Kingsoft FY2026 Q1 Earnings Release

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contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability
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Kingsoft Corporation Limited 金山軟件有限公司
(Continued into the Cayman Islands with limited liability) (Stock Code: 03888)
ANNOUNCEMENT OF THE RESULTS
FOR THE THREE MONTHS ENDED 31 MARCH 2026
The board (“ Board”) of directors (the “
Directors”) of Kingsoft Corporation Limited (the
“ Company ”) announces the unaudited results of the Company and its subsidiaries (the “
Group” or
“ Kingsoft ”) for the three months ended 31 March 2026.
FINANCIAL HIGHLIGHTS
For the three months ended Year-on-
Quarter-on-
31 March 31 March
31 December year quarter
2026 2025
2025Change Change
RMB’000 RMB’000
RMB’000
%%
(Unaudited) (Unaudited)
(Unaudited)
Revenue 2,416,713 2,337,995
2,618,297 3(8)
Operating profit 395,304601,453
514,159 (34)(23)
Profit attributable to
owners of the parent
1,091,302 283,874
975,017 28412
RMB RMB
RMB
(Unaudited) (Unaudited)
(Unaudited)
Basic earnings per share 0.790.21
0.70 276 13
Diluted earnings per share 0.790.21
0.70 276 13

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OPERATIONAL HIGHLIGHTS
Office Software and Services
In March2026 In March
2025 In December
2025 Year-on-year
Change % Quarter-on-quarter
Change %
Monthly Active Devices
of WPS Office Globally* (Million)
672647
678 4(1)

As at
31 December 2025 As at
31 December 2024 Year-on-year
Change %
Accumulated paying subscribers** (Million)
Domestic
46.1541.70
11
Overseas
2.851.74
64

* Monthly Active Devices of WPS Office Globally are defined as the Monthly Active Devices of WPS Office across all
platforms, excluding WPS Docs, Kingsoft Powerword and other products.
** Accumulated paying subscribers are defined as paying individual subscribers in the past twelve months (excluding
onetime purchase).

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The unaudited condensed consolidated statements of profit or loss, compr\�ehensive income, financial
position and cash flows of the Group are listed below:
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the three months ended
31 March 31 March
31 December
2026 2025
2025
RMB’000 RMB’000
RMB’000
(Unaudited) (Unaudited)
(Unaudited)
Revenue
Office software and services
1,613,2241,301,469
1,750,360
Online games and others
803,4891,036,526
867,937

2,416,7132,337,995
2,618,297
Cost of revenue (486,847)(419,409)
(470,576)

Gross profit 1,929,8661,918,586
2,147,721
Research and development costs (941,761)(827,853)
(952,815)
Selling and distribution expenses (394,833)(340,468)
(462,013)
Administrative expenses (188,424)(160,288)
(202,423)
Share-based compensation costs (88,730)(53,685)
(91,653)
Other income 79,29869,120
86,196
Other expenses (112)(3,959)
(10,854)

Operating profit 395,304601,453
514,159
Other gains/(losses), net 81,605(22,291)
819,050
Finance income 145,793187,677
139,716
Finance costs (2,334)(44,889)
(266)
Share of profits and losses of:
Joint ventures
1,858,909(12,329)
162,894
Associates
(110,897)(152,724)
(132,359)

Profit before tax 2,368,380 556,897
1,503,194
Income tax expense (229,578)(48,333)
(219,755)

Profit for the period 2,138,802 508,564
1,283,439
Attributable to:
Owners of the parent
1,091,302 283,874
975,017
Non-controlling interests
1,047,500224,690
308,422

2,138,802 508,564
1,283,439
RMB RMB
RMB
(Unaudited) (Unaudited)
(Unaudited)
Earnings per share attributable to
ordinary equity holders of the parent
Basic
0.790.21
0.70

Diluted
0.790.21
0.70

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
For the three months ended
31 March 31 March
31 December
2026 2025
2025
RMB’000 RMB’000
RMB’000
(Unaudited) (Unaudited)
(Unaudited)
PROFIT FOR THE PERIOD 2,138,802 508,564
1,283,439
OTHER COMPREHENSIVE INCOME/(LOSS)
Other comprehensive income/(loss) that may be
reclassified to profit or loss in subsequent periods:
Exchange differences:
Exchange differences on translation into
presentation currency
89,05914,683
54,102
Reclassification to profit or loss from deemed
disposal of associates
79(60)
314
Share of other comprehensive income/(loss) of
associates
(25,878)3,369
(33,887)

