Beijing Kingsoft Office Software Co., Ltd

2025 action plan of "improving quality, efficiency and return".

Beijing Kingsoft Office Software Co., Ltd. (hereinafter referred to as the "Company" or "Kingsoft Office") practices the concept of investor-oriented, takes high-quality development and thickening shareholder returns as the action path, and combines the company's strategy

Planning, production and operation and other company conditions, the company released the "2024 Annual Report" on March 21, 2024

Quality and efficiency increase and return on the action plan", the company earnestly implements the relevant content of the 2024 annual action plan, and actively carries out and implements relevant work.

In 2025, in order to better continue the good achievements made in the above aspects, the company specially formulated the "2025 Action Plan for Improving Quality and Efficiency and Valuing Returns" (hereinafter referred to as the "Action Plan") to summarize the implementation of the plan in 2024, and formulate a plan that can further improve the quality of the company's operation, continue to enhance investors' returns, continuously improve investors' sense of gain, and continue to improve the level of corporate governance, so as to ultimately achieve the company's sustainable and high-quality development.

1. Focus on the steady operation of the main business and build a foundation for value investment with high-quality development

In 2024, the company achieved operating income of 5120.84 million yuan, a year-on-year increase of 12.40%; Belong to the mother

the net profit of the company's owners was 1645.08 million yuan, a year-on-year increase of 24.84%; The net profit attributable to owners of the parent company after deducting non-recurring gains and losses was 1556.34 million yuan, a year-on-year increase of 23.30%. In the main business, WPS personal business

business revenue was 3283.29 million yuan, a year-on-year increase of 18.00%; WPS 365 business revenue was 436.5 million yuan, year-on-year

an increase of 149.33%; WPS software business revenue was 1267.95 million yuan, down 8.56% year-on-year; Other business income

revenue was 131.72 million yuan, a year-on-year decrease of 37.17%.

In 2025, the company will continue to focus on the core strategic direction of "multi-screen, cloud, content, collaboration, and AI", continue to increase R&D investment in the field of collaboration and AI, drive product iteration and upgrading with innovation, create a product system that is more suitable for user needs, and continuously improve the company's market competitiveness and industry influence in the field of smart office.

2. Adhere to technology, take root in innovation genes, and deeply cultivate products to achieve value

In 2024, the company's R&D investment will be 1.696 billion yuan, a year-on-year increase of 15.16%, and the R&D expense ratio will be about 33%.

The total number of R&D personnel was 3,473, an increase of 12.50% year-on-year, accounting for about 67% of the total number of employees.

The company deeply couples the large model with the whole line of products, and uses the "AI gateway" to manage different large model capabilities in a unified manner

successfully solves the compatibility problem of various large models, and realizes the accurate adaptation of large models behind different functions. At the same time, the company focuses on the independent research and development model of office scenarios to create scenario-based intelligent optimal solutions: the WPS official document model based on the government affairs model realizes the intelligent management of the whole life cycle of official documents - from intelligent drafting, interactive rewriting, to one-click typesetting and element verification, supports standard official document templates such as notices/reports/proposals, and extends to professional scenarios such as bidding, contract review, and paper writing; Through massive data pre-training and high-quality data fine-tuning, the self-developed Wensheng graph large model has demonstrated excellent control and processing speed, which is more suitable for the needs of office scenarios, and has continued to increase the user adoption rate after being applied to demonstration generation scenarios.

The company unifies the differences in multi-screen experience and redefines large-screen productivity. The company has gradually achieved the consistency of PC large screens, tablets, mobile small screens and web kernels, and new functions have been simultaneously updated to all platforms, providing users with a seamless office experience. At the same time, according to the dual attributes of mobile and PC tablets, the company reshapes the productivity of tablets, introduces complete editing functions into tablet devices, and expands the office application scenarios of tablets. The company has also cooperated with Huawei to launch WPS HarmonyOS Edition, which unifies the architecture of PC and mobile terminals, creating a smooth experience such as multi-platform account integration, cross-terminal calling, and cross-screen collaboration, laying a solid foundation for the in-depth integration of cross-device office in the future.

