Kingsoft's Profit Surge#
Shares of Kingsoft Corp, a Hong Kong-based company, saw a significant increase on Thursday after the firm announced a 29% rise in annual profit. The profit attributable to the company's owners reached 2.00 billion yuan (approximately $290 million) for the year 2025. This growth was supported by gains from investments and a steady performance in its office software division.
Earnings Per Share and Share Price Reaction#
The company's basic earnings per share (EPS) also improved, climbing to 1.46 yuan from 1.16 yuan the previous year. Following this positive news, Kingsoft's shares jumped by as much as 9.4%, reaching HK$25.1 during trading in Hong Kong.
Revenue Challenges#
Despite the strong profit figures, Kingsoft faced challenges with total revenue, which fell by 6% to 9.68 billion yuan. This decline was primarily due to a 28% drop in revenue from its online games segment. However, the office software and services division saw a 16% increase, helping to partially offset the losses.
Investment in AI and Future Plans#
Operating profit, however, dropped significantly by 51% to 1.78 billion yuan. This decrease was attributed to increased spending on research and development, particularly in artificial intelligence (AI) initiatives and new game launches. Kingsoft reported a net gain of 1.25 billion yuan in other income, mainly from a one-time gain related to its cloud unit, Kingsoft Cloud. The company has proposed a final dividend of HK$0.13 per share, slightly down from HK$0.15 last year. Looking ahead, Kingsoft plans to continue investing in AI-driven office tools and expanding its international presence while focusing on new game development to stimulate growth in its gaming sector.