Net other comprehensive income that may
be reclassified to profit or loss in subsequent
periods 63,26017,992
20,529

Other comprehensive income/(loss) that will not
be reclassified to profit or loss in subsequent
periods:
Exchange differences:
Exchange differences of the Company on
translation into presentation currency
(209,343)(16,953)
(102,897)
Equity investments designated at fair
value through other comprehensive income:
Changes in fair value, net of tax
—(9,352)
—
Share of other comprehensive income/(loss) of
an associate
(53)—
1,110

Net other comprehensive loss that will
not be reclassified to profit or loss in
subsequent periods (209,396)(26,305)
(101,787)

OTHER COMPREHENSIVE LOSS
FOR THE PERIOD, NET OF TAX (146,136)(8,313)
(81,258)

TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD 1,992,666500,251
1,202,181

Attributable to:
Owners of the parent
952,604281,760
898,021
Non-controlling interests
1,040,062218,491
304,160

1,992,666 500,251
1,202,181

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As atAs at
31 March 31 December
2026 2025
RMB’000 RMB’000
(Unaudited) (Audited)
NON-CURRENT ASSETS
Property, plant and equipment 2,396,4992,442,303
Investment properties 55,95556,338
Right-of-use assets 559,708318,223
Goodwill 185,564185,564
Other intangible assets 92,47780,958
Investments in joint ventures 2,823,182964,273
Investments in associates 4,441,6074,567,502
Financial assets at fair value through profit or loss 726,832729,853
Financial assets at amortised cost 415,294—
Deferred tax assets 90,26979,936
Other non-current assets 44,38238,311

Total non-current assets
11,831,7699,463,261
CURRENT ASSETS
Inventories 12,37412,615
Trade receivables 948,871788,145
Prepayments, other receivables and other assets 2,261,7342,195,899
Financial assets at fair value through profit or loss 3,157,0944,477,643
Restricted cash 8,7798,392
Cash and bank deposits 23,304,18922,587,238

Total current assets
29,693,04130,069,932
CURRENT LIABILITIES
Trade payables 604,818543,007
Interest-bearing bank loans 10,00010,000
Other payables and accruals 1,108,1321,510,605
Lease liabilities 65,9428,839
Contract liabilities 3,105,5423,023,581
Income tax payable 200,887196,918

Total current liabilities
5,095,3215,292,950
NET CURRENT ASSETS
24,597,72024,776,982
TOTAL ASSETS LESS CURRENT LIABILITIES
36,429,48934,240,243

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(CONTINUED)
As at As at
31 March 31 December
2026 2025
RMB’000 RMB’000
(Unaudited) (Audited)
NON-CURRENT LIABILITIES
Contract liabilities 1,170,0051,230,233
Deferred tax liabilities 539,162356,414
Lease liabilities 212,42816,414
Other non-current liabilities 10,44710,500

Total non-current liabilities
1,932,0421,613,561
NET ASSETS
34,497,44732,626,682
EQUITY
Equity attributable to owners of the parent
Issued capital 5,3545,420
Share premium account 3,365,7053,842,422
Treasury shares (229,853)(504,830)
Reserves 23,670,88122,691,334

26,812,08726,034,346
Non-controlling interests 7,685,3606,592,336

TOTAL EQUITY
34,497,44732,626,682

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the three months ended
31 March 31 March
31 December
2026 2025
2025
RMB’000 RMB’000
RMB’000
(Unaudited) (Unaudited)
(Unaudited)
Net cash flows from/(used in) operating activities 89,374(102,150)
1,132,840
Net cash flows from/(used in) investing activities 806,171(135,532)
(1,614,140)
Net cash flows used in financing activities (215,853)(275,429)
(245,513)

Net increase/(decrease) in cash and
cash equivalents 679,692(513,111)
(726,813)
Cash and cash equivalents at beginning of the period 3,121,1803,703,586
3,869,980
Effect of foreign exchange rate changes, net (31,838)(2,963)
(21,987)

Cash and cash equivalents at end of the period 3,769,0343,187,512
3,121,180
Non-pledged time deposits with original maturity
of over three months when acquired
19,535,15519,631,480
19,466,058

Cash and bank deposits as stated in
the condensed consolidated statement
of financial position 23,304,18922,818,992
22,587,238

