Kingsoft Q1 2020 revenues top $164.2m up 32%
Revenue from the online games and office software and services and others represented 67% and 33%, respectively, of total revenue.
Chinese software and internet service company Kingsoft Corporation Limited has announced its unaudited quarterly results for the three months ended 31 March 2020.
During the period under review, the revenue of Kingsoft increased by 32% year-over-year to $164.2 million (RMB1,171.3 million).
The company’s gross profit increased by 36% year-over-year to $136 million (RMB970.1 million), while operating profit increased by 124% year-over-year to $54 million (RMB385.2 million).
“Our first-quarter results represent a strong start to the year,” said Lei Jun, Chairman of Kingsoft.
“The team did an excellent job in responding to the challenges of COVID-19 while delivering stable business progress.
“More importantly, the COVID-19 pandemic has expedited the digital transformation and online collaboration of all industries, and therefore laid a solid foundation for our future development.
“Especially, we saw significant growth in the operational performance of cloud office products and services as WPS has been more widely adopted for remote working.
“Our flagship JX Online III PC game also achieved a stable performance with revenue continuing to grow year-on-year.
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“In May 2020, Kingsoft Cloud Holdings Limited was successfully listed on the National Association of Securities Dealers Automated Quotations capital market (“NASDAQ”).
“Our cloud services business continued to maintain its robust growth in the first quarter, and as the largest shareholder of Kingsoft Cloud, we have full confidence in its future performance.”
Lei added that the company plans to ride on the wave of the post-pandemic digital transformation.
“We are marching towards a bright future and are determined to become a winner of this unprecedented new digital era,” he added.
During the COVID-19 outbreak, Kingsoft has launched several charity initiatives such as setting up in-game fund raising and offering free game log-ins in response to China’s call to support epidemic prevention and control.
The company said it will continue to focus on quality content creation and further enhance the integration of R&D and operation.
Lei concluded, “We are pleased to achieve a satisfactory performance in the first quarter amid the COVID-19 outbreak.
“Our business has shown strong resilience and we are confident in the strength of our business model and our developments going forward.
“Looking ahead, we will continue to increase our investment in key areas, improve our product and service capabilities, and innovate on our business model, with our ultimate focus being the provision of high-quality products and services to our customers.”
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