Wen | Cao Shuangtao
Edit | Yang Boyi
Title Chart | IC Photo
On January 4 this year, after the Jinshan Office disclosed the 2023 performance trailer, the stock price plummeted all the way within multiple trading days.On January 18th, the stock price in the Jinshan Office was as low as 233.11 yuan/share, a new low in one year.
Picture source: Jinshan Office official
With the recent disclosure of Jinshan Office, the annual performance report of 2023: Jinshan office revenue increased by 17%year -on -year to 4.556 billion yuan, and net profit attributable to mothers increased by 18%year -on -year to 1.318 billion yuan.1.262 billion yuan.
The remarkable revenue and profits have made the stock price of Jinshan ushered in a short period of time.On the next day, the stock price of the Jinshan Office rushed to a high of 366.08 yuan/share.However, compared with the highest value of 529.65 yuan/share in June last year, this price is still in the downward range, which seems to show that investors do not buy the Jinshan office in 2023.
Picture source: snowball
Behind the non -buying account, on the one hand, the AI model from 2023 from technology to commercialization, ushered in rapid development.Many domestic companies have achieved a substantial increase in profits through AI.According to Meitu’s financial report, in 2023, Meitu’s total revenue was 2.7 billion yuan, an increase of 29.3%year -on -year.The net profit of home was 370 million yuan, a year -on -year increase of 233.2%. The growth of total revenue and net profit was mainly due to AI promotion.
As a domestic head office software manufacturer, Jinshan Office is a relatively good landing entrance with a relatively good AI model, which can bring strong empowerment to office software manufacturers.
In 2023, the Jinshan Office also launched related landing products around large models, but in 2023, 18%of the net profit growth rate of returning mother -in -law was not only increased by 10.67%compared to the 7.33%net profit growth rate of 7.33%in 2022, and compared with other companies, compared with other companiesIt is also relatively low, which has not met market expectations.
Picture source: Jinshan Office Finance Report
On the other hand, the revenue growth rate of Jinshan office from 2019 to 2022 was 39.82%, 43.24%, 45.07%, and 18.44%.In other words, 17%of the revenue growth rate in 2023 was the minimum growth rate in Jinshan office in 5 years.
Picture source: Jinshan Office Finance Report
From the perspective of income composition, Jinshan’s office revenue includes TOC membership subscription revenue and advertising revenue. In 2023, the two revenue accounted for 58.24%and 6.32%, respectively, totaling 64.56%, which is the leader of Jinshan office revenue.However, behind this is the growth of domestic office users’ growth bottlenecks, the lack of AI model capabilities, and the low conversion of paid members.
The TOB end includes corporate membership subscription income and credit income. In 2023, the two revenue accounted for 21.01%and 14.38%, respectively, with a total proportion of 35.39%.However, the TOB income is currently being surrounded by various collaborative office software, and the process of Xinchuang’s time cycle is slow.
This also makes the market have to worry about whether the growth of Jinshan office revenue in the future will fall into a bottleneck?
01. Domestic office users are close to ceiling, and low -cost members impact the official website members
In December 2023, Jinshan Office issued an announcement saying that it would shut down external advertisements, which means that the income of Jinshan office advertising in 2024 was zero.Member subscription revenue will become the key to driving the growth of TOC revenue in TOC in Jinshan in 2024.
However, considering that the monthly living user of the Jinshan office PC and mobile in the Q3 Jinshan office in 2023, it is close to the domestic population growth ceiling.After all, domestic physical workers, most of the elderly, and children who retire at home have basically not used the actual needs of WPS office.Based on this, Jinshan office needs to continuously transform existing stock users and increase the renewal rate of veterans.
Picture source: China Galaxy Securities
The adjusted Jinshan members include the 148 yuan/year super member and the 198 yuan/year super member Pro to give different rights and interests for different membership levels.However, the annual members who started more than 100 yuan also persuaded many users.
Picture source: Jinshan office PC side
Although users have gradually accepted the Internet subscription model in recent years, they are different from Youai Teng Chang Video Website to rely on high -quality content to stimulate the desire to pay for users. At present, users’ payment of office software is still in the early stage of cultivation.
Taking December 2022 as an example, iQiyi, Mango TV, and Tencent’s payment rates were 20%, 25%, and 27%.In comparison, WPS paid penetration rate is only 12.4%.
Photo source: wind
Behind users are unwilling to pay for office software: On the one hand, there are a large amount of low -cost activation code for overseas office software on the e -commerce platform on the one hand. The core basic functions of WPS and Office can meet the office needs of most users.
On the other hand, when users temporarily need WPS batch processing pictures, download resume templates and other membership rights, it is easy to go to the e -commerce platform to buy low -cost members of WPS.For example, the price of WPS members sold on a certain treasure was 15 yuan and 35 yuan, respectively, which was almost 10 % off the price of the official website of the WPS.Some users even have low -cost members of the e -commerce platform WPS.