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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
1. Corporate information
The Company was incorporated under the Companies Act of the British Virgin Islands on 20
March 1998. On 15 November 2005, the Company was redomiciled to the Cayman Islands
under the Company Law (2004 revision) of Cayman Islands. The Company’s shares (the
“ Shares ”) have been listed on the Main Board of The Stock Exchange of Hong Kong Limited
(the “ Stock Exchange ”) since 9 October 2007.
The Group is principally engaged in the following activities:
• research and development and provision of WPS Office, WPS 365, WPS AI and other
office products and services; and
• research and development of games, and provision of PC games, mobile games services,
etc.
The interim condensed consolidated financial statements for the three months ended 31 March
2026 were approved and authorized for issue in accordance with a resolution of the Board on 27
May 2026.
2. Basis of preparation and changes in material accounting policies
Basis of preparation
The interim condensed consolidated financial statements have been prepared in accordance
with International Accounting Standard (“ IAS”) 34
Interim Financial Reporting
, issued by the
International Accounting Standards Board.
The interim condensed consolidated financial statements do not include all the information and
disclosures required in the annual financial statements, and should be read in conjunction with
the Group’s annual financial statements as at 31 December 2025.

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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
2. Basis of preparation and changes in material accounting policies (continued)
Changes in material accounting policies
The accounting policies adopted in the preparation of the interim condensed consolidated
financial statements are consistent with those applied in the preparation of the Group’s
annual consolidated financial statements for the year ended 31 December 2025, which have
been prepared in accordance with IFRS Accounting Standards, except for the adoption of the
following amended IFRS Accounting Standards for the first time for the c\�urrent year’s financial
statements.
The Group has adopted the following revised IFRSs for the first time for the current year’s
financial statements.
Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement
of Financial Instruments
Annual Improvements to IFRS
Accounting Standards — Volume 11 Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and
IAS 7
None of the above amendments to IFRS Accounting Standards has had a significant financial
effect on the Group.
The Group has not early adopted any other standard, interpretation or amendment that has been
issued but is not yet effective.

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MANAGEMENT DISCUSSION AND ANALYSIS
For the Three Months Ended 31 March 2026
Revenue
Revenue for the first quarter of 2026 increased 3% year-on-year and decreased 8% quarter-on-
quarter to RMB2,416.7 million. Revenue from the office software and services, and online games
and others represented 67% and 33% of the Group’s total revenue for the first quarter of 2026,
respectively.
Revenue from the office software and services business for the first quarter of 2026 increased
24% year-on-year and decreased 8% quarter-on-quarter to RMB1,613.2 million. The year-on-
year increase was primarily attributable to growth across three principal businesses of Beijing
Kingsoft Office Software, Inc. (“ Kingsoft Office”) and its subsidiaries (collectively, “
Kingsoft
Office Group ”). The steady growth in WPS individual business was primarily driven by the
ongoing enhancement of AI capabilities, which drove growth in WPS AI monthly active users
and conversion rates. The strong growth in WPS 365 business was mainly driven by continuous
iteration of AI and collaboration capabilities, as well as the broader a\�nd deeper customer penetration
in private enterprises and local state-owned enterprises. The growth in WPS software business
was primarily supported by increasing demand from localization. The quarter-on-quarter decrease
mainly reflected the seasonal decrease from WPS software business, partially offset by continued
growth in WPS 365 business.
Revenue from the online games and others business for the first quarter of 2026 decreased 22%
year-on-year and 7% quarter-on-quarter to RMB803.5 million. The decreases were mainly due to
declined revenue from certain existing games, partially offset by revenue contributions from new
games.
Cost of Revenue and Gross Profit
Cost of revenue for the first quarter of 2026 increased 16% year-on-year and 3% quarter-on-quarter
to RMB486.8 million. The year-on-year increase was primarily due to higher revenue sharing costs
of new games, as well as greater server and bandwidth costs driven by the growing user base of the
office software and services business.
Gross profit for the first quarter of 2026 increased 1% year-on-year and decreased 10% quarter-
on-quarter to RMB1,929.9 million. The Group’s gross profit margin decreased by two percentage
points year-on-year and quarter-on-quarter to 80%.
Research and Development (“R&D”) Costs
R&D costs for the first quarter of 2026 increased 14% year-on-year and decreased 1% quarter-
on-quarter to RMB941.8 million. The year-on-year increase was primarily driven by increased
headcount and AI-related expenditures, reflecting the Group’s strategic focus on advancing AI
capabilities.

