The new WPS 365 creates an "enterprise brain", and Kingsoft Office's To B business opens the growth ceiling

Driven by new technologies such as AI, Kingsoft Office is opening a "new era" of products.

On April 9th, the Kingsoft Office Productivity Conference was held in Beijing, and WPS 365, a new office productivity platform for organizations and enterprises, was released on the spot, including the upgraded WPS Office, the newly released WPS AI Enterprise Edition and WPS collaboration.

It is understood that the new WPS 365 opens up the three major capabilities of documents, AI, and collaboration, and realizes seamless switching between various components. To put it simply, users can easily call all kinds of mainstream large models on WPS 365, and can also use the software to write, communicate, and hold meetings at the same time, so that one software can efficiently complete various tasks and improve office efficiency.

At present, the number of government and enterprise customers served by Kingsoft Office has exceeded 17,000, with the deepening of the demand for information innovation of central enterprises and state-owned enterprises and the surge in the demand for digital office of small and medium-sized enterprises, WPS 365 is expected to become a powerful assistant for enterprises to manage digital assets and improve efficiency, and Kingsoft Office will also further expand the market space of To B.

WPS 365 has been newly upgraded, opening a new era of one-stop AI office

In this year's government work report, the concept of "artificial intelligence +" was put forward for the first time. This means that artificial intelligence will be more widely applied in various fields, deeply integrated with traditional industries, and create a new development ecology for all walks of life.

In the office field, it has taken the lead in AI transformation, and as a leader in domestic office software, Kingsoft Office is becoming the "leader" of this change. At the Kingsoft Office Productivity Conference held on April 9, WPS 365 for organizations and enterprises was upgraded to further open up AI and collaboration capabilities and create a new office productivity platform.

Zhang Qingyuan, CEO of Kingsoft Office, said that WPS 365 comprehensively covers the basic needs of an organization's daily office, from document creation to instant messaging (IM), meetings, emails, and then to AI applications, marking the official upgrade of a document processing suite to a one-stop AI office, allowing enterprise productivity to take off immediately.

In terms of collaboration, the conference demonstrated the online collaboration function of local documents with one click, which can be turned into collaborative documents and invite others to participate in editing. After the collaboration is complete, you can also choose to turn off and restore the collaborative document to a local document for seamless switching.

In terms of AI, WPS AI Enterprise Edition mainly includes three major components: AI Hub (intelligent base), AI Docs (intelligent document library), and Copilot Pro (enterprise intelligent assistant). Among them, AI Hub provides enterprises with various "out-of-the-box" large models, and has been connected to hundreds of large models including MiniMax, Zhipu AI, Wenxin Yiyan, SenseTime Ririxin, Tongyi Qianwen, etc., which can be easily called by users, greatly reducing the threshold for using large models.

AI Docs aims to help enterprises better manage their digital assets. The large amount of documents, chat data, and emails accumulated in office computers are all important digital assets of enterprises. With the help of AI technology, the important information in these digital assets can be easily extracted to form a valuable document library.

Copilot Pro further highlights the attributes of service enterprises, which are different from many intelligent assistants on the market who are good at "writing poetry and painting" and are not good at analyzing and computing science content, WPS AI Enterprise Edition of enterprise intelligent assistants has achieved "ability to write and learn". For example, if a chain brand is given a traditional spreadsheet covering data such as sales of each store, the enterprise intelligent assistant can help it conduct various analyses on sales and profits, and make corresponding charts to make the business situation clear at a glance. In addition to sales analysis, the enterprise intelligent assistant can also provide reading assistant, attendance assistant, contract analysis and other functions.

At this press conference, Wang Dong, Vice President of Kingsoft Office, shared a formula for today's enterprise-level AI office: "WPS AI Enterprise Edition + Enterprise API + Enterprise Data = Enterprise Brain". He explained that the enterprise brain has a strong thinking ability, the perception ability to perceive everything, the memory ability of ultra-large capacity, and office automation, which is a mission that WPS AI Enterprise Edition helps customers achieve.

