① The scale and share of Jinshan Office's subscription business revenue has further increased. Its personal office service subscription business revenue in China reached 2,653 billion yuan, an increase of 29.42%; ② As of December 31, 2023, the number of monthly active devices of Jinshan Office's main products was 598 million, and the cumulative number of annual paid personal users reached 35.49 million, an increase of 18.43% over the previous year.
“Science and Technology Innovation Board Daily”, March 21 (Reporter Guo Hui) On the evening of March 20, the Jinshan office released the 2023 financial report.
According to the annual report, in 2023, Jinshan Office achieved operating income of 4.556 billion yuan, an increase of 17.27% year on year; net profit to mother reached 1,318 billion yuan, an increase of 17.92% year on year; net profit after deducting non-net profit was 1,262 billion yuan, an increase of 34.45% over the same period of the previous year. Also, according to the announcement of Jinshan Office's 2023 profit distribution plan, the company plans to distribute cash of 8.8 yuan (tax included) for every 10 shares.
By business, the revenue scale and share of Jinshan Office's subscription business has further increased. Among them, domestic personal office service subscription business revenue reached 2,653 billion yuan in 2023, up 29.42% year on year; domestic institutional subscription and service business revenue was 957 million yuan, up 38.36% year on year. The combined revenue share of the two increased to 79.24%.
Domestic institutions authorized business revenue of 655 million yuan, a year-on-year decrease of 21.60%. According to information, changes in this sector were affected by the restructuring of the credit and innovation industry, and institutions such as Tianfeng Securities and Huajin Securities lowered their original overall profit expectations for the company as a result.
Internet advertising and other business revenue was 288 million yuan, a year-on-year decrease of 6.05%. The Jinshan Office officially announced the shutdown of the advertising business in December 2023.
On the user side, the number of monthly active devices in Jinshan Office and the number of paid individual users reached a new high.
As of December 31, 2023, the number of monthly active devices of Jinshan Office's main products was 598 million, an increase of 4.36% over the previous year. Among them, the number of monthly active devices in the PC version of WPS Office was 265 million, up 9.50% year on year; the number of monthly active devices in the WPS Office mobile version was 330 million, up 0.61% year on year. By the end of 2023, the cumulative number of annual paid individual users reached 35.49 million, an increase of 18.43% over the previous year.
For institutional customers, in 2023, Jinshan Office will launch a newly upgraded WPS 365 platform for organizational customers. According to the annual report, by the end of 2023, the platform had served more than 17,000 leading government and enterprise customers, including party and government customers in Yunnan, Zhejiang, Shandong, etc., as well as corporate customers such as the Shanghai Stock Exchange, CITIC Construction Investment, Huaxia Bank, Hubei Cultural Tourism, Geely, JiKrypton, and iFLYTEK.
In terms of AI technology applications, Jinshan Office previously established WPS AI, an intelligent office application based on a big language model, and anchored the development of the three major directions of AIGC (content creation), Copilot (smart assistant), and Insight (knowledge insight).
According to information, the Jinshan Office WPS AI development project was officially launched in the first quarter of 2023, and it was fully launched and entered the public beta phase in the fourth quarter of the same year. Currently, it is still in a free trial period. Comparatively, overseas office software such as Office Copilot and Notion has begun to be commercialized. Among them, Microsoft Copilot is priced at $30 per person/month.
The Kanayama Office has yet to disclose details of WPS AI's business plan. However, in the fourth quarter of last year, the company said that the AI function of the product is expected to be charged after the year (that is, 2024), depending on the progress of the filing. Regarding the pricing of AI functions, the Kanayama Office said that the future will also be considered from a medium- to long-term perspective to maximize long-term benefits, rather than only considering short-term gross profit margins.
Many brokerage firms, such as Tianfeng Securities and Huajin Securities, are optimistic that AI product features will drive future growth in subscription revenue. According to a research report published by Tianfeng Securities analyst Miao Xinjun this month, the AI price increase for the core products of overseas office software companies has increased by at least 50%, and WPS AI is expected to work with the new membership system to jointly increase the ARPU (average revenue per user) of the product by guiding an increase in the proportion of annual super members and payment points for additional AI functions, thus bringing about performance elasticity.
When talking about the competitive relationship with Microsoft and the opportunities brought by AI, Zhang Qingyuan, CEO of Jinshan Office, said that the two sides have strong competitive strength, and “our API capabilities and cloud are already very mature.” At the same time, Jinshan Office has learned a lot from Microsoft. “In the internet age, we look a little bit behind, and our products don't look that sexy. But today's AI era may give us a new opportunity to continue on par with Microsoft.”
According to the annual report, in 2023, Jinshan Office completed the construction of the WPS AI infrastructure platform and integrated it with the core products WPS Office, Jinshan Documents, and WPS 365. At the same time, the company continued to increase investment in AI research and development to improve the accuracy of functions such as user intent recognition, intelligent text layout, AI writing formulas, AI conditional formatting, and table Copilot.
Jinshan Office said that artificial intelligence is a key technology to achieve intelligent upgrading and enhance competitiveness. In the future, the company will increase investment. At the same time, it will use AI and other technologies to promote innovation and model transformation of office products, create a new engine for digital content innovation and development for users, and continue to promote the digital transformation of organizations and individuals.
On the evening of March 20, the Jinshan Office also announced the resignation of executive Song Tao as the company's vice president and board secretary. Pan Lei and Zhao Meihan were hired as director secretary and securities affairs representative respectively.
According to data, Pan Lei graduated from China University of Political Science and Law, previously held positions such as securities affairs representative at Beijing Yihualu Information Technology Co., Ltd., and has been a securities affairs representative and investor relations director at the Jinshan office since September 2020.