Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Francie Lu. Please go ahead.
Thank you, operator. Ladies and Gentlemen, good evening and good morning. I would like to welcome everyone to our 2022 Second Quarter and Interim Results Earnings Call. I'm Francie Lu, 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 own 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. Having said that, please allow me to introduce our management team who join us today. Mr. Tao Zou, our Executive Director and CEO. Ms. Yi Li, our Acting CFO. Now I'm turning the call to Mr. Tao Zou.
Uh,
Okay, I'll translate for Mr. Zou. Despite the challenges posed by the recurrence of the pandemic, we remain focused on our strategy and achieve satisfactory results in our core businesses. Kingsoft Office Group is committed to empowering the digital transformation of institutional users while enhancing the cloud office user experience for individual users. We concentrate on technological empowerment, product innovation, service enhancement, as well as marketing channel and ecosystem expansion. Meanwhile, we continue to pursue the product strategy of multi-screen, cloud, content, AI, and collaboration, and have achieved good operational performance. Regarding our online game business, we adhere to the strategy of premium games, focusing on technology innovation, as well as constant cultural enrichment, and promote further game development. The group maintained solid performance in the first half of 2022, with total revenue reaching RMB 3,687 million, increasing by 21% year-on-year.
Driven by the growth of subscription revenue from individual and institutional businesses, our office software and services business increased by 15% year-on-year during the first half of 2022. Our online games and other businesses increased by 28% year-on-year during the first half of 2022, primarily due to the contribution of mobile games launched in the fourth quarter of 2021, such as JX World III and JX1 Guilai. Now I'll turn the call to Ms. Li.
Thank you, Francie. Good evening, everyone. During the second quarter, individual subscription business sustained growth momentum. Based on the continuous enhancement of cloud office user experience, Kingsoft Office Group developed and introduced various new functions dedicated to specific scenarios aiming to drive the active use of cloud services and continuous increase in paying subscribers. Meanwhile, we remain focusing on attracting more long-term paying users. In response to government departments' demand for digital transformation management, end-to-cloud integration, and mobile office, our products are highly compatible with government office systems. We too assist the government in achieving automation gradually and realizing centralized document management, effective and efficient file application, collaboration features, security control centric. Facing the soaring demand for digital transformation from enterprises, our core products specialize in uploading documents to the cloud and ensuring file transfer security through continued optimization and the assistance of quality customer services.
Kingsoft Office Group has closely monitored the Localization industry trend. As the Localization gradually penetrates into local government, we take the initiative to tap those markets. Driven by favorable policies and industry demand, the demand for integrated end-to-cloud products from customers in industry Localization, such as finance, energy, and telecommunication, continue to grow, which leads our product penetration in the Localization to keep growing. We have optimized the reflowable and fixed layout document format standards of our Localization products to provide efficient and integrated user experience, which would further strengthen the competitiveness of our products. Kingsoft Office Group continued to strategically play down its advertising business by reducing the number of advertising spaces and the frequency of pushing notifications. Since we strive to improve the quality of clicks and reducing user interference, our advertising business was undergoing a steady and gradual decline.
During the second quarter, our flagship JX Online 3 PC game remained stable. Upon the launch of long release test in China at the end of last year, JX World III maintained an outstanding reputation and a high popularity among gamers. In addition, the game launched in Hong Kong, Macau, and Taiwan during the quarter and achieved an excellent performance. In the third quarter, we launched the open beta across all platforms, and a new section for JX World III, and will celebrate the thirteenth anniversary of JX Online 3 PC game. Through continuous content upgrade and technological innovation, we strive to sustain the vitality of our core IP. Meanwhile, we also uphold our corporate responsibility and continue to explore the social value of our games.
Defend, our initial self-developed charity game, which focuses on bipolar disorder, has received multiple awards and acknowledgment from international gaming authorities upon its debut overseas last year. In addition, the game has also received license approval in July this year, and is scheduled to launch in China. I'm gonna discuss the second quarter and the first half of 2022, operational and financial results. I'm starting from the second quarter, use renminbi as the currency. Revenue increased 24% year-over-year and decreased 1% quarter-over-quarter to CNY 1,834 million. The revenue split was 50% for office software and services, and 50% for online game and others. Revenue from the office software and service business increased 80% year-over-year and 6% quarter-over-quarter to CNY 925 million.
