Good day, and thank you for standing by. Welcome to Kingsoft Corporation's third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to our first speaker today, Ms. Yinan Li, IR Director of Kingsoft. Please go ahead, Ms. Li.
Thank you, operator. Ladies and gentlemen, good evening and good morning. I would like to welcome everyone to our 2024 third quarter earnings call. I'm Li Yinan, the IR Director of Kingsoft. I would like to start by reminding you that some information provided during the earnings call may include forward-looking statements, which may not be relied upon in the future for various reasons. These forward-looking statements are based on our information and information from other sources, which we believe to be reliable. Please refer to the other publicly disclosed documents for detailed discussion on risk factors which may affect our business and operations. Additionally, in today's earnings call, the management will deliver prepared remarks in both Chinese and English. A third-party interpreter will provide consecutive interpretation into English. During the Q&A session, we will accept questions in both English and Chinese, with alternating interpretation provided by the third-party interpreter.
That aside, the translation is solely to facilitate communication during the conference call. In case of any discrepancies between the original remarks and the translation, the statements made by the management will prevail. Having said that, please allow me to introduce our management team who joined us today: Mr. Zou Tao, our Executive Director and CEO, and Ms. Li Yi, our Acting CFO. Now, I'm turning the call to Mr. Zou.
大家好，欢迎参加金山软件2024年第三季度业绩电话会。本季度得益于西山区超预期的表现，集团总收入和盈利能力都实现了显著增长。总收入达人民币29.15亿元，同比增长42%，环比增长18%。经营利润取得了新的突破，创下了历史新高，达到人民币11.4亿元。不仅同比大增204%，还实现了环比增长44%。其中，金山办公实现收入12.07亿元，同比增长10%，环比增长2%。游戏及其他业务收入17.08亿元，同比增长78%，环比增长33%。诸多财务业绩指标的上升，标志着我们核心业务的稳步推进，为此后的长期发展奠定了坚实基础。
Hello everyone, and thank you all for joining Kingsoft's third quarter 2024 earnings call. We are pleased to report strong growth in both revenue and profitability this quarter, led by an exceptional performance from CSR. Total revenue reached RMB 2.915 billion, representing year-on-year and quarter-on-quarter increases of 14% and 18%, respectively. Operating profit hit a record high of RMB 1.14 billion, a remarkable 204% increase year-on-year and a 44% increase quarter-on-quarter. Kingsoft Office Group contributed RMB 1.207 billion in revenue, up 10% year-on-year and 2% quarter-on-quarter, while our gaming and other business generated RMB 1.708 billion, a 78% year-on-year increase and a 33% quarter-on-quarter increase. These results demonstrate our core business momentum and position us for sustained growth.
下面我向大家具体介绍2024年第三季度的业绩情况。金山办公继续秉承技术立业，多年坚持不懈地投入技术研发，持续打造一流的客户体验，为我们的核心产品形成了深厚的护城河，使得我们在国内基础办公软件中一直处于行业领先地位。
Now, I will walk you through the business highlights of the third quarter 2024. Kingsoft Office Group maintains leadership in domestic office software through long-term R&D investment, aligned with our technology-driven strategy.
在国内个人订阅业务方面，本季度实现收入7.62亿元，同比增长17.2%。我们在AI和协作领域的研发都卓有进展。首先，收入增长主要来自我们持续优化功能和增强AI权益，吸引了更多的用户付费。在2024年10月10日，正式上线WPS AI 伴写，作为基于AI Agent范式驱动的智能写作工具，区别于传统大模型。AI Agent具备独立思考、调用工具的能力，逐步完成给定目标，并且在提高工作效率以及降低经营成本方面的优势也尤为明显。WPS AI 2.0为用户提供了更加便捷、高效的创作体验，进一步促进了用户粘性，提升了付费转化率。其次，WPS鸿蒙版的公测有望进一步提升产品的渗透率。2024年10月8日，正式开启了WPS鸿蒙原生版的公测，实现了多种文档格式的编辑和处理，并兼容了用户的操作习惯。这种多设备的交互方式和多终端的产品适配，为用户带来更智能的办公体验。借助鸿蒙的全场景协同能力，还可以根据不同的硬件产品优势，进一步实现更为高效的跨端协作。截至9月底，办公主要产品月活为6.18亿，同比增长4.9%。其中，PC端月活2.77亿，同比增长7%。移动端月活3.38亿，同比增长3.4%。
Our domestic individual office subscription business generated RMB 760 million in revenue this quarter, a 17.2% year-on-year increase. This growth was primarily driven by AI features, highlighted by the October 10 launch of WPS AI Co-writing. WPS AI 2.0 delivers a more efficient creation experience, boosting user engagement and conversion rates. Additionally, the public beta of WPS HarmonyOS Next is expanded to further enhance product penetration. Launched in October 2024, this version enables seamless document and data sharing across devices and platforms, supporting multi-user collaboration, browsing, editing, and version capabilities. At the end of September, our product reached 618 million monthly active users, up 4.9% year-on-year growth, including 277 million PC users, up 7%, and 338 million mobile users, up 3.4%.
