Kingsoft

Company Profile and Market Insights

Explore the business model, global strategy, and market performance including insights into its position in China.

Key facts

Founded 1988 • HKEX: 3888 • Q4 2025 results (three months ended Dec 31, 2025)

RMB2.62b

Revenue (Q4 2025)

RMB975.0m

Profit attributable to owners (Q4 2025)

RMB2.15b

Gross profit (Q4 2025)

82%

Gross margin (Q4 2025)

RMB1.75b

Office software & services revenue (Q4 2025)

RMB867.9m

Online games & others revenue (Q4 2025)

About

Kingsoft is a Chinese software company that traces its roots to 1988, when Pak Kwan Kau started Kingsoft Software and developed WPS 1.0. The group is based in Beijing, maintains its corporate headquarters in Hong Kong, and has been listed on the Hong Kong Stock Exchange since 2007. Over time, Kingsoft expanded from productivity software into a broader software and internet group focused on office software and interactive entertainment.

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Today, Kingsoft’s business is centered on WPS Office, WPS 365, and WPS AI, alongside PC and mobile games across its entertainment operations. Management now frames the office segment around AI, collaboration, and internationalisation, while the games side continues to build on long-running martial arts themed franchises and selected newer genres. This gives Kingsoft two core earnings streams, with office software providing recurring subscription and enterprise revenue, and games contributing title-driven monetisation.

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In 2025, Kingsoft generated RMB 9.68 billion in revenue, including RMB 5.93 billion from office software and services, which made office software its largest segment. By December 2025, WPS Office had 678 million global monthly active devices, while accumulated paying subscribers reached 46.15 million in China and 2.85 million overseas. For investors, Kingsoft offers exposure to China’s domestic productivity software market, enterprise digitisation, and AI office tools, with games adding a second business line.

Business Model and Market Position

Kingsoft runs a two-pillar model built around office software and interactive entertainment. In 2025, office software and services generated RMB 5.93 billion, equal to 61% of group revenue, while online games and others generated RMB 3.75 billion, or 39%. That mix matters for investors because office software is now the larger and steadier earnings base, supported by subscriptions, enterprise contracts, and collaboration products, while games remain more title-driven.

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Office software and services
Kingsoft monetises WPS through three layers: individual subscriptions, enterprise and government software procurement, and WPS 365 collaboration and AI services. Management said 2025 growth came from more paying subscribers in the WPS individual business, stronger adoption of WPS 365 as document, AI, and collaboration features were integrated more deeply, and higher software orders from government and enterprise customers. By December 2025, WPS Office had 678 million global monthly active devices, with accumulated paying subscribers reaching 46.15 million in China and 2.85 million overseas.
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Interactive entertainment
Kingsoft’s games business is built on self-developed PC and mobile titles, with the long-running JX franchise as the core asset. The model relies on operating live games over many years, refreshing content, and extending familiar IP into new titles and genres. This segment is still meaningful in scale, though it is less predictable than office software. In 2025, revenue declined from a strong 2024 base as some existing games contributed less.
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Market position
Kingsoft’s strongest competitive position sits in Chinese office software. In 2025, management said WPS maintained a leading share in both flow-layout and fixed-layout document software, and WPS 365 kept expanding beyond central state-owned enterprises into private, foreign-invested, and local state-owned enterprises. The company’s edge comes from scale, localisation, and a product stack that combines traditional office tools with collaboration and AI. As a sign of domestic reach, daily active devices of WPS PC in China exceeded 100 million by the end of 2024.
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Why Kingsoft, not Kingsoft Cloud?

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Kingsoft is the stronger counterpart when the focus is office software, productivity tools, and enterprise applications. Its core equity story is built around WPS Office, WPS 365, and AI-enabled collaboration, which together form a higher-margin and already profitable software business. Kingsoft Cloud operates on a different layer of the stack. It sells cloud infrastructure, enterprise cloud services, and AI computing capacity, which makes the model more capital-intensive and less directly comparable to application software companies. In simple terms, Kingsoft sells the software that users and enterprises work with, while Kingsoft Cloud provides the backend infrastructure that supports digital workloads.

Performance in China

China is the center of Kingsoft’s office software business. By December 2025, WPS had 46.15 million domestic paying subscribers, up 11% year on year. Global WPS Office monthly active devices reached 678 million, and domestic engagement stayed high, with WPS cloud documents surpassing 290 billion. Daily active devices of WPS PC in China had already exceeded 100 million by the end of 2024.

