Company code: Beijing Kingsoft Office Software Inc(688111) company abbreviation: Beijing Kingsoft Office Software Inc(688111) Beijing Kingsoft Office Software Inc(688111)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should go to www.sse.com com. cn. The website carefully reads the full text of the annual report. 2 major risk tips the company has described in detail various risks and countermeasures that the company may face in the process of operation in this report. Please refer to section III “management discussion and analysis” of this report. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. 5 ShineWing Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
The company plans to distribute a cash dividend of 7 yuan (including tax) for every 10 shares to all shareholders. As of December 31, 2021, the total share capital of the company is 461000000 shares. Based on this calculation, the total cash dividend to be distributed is 322700000 yuan (including tax). 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange and sector stock abbreviation stock abbreviation before stock code change
A-share Shanghai Stock Exchange Kechuang board Beijing Kingsoft Office Software Inc(688111) Beijing Kingsoft Office Software Inc(688111) none
Profile of the company’s depositary receipts □ applicable √ not applicable contact person and contact information
Contact person and contact information secretary of the board of directors (domestic representative of information disclosure) securities affairs representative
Name: Song Tao, pan Lei
Office address: Building D, Xiaomi Science Park, courtyard 33, Xierqi Middle Road, Haidian District, Beijing
Tel: (010) 629277776210 (010) 629277776210
E-mail [email protected]. [email protected].
2. Introduction to the company’s main business in the reporting period (I) main business, main products or services
1. Main business
The company is a leading office software and service provider in China, mainly engaged in the design, R & D, sales and promotion of WPS office software related products and services.
The company’s main products include WPS office software, Jinshan document and other office capability product matrix, as well as Jinshan digital office platform solutions. Among them, WPS office software, Jinshan documents and other products can be applied on many mainstream operating platforms such as windows, Linux, Mac OS, Android, IOS and harmonyos. The main services include providing customers with value-added functions related to daily office and documents, Internet advertising promotion and other services based on the company’s products. Jinshan digital office platform can provide one-stop and multi platform application solutions or services according to the needs of organization level customers in the corresponding enabling mode and delivery mode.
The company has more than 30 years of R & D experience and technology accumulation in the field of office software. Its main products and services are independently developed by the company, and has independent intellectual property rights for core technologies. The company focuses on in-depth research on a variety of key technologies such as text typesetting technology, spreadsheet computing technology, animation rendering technology, online collaborative editing, secure documents and data collaborative sharing. Through the breakthrough of core technologies, the company has created a cloud and collaborative office application service system, created a new mode of intelligent office and comprehensively improved the user experience.
2. Main products, services and Solutions
(1) WPS office software
WPS office software is the core product of the company, providing users with one-stop office services. The product realizes multi terminal coverage through WPS office desktop version (Windows version, Mac version, Linux version) and WPS Office Mobile Version (Android version, IOS version), and has the same document processing capability on different terminal devices / systems. While WPS office is highly compatible with foreign mainstream office, it has rich characteristic functions to provide stable and convenient office support for users and meet the office needs of all kinds of users. At the same time, the company provides WPS office users with fast, convenient and efficient online and offline services and technical support, providing users with reliable and effective use guarantee.
(2) Jinshan document
Jinshan document is an online document service that supports multi person real-time collaboration. Based on HTML5 technology, Jinshan document supports the management, viewing, editing, collaboration and other document processing capabilities of online documents and office documents through browsers, wechat applets, QQ applets and other ways on windows, MacOS, Linux, Android, IOS and ipados platforms. The online document format provided by Jinshan document is oriented to lightweight collaborative creation and sharing scenarios, which helps users gain an office experience that focuses more on content creation and expression and reduces the cost of document style adjustment on different platforms, especially when collaborative participants span desktop and mobile platforms; At the same time, relying on Beijing Kingsoft Office Software Inc(688111) self-developed office kernel engine service, it has realized perfect compatibility and seamless integration with WPS office client product family.
Users can choose the depth of online collaboration between two WPC clients, which can also be used to switch between the two WPC clients. The product supports the independent setting of viewing or editing permissions of different collaboration members. The document data is safe and controllable, automatically saved and synchronized in real time, which can provide users with a diversified cloud office experience.
The main application functions covered by the above two products build the Beijing Kingsoft Office Software Inc(688111) capability product matrix. See the figure below for the main products and functions.
Beijing Kingsoft Office Software Inc(688111) capability product matrix main components
(3) Jinshan digital office platform
Based on Beijing Kingsoft Office Software Inc(688111) product matrix, Jinshan digital office platform is an enabling solution covering content creation and management, collaborative office and business digitization after cloud transformation, medium platform transformation and secondary development. As an interactive hub of office digital transformation, it can support large and super large organizations including the government, state-owned enterprises, central enterprises and large-scale private enterprises, establish an exclusive digital office platform, and provide one-stop office cloud services to small and medium-sized enterprises and organizations. The platform includes providing users with an office capability product matrix with WPS office software, Jinshan document and Jinshan collaboration (enterprise IM) as the core, enabling users through unified identity authentication services, supporting documents and collaboration, two digital office platforms and an open ecosystem. In the face of user demand scenarios, it provides three enabling schemes: full set of platform, module combination and capability embedding, and creates four delivery modes based on public cloud, hybrid cloud, privatization and full information creation environment.
