{"success":true,"data":{"pressRelease":{"id":"122486","rtpr_id":"nPNAVxcf5a","ticker":"1024","exchange":"HKEX","all_tickers":["1024"],"title":"Kuaishou Technology Announces Second Quarter and Interim 2026 Unaudited Financial Results","author":"PR Newswire","published_at":"2026-08-19T09:14:24.301Z","article_body":"Kuaishou Technology Announces Second Quarter and Interim 2026 Unaudited\nFinancial Results\nPR Newswire\n\nHONG KONG, Aug. 19, 2026\n\nHONG KONG, Aug. 19, 2026 /PRNewswire/ -- Kuaishou Technology (\"Kuaishou\" or\nthe \"Company\"; HKD Counter Stock Code: 01024 / RMB Counter Stock Code: 81024),\na leading content community and social platform, today announced its unaudited\nconsolidated results for the three months and six months ended June 30, 2026.\n\nSecond Quarter 2026 Key Highlights\n* Average DAUs on Kuaishou APP were 412.3 million, representing an increase of\n0.8% from 408.9 million for the same period of 2025.\n* Average MAUs on Kuaishou APP were 797.3 million, representing an increase of\n11.5% from 714.8 million for the same period of 2025.\n* Total revenue increased by 1.4% to RMB35.5 billion from RMB35.0 billion for\nthe same period of 2025. Online marketing services and live streaming\ncontributed 58.1% and 24.5%, respectively, to the total revenue. The other\n17.4% came from other services.\n* Gross profit was RMB18.3 billion, compared to RMB19.5 billion for the same\nperiod of 2025. Gross profit margin in the second quarter of 2026 was 51.6%,\ncompared to 55.7% for the same period of 2025.\n* Profit for the period was RMB3.2 billion, compared to RMB4.9 billion for the\nsame period of 2025. Adjusted net profit((1)) was RMB3.9 billion, compared to\nRMB5.6 billion for the same period of 2025.\n* Operating profit from the domestic segment((2)) was RMB3.7 billion, compared\nto RMB5.4 billion for the same period of 2025. Operating loss from the\noverseas segment((2)) was RMB25 million, compared to operating profit of RMB19\nmillion for the same period of 2025.\nFirst Half 2026 Key Highlights\n* Average DAUs on Kuaishou APP were 412.5 million, representing an increase of\n1.0% from 408.5 million for the same period of 2025.\n* Average MAUs on Kuaishou APP were 784.5 million, representing an increase of\n10.0% from 713.3 million for the same period of 2025.\n* Total revenue increased by 2.4% to RMB69.3 billion from RMB67.7 billion for\nthe same period of 2025. Online marketing services and live streaming\ncontributed 58.2% and 24.8%, respectively, to the total revenue. The other\n17.0% came from other services.\n* Gross profit was RMB35.6 billion, compared to RMB37.3 billion for the same\nperiod of 2025. Gross profit margin was 51.4%, compared to 55.1% for the same\nperiod of 2025.\n* Profit for the period was RMB6.1 billion, compared to RMB8.9 billion for the\nsame period of 2025. Adjusted net profit((1)) was RMB7.3 billion, compared to\nRMB10.2 billion for the same period of 2025.\n* Operating profit from the domestic segment((2)) was RMB6.8 billion, compared\nto RMB9.7 billion for the same period of 2025. Operating loss from the\noverseas segment((2)) was RMB56 million, compared to operating profit of RMB47\nmillion for the same period of 2025.\n* During the six months ended June 30, 2026 and up to August 19, 2026, the\nCompany repurchased a total of 43,302,200 shares on the Hong Kong Stock\nExchange at an aggregate consideration of HKD1.97 billion.\nMr. Cheng Yixiao, Co-founder, Chairman, and Chief Executive Officer of\nKuaishou, commented, \"In the second quarter of 2026, we continued to unlock\nthe strategic value of AI and delivered solid financial and operating\nperformance amid a complex macroeconomic environment. We accelerated the\nintegration of AI across our content ecosystem, online marketing, e-commerce\nand internal organizational enablement, enhancing both user experience and\ncommercial efficiency. During the quarter, the average DAUs on the Kuaishou\nApp reached 412.3 million and total revenues reached RMB35.5 billion. Even as\nwe continued to invest in AI technologies, our adjusted net profit reached\nRMB3.9 billion, with an adjusted net margin of 11.0%, and our profitability\nremained at a healthy level, further demonstrating the resilience of our\nbusiness. On the AI innovation front, we launched the Kling 3.0 Turbo model,\nreinforcing Kling AI's global leadership in video generation. Meanwhile,\ncommercialization maintained strong growth momentum, with Kling AI generating\nrevenue of over RMB850 million in the second quarter, representing\nyear-over-year growth of more than 200.0%. Looking ahead, we will continue to\nintegrate AI more deeply across our business scenarios. Through continued\ntechnological innovation and ecosystem development, we remain dedicated to\nmeeting users' evolving needs and creating sustainable, long-term value for\nour shareholders.\"\n\nSecond Quarter 2026 Financial Review\n\nRevenue from our online marketing services increased by 4.4% to\nRMB20.6 billion for the second quarter of 2026, from RMB19.8 billion for the\nsame period of 2025, primarily attributable to the increased online marketing\nspending, as we offered scenario-based marketing materials generation\ncapabilities tailored to meet the needs across industries and clients.\n\nRevenue from our live streaming business decreased by 13.5% to RMB8.7 billion\nfor the second quarter of 2026, from RMB10.0 billion for the same period of\n2025, as a result of our continuous efforts to develop a rich and healthy live\nstreaming ecosystem and diverse high-quality content.\n\nRevenue from our other services increased by 18.5% to RMB6.2 billion for the\nsecond quarter of 2026, from RMB5.2 billion for the same period of 2025,\nprimarily due to the growth of our Kling AI business. The growth of Kling AI\nbusiness was primarily attributable to our advanced AI technology and\nexceptional product performance.\n\nOther Key Financial Information for the Second Quarter of 2026\n\nOperating profit was RMB3.8 billion, compared to RMB5.3 billion for the same\nperiod of 2025.\n\nAdjusted EBITDA((3)) was RMB7.1 billion, compared to RMB7.7 billion for the\nsame period of 2025.\n\nTotal available funds((4)) reached RMB121.3 billion as of June 30, 2026.\n\nNotes:\n\n(1) We define \"adjusted net profit\" as profit for the period adjusted by\nshare-based compensation expenses and net fair value changes on investments.\n\n(2) Unallocated items, which consist of share-based compensation expenses,\nother income, and other gains, net, are not included.\n\n(3) We define \"adjusted EBITDA\" as adjusted net profit for the period adjusted\nby income tax expenses, depreciation of property and equipment, depreciation\nof right-of-use assets, amortization of intangible assets, and finance\nexpenses, net.\n\n(4) Total available funds which we considered in cash management included but\nnot limited to cash and cash equivalents, time deposits, financial assets and\nrestricted cash. Financial assets mainly included wealth management products\nand others.\n\nBusiness Review\n\nIn the second quarter of 2026, amid a complex macroeconomic environment and\nindustry competition, we remained committed to our long-term vision and\nstrategic AI investments, achieving high-quality growth. In the second quarter\nof 2026, the average DAUs on the Kuaishou App reached 412.3 million. Total\nrevenues increased by 1.4% year-over-year to RMB35.5 billion. Revenues from\nour core commercial business, including online marketing services and other\nservices, primarily e-commerce and Kling AI (可靈AI), increased by 7.4%\nyear-over-year. Adjusted net profit reached RMB3.9 billion, with an adjusted\nnet margin of 11.0%. Overall profitability remained stable, further\ndemonstrating the resilience of our business operations.\n\nAI business\n\nIn the second quarter of 2026, Kling AI continued to advance its vision of\n\"empowering everyone to craft captivating stories with AI\". Through\nbreakthroughs in advanced model capabilities, upgrades to professional product\nfeatures, and the expansion of a globalized creative ecosystem, Kling AI\nfurther reinforced its global leadership among multimodal large video\ngeneration models.\n\nAt the model and product level, Kling AI officially rolled out the native 4K\nvideo output feature in the Kling AI 3.0 model series. As the industry's first\nvideo generation model supporting native 4K output, this upgrade enables\none-click cinema-grade 4K video generation. Designed for professional clients\nacross the film, television and advertising industries, it directly delivers\nhigh-resolution visuals without the need for complex post-production,\nachieving industrial-grade cinematic visual effects. Concurrently, Kling AI\nreleased the Kling 3.0 Turbo model, which maintains stable, high-quality\ndynamic output and precise audio-visual synchronization, while significantly\nimproving creative efficiency and reducing production costs. In addition,\nKling MCP (Model Context Protocol) and Kling CLI (Command Line Interface) were\nofficially launched, enabling AI agents to orchestrate Kling AI for batch\ncontent creation. These features further expanded Kling AI's applications in\nworkflow automation and intelligent orchestration scenarios.\n\nKling AI continues to empower professional content creation through its\nintegrated video creation capabilities, with its technological innovations and\ncreative achievements earning broad industry recognition. At the 2026 Cannes\nLions International Festival of Creativity (2026戛納國際創意節), two\nadvertising videos generated by Kling AI won one Silver Lion and two Bronze\nLion Awards, demonstrating recognition of Kling AI's creative capabilities by\none of the world's premier creative awards programs. At the 2026 Beijing\nInternational Film Festival (2026北京國際電影節) , multiple works\ncreated with Kling AI including Paper Smartphone (紙手機) were nominated\nfor the AIGC Section. Stroke of Genius (神•筆) with Liu Cixin serving as\nliterary supervisor, was recognized as the \"Annual Featured Work in Short\nPlay/Micro-Short Play\" in the Short Video Section. These achievements fully\ndemonstrate Kling AI's strength in empowering professional filmmaking.