Kunlun Tech Co (300418) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥5.36 billion, up 43.55% year-over-year, with overseas revenue up 51.21%.

• Net profit attributable to shareholders was ¥1.09 billion, a turnaround from a loss last year.

• AI-driven businesses, especially AI short drama platforms and Opera, were key growth drivers.

• Major strategic focus on AGI and AIGC, with significant R&D and product launches in AI video, music, and gaming models.

Financial highlights

• Operating income: ¥5.36 billion, up 43.55% year-over-year.

• Net profit attributable to shareholders: ¥1.09 billion, up 227.17% year-over-year.

• Basic EPS: ¥0.87, up 226.09% year-over-year.

• Gross margin for internet segment: 65.11%.

• Cash and equivalents at period end: ¥2.72 billion.

Outlook and guidance

• Continued investment in AGI/AIGC and global AI commercialization.

• Focus on expanding AI short drama, music, and gaming platforms, with ongoing R&D in SOTA models.

• Plans for further international expansion and product localization.