Good day, thank you for standing by. Welcome to the Q4 2021 Kingsoft Corporation 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 one on your telephone. Please be advised that today's conference is being recorded, Wednesday, the 23rd of March 2022 . If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Francie Lu. Please go ahead.
Thank you. Ladies and gentlemen, good evening and good morning. I would like to welcome everyone to our 2021 first quarter and annual 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 joined us today. Mr. Zou Tao, our Executive Director and CEO, and Mr. Francis Ng, our Executive Director and CFO. Now I'm turning the call to Mr. Zou.
Okay.
I will translate for Mr. Zou. In 2021, we are poised to achieve a steady growth in our core businesses, leveraging our continuous investment in technological innovation. Kingsoft Office suite focuses on user needs and has further enhanced its products and services. It has also continued to pursue the ecosystem strategy of multi-screen, cloud, content, AI, and collaboration and achieve an excellent operational performance. Meanwhile, our online game business has launched several new mobile games during the year, while continuing to focus on the development of premium games, long-term operation, and enrichment of core game IPs. The group's business continued to achieve a steady growth in 2021, with revenue reaching RMB 6,371 million, increasing by 14% year-over-year. Our office software and services business maintained a solid growth momentum and its revenue increased 45% year-over-year.
Now I'm turning the call to our CFO, Mr. Francis Ng. Francis.
Hi, Francie. Thank you, Francie. Ladies and gentlemen, good evening. In 2021, Kingsoft Office Group continued to enhance its product and services for cloud and collaboration office scenarios. With the increasing user activeness and the user stickiness in individual and enterprise user, cloud migration of both individual and institutional subscription has accelerated. With the stable growth in the number of monthly active device of its key product, Kingsoft Office Group has continued to optimize its user experience and product function, promote cloud migration, increase usage of its value-added function, and further drove the growth in its number of paying users. In addition, the significant increase in the number of uploaded cloud document and an increase in the proportion of long-term paying user has also laid a solid foundation for the continuous growth of the individual subscription business in the future.
Regarding the government and enterprise market, Kingsoft Office Group took the advantage of the industrial trend on demand of government and enterprise users for data asset management, and also office efficiency improvement, and has actively improved product system, enhanced user experience, and expanded ecosystem to promote the cloud office migration of government and enterprise users. This has also set a solid foundation for a subsequent promotion of digital office platform solution. As the cloud migration of government and enterprise users continues, Kingsoft Office Group is expected to increase its presence in the government and enterprise market. In addition, Kingsoft Office Group has witnessed a strong demand growth from the government and enterprise users.
As localization projects enter a booming stage with a fast-growing market leveraging the favorable policies. Moreover, Kingsoft Office Group also received substantial orders for its deployable and fixed layout document format products, which led to a robust growth of its domestic institutional licensing business. In the fourth quarter, revenue from the flagship JX Online III PC game and a classic JX II PC game grew steadily quarter-over-quarter. Moreover, we have also achieved breakthroughs on product development, demonstrating the vitality of the core IP and our strong R&D and operational capabilities. Following the successful release of the JX I Pocket mobile game in Vietnam in April 2021, JX I: Gui Lai, the domestic version of JX I Pocket mobile game, was released in October.
Upon its debut, the JX I: Gui Lai was ranked third in the top free chart and first in the top-grossing worldwide paid games chart for iOS. In November, Wu Lin Xian Xia, our self-developed mobile game, was released in China with highest ranking sixth in the top grossing chart for iOS, demonstrating our successful strategy cooperation with New World. In December, JX World III, the third generation of JX World series mobile games, was launched. Upon its launch, JX World III ranked first in the top free chart and ninth in the top grossing chart for iOS. In addition, the mobile game was also recommended on the front page of Apple Today and was recognized as a superstar product by the Mobile Hardcore Alliance. With financial results, as usual, starting with the Q4, using RMB as a currency.