\n\nDriven by breakthroughs in model capabilities, continuous product enhancements\nand deeper penetration across application scenarios, Kling AI's\ncommercialization maintained strong growth momentum. In the second quarter of\n2026, Kling AI generated revenue of over RMB850 million, representing\nyear-over-year growth of more than 200.0%, and continued to lead the\ncommercialization of AI video generation globally.\n\nIn the second quarter of 2026, we continued to make solid progress in the\nresearch and application of our general-purpose large models. We released\nKeye-VL-2.0-30B-A3B, an upgraded version of our multimodal large model. The\nmodel successfully enables deep perception across 256K ultra-long context,\nwhile delivering nearly lossless reasoning capabilities for long-video\ntemporal understanding. We introduced AgentX, a self-evolving AI agent for\nindustrial recommendation systems. It enables recommendation systems to\nautonomously drive recommendation model and strategy design, evaluate\nperformance and accumulate insights, significantly boosting the iteration\nefficiency of recommendation algorithms.\n\nAs part of our large model technology applications, we developed agent\ncapabilities for scenario-based marketing materials generation in online\nmarketing service scenarios. By offering tailored marketing materials\ngeneration capabilities to meet the needs across industries and clients, we\nachieved over 70% year-over-year growth in spending on AIGC short video\nmarketing materials in the second quarter of 2026. We continued to extend our\ngenerative recommendation and intelligent bidding large models to a broader\nrange of scenarios, including live streaming, search, and pan-shelf-based\ne-commerce, improving the effectiveness of marketing content recommendations,\nand unlocking marketing budgets from our clients. In the second quarter of\n2026, in terms of organizational efficiency enhancement and empowerment,\nKuaishou's proprietary general-purpose agent product, MyFlicker, has\nsuccessfully integrated skills across key internal systems and is now widely\nadopted by our employees. In June 2026, over 92.0% of Kuaishou employees were\nactively using our in-house AI agent products, with the ratio of AI-generated\ncode hitting 60.0% within our R&D team. Meanwhile, Kuaishou Vanchin\n(快手萬擎), our enterprise-grade large model service and development\nplatform, integrates high-performance model inference, cost-efficient model\ncustomization and fully managed services. Vanchin not only supports Kuaishou's\ninternal AI application scenarios but also provides large model infrastructure\nservices to numerous external enterprise clients.\n\nUser and content ecosystem\n\nIn the second quarter of 2026, average DAUs on the Kuaishou App reached 412.3\nmillion, and average MAUs reached 797.3 million. In terms of new user\nacquisition, we leveraged AI-powered smart placement to improve user\nacquisition efficiency while enhancing overall retention among new and\nreactivated users. We consistently refined our traffic allocation system to\nbetter safeguard the experience of our highly active core users. We continued\nto refine our social features. The number of users with mutual followers\nengaging in private messaging increased by more than 15.0% year-over-year in\nthe second quarter of 2026. We also focused on optimizing Kuaishou App's basic\nfeatures, comprehensively elevating the user experience through systematic\nimprovements to product features, video playback smoothness and intelligent\ninteraction.\n\nWe firmly believe in the power of community and continue to enhance the\ndifferentiated, high-quality content ecosystem that highlights Kuaishou's\ncommunity-centric core. During June and July 2026, riding the wave of the\nWorld Cup, we launched our native IP the Kuaishou World Cup Fans Trophy\n(快手鐵力神杯). Beyond covering trending topics and news, we introduced\na series of original activities, including the Kuaishou X.Y.Style FC\n(快手象牙山足球大賽), Dream Chasers Youth Football Tournament\n(逐夢少年足球賽). Through trending topic operations, engaging\ninteractions, and community-wide content co-creation, we built a new sports\nhub where every user on Kuaishou platform could participate, engage, and share\ntheir passion. During the campaign period, Content related to these events\ngenerated 68.2 billion impressions on the Kuaishou App, while livestreams of\nthese initiatives garnered nearly 360 million viewers.\n\nWe have deepened our innovative copyright cooperation mechanisms, utilizing a\njoint-operation model to deliver higher-value content consumption for our\nusers. We leveraged e-commerce live streaming to introduce live broadcasting\nrights for the 2026 CBA season. Furthermore, we introduced the ticketed\nlive-streaming model to online music performances. In April 2026, we hosted\nthe TOP (TOP登陸少年組合) concert, generating more than RMB10 million\nin sales from this single event, realizing a synergy between content and\ncommercialization. Furthermore, this model has driven grassroots sports\nevents, establishing a notable regional scale, especially across Northwest\nChina.\n\nOnline marketing services\n\nIn the second quarter of 2026, revenue from online marketing services reached\nRMB20.6 billion, representing a year-over-year increase of 4.4%. Our\nnon-e-commerce marketing services continued to expand across the content\nconsumption, lifestyle services and AI application sectors. Empowered by our\nomni-domain traffic synergy strategy and dedicated programs for brand\nmerchants, our e-commerce marketing services demonstrated resilience. At the\nsame time, by leveraging AI technologies, we further deepened the application\nof AI across the full online marketing services workflow.\n\nDuring the second quarter of 2026, the content consumption, lifestyle services\nand AI application sectors continued to drive year-on-year growth in our\nnon-e-commerce marketing services revenue. In the content consumption sector,\nAI reduced content production costs and lowered barriers to content creation,\ndriving rapid growth in the supply of short play content, and catering to\nincreasingly diverse user preferences. This further enriched the platform's\ncontent ecosystem and boosted related marketing demand. As of June 2026, the\nsupply of short plays on Kuaishou platform, including both live-action and\nAI-generated short plays, increased by more than fivefold compared with\nJanuary 2026. In the second quarter of 2026, the total spending from online\nmarketing services driven by short plays increased by more than 100.0%\nyear-over-year. In the lifestyle services sector, we continued to deepen our\npresence across sub-verticals, such as comprehensive services and local\nservices, while exploring incremental growth opportunities across these areas.\nMeanwhile, by optimizing deep conversion capabilities, enhancing our\nfull-stack lead-driven marketing solutions, and launching the user exploration\nAI agent, we enabled our clients to more effectively identify high-intent\nusers, improving lead quality and subsequent conversion efficiency. In the AI\napplication sector, we worked closely with our clients to better align\nadvertising placement and in-app conversion, helping them improve user\nretention and conversion performance. These efforts further strengthened our\ncompetitiveness in capturing advertising spending from AI application clients.\n\nFor e-commerce marketing services, in the second quarter of 2026, we\nstrengthened omni-domain traffic synergy across our e-commerce and online\nmarketing businesses to improve the efficiency of matching merchants with\nrelevant traffic. We conducted more granular merchant segmentation and\nimplemented tiered operations, tailoring differentiated product strategies to\naddress merchants' core needs across different segments. Meanwhile, we\nintervened at the supply level of marketing materials by actively taking\ngovernance measures, including incentivizing first-launch content and\nincreasing recommendation diversity. These initiatives effectively optimized\nthe content mix for e-commerce marketing materials, enabling high-quality\ncontent to reach target traffic more efficiently, while further optimizing our\nlong-term commercialization ecosystem. Amid continued macro consumption and\nmerchant operational challenges, we remained committed to providing traffic\nsupport to high-quality merchants. The T2000 brand initiative\n(T2000品牌專項) launched in the fourth quarter of 2025 has delivered\npromising initial results. Marketing spend by T2000 brand merchants outpaced\nthat of our broader e-commerce marketing, and its contribution to online\nmarketing services revenue continued to increase in the second quarter of\n2026. At the product level of e-commerce marketing services, our Net\nTransaction ROI (淨成交ROI) product continued to evolve. By enhancing\nomni-scenario transaction bidding capabilities and refining bidding mechanisms\nand model strategies, its client penetration rate increased from 45.0% in the\nfirst quarter of 2026 to 55.0% in the second quarter of 2026, effectively\nhelping merchants reduce product return rates.\n\nIn the second quarter of 2026, we continued to optimize the applications of AI\nacross industry-specific scenarios, further enhancing clients' marketing\nplacement efficiency and expanding our capacity to attract incremental\nmarketing budgets across industries. In content consumption scenarios, through\ncontent understanding, user matching, smart placement and monetization\nstrategy optimization, AI enabled high-quality content to reach potential\nusers more efficiently. In lifestyle service scenarios, AI capabilities were\nprimarily applied across areas including marketing materials generation,\ndigital human live streaming, conversational business operations, user intent\nidentification and deep conversion prediction, helping merchants reduce the\ncosts associated with content creation, marketing placement operations and\nmanual customer service.