Kunlun Tech Co (300418) Q3 2026 earnings summary

Executive summary

• 9M 2026 revenue rose 53.96% YoY to ¥8.937bn; attributable net profit was ¥2.61m, while adjusted attributable net loss was ¥1.546bn.

• AI commercialization accelerated: TianGong AI revenue grew 168.29% to ¥4.321bn, and AI short-drama platforms reached nearly US$100m in monthly billings in September.

Financial highlights

• Q3 revenue was ¥3.578bn, up 72.71% YoY; attributable net loss was ¥1.085bn and adjusted attributable net loss was ¥1.088bn.

• 9M operating costs totaled ¥10.805bn versus revenue of ¥8.937bn; consolidated net loss was ¥561.3m, while net income attributable to owners was ¥2.61m.

• 9M investment income was ¥1.596bn, largely from recognizing a gain after a subsidiary's equity was diluted and control was lost.

• 9M selling expenses rose 101.27% YoY to ¥5.818bn, mainly on higher marketing and channel fees; operating revenue increased 53.96%.

Outlook and guidance

• Strategy remains focused on AGI and AIGC, with four model families supporting AI-native short-drama, music and gaming platforms and a technology-to-commercialization loop.

• Planned priorities include expanding global commercialization, developing AI-native platforms and advancing the commercial testing version of the AI game 《猫森小镇》.