On September 11, during Beijing Kingsoft Office Software,Inc. (688111) semi-annual results conference, Chairman Zou Tao announced that the company will focus its second-half operations and promotion on a series of AI products represented by Lingxi, which were released at WAIC (World Artificial Intelligence Conference) 2025. These products include AI PPT, Lingxi voice assistant, and intelligent knowledge base, aimed at enhancing overall paid conversion rates.

This promotional strategy is based on the company's latest semi-annual report data. In the first half of 2025, Beijing Kingsoft Office Software achieved revenue of 2.657 billion yuan, up 10.12% year-on-year, with net profit attributable to shareholders reaching 747 million yuan, up 3.57% year-on-year. However, in the "AI + Office" sector, Beijing Kingsoft Office Software still faces competitive pressure from giants like DingTalk, Feishu, and Enterprise WeChat.

**C-End Focused Business Model**

Beijing Kingsoft Office Software's revenue structure reflects its business focus still leaning toward the consumer end. In the first half of 2025, WPS Office's global monthly active devices reached 651 million, up 8.56% year-on-year. By device category, WPS Office PC version had 305 million monthly active devices, up 12.29% year-on-year, while WPS Office mobile version reached 346 million monthly active devices, up 5.48% year-on-year.

WPS personal business generated revenue of 1.748 billion yuan, up 8.38% year-on-year, accounting for 65.8% of total revenue and remaining the company's core foundation. Domestic cumulative annual paying personal users reached 41.79 million, up 9.54% year-on-year, while overseas WPS cumulative paying personal users reached 1.89 million. Personal users' recognition of WPS value-added services continues to improve.

Beyond personal business, Beijing Kingsoft Office Software's enterprise-level business also shows growth highlights. In the first half of 2025, enterprise-oriented WPS 365 business revenue reached 309 million yuan, surging 62.27% year-on-year, mainly due to "bundled sales" strategies attracting small and medium-sized enterprises. However, this business accounts for only 11.6% of total revenue and remains highly dependent on WPS Office penetration rate for user acquisition, without forming independent competitive strength.

Beijing Kingsoft Office Software's AI-related business data still shows gaps. Public data indicates WPS AI had approximately 20 million monthly active users in the first half, less than half of WPS paying personal users, with AI's driving effect on personal subscriptions remaining limited.

R&D investment supports the company's AI strategy. In the first half of 2025, Beijing Kingsoft Office Software's R&D expenses reached 959 million yuan, up 18.70% year-on-year, with R&D expense ratio at approximately 36% and R&D personnel accounting for 66% of total employees. These investments are used to optimize WPS Lingxi's multi-round dialogue and format retention functions, though its enterprise version AI effectiveness remains constrained by insufficient data accumulation.

WPS AI enterprise version utilizes Kingsoft's self-developed expert models, while personal users accessing WPS AI call upon third-party models like MiniMax and DeepSeek that Beijing Kingsoft Office Software has integrated.

**AI Development Challenges**

On March 16, 2023, Microsoft (MSFT) officially launched AI-powered Copilot for Microsoft 365 applications and services. Starting that year, Beijing Kingsoft Office Software began releasing AI product iterations annually.

As Beijing Kingsoft Office Software's AI strategy inaugural year, 2023 marked the beginning of office software intelligent transformation with the release of WPS AI 1.0. This phase focused on the core goal of "tool empowerment," deeply embedding AI capabilities in three major directions - AIGC content creation, Copilot intelligent assistant, and Insight knowledge analysis - into WPS components.

In 2024, Beijing Kingsoft Office Software launched WPS AI 2.0, shifting strategic focus toward "knowledge value mining" and building enterprise-level "intelligent knowledge foundation." Compared to version 1.0's general tool attributes, version 2.0 emphasized AI's ability to activate enterprise knowledge assets.

In 2025, Beijing Kingsoft Office Software released WPS AI 3.0 - WPS Lingxi at WAIC 2025, entering the "intelligent agent services" new phase.