在国内机构订阅业务方面，本季度实现收入2.48亿元。我们依托更完善的WPS 365产品体系，持续推行SaaS化转型，引导机构客户逐步从年产地向年账号模式转型，从而推动收入模式升级。三季度，新增的中大型民企和地方国企客户占比进一步提升。
Our domestic institutional subscription business generated RMB 248 million in revenue this quarter, primarily driven by enhanced WPS 365 offering, which has seen strong adoption among large private and state-owned enterprises in our public cloud business. We are expanding this revenue stream while optimizing our revenue model, building a solid foundation for sustainable growth in our domestic institutional subscription business.
在国内机构授权业务方面，本季度实现收入1.43亿元，同比增长9%。我们持续紧密地跟踪政策的变化以及客户的需求，充分布局了党政信创领域的下沉市场，受益于相关订单的增加，从而带动了国内机构授权业务的增长加速。
Domestic institutional licensing revenue reached RMB 143 million this quarter, up 9% year-on-year, aligning with policy changes and customer needs, with successfully expanding our presence in lower-tier government markets focused on localization solutions. This market expansion has driven order growth in our domestic institutional licensing business.
在海外业务方面，目前海外市场用户持续增长，主要以移动端为主，在PC端还有巨大的提升空间。凭借海外AI，前几周我们一度登上了Product Hunt榜单第二名，产品在海外愈发得到认可。
Our overseas business continues to see youth growth, primarily in mobile, with substantial growth potential in PC. Leveraging our overseas AI capabilities, we recently achieved second position on the Product Hunt leaderboard, demonstrating growing international recognition.
游戏业务在精品战略的总体指导原则下，持续聚焦于做深做透经典剑侠奇缘系列，并持续大力布局新赛道，拓展新品类游戏。我们秉承着对优质游戏内容生态的持续深耕，以及对游戏价值的不断拓展。剑网三无界，作为剑网三的端游传承的继承者，实现了我们多端互通的战略，自从上线以来表现出色。公测首月月活用户达到了1146万，其中有691万回归玩家，占比率达到60.3%。本季度又适逢剑网三十五周年庆典，转瞬十五载春秋，却依旧保持着旺盛的生命力。我们在探索游戏与现实的创新模式和路径上又一次取得新的突破，推动了旗舰游戏剑网三8月全平台流水，再创历史新高。
Following our prime strategy, the online game business continues to strengthen the classic JX Online series. We are making significant investments in new genres and market opportunities. JX Online 3 Ultimate has delivered strong performance since launch, reaching 11.46 million monthly active users in its first open beta month, with returning players accounting for 16.3%. In this quarter, coinciding with the 15th anniversary celebration of JX Online 3, the number of returning players has exceeded expectations, and the game achieved record-breaking revenue across all platforms in August.
剑网三凭借十五年累积下来深厚的文化内涵，结合先进的数字技术，以科技赋能文化与精神传承，在拓展文化影响力与社会责任感上，又一次做出了全新的探索。我们携手敦煌博物馆和敦煌市非物质文化遗产保护中心，共同推出的西域大世界项目，重点对历史上的丝绸之路的真实风貌进行了数字还原，更是获得了权威官媒新华社的认可。
The Western Regions Grand World Project, a collaboration between JX Online 3, the Dunhuang Museum, and the Dunhuang Intangible Cultural Heritage Protection Center, aims to digitally restore the historical Silk Route. This initiative has gained recognition from Xinhua News Agency, the Chinese official news outlet.
科幻机甲游戏《铁线机》8月13日结束了首次的封闭测试，参测玩家的热情超出了预期，并在全球范围内引发了广泛关注，预约人数接近300万。在Steam的心愿单最高排到17位，添加人数超过了100万。
Our sci-fi mech game "Mecha BREAK" successfully completed its first beta test in August. Drawing strong player response and global attention, the game garnered nearly three million global pre-registrations and peaked at 17th on the Steam Global Wishlist, attracting more than one million new users.