Guohai Securities Research Report believes that WPS 365 can effectively improve the digital and intelligent office experience of government and enterprise customers, and has successfully landed digital office lighthouse customers such as Hubei Airport Group and Perfect World. With the acceleration of the commercialization process, it is expected to open the growth ceiling of Kingsoft office in terms of volume and price.

The To B business is riding the wind and waves, with a potential market space of more than 10 billion yuan

In 2023, Kingsoft Office will achieve an operating income of 4.556 billion yuan, an increase of 17.27% year-on-year, and a net profit of 1.318 billion yuan, a year-on-year increase of 17.92%. Among them, the domestic institutional subscription and service business became one of the performance growth engines of Kingsoft Office last year, achieving revenue of 957 million yuan, a year-on-year increase of 38.36%.

For B-end users, Kingsoft Office's main product is WPS 365. According to the financial report, as of the end of 2023, Kingsoft Office's WPS 365 has served more than 17,000 leading government and enterprise customers, including party and government customers in Yunnan, Zhejiang, Shandong and other places, as well as well-known corporate customers such as China Securities Construction Investment, Huaxia Bank, and Geely.

At the conference, representatives of Shandong Big Data Center, China Resources Digital, Mengniu Group and other enterprises also shared their experience as customers who are already using WPS 365. Dong Kunlei, chairman of China Resources Digital, said that choosing WPS 365 to explore and build a new generation of smart office is actually a long-term professional companion of Kingsoft Office, especially the concept of enterprise brain, which has more intelligent attributes to control the overall situation.

Overall, in 2020, Kingsoft Office's To B business revenue was 826 million yuan. By 2023, the total revenue of the company's To B business has reached 1.612 billion yuan, and the revenue has increased by 95% in just three years. Now, with the upgrade of WPS 365, a new office productivity platform for organizations and enterprises, Kingsoft Office's To B-end business is expected to further open up room for growth.

In the To B business, Kingsoft Office mainly conducts business through institutional subscription and institutional authorization models. From the perspective of the institutional authorization model, in the past two years, the party and government information innovation has been basically promoted to the district, county and township level, and the relevant demand is expected to be released in the next two to three years, bringing a broad space for the development of the office software procurement market. At the end of September 2023, the SASAC issued Document No. 79 to determine the timing and specific goals of a new round of information innovation: by 2025, the party and government information innovation should be basically replaced, and by 2027, the eight major industries should be replaced.

Caixin Securities Research Report believes that software legalization is the trend of the times, and the superposition of the demand for party and government information innovation will provide strong support for Jinshan's office performance. According to estimates, the market space for the annual normalization of party and government information innovation office software procurement may be at the level of one billion yuan.

From the perspective of institutional subscription models, the information innovation needs of central enterprises and state-owned enterprises, as well as the digital office needs of small and medium-sized enterprises are increasing. Previously, the industry information innovation was mainly led by the financial, telecommunications and other industries, and in the past two years, it has accelerated its diffusion to the petroleum, tobacco and other industries, providing impetus for the growth of institutional customers of Kingsoft Office. In addition, many small and medium-sized enterprises are still in the initial stage of digital transformation, and the demand for digital office and collaborative office has been strong for a long time.

Caixin Securities Research Report said that in the future, the demand for digital office value-added services in addition to basic office software may gradually increase, and Kingsoft Office WPS 365 has basically covered common digital office value-added services, which is expected to support the upward trend of institutional subscription prices. According to estimates, the potential market space of institutional subscriptions for information innovation in the central state-owned enterprise industry is more than 6 billion yuan/year, and if the private enterprise market is added, it will reach the level of 10 billion yuan.

In order to seize the potential market of 10 billion yuan per year, Kingsoft Office also continues to build a technical strength that customers can trust. Zhu Yiyi, assistant president of Kingsoft Office, said that WPS 365 has industry-leading data openness, which can ensure that customer data is not lost and migration is not restricted.

Tianfeng Securities Research Report believes that Kingsoft Office actively embraces AI and is expected to enter a new round of growth cycle and continuously improve its value on the basis of office software leaders.

Editor-in-charge: Wan Jianyi

Proofreading: Peng Qihua

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