Software developer Kingsoft Corp. Ltd. (3888.HK) said on Monday that its Beijing Kingsoft Office Software Inc. (688111.SH) subsidiary expects to report its net income totaled between 2.02 billion yuan ($296 million) and 2.31 billion yuan in the first quarter, up about 4.0 to 4.7 times year-on-year. It said the unit’s quarterly revenue is expected to total between 1.57 billion yuan and 1.66 billion yuan, up 20% to 27.7% year-on-year.
The strong profit growth was mainly driven by investment gains, as some externally invested funds recorded sizable returns during the period. Excluding those gains, the company’s first-quarter net profit was between 487 million yuan and 544 million yuan, up 21% to 35% year-on-year. Its net profit excluding non-recurring items was projected at 465 million to 519 million yuan, up 19% to 33%.
The company said all three of its main segments, including personal, enterprise and government, grew, led by strong AI driven demand for WPS 365, while IT substitution and government AI adoption also supported its performance.
Kingsoft’s Hong Kong-listed stock opened higher on Tuesday and was trading at HK$23.58 by the midday break, up 5.36%.
By Lee Shih Ta
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