剑网三十五载江湖同路，侠心未改，让大家看到了我们多年对于聚焦精品游戏战略的坚定实施。《铁线机》的问世与备受瞩目，更体现了我们在探索新品类游戏方面的坚定决心。
The 15-year success of JX Online 3 demonstrates our commitment to our prime game strategy, where the strong market response to "Mecha BREAK" reflects our successful expansion into new gaming genres.
展望未来，金山办公将继续在AI和协作方面长期投入，满足用户在不同场景下的多样办公需求，为用户带来更加智能、高效的办公体验。游戏业务将致力于不断创新与品质提升，为全球玩家带来卓越的游戏体验和丰富的游戏内容。我们始终坚守用户第一、技术立业、坚持创新的理念，从而为我们的客户、股东和员工持续创造价值。接下来有请CFO李毅为大家介绍2024年三季度财务业绩，谢谢。
Looking ahead, Kingsoft Office Group will maintain its long-term investment in AI and collaboration, delivering intelligent solutions across delivery office scenarios. Our game business will focus on innovation and quality improvement to provide expansion of experience to players globally. We remain committed to our core principle of putting users first, promoting technology-driven business, and fostering innovation to create value for our customers, shareholders, and employees. Next, I would like to invite Ms. Li Yi to introduce the financial performance for the third quarter. Thank you.
Thank you, Zou Tao and Li Yinan. Good evening and good morning, everyone. I will now discuss the third quarter financial results using RMB as currency. Revenue increased 42% year-on-year and 80% quarter-on-quarter to RMB 2,915 million. The revenue split was 41% for office software and services and 59% for online games and others.
Revenue from the office software and services business increased 10% year-on-year and 2% quarter-on-quarter to RMB 1,207 million. The year-on-year increase was mainly due to the increased domestic individual office subscription business of Kingsoft Office Group, which was primarily attributable to increased user stickiness and commercial rest, supported by the introduction of WPS AI version 2 with four new assistants in this quarter that provided a more efficient, creative experience. Revenue from the online games and others business increased 78% year-on-year and 33% quarter-on-quarter to RMB 1,708 million. The remarkable year-on-year and quarter-on-quarter increases were largely attributable to, first, the outstanding performance of JX Online 3 and the successful launch of JX Online 3 Ultimate, further boosting the game popularity, and second, the active operation and enhanced experience of other games. Cost of revenue increased 20% year-on-year and 7% quarter-on-quarter to RMB 460 million.
The increases were primarily due to greater channel costs along with the revenue growth of the online games, as well as higher personnel-related expenses of online games business. Gross profit increased 46% year-on-year and 20% quarter-on-quarter to RMB 2,454 million. Gross profit margin increased by three percentage points year-on-year and one percentage point quarter-on-quarter to 84%, which were mainly due to the changes in revenue mix. R&D costs increased 28% year-on-year and 60% quarter-on-quarter to RMB 861 million. The increases were mainly due to increased headcount to support the development of AI and collaboration products, as well as higher accrued performance-based bonus. Selling and distribution expenses decreased 70% year-on-year and 4% quarter-on-quarter to RMB 365 million. The year-on-year decrease was largely due to high base in the third quarter of 2023, with promotional and advertising activities for the launch of new games.
Administrative expenses decreased 11% year-on-year and increased 7% quarter-on-quarter to RMB 166 million. Share-based compensation costs decreased 20% year-on-year and 29% quarter-on-quarter to RMB 58 million. Operating profit before share-based compensation costs increased 168% year-on-year and 37% quarter-on-quarter to RMB 1,202 million. Net asset losses were RMB 63 million for this quarter, compared with gains of RMB 18 million and losses of RMB 12 million for the third quarter of 2023 and the second quarter of 2024, respectively. Share of losses of associates of RMB 428 million were recorded for this quarter, compared with losses of RMB 307 million and RMB 169 million for the third quarter of 2023 and the second quarter of 2024, respectively.
Income tax expenses were RMB 31 million for this quarter, compared with income tax expense of RMB 44 million and RMB 48 million for the third quarter of 2023 and the second quarter of 2024, respectively.
As a result of the reasons discussed above, profit attributable to owners of the parent was RMB 430 million for this quarter, compared with profit of RMB 28 million and RMB 393 million for the third quarter of 2023 and the second quarter of 2024, respectively. Profit attributable to owners of the parent, excluding share-based compensation costs, was RMB 453 million for this quarter, compared with profit of RMB 69 million and RMB 441 million for the third quarter of 2023 and the second quarter of 2024, respectively. The net profit margin, excluding share-based compensation costs, was 16%, 3%, and 80% for this quarter, the third quarter of 2023, and the second quarter of 2024, respectively.
