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 3 AI consumers· 1 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 | -30.2 |
| Alibaba Group | benef1 | -49 | -25.8 | -10.8 | +11.8 | +75.8 | -22.7 |
| Tencent Holdings Limited | benef1 | -28.6 | -14.2 | -28.7 | +49.8 | +52.1 | -23.2 |
| Baidu | benef1 | · | -8.2 | -23.4 | -13.5 | +74.2 | -24.5 |
| NVIDIA | benef2 | +125.5 | -50.3 | +239 | +171.2 | +38.9 | +13.3 |
| JD.com | benef2 | -19.1 | -16.9 | -62.5 | +81.5 | -28.2 | -1.5 |
| Meituan | benef2 | -38.1 | -20.7 | -64.2 | +137.6 | -34.6 | -19 |
| Trip.com Group | benef2 | · | +44.5 | -3 | +95.8 | -12.2 | -31.6 |
YTD as of 2026-07-10 · source: Yahoo Finance
Kingsoft Office's thesis is being China's domestic standard replacing Microsoft Office, a dual engine layering government/institutional domestic-substitution (信创) demand on top of sticky personal subscriptions. With 60%+ of FY2025 revenue of RMB 5.93bn (+15.78%) from personal paid subscriptions, the profit base is solid, while the real re-rating axes are two: WPS 365 (institutional subscriptions), pushed by 信创, accelerating +64.93% and converting one-time licenses into recurring revenue, and WPS AI's domestic MAU surging to 80.1M (+307%), opening the option to convert office traffic into AI monetization. Spending 35% of revenue (R&D of RMB 2.095bn) is the up-front bet on this AI transition — pressuring near-term margin but opening a new revenue axis if it succeeds. Because WPS AI Hub integrates multiple large models (Baidu ERNIE, Alibaba Tongyi and others) for users to switch between, running its own model alongside external ones is a flexibility feature. Re-rating triggers are the pace of WPS 365 subscription conversion, WPS AI monetization, and the payback on R&D.
Analysis generated from returns as of 2026-07-10