Since having commercially launched our first office applications software, WPS 1.0 in 1989, Kingsoft Corporation Limited has now become a leading software developer, distributor and service provider in China, based on market share. We leverage our comprehensive software development platform to offer a wide range of innovative entertainment and applications software. We believe we have one of the largest in-house entertainment and applications software research and development teams in China dedicated to entertainment and applications software. We have self-developed the majority of our entertainment software and substantially all of our applications software products.
Our product development and support operations are focused on enhancing the user experience of our customers. We also increasingly utilize the Internet as an efficient and relatively secure channel to market and distribute our existing and new software products. While our users are primarily located in China, we also offer certain entertainment software products in Vietnam, Taiwan, Malaysia and Singapore and certain applications software products in Japan, Hong Kong, Taiwan, Macau, and Vietnam. We received the "Top Ten Game Developers" and "Top Ten Game Operators" awards at the inaugural China Game Industry Annual Conference held in January 2005, which was jointly sponsored by the China Game Industry Commission and the General Administration of Press and Publication of the PRC. In 2006, Kingsoft Internet Security was awarded the "China Famous Brand" award by the Bureau of General Administration of Quality Supervision, Inspection and Quarantine and the "Best Product of the Year in China" award by PC Magazine. Two of our in-house developed MMORPGs were also voted among the top ten most popular Chinese cultural online games at the 2006 annual China Game Industry Association Conference. Kingsoft was named one of the Top Ten Game Developers and one of the Top Ten Game Operators in China, and the Best Chinese Games Producers in Overseas Marketing Development in the Fourth (Year 2007) China Game Industry Annual Conference. We have several well-known products such as WPS Office, Kingsoft Power Word, Kingsoft Internet Security, and online games such as "JX Series" and "The First Myth". In addition, we sell Kingsoft Internet Security and Kingsoft Power Word to retail consumers, corporate organizations and government agencies in China using online and offline distribution channels. We also sell these products to OEM manufacturers for bundling with their personal computers for sale in the PRC and abroad. WPS Office is sold to both PRC government agencies and corporations through sales agents and direct sales. It can also be downloaded via the Internet by individual users. In August, 2007, Kingsoft commercially launched its first multi-language WPS Office 2007, which supports Chinese, Japanese and English. WPS concurrent individual online users exceeded one million. Kingsoft has set up some of China's largest online communities, including the most popular domestic online English learning website www.iciba.com and the online games website www.xoyo.com. In May, 2008, Kingsoft partnered with Google to launch "Google-Kingsoft Ciba". The partnership is the start of a new chapter for Kingsoft PowerWord as it transforms into a web-based service. With our headquarter in Beijing, we have five research and development centers based in Zhuhai, Beijing, Chengdu, Dalian and Shenzhen. In 2005, the company established Kingsoft Japan to promote the sale of our applications software in Japan and commercially launched the Japanese language version of our Kingsoft Internet Security 2005. In 2006, we completed a US$50 million private placement of shares to Tetrad, Intel and New Horizon. In March, 2007 we completed private placement of shares in Kingsoft Japan to JAFCO for a consideration of JPY119.0 million (approximately RMB7.1 million). In May, 2007, Kingsoft teamed up with Quang Minh Dec Communication and Technology Joint Stock Company to distribute and market Kingsoft WPS Office (English and Vietnamese versions) and Kingsoft Internet Security (English version) in Vietnam. This is the first English-language software launched by Kingsoft. In October, 2007, Kingsoft was successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited (the "Stock Exchange"), raising net proceeds of approximately HK$649.1 million. In February, 2008, Kingsoft announced a strategic partnership with Baidu, the largest Chinese language Internet search provider, to launch a free Internet security service that will benefit as many as 200 