The group had a strong cash position towards the end of the reporting period. As at 30 September 2024, the group had cash resources of RMB 25 billion. Net cash generated from operating activities was RMB 1,387 million for this quarter. Net cash used in operating activities was RMB 552 million for the third quarter of 2023, and net cash generated from operating activities was RMB 1,045 million for the third quarter of 2024. Capital expenditure was RMB 109 million, RMB 160 million, and RMB 50 million for this quarter, the third quarter of 2023, and the second quarter of 2024, respectively. That's all for the introduction of our financial results. Thank you all. Now, operator, we are ready for the Q&A section. Thank you.
Thank you. We will now begin the question and answer session. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. We will now take our first question from the line of Xiaodan Zhang from CICC. Please ask your question, Xiaodan.
邹总，李总，尹总，晚上好。感谢接受我的提问了。然后我这边有三个问题想请教一下。那第一个问题是关于我们的游戏业务。今年以来游戏业务的表现持续超预期。那想请管理层分享一下如何看待后续增长的一个持续性。那第二个问题是关于我们的办公业务。我们看到上半年的一些短期扰动正在逐步的消化。那管理层对明年C端和B端业务分别是如何展望的。那第三个也是市场非常关心的股东回报的问题。那公司今年的这个经营利润改善非常明显。那目前账上的这个现金也非常的充裕。那管理层后续是否会考虑加大股东回报，尤其是分红。我快速翻译一下我的问题。
So, thanks, management, for taking my questions. And first of all, regarding the gaming business, what is your view on its growth resilience in the upcoming quarter? And secondly, could you please share your outlook on individual and institutional business within the office software sector? And lastly, any insights regarding shareholder return would be highly appreciated. Thank you.
好，我我来回答一下。李李等下补充啊。第一个问题就游戏的后续的这个增长性的这个如何啊。嗯，我看了一下啊，基本上明年呢，我们依然有3到5款游戏的储备。呃，这里的这里面已经拿到版号的有3款，还有两两两款呢正在申请版号。其中呢，有两款是我们这个呃，代理运营代理代理的产品，就是建新工作室做的，封神在灵和指尖山山海。呃，剩下3款都是我们自研的。这是这个这个储备情况啊。第二个呢，根据目前那个8月份这次解线机的测试情况来看呢，呃，我们我们我们认为这个明年的表现还是值得期待的。呃，当然具体的这个呃，这个到底如何这个增速啊等等，我还是一如既往的回答，我游戏这个东西不上线，我们是没有办法去就给出一个非常明确的这个指引的，只能根据呃，具体上线的头一个月数据再再去完善，再补充这个这个整整体全年的一个预期。嗯，好吧。谢谢，翻译一下题。
Okay, so regarding my answer is that actually for the growth of the potential of the game in the future, basically next year we still have three to five different types of games in stock, and which of that three of the games we have already got their certifications and another two is still under their application process. Among that, two of their games we are doing their distribution to do the operation for the product, which is made by a function of the company and have a game, and another three of the game we have a sea of research. And also based on the performances in August that of the Mecha BREAK, the situation, we think that next year the performances should be expected for the details regarding how it's going to look like and also the growth rate.
That is the same as our previous answer, that the game doesn't have any limitation yet. We cannot give a very clear answer for it, and also we can only base it on the data after launch and to give some like guidance for based on the performances.