The increases were mainly due to the continued growth of individual and Institutional Subscription businesses, partially offset by the decrease in Institutional Licensing and internet advertising business of Kingsoft Office Group. The fast growth of individual subscription business was mainly driven by the increase in the accumulated paying subscribers as a continuous enhancement of cloud office user experience and enrichment of value-added functions. The growth of Institutional Subscription business was largely joined by increasing demand for digital transformation from government and enterprises. The decrease in Institutional Licensing business was due to reduction in new purchase orders of Localization solutions, partially offset by increasing demand for domestic office software from government and enterprises. The decrease in internet advertising business was a result of strategic contraction for the purpose of user experience enhancement.
Revenue from the online games and others business increased 31% year-over-year and decreased 7% quarter-over-quarter to CNY 910 million. The year-over-year increase was mainly due to revenue contribution from mobile titles released in the third quarter of 2021, such as JX World III and JX1 Guilai. The quarter-over-quarter decrease mainly reflected the high base of aforementioned games in the first quarter of 2022. Cost of revenue increased 35% year-over-year and 5% quarter-over-quarter to CNY 366 million. The year-over-year increases mainly reflected increases in content costs, as well as server and bandwidth costs of Kingsoft Office Group, and greater content cost of online game business. The quarter-over-quarter increase mainly reflected greater server and bandwidth cost and purchasing cost of products and services, along with the business growth of Kingsoft Office Group.
Gross profit increased 22% year-over-year and decreased 2% quarter-over-quarter to CNY 1,468 million. Gross profit margin decreased by 2 percentage points year-over-year and 1 percentage point quarter-over-quarter to 80%. Research and development costs increased 21% year-over-year and 6% quarter-over-quarter to CNY 642 million. The year-over-year increase was mainly attributable to increased headcounts, as well as personnel-related expenses of Kingsoft Office Group, which reflected our efforts in enhancing core competitiveness of products and services. Selling and distribution expenses decreased 9% year-over-year and increased 5% quarter-over-quarter to CNY 283 million. The year-over-year decrease and quarter-over-quarter increase mainly reflected changes in marketing spending associated with Kingsoft Office Group in each corresponding quarter. Administrative expenses increased 15% year-over-year and 4% quarter-over-quarter to CNY 153 million. The increases were mainly due to an increase in the personnel-related expenses.
Share-Based Compensation costs increased 54% year-over-year and decreased 15% quarter-over-quarter to CNY 63 million. The year-over-year increase was mainly due to the grants of awarded shares to the selected employees of certain subsidiaries of the company. Operating profit before Share-Based Compensation costs increased 78% year-over-year, and decreased 16% quarter-over-quarter to CNY 482 million. Net other gains for the second quarter of 2022 were CNY 6 million compared with gains of CNY 48 million and CNY 23 million for the second quarter of 2021 and first quarter of 2022, respectively.
Share of losses of associates of CNY 480 million were recorded for the second quarter of 2022, compared with the share of losses of CNY 211 million and CNY 275 million for the second quarter of 2021 and first quarter of 2022, respectively. Income tax expense for the second quarter of 2022 was CNY 29 million, compared with income tax credit of CNY 26 million for the second quarter of 2021, and income tax expense of CNY 34 million for the first quarter of 2022. As a result of the results discussed above, loss attributable to owners of the parent was CNY 139 million for the second quarter of 2022, compared with the profit of CNY 49 million for the second quarter of 2021, and CNY 99 million for the first quarter of 2022.
Loss attributable to owners of the parent, excluding ESOP was CNY 96 million for the second quarter of 2020, compared with profit of CNY 72 million for the second quarter of 2021, and CNY 143 million for the first quarter of 2022. The net profit or loss margin, excluding ESOP, was -5%, 5%, and 8% for this quarter, the second quarter of 2021, and the first quarter of 2022, respectively. Now on the first half of 2022. Revenue increased 21% year-over-year to CNY 3,687 million. Office software and services made up 49% and increased 15% year-over-year to CNY 1,796 million. Online games and others made up 51% and increased 89% year-over-year to CNY 1,891 million.
