Kingsoft (3888) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of RMB 10.38 billion in 2024, up 21% year-on-year, with operating profit rising 64% to RMB 3,646.6 million and margin improving to 35% from 26% in 2023.

• Profit attributable to owners surged 221% to RMB 1,551.6 million.

• Balanced revenue contributions from office software/services and online games, each contributing about 50%.

• Growth driven by WPS 365, AI-powered features, and strong performance from JX3 Online and Snowbreak.

• Final dividend proposed at HK$0.15 per share, pending AGM approval.

Financial highlights

• Q4 revenue rose 21% year-on-year to RMB 2,792 million, but declined 4% sequentially.

• Office software/services revenue up 12% year-on-year to RMB 5,121.1 million; online games/others up 31% to RMB 5,196.8 million.

• Gross profit margin improved to 83% annually and 84% in Q4.

• Net profit attributable to owners was RMB 1,551.6 million for the year, up from RMB 483 million in 2023.

• Cash and bank deposits at year-end were RMB 23,815 million.

Outlook and guidance

• Confident in continued growth for 2025, driven by strong office and stable game performance, with new games like Mecha Break and Fate of Sword: Zero targeting global markets.

• Ongoing investment in AI, technology, and product innovation, with WPS 365 upgrades and global expansion planned.

• Shareholder returns to be maintained through dividends and share repurchases.