\n\nE-commerce\n\nIn the second quarter of 2026, we further advanced our e-commerce strategy by\nfocusing on three key areas: growing our paying user base, expanding supply,\nand deepening the integration of e-commerce and commercialization traffic. We\nprioritized optimizing our merchant ecosystem and merchant mix, strengthening\nthe acquisition and development of brands and new merchants, and fostering\ngreater synergies between e-commerce and e-commerce marketing. During the\nsecond quarter of 2026, we focused on increasing the number of high-quality\nusers, while the number of active paying users in our e-commerce business\nremained largely stable quarter-over-quarter. With users' omni-domain\nconsumption habits continuing to develop, we strengthened our private-domain\nadvantages, meanwhile, by aligning traffic across diverse scenarios, we\nenabled content-driven product recommendation, shelf-based conversion and\nstore repurchases to increasingly reinforce one another, creating a positive\ngrowth cycle. In the second quarter of 2026, we further enhanced\ncross-scenario synergies and optimized subsidy efficiency, driving balanced\ndevelopment across content-based scenarios and pan-shelf-based scenarios.\n\nOn the supply side, in the second quarter of 2026, we continued to onboard new\nmerchants and advance brand expansion. Through initiatives focused on cost\nreduction, efficiency improvement, growth incentives, product empowerment and\noperational support, we consistently supported the growth of new merchants and\nsmall and medium-sized merchants, further improving our merchant ecosystem and\nmix. We launched an upgraded version of our Starlight Initiative\n(星耀計劃), offering tiered support programs for different merchant\nsegments, including brand merchants, large merchants, industrial zone\nmerchants, and small and medium-sized merchants, to help more merchants scale\ntheir businesses more rapidly. Supported by these initiatives, the number of\nnewly onboarded merchants increased year-over-year and rose nearly 10.0%\nquarter-over-quarter in the second quarter of 2026. The number of new\nmerchants achieving scaled growth in their second month after onboarding\nincreased by nearly 30.0% year-over-year, reflecting continued improvements in\nthe quality of growth among new merchants. On the brand merchant side,\nself-operated GMV from T2000 brands maintained strong year-over-year growth\nwith contribution to overall GMV increased steadily. Meanwhile, marketing\nspend from brand merchants grew rapidly year-over-year, further enhancing\ntheir contribution to both overall e-commerce GMV and online marketing\nrevenue.\n\nIn the second quarter of 2026, we continued to improve our KOL ecosystem and\nstructure, enhancing the quality of supply across content-based scenarios. We\ndeepened our collaborations with top-tier KOLs, increased support for mid-tier\nKOLs in verticals where Kuaishou has competitive advantages, such as Three\nRural (三農) and anime, and improved the consistency of existing KOLs'\nperformance, reinforcing our e-commerce content fundamentals. By integrating\nour outstanding KOL resources with distinctive product offerings nationwide,\nwe deepened our penetration in industrial zones across China and launched\ndifferentiated content marketing initiatives, including product origins\ntracing livestreaming. These efforts strengthened the synergy between content\nand supply, empowered KOLs and improved merchants' conversion efficiency.\nMeanwhile, we continued to expand our KOL base through multiple channels,\nincluding in-platform incubation, partnerships with talent agencies and\nexternal recruitment. To boost KOL streaming frequency, we continuously\nrefined our incentive policies. In the second quarter of 2026, the number of\nstreamers hosting live sessions with over 10,000 followers increased\nyear-over-year, while KOL streaming frequency continued to increase steadily.\nRegarding distribution pool development, we leveraged AI technologies to\nenhance our underlying product capabilities, creating a more targeted\ndistribution pool system, further fostering the vibrancy of our distribution\necosystem. In the second quarter of 2026, the penetration of active KOLs\nparticipating in distribution continued to increase year-over-year, and the\nnumber of merchant-KOL matches in the distribution pool increased by over\n20.0% year-over-year.\n\nIn the second quarter of 2026, we continued to optimize AI capabilities across\nour e-commerce scenarios throughout the full lifecycle of merchants, enabling\nmerchants to reduce costs, improve efficiency and adopt intelligent business\noperations. These initiatives validated the feasibility of AI evolving from a\nproductivity-enhancing tool into a comprehensive solution supporting business\nexecution. In the first half of 2026, more than 850,000 merchants utilized our\nfree AI-powered business operation tools across a wide range of scenarios,\nincluding product selection and listing, marketing materials generation,\nbusiness analysis, smart placement and AI-powered customer service. These AI\ntools provided merchants with end-to-end operational support and capability\nenhancements.\n\nLive streaming\n\nIn the second quarter of 2026, live streaming revenue reached RMB8.7 billion.\nWe focused on the healthy development of our supply ecosystem and leveraged AI\nto empower live-streaming products, continuously driving ecosystem quality\nenhancements and product innovation. On the supply side, we launched the\nConfluence Initiative (百川計劃), through which we provided streamer\nacquisition incentives, early-stage growth support, and healthy ecosystem\ngovernance, to steadily expand the supply of new streamers from talent\nagencies, and further improve streamers' efficiency in gaining initial\ntraction. Meanwhile, we strengthened independent streamer operations, focusing\non identifying and nurturing high-value independent streamers, thereby\nsolidifying our live streaming supply foundation through refined operations.\nMoreover, we encouraged top-tier streamers to expand into group live-streaming\ncontent formats, leveraging their traffic and influence to enrich the supply\nof high-quality live-streaming content.\n\nOn the product and technology front, AI capabilities further empowered\nlive-streaming rooms. Powered by Kling AI's video generation capabilities, AI\ngifts with customizable special effects continued to evolve, offering a wider\nvariety of gift formats and generation capabilities and further enhancing\nusers' willingness to pay. In the second quarter of 2026, AI gifts sent by\nusers surpassed 6 million in total. AI-driven content understanding\ncapabilities continued to optimize our live streaming recommendation\nstrategies, enabling more precise matching between streamers and users and\nsupporting the expansion of our paying user base. In addition, intelligent\nlive-streaming gift recommendation and ranking features based on real-time\nmultimodal signals effectively improved users' payment experience and\nefficiency. AI tools such as AI Interaction Assistants (AI互動助手) and\nDigital Avatars Solution (數字分身服務) were further refined and\nupgraded, continuously improving streamers' service efficiency.\n\nOverseas\n\nIn the second quarter of 2026, we remained committed to our high-value growth\nstrategy, further strengthening the foundation of our overseas business in\nprofitability, long-term operational capabilities and localized efforts. In\ntraffic growth and the content ecosystem, we stayed focused on refined user\nacquisition. We enhanced our content offerings with distinctive local\ncharacteristics and expanded community-based creator networks, fostering an\nengaging community atmosphere around real-life scenarios and further deepening\ncontent consumption among core users. For online marketing services,\nleveraging major events such as Festa Junina and the World Cup, we empowered\nour marketing clients to achieve rapid growth during critical windows through\nAI-driven initiatives, including in-depth ROI analysis, user insights,\ninnovative product features, and industry-specific strategies. Moreover, we\nfurther unlocked the monetization potential of short plays and other\ndiversified content formats, forming a dual-engine growth model together with\nour marketing service product capabilities, while accelerating expansion into\ngrowth sectors such as e-commerce. Regarding overseas e-commerce, we continued\nto deliver solid year-over-year growth in GMV and order volume in the second\nquarter of 2026. At the same time, we drove growth in average order value\nthrough product mix optimization and high-quality supply, while maintaining\nsolid operational efficiency and profit-generating ability.\n\nCorporate social responsibility\n\nKuaishou remains firmly committed to its mission of \"connecting good faith\nwith technology and creating long-term values\", continuously driving the deep\nintegration of technological innovation and industrial development to foster\nhigh-quality employment. According to the 2025 Kuaishou Corporate Social\nResponsibility Report published on June 2, 2026, by the end of 2025, the\nKuaishou platform had cumulatively created 48.6 million job opportunities and\nspawned 189 new professions in total. Among these, 15 new roles were directly\ngenerated by the advancement of AI, covering fields such as AIGC application\nspecialists, prompt engineers, AI directors, and AI trainers.