Gross profit margin decreased by 2 percentage points year-over-year to 81%. Operating profit before Share-Based Compensation costs increased 30% year-over-year to CNY 1,055 million. Share of loss of associates of CNY 692 million and CNY 460 million were recorded for the first half of 2022 and 2021, respectively. As a result of results discussed above, loss attributable to owners of parent was CNY 40 million for the first half of 2022, compared with a profit of CNY 165 million in the same period last year. Profit attributable to owners of the parent excluding ESOP was CNY 47 million, compared with profit of CNY 211 million in the prior year period.
The little profit margin, excluding ESOP, was 1% and 7% for the first half of 2022 and 2021, respectively. Our statement of financial position. We had cash resources of CNY 19 billion as at 13 June 2022. Net cash from operating activities was CNY 1,053 million and CNY 869 million for the first half of 2022 and 2021 respectively. Cash used for capital expenditure was CNY 197 million and CNY 121 million for the first half of 2022 and 2021 respectively. In the second quarter, we embraced the changing complex environment and achieved further development by continuously enhancing our products and services. Looking ahead, the Group will adhere to technological empowerment, maintain our investment in research and development, and enhance operational efficiency.
We will keep focusing on our core , adhere to integrity and innovation to empower our users and partners, and create long-term returns for shareholders. Thank you. Now I turn the call to Francie.
Thank you, Ms. Li. Operator, we're ready for the QA session.
Thank you. As a reminder, if you would like to ask a question, you need to press star one one on your telephone and wait for your name to be announced. We would ask if you could please ask your question in both Chinese and in English. Thank you. We'll now take the first question. Please stand by. First question is from the line of Liping Zhao from CICC. Please go ahead.
Hey, Zou Zong, Li Zong, 晚上好啊.
我这边有两个问题。首先第一个问题是关于游戏业务的。我们看到游戏业务的这个收入在二季度表现非常不错，然后想知道主要背后的这个驱动因素是什么，以及我们对于游戏业务在下半年的展望的情况。然后第二个问题是想问一下关于金山办公的业务，我们看到从披露出来的这个月活数据来看的话，环比是平的，但是我们整个二Q的话，金山办公的收入还是达到了18%的一个增长。想问一下管理层怎么看，我们这个月活以及付费率，在未来几个季度的一个趋势，以及我们长期怎么看这两个数的空间。然后我自己翻译一下。
Good evening, Mr. Zou and Ms. Li. I have two questions here. The first one is related to the gaming business, because the business segment has achieved very strong growth in the second quarter, what are the key drivers? Could management share the outlook of this business in the second half of the year? Two, is about the WPS business segment. The MAU of WPS is quarter-on-quarter flat, but the revenue achieved solid growth. How should we expect the trend of MAU and paying ratio in the coming quarters? Thank you.
好，我来回答这个问题。先回答第一个游戏的。游戏呢，总体上半年包括Q二，我们看到的同比去年都还不错。这个我觉得主要原因呢，其实就是我们去年Q四吧，尤其是剑侠世界3是去年十二月二十九号上的，基本上收入都放在今年了。所以呢，相比去年来讲，因为去年我们几乎没有新游戏上线，所以这是最核心的原因。当然我在上一次那个会上的时候，我也说过，就是我们的剑侠世界3呢，比我们预想中，我觉得从现在来看好了一倍，这个无论是国内还是海外吧，就总体来讲呢，这个超出了我们的预期。所以，当然剑网1：归来呢，因为也算是去年下半年放的嘛，所以在今年也还会有，包括它的海外，也还会有一个不错的贡献。这是最核心的原因吧。然后对于下半年或者说未来的展望，我还是之前的那个说法，就是第一个呢，取决于版号什么时候能拿到，第二个呢，当然也还要根据总体的这个行业形势吧，尤其是疫情。所以呢，我们会选择一个比较好的时机去发布我们的一些新品，我觉得这个是至关重要的。那个我们有几款游戏，这个在版号的申请呢，应该来说都比较顺利，基本上已经没有反馈了。以我的理解来看呢，其实就是在排队吧，就排队，等到了，这个自然就会有了。但是呢，我们现在也不清楚到底什么时候会有，好吧。这是游戏的。 第二个呢，办公，办公的，大家也看到，确实我们这个Q环比来讲呢，用户数，就用户数的增速，就我们是叫活跃设备数，这个相对没有以前那么表现得好，有点持平吧。这个其实我们内部也做了重点的研究，我觉得主要是几大原因吧。第一个呢，我觉得总体的PC增长还是不错，就PC端，但是主要是移动端的那个受影响比较大，我觉得是总体的这种移动设备的出货吧。我相信大家如果关注到一些移动设备的厂家的这个数据也能看到，其实全球的移动设备出货速度在下降。所以呢，这个我们肯定是会有一定的影响，这会影响，因为我们过去基本上都随着硬件的都有这种捆绑的这种。所以呢，这个使得整个的用户数，就是那个环比，有些下降。第二个呢，我觉得也跟整个的疫情吧，这个大的经济环境，有一定的关系。这个我就不展开，反正这个肯定是有一定的关系。 然后刚才谈到，我也，因为我很清楚你为什么问这个问题，就是我们过去都说了，我们先要涨用户数，用户数其实三个组成吧，一个是用户数，一个付费率，还有ARPU值嘛。所以呢，这个我理解的其实就是说会不会用户增长相对放缓，然后未来在这个付费率，这个包括那个ARPU值上，有什么动作，这是我理解你的问题。我想表达就是说，还是这样，就是我们今天，因为今天也正好开了办公的会，我觉得付费空间还是我们自己认为至少还有一倍吧，这个七八十%到一倍的空间。这个从目前的这个活跃数以及我们已经的付费用户的这个来看，这是我们这个估算吧，这还是有一定空间。第二个呢，确实就是这个ARPU值方面的提升呢，我们也认为有一定的空间。所以未来呢，当然这个用户数的增长呢，其实我自己，这个还是比较有信心的，因为我是觉得这种疫情也好，这种经济的这种放缓，我还是认为是一个阶段性的吧，你从更长的周期去看呢，我还是比较乐观的。所以呢，这是你第二个问题，基本上我就把用户数、付费率和那个ARPU值的这个问题我就一起回答了，好吧。
