On November 19, Kingsoft Software (03888.HK) released its third-quarter financial report for 2025. The data shows that the company’s total revenue for the quarter was 2.42 billion yuan, down 17% year-over-year; net profit was 213 million yuan, down 48% year-over-year.
The company’s two core businesses showed a divergent trend. Office software and services revenue reached 1.52 billion yuan, up 26% year-over-year; network games and other businesses were a drag, with revenue of 900 million yuan, down 47% year-over-year.
Office software and services remained the “mainstay” of revenue, mainly due to the growth of Kingsoft Office’s WPS software, WPS 365, and WPS personal business. WPS software business saw a significant increase driven by “信创” orders; WPS 365 business saw rapid growth in private enterprise and local state-owned enterprise customer expansion; WPS personal business drove paid user growth through AI new product landing and refined operations.
As of the end of September, Kingsoft Office’s monthly active devices reached 669 million, up 9% year-over-year. In the past 12 months, Kingsoft Office’s cumulative paid personal users reached 41.79 million, up 10% year-over-year.
In contrast, network games and other businesses declined significantly. Kingsoft Software’s CEO, Zou Tao, explained that this was mainly due to the decrease in revenue contributions from existing games, and new games were still in the early stages of development and had not yet established market influence.
In the network game business, the flagship game “Jian Wang 3” is a 3D martial arts MMORPG game that has been operating for over 16 years, officially launched in August 2009, developed by Kingsoft Software’s Xishanju Studio. However, facing the impact of new genres such as “open world” and “competitive games”, the MMO track user base has shrunk, and the complex storyline and gameplay system accumulated over the years have made it difficult for new players to join.
Xishanju’s another game, “Dust White Forbidden Zone”, a light sci-fi 3D TPS game, has been a market focus since its public test in 2023, with its “二次元美少女+射击” gameplay. However, according to Steam data, the game’s online user number showed a “cliff-like decline” from April to December last year.
New games include “Jie Xian Ji”, a sci-fi mech-themed TPS game that has become a focus product in the mech game track since its release this year. Two internationalized IP games, “Geese and Ducks” and “Angry Birds”, are expected to be launched in the domestic market in the future quarters.
Notably, the company’s sales and distribution expenses increased by 55% year-over-year to 564 million yuan, up 33% quarter-over-quarter, reflecting increased promotion and advertising investment related to network games. Research and development costs also increased, up 4% year-over-year to 899 million yuan, mainly due to increased investment in AI and collaboration products, but partially offset by reduced performance bonuses.
As of the close of the Hong Kong stock market today, Kingsoft Software’s stock price was 30.72 Hong Kong dollars, down 1.6%, with a market value of 43.021 billion Hong Kong dollars.
