How does Kingsoft generate revenue?
We currently generate substantially all of our revenue from our entertainment software and applications software businesses. We have also entered into arrangements to sell our products in various Asian markets. We license our in-house developed online games for distribution in other Asian markets, including Vietnam, Taiwan, Malaysia and Singapore. Under these licensing arrangements, the licensees are required to pay an up-front licensing fee as well as a periodic royalty fee equal to a percentage of revenue derived from our online games.
