Kingsoft Corporation Limited (HKEx: 03888) announced its unaudited first-quarter results for the three months ended March 31, 2026, revealing a 284% year-on-year surge in profit attributable to owners of the parent, reaching RMB1,091.3 million. The company's total revenue increased 3% year-on-year to RMB2,416.7 million, driven by robust growth in its office software and services business, which offset a decline in online games revenue.
Revenue from office software and services rose 24% year-on-year to RMB1,613.2 million, representing 67% of total revenue. Kingsoft Office Group continued to deepen its core strategy of 'AI, Collaboration, and Internationalization,' with AI features driving growth in WPS AI monthly active users, conversion rates, and average revenue per paying user. The WPS 365 business saw expanded coverage among private enterprises and local state-owned enterprises, with increasing orders from large-scale customers. Additionally, demand for localization grew in the WPS software business, as government AI products were refined and rolled out across departments to support digital and intelligent transformation.
In contrast, revenue from online games and other businesses decreased 22% year-on-year to RMB803.5 million, primarily due to declining revenue from existing games. The company noted that Goose Goose Duck, released in January, focused on growing its user base and remained in early monetization stages. Kingsoft's core game JX3 Online maintained a stable active user base, with innovative in-game events during the Spring Festival and Lantern Festival, and an expansion pack released in April. The flagship version completed graphics quality optimization and advanced gameplay iteration, with ongoing dual-platform technology upgrades. The classic JX series of PC games continued long-term operations with content innovation to improve IP vitality.
Chairman Jun LEI commented, 'In the first quarter, we remained committed to technology empowerment and maintained strategic focus.' He highlighted that Kingsoft Office Group steadily advanced AI service capabilities across office scenarios, while the online games business focused on premium games and long-term operations, increasing investment in existing core games and actively expanding into new games.
CEO Tao ZOU added that the group's revenue reached RMB2,416.7 million, a 3% year-on-year increase. He noted that the office software and services business maintained steady growth, while the online games decline reflected reduced revenue from existing titles. Looking ahead, LEI stated that Kingsoft Office Group will continue to deepen its AI capabilities, focus on Agent product implementation, empower intelligent office scenarios through WPS 365, and advance international expansion. The online games business will strengthen R&D investment in core games and leverage AI to enhance content creation.
The implications of these results are significant for the industry. Kingsoft's strong office software performance underscores the growing importance of AI integration in productivity tools, potentially setting a benchmark for competitors. Meanwhile, the decline in online games revenue highlights the challenges of maintaining legacy game revenues amid market shifts, emphasizing the need for continuous innovation and new game launches. For investors, the profit surge signals effective cost management and strategic focus, while the company's emphasis on AI and international expansion could drive future growth.
