Kingsoft : Announcement of Annual Results For the Year Ended 31 December 2021

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Kingsoft Corporation Limited

金 山 軟 件 有 限 公 司

(Continued into the Cayman Islands with limited liability)

(Stock Code: 03888)

(Convertible Bonds Code: 40210)

ANNOUNCEMENT OF THE RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2021

The board ("Board") of directors (the "Directors") of Kingsoft Corporation Limited (the "Company") hereby announces the audited results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2021. The results have been audited by Ernst & Young, the auditor of the Company in accordance with Hong Kong Standards on Auditing. In addition, the results have also been reviewed by the audit committee of the Company (the "Audit Committee").

FINANCIAL HIGHLIGHTS

	Year ended 31 December
	2021	2020	Year-on-year
	RMB'000	RMB'000	Change
			%
Revenue	6,371,406	5,594,243	14
Operating profit	1,360,583	1,855,134	(27)
Operating profit before share-based	1,579,734
compensation costs	2,034,506	(22)
Profit attributable to owners of the parent	395,332	10,045,043	(96)
	RMB	RMB
Basic earnings per share
- For profit for the year	0.29	7.35	(96)
- For profit from continuing operations	0.29	0.94	(69)
Diluted earnings per share
- For profit for the year	0.28	7.32	(96)
- For profit from continuing operations	0.28	0.92	(70)

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DIVIDEND

The Board has recommended the payment of a final dividend of HK$0.12 per share for the year ended 31 December 2021 (2020: HK$0.20 per share). The final dividend, subject to the approval of the shareholders at the forthcoming annual general meeting (the "AGM") of the Company, is expected to be paid on 21 June 2022.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021

		As at 31 December
		2021		2020
	Notes	RMB'000	RMB'000
NON-CURRENT ASSETS
Property, plant and equipment		1,258,503		1,184,902
Investment properties		157,111		64,003
Right-of-use assets		488,728		504,971
Goodwill		185,564		185,564
Other intangible assets		121,859		67,175
Investments in joint ventures		146,121		180,920
Investments in associates		12,130,558		12,752,057
Equity investments designated at fair value through
other comprehensive income		8,418		10,725
Financial assets at fair value through profit or loss		226,969		198,953
Deferred tax assets		124,674		116,981
Other non-current assets		35,098		46,301
Total non-current assets		14,883,603		15,312,552
CURRENT ASSETS
Inventories		18,577		19,085
Trade receivables	10	839,268	772,485
Prepayments, other receivables and other assets		1,691,939		967,372
Financial assets at fair value through profit or loss		2,902,205		3,910,553
Restricted cash		9,382		13,079
Cash and bank deposits		16,190,138		14,049,069
Total current assets		21,651,509		19,731,643

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2021

		As at 31 December
		2021		2020
	Notes	RMB'000	RMB'000
CURRENT LIABILITIES
Trade payables	11	423,400		290,855
Other payables and accruals		1,426,585		1,158,305
Lease liabilities		50,804		52,758
Contract liabilities		2,003,324		1,475,907
Income tax payable		192,071		265,823
Total current liabilities		4,096,184		3,243,648
NET CURRENT ASSETS		17,555,325		16,487,995
TOTAL ASSETS LESS CURRENT LIABILITIES		32,438,928		31,800,547
NON-CURRENT LIABILITIES
Contract liabilities		143,807		98,190
Deferred tax liabilities		1,029,633		1,059,090
Lease liabilities		154,455		169,759
Liability component of convertible bonds	12	2,248,587		2,196,595
Other non-current liabilities		63,830		49,003
Derivative financial instrument		6,426		-
Total non-current liabilities		3,646,738		3,572,637
NET ASSETS		28,792,190		28,227,910
EQUITY
Equity attributable to owners of the parent
Issued capital		5,308		5,316
Share premium account		2,490,650		2,762,242
Treasury shares		(15,259)	(11,181)
Equity component of convertible bonds	12	468,700		468,700
Other reserves		21,834,670		21,439,482
		24,784,069		24,664,559
Non-controlling interests		4,008,121		3,563,351
TOTAL EQUITY		28,792,190		28,227,910

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2021

				Year ended 31 December
			2021	2020
		Notes		RMB'000	RMB'000
CONTINUING OPERATIONS
Revenue		3,264,794
Office software and services			2,257,177
Online games and others		3,106,612		3,337,066
			6,371,406		5,594,243
Cost of revenue		(1,157,117)	(917,281)
Gross profit		5,214,289		4,676,962
Research and development costs		(2,328,009)	(1,656,067)
Selling and distribution expenses		(1,064,954)	(838,482)
Administrative expenses		(570,016)	(453,809)
Share-based compensation costs	6	(219,151)	(179,372)
Other income		391,203		310,789
Other expenses		(62,779)	(4,887)
Operating profit		1,360,583		1,855,134
Other gains, net	5	842,402		154,739
Finance income		416,250		437,997
Finance costs		(142,789)	(107,514)
Share of profits and losses of:		(31,673)
	Joint ventures		(25,929)
	Associates		(1,301,645)	(245,067)
Profit before tax from continuing operations	4	1,143,128		2,069,360
Income tax expense	7	(190,285)	(270,924)
Profit for the year from continuing operations		952,843		1,798,436
DISCONTINUED OPERATION
		-
Profit for the year from a discontinued operation			8,446,504
Profit for the year		952,843		10,244,940
Attributable to:
	395,332
Owners of the parent			10,045,043
	Non-controlling interests		557,511		199,897
			952,843		10,244,940

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Year ended 31 December

2021 2020

RMB RMB

Earnings per share attributable to

• ordinary equity holders of the parent
• Basic

	- For profit for the year	0.29	7.35
	- For profit from continuing operations	0.29	0.94
	Diluted
	- For profit for the year	0.28		7.32
	- For profit from continuing operations	0.28	0.92

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