Picture source: Taobao, Pinduoduo
How to crack down on the low -cost members of the e -commerce platform is also a problem faced by many companies.Since 2019, after the major Internet companies have launched membership value -added services, a complete gray production has formed behind it.
At the same time, many software free functions have become the rights and interests of members enjoyed by WPS.For example, the organizational structure diagram in XMIND, the Chinese and English interpreter function of the web version of NetEase are free, but WPS can only be used by paid members.
Picture source: WPS
More importantly, WPS has repeatedly trapped users to invade privacy storms.For example, in July 2022, a entry that “WPS will be exposed will delete the user’s local files” is hot search first.The scope, which has caused many users to worry.
For members who have purchased WPS, there are still too many members to be optimized for membership rights and functions that WPS give.
As a WPS super member, the author found that the picture dials often occur in the actual use process during the use process. Not only the transformed table information is serious, but also a large number of typos in the identification text.
Picture source: donews
If Shanghai Jiaotong University is identified as “Shanghai Weitong University”, smart education is identified as “back”.Each time you need to delete a large number of table content after WPS image recognition, and correct a large number of typo.
The same situation also appears in the picture transfer text, such as identifying the information system integration service in the original picture as “interest -based integration service”.The vibrato and rising powder in the original picture are recognized as “shaking tube”, “dissolved objects” and so on.
Picture source: donews
Picture source: donews
When WPS is transferred to the PDF, it is impossible to achieve intelligent transformation in the true sense.After converting the table in the figure below to PDF, the number of times the last column is directly recognized as a separate page, which looks very abrupt.
Picture source: donews
Picture source: donews
In addition to continuous optimization functions, users’ dissatisfaction with WPS members is also increasing.For example, in the black cat complaint, there are as many as 9,734 complaints about WPS. These complaints are still deducted after WPS is concentrated, and some consumers also say that they cannot contact customer service.
Picture source: black cat complaint
The common existence of the above problems has continued to decline in the number of WPS members.In the middle of 2021-mid-2023, the cumulative growth rate of WPS paid individual users was 30.16%, 30.53%, and 16.36%, respectively.The growth of personal subscription business revenue in the financial report is actually based on the continuous price increase of WPS members.
Picture source: Jinshan Office Finance Report
Based on this, how to continuously enrich member rights and continuously optimize existing functions, becoming the key to the Kingsoft office wants to increase the existing users to transform into member users.
02. Credit customers turn the decision -making trend, and the sales costs have risen sharply
In August last year, Jinshan Office pointed out in the institutional research activities that the overall Xinchuang time cycle is slower than we expect.However, Nobuncho has not changed its general trend, and in the future, Xinchuang is expected to bring greater increase.
However, from the last three years of the Jinshan office, many customers are changing from credit to subscription.On the one hand, contract liabilities are confirmed as the future revenue of software companies. Increased contract liabilities means that the company has more contracting customers, and the product is in short supply in the market.
With the successive delivery of subsequent products and customer repayment, the company’s revenue will also grow.vice versa.However, from 2021 to 2023 Jinshan’s office contract liabilities were 70.62%, 21.84%, and 9.28%, respectively, the growth rate decreased significantly.
Picture source: Jinshan Office Finance Report
At the same time, the credit income of Jinshan office customers in 2022 and 2023 fell 13.18%and 21.6%year -on -year, respectively.According to these two parties, the current customer credit income of Jinshan office is not optimistic.
Picture source: Jinshan Office Finance Report
On the other hand, the subscription revenue of Jinshan office enterprises in 2022 and 2023 increased by 55.06%and 38.36%, respectively.Although the growth rate has slowed down, it still maintains a growth momentum.
Picture source: Jinshan Office Finance Report
This is likely to be a large number of customers from credit to subscriptions. At present, the charging standard for the Jinshan office for the TOB side is: the number of members to be opened according to the requirements of the enterprise, the single account super member is 148 yuan/person, and the official website of the official website is consistent with the official website.On the basis of super members, adding related functions such as approval and leave approval in flying books is 399 yuan/person.
From the perspective of the bidding price of party, government and state -owned enterprise customers, compared with the price of millions or even 10 million, the subscription income and Jinshan office also need to give a certain discount for large customers.Purchase costs are lower, which is also in line with the background of the pursuit of cost reduction and efficiency and increase efficiency in 2023, and this trend may be more obvious.
Picture source: Enterprise Early Warning
Behind the decline in the decline in the growth of office revenue in enterprises, it comes from the squeezing of coordinated office software such as nails, flying books, Tencent documents, and Xunfei documents. The subsequent collaborative office software may have a greater impact on the income of the Jinshan office TOB.