\n\nBusiness Outlook\n\nIn the first half of 2026, we maintained our strategic focus on AI and\ncontinued to increase our investment, delivering high-quality, resilient\ngrowth across our content and business ecosystems. Looking ahead to the second\nhalf of 2026, the Group reaffirms its strategic direction of deepening AI\ninvestment and pursuing long-term sustainable development through advanced\ntechnology and a distinctive ecosystem. However, we are cautious about the\nshort-term business outlook as the operating environment has become\nincreasingly complex and challenging. We will continue to adopt a prudent and\ndisciplined approach. We will continue to deepen AI integration across these\necosystems by advancing the capabilities of our large models across multiple\nscenarios, helping merchants and marketing clients operate more efficiently.\nWe will also continue to scale Kling AI's model capabilities and expand its\nadoption across professional creative scenarios, unlocking additional\ncommercialization opportunities. We remain dedicated to meeting users'\nevolving needs and creating sustainable, long-term value for Shareholders.\n\nAbout Kuaishou\n\nKuaishou is a leading content community and social platform in China and\nglobally, committed to becoming the most customer-obsessed company in the\nworld. Kuaishou uses its technological backbone, powered by cutting-edge AI\ntechnology, to continuously drive innovation and product enhancements that\nenrich its service offerings and application scenarios, creating exceptional\ncustomer value. Through short videos and live streams on Kuaishou's platform,\nusers can share their lives, discover goods and services they need and\nshowcase their talent. By partnering closely with content creators and\nbusinesses, Kuaishou provides technologies, products, and services that cater\nto diverse user needs across a broad spectrum of entertainment, online\nmarketing services, e-commerce, local services, gaming, and much more.\n\nForward-Looking Statements\n\nCertain statements included in this press release, other than statements of\nhistorical fact, are forward-looking statements. Forward-looking statements\ngenerally can be identified by the use of forward-looking terminology such as\n\"may\", \"might\", \"can\", \"could\", \"will\", \"would\", \"anticipate\", \"believe\",\n\"continue\", \"estimate\", \"expect\", \"forecast\", \"intend\", \"plan\", \"seek\", or\n\"timetable\". These forward-looking statements, which are subject to risks,\nuncertainties, and assumptions, may include our business outlook, estimates of\nfinancial performance, forecast business plans, growth strategies and\nprojections of anticipated trends in our industry. These forward-looking\nstatements are based on information currently available to the Group and are\nstated herein on the basis of the outlook at the time of this press release.\nThey are based on certain expectations, assumptions and premises, many of\nwhich are subjective or beyond our control. These forward-looking statements\nmay prove to be incorrect and may not be realized in the future. Underlying\nthese forward-looking statements are a large number of risks and\nuncertainties. In light of the risks and uncertainties, the inclusion of\nforward-looking statements in this press release should not be regarded as\nrepresentations by the Board or the Company that the plans and objectives will\nbe achieved, and investors should not place undue reliance on such statements.\nExcept as required by law, we are not obligated, and we undertake no\nobligation, to release publicly any revisions to these forward-looking\nstatements that might reflect events or circumstances occurring after the date\nof this press release or those that might reflect the occurrence of\nunanticipated events.\n\nFor investor and media inquiries, please contact\n\nKuaishou Technology\nInvestor Relations\nEmail: ir@kuaishou.com\n\n \n\n \n\n \n\n CONDENSED CONSOLIDATED INCOME STATEMENT \n \n Unaudited Unaudited \n Three Months Ended Six Months Ended \n June 30, March 31, June 30, June 30, June 30, \n 2026 2026 2025 2026 2025 \n RMB'Million RMB'Million RMB'Million RMB'Million RMB'Million \n Revenues 35,535 33,716 35,046 69,251 67,654 \n Cost of revenues (17,207) (16,467) (15,542) (33,674) (30,358) \n Gross profit 18,328 17,249 19,504 35,577 37,296 \n Selling and marketing expenses (9,922) (10,333) (10,503) (20,255) (20,400) \n Administrative expenses (895) (766) (897) (1,661) (1,725) \n Research and development expenses (4,581) (3,621) (3,400) (8,202) (6,698) \n Other income 33 245 16 278 69 \n Other gains, net 794 821 569 1,615 1,006 \n Operating profit 3,757 3,595 5,289 7,352 9,548 \n Finance expenses, net (258) (173) (54) (431) (78) \n Share of losses of investments (2) (13) (12) (15) (10) \n accounted for using the equity method \n Profit before income tax 3,497 3,409 5,223 6,906 9,460 \n Income tax expenses (345) (504) (301) (849) (559) \n Profit for the period 3,152 2,905 4,922 6,057 8,901 \n Attributable to: \n — Equity holders of the Company 3,146 2,903 4,922 6,049 8,900 \n — Non-controlling interests 6 2 - 8 1 \n 3,152 2,905 4,922 6,057 8,901 \n\n \n\n \n\n \n\n CONDENSED CONSOLIDATED BALANCE SHEET \n \n Unaudited Audited \n As of June 30, As of December 31, 2025 \n 2026 \n RMB'Million RMB'Million \n ASSETS \n Non-current assets \n Property and equipment 34,126 22,869 \n Right-of-use assets 10,302 8,545 \n Intangible assets 968 986 \n Investments accounted for using the equity method 130 149 \n Financial assets at fair value through profit or loss 29,618 23,747 \n Derivative financial instruments - 353 \n Other financial assets at amortized cost - 35 \n Deferred tax assets 6,529 5,585 \n Long-term time deposits 14,291 22,015 \n Other non-current assets 4,950 2,671 \n 100,914 86,955 \n \n Current assets \n Trade receivables 7,804 8,127 \n Prepayments, other receivables and other current assets 9,837 7,028 \n Financial assets at fair value through profit or loss 56,353 42,323 \n Derivative financial instruments 584 1 \n Other financial assets at amortized cost - 9 \n Short-term time deposits 12,358 8,630 \n Restricted cash 220 251 \n Cash and cash equivalents 11,696 11,180 \n 98,852 77,549 \n \n Total assets 199,766 164,504 \n\n \n\n \n\n \n\n CONDENSED CONSOLIDATED BALANCE SHEET \n \n Unaudited Audited \n As of June 30, As of December 31, 2025 \n 2026 \n RMB'Million RMB'Million \n EQUITY AND LIABILITIES \n Equity attributable to equity holders of the Company \n Share capital - - \n Share premium 261,530 265,628 \n Treasury shares (95) (602) \n Other reserves 39,096 38,873 \n Accumulated losses (218,292) (224,341) \n 82,239 79,558 \n Non-controlling interests 34 26 \n \n Total equity 82,273 79,584 \n \n \n Non-current liabilities \n Borrowings 14,792 11,098 \n Derivative financial instruments 520 30 \n Lease liabilities 7,920 5,977 \n Deferred tax liabilities 169 241 \n Other non-current liabilities 115 39 \n 23,516 17,385 \n \n Current liabilities \n Accounts payables 28,130 27,209 \n Other payables and accruals 41,620 29,160 \n Dividend payable 2,584 - \n Advances from customers 4,842 4,848 \n Borrowings 12,570 1,968 \n Income tax liabilities 479 388 \n Lease liabilities 3,752 3,962 \n 93,977 67,535 \n \n Total liabilities 117,493 84,920 \n \n Total equity and liabilities 199,766 164,504 \n\n \n\n \n\n \n\n Financial Information by Segment \n \n Unaudited Three Months Ended \n June 30, 2026 March 31, 2026 June 30, 2025 \n Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total \n items items items \n RMB'Million RMB'Million RMB'M \n illio \n n \n Revenues 34,356 1,179 - 35,535 32,554 1,162 - 33,716 33,746 1,300 - 35,046 \n Operating profit/(loss) 3,733 (25) 49 3,757 3,093 (31) 533 3,595 5,401 19 (131) 5,289 \n \n Unaudited Six Months Ended \n June 30, 2026 June 30, 2025 \n Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total \n items items \n RMB'Million RMB'Milli \n on \n Revenues 66,910 2,341 - 69,251 65,039 2,615 - 67,654 \n Operating profit/(loss) 6,826 (56) 582 7,352 9,746 47 (245) 9,548 \n \n\n \n\n \n\n \n\n Reconciliation of Non-IFRS Accounting Standards Measures to the Nearest IFRS Accounting \n Standards Measures \n \n Unaudited Unaudited \n Three Months Ended Six Months Ended \n June 30, March 31, June 30, June 30, June 30, \n 2026 2026 2025 2026 2025 \n RMB'Million RMB'Million RMB'Million RMB'Million RMB'Million \n \n Profit for the period 3,152 2,905 4,922 6,057 8,901 \n Adjusted for: \n Share-based compensation expenses 778 533 716 1,311 1,320 \n Net fair value changes on investments ((1)) (17) (64) (20) (81) (23) \n \n Adjusted net profit 3,913 3,374 5,618 7,287 10,198 \n \n \n Adjusted net profit 3,913 3,374 5,618 7,287 10,198 \n Adjusted for: \n Income tax expenses 345 504 301 849 559 \n Depreciation of property and 1,745 1,364 885 3,109 1,667 \n equipment \n Depreciation of right-of-use assets 845 799 831 1,644 1,599 \n Amortization of intangible assets 16 16 26 32 48 \n Finance expenses, net 258 173 54 431 78 \n \n Adjusted EBITDA 7,122 6,230 7,715 13,352 14,149 \n \n Note: \n (1) Net fair value changes on investments represents net fair value (gains)/losses on financial assets at fair value \n through profit or loss of our investments in listed and unlisted entities, net (gains)/losses on deemed disposals \n of investments and impairment provision for investments, which is unrelated to our core business and operating \n performance and subject to market fluctuations, and exclusion of which provides investors with more relevant \n and useful information to evaluate our performance. \n\n \n\n \n\n \n\nView original\ncontent:https://www.prnewswire.com/apac/news-releases/kuaishou-technology-announces-second-quarter-and-interim-2026-unaudited-financial-results-302855105.html\n\nSOURCE Kuaishou Technology\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPNAVxcf5a","title":"Kuaishou Technology Announces Second Quarter and Interim 2026 Unaudited Financial Results","author":"PR Newswire","ticker":"1024","created":"2026-08-19T09:14:24.301Z","tickers":["1024"],"exchange":"HKEX","article_body":"Kuaishou Technology Announces Second Quarter and Interim 2026 Unaudited\nFinancial Results\nPR Newswire\n\nHONG KONG, Aug. 19, 2026\n\nHONG KONG, Aug. 19, 2026 /PRNewswire/ -- Kuaishou Technology (\"Kuaishou\" or\nthe \"Company\"; HKD Counter Stock Code: 01024 / RMB Counter Stock Code: 81024),\na leading content community and social platform, today announced its unaudited\nconsolidated results for the three months and six months ended June 30, 2026.