Kingsoft Posts Higher Quarterly, First-Half Earnings on AI Push, Cloud Growth
Kingsoft Corp. (HKG: 3888) reported higher earnings for the second quarter and first half of the year, driven by the integration of artificial intelligence across its operations to meet rising market demand.For the three months ended June 30, profit attributable to owners rose 3% to nearly 548 million yuan from 532.4 million yuan a year earlier. Diluted earnings per share increased to 0.40 yuan from 0.38 yuan.Revenue climbed 9% year over year to 2.51 billion yuan from 2.31 billion yuan. The growth was led by the office software and services segment, which benefited from the ongoing integration of AI technology into its WPS Office applications.Kingsoft Cloud expanded its AI capacity in response to growing demand for computing services, notably from Xiaomi (HKG:1810) and the broader Kingsoft ecosystem.According to a Jefferies research note, AI advancements helped Kingsoft Cloud achieve its first-ever positive operating profit under GAAP terms, alongside rapid growth across both internal and external client bases.However, online games revenue fell 15% amid product lifecycle transitions and intensifying market competition.For the first half, attributable profit more than doubled, jumping 101% to 1.64 billion yuan from 816.3 million yuan a year ago. Diluted EPS increased to 1.19 yuan from 0.59 yuan.First-half revenue grew 6% to 4.93 billion yuan from 4.65 billion yuan in the prior-year period, supported by the deployment of enhanced AI capabilities across the company's systems.Meanwhile, Kingsoft's mainland-listed subsidiary, Beijing Kingsoft Office Software (SHA: 688111), also reported a sharp increase in first-half attributable profit, which surged to 2.52 billion yuan from 747.2 million yuan a year earlier. Diluted EPS climbed to 5.41 yuan from 1.61 yuan, while revenue rose 25% to 3.31 billion yuan from 2.66 billion yuan.