Revenue increased 13% year-over-year and 21% quarter-over-quarter to RMB 1,822 million. The revenue split was 50/50% for office software, services, and 50% for online games and others. Revenue from office software and services increased 19% year-over-year and 12% quarter-over-quarter to RMB 904 million. The year-over-year increase was mainly due to a continued growth of individual and institutional subscription business of Kingsoft Office Group. The fast growth of individual subscription business was mainly driven by continued expansion of paying users. The sustainable growth of institutional subscription business was largely driven by emerging demand for data management of enterprise-level user and the digitalization of industries.
The quarter-over-quarter increase was mainly due to the sustainable growth of individual subscription business, as well as institutional licensing business. Revenue from the online games and other business increased 8% year-over-year and 30% quarter-over-quarter to CNY 918 million. The year-over-year increase was mainly due to the successful launch of several mobile games, which broadened our game portfolio, partially offset by the decreased revenue from the existing game. The quarter-over-quarter increase was mainly due to the revenue contribution from newly launched mobile games and a revenue growth from JX Online III. Cost of revenue increased 14.4% year-over-year and 38% quarter-over-quarter to CNY 373 million.
The increases were mainly due to an increase in the purchasing cost of services and products, the greater channel cost, along with the business growth of Kingsoft Office Group. Gross profit increased 8% and 17% quarter-over-quarter to RMB 1,450 million. GP margin decreased by four percentage point year-over-year and two percentage point quarter-over-quarter to 80%. Our R&D costs increased 60% year-over-year and 10% quarter-over-quarter to RMB 684 million. The increases were mainly attributable to increased headcount as well as personnel-related expenses as a result of the continuously increased investment in products and services R&D. Selling and distribution expense increased 11% year-over-year and 27% quarter-over-quarter to RMB 308 million.
The increases were primarily due to an increase in marketing and promotional spending of online games business. Administrative expenses increased 10% year-over-year and 16% quarter-over-quarter to CNY 155 million. The increases were largely due to the increased personnel-related expenses. Share-based compensation costs decreased 9% year-over-year and 1% quarter-over-quarter to CNY 73 million. Operating profit before share-based compensation costs decreased 37% year-over-year and increased 12% quarter-over-quarter to CNY 404 million. Net other gains were CNY 28 million compared to net other losses for the fourth quarter of 2020 of CNY 111 million. The net other gain of CNY 734 million in the third quarter of 2021.
The losses in the fourth quarter of 2020 were mainly due to the recognition of a loss deemed disposal of Kingsoft Cloud as a result of the dilution impact of exercising of its employee option. The gain in the third quarter 2021 were mainly due to that we recognized a gain on deemed disposal of Kingsoft Cloud as a result of the dilution impact of issuance of new share. We recorded share of losses of associate of CNY 518 million for the fourth quarter of 2021, compared with a share of losses of CNY 21 million and CNY 286 million for the fourth quarter 2020 and the third quarter of 2021.
The losses in the fourth and third quarter of 2021 were mainly due to the losses recognized in Kingsoft Cloud and Cheetah Mobile. The losses in the fourth quarter of 2020 were mainly due to the losses recognized in the Kingsoft Cloud, which was partially offset by the profit recognized in the Cheetah Mobile. Income tax expenses decreased 54% year-over-year and 46% quarter-over-quarter to CNY 53 million. The year-over-year decrease was mainly due to lower taxable profit, and the quarter-over-quarter decrease was primarily due to the decrease of deferred tax expenses.
As a result of the reason discussed above, the loss attributable to the owners of the parent was CNY 335 million for the fourth quarter of 2021, compared with profit of CNY 221 million and CNY 565 million for the fourth quarter of 2020 and third quarter of 2021, respectively. Loss attributable to the owners of the parent, excluding eShop, was CNY 292 million, compared with the profit of CNY 266 million in the corresponding period last year, and a profit of CNY 611 million in the third quarter of 2021.
The net profit loss margin excluding the effect of share-based compensation costs was -16%, 70%, and 40% for the three months ended December 31st, 2020, and September 30th, 2021, respectively. Revenue increased 14% year-over-year to CNY 6,377 million. Office Software and Services make up 51%, increased 45% year-over-year to CNY 3,265 million. Online Game and Other make up the remaining 49% and decreased 7% year-over-year to CNY 3,107 million. Gross profit margin decreased 2 percentage point year-over-year to 82%. Profit to owner of parent, including debt from a continuing operation and a discontinued operation was CNY 395 million, compared with profit of CNY 10,045 million for last year.