Focusing on the product landing needs of government and enterprise customers, the company upgrades and iterates the private cloud version, lowers the threshold for the deployment of collaborative office platforms, supports AI product adaptation, is compatible with localized software and hardware, and meets the requirements of large enterprises for security, controllability, openness and empowerment. The upgraded private cloud version is designed with a highly integrated service architecture, which lowers the hardware threshold for product operation. The new visual deployment and operation and maintenance platform greatly shortens the product deployment time, reduces the difficulty of maintenance, and improves the stability of the system. Added AI hardware resource management to support government and enterprise customers to privatize and adapt AI products and services. It is compatible with mainstream Xinchuang computing units and operating systems, and can use the adaptation tools launched by the company to connect with Xinchuang database; Improve the identity authentication management system, provide a unified WPS 365 API, help the migration of public network applications, and provide open interfaces for customers' own project integration and customization.

In 2025, the company will continue to drive innovation, improve the overall experience, and explore new AI applications

Office application form. The company will continue to use AI to transform existing functions and promote intelligent upgrades in office scenarios. At the same time, the company hopes to provide enterprises with more flexible solutions through cutting-edge technology, enhance the ability to apply private domain data, and improve the intelligence level of customers. It is expected that the company's influence in the field of AI will continue to expand in the future, and the scale and activity of users will continue to increase. In the field of collaborative office, the company will continue to improve the functions and performance of WPS 365 products to meet the diverse needs of enterprises and achieve continuous improvement of market share. The company will continue to maintain the advantages of openness and other advantages, further improve the user experience, and ensure that the products are always closely integrated with user needs.

Provide users with a one-stop office platform that integrates AI capabilities. At the same time, the company will strengthen market promotion, enhance brand awareness and influence, and actively expand ecological cooperation to meet a wider range of market demand. The company sees overseas markets as an important strategic area and a new growth engine. The company's core products will move towards internationalization, continue to optimize the functions and services of the international version of the products, provide products and services that are more in line with the localization needs of overseas users, better meet the needs of customers in different cultural backgrounds, and provide accurate services. Intensify efforts to expand overseas markets. The company will continue to strengthen the strategic planning of overseas markets, continuously enhance the company's international competitiveness, and ensure that it maintains a leading position in global competition.

3. Share development dividends and return investors with substantial growth

The company attaches great importance to a reasonable return on investment for investors. On the premise of ensuring the reasonable needs of the development of the main business, combined with the actual operating situation and development plan, the company strictly implements the shareholder dividend return plan and profit distribution policy in accordance with the requirements of relevant laws and regulations, so as to bring long-term and stable investment returns to investors and enhance the widespread

A sense of gain for big investors. As of the end of June 2024, the company's 2023 annual profit distribution has been completed, per share

A cash dividend of RMB 0.87957 (tax included) was distributed, with a total cash dividend of RMB 406 million. 2019 year to

As of the disclosure date of this announcement, the company has accumulated a total of about 1.581 billion yuan in cash dividends (including the amount of cash dividends included in the cash repurchase of shares).

In 2025, the company will continue to provide investors with continuous and stable cash dividends based on the current business situation, future development plan and industry development trends, bring long-term investment returns to investors, and actively explore multiple dividends a year, medium-term dividends, pre-dividends and other schemes to enhance investors' sense of value.

Fourth, based on the struggler, build a talent strategy of symbiosis of righteousness and benefit

In March 2024, the company released the 2024 restricted stock incentive plan (draft), which intends to provide incentives to the company

For example, no more than 1,000,000 restricted shares will be granted, accounting for approximately the total share capital of the company at the time of the announcement of the draft incentive plan

of 0.22%. In May, 798,000 restricted shares were granted to 157 incentive recipients for the first time, accounting for about the incentive

0.17% of the total share capital of the Company at the time of grant of the Scheme Announcement. The reserved part does not exceed 20.00% of the total rights and interests granted, and the corresponding number of reserved shares for grant is 199,000 shares, accounting for about 0.04% of the company's total share capital at the time of the announcement of the draft incentive plan.

Since 2021, the company has actively launched the implementation of the stock incentive plan, formulated more accurate performance appraisal indicators, and implemented assessment management methods to strictly evaluate employees. Ensure that the interests of the incentive recipients are consistent with the interests of the company and shareholders, and form a good sharing and sharing constraint mechanism. By the end of 2024, a total of pairs are compliant

1,995,300 shares were granted to the conditional incentive recipients, and the incentive scope reached 492 people. In 2025, the company will continue

Optimize the market-oriented salary and performance evaluation system, further strengthen the correlation between the remuneration of management and core technical talents and the company's overall strategic planning and performance, strengthen assessment and evaluation, stimulate the vitality and efficiency of organizational talents, and promote the company's development to a higher quality.

