Kingsoft reports 271m yuan annual loss, compared with profit of 369m yuan in 2015
Software maker, which also owns Cheetah Mobile, the apps developer, and office software WPS, is to focus now on AI and niche markets in cloud services
Kingsoft Corp, the Chinese software maker whose chairman is Xiaomi Corp’s co-founder Lei Jun, says it’s going to prioritise the development of AI (artificial intelligence) in its cloud service unit over the next two years, as well as other niche areas such as health care and gaming.
The Hong Kong-listed company, which also owns Cheetah Mobile, the apps developer, and office software WPS, one of Microsoft office’s strongest rivals, Kingsoft was reporting a loss of 271 million yuan (US$39.3 million) for the year ended December 31, 2016.
Cheetah has more than 600 million users worldwide, more than 75 per cent of which are overseas.
The results were mainly dragged down by impairment costs associated with internet companies Xunlei and 21 Vianet, in which it is a major investor, according to its filing with the Hong Kong stock exchange.
The loss compares to a profit of 369 million yuan in 2015. Revenue still grew 46 per cent to 8.3 billion yuan year over year.
AI is definitely going to be our focus in the cloud unit. We have started already and expanded fairly quick in the first quarter of this year
“AI is definitely going to be our focus in the cloud unit,” said Zou Tao, the newly appointed chief executive. “We have started already and expanded fairly quick in the first quarter of this year.”