As for the balance sheet, we have adequate cash reserve of CNY 19.1 billion at year-end 2021. Net cash generated from operating activities, including those from discontinued operations, was CNY 2,220 million and CNY 2,991 million for the year ended December 31, 2021 and December 31st, 2020, respectively. Capital expenditures was CNY 364 million and CNY 684 million for the year ended December 31st, 2021, and December 31st, 2020, respectively. Looking forward, Kingsoft Group will ride on the trend of cloud and collaboration office and continue to invest in product R&D. It will also further explore the opportunity in the enterprise market and strive to empower the digital transformation of large scale organization.
Regarding our online game business, we will continue to maintain the development of a core IP while focusing on bridging the new game genre and the new IPs. Looking ahead, we will continue to promote technological innovation and upgrades, pursue social responsibility to ensure long-term sustainable growth of our business. This concludes our prepared remarks. I now hand over the mic to the floor for questions and answers. Thank you.
Hi, operator. We're ready for the QA session.
Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, please press the hash key.
When asking the question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. Please stand by while we compile the Q&A roster. Your first question comes from the line of Thomas Chong from Jefferies. Please ask your question.
晚上好，谢谢管理层接受我的提问。我的问题主要是关于2022年全年的一个展望的。管理层可以分享一下，就是我们不同的板块，近一年在增长的速度，还有就是整个集团的margin的情况，可以跟大家分享一下吗？然后再多问一下呢，就是因为现在的经济环境有一些不确定，也想问一下，就是上半年跟下半年会不会有一些方向性的一个指引。Thanks management for taking my questions.
I have a question regarding the 2022 outlook. Can management talks about how we should think about the growth momentum for different segments in the gaming and WPS, as well as the overall margin outlook for this year? Given the dynamic industry environment and the macro uncertainties, how should we think about the first half and the second half of business trend? Thank you.
谢谢你，Thomas。我先回来回答这个问题吧，然后看看周总再补充。首先谢谢你这个问题，这个问题也是每次 earning call 大家比较关注的，一个就是在2022年我们几个主要板块收入的趋势，跟我们利润的状况。首先在这里，就是说我把这个事情分两个部分来讲，你有讲到，就是说整个上半年跟下半年的环境变化。首先第一个，我先讲讲游戏方面的。首先大家看到，游戏方面，在讲2022年的话，2021年大家可以看到，就是说我们其实是如的一个负7%的收入，然后我们这个利润率也是相对前年有一个降幅。这个原因先不展开讲了，大家都非常清楚，因为就是每个季度都有跟进金山的话，知道就是说这个游戏在2021年，也不是单独影响了金山，是整个行业你们都受到了一个监管的影响，所以导致到就是说我们有几个新的游戏，并没能于我们原先的那个上线。但是展望到2022年，我觉得就是说有两个方向吧。一个就是说，我觉得我们的那一个，应该是很大几率，会扭转了我们在2021年的那一个跌的趋势。为什么这样讲呢？大家要是要留意到我们那个Q4，我们其实在Q4的时候也有三款游戏的上线，而且三款游戏的表现都是相当不错的，包括就是说刚才我们提到的，就是在越南上线的一个游戏，得到非常大的成功。也因为这个原因，另外一个方面，我们看到我们的一些传统旗舰的游戏，尽管到就是说，比方说我们怀旧版是没有如期因为版号的问题，去进行就是说推广。但是我们的那一个就是经典 IP 的活跃用户在金山里面还是稳定的。当然就是说在2021年，就是说大家可以看到，就是说它其实因为我们的精力被牵扯到怀旧版，所以就是说它是有一定的下降，但是我们基于就是说最近的数据，我们是有信心，这个金山的那个能够稳定。所以有新的游戏加进来，它贡献就是一整年，包括就是说一个稳定的主打的游戏，我们就是保守估计，我们也有一个就是20%以上的 top line 的增长。