Kingsoft Corp Ltd Adr

Good day and thank you for standing by. Welcome to the Q1 2024 Kingsoft Corporation Earnings Conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Yinan Li, IR Director of Kingsoft. Please go ahead.

Thank you, operator. Ladies and gentlemen, good evening and good morning. I would like to welcome everyone to our 2024 first quarter earnings call. I'm Yinan Li, the IR 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 reliable in the future for virus reasons. These forward-looking statements are based on our information and information from our sources, which we believe to be reliable. Please refer to the other publicly disclosed documents or detailed discussion on 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. A third-party interpreter will provide a consecutive interpretation into English. During the Q&A session, we will accept questions in both English and Chinese with alternating interpretations provided by the third-party interpreter. On-site translation is solely to facilitate communication during the conference call. In case of any discrepancies between the original remarks and the translation, the statements made by the management will prevail. Having said that, please allow me to introduce our management team who joined us today. Mr. Zou Tao, our executive director and CEO, and Ms. Li Yi, our acting staff. Now, I'm turning the call to Mr. Zou.

Hello, everyone. Welcome to the first quarter of today's software in 2024. In the first quarter, the overall opening of the Group in 2024 achieved a double growth in total income and profits. The total income reached RMB21.3 billion, which increased by 8% in total. The operating profit reached RMB6.02 billion, which increased by 31% in total. The operating profit rate increased by 28%, which increased by 5%. The estimated net profit is 2.8 billion yuan, which is 48% higher than before. The first quarter of today's office income is 12.3 billion yuan, which is 16.5% higher than before. Game and other business income is 9.1 billion yuan. Next, I would like to focus on the performance of the first quarter of 2024. This quarter, Today's office continues to maintain a stable business environment Surrounded by multi-level cloud content AI cooperation The strategy continues to invest in the field of cooperation and AI research and development Through technical innovation, product delivery, performance improvement, etc. Continuous increase in product competitiveness To achieve new productivity in the field of office The first breakthrough of 600 million for the main product, Yuehuo equipment, reached 602 million, which is a 2.2% increase. Of which, the PC version of Yuehuo equipment is 270 million, which is a 7.1% increase. In terms of personal subscription, by continuously enriching the rights of members, increasing user annuality and return transfer, this quarter achieved a revenue of 7.3 billion yuan. with a growth of 24.8%. PSAI released the product price at the end of March 2024, entered the gray area test, and initially started commercialization. In terms of institutional subscription, we continue to improve the product system, improve service experience, widen the ecosystem, actively pushing for the transformation of cloud-based cooperation, and the sales model of institutional subscription has entered a transitional stage. This quarter, the actual income of 2.4 billion yuan has increased by 13.6% in total. In terms of institutional authorization, it has been promoted by the addition of new purchase orders by the party government. The institutional authorization business has increased. This quarter, the income of 1.94 billion yuan An increase of 6.31% in the same ratio Surrounding the clouding of enterprises and organizational offices Cooperative and intelligent development trends On April 9th, we launched a new upgraded office new productivity platform WPS365 Covering upgraded WPS Office WPS AI Business Edition and WPS Cooperative For users to open up once an AI office The AI business version is used by customers to build a business platform. It is divided into three core products such as AI Hub, AI Dobbs, and Copilot Blocks. AI Hub reduces the threshold of the enterprise deployment of large models and accumulates the AI capabilities of mainstream large models in China. For example, Minimax, Sipu AI, Wenxinyan, We are in the big model field of positioning is the application side with more than a hundred domestic models for fitting and matching Realize the basic AI service of unboxing and use This also allows users to overcome the difficulty of choosing a large model and greatly reduce the use threshold AI box to solve user digital asset management of the focus will be traditional cloud storage One upgrade to a smart document library allows smart creation to have a basis. Complete document transmission system protection information is not more powerful. Copilot Pro can optimize the user's workflow through natural language to achieve the automation of tasks, help operators use natural language to drive BI product analysis data, It can also use the 365 API and the free API of the enterprise to solve office automation needs. The RPCS AI enterprise version improves team cooperation efficiency, management, development projects, low-cost building, and review processes, and provides important support. Game business, under the general guidance principle of the product strategy, focusing on the deep-rooted and classic series of Genshin Impact, and continue to vigorously set up new racing tracks to expand new games. The flagship game, Genshin Impact 3, shows a strong vitality and maintains stable development. The mobile version of Genshin Impact 3 has now opened multiple rounds of testing, and continues to work together with users to polish the game. The quality of the product is constantly improving. The game will be released in mid-June, bringing players a multi-faceted fusion experience, and successfully realizing the trend of online games on all platforms. While we are growing in the category of martial arts games, the exploration of the new track has also been step-by-step. The 2D design of the game has become more and more popular, Since its official launch on July 20, 2023, it has maintained a high level of user-friendly communication, user-friendly experience, highly valued user feedback and suggestions, and continued improvement in the performance and gameplay of the screen. In the first quarter, the number of active users and income of the game has been significantly increased, and the popularity has been constantly increasing. The sci-fi mecha game The release date is March. The game has been tested and optimized in mainland China and overseas regions. The promotional video has been on Steam for the first time since it was released last December. It is on the Top 100 of the global wish list. It has also been interviewed by international famous game media such as IGN and PC Gamer. Looking forward to the future, Jinshan Office will continue to uphold the multi-level cloud content collaboration AI strategy, firmly invest in AI and collaboration, and continue to explore WS AI in the landing of office scenarios in various industries. Game business will firmly focus on high-quality game strategy, and it will also be effective in the promotion of new product-based strategy. We will continue to actively listen to the players' voices, Hi, now we are turning the call to translator.