Red Star Capital Bureau reported on November 19 that Jinshan Office (688111.SH) responded and apologized to users late last night in response to the query that "user documents are used for AI training. Red Star Capital found that this is not the first time WPS has been involved in a privacy dispute.

Since this year, Jinshan Office has repeatedly mentioned AI strategy. AI has become the new story of Jinshan Office in the capital market, and the stock price and market value have also risen. Stimulated by the AI concept, Jinshan Office's share price surged to 529.77 yuan per share in June, setting a new historical record, with a market value once exceeding 240 billion yuan. However, in the process of the rapid growth of Jinshan office share price, some major shareholders have chosen to reduce their holdings at a high level.

Take the user document "feed" AI?

Kingsoft Late Night Apology

recently, some netizens reported that the WPS privacy policy of Jinshan office's products contained the statement of "feeding" AI user documents, questioning its involvement in user privacy issues, causing widespread concern.

Red Star Capital Bureau noted that in the terms of "WPS Privacy Policy-Jinshan Office Privacy Protection Center", it is mentioned that "we will use the document materials you upload voluntarily as the basic materials for AI training after desensitization.

Although the above clause also states that strict security measures and technical means will be adopted to de-identify the data, it still raises questions from users.

at about 23: 00 on November 18, WPS's official microblog issued an urgent response, apologizing to users and promising that user documents would not be used for AI training purposes.

Image from WPS official micro-blog

In the statement, Jinshan Office said that after careful review, it felt that the previous version of the statement had caused troubles to users. To this end, the WPS Privacy Policy has been updated to remove misleading statements and ensure that its content strictly corresponds to actual operations.

At the same time, Jinshan Office solemnly declares that all user documents will not be used for any AI training purposes, nor will they be used in any scenario without the user's consent.

Red Star Capital found that this is not the first time WPS has been embroiled in a privacy controversy. In July 2022, WPS was revealed to be deleting users' local files. At that time, WPS was also suspected of violating users' privacy. After attracting attention, WPS was listed on the microblog search list.

On July 11, 2022, WPS responded, "A link to an online document recently shared by a user is suspected of violating the law, and we have legally prohibited others from accessing the link. The incident was falsely reported as WPS deleting the user's local files," WPS stated, "Always put the user experience and the protection of user privacy first." Two days later, WPS reiterated that it would not do any auditing, locking, or deleting of users' local files.

Behind the Privacy Controversy

Jinshan Office Power AI Track

in 2023, the emergence of ChatGPT will make AI a hot topic in the capital market. Jinshan Office is not far behind, and has been moving continuously on the AI track for nearly a year.

at the beginning of the year, Microsoft announced its Copilot AI assistant at the front foot, and Jinshan office released "WPS AI" at the back foot ". In April, Jinshan Office launched WPS AI, the first ChatGPT-like application of the domestic collaborative office track, which is positioned as a large language model application and anchors the development of AIGC (content creation), Copilot (intelligent assistant) and Insight (knowledge insight).

On May 16, WPS AI demonstrated its ability to Copilot like Microsoft. On July 6, WPS AI appeared at the 2023 World Artificial Intelligence Conference and announced the launch of its official website. On November 16, Jinshan Office announced that WPS AI, an artificial intelligence office application with large language model capability, would open a public test.

according to the interface news report, after the new WPS Office spring version was launched in the first half of 2023, Jinshan office research and development team almost all invested in AI, and 2/3 of the personnel were doing AI research and development.

Aiming at the AI track is not just chasing hot spots, weak revenue growth and fierce external competition are all prompting Jinshan to find a new direction. According to the financial report, in the first half of 2023, Jinshan Office's domestic agency authorized business revenue was 0.36 billion yuan, a decrease of 13.96 percent year-on-year; contract liabilities fell 1.64 percent year-on-year to 1.703 billion yuan. On the other hand, the old rival Microsoft office, the new rival DingTalk, flying book, Tencent documents and other competition intensified, Jinshan office sales costs in the first half of 2023 increased by 34% year-on-year.

Under pressure and challenges, AI has become a new story for Jinshan Office in the capital market, and its stock price and market value have also risen. Stimulated by the AI concept, Jinshan Office's share price surged to 529.77 yuan per share in June, setting a new historical record, with a market value once exceeding 240 billion yuan. Several securities firms have given Jinshan office buying rating, such as Minsheng Securities on April 19, a research report pointed out that the office is expected to become the first AI landing and the first to cash in the performance of the field, Jinshan office to accelerate the integration of AI, valuation is expected to be systematic reconstruction.

High-level reduction of major shareholders

Jinshan response: do a good job of capital reserves

The Red Star Capital Bureau noticed that in the process of the rapid growth of Jinshan Office's stock price, some major shareholders chose to reduce their holdings at a high level.

on April 18, the day Jinshan office released WPS AI, its disclosure announcement said that the controlling shareholders WPS hong kong and qiwen nwei (referring to a total of 10 enterprises from qiwen one-dimensional to qiwen ten-dimensional) planned to reduce their holdings. As of July 21, WPS Hong Kong and Qiwen Nwei have reduced their holdings of 21,836,531 shares in Jinshan Office, accounting for 4.73 of the company's current total share capital.

According to the latest three-quarter report, Qiwen Wuwei, Qiwen Siwei, Qiwen Qiwei and other major shareholders are still reducing their holdings of Jinshan Office, the three companies in the third quarter of the total reduction ratio of about 0.24. Tianyan check APP shows that the general partners of the above three companies are Beijing Jinshan Qiwen Enterprise Management Consulting Co., Ltd., which is 100 percent owned by Lei Jun, the actual controller of Jinshan Office.

Regarding the reduction of shareholder holdings, on October 13, Jinshan Office stated on the interactive platform that the reduction of the company's major shareholders was due to the consideration of facing new opportunities and challenges of artificial intelligence and making good capital reserves. There is currently no next step. Reduction plan.

Red Star Capital Bureau noted that Jinshan Office's share price fell in the second half of the year as the AI concept cooled. Since the June high, the company's stock price has fallen by 32.24. As of November 17, it closed at 327.48 yuan per share, with a total market value of 151.204 billion yuan.