Okay, I'll translate for Mr.
For the gaming business, we have a very strong growth in the first half of the year, and there are the main driver is because the launch of several new games in the fourth quarter of last year, 2021. especially JX World III, which we launch by the end of December last year. The main revenue contribution is recorded in this year. Compare with last year, we didn't have any new games launched. In the last earnings call, I already mentioned that the actual performance of JX World III actually doubled our original expectation. Also the JX1 Guilai was also launched in the second half of last year. Both of its domestic and overseas revenue contribution was quite stable.
For the second half of this year and going forward, the revenue growth will depend on the license approval process and also the overall economic and the pandemic situation, because these factors will affect the actual launch date of our new games. According to the current license approval process, we have several games that are actually waiting in line for the license approval. The second question is on Kingsoft Office. The number of users of the MAU is quite flat quarter on quarter. There are several reasons for this. The PC side is still growing quite strong, there is a slight decline on the mobile side. The first reason is that because of the overall sale of mobile devices actually declining, this will obviously affect our number of users.
We used to have pre-installations in the hardware devices, so the decline in the overall sales of mobile devices will negatively affect our number of users growth. The second reason is the overall economic condition, also the pandemic situation. There are three aspects of this growth strategy. First is the number of users, the second is paying ratio, and lastly is the ARPU growth. According to the meeting we had internally today with the Kingsoft Office management, the paying ratio growth potential, there's still a 70%-80% to double of the number of paying users growth. The ARPU growth potential is also there. Also for the number of users growth, we think that there is still more space. The current overall weak economic situation, also the pandemic situation, we think it's still temporary.
In the long term, we are still optimistic with the growth of the number of users. Thank you. Operator, we are ready for the next question.
Thank you. We'll now take our next question. Please stand by. This is from the line of Yang Liu from Morgan Stanley. Please go ahead.
非常感谢提问的机会。那我这边有两个问题，第一个也是关于MAU的，有一个跟进的问题，就是想问一下管理层有没有一些高频的数据，因为如果是疫情影响，包括这个移动设备出货的话呢，肯定四五月份是一个低谷，然后我不知道现在有没有看到六七月份的一些改善。对，这是第一个问题。那第二个问题呢，是关于信创的，因为我们看到二季度，授权业务这块应该也是还是继续下跌的这样一个走势。我不知道，从现在来看，今年，今年全年，是不是这个业务的增长的希望都会比较低了。
I will do a translation. The first one is a follow up related with MAU. Does management have any high frequency data to show the trend, given that April and May should be the trough of the lockdown and also the mobile device shipment, and whether there is any improvement in June and July. And the second question is regarding the licensing business for Kingsoft Office. During the second quarter, we still see some decline, and my question is whether for the full year it will be hard to see the positive growth. Thank you.