这样子的话，就是说大家知道对我们的利润的增长，也是非常明显的。因为游戏的话，新游戏没上线的话，那么就是说费用会资本化，所以等到有游戏上来的话，那么就是说我们那个利润会有一个比较好的表现。这个是我们最保守估计的，就是20%多。另外一个，就是说我们其实也可能跟 Thomas 问到那个问题，就是说我们上半年跟下半年对于市场上面的变化，大家可能在座的都非常关心到底游戏的监管，就是保护青少年人，以及到就是说我们从去年中到现在为止都停止发放了版号。这个情况是怎么样？这个其实大家可能在座的，就是说从各方面接收的信息有不同的判断，但是我们其实是有几款游戏，已经是准备好，可以说是万事俱备。所以就是，要是我们过了两会，在下半年，这个是重新有版号发的话，那么我们这个收入以及利润将会进一步提高。要是有版号的话，那我们有三款，已经是预计会在2022年上线的话，会进一步把我们的收入推高10个百分点以上，那么我们预期可能会有一个30%到40%的增幅。但当然就是说要是版号不出来，这个也是我们所有人的控制范围以外的话，那这个就是可能就跌回去，我刚才所讲的，不会像2021年这样是一个负的增长，但是它可能是一个大概是20%上下或者20%以上的增长。所以这个是我对于游戏板块，给到 Thomas 以及大家的介绍。另外一个的话，就是说按照我们过往，我们会讲到，就是说另外一个主要的板块，因为其实在我们的3888这个收入利润里面，我们主要是包括了，就是说游戏，以及我们的办公软件跟服务。两者之间，我们其实也看到，就是随着办公的日渐壮大，其实从去年的第四季都已经看到，两者之间的占比，我们其实就是说大概是五五开了已经是。我刚才就是概括了，就是说游戏部分那个板块，但是在办公方面，这个我们其实内部也是反复去研究，就是说到底对于这一方面，我们的口径应该是怎么样，因为就是说办公是一个单独的在 A 股上市的板块，因为就是说办公自身的考量，跟他们就是说披露的口径，目前他们还是趋于一个比较窄的披露范围。对于指引方面，他们官方就是说并不对于未来的收入或者利润做一个指引的。在这个方面，我们这个公司内部反复研究，我们认为就是说我们不应该超越了另外一个独立子公司披露这个范围。所以在办公方面，我们就不再超越他们，就是说与他们的口径一致，那我们将不会给予大家一个，就是说在2022年的收入跟利润的指引。但是，从大概的方向里面来讲，我觉得就是说有这几块。一个，就是说我觉得在我们董事会反复讨论，其实他们现在就是大概把办公的业务分开四个部分，一个就是说当然我们传统的个人订阅的 To C 的部分，然后我们在企业端，我们其实是分开，把它从去年的内部再进一步划分，把它变成，就是说我们也是订阅部分，以及就是说我们企业的，就是卖 license 那个就是最传统的方面。然后第四个部分，就是说我们的一个广告的业务。这四块，就是说大概的方向，我可以跟大家分享的。一个，从最后一个就是广告方面，大家可以看到，就是说我们其实从几年前开始对我们办公的变现，我们其实最先的时候就是用了一个最直接，或者是你现在可以看到的是直接粗暴的方法，就是通过卖广告，引流量，卖广告。但是这个，其实在多方我们跟大家也介绍，这个并不是我们认为办公里面就是一个最合适的变现的方法，因为这个终会影响到就是办公人群的对这个干扰的影响。所以这个部分，其实你看到我们每年都在下降，而且这个趋势也会保留。所以你会看到在2022年以及以后，它会进一步下降，而它的收入，我们只会以另外就是说的一个更合适的方法去实现。倒过来的话，就是说我们讲就是说 To C 的业务，大家可以看到，就是说其实我们增长的都是非常非常好，因为就是说本身我们的功能上面的突破，以及就是说现在经过这个拥抱的，就是说云端多屏工作上面的协同办公的需求，其实就是说我们在 To C 端的，就是说可以说是在中国是遥遥领先，然后增长，就是说也是高速的增长。当然这一个，就是说随着我们基数越来越大，就是说这个后面，就是说会逐渐会有一些变化，但是目前我们所看到的，它还依然是处于一个高速增长的部分。另外一个就是企业端的分开，我们的一个就是订阅，跟那一个软件销售的部分，其实这个第一个部分就是说订阅部分，这个趋势，也跟我们 To C 的那一个相近，也是随着我们产品更好用，大家对工作就是说这个办公上面的协同，一些新的需求，其实这个也是增长的非常好。但是另外一块，就是说我们所谓的企业的 licensing sales 就是企业的销售，这一块我要是换一个名字，大家可能会更亲切，就是说我们之前所讲的就是信创的部分，因为之前，大家就是说也讨论得比较多，就是说一个方面是我们的 To B、To C 的订阅部分，另外一个，就是说我们的软件销售就是卖给党政军，在中美关系比较紧张的情况底下，我们需要就是说自主可控的一个有信心的产品，那办公在这个方面是遥遥领先的，在这一块，其实在前几个 quarter，我们大概都要跟大家介绍，就是它其实是我们掌控之外，但是大的环境我就不多讲了，其实讲了很多，其实大家应该就是从其他的渠道，对我的讲法会更丰富，就是说我们还是认为，就是说它这个需求跟这个方向是不会走回头路。但是，我们也看到，就是说在2022年，可能在信创方面，它可能是一个三年的周期的第三年阶段。所以这个部分，可能大家可以跟办公去沟通，在这个部分22年，企业就是销售方面，相对来讲，我们认为就是说会比2021年会减慢，但是这个不影响我们对于就是说它未来的三五年以及十年这个大的趋势。因为党政军，我们也说过，就是说它光是这个部分还没扩展到中小型企业，也有，就是起码是有四五千万台的图算套数，而是需要就是通过这个信创的商务去推进的。我们现在可能实现的，可能就是一个很低的百分比，可能是20%都不到。所以这个部分还是非常大的潜力。好了，我可能就是展开得比较长一点，但是我想让大家清楚一下，就是说整个我们的目前的趋势，跟2022年的展望。好，Thomas，我讲得比较长一点，Francis 就是说麻烦你帮我翻译一下。
I'll translate for Francis. Regarding question for our full year revenue and profit guidance, I will discuss this in two parts. The first one is the game business. In 2021, our game revenue decreased 7% year-on-year for many reasons, mainly due to the government regulation challenge with the whole game market. A number of our games did not launch on time as we expected. In 2022, we are most likely to turn the situation around. In the fourth quarter of 2021, we already launched three new mobile games and they all performed quite well after launch and also including the one that we launched in Vietnam last year. It was also very successful.
