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Tuesday, 12 November 2013, 19:30 HKT/SGT

Source: Kingsoft Corporation Limited
Kingsoft Announces 2013 Third Quarter Results
- WPS Maintains Strong Growth for Favorable National Policy
- Revenues of All Business Lines Continue to Hit Record High

HONG KONG, Nov 12, 2013 - (ACN Newswire) - Kingsoft Corporation Limited ("Kingsoft" or the "Company;" SEHK: 3888), a leading Chinese software and Internet service company, announced its unaudited quarterly results for the three months ended 30 September 2013.

During the period under review, the revenue of Kingsoft increased by 11% quarter-over-quarter and 51% year-over-year to RMB551.1 million. Revenue contributions from online game and application software businesses represented 49% and 49%, respectively, of the total revenue during the third quarter of 2013. Gross profit increased by 9% quarter-over-quarter and 47% year-over-year to RMB471.3 million. Profit attributable to owners of the parent in the third quarter increased 12% quarter-over-quarter and 51% year-over-year to RMB163.3 million.

Dr. HongJiang Zhang, Chief Executive Officer of Kingsoft, said, "The growth momentum continued during the third quarter of 2013. Benefiting from the steady development of all major business lines, especially KIS and Kingsoft WPS Office, our total revenue reached another record high of RMB551.1 million, representing a year-over-year increase of 51%. We continue to see strong overall growth of our monthly active mobile users, which posted over 150 million as end of this September."
RMB'000                   For the 3 months ended Sept 30     Change
(unaudited)                           2013          2012        (%)
Revenue                            551,130       365,387        51
-Entertainment software            270,984       210,957        28
-Application software              270,395       151,771        78  
- Others                             9,751         2,659       267
Gross profit                       471,331       320,915        47      
Profit Attributable to
  Owners of the Parent             163,276       108,082        51
Basic Earnings/Share (RMB cents)     14.10          9.44        49

                                   Sept 30     June 30     Sept 30
                                      2013        2013        2012
Online Games
-Daily Av. Peak Concurrent Users   614,263     611,474     616,285
-Monthly Average Paying Users    1,791,194   1,524,761   2,002,414
-Monthly Average Revenue per
     Paying User(RMB)                   48          46          43

- Online Games Business

In the third quarter of 2013, thanks to the growth of JX Online III and MAT, Kingsoft's game portfolio recorded a steady performance against the weak quarter. Revenue from the online game business increased 28% year-over-year to RMB271.0 million. JX Online III achieved 18% growth quarter-over-quarter to RMB123.7 million as the release of expansion pack "Chang An in Trouble Times" in September has more than offset the adverse impact of summer holiday on other games. In November 2013, another new expansion pack for JX Online III will be launched, targeting to further consolidate population and increase revenue of the game. Moreover, a new 3D MMO game, Jiutian Myth will be launched in the fourth quarter.

In addition, research and development on web games and mobile games have also continued. The Company's initiative in children's game, Young Elf King had over 2 million monthly login accounts in September. In order to grow the user base further, the commercialization of the game has been postponed to the end of the fourth quarter. Currently, Kingsoft has 9 mobile games in R&D process, and shall continue to increase the user base of Kingsoft games across devices.

- Kingsoft Internet Security and Kingsoft WPS Office

Revenue from the application software business for the third quarter of 2013 increased 23% quarter-over-quarter and 78% year-over-year to RMB270.4 million.

Supported by the deepened cooperation with advertisers and the strong growth of Kingsoft Internet Security ("KIS") game platform, the advertising revenue and value-added revenue from KIS increased 25% quarter-over-quarter and 144% year-over-year in the third quarter. The Company continued to invest heavily in KIS mobile services and the monthly active mobile users of KIS family exceeded 123 million in September 2013. Also, the monetization of KIS mobile user traffic has delivered promising results. There are nearly 400 mobile games on KIS mobile game platform currently.

Kingsoft WPS Office achieved significant growth in the third quarter, with revenue rising 37% quarter-over-quarter and 35% year-over-year. Chinese State Council issued a policy on government agencies to use genuine software in August, 2013. This milestone in IPR protection policy shall benefit the business of Kingsoft WPS Office in the long run. In addition, revenue from WPS free user traffic has become a new growth catalyst, while the global monthly active users of WPS mobile office surged to 25 million in September, 2013 from 6 million a year ago.

Dr. HongJiang Zhang, Chief Executive Officer of Kingsoft, concluded, "We are pleased to see that Kingsoft has again delivered a strong business performance. In the third quarter of 2013, JX Online III, our flagship game product has recorded a steady performance against the weak quarter; the monetization of KIS mobile user traffic has delivered promising results; Kingsoft WPS Office has achieved tremendous growth benefiting from the national policy. We will adhere to the "3+1" strategy, grasp the policy opportunity as well as market demand, to deliver the best products and services to all of our users."

Kingsoft Corporation Limited
Ms. Ou Lu
Tel: +86 10 62927777 ext.5581
Email: ir@kingsoft.com

Topic: Earnings
Source: Kingsoft Corporation Limited

Sectors: Daily Finance, IT Individual, eSports, Gaming
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