On June 9, Kingsoft (03888.HK) saw its shares surge past 5% at one point. By morning close, the stock was trading at 22.80 yuan per share, up 2.8%, pushing the company’s market cap to around 31.5 billion yuan.
Things got interesting on June 8 when HKEX filings showed Xiaomi Group quietly buying more Kingsoft shares in the open market. By the closing bell that day, Xiaomi’s stake had climbed to 5.39%. That corporate buy naturally bumped up founder Lei Jun’s personal ownership percentage in the process. The numbers show he now holds roughly 339 million Kingsoft shares, lifting his voting stake from 24.12% to 24.56%.
Later that evening, Xu Jieyun—Special Assistant to the Chairman of Xiaomi Group and Deputy General Manager of the Strategic Marketing Department—stepped in to clear the air. She pointed out that this was strictly a corporate acquisition on the open market, properly disclosed for compliance. “Lei Jun’s higher percentage isn’t because he bought shares with his own money,” she explained. “It’s purely due to Xiaomi’s increased holdings. Xiaomi remains deeply bullish on Kingsoft’s long-term trajectory and the huge strategic synergy between our two companies.”
Under the hood, Kingsoft’s finances are looking pretty solid. Back on May 27, the company dropped an HKEX update highlighting a strong Q1. Revenue hit 2.417 billion yuan, up 3% year-over-year, while net profit attributable to shareholders skyrocketed 284% to 1.091 billion yuan.
Breaking down the pie, office software and services made up 67% of total revenue, with gaming and other verticals accounting for the remaining 33%. The software side was a real standout, generating 1.613 billion yuan—a 24% jump. That growth was fueled across the board by strong performances from WPS Individual, WPS 365, and the core WPS desktop software.
According to Kingsoft, that steady climb in WPS Individual usage is largely thanks to constantly sharpening AI features, which have successfully boosted both monthly active users and paid conversion rates. Meanwhile, WPS 365 is riding a wave of continuous AI and collaboration upgrades, plus deeper penetration among private enterprises and local state-owned firms. The desktop software segment, meanwhile, is being driven by sustained demand from China’s ongoing IT application innovation initiatives.
On the flip side, gaming and other operations brought in 804 million yuan in Q1, down 22% year-over-year. Older titles saw some revenue softness, though fresh releases helped cushion the blow.
Kingsoft is also doubling down on its AI infrastructure. The Q1 report shows R&D spending climbed 14% to 942 million yuan, mainly driven by hiring more talent and pouring capital into AI projects. It’s a clear signal that the group is making serious, long-term bets on AI capabilities.
Looking ahead, Kingsoft chairman Lei Jun laid out the roadmap: Kingsoft Office will keep expanding its AI footprint, with a major focus on rolling out Agent-based products. WPS 365 will power next-gen smart workplaces, and the push for global expansion continues. For the gaming division, expect heavier R&D investment in flagship titles, leveraging AI to supercharge content creation and deliver smoother, richer player experiences.
Taking a step back to last year’s full performance, Kingsoft recorded 9.683 billion yuan in revenue, slightly down 6% year-over-year, but parent company shareholders’ profit actually ticked up 29% to 2.004 billion yuan. Split by segment, office software and services grew 16% to 5.929 billion yuan, while gaming and other lines took a hit, dropping 28% to 3.754 billion yuan.
For those new to the name, Kingsoft cut its teeth way back in 1988, earning its spot as one of China’s pioneering internet software houses. Today, the portfolio spans Kingsoft Office, Westwood Studios, Kingsoft World Online, and Kingsoft Cloud. Kingsoft Office handles the design, development, and marketing of WPS Office; Westwood and Kingsoft World Online drive game development and publishing; and Kingsoft Cloud delivers enterprise-grade cloud computing solutions.
Listing-wise, Kingsoft went public on the Hong Kong main board in 2007. In 2011, it made a full pivot to mobile internet with a bold “All-in” strategy. Fast forward to 2019, Kingsoft Office debuted on Shanghai’s STAR Market, followed by Kingsoft Cloud’s US Nasdaq listing in 2020. Just last year, in 2022, Kingsoft Cloud officially joined the HKEX main board via a direct listing.