Our classic JX IP games, even though the virtual version did not get licensed and launched on time, but the other classic JX IP games still performed steadily. JX Online III will also be steady in 2022. With the JX Online III and also the new games that we just launched, we believe that it's for 2022, the top line growth will be over 20%. Also, the operating profit will improve because the expenses are not capitalized until the new games are launched. We also have a few games in our pipeline that are ready in terms of development.
If the license release starts in the second half of this year, we will have three more new games to be launched. With these new games, our total revenue for the gaming business in 2022, the growth will be 30%-40%. If we couldn't get the license for these games this year, the whole year revenue growth for the game business will be over 20%. The second part is the KSO business, the Kingsoft Office business. Starting from the fourth quarter last year, the Kingsoft Office business already contributed 50% of our revenue. We have discussed many times internally about the disclosure guidance for the Kingsoft Office business.
Due to their own disclosure policy, so far they have not officially give out any revenue or profit disclosure guidance. As the parent company, we could not disclose more than what Kingsoft Office disclosed to the market. We could share more information in terms of its development direction, but for the financial numbers, we couldn't give out any financial guidance yet. We hope that they could share more information in the future. For the direction, in terms of the development, we divide the business in four segments. The first one is the consumer business, the subscription business. The second one is the to B subscription business. Third one is the to B licensing business.
Lastly, we have the advertising business. A few years ago, when we first started to monetize the business, we started with advertising. But we believe that this is not the most appropriate way of monetization, because it still affects the office user experience. The percentage of advertising revenue will continue to decrease, and the trend will continue in 2022. The consumer subscription business will continue to increase, due to our improvement in product functions and with the cloud multi-screen and collaboration demand from the users. We are already a clear leader in China. But with our user base keep growing, the percentage of growth may change in the future. But now, the business is growing at a high speed.
