Looking back at 2021, Beijing Kingsoft Office Software Inc(688111) (688111. SH) the annual net profit growth was less than the revenue growth, and the market value also fell by half.
After the closing on February 25, Beijing Kingsoft Office Software Inc(688111) (688111. SH) disclosed the announcement of 2021 annual performance express. In 2021, the company achieved a total operating revenue of 3.28 billion yuan, a year-on-year increase of 45.07%; The net profit attributable to the owners of the parent company was 1.042 billion yuan, a year-on-year increase of 18.68%; The net profit attributable to the parent company after deduction was 841 million yuan, a year-on-year increase of 37.47%.
It is worth mentioning that the total assets of Beijing Kingsoft Office Software Inc(688111) at the end of 2021 were 10.425 billion yuan, an increase of 1.913 billion yuan or 22.48% compared with 8.512 billion yuan at the end of last year. However, the attributable owner’s equity at the end of 2021 was 7.72 billion yuan, an increase of 865 million yuan or 12.63% compared with the end of last year, that is, the growth of liabilities was faster than that of shareholders’ equity
Image Source: Beijing Kingsoft Office Software Inc(688111) announcement
The announcement shows that in 2021, Beijing Kingsoft Office Software Inc(688111) China’s personal subscription business achieved an operating revenue of about 1.465 billion yuan, a year-on-year increase of about 44%; China’s institutional subscription and service business realized an operating revenue of about 446 million yuan, a year-on-year increase of about 23%; The authorized business of Chinese institutions realized an operating revenue of about 962 million yuan, a year-on-year increase of about 107%; However, the operating revenue of Internet advertising and other businesses was about 406 million yuan, a year-on-year decrease of 3%.
In addition, Beijing Kingsoft Office Software Inc(688111) also disclosed in the announcement that the non recurring gains and losses in the same period of last year were mainly financial gains, government subsidy gains and investment gains from the acquisition of digital science and technology network dimension. The non recurring gains and losses in 2021 were mainly financial gains and government subsidy gains, which decreased.
Contrary to the performance growth in 2021, the share price of Beijing Kingsoft Office Software Inc(688111) fluctuated and fell for the whole year. At the beginning of 2021, the share price of Beijing Kingsoft Office Software Inc(688111) once exceeded 500 yuan / share, and then experienced a round of large fluctuations in the first half of the year. At the end of the year, the share price has fallen to around 250 yuan / share. After entering 2022, the share price fell again, reaching a new low of 204 yuan / share on February 24. As of the closing on February 25, Beijing Kingsoft Office Software Inc(688111) had a total market value of 97.3 billion yuan
source: China stock market news
Beijing Kingsoft Office Software Inc(688111) also encountered the “group” reduction of major shareholder Qiwen n-dimension.
Since 2021, Chengdu Qiwen one-dimensional business information consulting partnership (limited partnership), as well as Qiwen two-dimensional, Qiwen three-dimensional, Qiwen four-dimensional, Qiwen five-dimensional, Qiwen six-dimensional, Qiwen seven-dimensional, Qiwen nine-dimensional and Qiwen ten-dimensional (these nine enterprises are collectively referred to as “Qiwen n-dimensional”), have offered the share reduction plan twice, all of which are set up by some employees of Beijing Kingsoft Office Software Inc(688111) , As the subject of employee stock ownership. Before the share reduction, Qiwen n-dimension held a total of 61997746 shares of the company, accounting for 13.45% of the total share capital of the company, all of which were pre IPO shares and had been listed and circulated since November 18, 2020.
According to the announcement of Beijing Kingsoft Office Software Inc(688111) share reduction plan for more than 5% shareholders disclosed on August 25, 2021, Qiwen n-dimension plans to reduce the total shares of the company it holds by means of centralized bidding and block trading, which is no more than 3.179 million shares (accounting for about 0.69% of the total share capital of the company), and the reduction period is from September 15, 2021 to March 14, 2022. This is the first round of share reduction plan of Qiwen n-dimension.
By November 19, 2021, Qiwen n-dimension issued the notification letter on early termination of the share reduction plan by shareholders holding more than 5%, and decided to terminate the share reduction plan in advance. Qiwen n-dimension has accumulatively reduced 3096700 shares of the company. According to the announcement and disclosure of the implementation results of the reduction plan and the data of the total amount of reduction, Qiwen n-dimension cashed out 862 million yuan in this round of reduction. After the reduction, Qiwen n-dimension still holds 58.9011 million shares, accounting for 12.78% of the total shares of the company.
Another month later, on December 18, 2021 Beijing Kingsoft Office Software Inc(688111) , the announcement on the share reduction plan of more than 5% shareholders was disclosed. Qiwen n-dimension plans to reduce the total shares of the company it holds by means of inquiry transfer, block trading and centralized bidding, with a total of no more than 11.556 million shares (accounting for about 2.51% of the total share capital of the company), and the reduction period is up to July 10, 2022 at the latest. This is the second round of share reduction plan of Qiwen n-dimension.
Soon after the new round of share reduction plan was put out, Beijing Kingsoft Office Software Inc(688111) announced on January 24, 2022 that more than half of Qiwen n-dimension’s shares were reduced, with a total of 5.81 million shares reduced (including 4.61 million shares transferred through inquiry).
According to the suggestive announcement on shareholder inquiry transfer pricing disclosed by Beijing Kingsoft Office Software Inc(688111) , the transfer price of 4.61 million shares planned to be inquired and transferred by Qiwen n-dimension was finally determined to be 235.03 yuan / share, and the transferee was finally determined to be 13, all of which were in the list of subscription invitation documents sent by 302 specific objects.
The 13 investors who received the allotment price include Yongan Guofu Asset Management Co., Ltd. subscribing 244 million yuan, J.P. Morgan Securities PLC subscribing 235 million yuan, UBS AG subscribing 139 million yuan, Morgan Stanley subscribing 132 million yuan, and Huaxia Fund, Guotai Junan Securities Co.Ltd(601211) and other institutions.
According to another announcement, as of January 18, 2022, the 13 transferees of this inquiry transfer have remitted a total of 1.084 billion yuan of subscription money (including subscription principal, transfer fee and handling fee involved in the transfer of shares) to the designated account
Image Source: Beijing Kingsoft Office Software Inc(688111) announcement
In addition to the above inquiry transfer, Qiwen n-dimension also reduced its holdings of 1.2 million shares in other forms. According to the announcement on the reduction of more than half of the number of shares held by more than 5% shareholders and the progress of reduction disclosed on January 24, 2022, more than half of the previously announced plan to reduce no more than 11.556 million shares through inquiry transfer, block trading and centralized bidding has been completed. Summarizing the data of the total amount of holdings reduction disclosed in the announcement, Qiwen n-dimension’s second round of holdings reduction plan has reduced a total of 5.81 million shares and cashed out 1.388 billion (including the inquiry and transfer part of 1.084 billion yuan).
Since August 25, 2021, Qiwen n-dimension has twice thrown out the share reduction plan. At present, it has reduced 8.9067 million shares and cashed out 2.25 billion yuan. After the above reduction, Qiwen n-dimension still holds 53091100 shares, accounting for 11.52% of the total shares of the company, while the second round of share reduction plan has not been completed, and the subsequent reduction will still occur.