Judging from the benchmarking SaaS industry, many bosses of Party A do not care about SaaS’s specific form at all, and acquiring internal cost reduction and efficiency and low -cost customers are the existence of all digital software.This is also here that the commercialization process of domestic TOB models is also slow.
However, compared to SaaS products such as ERP, fiscal and taxation, many small and medium -sized enterprises A boss’s owner’s subscription of members of Jinshan office subscription to the enterprise reduces efficiency and efficiency, and it is not strong.
Zhang Chao, the person in charge of an enterprise in Anhui Province, told Donews that if our company employees really need WPS membership services, they will find ways to solve them. After all, WPS members on e -commerce platforms are so cheap, daily collaborative office, approval and other issues, flyingBooks and nails are free.Why do we spend money to buy it?
And compared to large enterprises, state -owned enterprises, and state -owned enterprises generally selected suppliers by public bidding, SMEs purchased SaaS product information relatively occluded. SaaS companies can only invest more salesperson and establish deeper connections.One of the reasons why domestic SaaS companies have difficulty in profitability.
However, compared with Feishu and Nailing, the current business scenario of Kingsoft’s office lacks a business scenario that can go deep into small and medium -sized enterprises.For example, Alibaba Cloud has been plowing cloud services for many years, Taobao, Tmall, and Douyin e -commerce focus on a large number of sellers, and headlines focus on a large number of content creators.Taking business scenarios as an opportunity, bytes and Ali employees can also help fly books and nails penetrate more SMEs as soon as possible. This is the foundation for the cultivation of small and medium -sized enterprise employees to use the habits of the use of small and medium -sized enterprise employees.
The existence of the above problems allowed the sales cost of Kingsoft’s office from nearly 700 million in 2021 to 960 million yuan in 2023.While high sales costs, while the profit of eating enterprises, it also makes the follow -up Jinshan office increasingly difficult to make money.
Picture source: Jinshan Office Finance Report
03.All in AI strategy, AI capability still needs to be improved
Under the guidance of the “All In AI” strategy in 2023, Jinshan Office built AIGC content production, interpersonal interaction Copilot, knowledge refinement of three product lines, and gradually embed these functions into WPS.
Taking WORD’s inspiration market as an example, it extends to workplace office, education and teaching, business analysis and other scenarios according to production content.However, we found in the process of testing that the current production capacity of the AIGC content of WPS still needs to be improved.
Picture source: WPS PC terminal
For example, we are using self -media copywriting to write functions, asking it to write an article of about 500 words based on the price of Xiaomi Motors, and the article requires a clear point of view, conflict, and contradiction.
However, the content, conflict, and contradictions behind the pricing of Xiaomi Motors directly do not understand our requirements.In the contents given, without the price of Xiaomi cars and comparison with other brand cars, it was directly pointed out that Xiaomi’s pricing strategy was significantly low.
Picture source: WPS PC terminal
After we ask for expanding the content to 1,000 words, more errors are generated.As mentioned in the introduction, the upcoming Xiaomi has attracted much attention.In the text, if Xiaomi Automobile enters the market at a low price strategy, it will directly compete with traditional car brands BMW and Mercedes -Benz brands.
Picture source: WPS PC terminal
Picture source: WPS PC terminal
But obviously this is not in line with reality. After all, Xiaomi Motors has been released as early as December last year.The traditional brand BBA focuses on high -end markets. If Xiaomi Motors has a low pricing and its main public market, it cannot talk about a strong competitive relationship.
Behind the poor capacity of Jinshan’s office, it is a low investment developed by the company.Compared with other companies’ investment in large models, the cost of billions of investments.In 2023, the investment cost of the Kinshan office was only over 100 million yuan, an increase of 10.6%year -on -year compared with 2022. This is obviously contradictory with the Kinshan office that does not lack money.
Picture source: Jinshan Office Finance Report
Picture source: Jinshan Office Finance Report
However, it is left to the Jinshan office to improve the content of the content, and give AI capabilities into membership rights, and then attract more TOC users to buy members to buy members.The content generation ability is almost the standard function of the current large model in China. Especially in the newly released models released by domestic mobile phone manufacturers, the content generation ability is made into standard functions, such as vivo S18 and X100, OPPO Find X7 series, and so on.
At this stage, in order to increase the shipment of AI mobile phones, OPPO not only requires offline stores to promote through various materials, but also conduct unified training on store sales.After the customer enters the store, it is introduced to the relevant functions of large models, which means that mobile phone manufacturers have begun to seize the minds of large models in users.
Picture source: donews
The penetration of the AI mobile phone may take a certain time, but as the user’s frequency increases, the production capacity of large models will also require higher and higher.If it is found that the production content of a large model of a company is not good, it is easy to dispel users.
Zhang Qingyuan, CEO of Jinshan Office, pointed out that the AI model technology has changed very much on software products. It not only affects the design of the product function, but also subverts many past technical routes, and even affects the underlying technology of the product.