Okay，第二个问题关于办公啊，这个B端C端的这个展望，嗯，我就几个方面这个回答一下。嗯，这个C端呢，这个大家也都关注了，自从我们这个这个这两年这个推动那个AI赋能这个领域啊，这个包括这个刚才那个电话会上我也我也介绍过他们发布的一些产品，我觉得我们还会持续去围绕这个领域吧。呃，应该是继续完善这个用户的体验，提升用户的这个这个这个这个感受。我这这是整个C端呃最核心的一个一个一个战略，还是围绕AI和协作展开的。对，呃，我之前也也也也也多次谈到过这个C端的战略啊，我说我们一定是首先去提提升用户的体验，扩大用户数，其次才会去呃做这个付费渗透率，第三步才是去持续这个提升这个up值。我觉得这个战略在过去的嗯，反正多年来吧，一直没有改变过，并且也取得了非常好的成效，呃，包括这次AI的这个这个推出。所以呢，我们会持续去围绕这个去深化。呃，B端呢，呃，今年也看到成果显著啊，我们在机机构的这个订阅以及从呃这个场地变成年这个订阅模式的转化上已经也也是迈出了这很坚实的一步，尤其是面对于国内的这些呃这个民营企业吧，因为那个那个今年也是取得了非常大的进展。我们相信这个这个机构订阅未来依然是还有非常广阔的空间，当然这个也证证实了我们本身大天使305这种模块化组件化的这种这种这种方式啊，还是能迎合了很多企业的本身的需求，跟那个那个整包子的那种产品比较啊。所以我认为这块依然有有有有很大的提升空间。此外，信创呢，我们也感觉逐渐逐渐有恢复的迹象啊，并且这个这个这个未来有可能这块也会是成为一个呃比较快速的一个一个一个增长点。好吧，翻译一下。
Okay, so actually for the office side, for the B and the C and the four quarters, we would like to answer in several perspectives. Firstly, from the C end, people are always pay attention in the recent two years. We are always trying to promote the AI to have AI value added. Previously, we have this introduction that all the products we have launched, we're going to base on this area to continue to have better performances, improve the customer experience, and also increase the customer's feeling for it. This is the whole C end. This is causing that we're going to base on the AI to have improved innovations and have some developments according to that. For the C end, this is our C end strategy. And firstly, we need to increase the customer experience to have more customer members.
And secondly, we need to have like strengthen their payment rate of the customers. Third step is that we need to upgrade their ARPU value. And recently, we never changed this strategy yet, and we got very good performances, including the AI promotion. For the B-side, we actually did acquired performances for the institutions or subsidiaries, and also for subscriptions. And initially, we have transferred from this their like SaaS subscription into their monthly institutional subscription. We think that this is quite good for big start, especially we are facing the current companies. This year, we have a very good improvement for the institutions subscriptions. So we believe that this product still has a very bright future. And this also proved that for the 365 modules, we're going to have different pieces and combine differently. We have matched with different enterprises amounts compared with the whole general package.
We believe that this product still has a very good, very good space to improve. Regarding the Information Innovation, we think that this is actually have a slight step by step to be recovered, and we believe that in the future it's going to have a very rapid growth.
好，第三个关于股东回报的问题啊，呃，我我们依然会在两个呃方面吧，一个是回购，实际上呢，呃，24年累计回购呢，我们也已经呃接近5个亿港币吧，回购的占总股比的是1.55。我们也观察了市场上同同同期在回购的其他公司啊，基本上这个这个我们这个这个回购的股比还是算是在这个市场上领先的。所以呢，这个我们依然会呃呃在在董董事会股东会授权的金额范围之内吧，呃，根据合适的时机，我们依然会采取这个回购的动作。这第一个。第二个关于分红呢，说实话，我们每年这个具体的分红方案呢，都是等到这个这个这个明年Q1吧，呃，董事会这个会会根据实际的这个呃利润的情况啊，以及公司发展的这个这个这个综合因素吧，会给出一个这个这个呃分红方案。好不好？所以这个这个我我目前没有办法呃具体回答这个是加大分红还是还是怎么样，呃，等等明年Q1我们再跟大家沟通。好，谢谢大家，翻译一下。
Okay, so regarding this shareholders return, the question is the same thing, that we're going to do it as there, but regarding this question, we're going to answer from your perspective. First, for the repurchase. Based on 2024, we have some repurchase, and the total amount is approximately HKD 500 million, and the total share value is 1.55. In comparison with the other companies who did the repurchase, basically speaking, our share value of the repurchase was quite leading. We will continue to do that, and also we're going to, based on this, the profit distribution period, the mandate period, continue to do this action.
Regarding the dividends, so every year our proposal has to wait until the next year for the Q1 of next year, and the Board of Directors is going to base on that share dividend situation and also the comprehensive elements of the company's development to give a proposal for the dividend. Currently, we cannot answer this question yet whether we're going to like expand this dividend or not. We can't answer this question at this moment.
Thank you. Our next question comes from the line of Jueqi Zhu from CITIC Securities. Please ask your question, Jueqi.
Securities的Zhu Jueqi，然后我首先恭喜这个公司在本季度取得一个非常强劲的表现。我三个问题请教一下啊。第一个问题就是关于我们的办公软件业务，实际上Q3的增速相对来讲较Q2是有改善的，想请教一下是否感受到宏观环境改善带来的业务回暖，以及呢WPS AI的产品和商业化进展是否符合我们的一个期待。第二点的话呢，是关于出海啊，请教一下管理层在办公软件业务和游戏业务在出海方面的展望。然后我第三个问题是就是请教一下本季度我们在利润方面表现非常强劲的原因。接下来我用英文简单翻译一下啊。
My first question is about office software business. Has the office software business felt the business recovery brought about by the improvement of the macroeconomic environment? Does WPS AI's product and the commercialization progress meet our expectations? My second question is about internationalization. What are the prospects for office software and gaming businesses to expand overseas? My third question is about our profits. What are the reasons for the strong performance in terms of profits?
