Kunlun Tech Co (300418) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥3.73 billion, up 49.23% year-over-year, driven by rapid growth in new AI businesses and overseas markets, with overseas revenue accounting for 92.17% of total revenue.

• Net loss attributable to shareholders was ¥855.5 million, a 119.86% increase in loss year-over-year, mainly due to increased R&D and market expenses, and fair value losses on investments.

• The company continued to invest heavily in AGI and AIGC, launching multiple industry-leading AI models and applications, and saw significant progress in AI video, music, gaming, and social products.

• Management expects AI to remain the core growth engine, with ongoing focus on productization, commercialization, and global expansion.

Financial highlights

• Operating income: ¥3.73 billion, up 49.23% year-over-year.

• Net loss attributable to shareholders: ¥855.5 million, compared to a loss of ¥389.1 million in H1 2024.

• Basic and diluted EPS: -¥0.69, down 115.63% year-over-year.

• Operating cash flow: -¥560.5 million, compared to ¥189.1 million in H1 2024.

• Gross margin for internet business: 69.63%; short drama platform: 83.09%; Opera search: 95.37%.

Outlook and guidance

• Management expects continued focus on AI R&D, productization, and global market expansion.

• AI is positioned as the long-term growth driver, with plans to deepen vertical applications and enhance cross-platform integration.

• The company will continue to optimize cost structure and improve operational efficiency.