Welcome!

Mobile IoT Authors: Elizabeth White, Dean Madison, Yeshim Deniz, Shelly Palmer, Liz McMillan

News Feed Item

Kingsoft Announces 2014 Interim Results



- Revenue Records Solid and Continuous Growth
- Global Mobile MAU Hits New Record High


Hong Kong, Aug 19, 2014 - (ACN Newswire) - Kingsoft Corporation Limited ("Kingsoft" or the "Company;" SEHK stock code: 03888), a well-known Chinese software and Internet services company, announced its unaudited quarterly and interim results for the three and six months ended 30 June 2014 respectively.

For the second quarter of 2014, revenue increased 11% quarter-over-quarter and 51% year-over-year to RMB750.5 million. Revenue from the online game, Cheetah Mobile and office software and other businesses represented 41%, 47% and 12%, respectively, of the Company's total revenue. Gross profit increased 11% quarter-over-quarter and 47% year-over-year to RMB634.2 million. Operating profit before share-based compensation costs increased 20% quarter-over-quarter and 1% year-over-year to RMB180.1 million.

For the first half of 2014, revenue increased 50% year-over-year to RMB1,426.1 million. Revenue from the online game, Cheetah Mobile and office software and other businesses represented 42%, 45% and 13%, respectively, of the Company's total revenue. Gross profit surged 46% to RMB1,203.2 million. Operating profit before share-based compensation costs decreased 5% year-over-year to RMB331.7 million.

For the first half of 2014, the Company has made proactive investments in its mobile internet business to support its long term business growth and strategy in mobile development and market expansion. As a result, the Company has achieved significant progress in the mobile internet business as its global Mobile MAU skyrocketed 242% year-over-year to a new record of 344 million in June 2014. R&D costs, net of government grants, increased 67% year-over-year to RMB419.1 million, primarily attributable to the expansion of the Company's mobile application development teams. As a result, the Company has launched and will continue to introduce new products throughout the year. The company has also been continuously committed to improving the product quality and enhancing the user experience across all of its business lines. Selling and distribution expenses increased 132% year-over-year to RMB323.6 million for the first half of 2014, primarily driven by higher marketing expenses as Cheetah Mobile continued to extend its mobile internet penetration in the global market. As a result, Mobile MAU from Cheetah Mobile soared 255% year-over-year to 284.3 million in June 2014.

Mr. Jun LEI, Chairman of Kingsoft, commented, "During the first half of 2014, we have achieved significant progress in our mobile internet business. We have continued to gain traffic share and competitive advantage with the rapid growth of our mission critical apps. In the coming quarters, we will continue to reinforce our core competence, expand our mobile user base, strengthen our position in mobile security, mobile office and mobile game, and speed up our global penetration."

Dr. Hong Jiang ZHANG, Chief Executive Officer of Kingsoft, added, "The second quarter of 2014 marked another quarter of consistent and strong top-line growth with revenue posted a growth of 11% quarter-over-quarter and 51% year-over-year to RMB750.5 million. I am pleased with the results, particularly the progress of mobile monetization. All of our business lines have set new records in terms of both revenue and operational results. The decrease in operating profit primarily reflected our proactive investments in mobile applications development and market expansion, and is in line with our strategy. As the mobile Internet is growing tremendously, we firmly believe that it is the right time to make investment in mobile development and market expansion in order to support our long-term business growth. The rapid increase of our overall mobile user base has shown that our strategy is effective."

BUSINESS REVIEW

Online Game Business
For the second quarter of 2014, the revenue from the online game business increased 4% quarter-over-quarter and 14% year-over-year to RMB307.5 million. For the first half of 2014, the revenue from the online game business increased 12% year-over-year to RMB602.4 million, outperforming the growth rate of the MMO gaming market in China. The continuous increases were primarily due to the sustained strong performance of JX Online III driven by the continuous optimization and innovation of the game through expansion packs on quarterly basis, and the Company's constant efforts in improving game experiences.

JX Online III continued to achieve a 64% year-over-year growth for the first half of 2014 and accounted for 54% of the revenue for online game. On 21 July, the "Polished" version of JX Online III was launched and has gained solid ground in terms of user population, users' rating and revenue. There are also 12 mobile games currently under development, 4 of which will be in close beta testing in the third quarter.

Cheetah Mobile
In the second quarter of 2014, the revenue and operating metrics of Cheetah Mobile achieved impressive growth. Supported by the significant progress in mobile monetization, and robust growth in traffic from Duba.com personal start page, the revenue from Cheetah Mobile increased 21% quarter-over-quarter and 146% year-over-year to RMB353.6 million for the second quarter of 2014. For the first half of 2014, the revenue from Cheetah Mobile soared 140% year-over-year to RMB646.4 million, and approximately 18% of its revenue was from mobile services, compared with approximately 3% in the first half of 2013.

