SSE 50 · Office software · China's MS-Office alternative
Beijing Kingsoft Office Software
China's homegrown standard for replacing Microsoft Office, its edge is a dual engine that layers government and institutional policy demand on top of the steady cash flow of habitual individual subscriptions (688111, Shanghai STAR; parent Kingsoft Corp, 3888.HK). Over 60% of FY2025 revenue of RMB 5.929bn (+15.78%) is individual paid subscriptions, keeping the profit base solid, but the real re-rating runs on two tracks — WPS 365 (institutional subscription), pushed by the Xinchuang localization drive, is accelerating at +64.93% and converting one-off licenses into recurring revenue, while WPS AI's domestic MAU has exploded to 80.13M (+307%), opening the option to turn office traffic into AI monetization. Spending 35% of revenue on R&D (RMB 2.095bn) is the upfront bet on that AI shift — margin-dilutive now, but it opens a new monetization axis if it lands.
688111.SS Updated Jul 12, 2026 4 AI consumers· 3 recurring
Per the valuechain.wiki graph, Beijing Kingsoft Office Software is directly linked to 3 companies (2 supply, 0 revenue, 1 investment relationships) and reaches 7 companies within two hops; the links are backed by 6 dated sources, 1 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · RMB 5.929bn (FY2025 consolidated, +15.78%)
- Customer concentration · Layers Xinchuang institutional demand and a WPS AI monetization option on top of predictable subscription cash flow — the 35% R&D spend is the AI-transition bet.
- Segments · WPS personal · WPS software (institutional licensing) · WPS 365 (institutional subscription)
Revenue from
- Individual paid subscribers (WPS personal) High confidence· Amount ¥3.6B · FY2025 개인구독
Habitual individual subscriptions are the profit reservoir — FY2025 revenue RMB 3.626bn (+10.42%), 60%+ of total, giving predictable cash flow unlike policy-driven institutional revenue. Among 46.15M payers the overseas cohort (+53.7%) is the next lever, and WPS AI (domestic MAU 80.13M, +307%) layers a monetization-conversion option on top.Confirms EN AIbase Published Mar 27, 2026: Kingsoft Office FY2025 results — WPS AI MAU 80M, overseas revenue +54%Confirms ZH Shanghai Stock Exchange filing Published Mar 26, 2026: Beijing Kingsoft Office Software — 2025 Annual ReportConfirms ZH 21st Century Business Herald Published Mar 26, 2026: Kingsoft Office FY2025: revenue and profit both up, WPS 365 +64.93%Mentions ZH Guosen Securities Published Mar 26, 2026: Guosen Securities — Kingsoft Office (688111.SH) FY2025 review, Outperform - Government & enterprise (WPS software licensing & WPS 365) Medium confidence· Amount ¥2.2B · FY2025 기관(소프트웨어+365)
Xinchuang localization structurally drives government demand — licensing (RMB 1.461bn, +15.24%) is one-off, but WPS 365 subscriptions (RMB 720m, +64.93%) convert it into recurring revenue, raising the quality of institutional sales. Yet 80%+ government coverage means new-penetration headroom is narrowing, so growth hinges on the license-to-subscription shift.Confirms ZH Shanghai Stock Exchange filing Published Mar 26, 2026: Beijing Kingsoft Office Software — 2025 Annual ReportConfirms ZH 21st Century Business Herald Published Mar 26, 2026: Kingsoft Office FY2025: revenue and profit both up, WPS 365 +64.93%
Pays to
- R&D talent & technology investment High confidence· Amount ¥2.1B · FY2025 R&D
Spending 35% of revenue on R&D (RMB 2.095bn, +23.57%) is the upfront investment to turn office traffic into AI monetization — targeting WPS AI 3.0, self-developed models and native office agents. It dilutes near-term margin, but if the shift lands it adds a new AI-monetization axis on top of subscriptions.Confirms ZH Shanghai Stock Exchange filing Published Mar 26, 2026: Beijing Kingsoft Office Software — 2025 Annual Report - Baidu (Wenxin/ERNIE model supplied to WPS AI Hub) Low confidence
WPS AI Hub integrates multiple third-party LLMs users can switch between — Baidu Wenxin (ERNIE) is one of them (alongside MiniMax, Zhipu, Tongyi, SenseTime). AI-capability supplier relationship; commercial terms undisclosed.Mentions ZH InfoQ China Published Jan 15, 2025: WPS AI enterprise: switchable multi-LLM (MiniMax, Zhipu, Baidu Wenxin, etc.) - Alibaba (Tongyi Qianwen model supplied to WPS AI Hub) Low confidence
Alibaba's Tongyi Qianwen is among the third-party LLMs integrated into WPS AI Hub. AI-capability supplier relationship; commercial terms undisclosed.Mentions ZH InfoQ China Published Jan 15, 2025: WPS AI enterprise: switchable multi-LLM (MiniMax, Zhipu, Baidu Wenxin, etc.)
Investors
- Tencent (stake in parent Kingsoft Corp) Low confidence
Indirect, not a direct holding — Tencent is a substantial shareholder of parent Kingsoft Corp (3888.HK) (acquired 15.68% in 2011, ~6.9% recently). Kingsoft Corp is the controlling shareholder of 688111 (~32.5%), so Tencent's exposure runs through the parent.Confirms EN MarketScreener Published Jun 1, 2025: Kingsoft group ownership — parent Kingsoft Corp (3888.HK), Tencent stake
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Beijing Kingsoft Office Software | node | -41.3 | +16 | -23.7 | +47.1 | +7.6 | -27.4 |
| Alibaba Group | benef1 | -49 | -25.8 | -10.8 | +11.8 | +75.8 | -22 |
| Tencent Holdings Limited | benef1 | -28.6 | -14.2 | -28.7 | +49.8 | +52.1 | -26.1 |
| Baidu | benef1 | · | -8.2 | -23.4 | -13.5 | +74.2 | -37.2 |
| NVIDIA | benef2 | +125.5 | -50.3 | +239 | +171.2 | +38.9 | +23.7 |
| JD.com | benef2 | -19.1 | -16.9 | -62.5 | +81.5 | -28.2 | -1.3 |
| Meituan | benef2 | -38.1 | -20.7 | -64.2 | +137.6 | -34.6 | -15.9 |
| Trip.com Group | benef2 | · | +44.5 | -3 | +95.8 | -12.2 | -32.4 |
YTD as of 2026-09-04 · source: Yahoo Finance
Beijing Kingsoft Office Software operates across SSE 50, Office software, China's MS-Office alternative. It is -27.4% in 2026. The stock (-27.4%) and its supply side (avg -29.6%) are moving in step. Among connected nodes the furthest ahead is Alibaba Group (-22%) and the furthest behind is Baidu (-37.2%). If chain logic explains the gap, the laggard is the next propagation candidate; if not, the link itself deserves a second look. Spending 35% of revenue on R&D (RMB 2.095bn) is the upfront bet on that AI shift — margin-dilutive now, but it opens a new monetization axis if it lands.
Analysis generated from returns as of 2026-09-04