\n\nSecond Quarter 2026 Key Highlights\n* Average DAUs on Kuaishou APP were 412.3 million, representing an increase of\n0.8% from 408.9 million for the same period of 2025.\n* Average MAUs on Kuaishou APP were 797.3 million, representing an increase of\n11.5% from 714.8 million for the same period of 2025.\n* Total revenue increased by 1.4% to RMB35.5 billion from RMB35.0 billion for\nthe same period of 2025. Online marketing services and live streaming\ncontributed 58.1% and 24.5%, respectively, to the total revenue. The other\n17.4% came from other services.\n* Gross profit was RMB18.3 billion, compared to RMB19.5 billion for the same\nperiod of 2025. Gross profit margin in the second quarter of 2026 was 51.6%,\ncompared to 55.7% for the same period of 2025.\n* Profit for the period was RMB3.2 billion, compared to RMB4.9 billion for the\nsame period of 2025. Adjusted net profit((1)) was RMB3.9 billion, compared to\nRMB5.6 billion for the same period of 2025.\n* Operating profit from the domestic segment((2)) was RMB3.7 billion, compared\nto RMB5.4 billion for the same period of 2025. Operating loss from the\noverseas segment((2)) was RMB25 million, compared to operating profit of RMB19\nmillion for the same period of 2025.\nFirst Half 2026 Key Highlights\n* Average DAUs on Kuaishou APP were 412.5 million, representing an increase of\n1.0% from 408.5 million for the same period of 2025.\n* Average MAUs on Kuaishou APP were 784.5 million, representing an increase of\n10.0% from 713.3 million for the same period of 2025.\n* Total revenue increased by 2.4% to RMB69.3 billion from RMB67.7 billion for\nthe same period of 2025. Online marketing services and live streaming\ncontributed 58.2% and 24.8%, respectively, to the total revenue. The other\n17.0% came from other services.\n* Gross profit was RMB35.6 billion, compared to RMB37.3 billion for the same\nperiod of 2025. Gross profit margin was 51.4%, compared to 55.1% for the same\nperiod of 2025.\n* Profit for the period was RMB6.1 billion, compared to RMB8.9 billion for the\nsame period of 2025. Adjusted net profit((1)) was RMB7.3 billion, compared to\nRMB10.2 billion for the same period of 2025.\n* Operating profit from the domestic segment((2)) was RMB6.8 billion, compared\nto RMB9.7 billion for the same period of 2025. Operating loss from the\noverseas segment((2)) was RMB56 million, compared to operating profit of RMB47\nmillion for the same period of 2025.\n* During the six months ended June 30, 2026 and up to August 19, 2026, the\nCompany repurchased a total of 43,302,200 shares on the Hong Kong Stock\nExchange at an aggregate consideration of HKD1.97 billion.\nMr. Cheng Yixiao, Co-founder, Chairman, and Chief Executive Officer of\nKuaishou, commented, \"In the second quarter of 2026, we continued to unlock\nthe strategic value of AI and delivered solid financial and operating\nperformance amid a complex macroeconomic environment. We accelerated the\nintegration of AI across our content ecosystem, online marketing, e-commerce\nand internal organizational enablement, enhancing both user experience and\ncommercial efficiency. During the quarter, the average DAUs on the Kuaishou\nApp reached 412.3 million and total revenues reached RMB35.5 billion. Even as\nwe continued to invest in AI technologies, our adjusted net profit reached\nRMB3.9 billion, with an adjusted net margin of 11.0%, and our profitability\nremained at a healthy level, further demonstrating the resilience of our\nbusiness. On the AI innovation front, we launched the Kling 3.0 Turbo model,\nreinforcing Kling AI's global leadership in video generation. Meanwhile,\ncommercialization maintained strong growth momentum, with Kling AI generating\nrevenue of over RMB850 million in the second quarter, representing\nyear-over-year growth of more than 200.0%. Looking ahead, we will continue to\nintegrate AI more deeply across our business scenarios. Through continued\ntechnological innovation and ecosystem development, we remain dedicated to\nmeeting users' evolving needs and creating sustainable, long-term value for\nour shareholders.\"\n\nSecond Quarter 2026 Financial Review\n\nRevenue from our online marketing services increased by 4.4% to\nRMB20.6 billion for the second quarter of 2026, from RMB19.8 billion for the\nsame period of 2025, primarily attributable to the increased online marketing\nspending, as we offered scenario-based marketing materials generation\ncapabilities tailored to meet the needs across industries and clients.\n\nRevenue from our live streaming business decreased by 13.5% to RMB8.7 billion\nfor the second quarter of 2026, from RMB10.0 billion for the same period of\n2025, as a result of our continuous efforts to develop a rich and healthy live\nstreaming ecosystem and diverse high-quality content.\n\nRevenue from our other services increased by 18.5% to RMB6.2 billion for the\nsecond quarter of 2026, from RMB5.2 billion for the same period of 2025,\nprimarily due to the growth of our Kling AI business. The growth of Kling AI\nbusiness was primarily attributable to our advanced AI technology and\nexceptional product performance.\n\nOther Key Financial Information for the Second Quarter of 2026\n\nOperating profit was RMB3.8 billion, compared to RMB5.3 billion for the same\nperiod of 2025.\n\nAdjusted EBITDA((3)) was RMB7.1 billion, compared to RMB7.7 billion for the\nsame period of 2025.\n\nTotal available funds((4)) reached RMB121.3 billion as of June 30, 2026.\n\nNotes:\n\n(1) We define \"adjusted net profit\" as profit for the period adjusted by\nshare-based compensation expenses and net fair value changes on investments.\n\n(2) Unallocated items, which consist of share-based compensation expenses,\nother income, and other gains, net, are not included.\n\n(3) We define \"adjusted EBITDA\" as adjusted net profit for the period adjusted\nby income tax expenses, depreciation of property and equipment, depreciation\nof right-of-use assets, amortization of intangible assets, and finance\nexpenses, net.\n\n(4) Total available funds which we considered in cash management included but\nnot limited to cash and cash equivalents, time deposits, financial assets and\nrestricted cash. Financial assets mainly included wealth management products\nand others.\n\nBusiness Review\n\nIn the second quarter of 2026, amid a complex macroeconomic environment and\nindustry competition, we remained committed to our long-term vision and\nstrategic AI investments, achieving high-quality growth. In the second quarter\nof 2026, the average DAUs on the Kuaishou App reached 412.3 million. Total\nrevenues increased by 1.4% year-over-year to RMB35.5 billion. Revenues from\nour core commercial business, including online marketing services and other\nservices, primarily e-commerce and Kling AI (可靈AI), increased by 7.4%\nyear-over-year. Adjusted net profit reached RMB3.9 billion, with an adjusted\nnet margin of 11.0%. Overall profitability remained stable, further\ndemonstrating the resilience of our business operations.\n\nAI business\n\nIn the second quarter of 2026, Kling AI continued to advance its vision of\n\"empowering everyone to craft captivating stories with AI\". Through\nbreakthroughs in advanced model capabilities, upgrades to professional product\nfeatures, and the expansion of a globalized creative ecosystem, Kling AI\nfurther reinforced its global leadership among multimodal large video\ngeneration models.\n\nAt the model and product level, Kling AI officially rolled out the native 4K\nvideo output feature in the Kling AI 3.0 model series. As the industry's first\nvideo generation model supporting native 4K output, this upgrade enables\none-click cinema-grade 4K video generation. Designed for professional clients\nacross the film, television and advertising industries, it directly delivers\nhigh-resolution visuals without the need for complex post-production,\nachieving industrial-grade cinematic visual effects. Concurrently, Kling AI\nreleased the Kling 3.0 Turbo model, which maintains stable, high-quality\ndynamic output and precise audio-visual synchronization, while significantly\nimproving creative efficiency and reducing production costs. In addition,\nKling MCP (Model Context Protocol) and Kling CLI (Command Line Interface) were\nofficially launched, enabling AI agents to orchestrate Kling AI for batch\ncontent creation. These features further expanded Kling AI's applications in\nworkflow automation and intelligent orchestration scenarios.\n\nKling AI continues to empower professional content creation through its\nintegrated video creation capabilities, with its technological innovations and\ncreative achievements earning broad industry recognition. At the 2026 Cannes\nLions International Festival of Creativity (2026戛納國際創意節), two\nadvertising videos generated by Kling AI won one Silver Lion and two Bronze\nLion Awards, demonstrating recognition of Kling AI's creative capabilities by\none of the world's premier creative awards programs. At the 2026 Beijing\nInternational Film Festival (2026北京國際電影節) , multiple works\ncreated with Kling AI including Paper Smartphone (紙手機) were nominated\nfor the AIGC Section. Stroke of Genius (神•筆) with Liu Cixin serving as\nliterary supervisor, was recognized as the \"Annual Featured Work in Short\nPlay/Micro-Short Play\" in the Short Video Section. These achievements fully\ndemonstrate Kling AI's strength in empowering professional filmmaking.