Mobile MAU from Cheetah Mobile increased 28% quarter-over-quarter and increased 255% year-over-year to 284.3 million in June 2014. Clean Master, a flagship mobile application launched in September 2012, has rapidly gained an extremely large user base to be a "super app". The MAU of Duba.com Personal Start Page increased 25% quarter-over-quarter and 70% year-over-year to 67.6 million in June 2014. Other new products launched during the first half of 2014 were CM Security and CM Browser, which have also quickly ramped up user traffic.

On 8 May 2014, Cheetah Mobile was successfully listed on the New York Stock Exchange, and this initiative helped Kingsoft to strengthen and accelerate its mobile and global expansion strategies. In June 2014, approximately 67% of mobile MAU of Cheetah Mobile was from overseas markets, mostly the United States, Asia (excluding China) and Europe, compared to approximately 53% in December 2013. This significant increase shows the mobile mission critical applications, particularly Clean Master, have become very popular globally, and the Company's efforts in mobile and global expansion were a great success during the first half of 2014.

Office Software and Others
For the second quarter of 2014, the revenue from the office software and other business increased 2% quarter-over-quarter and 9% year-over-year to RMB89.4 million. For the first half of 2014, the revenue increased 21% year-over-year to RMB177.2 million. Revenue from WPS for the first half of 2014 grew 30% year-over-year to RMB132.4 million. The online marketing revenue from WPS is becoming a growth catalyst supported by the increasing user traffic of WPS Personal Edition and Docer.com.

The MAU of WPS Personal Edition recorded 73 million in June 2014 compared to 56 million in June 2013. The global mobile MAU of WPS Office continued to grow robustly, exceeding 50 million in June 2014 compared to 21 million in June 2013. In addition to user base expansion, the Company was committed in improving the quality of the products in WPS and compatibility with other enterprise application systems to enhance the products' competitiveness and penetration of enterprise markets. During the second quarter of 2014, WPS Mobile Office for Android 6.0 was launched and new features, including a simplified user interface, phone reading mode redesign, and document synchronization were introduced to enhance the mobile user experience with the products.

The Company's growth in the enterprise data storage services has been accelerated, driven by the rapid increase of users' data from Xiaomi, WPS and Kuaipan. The daily upload of data into storage services is approximately 250T at the end of June 2014. The Company will focus on optimizing the underlying storage framework and providing its users with stable, secure and cost-efficient storage services. Also, the one-stop game cloud service platform has grown robustly, and the Company provided game cloud services to approximately 50 third party game developers since the services are launched. In the second quarter, the Company improved the platform layout based on the feedbacks from third party developers. These progresses have laid a solid ground for Kingsoft to become a leading player in China cloud storage and computing market.

"We had an impressive and encouraging first half of 2014. With the continuous proactive investment in mobile businesses, strengthened mobile monetization of Cheetah Mobile, continuous optimization of JX Online III, four mobile games to be launched, strong sales and fast growing users base of WPS as well as advantageous partnerships with Xiaomi, Tencent, Sogou and Xunlei, we are well positioned to achieve our goal in 2014." concluded Dr. ZHANG.

About Kingsoft Corporation Limited

Kingsoft is a leading Chinese software and Internet service company with its shares listed on the Stock Exchange of Hong Kong Limited. Since the commercial launch of its first office applications software, WPS 1.0, in 1989 followed by more than 20 years of innovative endeavors, Kingsoft has become well recognized as a leading brand in China. Kingsoft has also rejuvenated itself by successfully transforming from "the King of Packaged Software" to an internet technologies and services provider.

Kingsoft provides a range of products and services across devices and platforms, and its main business encompasses online game, internet software, mobile applications, office software, and cloud storage and computing services. The Company utilizes the internet as an effective channel to market and distribute its products and services, and has built an extensive sales and distribution network.

Enhancing the quality of the digital lifestyle has been the mission of Kingsoft. Kingsoft will continue developing new products, expanding our products and services across the internet especially the mobile internet and expanding its market share in China, while vigorously penetrating overseas markets.

For more information, please visit www.kingsoft.com


Source: Kingsoft Corporation Limited

Contact:
Kingsoft Corporation Limited
Ms. Francie Lu
Tel:(86) 10 62927777 ext.5581
Email: [email protected]

Strategic Financial Relations (China) Limited
Ms. Nan Dong
Tel: (852) 2527 1628
Email: [email protected]





Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...