Tech companies adjust focus to recapture growth
Updated: 2015-11-23 08:18
By Hu Yongqi(China Daily)
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Zhang said Kingsoft's anti-virus program provides free services to attract more computer users and, more importantly, mobile Internet users. In May 2014, another subsidiary, Cheetah Mobile, which is focused on mobile Internet, filed an initial public offering at the New York Stock Exchange.
Free services for mobile Internet users were a breakthrough for Kingsoft, helping it to expand business and increase sales, the company said. Cheetah Mobile has 550 million active monthly users and 15 times more revenue than when it charged membership fees. The software Clean Master, powered by Cheetah Mobile, has been among the top four on the Android application downloading rankings. The tool advertises its ability to clean junk files, optimize memory, protect against viruses and manage installed apps.
To reduce the negative impact of industry competition, Kingsoft has been exploring product areas that its rivals have not yet entered. It has started investing in cloud services and big data analysis to serve corporate and individual users. These products have raised the company's profit margins and there is still more potential for growth, Zhang said.
"Cloud storage is indispensable to Internet users like water and electricity for our daily lives, and Kingsoft's experienced engineers are capable of providing secure and reliable services for cloud storage," Zhang said.
Kingsoft has become the largest cloud storage for online gaming as 60 percent of China's top 50 online games have purchased the company's service. To diversify its portfolio, Kingsoft is also the only company in the country to construct a one-stop online evaluation platform for gaming testing and assessment.
Kingsoft Cloud stores 409,600 gigabytes of data for online gaming users each day and provides services to store videos for traditional and new media such as People's Daily and Toutiao.com, a popular news site. The company also supplied cloud storage for the live broadcast of the Sept 3 military parade that commemorated the 70th anniversary of the victory of the Chinese People's War of Resistance against Japanese Aggression (1937-45).
Business refocusing, like that being done by Kingsoft and other software companies located in Zhongguancun, has boosted outputs and increased revenue. Companies at the park had revenue of 140 billion yuan ($22 billion) in 2014, a year-on-year increase of 16 percent, according to official statistics. Revenue increases could be attributed to innovation-based preferential policies, domestic software promotion by the central government, and transformation to an Internet-based model, the park said in a statement.
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