A format change in a Ministry of Commerce announcement attachment has thrust domestic office software WPS into the spotlight, driving Kingsoft Office's single-day trading volume to a record 8.7 billion yuan in the capital markets.
On October 9, the Ministry of Commerce announced export controls on overseas rare earth-related items. The attachment file departed from the traditional Word or PDF formats, adopting the domestic WPS format for the first time. The new regulations also require relevant application documents to be submitted in Chinese and WPS format, sparking widespread discussion.
On October 12, the topic "Ministry of Commerce announcement attachment changed to WPS format for the first time" topped Weibo's trending list, directly triggering capital market enthusiasm. On October 13, Kingsoft Office surged as much as 18% intraday before closing at 321.70 yuan per share, up 8.32%, driving domestic software concept stocks higher. The same day, Hong Kong-listed Kingsoft Software saw intraday gains exceeding 15% at one point.
Kingsoft Office responded that as a domestic office software company, safeguarding user data security and defining office standards suitable for Chinese enterprises is both a responsibility and mission. To better serve enterprise collaborative office needs, Kingsoft Office will conduct product upgrades in the near term to continuously create value for enterprise clients. The company will persist in technology-driven development and user-first principles, helping improve office efficiency and protecting information security.
As a comprehensive software company with 37 years of history, Kingsoft Software was founded by Qiu Bojun in 1988, making it one of China's earliest internet software companies. Its current business encompasses office software, gaming, cloud computing, and network security. Kingsoft Office, which focuses on WPS office software and services, was spun off from Kingsoft Software and listed independently on the STAR Market in 2019.
According to public information, Kingsoft Software holds a 67.5% stake in Kingsoft Office as its controlling shareholder and actual controller. Xiaomi founder Lei Jun holds 15.31% of Kingsoft Software shares as the actual controller. However, Lei Jun currently serves only as director and honorary chairman at Kingsoft Office without receiving company compensation.
"In recent years, the gradual popularization of domestic operating systems and increased demand for office software localization have promoted WPS format applications domestically," internet industry analyst Zhang Shule noted. The Ministry of Commerce's adoption of WPS format reflects both government-level domestic software usage requirements and its user base foundation.
Currently, WPS Office PC domestic daily active devices have exceeded 100 million, with major products reaching 651 million monthly active devices globally. With the wave of legitimate software and domestic substitution, WPS now covers over 80% of China's government and enterprise market, while also maintaining advantages in mobile applications.
Starting as a single document editor, Kingsoft Office has gradually transformed into a comprehensive office system, particularly launching a series of AI and enterprise-level collaborative functions amid rapid AI technology development. This year, WPS AI was updated to version 3.0, introducing the native Office intelligent agent WPS Lingxi. The office productivity platform WPS 365 maintained revenue growth exceeding 60%.
From a revenue perspective, consumer products remain Kingsoft Office's primary income source. In the first half of 2025, WPS personal business revenue reached 1.748 billion yuan, up 8.38% year-over-year; WPS 365 business revenue was 309 million yuan; WPS software business revenue was 542 million yuan, down 2.08% year-over-year.
In the first half of 2025, Kingsoft Office's R&D expenses totaled 959 million yuan, a 18.7% year-over-year increase, primarily due to increased R&D personnel compensation and AI investment.
At investor meetings, Kingsoft Office management disclosed cost pressures from AI strategy. Since WPS AI 3.0's launch, token consumption has grown exponentially, currently reaching trillions daily. This figure reflects the high computational costs of supporting AI functionality. Management indicated that knowledge bases and other high token-consuming products are major cost factors, though optimization opportunities remain. Caching technology could effectively reduce costs and improve response speeds, with potential new pricing strategies and additional value packages to balance costs and user needs.
From an industry perspective, while WPS has achieved compatibility with domestic operating systems and deep adaptation to trusted computing ecosystems, gaps remain compared to longtime rival Microsoft. Microsoft leverages its global presence and brand influence for larger office business revenue and paid user bases, with significant AI contributions.
Financial reports show Microsoft's Productivity and Business Processes segment (including Office business) generated $33.11 billion in Q2 2025, up 16% year-over-year, with Office 365 commercial paid users exceeding 400 million. AI drove Azure revenue growth to a two-and-half-year high, while Copilot monthly active users surpassed 100 million, becoming Microsoft's fastest-growing commercial product historically.
During this year's WAIC, Kingsoft Office Assistant President Tian Ran stated that office work is moving toward an era where everyone has an AI assistant. While AI office applications remain in early stages, technological breakthroughs will bring tremendous changes.
Long-term, domestic substitution will undoubtedly open broader market opportunities for domestic software companies. However, in international competition, whoever better integrates AI, understands and meets evolving office needs will occupy more advantageous positions in the competitive landscape.