The to-B subscription business is the same thing with the to-C subscription business. With our improvement in products and functions and the user demand in office collaboration, this business is also growing quite fast. For the to-B licensing business, which is also the localization business, as the U.S.,-China tension continues, we think the localization trend will definitely continue in China, and KSO is already a clear leader in this market. The trend and the demand for localization are now going backwards. We think that for 2022, this year, it may be the last year of the first three-year cycle. In 2022, there may be a slower growth compared to 2021 in terms of the localization business.
You may discuss this more with the KSO business as well. This will not affect the long-term research development for the business. We still have 40-50 million small enterprise users, and so far we only capture roughly about 20% of the localization business. There's definitely much more potential to grow. Thank you. Operator, we're ready for the next question.
Thank you. Your next question comes from the line of Liping Zhao from CICC. Please ask your question.
Zou Tao, Francis, for taking my questions. I have three questions here. First, I want to know the gaming pipeline in 2022, and also the regulation updates. Second, whether the company has some strategy on more, I think, the synergy between our different segments. Certainly, if the company is considering any share buyback projects given the discount of the NAV. Thank you.
我先讲一讲游戏，游戏的一些情况，后面那个。其实刚才Francis也谈了，其实我们那个计划啊，其实如果能顺利拿到版号的话，我们今年会陆陆续续上三到四款新游戏吧。具体的时间呢，从目前的排的来看呢，基本上是，卧龙吟呢是应该是上半年就能上，这是腾讯那个运营的那个游戏，我们是联合开发的。然后剩下的几款呢，包括当然我们内部的代号啊，叫做T game，也包括阿比斯幻境以及魔域2，这些都会在下半年陆续上线。然后那个剑网3的那个怀旧版呢，其实它只是没有收费的，因为版号的原因没有收费，它一直是在这个上线运营当中，只要一有版号呢，我们就可以马上可以收费，好不好？这样的。要不先翻译这个。
好的。
先翻译这个。
I'll translate for Mr. Zou. Like Francis already discussed that we will have another three-four new mobile games to be launched if we could get the license successfully. Regarding the timeline, the game 卧龙吟, this one is operated by Tencent. We will be able to launch this one in the first half of the year. The other game including T game, 阿比斯幻境, and also 魔域2, and these games will be ready to launch in the second half of this year. The retro version of the JX Online III, this one is already under operation. We're just waiting for the license for the monetization. Thank you.
