Kingsoft Corp’s shares declined 3.6% to HK$24.64 on Thursday, underperforming the Hang Seng index which gained 0.8%, as investors digested a mixed earnings report that fell short of elevated expectations.
The company reported total revenue of RMB 4.927 billion for the first half of 2026, a 6.1% increase from the same period a year earlier. Net profit attributable to shareholders surged 100.8% to RMB 1.639 billion, reflecting strong overall performance. However, the stock’s retreat underscored concerns over the pace of growth in the second quarter.
Standalone net profit for the quarter rose just 2.9% year-over-year, a marked deceleration compared with the first half’s performance. Analysts noted that the slower growth in Q2 contrasted with the broader trend of Hong Kong-listed technology stocks, which advanced alongside overnight gains in U.S. peers following a decline in Treasury yields from recent highs.
Kingsoft Office, the company’s subsidiary, posted a 237% jump in net profit for the first half, though the increase was partly attributed to non-cash items linked to changes in affiliate stakes. This raised questions about the sustainability and quality of earnings, contributing to the sell-off in Kingsoft’s shares despite the headline figures.
The company’s ticker 3888 fell 5.95% in intraday trading, while its Shanghai-listed unit 688111 declined 2.22%. The broader market’s resilience in Hong Kong did little to offset the stock-specific pressure, as investors reassessed the outlook based on the weaker-than-expected quarterly performance.
