en.Wedoany.com Reported - On June 8, Xiaomi Group (01810.HK) increased its stake in Kingsoft (03888.HK) through open market purchases, raising its shareholding from 4.96% to 5.39%. Xu Jieyun, Special Assistant to the Chairman and General Manager of the Public Relations Department at Xiaomi Group, responded that this was an open market increase in Kingsoft shares by Xiaomi, accompanied by compliance disclosures. The increase in Lei Jun's shareholding was due to Xiaomi's purchase, not personal buying. Xiaomi is firmly optimistic about Kingsoft's long-term development and the strategic synergy prospects between the two parties.
According to data from the Hong Kong Stock Exchange's Disclosure of Interests system, Lei Jun purchased 6 million shares of Kingsoft on the same day, with an average transaction price of HKD 22.0587 per share, involving approximately HKD 132 million. After the purchase, Lei Jun holds a total of approximately 339 million shares. A reporter from the Times Weekly learned that one of the key purposes of Xiaomi Group's stake increase is to strengthen strategic synergy in technology and business operations.
Kingsoft is currently in a state of sluggish revenue growth and reliance on non-operating income for profits. Founded in 1988, the company's business scope covers Kingsoft Office, Seasun Games, Kingsoft Games, and Kingsoft Cloud. In 2025, Kingsoft's revenue was RMB 9.683 billion, down 6% year-on-year; net profit attributable to the parent company was RMB 2.004 billion, up 29% year-on-year. In the first quarter of 2026, Kingsoft's revenue was RMB 2.417 billion, a slight increase of 3% year-on-year; net profit attributable to the parent company was RMB 1.091 billion, up 284% year-on-year. The Times Weekly reporter noted that the significant increase in net profit attributable to the parent company in the first quarter was mainly due to substantial investment income generated by some external investment fund projects of its subsidiary Kingsoft Office (688111.SH). In the first quarter of 2026, Kingsoft Office's net profit attributable to the parent company was RMB 2.195 billion, up 444.97% year-on-year, with investment income from associates and joint ventures reaching RMB 1.862 billion, compared to a loss of RMB 37 million in the same period last year.
Kingsoft holds approximately 51.47% of Kingsoft Office through its subsidiary Kingsoft WPS Corporation Limited, which contributes over 60% of Kingsoft's revenue, making it the largest business segment. In the first quarter of 2026, the office software business grew steadily, with Kingsoft Office achieving operating revenue of RMB 1.613 billion, up 23.95% year-on-year. All three core businesses—WPS Personal, WPS 365, and WPS Software—saw full-line growth. However, the gaming business continued to weaken, with revenue from online games and other businesses reaching RMB 804 million, down 22% year-on-year, primarily due to declining revenue from several existing games. Kingsoft CEO Zou Tao stated during the earnings call that the year-on-year decline in gaming revenue in the first quarter is expected to continue for the next one to two quarters. Additionally, on May 22, Kingsoft was removed from the Hang Seng Tech Index constituents, with the adjustment taking effect on June 8.
Despite short-term performance and market pressures, Kingsoft's core asset value and industry barriers remain intact. Against the backdrop of continued policy promotion for domestic IT infrastructure replacement, WPS, as a leading domestic office software, is a key target for government and enterprise IT replacement. In the first quarter of 2026, WPS Office's global monthly active devices reached 672 million, up 3.97% year-on-year; among them, PC monthly active devices were 328 million, up 9.08% year-on-year. CICC released a research report maintaining an outperform rating for Kingsoft, lowering the target price by 12.5% to HKD 28. In the office business segment, personal business is driven by continuous AI capability improvements, with WPS AI's monthly active users and paid conversion rates rising. The WPS 365 business continues to penetrate private enterprises and local state-owned enterprise clients, while WPS software business growth is supported by domestic IT replacement demand. Office business revenue is expected to maintain steady double-digit growth, while short-term pressure on the gaming business may persist.
The greater significance of this stake increase by the Xiaomi group lies in strategic synergy effects. Even before the increase, the two parties had extensive business and strategic linkages covering three major segments: Seasun Games, Kingsoft Office, and Kingsoft Cloud. On the product traffic side, WPS is fully pre-installed on all Xiaomi terminal devices. On the cloud computing services side, Kingsoft Cloud provides underlying computing power support for Xiaomi's AI large models and autonomous driving R&D, while Xiaomi provides stable commercial orders for Kingsoft Cloud. On the technology side, AI technologies and office tools are mutually interoperable between the two parties. On December 30, 2025, Kingsoft and Xiaomi Group reached a new framework cooperation agreement, extending the existing cooperation period to December 31, 2028. Sources say that Kingsoft has established an AI product center internally, aimed at promoting the synergistic empowerment of AI technology with business lines such as Seasun Games, Kingsoft Office, and Kingsoft Cloud. As of the close on June 9, Kingsoft's stock price was HKD 24.30 per share, up 9.56%.
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