Kingsoft Office posts 140% profits surge

Beijing Kingsoft Office Software Inc, which offers online office processing tools like Microsoft’s Offices, posted a net profit surge of 140 percent in the first half, thanks to increased paid subscriptions and booming remote work demands during the pandemic, the STAR-listed company said on Wednesday. 

In the first half, Kingsoft Office’s net profit jumped 143.3 percent to 357 million yuan (US$51 billion), close to the whole year profit in 2019 of 400 million yuan. Revenue was 916 million yuan, up 33.6 percent from a year ago, the company said in a statement to the Shanghai Stock Exchange on Wednesday.

The company, with shareholders including tech tycoon Lei Jun, attributed the income jump to more users, especially paid subscribers. 

Its monthly active user base had risen to 454 million by June compared with 348 million a year ago. The paid personal subscriber base hit a record 16.8 million, double the figure a year ago, Kingsoft Office said.

COVID-19, which hits most industries’ business, also brings 10 IT business opportunities to create totally 1.5 trillion yuan (US$215 billion) revenue in China in 2020. The unique opportunities cover 5G applications, remote work and artificial intelligence, according to researcher International Data Corp. 

Besides subscription business, Kingsoft Office also cashes in through software licenses and Internet advertising. By June, the company had established product optimization with 190 domestic industry partners covering office software, type input, mail, tablet and other sectors, the company said in a statement to Shanghai Daily. 

Kingsoft Office shares fell 1.85 percent to close at 371 yuan, compared with a 2.68 percent drop in STAR 50 Index on Wednesday. Its market value reached 171 billion yuan, ranking No. 2 by market value of all STAR companies.