问得很好。其实我们自己内部就这个问题也研讨过。从目前看，就是我们自己对下半年的判断，就是因为上半年的手机和PC的这种出货的下降。我觉得我们认为到下半年已经有所回升，但是还是受整体这个大环境影响，怎么说呢，应该说这个还需要一个更长一点的时间，才可能会到一个比较理想的状态。 第二个问题，我觉得今年大概率这个不会有太多的好转，就整个信创，因为大家知道，这个疫情消耗了很多政府的资源。
我觉得我自己的判断就是，今年在二十大，而且紧接着后面又要开两会，这个政府的工作重心呢，我觉得主要是在这两个块吧，一个是疫情，一个是换届嘛。所以呢，我自己的判断就是，在信创这块不太可能有个大的变化。但是明年呢，我们总体来说都还应该是会是一个不错的，等明年两会开完了，这个新的一届的政府领导上台之后，我们相信还是会有一些这个实质性的措施吧，来推动这项工作，好吧。
好的，谢谢邹总。
OK, I'll translate for Mr. Zou. For the first half of this year, the number of mobile device sales actually declined, which negatively affected our MAU numbers. For the second half of this year, we think that there may be a slight rebound in terms of the situation, but we think that this may still require a longer period, a longer time to recover to the normal rate. The second question is on Localization project. My personal thought on this is the pandemic situation and also the upcoming 20th government conference are still using up the government resources in terms of the investment in the Localization project.
We think that next year will be more optimistic with this situation. Thank you. Operator. We're ready for the next question.
Thank you. We'll now take the next question. Please stand by. It's from the line of Linlin Yang from GF Securities. Please go ahead.
周总、李总好。我有两个问题想请教一下，一个是关于我们游戏这一块，因为剑网1：归来也上线了，而且也经历了暑期的推广，所以就想请教一下剑网1：归来目前的表现情况，然后大概这个包括对于下半年的收入贡献的预期情况。然后第二个问题是关于我们WPS这边的To B订阅业务这个季度大概的增长情况，以及它的主要的增长驱动。那我简单翻译一下。Uh, I have two questions.
The first one is about JX3. Could you give us some more details about the game's performance and the revenue contribution this in the second half year? The second question is about the subscription business growth this quarter and its growth driver. Thank you.
我先讲第一个，原企的这个情况，这个问题问得特别好。其实我们最后七月份并没有真正去大的推广它，这个是跟我们之前的一个计划的调整。然后核心原因呢，其实我在上个Q也大大的提过，其实就是说我们最早这款游戏呢，是一个点阅卡加上这个外销的这种模式，就是像剑网三，是由这个开始的。然后原企呢，当然那是零九年，我们上线的时候就采用的一种收费模式吧。原企呢，我们其实这次从收费模式上做了一些改变，它不再，它不是，其实本质上是一个免费游戏了，它不收点阅卡。所以呢，我们在做这个过程当中呢，应该说这个我们的这个设计吧，我们自身设计的，还是设计了一些收费的这个手段吧。但实际上呢，我们自己从这个原企的真实的用户、用户的组成结构，包括实际销售的情况来看呢，其实跟我们设想的还是偏差蛮大的。这里头我就举个例子，就是具体说明一下，因为剑网三这个重置版的，或者是老剑网三吧，其实它的女性比例占比非常高，或者说男女比例吧，是一个非常符合这种社交型这个特点，就甚至某种程度女性比例是一度超过60%。所以呢，那种展现自我社交的需求、展现自我的那种需求比较旺盛，所以这也是一直驱动我们过去这么多年，外销一直非常不错的，除了点阅卡，甚至说占了80%~90%的收入吧。但我们后来发现这个原企这个版本呢，这个男女比例说实话有点失调，甚至说基本上都是以男性玩家为主。所以男性玩家玩游戏的一个特点，他本身呢，其实说实话不会太在意这种外观，而会更在意本身实际上的能力，或者这种操作，或者说这种玩法上。所以这个是跟我们之前预料的不太一样。所以呢，我们也根据这种用户构成的，就原企的用户构成的特点吧，我们也在做一些这个产品上的调整。所以我从那个实际数据上看到，从六月、七月、八月，从实际收入上看呢，我觉得这种调整还是有效果的，有效果的。但是呢，跟我们之前的预期呢，还是有一定差距。