好几个。立平这个问题问得很好，这也是我们今年重点在推进的一件事情。我目前可能没有办法说得那么详细，在金山办公的业绩说明会上可能会去披露得更多一点吧。我可以跟大家简单介绍一下。我想想怎么从哪开始。就办公啊，接着Francis刚才回答那个指引的问题来展开来说吧。就是为什么我们现在很难给出一个很好的指引呢？主要是因为几块，我就办公在二十五号的业绩说明会呢，也会统一这个口径去说。就是哪几块啊？其实我再补充刚才Francis说的，就第一个叫个人订阅，第二个呢叫国内机构订阅。第三个呢，我们把它定义成国内机构授权。第四块呢就是广告及其他。然后这里头重点说明的其实就是那个叫做国内机构订阅，集国内机构订阅和国内机构授权。这两个什么意思啊？简单说呢，或者这么说吧，在个人订阅和国内机构订阅这两块呢，我们其实虽然不对外披露具体的数据啊，但是呢，我们是非常有信心，依然保持一个非常高的速度，高速增长，或者说不落于去二一年的那个同一增长吧。但是呢，在国内机构授权这块，其实Francis刚才也谈过啊，其实简单说就是大家熟悉的名字叫信创这块呢，我们确实没有办法去做出很好的预测，这个大家都能理解啊，这个东西受政策的影响，受整个大环境的影响就是比较大。说实话，我们内部现在掌握的信息呢，有说高有说低的，这个真的我们自己也拿捏不准。所以呢，这块就有点像我们游戏做预测，把它当做不太可预期的收入来看待了。所以呢，综合刚才个人订阅、国内机构订阅以及国内机构授权综合来讲呢，导致我们很难去给出一个比较好的精确的指引，就是因为这个原因。而且在机构国内机构授权自从信创开始之后呢，它的占比呢还不小。所以呢，由于这个的原因，对整个的这个业界的扰动性比较强。 这是我做一个补充啊，然后再来回答刚才立平的问题。其实我们金山办公未来几年的工作重点会是什么啊？我觉得第一个呢，肯定是未来如果信创还会有的呢，我们依然会保持我们那个过去的这种打法吧，就是这个只要有，只要发生，我们基本上市场占有率就90%、95%以上，这个我们是有信心的。但更大的重点是信创一期啊，我以前把它描述成1.0、2.0啊，就是说信创一期主要是就刚才讲的就是机构授权，或者说简单理解就是一单子买卖这种形式。这种呢其实是这个肯定不是我们这个理想的这个模型啊，或者说早期金山办公这边，其实那个在早期采购也是这种啊，就是一上来就先是这种copy的形式，我们国内呢，也逐渐逐渐的转成了这个机构订阅的形式。所以对于信创这部分已经发生的或未来还会发生的，从长远看，我们也要把它转化成这个机构订阅的这种模式，其实就变成这个SAAS服务的这种模式了。所以这一块呢，大家也知道啊，我们金山办公的客户呢，是很多家的啊，这个中大型企业基本都是我们客户。所以未来要完成机构授权向机构订阅这种模式的转化啊，这个我们过去一年多，其实也包括研发上加大的投入啊，很大比重都是在这个方向上。以前我没有说得这么透彻啊，其实今天我可以跟大家说得更透彻，其实就是怎么把以前的这个机构授权的这些客户逐渐转成这个机构订阅这种模式。所以这里头的区别就在于过去我们只是把一个软件copy给我们的客户，但是未来呢，我们要首先要完成云化，那这部分我说实话，我们六个就已经完成了。紧接着我们要把我们的产品链接到这个我们的客户的信息系统当中去，让我们的这个办公套件跟客户的这个信息化信息系统去融为一体，耦合在一起啊，这就是未来我们过去一年多开始，包括未来我们要重点去做的工作。这部分内容在办公的业绩说明会上也会去说，也会更详细地去说。所以呢，我们在过去一年多的实施过程当中，我们其实就发现，我们需要很强的、很大规模的这种实施团队吧。所以呢，大家也都知道啊，其实那个金山云这边，过去本身呢，关于云化这边就已经参与到了我们这个金山办公的这个转化过程当中来。金山云在过去呢，也完成了对柯莱特的这个收购。所以呢，未来金山办公会更加紧密地与金山云、与柯莱特这个协同吧，去完成它现有的海量客户、优质客户的从机构授权向机构订阅的这么一个转化的战略当中来，好不好？几家已经在一起做过几次比较深度的沟通了。当然这个，我相信可能在Q2开始吧，就会有些实质性的协同项目出现，好不好？当然那个具体的这种协同的效应或协同的规模会是什么样的，我自己以比较客观的认知来看，我觉得可能要先跑一年再说。这也是为什么这个今年反复权衡还是暂时没有给出的原因吧，其实就是这种比较大的这种协同合作的效率到底有多少，我们现在也是没有办法特别精准的。所以等跑一年之后呢，我想大概齐的我们就能够知道我们到底每年这个协同起来能够转换多少家，从那个这种机构授权转换成机构订阅，这样的话我们就跟市场再沟通的话呢，应该是有一个更好的依据吧。好不好？说的比较长。我觉得那个Nancy可以翻得相对简练一点啊。
I'll translate for Mr. Zou. I'll add something more to the disclosure guidance question regarding the KSO business and they will also discuss more in their own earnings call. It's quite difficult for us to give out a specific financial guidance.