million users in China. In April, 2008, Kingsoft Internet Security 2008 was awarded the VB100 certificate by Virus Bulletin, the international authority in anti-virus software testing. Kingsoft Internet Security software passed the test for the first time in August 2007. In May, Kingsoft invested RMB10 million in the JV for an initial shareholding of 40%, entered into a framework agreement with Lianking (炼金), an online game R&D studio in China, to form a joint venture ("JV") that will develop online games; Kingsoft partnered with Google to launch "Google-Kingsoft Ciba", the partnership is the start of a new chapter for Kingsoft PowerWord as it transforms into a web-based service; entered into the Commodity Houses Pre-sale Contract and the Supplemental Agreement with Beijing Yinbei, Kingsoft agreed to purchase the Property , which is a seven-storey composite building located at the north of Xiaoying Road West, Haidian District, Beijing as the Company’s new headquarter, at a total cash consideration of RMB 175,000,000 (equivalent to approximately HK$ 195,300,000); Kingsoft launched open beta testing for the highly anticipated massively multi-player online role-playing game ("MMORPG") The First Myth II. In June, Kingsoft formed a joint venture company in Vietnam, the joint venture company is called Kim Quang Software and Technology Joint Stock Company; Acquired China Merchants InfoGate Ltd. ("InfoGate")，an Internet security products and services provider in Shenzhen, at a cash consideration of RMB14.52million plus future earn-outs. In July, Kingsoft entered into a purchase agreement with the State Grid Corporation of China ("SGCC") with value over RMB10 million. Each unit in SGCC, including 31 regional grid companies, electric power companies located in each province, autonomous region and municipal as well as 21 directly subordinated units will fully adopted the software. In September, Kingsoft formally adopted ERP software, which will help improve the internal processes of resource utilization and management efficiency. In October, "JX Online World" conducted open beta testing on October 16, and it has recorded the peak concurrent users of over 280,000 during its close beta period, set concurrent users to a new high on the China-made online games; Kingsoft entered Malaysia market and formed a subsidiary, Kingsoft (M) Sdn. Bhd , this is the first time that Kingsoft expands overseas markets through a wholly-owned subsidiary. In November, Kingsoft reached a strategic cooperation agreement with Microsoft MSN to jointly launch the free "MSN Protection Shield v1.0" and "MSN Security Center", the reliable anti-virus software for all users of Windows Live Messenger and Internet; Kingsoft celebrated its 20th anniversary and announced the launch of four new products, including "WPS Office 2009", "Kingsoft PowerWord 2009 Oxford Edition", "Kingsoft Internet Security 2009" and "JX Online 3"; "JX Online 3" kicked off its close alpha testing. In December, with a total consideration of US$8,000,000, Kingsoft entered into an agreement to acquire approximately 30.03% interest in aggregate in the share capital of Sky Profit, a holding company that has full control in its PRC subsidiary companies developing computer and online game software products. In 2009,Yunnan state-owned enterprise Yunnan-Copper (Group) Limited Company purchases WPS Office; Google Pack selects Kingsoft WPS Office, it's the Company's second collaboration with Google; Kingsoft further expands Japan Market, launched self-developed Kingsoft PowerWord Japanese Version; China Securities Regulatory Commission purchases Kingsoft's WPS Office; Kingsoft collaborated with PICC P&C, offers Kingsoft Internet Security – Computer Insurance Version; Bank of Dalian purchases Kingsoft’s WPS Office; Kingsoft joins Microsoft Virus Information Alliance, becoming the first Chinese member; Kingsoft's WPS Office was awarded as Rakuten Most Valuable Professional Office Software in 2009 1H; launched "Kingsoft Internet Security 360 Special Edition"; Kingsoft 1st 3D online game - JX3 starts open beta testing. For over twenty years, Kingsoft has constantly delivered innovative software technologies that focus on and improve the user's experience. Our vision is to create world-class software products that run on every computer and our strategy is to enhance our position as a leading entertainment and application software developer, operator and distributor in China and to expand our presence in certain oversea markets. Today, Kingsoft has over 2,400 employees, with over 1,300 of which engaged in research and development. | |