所以呢，我想我们可能还要花一段时间去打磨吧，因为毕竟这个剑网三这个项目组的过去，其实已经习惯了过去那种营收的方式吧，盈利的方式，所以真正转到这种纯免费游戏上来呢，对他们来讲也是一个适应的过程。这大体情况就是这样，这也是为什么原计划七月份大推后来没推的原因，就是说我们是觉得还是要给团队一些时间吧，去让他们适应，从这种收费游戏向免费游戏转，在产品收入设计上的一些结构上，结构性的调整，还要给他们一点时间，好吧。但是从过去几个月的数据来看呢，还在稳步往上走，稳步往上走。这是那个原企的情况，我觉得我讲得已经很清楚了哈。 第二个呢，办公的To B订阅。大家也看到，就是我们整个的上半年的那个受信创的影响吧，所以办公的增长主要上是To C，两个订阅吧，一个To C，一个是To B的。然后To B订阅呢，总体来讲呢，增速还算还好吧，但其实比我们自己预期的还是差了些。这个确实是基本上就是由于疫情，这个导致它也不能出，有很多事情做不了。所以进展，当然也增长得不错，但比我们年初的预算还是慢了点。我觉得主要还是受疫情的影响。第二个就你问到这个驱动的这个底层原因，这个其实今天我们在办公的董事会上呢，雷总也重点提了这条吧。其实说实话，就是说包括政府本身在14th Five-Year Plan里都写得非常清楚，这个整个的这个政企的，应该说IT升级吧，叫数字化转型，这是一个大势所趋，也包括企业吧。所以我觉得总体来讲就是说，中国到了一个整体到了一个就是无论是政府还是企业，到了一个整个信息化升级的这么一个大趋势的浪潮里头来。所以我们大概率认为就金山办公未来也会加大，就是你像我们现在To B跟To C差不多，五五开的，所以我们未来认为就是我们一定会继续加大对这种企业级服务的这个研发力度。我们是认为这块未来会是，会逐渐是一个爆发式增长。因为随着人员成本的越来越高嘛，所以呢，这个企业人员成本越来越高，所以我们认为它越来越会对效率、对效能的关注度越来越重，所以我觉得这才是这个最根本的原因吧。就无论是从政府侧还是从企业侧，都有非常强烈的意愿，就提升本身自己的这个信息化系统。
在邹总的基础上再补充一些关于订阅方面的一些财务数据，然后从办公他们披露的上半年的情况来看的话，收入增长是14%左右。但是我们可以看到双订阅方面的话，个人订阅它的同比增长上半年是有40%，而机构订阅的话是达到51%。还可以分享一下，就是他们上半年的话，这个数字办公平台从产品力来讲的话，就是这些客户的话，新增的话大概是一千八百多家。所以它自己本身的话，数字办公平台的同比增长也达到1%。就是在邹总基础上补充一些关于产品力，就关于它自己本身营收他们的需求，带动订阅模式转型的一个提速，对。
Okay, I'll try say for Mr. Zou and Ms. Li. For the first game on JX3 Origin performance. We didn't officially promote the game in July. This is mainly because we are still optimizing the billing features for the JX3 Origin. The original JX3 PC game is a time billing plus virtual item billing game. JX3 Origin is a free game, it's not time billing. We have adjusted the billing model for this game. There's still some major differences between these games. For example, the JX3 PC game, the female user percentage is quite large. At one point the female user percentage was greater than 60%. The social demand for this game is quite strong. The virtual item billing is very popular. It contribute over 70%-80% of the total revenue. The JX3 Origin is quite different. It's mainly male gamers.
These male gamers are not too much interested in the virtual items or the appearances accessories for the characters in the game. We have adjusted the billing model. Based on the data from June, July and August, the adjustment was quite effective. We still need more time to optimize the billing model for this game. This is the main reason why we delayed the originally planned July promotion for the game. The operating data for this game have been improving in the past. The second question is on the Kingsoft Office to B subscription business. Maybe because it was affected by the Localization project due to the pandemic situation.