谢谢关凌腾。我来回答前两个问题，第三个李毅来回答一下。第一个是关于这个宏观环境的改变啊，所以办公的这个是否感觉到回暖这个问题啊，因为大家都清楚啊，我们本身的很多客户啊，都是政府啊，包括那个国央企，显然尤其是对于这个政府侧，大家也看到这次主要是这个包括最新的全国人大常委会的那个600 million RMB啊，加上之前的，反正就是说基本是侧重于这个化债嘛。所以呢总体来讲我认为在政府侧呢，哎说通俗点就是手里有钱了嘛，就可以这个重新回归到正常的这个治理和经营上来。所以呢我认为是肯定是有对我们这个是有利的。对，然后那个另外呢其实就是这个政府化债这个让政府重新回归到这个正常的这个日常治理上来，无论如何都会从企业侧的经营来讲应该也是会得到一个明显的这个体现吧，这个因为跟上的问题解决了嘛。所以我们认为对于我们在推动这个B端的这个机构订阅这个领域呢，也应该会有比较大的改善，我们也是持这个比较乐观的一个态度。然后WPS AI这块呢，这个产品商业化进展是否符合预期啊，应该讲是目前是符合我们修正后的预期。我在上个Q回答投资人的问题，我就谈过我的观点。去年的这个AI出来，尤其是微软推这个叫做率先提出Copilot这个概念以来啊，整个市场对于这个AI在办公场景落地的期望啊，是有点像希望一步到位吧。我自己打个比方叫做直接完成0到1这么一个变化。而实际上呢，我们自己这个实践一年多以来，尤其是跟用户深度的在一起共创啊互动，我们现在调整的是认为这个0到1啊还是要先到0.1、0.2、0.3这种要要有这么个过程。所以你能看到我们今年其实也做出了很大的调整，我们推出了非常多的这个WPS AI的功能啊，包括AI写作助手、AI阅读助手、数据助手、设计助手、公式助手等等一系列的，其实我们不指望就说这一键或者说一下就帮用户全解决，自动生成或自动完成，而是帮助用户在不同场景下去提升效率。呃这就是我所表达的，先不要指望一下子0到1，而是去完成0到0.1、0.2、0.3这么一个过程。对这个今天想来，这个也是更符合事物本身的一个发展规律的。所以从这个维度来讲呢，我们认为今年是非常好的完整完成了这个调整后的这个AI发展的一个策略的。好，翻译一下。
Okay, firstly, to provide the understanding of this macro environment and regarding the question whether we can foresee that it has the rebound. Actually, we have a lot of customers that are government or they are state-owned enterprises. From the government perspective, especially recently, the latest standing committee of the National People's Congress mentioned that it's going to have a budget of RMB 600 million to do the investment. Based on this area, generally speaking from the government perspective, they have money in hand, so they're going to get back to their regular like daily governance and operation. That is why I think that this is definitely the benefit for us. In addition, to let the government get back to the regular daily governance and from their enterprise perspective, it's going to have a tremendous increase.
So for us to do the promotion of B-end, especially for the institutional subscription area, it's going to have a very big improvement. For the AI perspective, regarding the AI, that is whether we have reached the progress of a product like commercialization. As I had mentioned previously, that is based on really realized our expectations after we reversed our strategy. Last year when the AI was promoted out, especially for Microsoft, first we can raise the concept of Copilot. So the market expected to realize from zero to one at once, but actually based on our practice in the past one year, especially we'd like to have a cooperation like innovation together with our customer. We think that it's not going to go directly from zero to one, it's going to go like 0.1, 0.2.
But we help our customer to increase their customer experience in different scenarios. That is why we mentioned that this is going to complete the 0.1 or 0.2 process. This is actually more basically satisfied of the objective physical development process, and based on this, based on this dimension, we think that this year we have a very good development strategy for AI.
