In the fourth quarter of 2019, Kingsoft achieved revenue of 2.595 billion yuan, which was higher than Bloomberg consensus expectations.
After the closing of the Hong Kong stock market on March 24, Kingsoft (0388.HK) issued the fourth quarter and full-year results announcement for 2019. The announcement shows that in the fourth quarter of 2019, Kingsoft achieved revenue of 2.595 billion yuan (RMB, the same below), an increase of 48% year-on-year, higher than the 2.286 billion yuan expected by Bloomberg. The loss attributable to shareholders of the company was 99 million yuan, and Bloomberg unanimously expected a profit of 103 million yuan.
In 2019, Kingsoft’s total revenue was 8.218 billion yuan, an increase of 39% year-on-year; the loss attributable to shareholders of the company was 1.546 billion yuan, and a profit of 389 million yuan was made in the same period in 2018.
Specifically, the revenue of online games in the quarter was 916 million yuan, a year-on-year increase of 39%. This increase was mainly due to the revenue contributed by the “Jian Wang 3” terminal game and the newly launched mobile game; cloud services Revenue was 1.113 billion yuan, an increase of 53% year-on-year. The increase was mainly due to the increase in the number of customers and the average revenue from each major customer; office software and services and other revenue was 566 million yuan, an increase of 52% year-on-year. Due to the impact of the peak season, WPS Office licensing business and WPS Office online advertising promotion service revenue increased.
Operating costs in the fourth quarter of 2019 were 1.313 billion yuan, an increase of 31% year-on-year, mainly due to the significant increase in cloud service business, which increased bandwidth and Internet data center costs. In the fourth quarter, gross profit was 1.282 billion yuan, an increase of 70% year-on-year, and gross profit margin was 49%.
In addition, in the fourth quarter of 2019, Jinshan Software recorded a score of 404 million yuan in losses of associates, while the same period in 2018 recorded a profit of 261 million yuan. The loss was mainly due to the loss recognized by Cheetah and its subsidiaries during the quarter.
In terms of user data, in the fourth quarter of 2019, the average daily maximum number of simultaneous users for online games was 0.61 million, and the average monthly paid account was 2.53 million; Kingsoft’s monthly active users in the fourth quarter The number is 411 million.
Goldsoft stated in its financial report that the new coronavirus (COVID-19) has spread at home and abroad, resulting in disruption of business and economic activities. As of the date of the announcement, the epidemic did not have a significant impact on the company’s operations.
In addition, the chairman of the company Lei Jun said that even though the company still has operating losses due to its investment in cloud services in 2019, it decided to distribute a final dividend of HK $ 0.10 per share this year. After the global COVID-19 epidemic is under control and Kingsoft’s initial public offering is completed, the dividend policy will be reviewed again in due course.