\n\nDriven by breakthroughs in model capabilities, continuous product enhancements\nand deeper penetration across application scenarios, Kling AI's\ncommercialization maintained strong growth momentum. In the second quarter of\n2026, Kling AI generated revenue of over RMB850 million, representing\nyear-over-year growth of more than 200.0%, and continued to lead the\ncommercialization of AI video generation globally.\n\nIn the second quarter of 2026, we continued to make solid progress in the\nresearch and application of our general-purpose large models. We released\nKeye-VL-2.0-30B-A3B, an upgraded version of our multimodal large model. The\nmodel successfully enables deep perception across 256K ultra-long context,\nwhile delivering nearly lossless reasoning capabilities for long-video\ntemporal understanding. We introduced AgentX, a self-evolving AI agent for\nindustrial recommendation systems. It enables recommendation systems to\nautonomously drive recommendation model and strategy design, evaluate\nperformance and accumulate insights, significantly boosting the iteration\nefficiency of recommendation algorithms.\n\nAs part of our large model technology applications, we developed agent\ncapabilities for scenario-based marketing materials generation in online\nmarketing service scenarios. By offering tailored marketing materials\ngeneration capabilities to meet the needs across industries and clients, we\nachieved over 70% year-over-year growth in spending on AIGC short video\nmarketing materials in the second quarter of 2026. We continued to extend our\ngenerative recommendation and intelligent bidding large models to a broader\nrange of scenarios, including live streaming, search, and pan-shelf-based\ne-commerce, improving the effectiveness of marketing content recommendations,\nand unlocking marketing budgets from our clients. In the second quarter of\n2026, in terms of organizational efficiency enhancement and empowerment,\nKuaishou's proprietary general-purpose agent product, MyFlicker, has\nsuccessfully integrated skills across key internal systems and is now widely\nadopted by our employees. In June 2026, over 92.0% of Kuaishou employees were\nactively using our in-house AI agent products, with the ratio of AI-generated\ncode hitting 60.0% within our R&D team. Meanwhile, Kuaishou Vanchin\n(快手萬擎), our enterprise-grade large model service and development\nplatform, integrates high-performance model inference, cost-efficient model\ncustomization and fully managed services. Vanchin not only supports Kuaishou's\ninternal AI application scenarios but also provides large model infrastructure\nservices to numerous external enterprise clients.\n\nUser and content ecosystem\n\nIn the second quarter of 2026, average DAUs on the Kuaishou App reached 412.3\nmillion, and average MAUs reached 797.3 million. In terms of new user\nacquisition, we leveraged AI-powered smart placement to improve user\nacquisition efficiency while enhancing overall retention among new and\nreactivated users. We consistently refined our traffic allocation system to\nbetter safeguard the experience of our highly active core users. We continued\nto refine our social features. The number of users with mutual followers\nengaging in private messaging increased by more than 15.0% year-over-year in\nthe second quarter of 2026. We also focused on optimizing Kuaishou App's basic\nfeatures, comprehensively elevating the user experience through systematic\nimprovements to product features, video playback smoothness and intelligent\ninteraction.\n\nWe firmly believe in the power of community and continue to enhance the\ndifferentiated, high-quality content ecosystem that highlights Kuaishou's\ncommunity-centric core. During June and July 2026, riding the wave of the\nWorld Cup, we launched our native IP the Kuaishou World Cup Fans Trophy\n(快手鐵力神杯). Beyond covering trending topics and news, we introduced\na series of original activities, including the Kuaishou X.Y.Style FC\n(快手象牙山足球大賽), Dream Chasers Youth Football Tournament\n(逐夢少年足球賽). Through trending topic operations, engaging\ninteractions, and community-wide content co-creation, we built a new sports\nhub where every user on Kuaishou platform could participate, engage, and share\ntheir passion. During the campaign period, Content related to these events\ngenerated 68.2 billion impressions on the Kuaishou App, while livestreams of\nthese initiatives garnered nearly 360 million viewers.\n\nWe have deepened our innovative copyright cooperation mechanisms, utilizing a\njoint-operation model to deliver higher-value content consumption for our\nusers. We leveraged e-commerce live streaming to introduce live broadcasting\nrights for the 2026 CBA season. Furthermore, we introduced the ticketed\nlive-streaming model to online music performances. In April 2026, we hosted\nthe TOP (TOP登陸少年組合) concert, generating more than RMB10 million\nin sales from this single event, realizing a synergy between content and\ncommercialization. Furthermore, this model has driven grassroots sports\nevents, establishing a notable regional scale, especially across Northwest\nChina.\n\nOnline marketing services\n\nIn the second quarter of 2026, revenue from online marketing services reached\nRMB20.6 billion, representing a year-over-year increase of 4.4%. Our\nnon-e-commerce marketing services continued to expand across the content\nconsumption, lifestyle services and AI application sectors. Empowered by our\nomni-domain traffic synergy strategy and dedicated programs for brand\nmerchants, our e-commerce marketing services demonstrated resilience. At the\nsame time, by leveraging AI technologies, we further deepened the application\nof AI across the full online marketing services workflow.\n\nDuring the second quarter of 2026, the content consumption, lifestyle services\nand AI application sectors continued to drive year-on-year growth in our\nnon-e-commerce marketing services revenue. In the content consumption sector,\nAI reduced content production costs and lowered barriers to content creation,\ndriving rapid growth in the supply of short play content, and catering to\nincreasingly diverse user preferences. This further enriched the platform's\ncontent ecosystem and boosted related marketing demand. As of June 2026, the\nsupply of short plays on Kuaishou platform, including both live-action and\nAI-generated short plays, increased by more than fivefold compared with\nJanuary 2026. In the second quarter of 2026, the total spending from online\nmarketing services driven by short plays increased by more than 100.0%\nyear-over-year. In the lifestyle services sector, we continued to deepen our\npresence across sub-verticals, such as comprehensive services and local\nservices, while exploring incremental growth opportunities across these areas.\nMeanwhile, by optimizing deep conversion capabilities, enhancing our\nfull-stack lead-driven marketing solutions, and launching the user exploration\nAI agent, we enabled our clients to more effectively identify high-intent\nusers, improving lead quality and subsequent conversion efficiency. In the AI\napplication sector, we worked closely with our clients to better align\nadvertising placement and in-app conversion, helping them improve user\nretention and conversion performance. These efforts further strengthened our\ncompetitiveness in capturing advertising spending from AI application clients.\n\nFor e-commerce marketing services, in the second quarter of 2026, we\nstrengthened omni-domain traffic synergy across our e-commerce and online\nmarketing businesses to improve the efficiency of matching merchants with\nrelevant traffic. We conducted more granular merchant segmentation and\nimplemented tiered operations, tailoring differentiated product strategies to\naddress merchants' core needs across different segments. Meanwhile, we\nintervened at the supply level of marketing materials by actively taking\ngovernance measures, including incentivizing first-launch content and\nincreasing recommendation diversity. These initiatives effectively optimized\nthe content mix for e-commerce marketing materials, enabling high-quality\ncontent to reach target traffic more efficiently, while further optimizing our\nlong-term commercialization ecosystem. Amid continued macro consumption and\nmerchant operational challenges, we remained committed to providing traffic\nsupport to high-quality merchants. The T2000 brand initiative\n(T2000品牌專項) launched in the fourth quarter of 2025 has delivered\npromising initial results. Marketing spend by T2000 brand merchants outpaced\nthat of our broader e-commerce marketing, and its contribution to online\nmarketing services revenue continued to increase in the second quarter of\n2026. At the product level of e-commerce marketing services, our Net\nTransaction ROI (淨成交ROI) product continued to evolve. By enhancing\nomni-scenario transaction bidding capabilities and refining bidding mechanisms\nand model strategies, its client penetration rate increased from 45.0% in the\nfirst quarter of 2026 to 55.0% in the second quarter of 2026, effectively\nhelping merchants reduce product return rates.\n\nIn the second quarter of 2026, we continued to optimize the applications of AI\nacross industry-specific scenarios, further enhancing clients' marketing\nplacement efficiency and expanding our capacity to attract incremental\nmarketing budgets across industries. In content consumption scenarios, through\ncontent understanding, user matching, smart placement and monetization\nstrategy optimization, AI enabled high-quality content to reach potential\nusers more efficiently. In lifestyle service scenarios, AI capabilities were\nprimarily applied across areas including marketing materials generation,\ndigital human live streaming, conversational business operations, user intent\nidentification and deep conversion prediction, helping merchants reduce the\ncosts associated with content creation, marketing placement operations and\nmanual customer service.