好，第二个问题关于出海的，我先讲讲游戏啊。从数据上看呢，我们本身的这个海外游戏收入占比在持续提升。然后从区域上看呢，其实我们最早大家都清楚啊，我们从2004年开始，我们就在越南，包括东南亚地区推出了剑侠游戏。然后其实从我们去年的这个二次元游戏呢，就已经开始了，是一种全球化的布局。对，而且随着明年这个机甲突破啊，这也是一款面向全球的产品，我们认为应该会取得突破性进展的一年。好吧，然后对于办公这个海外，我们基本上啊，这个在过去啊，其实并没有应该说尤其是疫情以来吧，我们其实并没有重点去做。但是呢，我们从数据上看到啊，无论是它的收入还是这个移动端PC端用户，这个都保持了一个非常好的同比和环比的增长。虽然我们对外目前暂时没有具体披露海外的数据啊，但实际上我们看到了一个非常大的潜力，尤其是我注意到啊，整个PC用户这个其实我们过去主要是推移动端为主啊，但是呢由于用户用了我们的移动端之后呢，主动来下载我们的PC端啊，我们的PC这个月活都已经过了几千万了。在海外，我觉得这个环比和同比都是两位数的增长。我觉得这个也从另外一个角度说明，其实海外用户对我们的产品接受度是越来越高的。因此我们这个跟管理层一致认为，未来海外会是整个金山办公的一个非常强劲的增长点。因此呢我之前有一次会上也谈到，其实从去年原本计划是要重点做海外的，但是AI出来了，AI出来之后呢，我们把战略重心先转移到AI本身上来。对，但是呢从目前的经过两年的发展吧，我们认为AI这个领域在办公场景落地呢，已经逐渐站稳脚跟吧，逐渐趋于成熟。所以从明年开始，我们确实有计划去积极拓展整个海外市场。好，翻译一下。
Okay, so actually regarding the overseas strategy, we would like to talk about the game first. From the data perspective, we actually for the overseas game has tremendously increased of this income percentage from the regional area because it's that we started to get into overseas since 2004 in the VN and also the Southeast Asia. We kind of promoted the martial arts games. And last year for the Mecha game, we have started the global layout. And next year for the Mecha BREAK, this is actually a product fitting to the global market. And we believe that it's going to have a breakthrough improvement. And for the office layout of the overseas, basically in the past we didn't have any promotion yet, especially since the COVID-19 era. And we didn't focus on it yet.
But from the data perspective, no matter for the income for the mobile end or the PC end, that our customers always has a very good increase no matter for their like month monthly compared or this the yearly compared. And although we didn't release the data yet, but the potential is quite big, especially for the entire PC end. Previously we only promote the mobile end, but the customers is going to download the PC end once they recognize the game. And we can see that the monthly active users could reach to more than 10 million users. And the increase number of the year on year and the month on month could reach to like like more than 10%. Actually we can see is that the overseas customer recognize our product very well.
So we think that in the future for the overseas market, for the entire Kingsoft Office is going to have a very strong growth. Last year initially we would like to focus into the layout of the overseas market, but AI comes out and that is why we transferred our key point into AI in the end and also through the two years development. We think that the AI is going to have a localization for the office area and it's going to have a step by step become more and more mature. Next year we're going to develop the overseas market and we hope, we believe that it's going to have a good performance.
好，第三个问题关于利润的话，我想从两个方面来分享一下。那么首先的话呢，就从收入端的话就可以看到我们这个季度的游戏收入的话是超了我们自己内部和外部的预期了。那么同比增长的是70%以上。这里面的话主要是来自于我们的剑网三。那么剑网三呢，作为一款我们15周年的游戏，在我们6月份的时候推出了无界以后多端互通以后，从活跃玩家包括到我们看现在的数据，那么它的玩家的数目啊，就日活跃的数的话呢，还是有一个数倍的一个增长。呃，在这方面的话呢，就是相当于是说我们在8月份的时候啊，在周年庆的时候的话呢，也有比较运营好的运营活动，这从收入端。然后在利润端的话呢，其实还想分享一点的话呢，就是我们的西山区。那么刚才我们提到的剑网三，我们的旗舰端，因为它是PC端，它本身的利润率会比较高一点。呃，第二点的话呢，就剑网三呃，应该是说西山区它自研自发的手游，从我们22年开始的剑侠世界以来，我们很多的应该来讲大部分的用户都来自于我们的官方的渠道。这也就意味着我们分给外面渠道的费用会比较少一些。所以呃，我们一直跟市场上沟通的话，就是西山区它的业务模式的话，它作为一个自研自发，特别是在手游方面的话，我我们觉得的话这两年还是比较成功的。所以从利润端也可以看得到。对，主要是这两方面收入和利润端这两方面的结合来看的。嗯，谢谢。
Actually from the profit perspective, we would like to expand into two perspectives. Firstly, from the income end, this season for the games is no matter for the internal expectation or the external expectation, it has exceeded our expectation and the year-on-year growth could reach to 7%. And for the JX Online 3, this has reached to when we have this annual ceremony for 15 years and also in June the daily active users has tremendously increased. And also in August for the annual ceremony, we realized that for the income perspective it's quite good. And also for the profit perspective for the CJ compared with the JX Online 3, for the PC end the interest rate is quite high.
