore out of its proximity advantages.Zou Tao, Vice Chairman and CEO of Kingsoft Cloud, said, "Listing in Hong Kong is an important milestone in the Company's 10th anniversary, and the Company stands ready for the new decade. First, we will continue to invest in technology, focus on core business, and return to the essence and original aspiration of cloud; second, we will evaluate customers and projects, control costs, balance revenue scale and profitability; meanwhile, we will strengthen ecological synergy, tap into high-quality business opportunities in strategically selected verticals."He Haijian, CFO of Kingsoft Cloud, also said, "Primary listing in Hong Kong will broaden our investor base, facilitate our participation in Hong Kong Stock Connect, and open up investment cooperation channels to more Chinese mainland investors. We will maintain the structure of the one-share-one-vote, which is rare among Chinese ADRs, and widely respect and adopt the advice of public investors. We will continue to attach importance to ESG and data security to ensure the stability and security of our services. " Copyright 2022 ACN Newswire. All rights reserved. (via SEAPRWire)

Kingsoft Announces 2022 Third Quarter Results

15 11 月, 2022

HONG KONG, Nov 15, 2022 - (ACN Newswire via SEAPRWire.com) - Kingsoft Corporation Limited ("Kingsoft" or the "Company"; HKEx stock code: 03888), a leading Chinese software and Internet service company, has announced its unaudited quarterly results for the three months ended 30 September 2022 ("period under review").During the period under review, the revenue of Kingsoft increased 22% year-on-year and kept flat quarter-on-quarter to RMB1,837.1 million. Revenue from the office software and services, and the online games and others represented 55% and 45%, respectively, of total revenue. Gross profit increased 18% year-on-year to RMB1,466.2 million. Operating profit before share-based compensation costs increased 10% year-on-year to RMB395.3 million.Mr. Jun LEI, Chairman of Kingsoft, commented, "The Group adheres to technological empowerment, with a focus on developing core products and technologies. During the quarter, our core businesses demonstrated strong resilience. Leveraging its accumulated experience and strengths in products and technologies development, Kingsoft Office Group continued to pursue the strategy of 'multi-screen, cloud, content, artificial intelligence ("AI") and collaboration' and improve its products and services solutions, aiming to increase user stickiness for cloud and collaboration office scenarios. Regarding our online games business, we have adhered to the strategy of premium games and focused on the long-term development of core games."Mr. Tao ZOU, Chief Executive Officer of Kingsoft, added, "During the third quarter, our total revenue reached RMB1,837.1 million, up 22% year-on-year. Driven by the continued growth of individual and institutional subscription businesses, revenue from office software and services business reached RMB1,004.7 million, up 25% year-on-year.BUSINESS REVIEW Office Software and ServicesFor the third quarter of 2022, revenue from the office software and services business increased 25% year-on-year and 9% quarter-on-quarter to RMB1,004.7 million. The year-on-year increase was mainly due to the continued growth of Kingsoft Office Group's individual and institutional subscription businesses. In the third quarter, with a growing individual user base, Kingsoft Office Group strived to increase user engagement and stickiness and the proportion of long-term paying users by enhancing cloud services, enriching product portfolio and improving user experience. Kingsoft Office Group has dedicated itself to improving application performance for the government and enterprise subscription business by working on user efficiency, data management, information security and industry application scenarios in order to cater to the need of users which has led to a growing penetration of the enterprise-level product, Kingsoft Digital Office Platform. As for the institutional licensing business, our products continued to gain acceptance by increasing demand for domestic office software from government and enterprises, partially offset the high base for the same period last year and slower localization progress this year. Recently, we launched the official document version of WPS for the government users. Developed upon the professional version of WPS, it offers industry-leading functions such as official document work mode, a variety of official document templates, and document conversion to optimize document work efficiency of government users.Online Games and OthersRevenue from the online games and others business for the third quarter of 2022 increased 18% year-on-year to RMB832.4 million. The year-on-year increase was mainly due to the successful launch of several mobile games in the fourth quarter of 2021.During the review period, we continued to refine the core IP, enrich the content and enhance product quality through technological innovation aiming to bring players a better gaming experience. We celebrated the 13th anniversary of the flagship JX Online III PC game in August and launched Heng Dao Duan Lang, the anniversary expansion pack and a new section Dao Zong for the JX Online III PC game in October. The third season of JX Online III: Chivalrous Shen Jianxin, an animation series based on the JX Online III was released on Bilibili in July and was welcomed by gamers. The rating of the animation series on Bilibili reached a record high and the influence of JX IP has been further enhanced. In August, we launched the open beta across all platforms and a new expansion pack for JX World III in China. The launch has further enhanced user engagement and reached a broader player base laying a solid foundation for our long-term development."Mr. Jun LEI concluded, "Looking ahead, we will maintain our investment in R&D, further enhance the user experience for our 'cloud and collaboration' office services and expand new game genres. We will continue to focus on technology innovation and product upgrades and enhance competitiveness and efficiency, aiming for the long-term sustainable development of the Group."About Kingsoft Corporation LimitedKingsoft is a leading software and Internet services company based in China listed on the stock exchange of Hong Kong. It has three main subsidiaries including Kingsoft Office, Seasun and Kingsoft Shiyou. Following the implementation of its "mobile internet transformation" strategy, Kingsoft has completed the comprehensive transformation of its overall business and management models, and formed a strategic platform with office software and interactive entertainment as the pillars and cloud services and AI as the new directions. The Company has more than 7,000 staff around the world and enjoys a large market share in China. For more information, please visit http://www.kingsoft.com.Kingsoft Investor Relations:Francie Lu Tel: (86) 10 6292 7777 Email: ir@kingsoft.comFor further queries, please contact Hill+Knowlton Strategies Asia:Ovina Zhu Tel: (852) 2894 6315 Email: kingsoft@hkstrategies.com Copyright 2022 ACN Newswire. All rights reserved. (via SEAPRWire)