Kingsoft Office (03888.HK): WPS Strength Masks Game Business Weakness Amid Stock Decline

Kingsoft Office (03888.HK) experienced a significant stock decline of over 10% following its Q3 2025 earnings report, driven by a sharp drop in game revenue even as its WPS Office business showed strong growth [1][3].

WPS Office’s global monthly active users (MAUs) reached a record 669 million, marking a 9% year-over-year increase [2]. The WPS segment saw robust enterprise growth, supported by AI integration and policy-driven demand (信创) [7].

The company’s game revenue plummeted by 47% year-over-year in Q3 2025, contributing to an overall 17% decline in total revenue [3]. This downturn reflected broader challenges in the Chinese game market and internal adjustments [7].

CICC lowered its target price for Kingsoft Office to HK$39 due to weaker-than-expected Q3 results [6], while Kaiyuan Securities maintained a positive outlook citing WPS’s growth drivers [7].

The stock fell over 10% post-earnings, reflecting investor concerns over the game business, though WPS’s strength provided partial support [1][3]