Q1 2026 Kingsoft Corporation Ltd Earnings Call (Chinese, English) Transcript
Key Points
- Kingsoft Corp Ltd (KSFTF) recorded a revenue of RMB2.042 billion in the first quarter, marking a year-on-year increase of 3%.
- Revenue from the office software and services business increased by 24% year-on-year, reaching RMB1.61 million, indicating steady growth.
- The WPS 365 business saw a significant revenue increase of 61% year-on-year, driven by AI and collaboration product upgrades.
- The company maintained a strong cash position with cash resources of RMB27 billion as of March 31, 2026.
- Kingsoft Office Group's R&D investment in AI and collaboration showed positive results, enhancing growth across all core business segments.
- Revenue from the online games and others business decreased by 22% year-on-year, primarily due to a decline in revenue from existing games.
- Gross profit margin decreased by 2 percentage points year-over-year and quarter-over-quarter to 80%.
- Research and development costs increased by 40% year-over-year, reflecting higher expenditures on AI capabilities.
- Selling and distribution expenses rose by 60% year-over-year, driven by higher personnel-related expenses and increased marketing expenditures.
- Operating profit before share-based compensation cost decreased by 26% year-over-year, indicating pressure on profitability.
Welcome to Kingsoft Corporation first-quarter 2026 earnings conference call. I'd like to hand the conference over to your first speaker today, Ms.Yinan Li, IR Director of Kingsoft Corporation. Please go ahead.
Thank you operator. Ladies and gentlemen, good evening and good morning. I would like to welcome everyone to our 2026 first quarter earnings call. I'm Li Yinan, the Investor Relations Director of Kingsoft. I would like to start by reminding you that some information provided during the earnings call may include forward-looking statements, which may not be relied upon in the future for various reasons.
These forward-looking statements are based on our information and information from other sources, which we believe to be reliable. Please refer to the other publicly disclosed documents for detailed discussion of risk factors which may affect our business and operations. Additionally, in today's earnings call, the management will deliver prepared remarks in both Chinese and English.
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