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Key strategic drivers in China include:

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Government and enterprise demand
Kingsoft said 2025 growth in WPS software was driven by higher orders from government and enterprise customers. It also continued to participate in bids for domestic office software and government digitalisation projects across multiple regions.
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WPS 365 expansion
WPS 365 gained traction as Kingsoft combined document tools, AI, and collaboration features in one platform. In 2025, the company expanded beyond central and state-owned enterprises into private enterprises, foreign-invested enterprises, and local state-owned enterprises.
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Market position
Management said WPS maintained a leading share in China’s flow-layout and fixed-layout document software market. That gives Kingsoft a strong base in government and key industries such as finance, energy, and telecommunications. On the entertainment side, JX3 Online remained an important domestic franchise, and Goose Goose Duck added fresh momentum after its January 2026 launch passed 30 million cumulative new users and topped the iOS free games chart for most of the prior two months.

Growth and Future Prospects

Kingsoft’s growth story is shifting further toward office software, AI, and enterprise services. In 2025, group revenue fell 6% to RMB 9.68 billion because online games came off a high 2024 base, yet office software and services still grew 16% to RMB 5.93 billion and reached 61% of total revenue. That matters because the higher-quality part of the business is now the main growth engine, supported by subscriptions, enterprise contracts, and AI-enabled collaboration tools.

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Key growth drivers include:

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AI monetisation across the WPS ecosystem
Kingsoft is pushing deeper into what management calls “AI, Collaboration, and Internationalisation.” In 2025, WPS AI upgrades helped expand paying users, WPS Lingxi was developed into an all-in-one office AI partner, and WPS 365 received a broader AI-driven upgrade across search, collaboration, and digital workflow tools. This points to a future where AI is not a side feature, but part of the product stack that supports pricing power and stronger user retention.
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WPS 365 enterprise expansion
WPS 365 is becoming the main enterprise growth lever. In 2025, growth was driven by deeper integration of document, AI, and collaboration functions, while customer expansion moved beyond central state-owned enterprises into private companies, foreign-invested firms, and local state-owned enterprises. That broadens Kingsoft’s addressable market and reduces reliance on a narrower government customer base.
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International growth
Overseas traction improved in 2025. Accumulated overseas paying subscribers rose 64% to 2.85 million, and management said WPS International upgrades and overseas data center deployment supported this expansion. International growth still starts from a smaller base than China, but it gives Kingsoft a second runway beyond domestic office software demand.
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Games pipeline and global publishing
Games remain the swing factor. Management said the business will focus on premium content, global publishing, and new genres, while classic franchises such as JX3 continue to receive updates. Early 2026 showed some upside, with Goose Goose Duck surpassing 30 million cumulative new users after launch. That suggests the games segment still has room to add growth, though results will remain less predictable than office software.
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Challenges ahead include weaker revenue visibility in games, rising AI-related spending, and pressure on margins from higher server, bandwidth, marketing, and personnel costs. That is an inference from 2025 results, where R&D costs rose 16%, selling expenses rose 33%, and online games revenue fell 28%. Kingsoft has the balance sheet to keep investing, with RMB 22.6 billion in cash and bank deposits at year-end 2025, but execution matters more now as the company scales WPS 365 and turns AI adoption into durable revenue growth.

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My base case is that Kingsoft becomes more software-led over the next few years, with WPS 365, AI agents, and overseas subscriptions carrying more of the earnings story, while games provide cyclical upside rather than the core investment case.

This Company Profile was written by Dominik Diemer

Dominik Diemer blends an investor mindset with execution discipline.

He is a SAFe Program Consultant (SPC) and Lean Portfolio Management (LPM) practitioner at DMG MORI Digital, working as a SAFe Release Train Engineer and internal consultant in the Lean-Agile Center of Excellence (LACE).

His focus is prioritization, flow, and dependency management that turns strategy into outcomes. With experience across Bertelsmann and the Founders Foundation, he bridges corporate and startup thinking.

He also invests privately in private equity deals, sharpening his view on business models, value drivers, and go-to-market.

StockCounterParts reflects that lens.

Dominik Diemer

Founder of StockCounterparts.com