Beijing Kingsoft Office Software (688111) Q4 2025 earnings summary

Executive summary

• Achieved revenue of RMB 5.93 billion in 2025, up 15.78% year-over-year; net profit attributable to shareholders reached RMB 1.84 billion, up 11.63% year-over-year.

• WPS 365 business revenue surged 64.93% year-over-year; WPS personal and software businesses grew 10.42% and 15.24% respectively.

• R&D investment reached RMB 2.10 billion, accounting for 35.34% of revenue, with 3,979 R&D staff, 65.79% of total employees.

• Cash dividend proposal: RMB 12.5228 per 10 shares, totaling RMB 580 million, representing 31.58% payout ratio.

Financial highlights

• Operating cash flow: RMB 2.50 billion, up 13.93% year-over-year.

• Gross margin for software business: 85.97%, up 0.81 percentage points year-over-year.

• Basic EPS: RMB 3.97, up 11.52% year-over-year; diluted EPS: RMB 3.96.

• Net assets attributable to shareholders: RMB 12.85 billion, up 13.19% year-over-year.

• R&D expense ratio increased by 2.23 percentage points to 35.34%.

Outlook and guidance

• 2026 focus: AI, collaboration, and internationalization, with emphasis on AI Agent product R&D and global deployment.

• Plan to further enhance WPS 365 as a leading AI collaboration platform and expand global user base.

• Continued investment in AI R&D and talent, aiming for high-quality growth and international competitiveness.