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Selling and Distribution Expenses
Selling and distribution expenses for the first quarter of 2026 increased 16% year-on-year and
decreased 15% quarter-on-quarter to RMB394.8 million. The year-on-year increase primarily
reflected higher personnel-related expenses and increased marketing expenditures for Kingsoft
Office Group. The quarter-on-quarter decrease was mainly due to the high base effect from
promotional activities for Kingsoft Office Group in the prior quarter.
Administrative Expenses
Administrative expenses for the first quarter of 2026 increased 18% year-on-year and decreased
7% quarter-on-quarter to RMB188.4 million. The year-on-year increase was mainly due to higher
personnel-related expenses and increased depreciation arising from the completion and operation
of Wuhan Campus. The quarter-on-quarter decrease primarily reflected a reduction in professional
service fees.
Share-based Compensation Costs
Share-based compensation costs for the first quarter of 2026 increased 65% year-on-year and
decreased 3% quarter-on-quarter to RMB88.7 million. The year-on-year inc\�rease was mainly due to
the grants of awarded shares to the selected employees of certain subsid\�iaries of the Company in the
last year.
Operating Profit before Share-based Compensation Costs
Operating profit before share-based compensation costs for the first quarter of 2026 decreased 26%
year-on-year and 20% quarter-on-quarter to RMB484.0 million.
Other Gains/(Losses), net
Net other gains for the first quarter of 2026 were RMB81.6 million, compared with losses of
RMB22.3 million for the first quarter of 2025 and gains of RMB819.1 mill\�ion for the fourth quarter
of 2025, respectively. The gains in the fourth quarter of 2025 were mainly due to the recognition of
a gain on deemed disposal of Kingsoft Cloud Holdings Limited as a result of the dilution impact of
its issuance of new shares.
Share of Profits and Losses of Joint Ventures
Share of profits of joint ventures were RMB1,858.9 million for the first quarter of 2026, compared
with losses of RMB12.3 million for the first quarter of 2025 and profits of RMB162.9 million for
the fourth quarter of 2025, respectively. The profits in this quarter were primarily due to the net
unrealised gains on equity investments.

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Share of Profits and Losses of Associates
Share of losses of associates were RMB110.9 million for the first quarter of 2026, compared with
losses of RMB152.7 million and RMB132.4 million for the first quarter and fourth quarter of 2025,
respectively.
Income Tax Expense
Income tax expense for the first quarter of 2026 was RMB229.6 million, c\�ompared with income tax
expense of RMB48.3 million and RMB219.8 million for the first quarter and the fourth quarter of
2025, respectively.
Profit Attributable to Owners of the Parent
As a result of the reasons discussed above, profit attributable to owners of the parent for the
first quarter of 2026 was RMB1,091.3 million, compared with profit of RMB283.9 million and
RMB975.0 million for the first quarter and the fourth quarter of 2025, respectively.
Profit Attributable to Owners of the Parent before Share-based Compensation Costs
Profit attributable to owners of the parent before share-based compensation costs is profit
attributable to owners of the parent excluding the effect of share-based compensation costs
attributable to owners of the parent.
We believe that the profit attributable to owners of the parent before share-based compensation
costs will enable the investor to better understand the Group’s overa\�ll operating performance. When
assessing our operating performance, you should not consider this data in isolation or as a substitute
for our profit or any other operating performance measure that is calculated in accordance with
IFRS Accounting Standards. In addition, our profit attributable to owner\�s of the parent before share-
based compensation costs may not be comparable to similarly titled measures utilized by other
companies.
Profit attributable to owners of the parent before share-based compensation costs for the first
quarter of 2026 was RMB1,138.9 million, compared with profit of RMB316.0 million and
RMB1,025.5 million for the first quarter and the fourth quarter of 2025, respectively. The net profit
margin excluding the effect of share-based compensation costs was 47%, 14% and 39% for the
three months ended 31 March 2026, 31 March 2025 and 31 December 2025, respectively.

