Kuaishou Technology (1024) investor relations material

Executive summary

• Achieved high-quality growth in Q2 2026 amid a complex macroeconomic environment and intense industry competition, driven by strategic AI investments and operational resilience.

• Average DAUs reached 412.3 million, with MAUs at 797.3 million, maintaining position as the world's second-largest short video platform.

• Kling AI revenue exceeded RMB 850 million in Q2 2026, up over 200% year-over-year, reinforcing global leadership in AI video generation.

• Adjusted net profit for Q2 2026 was RMB 3.9 billion, with an adjusted net margin of 11.0%.

• Core business revenue (online marketing and other services, mainly e-commerce) rose 7.4% year-over-year to RMB 26.8 billion.

Financial highlights

• Total revenue for Q2 2026 was RMB 35.5 billion, up 1.4% year-over-year; gross profit was RMB 18.3 billion with a margin of 51.6%.

• Online marketing services revenue grew 4.4% year-over-year to RMB 20.6 billion.

• Revenue from other services, including e-commerce and Kling AI, rose 18.5% year-over-year to RMB 6.2 billion.

• Live streaming revenue reached RMB 8.7 billion, down 13.5% year-over-year.

• Adjusted EBITDA for Q2 2026 was RMB 7.1 billion (20.0% margin), down 7.7% year-over-year.

Outlook and guidance

• Expect near-term revenue pressure and continued heavy AI investment to weigh on profitability in the second half.

• Will maintain a long-term focus on AI-driven growth, prudent financial discipline, and cost efficiency.

• E-commerce marketing service revenue and commission income expected to face pressure in the second half, but structural opportunities remain.

• Management remains cautious about the short-term business outlook due to a complex and challenging operating environment.

• Plans to deepen AI integration across business ecosystems and scale Kling AI's capabilities.