Software

Kingsoft Reports Revenue Up 42%, Ex-CEO Returns

Kingsoft has released its Q2 financial report and interim report, which say that the company's revenue increased by 42% to CNY346.8 billion in the first half of 2008 with online games and software contributing 66% and 34% of the total revenue, respectively.

According to the reports, in the second quarter of 2008, the total revenue of Kingsoft was CNY171.8 million, a year-on-year increase of 23%. Of the total revenue, the software business contributed CNY62.4 million, a year-on-year increase of 71%, accounting for 36% of the total revenue; and the online game business contributed CNY107.8 million, a year-on-year increase of 6%, accounting for 64% of the total revenue.

In the first half of 2008, Kingsoft's software business made revenue of CNY116.3 million, a year-on-year increase of 87%. The main reason for the rapid growth is because of the increase of the user number of its anti-virus product. So far, about 8.7 million users use its anti-virus product daily, which increased 63% compared with the same period last year.

In the online game sector, Kingsoft achieved revenue of CNY228.1 million in the first half of 2008, a year-on-year increase of 28%. As an important index to judge the popularity of an online game, the daily average greatest on-line population of Kingsoft's online games reached 850,000, which increased 72% compared with the same period last year.

Qiu Bojun, president and CEO of Kingsoft, says that the company's newly released online games in the second quarter brought significant growth to its interim performance. Kingsoft will take more actions in capital operation.

According to reports of local media, after cooperating with China's online games team to enhance its online games development ability, Kingsoft acquired Shenzhen Zhaoshang Zhuoer Information and Technology Co., Ltd, a network security products supplier, to deploy its strategic market in SME security sector.

In adidtion, Lei Jun, who resigned his posts as CEO, chief science office and president of Kingsoft at the end of 2007, has recently been assigned as the company's vice president of the board of directors and non-executive director.

Kingsoft announced this decision after the release of its 2008 interim report. The company says that the original vice president of the board of directors and executive director Lei Jun will be again assigned as Kingsoft's vice president of the board of directors and a three-year non-executive director. However, Lei told local media that he hopes to participate in the management of Kingsoft in another way. At present, Lei Jun is the second big shareholder of Kingsoft and participates in the strategic planning of the company.

As one of the founders of Kingsoft, Lei has been the company's executive director from 1998 to 2008.

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