\n\nE-commerce\n\nIn the second quarter of 2026, we further advanced our e-commerce strategy by\nfocusing on three key areas: growing our paying user base, expanding supply,\nand deepening the integration of e-commerce and commercialization traffic. We\nprioritized optimizing our merchant ecosystem and merchant mix, strengthening\nthe acquisition and development of brands and new merchants, and fostering\ngreater synergies between e-commerce and e-commerce marketing. During the\nsecond quarter of 2026, we focused on increasing the number of high-quality\nusers, while the number of active paying users in our e-commerce business\nremained largely stable quarter-over-quarter. With users' omni-domain\nconsumption habits continuing to develop, we strengthened our private-domain\nadvantages, meanwhile, by aligning traffic across diverse scenarios, we\nenabled content-driven product recommendation, shelf-based conversion and\nstore repurchases to increasingly reinforce one another, creating a positive\ngrowth cycle. In the second quarter of 2026, we further enhanced\ncross-scenario synergies and optimized subsidy efficiency, driving balanced\ndevelopment across content-based scenarios and pan-shelf-based scenarios.\n\nOn the supply side, in the second quarter of 2026, we continued to onboard new\nmerchants and advance brand expansion. Through initiatives focused on cost\nreduction, efficiency improvement, growth incentives, product empowerment and\noperational support, we consistently supported the growth of new merchants and\nsmall and medium-sized merchants, further improving our merchant ecosystem and\nmix. We launched an upgraded version of our Starlight Initiative\n(星耀計劃), offering tiered support programs for different merchant\nsegments, including brand merchants, large merchants, industrial zone\nmerchants, and small and medium-sized merchants, to help more merchants scale\ntheir businesses more rapidly. Supported by these initiatives, the number of\nnewly onboarded merchants increased year-over-year and rose nearly 10.0%\nquarter-over-quarter in the second quarter of 2026. The number of new\nmerchants achieving scaled growth in their second month after onboarding\nincreased by nearly 30.0% year-over-year, reflecting continued improvements in\nthe quality of growth among new merchants. On the brand merchant side,\nself-operated GMV from T2000 brands maintained strong year-over-year growth\nwith contribution to overall GMV increased steadily. Meanwhile, marketing\nspend from brand merchants grew rapidly year-over-year, further enhancing\ntheir contribution to both overall e-commerce GMV and online marketing\nrevenue.\n\nIn the second quarter of 2026, we continued to improve our KOL ecosystem and\nstructure, enhancing the quality of supply across content-based scenarios. We\ndeepened our collaborations with top-tier KOLs, increased support for mid-tier\nKOLs in verticals where Kuaishou has competitive advantages, such as Three\nRural (三農) and anime, and improved the consistency of existing KOLs'\nperformance, reinforcing our e-commerce content fundamentals. By integrating\nour outstanding KOL resources with distinctive product offerings nationwide,\nwe deepened our penetration in industrial zones across China and launched\ndifferentiated content marketing initiatives, including product origins\ntracing livestreaming. These efforts strengthened the synergy between content\nand supply, empowered KOLs and improved merchants' conversion efficiency.\nMeanwhile, we continued to expand our KOL base through multiple channels,\nincluding in-platform incubation, partnerships with talent agencies and\nexternal recruitment. To boost KOL streaming frequency, we continuously\nrefined our incentive policies. In the second quarter of 2026, the number of\nstreamers hosting live sessions with over 10,000 followers increased\nyear-over-year, while KOL streaming frequency continued to increase steadily.\nRegarding distribution pool development, we leveraged AI technologies to\nenhance our underlying product capabilities, creating a more targeted\ndistribution pool system, further fostering the vibrancy of our distribution\necosystem. In the second quarter of 2026, the penetration of active KOLs\nparticipating in distribution continued to increase year-over-year, and the\nnumber of merchant-KOL matches in the distribution pool increased by over\n20.0% year-over-year.\n\nIn the second quarter of 2026, we continued to optimize AI capabilities across\nour e-commerce scenarios throughout the full lifecycle of merchants, enabling\nmerchants to reduce costs, improve efficiency and adopt intelligent business\noperations. These initiatives validated the feasibility of AI evolving from a\nproductivity-enhancing tool into a comprehensive solution supporting business\nexecution. In the first half of 2026, more than 850,000 merchants utilized our\nfree AI-powered business operation tools across a wide range of scenarios,\nincluding product selection and listing, marketing materials generation,\nbusiness analysis, smart placement and AI-powered customer service. These AI\ntools provided merchants with end-to-end operational support and capability\nenhancements.\n\nLive streaming\n\nIn the second quarter of 2026, live streaming revenue reached RMB8.7 billion.\nWe focused on the healthy development of our supply ecosystem and leveraged AI\nto empower live-streaming products, continuously driving ecosystem quality\nenhancements and product innovation. On the supply side, we launched the\nConfluence Initiative (百川計劃), through which we provided streamer\nacquisition incentives, early-stage growth support, and healthy ecosystem\ngovernance, to steadily expand the supply of new streamers from talent\nagencies, and further improve streamers' efficiency in gaining initial\ntraction. Meanwhile, we strengthened independent streamer operations, focusing\non identifying and nurturing high-value independent streamers, thereby\nsolidifying our live streaming supply foundation through refined operations.\nMoreover, we encouraged top-tier streamers to expand into group live-streaming\ncontent formats, leveraging their traffic and influence to enrich the supply\nof high-quality live-streaming content.\n\nOn the product and technology front, AI capabilities further empowered\nlive-streaming rooms. Powered by Kling AI's video generation capabilities, AI\ngifts with customizable special effects continued to evolve, offering a wider\nvariety of gift formats and generation capabilities and further enhancing\nusers' willingness to pay. In the second quarter of 2026, AI gifts sent by\nusers surpassed 6 million in total. AI-driven content understanding\ncapabilities continued to optimize our live streaming recommendation\nstrategies, enabling more precise matching between streamers and users and\nsupporting the expansion of our paying user base. In addition, intelligent\nlive-streaming gift recommendation and ranking features based on real-time\nmultimodal signals effectively improved users' payment experience and\nefficiency. AI tools such as AI Interaction Assistants (AI互動助手) and\nDigital Avatars Solution (數字分身服務) were further refined and\nupgraded, continuously improving streamers' service efficiency.\n\nOverseas\n\nIn the second quarter of 2026, we remained committed to our high-value growth\nstrategy, further strengthening the foundation of our overseas business in\nprofitability, long-term operational capabilities and localized efforts. In\ntraffic growth and the content ecosystem, we stayed focused on refined user\nacquisition. We enhanced our content offerings with distinctive local\ncharacteristics and expanded community-based creator networks, fostering an\nengaging community atmosphere around real-life scenarios and further deepening\ncontent consumption among core users. For online marketing services,\nleveraging major events such as Festa Junina and the World Cup, we empowered\nour marketing clients to achieve rapid growth during critical windows through\nAI-driven initiatives, including in-depth ROI analysis, user insights,\ninnovative product features, and industry-specific strategies. Moreover, we\nfurther unlocked the monetization potential of short plays and other\ndiversified content formats, forming a dual-engine growth model together with\nour marketing service product capabilities, while accelerating expansion into\ngrowth sectors such as e-commerce. Regarding overseas e-commerce, we continued\nto deliver solid year-over-year growth in GMV and order volume in the second\nquarter of 2026. At the same time, we drove growth in average order value\nthrough product mix optimization and high-quality supply, while maintaining\nsolid operational efficiency and profit-generating ability.\n\nCorporate social responsibility\n\nKuaishou remains firmly committed to its mission of \"connecting good faith\nwith technology and creating long-term values\", continuously driving the deep\nintegration of technological innovation and industrial development to foster\nhigh-quality employment. According to the 2025 Kuaishou Corporate Social\nResponsibility Report published on June 2, 2026, by the end of 2025, the\nKuaishou platform had cumulatively created 48.6 million job opportunities and\nspawned 189 new professions in total. Among these, 15 new roles were directly\ngenerated by the advancement of AI, covering fields such as AIGC application\nspecialists, prompt engineers, AI directors, and AI trainers.