5. Pay attention to policy orientation, strengthen governance capacity, and actively play key roles and responsibilities

On February 1, 2024, the company disclosed the "Kingsoft Office's Notice on Promoting the Company's "Quality and Efficiency Improvement and Return"

Announcement of the Action Plan (Announcement No.: 2024-003), the controlling shareholder of the Company, Kingsoft WPS Corporation Limited, the actual controller Mr. Lei Jun and the person acting in concert with Mr. Qiu Bojun promise not to transfer or reduce their holdings of the Company in any way within the next 3 months from the date of the announcement; During the commitment period, if there are shares arising from the conversion of capital reserve into share capital, distribution of stock dividends, allotment of shares, additional issuance, etc., the above commitments shall also be observed.

Based on the confidence in the company's sustainable and stable development in the future and the recognition of the company's long-term value, under the initiative of Mr. Lei Jun, the actual controller, the company launched a centralized bidding transaction with its own funds in 2024

Repurchase of company shares. The company held the fifteenth meeting of the third board of directors on January 31, 2024 to deliberate

The Company intends to use its own funds of not less than RMB 50 million (inclusive) and not more than RMB 100 million (inclusive) to repurchase the Company's RMB ordinary shares (A shares) by means of centralized bidding transactions, which will be used to implement the employee stock ownership plan or equity incentive plan, and the repurchase price shall not exceed RMB 380 per share (inclusive), and the repurchase period shall be from the board of directors of the Company

Within 12 months from the date of consideration and approval of the share repurchase plan. As of July 18, 2024, the Company has finished

A total of 461,483 shares of the Company were repurchased, accounting for approximately 0.0998% of the Company's total share capital, with a repurchase amount of RMB100,019,166.40 (excluding transaction fees such as transaction commissions).

At the same time, it is also based on confidence in the company's future development and recognition of the company's long-term investment value

Mr. Zhang Qingyuan, Director and General Manager of the Company, passed the Shanghai Stock Exchange trading system on July 2, 2024

The company increased its holdings by 25,000 shares, accounting for 0.0054% of the company's total share capital, with a total increase of RMB 4,986,031.35 (excluding transaction costs). According to the market situation, it is not ruled out that there will be a continued increase in the company's shares in the future.

In 2025, the company will always pay attention to the health of market value and investor returns, and maintain the stability of the company's market value in the capital market by means of buybacks or active increases in holdings in a timely manner.

Sixth, the compliance is rigorous, diversified and parallel, and earnestly do a good job in the management of investment and customs

In 2024, the company will continue to attach importance to investor relations management, strengthen contact and communication with investors, effectively convey the company's value to the capital market, let investors have a better understanding and recognition of the company, and timely feedback investors' concerns and views to the company's management, so as to actively respond to market changes and respond to investors' demands.

In 2025, the company will continue to use the investor hotline, the company's public mailbox, SSE e-interaction, etc

A variety of ways and communication platforms to enhance the convenience of communication between small and medium-sized investors; Effectively use online platforms such as corporate self-media and Jinmen Finance to provide investors with faster, more convenient and diversified communication channels, and establish a bridge of two-way communication between investors and the company; Actively participate in the strategy meetings organized by domestic takeaway institutions, conduct face-to-face communication with various investors, and arrange various forms of communication meetings such as on-site research and anti-roadshow according to the needs of investors; Arrange a series of investor relations activities, including investor reception days/performance briefings, where the chairman/general manager will lead a team to participate in the interaction with investors. Establish an internal and external rapid feedback mechanism to gain an in-depth understanding of investors' actual demands and reasonable suggestions, and respond in a timely manner, while ensuring that important research minutes are posted on the network in a timely manner, and the principle of effectively respecting and protecting investors' rights and interests is effectively respected.

As of the disclosure date of this announcement, the company has been in accordance with the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Several Opinions of the State Council on Strengthening Supervision and Risk Prevention and Promoting the High-quality Development of the Capital Market", "Administrative Measures for Information Disclosure of Listed Companies", "Regulatory Guidelines for Listed Companies No. 10 - Market Value Management", "Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Rules", "Shanghai Stock Exchange Science and Technology Innovation Board Self-Regulatory Guidelines No. 1 - Standardized Operation" and other laws and regulations, departmental rules, In order to improve the ability to respond to all kinds of public opinion, establish a rapid response and emergency response mechanism, timely and properly deal with the impact of various public opinions on the company's stock price, business reputation and normal production and operation activities, and effectively protect the legitimate rights and interests of investors to improve the quality of the company, in order to enhance the company's investment value and shareholder return ability.

Beijing Kingsoft Office Software Co., Ltd

April 1, 2025