API Journal Authors: Liz McMillan, Rich DeFabritus, Pat Romanski, Derek Weeks, Elizabeth White

News Feed Item

Kingsoft Announces 2014 First Quarter Results

- Cheetah Mobile Strengthens Monetization Capabilities
- JX Online III has Grown for the Past 11 Consecutive Quarters

Hong Kong, May 28, 2014 - (ACN Newswire) - Kingsoft Corporation Limited ("Kingsoft" or the "Company"; SEHK: 03888), a well-known Chinese software and Internet service company, announced its unaudited quarterly results for the three months ended 31 March 2014.

During the period under review, the revenue of Kingsoft increased 1% quarter-over-quarter and 48% year-over-year to RMB675.6 million. Revenue from the online game, Cheetah Mobile and office software and others represented 44%, 43% and 13% respectively, of the Company's total revenue for the first quarter of 2014. Gross profit for the first quarter of 2014 decreased 2% quarter-over-quarter and increased 44% year-over-year to RMB 569.0 million. Profit attributable to owners of the parent for the first quarter of 2014 increased 48% quarter-over-quarter and 26% year-over-year to RMB 246.2 million.

Dr. HongJiang Zhang, Chief Executive Officer of Kingsoft, said, "We are pleased to report another strong first quarter results. Total revenue achieved a new record of RMB675.6 million, an increase of 48% year-over-year. We will make proactive investments in mobile business development and market expansion in 2014, though it may have adverse impact on our operating margin in the short term. We firmly believe that these investments are important to support our long term business growth and help us to align our strategy with tremendous mobile opportunities."
                                     For the 3 months ended 
                                 March 31   Change   Dec 31   Change
RMB'000 (unaudited)         2014     2013   YoY(%)     2013   QoQ(%)
Revenue                  675,625  456,859     48%   668,752      1%
-Online Games            294,911  266,666     11%   287,724      2%
-Cheetah Mobile          292,847  125,974    132%   249,833     17%
-Office Software, Others  87,867   64,219     37%   131,195    -33%
Gross Profit             569,012  395,278     44%   579,072     -2%
Profit Attributable to
 Owners of the Parent    246,237  195,914     26%   166,301     48%
Basic EPS (RMB Cents)         21       17     24%        14     50%

                                  March 31      Dec 31     March 31
                                      2014        2013         2013
Daily Av. Peak Concurrent Users    599,384     632,171      631,098
Monthly Average Paying Users     1,972,027   1,869,433    1,768,190
Monthly Average Revenue per
     Paying User (RMB)                  48          49          47
Mobile Monthly Active Users (Mil)      223         166          46
Mobile User (Mil)                      502         347         N/A
% of Mobile MAU from Overseas Markets  63%         53%         N/A
MAU of Duba.com Personal 
     Start Page (Mil)                   54         47           38

Online Games Business

Revenue from the online game business increased 2% quarter-over-quarter and 11% year-over-year to RMB 294.9 million in the first quarter of 2014, even under the adverse impact of Chinese New Year holidays. With the continuous improvement of game experiences, JX Online III has grown for the past eleven consecutive quarters. In April 2014, Kingsoft launched a new expansion "Zhu Lu Zhong Yuan" for JX Online III and had received positive feedbacks. For now, more than five mobile games are under full swing development, of which two to three games are in the pipeline for release.

Monthly average paying accounts ("APA") for the Company's online games for the first quarter of 2014 increased 5% quarter-over-quarter and 12% year-over-year to 2 million. Daily average peak concurrent users ("ADPCU") for the Company's online games for the first quarter of 2014 reached 0.60 million while the monthly ARPU for the Company's online games for the first quarter of 2014 achieved RMB48.

Cheetah Mobile

Due to the growth in revenue from the internet-value added and online marketing services driven by contribution from mobile games and increasing traffic from Cheetah Mobile platform, revenue from Cheetah Mobile for the first quarter of 2014 increased 17% quarter-over-quarter and 132% year-over-year to RMB292.8 million.

Cheetah Mobile is now the #1 mobile application publisher in the Google Play Tools category based on worldwide downloads in March 2014, according to App Annie, and the #2 internet security software provider in China according to iResearch as of March 2014. Mobile monthly active users ("MAU") of Cheetah Mobile in March 2014 has increased 385% year over year from 46 million to 223 million, of which 63% are from the overseas markets. Mobile user in the first quarter of 2014 has increased 45% quarter over quarter from 347 million to 502 million. In the period under review, Cheetah Mobile strengthened its mobile monetization capabilities and had generated approximately 17% of its revenue from mobile services, compared with 11% in the fourth quarter of 2013. On 8 May 2014, Cheetah Mobile made its trading debut on the New York Stock Exchange.

Office Software and Others

Revenue from the office services and other business for the first quarter of 2014 decreased 33% quarter-over-quarter and increased 37% year-over-year to RMB87.9 million. The quarter-over-quarter decrease was mainly due to the adverse seasonal impact on WPS Office. The solid year-over-year increase was primarily attributable to record growth in revenue from WPS Office and online marketing revenue from WPS Office. The MAU of WPS Personal Edition continued to rise to over 66 million. The global MAU of WPS Mobile Office ramped up to 43 million in March 2014.

The daily data storage of Kingsoft's cloud storage services is close to 200T at the end of first quarter of 2014. Meanwhile, the Company focused on establishing a one-stop cloud service platform for game developers. By partnering with Xiaomi and leveraging the fast growing mobile game business, the platform will offer game developers a one-stop solution for server deployment, game testing, game operation and game promotion.

Mr. Jun Lei, Chairman of Kingsoft, concluded, "We had an impressive and promising start for 2014. The financial and operating metrics for the first quarter of 2014 demonstrated the successful adoption of our mobile business strategy. Our MAU continued to grow rapidly to a new record of 276 million in March2014, compared to 62 million a year ago. With the focused investment in mobile internet business, strengthened monetization capabilities of Cheetah Mobile, continuous optimization of JX Online III, full swing mobile game development, strong sales and fast growing user base of WPS, I believe the year of 2014 will manifest Kingsoft' breakthrough in its mobile transformation."

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. Headquartered in Beijing, Kingsoft has set up R&D centers in Zhuhai, Beijing, Chengdu and Dalian. Since the commercial launch of its first office applications software, WPS 1.0, in 1989 followed by over 20 years of innovative endeavors, Kingsoft has become well recognised as a leading brand in China. Kingsoft has also rejuvenated itself by successfully transforming from "the King of package software" to an Internet technologies and service provider.

Kingsoft provides a range of products and services across devices and platforms, and its main business encompasses online games, internet software, mobile applications, office software, and cloud storage and computation services. The Company utilises 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 digital lifestyle has been the mission of Kingsoft. Kingsoft will continue developing new products, expanding our products and services to Internet especially mobile Internet and expanding its market share in China, while vigorously penetrating into overseas markets. For more information, please visit www.kingsoft.com

Source: Kingsoft Corporation Limited

Kingsoft Corporation Limited
Ms. Francie Lu
Tel: +86 10 62927777 ext.5581
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
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, discussed how the ability to access and analyze the massive volume of streaming data from millio...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.