“Science and Technology Innovation Board Daily”, April 24 (Reporter Guo Hui) The Jinshan Office released financial results for the first quarter of 2024 yesterday evening (April 23). According to the data, the company's revenue for the first quarter was 1,225 million yuan, up 16.54% year on year; net profit to mother was 367 million yuan, up 37.31% year on year; basic earnings per share were 0.79 yuan, up 36.21% year on year.

By business, financial reports show that Jinshan Office's domestic personal subscription and institutional subscription business revenue both increased year-on-year in the first quarter. Sales revenue during the period was 734 million yuan and 242 million yuan respectively, with year-on-year increases of 24.80% and 13.57% respectively.

Jinshan Office said that the company continues to increase user stickiness and payment conversion through membership benefits, driving steady growth in the domestic personal office service subscription business; in terms of institutional subscriptions, with the company's official launch of the WPS 365 office platform in recent years, the institutional subscription sales model has entered a stage of deep transformation, and the domestic institutional subscription and service business has maintained steady growth.

As of March 31, 2024, the number of monthly active devices of Jinshan Office's main products was 602 million, an increase of 2.21% over the previous year. This figure is slightly higher than the number of active devices per month at the end of 2023, which is 598 million. Among them, the number of monthly active devices on the PC version of WPS Office in the first quarter was 270 million, up 7.14% year on year; the number of monthly active mobile devices was 329 million, down 1.50% year on year.

As of the close of April 23, the latest market value of Jinshan Office was 131,964 billion yuan. The company is also currently one of the few enterprise software companies in the A-share market with a market capitalization exceeding 100 billion yuan. After the business model experienced selling copyright to the B-side, selling advertisements to the C-side, and selling individual membership subscriptions, Jinshan Office launched the WPS 365 office platform on April 9 this year, further deciding to fully enter the B-side enterprise application market.

According to the introduction, WPS 365 integrates Office Suite, AI applications, and collaborative cloud document functions, and has upgraded enterprise-level application features. According to the vision of Zhang Qingyuan, general manager of Jinshan Office, WPS 365 is to help enterprises build their own brains and be able to use various mainstream models.

In an interview with the media, Zhang Qingyuan roughly estimated that in the future, the annual revenue of the enterprise side will be more than 1 billion or 2 billion dollars. “The B-side's revenue in the Chinese market is currently low, but the ceiling is very high. Once a company has paid, the payment cycle will be very long, and the momentum will be greater.”

According to the 2024 Restricted Stock Incentive Plan implementation assessment management measures issued by the Jinshan Office on April 23, the company also continued the performance evaluation criteria of the previous round of equity incentive measures, using the maximum value of the revenue growth rate and performance growth rate of the institutional subscription business for the next three years as an attribution condition.

The target for the first vesting period requires revenue growth of at least 10% in 2024 or revenue growth rate of not less than 15.00% in the institutional subscription and service business.

Influenced by the external market, after the release of Jinshan Office's 2023 report this month, various institutions such as Tianfeng Securities, Orient Securities, and Huaxi Securities have lowered their previous performance or earnings per share expectations for Jinshan Office in 2024 and 2025.