Assistant General Manager Tian Ran previously admitted that when developing WPS AI 1.0 in 2023, many product inertias existed, including AI product inertias. At that time, AI was in its early stages, and the company wanted to quickly launch products. However, after many AI basic capabilities went online, they didn't align with actual user needs - this was Beijing Kingsoft Office Software's conclusion based on over 100 million daily active users.

By 2025's WPS Lingxi, Beijing Kingsoft Office Software began returning to the product essence of solving practical problems. WPS Lingxi centers on document processing, emphasizing deep integration between AI and Office software. For example, PPT generation supports natural language template modification, and knowledge bases are built on cloud documents. This mode relies on Beijing Kingsoft Office Software's document data accumulation in the government and enterprise market but relatively lacks full-process collaboration capabilities.

**Office Competition Battle**

This represents the fundamental difference between Beijing Kingsoft Office Software's AI approach and the "Big Three" office collaboration platforms - DingTalk, Feishu, and Enterprise WeChat.

Unlike Beijing Kingsoft Office Software, DingTalk, Feishu, and Enterprise WeChat use "organizational management" as their foundation, integrating personnel, financial, and operational data to provide one-stop collaboration solutions. For example, Feishu's "enterprise knowledge Q&A" is trained on multi-dimensional data within the platform, making this model more suitable for complex needs of medium and large enterprises, though at higher costs.

Beijing Kingsoft Office Software's data mainly comes from structured documents of government, enterprise clients, and individuals - highly vertical but with weak scalability. This causes its AI to underperform in general scenarios, with users complaining that "AI PPT generation is inferior to directly finding templates."

Meanwhile, the office "Big Three" possess comprehensive data. DingTalk is based on Alibaba (09988) cloud ecosystem, Feishu relies on ByteDance's system, and Enterprise WeChat leverages Tencent's (00700) massive social traffic, all covering entire enterprise operation chains. For example, DingTalk's "AI usage rights transfer" design better suits flexible management for micro and small enterprises.

While Beijing Kingsoft Office Software can rely on WPS Office's 651 million monthly active devices for user acquisition and attract enterprise customers through "package discounts," its AI features maintain strict paywalls, with business premium version priced at 399 yuan per person per year.

The office "Big Three" emphasize low-threshold organizational services. DingTalk's startup version launched in 2024 costs 980 yuan annually, priced per organization with more inclusive AI capabilities. Meanwhile, giants are reversely penetrating Beijing Kingsoft Office Software's government and enterprise "moat," such as DingTalk promoting smart governance in Zhejiang and Fujian.

On August 20, Enterprise WeChat also released version 5.0, claiming "seamless AI integration" as core competitiveness. New intelligent search and intelligent summary functions emphasize "not changing user habits," achieving cross-scenario data integration through natural language processing.

Beijing Kingsoft Office Software's urgency in developing AI collaboration stems from its absence during the collaborative office explosion during the pandemic. At that time, DingTalk and Feishu quickly captured the market while Beijing Kingsoft Office Software failed to deploy timely, resulting in relatively lagging data accumulation and product formats. AI technology provides an opportunity for overtaking on curves.

CEO Zhang Qingyuan believes "AI may break the software industry's 80-20 rule" by improving penetration rates in lower-tier markets through intelligent agents. However, one challenge lies in how to use standardized products to compensate for insufficient data depth while responding to giants' expansion into government and enterprise markets.

Beijing Kingsoft Office Software's advantages include WPS Office's national-level penetration rate and information technology innovation policy support, but its government and enterprise software licensing business revenue declined 8.6% in 2024, requiring SaaS subscription transformation to maintain cash flow. DingTalk, Feishu, and Enterprise WeChat, as subsidiaries of major companies, can sustain longer-term losses.

With DingTalk, Feishu, and Enterprise WeChat all making efforts, Beijing Kingsoft Office Software's urgency in promoting Lingxi in the second half may reflect recognition of challenges and opportunities at this critical industry transformation moment.