Kuaishou Technology, a prominent Chinese short-video platform, witnessed a 23 percent surge in net profit for the second quarter, driven by the integration of artificial intelligence tools. This significant financial growth led the company to declare its first special dividend since its listing in Hong Kong more than four years ago. Following this positive financial report, Kuaishou’s shares saw a 4.4 percent increase, closing at HKD74.90 (USD 9.58) per share, marking a remarkable year-to-date gain of over 80 percent.
The latest earnings report from Kuaishou revealed a net profit of CNY 4.9 billion (USD 682.2 million) for the quarter ending on June 30. Adjusted net profit increased by 12 percent to CNY 5.6 billion, accompanied by an adjusted net margin of 16 percent, both of which set quarterly records. The company’s revenue also experienced a notable 13 percent climb to CNY 35 billion (USD 4.9 billion), with online marketing services and livestreaming contributing significantly at 56 percent and 29 percent, respectively.
In response to their robust financial performance, Kuaishou announced a special dividend of HKD 0.46 per share, totaling approximately HKD 2 billion. The company expressed the possibility of further share buybacks or dividends in the future. Co-founder Cheng Yixiao highlighted the pivotal role played by innovative AI technology in enhancing both content and business ecosystems, leading to exceptional operational and financial results in the second quarter. The integration of large AI models across various platform scenarios empowered merchants, key opinion leaders, and creators, enriching user experiences and driving average daily active users to a historical peak of 409 million.
Kuaishou’s app witnessed a 3.4 percent increase in average daily active users, reaching 408.9 million, and a 3.3 percent rise in monthly active users, totaling 714.8 million. The company also reported a substantial 18 percent surge in e-commerce gross merchandise volume, amounting to CNY 358.9 billion (USD 50 billion). Additionally, revenue from other services, comprising 15 percent of the total, surged by 26 percent to CNY 5.2 billion, primarily attributed to the growth of e-commerce and Kling AI businesses, with revenue from Kling AI surpassing CNY 250 million (USD 34.8 million).
Kuaishou’s strategic focus on AI innovation was further exemplified by the launch of the Kling AI 2.1 model series in May, boasting enhanced quality features such as improved motion performance and realistic physical simulation. Furthermore, the introduction of OneRec in June, an end-to-end generative recommendation large model, significantly improved training efficiency and inference computing power. Looking ahead, Kuaishou aims to continue harnessing the transformative potential of AI across its business scenarios to foster sustainable growth for the company while delivering long-term value to users, partners, and shareholders.
Key Takeaways:
– Kuaishou’s integration of AI technology and record daily active users drove a substantial increase in net profit and revenue, leading to a special dividend declaration.
– The company’s strategic focus on AI innovation, evidenced by the launch of Kling AI 2.1 and OneRec models, underscores its commitment to enhancing user experiences and operational efficiency.
– Kuaishou’s robust financial performance in the second quarter, marked by a significant rise in net profit and revenue, positions the company for sustained growth and value creation in the future.
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