For the JX, the mobile game since 2022, they're compared with the JX Online 3. Most of the customers coming from our official channel. And that means that we didn't share that much resources through their channels. We always have to communicate on the market that so the JX, this the business model is that it's going to have a self research and a self publish. So for the mobile game, we think that this we're going to explain these two questions by these two perspectives. One is for the income end and then another one is from the profit end.
Thank you. Our next question comes from the line of Linlin Yang from GF Securities. Please ask your question, Linlin.
好的，周总，叶总，晚上好。我想请教两个问题，一个是关于游戏业务今年Q4以及明年的一个指引，然后第二个问题是关于我们联营公司的损益。因为我看到金山云实际上它的毛利率也是改善的，然后整体的如果把那个一次性的减值剔除掉的话，亏损也是在减亏的。所以就想请教一下，那如果把这种一次性的减值给剔除掉，那对于我们上市公司报表端的损益就是联营公司损益，大概对应的是多少，然后往后这一部分大概还有就是后续还会不会有类似的这种一次性的影响因素。那我翻译一下
I have two questions. The first question is about the game business. Could you give us some guidance in Q4 and next year? My second question is about the losses of the affiliate companies. After excluding one-time portion, what would be the losses of the affiliate companies? Will there be any further impairment losses in the future? Thank you.
嗯，林林总，那我就先回复一下您关于那个市场指引的。游戏这边的话，我们预计现在全年大概是30%一个增长。明年的话呢，就现在具体的数字，我们现在确实还没有，因为还没有开始，一直还没有完成。但是刚才周总也介绍了，就是我们现在明年可能上线的游戏，大概有五款，两款代理的，然后三款是我们自己的，就包括比较让市场比较期待的Mecha Break，然后剑侠情缘零，剑侠世界四，然后两款代理的封神再临和Zhijian Shanhai，就是大概有五款游戏。因为从数量来讲，应该还算一个大年。就您提到的那个金山云的一次性的，我先讲一次性的影响吧，对集团这边的影响，大概是三个多亿左右，一次性的。关于它后续的，后续的话呢，金山云的他们业绩会是从谷底开始，就是具体的数据，可能从他们的会上会更方便一些，对林林总。 好的，我跟进一个小问题，就是刚才提到全年的31%，因为我们看到三季度这个增速是非常高的，然后再考虑到四季度本身，剑网三又是一个有新资料片，算是传统的旺季吧。那我们就是怎么看这个Q4的一个数据指引啊。 因为我们是一款长线运营的游戏，15周年了，我们也是在运营节奏上面还是会做一些季度性的调整，不会说Q3已经是非常高了，所以我们在节奏上面还是会调整一下的。 好，明白，好的，谢谢，非常清楚。
So our answer is that we based on this market guidance for the games we expect is that the annual growth is going to reach to 30% and currently we don't have an actual number comes out yet because we didn't complete it yet but next year we're going to have five games launched two of the games was our distribution distributed but we are their agent and three of the games is self-researched and developed. and so we can see is that the market is quite expected for the five games especially for Mecha Break and also we have the JX World 4 and like the JX Online 3 Ultimate this type of games that is for these five games is quite good and quite attractive in this market from the number for the quantity perspective this is going to be a big year for us so
For the Kingsoft Cloud let's talk about the Kingsoft Cloud the like what impairment we can see is that the impairment is roughly more than RMB 300 million so this is actually the impairment for this quarter we think that the performance is going to from the 80 points to start from the 80 points for the specific data we're going to follow up later and now I have a follow-up question is about Q4 for the JX Online 3 what about the expectation for the Q4 data and our answer is that because we are doing this operation for a long term as we mentioned previously that we are celebrating the 15th annual ceremony so we will do some like quarterly adjustments we cannot say that Q3 is going to be very high.
Thank you. We have now come to the end of the question and answer session. Thank you all very much for your questions. I'll now turn the conference back to Ms. Yinan Li for closing comments.
Hi, thank you for joining us today and this will conclude our presentation for the 2024 third quarter earnings call. Thank you.
Thank you for your participation in today's conference. This has concluded the program. You may now disconnect.