Panorama of Jinshan digital office platform
a. Document middle desk
The document center is positioned to provide the sharing center of document capability for enterprises, realize the empowerment of WPS core technical capability, and help enterprises complete the precipitation of data assets and enterprise knowledge. It can help suppliers and developers of enterprise information construction projects to quickly build a content cooperation platform. The purpose is to service the WPS product matrix, quickly respond to the collaborative application requirements in the office scene, realize the unstructured data collection in each application system, lay the foundation for knowledge precipitation, provide the service processing ability of the office format engine, provide the secondary development ability for the enterprise, and combine and package the document processing scene according to the enterprise business system, Provide enterprise customers with capability modules with core document processing scenario solutions, and provide basic capability support for the transformation of digital enterprises.
b. Cooperative middle stage
The cooperation center is a sharing center that provides enterprises with collaborative office related capabilities, enables core capabilities such as instant messaging, cloud documents, open platform and organization management, and helps enterprises quickly build an exclusive work platform that can meet the daily work, internal and external communication and collaboration needs of enterprises. Help enterprises upgrade their information systems safely and efficiently, and promote enterprises to increase quality, improve efficiency and quickly complete digital transformation. The product purpose of collaboration center is to serve the product matrix related to collaborative office in Beijing Kingsoft Office Software Inc(688111) and quickly respond to various needs in the collaborative office scene; Provide a high degree of collaboration capabilities for enterprises to build their own collaboration scenarios; Provide flexible business service-oriented processing capability and provide secondary development capability for enterprises. （2） Main business model
1. Profit model
The company’s profit model is mainly divided into four types: personal office service subscription business, Chinese institutional subscription and service business, Chinese institutional authorization business and Internet advertising promotion service business. With the development of the company’s products from tool software to cloud application service, the cultivation of individual user payment habits and the rapid development of digital economy industry, personal office service subscription, Chinese institutional subscription and service business and Chinese institutional authorization all show a rapid growth trend. Due to the active strategic adjustment of the company, the proportion of income of Internet advertising promotion shows a shrinking trend year by year.
(1) Personal office service subscription business
Under the personal office service subscription business mode, users can experience basic functions for free by downloading WPS office and other company office software products or through online applications. You can register WPS account by email, QQ, wechat, mobile phone number and other ways, and use the company to provide more free online functions and services after logging in.
Compared with free registered users who log in, members can enjoy a lot of privileges after paying to help them work efficiently. Paying members are mainly divided into WPS members, rice husk members and super members. WPS member services focus on functional services based on WPS office software; Rice husk members pay attention to content-based services based on WPS office software. In addition to enjoying all the privileges of WPS members and rice husk members at the same time, super members also have advanced permissions such as larger cloud document storage space, more maximum number of multi person cloud collaboration teams, more comprehensive and unlimited application functions, making their text documents, form documents and presentation documents more professional and beautiful.
The above three types of members can pay monthly, quarterly or annual. Some value-added functions and rice husk content platform resources can also be purchased by function or quantity.
(2) China Institutional subscription and service business
Under the Chinese institutional subscription and service business model, the company can provide professional office software products, enterprise office cloud services and office solutions for organization level customers of different sizes, and usually sign annual or multi-year contracts with them. Within the term agreed in the contract, the company grants such customers the right to use a certain version of software products or service modules according to the number of equipment or users agreed in the contract; The company shall charge the corresponding software licensing or service fees according to the contract; During the contract period, the customer enjoys the upgrade and technical support guarantee of the software product or service module of this version. At the same time, the customer can also choose to pay for other value-added modules or services. After the contract expires, the customer can choose to renew it. (3) Authorized business of Chinese institutions
Under the Chinese institutional authorization business model, the company can grant some organization level customers a certain number of use rights of a certain version of products. The use rights usually include permanent authorization and random authorization. Random authorization means that the authorized software products purchased by them always follow the original computer or equipment and cannot be transferred and installed on other computers or equipment. The licensed product usually includes upgrade guarantee service for a certain period (usually one year), and the upgrade and service guarantee beyond the period need to be purchased separately.
(4) Internet advertising promotion service business
Under the business model of Internet advertising promotion service, the company adopts the profit model of “free + advertising” for free users. With the help of large user groups and good brand value, the company has become an important platform for advertisers to promote their products. Internet advertising promotion means that the company provides advertising space on the client and website platform for customers with promotion needs, and promotes customers’ services and products by launching client products and launching cover and open screen pages when using software. Advertising determines the settlement method and revenue according to different locations, categories and different needs of customers. For example, the company confirms the information flow according to the length of time, number of clicks and number of registrations. The company and customers confirm the revenue according to the flow information every month.
2. Sales model
(1) Personal office service subscription business sales model
Personal office service subscriptions are mainly sold through various websites and display sites, including WPSoffice tiktok and online advertising display sites, WeChat, Taobao, jitter and other partners’ sales channels. The company has formulated a series of sales related systems such as perfect corresponding order management, commodity payment and refund process, etc.
(2) Sales model of China’s institutional subscription business and institutional authorization business
The sales of the company’s China Institutional subscription and institutional authorization business are mainly divided into two modes: company direct sales and distribution.