This is because we split the business in four parts that include the consumer subscription, enterprise subscription, enterprise license and the advertising business. Even though we haven't give out any specific numbers for the financial guidance for the consumer subscription and enterprise subscription business, so I could say that these are two business, they will still maintain a high growth in 2022. That means that it's not going to be slower than the last year growth, which happened in 2021. For the enterprise licensing business, simply speaking, the localization business, we cannot make the predictions, because it's mostly driven by the government policy.
We cannot be sure about the exact amount of the localization business, so that's why we couldn't give out any specific guidance yet, because localization business is actually a large part of the enterprise licensing business. Regarding the question for the collaboration among our subsidiaries, we could state that firstly, as localization still exists, we will still maintain to achieve 90%-95% of market share in the localization business. The first stage of the localization business, which is the institutional licensing business, more like more likely just a one-time licensing business. Going forward in the long run, we would like to migrate the business into this subscription mode, which is a cloud SaaS mode. Our large scale users will complete the migration from the subscription business to the cloud business. In the past year, we have invested a lot of resources into this direction. We would like to migrate our users from licensing to cloud office, and then to integrate our services to our users to achieve a comprehensive office solution for our users. In the past year, we did a lot of work in this, including Kingsoft Cloud, which also joined us in this area. Kingsoft Cloud also acquired Camelot. Kingsoft Office and Kingsoft Cloud they will work together to achieve this migration. The collaboration work will start to take place in the second quarter of 2022. The actual impact will take more than one year to show. Later we will discuss more information in terms of the collaboration among Kingsoft Office and Kingsoft Cloud, a year later when we see more actual impact. Thank you.
谢谢Frances。我在这边回答一下丽萍的第三个问题，然后呢，我也跟大家当面汇报一下另外一个关于我自己的事情。一呢，就是说丽萍问到就是说回购，其实呢，这个从我们上一个Q的话，已经开始陆陆续续有这个回购的工作，那么当然就是说在今天打前的两个月的话呢，是我们的静默期。所以呢，回购的话呢，就是没有在前两个月去发生。那么在今天的一个业绩公告之后的话，一段时间公司也一如过往的话，按照我们之前跟大家介绍的，会看着就是市场的一个变化，最近市场比较波动，因为就是说整个的中介股，包括就是科技股的那个板块都异常波动。那么但是呢，我们会紧密地跟进这个事情，然后呢，我们之前的那一个就是说授予的那一个回购的那一个额度的话，还没用光，那么就是说我们继续是按照需要，就是在我们认为就是说合适的情况的话，继续会做这个回购。那么Frances也翻译一下，然后我就是再跟大家去介绍最后一个事情。
I'll translate for Francis . Regarding question for share buyback, we have already started our share buyback program in the last quarter of 2021. For the previous two months, because we were in the blackout period, we haven't done any share buyback. After today, the results announcement, we will continue to monitor the market performance closely, because recently there's a lot of turbulence in the stock market. We haven't used up the previous buyback budget yet, so we will continue with the previous share buyback strategy. Thank you.
谢谢李怡。大家，时间差不多了，在最后这个时候，我想跟大家来一个汇报。大家要是有留意到的话，刚刚公司的那个网站发了一个公告，关于我本人。其实，我在金山已经马上快十年了。因为自身的年纪跟健康的原因，我跟公司董事局反复商量，决定在七月份的时候会退任CFO的位置。我们公司内部也培育了很多对我们公司业务跟战略非常熟识的同事。我也想在这里介绍一下，我跟周总、李总也推荐我们公司的财务总监李怡，将会在我退任之后接替我的代理CFO的位置。我也希望大家给予李怡的支持，跟大家过往十年给予我的支持一样。我衷心感谢大家过往对金山、对我本人的支持，谢谢大家。Frances，你翻译一下。
I'll translate. I'll translate for Francis. Lastly, I would share something about my own personal announcement. I have worked in Kingsoft for almost 10 years. Due to my own age and health issues, I have decided to resign from the CFO position in the coming July. We have a solid team in Kingsoft. I would like to announce that Yi Li who is the current financial director to take over the CFO position after my resignation. I hope you to continue to support Yi Li like you supported me for the past 10 years. Thank you.
谢谢大家。好，谢谢大家。
Hi operator, this will conclude our presentation for today. Thank you all for joining us. Thank you.
Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.