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Liquidity and Financial Resource
The Group had a strong cash position towards the end of the reporting period. As at 31 March 2026,
the Group had major financial resources in the forms of cash and bank deposits and restricted cash
amounting to RMB23,304.2 million and RMB8.8 million, respectively, which together represented
56% of the Group’s total assets.
As at 31 March 2026, the Group’s gearing ratio, representing total li\�abilities divided by total assets,
was 17%, compared with 17% as at 31 December 2025.
Note:
The cash resources which the Group considered in cash management include cash and bank deposits, restricted cash, part of
financial assets at fair value through profit or loss, and financial assets at amortised cost. As at 31 March 2026, the aggregate
amount of cash resources of the Group was RMB26,885.1 million.
Foreign Currency Risk Management
As at 31 March 2026, RMB4,035.0 million of the Group’s financial assets were held in deposits,
financial assets at fair value through profit or loss, and financial assets at amortised cost
denominated in non-RMB currencies. As there are no cost-effective hedges against the fluctuation
of RMB, there is a risk that we may experience a loss as a result of any foreign currency exchange
rate fluctuation in connection with our deposits and investments.
Net Cash Generated from/(Used in) Operating Activities
Net cash generated from/(used in) the operating activities reflects the Group’s profit for the three-
month period mentioned above, as the case may be, as adjusted for non-cash items such as share of
profits and losses of joint ventures and associates, finance income, and share-based compensation
costs, as well as the effect of changes in certain items of statement of financial position such as
contract liabilities, other payables and accruals.
Net cash generated from operating activities was RMB89.4 million for the three months ended
31 March 2026, net cash used in operating activities was RMB102.2 million for the three months
ended 31 March 2025, and net cash generated from operating activities was RMB1,132.8 million
for the three months ended 31 December 2025, respectively.
Capital Expenditures
Capital expenditures represent cash payments for fixed assets and intangible assets. Cash used for
capital expenditures was RMB81.4 million, RMB121.2 million and RMB67.1 million for the three
months ended 31 March 2026, 31 March 2025 and 31 December 2025, respectively.

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MANAGEMENT COMMENTS
Mr. Jun LEI, Chairman of the Company, commented, “In the first quarter, we remained committed
to technology empowerment and maintained strategic focus. Kingsoft Office Group continued to
deepen its core strategy of ‘AI, Collaboration, and Internationalization’, and steadily advanced the
implementation of AI service capabilities across office scenarios. For t\�he online games business, we
focused on premium games and long-term operations, increased investment in existing core games,
and actively expanded into new games.”
Mr. Tao ZOU, Chief Executive Officer of the Company, added, “In the first quarter, the Group
recorded revenue of RMB2,416.7 million, representing a year-on-year increase of 3%. Revenue
from the office software and services business reached RMB1,613.2 million, a year-on-year
increase of 24%, maintaining steady growth. Revenue from online games and others business
amounted to RMB803.5 million, a year-on-year decrease of 22%, primarily \�reflecting the decline in
revenue from existing games. After release in January, Goose Goose Duck \�( 鵝鴨殺) has focused on
growing its user base, and is still in early monetization stage.
For WPS individual business, Kingsoft Office Group continued to upgrade and iterate its AI
products, while further enhancing refined operations in both domestic and overseas markets. The
continued enhancement of AI features effectively drove growth in WPS AI monthly active users,
conversion rates, and average revenue per paying user. For WPS 365 business, we continued to
upgrade AI and collaboration product capabilities. The coverage of private enterprises and local
state-owned enterprises steadily expanded in both breadth and depth, while orders from large-scale
customers continued to increase. For WPS software business, the demand f\�or localization continued
to grow. Government AI products were continuously refined, upgraded and subsequently rolled
out in an orderly manner across government departments, providing robust support for customers’
digital and intelligent transformation.
For online games business, JX3 Online maintained a stable active user base. As for the content,
innovative in-game events were launched during the Spring Festival and Lantern Festival, and
an expansion pack was released in April, continuously enriching content offerings. As for the
product, the flagship version completed graphics quality optimization and advanced gameplay
iteration, with ongoing upgrades to dual-platform technology. We will continue to increase R&D
investment, enhance game quality, and further consolidate our core user ecosystem. The classic
JX series of PC games maintained long-term operations, delivered continuous content innovation,
and improved IP vitality. Goose Goose Duck performed well in the domestic market. The localized
content innovations and social gameplay were well received by players. The user base continually
expanded and the gross receipts gradually grew. We will focus on product refinement and long-
term operations for community ecosystem, and enhance user engagement through high-quality
interactive experiences.”

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Mr. Jun LEI concluded, “Looking ahead, Kingsoft Office Group will continue to deepen its AI
capabilities layout, focus on the implementation of Agent products, empower intelligent office
scenarios through WPS 365, and advance international expansion. The online games business will
further strengthen R&D investment in core games and leverage AI to enhance content creation,
providing players with high-quality gaming experience.”
By order of the Board
Kingsoft Corporation Limited Jun LEI
Chairman
Hong Kong, 27 May 2026
As at the date of this announcement, the Executive Director is Mr. Tao ZOU; the Non-executive Directors are Messrs. Jun LEI,
Pak Kwan KAU and Leiwen YAO; the Independent Non-executive Directors are Ms. Wenjie WU, Messrs. Zuotao CHEN and
Bo DU.