The first half of this year, the growth was mainly contributed by the subscription business from both to B and the to C businesses. From the to B subscription business, the growth was quite strong, but it's still slightly weaker than our original expectation from early this year. This is new, mainly due to the pandemic situation. We had a board meeting with the KSO business. We all agreed that the IT upgrade and also the digital transformation is a long-term trend. We think that in the future, we are going to increase our investment in R&D for the IT upgrade and digital transformation for our enterprises and also for the government users. This will further drive the growth of our to B subscription business in the long term in the future. Ms. Li added some financial and operating data for the to B subscription businesses.
The overall growth for the KSO business was 14% the first half of this year, but the to C subscription, the growth was 40%, and the to B subscription business was 51%. Also the digital office platform, there are over 1,800 customers on our using our platform. That shows a strong growth demand in the cloud office business for KSO. Thank you. Now we're ready for the next question, operator.
Thank you. No other questions at the moment, but as a reminder, if you do have a question, please press star one one on your keypad. We have another question coming through. This is from the line of Linlin Yang from GF Securities. Please go ahead.
Okay. I have more question. It's about game guidance and if there any change about the game guidance. Game, 20% year-on-year growth. Another question is about the guidance of WPS. Thank you.
Okay. I'll translate for Ms. Li. The overall game growth for this year is around 20%, because now it's almost September. We are still applying for new licenses for other games, but it's unlikely that we are going to get a new license for the rest of the year. Our overall game revenue growth is around 20%. For the KSO business, like we said before, we're not going to disclose outside of their disclosure. So far they haven't given out any financial guidance yet. Thank you. Operator, we're ready for the next question.
Thank you. We'll now take our next question. Please stand by. This is from the line of Ken Kao Lee from Citics. Please go ahead.
Can you hear me?
可以。
好的，感谢。
可以听到。
我是中信的李刚乔。有一个问题，其实关于咱们这个在财务上的。因为我们看到其实在游戏业务，今年上半年实现了一个比较超预期的表现。在办公业务呢，在疫情的压力之下呢，也实现了一个很明显的增长。那么我看到二季度咱们联营公司分占的这个亏损呢，它是有所扩大的，能否详细介绍一下原因？另外一个呢，就是关于整体公司的全年的这个营业利润率应该怎么预期。两个小问题，谢谢。
In the second quarter, the share of losses of the associates expanded. Can you explain the reasons in detail? And what is the expected Operating Profit Margin for the full year? Thank you.
关于联营公司，我们的两个主要大的联营公司就是西山云和猎豹。由于这两家的话，他们还没有单独公布自己的财务状况，所以我们就不单独披了。就是来自这两家的亏损的话，合计起来的话是比上季度有所增长的。然后另外您提的一下对利润率的一个guidance，分开来看的话，因为游戏的话我们就相当于说收入增长的话有20%，所以游戏的利润率本身的话，我们经营利润率是有所提升的。办公这块的话，还是跟收入一样，我们就暂时还是不会给出guidance来。
Okay. I'll translate for Ms. Li Yi.
好的，谢谢。
Okay, I'll translate for Ms. Li. So there are two major associates in our loss of associate items. That's from the Kingsoft Cloud and also from Cheetah Mobile. Because both of these associates have not disclosed their earnings for this quarter yet. So we can disclose more data at this point. But the losses from these two associates in the second quarter are larger than what we had in the first quarter. For the operating profit guidance, because of revenue growth for the game business, around 20%, there's also an increase in the operating profit level for the game business. For the KSO business, like we said, for the revenue, we can't disclose any financial guidance yet at this point. Thank you.
Operator, we're ready for the last question. Thank you.
Thank you. We'll now take the last question. This is from the line of Joel Ying from Nomura. Please go ahead.
For the GP margin trend, we see there the year-on-year decline for first quarter, same quarter GP margin for the group. Is that impact from licensing business from KSO rather than the gaming business? Thank you.
Okay, I'll translate for Ms. Li. Regarding the question on gross profit margin, for the KSO business, because the revenue from to C subscription business is greater than the revenue from the licensing business, so there is a change in the revenue structure that will affect the gross profit margin. For the game business, because we also have some licensed games, so there's some restructure in the internal game revenue structure that will affect the gross profit margin as well. Thank you. Operator, this will conclude our presentation for today. Thank you.
Thank you. This does conclude the conference for today. Thank you for your participation, and you may now disconnect.