On the evening of March 19, Kingsoft Office (688111. SH, share price of 339 yuan, market value of 156.846 billion yuan) officially released its 2024 annual report.

According to the financial report, in 2024, Kingsoft Office will achieve operating income of 5.121 billion yuan, a year-on-year increase of 12.40%, which is slower than that in 2023; net profit attributable to shareholders of listed companies was 1.645 billion yuan, a year-on-year increase of 24.84%; The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 1.556 billion yuan, a year-on-year increase of 23.30%.

At the main business level, WPS's personal business income was 3.283 billion yuan, a year-on-year increase of 18.00%; WPS 365's business revenue was 437 million yuan, a year-on-year increase of 149.33%; WPS software business revenue was 1.268 billion yuan, down 8.56% year-on-year; Other business income was 132 million yuan, a year-on-year decrease of 37.17%.

Image source: Kingsoft Office Annual Report

In addition, during the reporting period, the number of monthly active devices of WPS Office worldwide has exceeded 632 million, of which the number of daily active devices of WPS Office PC (personal computer) version in China has exceeded 100 million. The number of monthly active users of WPS AI reached 19.68 million, and the number of cloud documents for individual users exceeded 260 billion.

In 2024, the cumulative number of annual paying individual users in WPS will reach 41.7 million, a year-on-year increase of 17.49%. In terms of international business, the personal income of overseas WPS in 2024 will be 183 million yuan.

In terms of R&D investment, in 2024, Kingsoft Office will invest 1.696 billion yuan in R&D, accounting for about 33% of revenue, and R&D expenses will increase by 15.16% year-on-year; There were a total of 3,473 R&D personnel, a year-on-year increase of 12.50%, accounting for about 67% of the total number of employees. From 2022 to 2024, Kingsoft Office's R&D investment will continue to grow, with 1.331 billion yuan, 1.472 billion yuan, and 1.696 billion yuan respectively, and the proportion of R&D expenses to operating income will be 34.27%, 32.32%, and 33.11% respectively.

Kingsoft Office said that in the past year, the company accelerated the iterative upgrade of WPS AI, launched WPS AI 2.0, and used AI capabilities to transform the original functions of WPS's major components, create an AI-native office experience, and continuously lower the threshold for users to use AI (artificial intelligence) functions.

Kingsoft Office said in the financial report that at present, China's application software integration into AI capabilities has gained a historic opportunity, and it has shown a systematic breakthrough trend driven by policy guidance, technological breakthroughs, and ecological reconstruction. In 2024, DeepSeek and other domestic large models will solve the supply problem of domestic large models with advanced technical concepts and innovative architectures, and achieve a significant reduction in inference costs. The double breakthrough of "performance leap + cost steep drop" has rapidly spread the penetration rate of AI capabilities from leading enterprises to small and medium-sized enterprises. The reconstruction of the industrial ecology has given rise to multi-dimensional development opportunities, and the domestic forces represented by DeepSeek have built technological potential energy through the open source strategy to promote the intelligent transformation of finance, manufacturing and other fields. This model of "open source technology + deep cultivation of scenarios" is reshaping the global AI competition pattern, marking that China is changing from a technology follower to a rule-maker.

Cover image source: Kingsoft official website