Shulou(Shulou.com)11/24 Report--

On the evening of August 22, Jinshan Office officially released the 2023 semi-annual report data. In the first half of 2023, Jinshan office revenue and net profit achieved double growth, with operating income of RMB 2.172 billion yuan, with a year-on-year growth of 21.25%; net profit attributable to owners of parent company was RMB 599 million yuan, with a year-on-year growth of 15.32%; net profit attributable to owners of parent company deducted from non-recurring profits and losses was RMB 576 million yuan, with a year-on-year growth of 39.88%, and profitability continued to improve.

During the reporting period, Jinshan Office fully embraced AI reform, increased R & D investment, released intelligent office assistant WPS AI based on large language model, and continuously consolidated product competition barriers. The overall revenue of subscription business in the first half of 2023 was RMB 1.67 billion yuan, with a year-on-year growth of 35%, accounting for 77% of revenue, an increase of 8 percentage points year-on-year, and the performance was still outstanding.

R & D investment continues to increase WPS AI to consolidate industry competition barriers

In the first half of 2023, Jinshan Office invested RMB717 million in R & D, accounting for approximately 33% of revenue, of which R & D personnel accounted for approximately 66% of the total number of employees, injecting stable impetus into the sustainable development of products.

During the reporting period, Jinshan Office released WPS AI, an intelligent office assistant based on large language model, and positioned itself as an application party of large language model, anchoring the development of AIGC (content creation), Copilot (intelligent assistant) and Insight (knowledge insight) in three strategic directions, bringing AI's first achievements in the field of domestic office software to users.

At present, WPS AI, as a ChatGPT-like application of collaborative office track, has been connected to text, presentation, form, PDF and other product components to meet the daily office needs of users in terms of content generation, content understanding, instruction operation, etc. Jinshan Office not only took the lead in realizing the landing of large language models, but also focused on solving the pain points of users 'needs in AI application scenarios, further consolidating industry-leading competition barriers.

In the first half of 2023, Jinshan Office officially launched a new version of WPS Office to enhance users 'experience and recognition of WPS. In the field of privatized office services, Jinshan Office launched a brand-new base architecture tailored to the business characteristics of privatized customers, significantly reducing cluster investment requirements and operation and maintenance costs. In addition, WPS Professional Edition for government and enterprises completes the integrated transformation of end-cloud based on the new base architecture, making the process of migrating users from local office to cloud office more convenient and smooth.

In terms of overseas business, Jinshan Office continued to cultivate the number of desktop large-screen users on the basis of stabilizing the advantages of mobile terminal; it took the lead in launching WPS Office AI products and opened public beta overseas. With AI comprehensively enhancing overseas product capabilities and experiences, increasing user usage frequency and brand influence, overseas business is expected to form new long-term commercial growth points.

Individual subscription business keeps growing membership structure optimization upgrade

According to IDC's latest report, global shipments of personal computing devices fell 13.4% in the second quarter of 2023, and the global PC market has contracted for six consecutive quarters. According to the data of China Academy of Information Technology, from January to June 2023, the total shipment volume of mobile phones in China's domestic market accumulated 130 million units, down 4.8% year-on-year.

Under the adverse impact of the continuous decline in global PC and mobile device shipments, the monthly active device number and paid user number of Jinshan Office's main products continued to grow, further driving the rapid growth of Jinshan Office's personal subscription business revenue.

During the reporting period, Jinshan Office's domestic personal office service subscription business revenue was 1.252 billion yuan, up 33.24% year-on-year. As of June 30,2023, the number of monthly active devices of Jinshan office main products has reached 584 million, an increase of 2.46% year-on-year, and the cumulative number of paid individual users has reached 33.24 million, an increase of 16.36% year-on-year.

While adhering to the long-term membership strategy, Jinshan Office merged functional and resource-based members, upgraded the membership rights structure, upgraded the original membership system to super members/super members Pro, simplified the complexity, reduced the difficulty of users to choose different membership types, and accurately covered user groups with different needs through rights combination packaging, and further explored the payment space of individual subscription services.

It is worth mentioning that Jinshan Document takes the lead in promoting AI integration strategy, and the product line is upgraded to intelligent documents, intelligent forms and intelligent forms under the support of AI technology. With the advancement of the end-cloud integration strategy, Jinshan documents are deeply integrated with the original user habits of WPS, optimizing and improving various cross-end mixing capabilities, and the user usage stickiness is constantly improving.

Stable growth of institutional subscription business WPS 365, implementation of digital office lighthouse project

During the reporting period, Jinshan Office's domestic organization subscription and service business revenue was 418 million yuan, up 40.38% year-on-year, and the domestic organization authorization business revenue was 361 million yuan, down 13.96% year-on-year.

In order to assist the digital transformation of government and enterprise customers, Jinshan Office continuously deepens its product capabilities, newly creates a series of digital office lighthouse projects such as Guangdong Zhengyi, Sinopec, PetroChina, Huaxia Bank, Baowu Group and Perfect World, and continues to be widely replicated. In the first half of the year, digital office-related orders continued to grow, with more than 1700 government and enterprise customers added, driving the rapid growth of subscription and service business of domestic institutions. The "2023 Digital Office China Tour" activity landed in Shanghai, Wuhan and Suzhou to continuously promote the ecological development of local digital office and accelerate the integration of digital economy and the real world.

In terms of Xinchuang business, Jinshan Office actively promoted the Windows / Linux dual-version annual site model based on the actual replacement needs of Xinchuang customers in finance, energy and communication industries, deepened its cloud and collaborative office process, and increased the company's sustainable income. Subsidiaries continued to deepen the application of format documents, exploring innovative application scenarios of streaming integration, signature and vertical industries.

At present, Jinshan Office's products have completed compatibility mutual certification with more than 400 ecological partners in China involving more than 1200 products, and established long-term mutual trust relationship. Among them, Jinshan office and industry head manufacturers Tongdahai, Huaxia Diantong, the three major domestic communication operators, as well as Huawei Cloud, Inspur Cloud, Jinshan Cloud, Alibaba Cloud and other head cloud manufacturers have established stable cooperation mechanisms.

In the first half of 2023, Jinshan Office launched WPS 365 for organization-level customers, creating an efficient and integrated collaborative office platform for customers. According to the financial report, the number of SaaS paying enterprises in Jinshan office public cloud field increased by 54% year-on-year, the renewal rate of paying enterprises exceeded 70%, and the renewal rate of amount exceeded 100%, driving the relevant revenue in public cloud field to increase by 100% year-on-year.

As the official and exclusive supplier of office software for Chengdu Universiade, WPS 365 provides collaborative office software and security control services for the preparation and operation of Chengdu Universiade, and customized services according to the characteristics of Universiade sports events. Since April 2023, WPS 365 products have been applied in 78 locations including 45 venues, 10 special operation centers and 23 hotels, covering 50,000 people and improving the escort effect for Chengdu Universiade.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.