\n\nBusiness Outlook\n\nIn the first half of 2026, we maintained our strategic focus on AI and\ncontinued to increase our investment, delivering high-quality, resilient\ngrowth across our content and business ecosystems. Looking ahead to the second\nhalf of 2026, the Group reaffirms its strategic direction of deepening AI\ninvestment and pursuing long-term sustainable development through advanced\ntechnology and a distinctive ecosystem. However, we are cautious about the\nshort-term business outlook as the operating environment has become\nincreasingly complex and challenging. We will continue to adopt a prudent and\ndisciplined approach. We will continue to deepen AI integration across these\necosystems by advancing the capabilities of our large models across multiple\nscenarios, helping merchants and marketing clients operate more efficiently.\nWe will also continue to scale Kling AI's model capabilities and expand its\nadoption across professional creative scenarios, unlocking additional\ncommercialization opportunities. We remain dedicated to meeting users'\nevolving needs and creating sustainable, long-term value for Shareholders.\n\nAbout Kuaishou\n\nKuaishou is a leading content community and social platform in China and\nglobally, committed to becoming the most customer-obsessed company in the\nworld. Kuaishou uses its technological backbone, powered by cutting-edge AI\ntechnology, to continuously drive innovation and product enhancements that\nenrich its service offerings and application scenarios, creating exceptional\ncustomer value. Through short videos and live streams on Kuaishou's platform,\nusers can share their lives, discover goods and services they need and\nshowcase their talent. By partnering closely with content creators and\nbusinesses, Kuaishou provides technologies, products, and services that cater\nto diverse user needs across a broad spectrum of entertainment, online\nmarketing services, e-commerce, local services, gaming, and much more.\n\nForward-Looking Statements\n\nCertain statements included in this press release, other than statements of\nhistorical fact, are forward-looking statements. Forward-looking statements\ngenerally can be identified by the use of forward-looking terminology such as\n\"may\", \"might\", \"can\", \"could\", \"will\", \"would\", \"anticipate\", \"believe\",\n\"continue\", \"estimate\", \"expect\", \"forecast\", \"intend\", \"plan\", \"seek\", or\n\"timetable\". These forward-looking statements, which are subject to risks,\nuncertainties, and assumptions, may include our business outlook, estimates of\nfinancial performance, forecast business plans, growth strategies and\nprojections of anticipated trends in our industry. These forward-looking\nstatements are based on information currently available to the Group and are\nstated herein on the basis of the outlook at the time of this press release.\nThey are based on certain expectations, assumptions and premises, many of\nwhich are subjective or beyond our control. These forward-looking statements\nmay prove to be incorrect and may not be realized in the future. Underlying\nthese forward-looking statements are a large number of risks and\nuncertainties. In light of the risks and uncertainties, the inclusion of\nforward-looking statements in this press release should not be regarded as\nrepresentations by the Board or the Company that the plans and objectives will\nbe achieved, and investors should not place undue reliance on such statements.\nExcept as required by law, we are not obligated, and we undertake no\nobligation, to release publicly any revisions to these forward-looking\nstatements that might reflect events or circumstances occurring after the date\nof this press release or those that might reflect the occurrence of\nunanticipated events.\n\nFor investor and media inquiries, please contact\n\nKuaishou Technology\nInvestor Relations\nEmail: ir@kuaishou.com\n\n \n\n \n\n \n\n CONDENSED CONSOLIDATED INCOME STATEMENT \n \n Unaudited Unaudited \n Three Months Ended Six Months Ended \n June 30, March 31, June 30, June 30, June 30, \n 2026 2026 2025 2026 2025 \n RMB'Million RMB'Million RMB'Million RMB'Million RMB'Million \n Revenues 35,535 33,716 35,046 69,251 67,654 \n Cost of revenues (17,207) (16,467) (15,542) (33,674) (30,358) \n Gross profit 18,328 17,249 19,504 35,577 37,296 \n Selling and marketing expenses (9,922) (10,333) (10,503) (20,255) (20,400) \n Administrative expenses (895) (766) (897) (1,661) (1,725) \n Research and development expenses (4,581) (3,621) (3,400) (8,202) (6,698) \n Other income 33 245 16 278 69 \n Other gains, net 794 821 569 1,615 1,006 \n Operating profit 3,757 3,595 5,289 7,352 9,548 \n Finance expenses, net (258) (173) (54) (431) (78) \n Share of losses of investments (2) (13) (12) (15) (10) \n accounted for using the equity method \n Profit before income tax 3,497 3,409 5,223 6,906 9,460 \n Income tax expenses (345) (504) (301) (849) (559) \n Profit for the period 3,152 2,905 4,922 6,057 8,901 \n Attributable to: \n — Equity holders of the Company 3,146 2,903 4,922 6,049 8,900 \n — Non-controlling interests 6 2 - 8 1 \n 3,152 2,905 4,922 6,057 8,901 \n\n \n\n \n\n \n\n CONDENSED CONSOLIDATED BALANCE SHEET \n \n Unaudited Audited \n As of June 30, As of December 31, 2025 \n 2026 \n RMB'Million RMB'Million \n ASSETS \n Non-current assets \n Property and equipment 34,126 22,869 \n Right-of-use assets 10,302 8,545 \n Intangible assets 968 986 \n Investments accounted for using the equity method 130 149 \n Financial assets at fair value through profit or loss 29,618 23,747 \n Derivative financial instruments - 353 \n Other financial assets at amortized cost - 35 \n Deferred tax assets 6,529 5,585 \n Long-term time deposits 14,291 22,015 \n Other non-current assets 4,950 2,671 \n 100,914 86,955 \n \n Current assets \n Trade receivables 7,804 8,127 \n Prepayments, other receivables and other current assets 9,837 7,028 \n Financial assets at fair value through profit or loss 56,353 42,323 \n Derivative financial instruments 584 1 \n Other financial assets at amortized cost - 9 \n Short-term time deposits 12,358 8,630 \n Restricted cash 220 251 \n Cash and cash equivalents 11,696 11,180 \n 98,852 77,549 \n \n Total assets 199,766 164,504 \n\n \n\n \n\n \n\n CONDENSED CONSOLIDATED BALANCE SHEET \n \n Unaudited Audited \n As of June 30, As of December 31, 2025 \n 2026 \n RMB'Million RMB'Million \n EQUITY AND LIABILITIES \n Equity attributable to equity holders of the Company \n Share capital - - \n Share premium 261,530 265,628 \n Treasury shares (95) (602) \n Other reserves 39,096 38,873 \n Accumulated losses (218,292) (224,341) \n 82,239 79,558 \n Non-controlling interests 34 26 \n \n Total equity 82,273 79,584 \n \n \n Non-current liabilities \n Borrowings 14,792 11,098 \n Derivative financial instruments 520 30 \n Lease liabilities 7,920 5,977 \n Deferred tax liabilities 169 241 \n Other non-current liabilities 115 39 \n 23,516 17,385 \n \n Current liabilities \n Accounts payables 28,130 27,209 \n Other payables and accruals 41,620 29,160 \n Dividend payable 2,584 - \n Advances from customers 4,842 4,848 \n Borrowings 12,570 1,968 \n Income tax liabilities 479 388 \n Lease liabilities 3,752 3,962 \n 93,977 67,535 \n \n Total liabilities 117,493 84,920 \n \n Total equity and liabilities 199,766 164,504 \n\n \n\n \n\n \n\n Financial Information by Segment \n \n Unaudited Three Months Ended \n June 30, 2026 March 31, 2026 June 30, 2025 \n Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total \n items items items \n RMB'Million RMB'Million RMB'M \n illio \n n \n Revenues 34,356 1,179 - 35,535 32,554 1,162 - 33,716 33,746 1,300 - 35,046 \n Operating profit/(loss) 3,733 (25) 49 3,757 3,093 (31) 533 3,595 5,401 19 (131) 5,289 \n \n Unaudited Six Months Ended \n June 30, 2026 June 30, 2025 \n Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total \n items items \n RMB'Million RMB'Milli \n on \n Revenues 66,910 2,341 - 69,251 65,039 2,615 - 67,654 \n Operating profit/(loss) 6,826 (56) 582 7,352 9,746 47 (245) 9,548 \n \n\n \n\n \n\n \n\n Reconciliation of Non-IFRS Accounting Standards Measures to the Nearest IFRS Accounting \n Standards Measures \n \n Unaudited Unaudited \n Three Months Ended Six Months Ended \n June 30, March 31, June 30, June 30, June 30, \n 2026 2026 2025 2026 2025 \n RMB'Million RMB'Million RMB'Million RMB'Million RMB'Million \n \n Profit for the period 3,152 2,905 4,922 6,057 8,901 \n Adjusted for: \n Share-based compensation expenses 778 533 716 1,311 1,320 \n Net fair value changes on investments ((1)) (17) (64) (20) (81) (23) \n \n Adjusted net profit 3,913 3,374 5,618 7,287 10,198 \n \n \n Adjusted net profit 3,913 3,374 5,618 7,287 10,198 \n Adjusted for: \n Income tax expenses 345 504 301 849 559 \n Depreciation of property and 1,745 1,364 885 3,109 1,667 \n equipment \n Depreciation of right-of-use assets 845 799 831 1,644 1,599 \n Amortization of intangible assets 16 16 26 32 48 \n Finance expenses, net 258 173 54 431 78 \n \n Adjusted EBITDA 7,122 6,230 7,715 13,352 14,149 \n \n Note: \n (1) Net fair value changes on investments represents net fair value (gains)/losses on financial assets at fair value \n through profit or loss of our investments in listed and unlisted entities, net (gains)/losses on deemed disposals \n of investments and impairment provision for investments, which is unrelated to our core business and operating \n performance and subject to market fluctuations, and exclusion of which provides investors with more relevant \n and useful information to evaluate our performance. \n\n \n\n \n\n \n\nView original\ncontent:https://www.prnewswire.com/apac/news-releases/kuaishou-technology-announces-second-quarter-and-interim-2026-unaudited-financial-results-302855105.html\n\nSOURCE Kuaishou Technology\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-08-19T09:14:24.36831854Z","server_sent_at_ms":1787130864368},"received_at":"2026-08-19T09:14:24.619Z","source_url":null},"analysis":{"id":"111470","press_release_id":"122486","analysis_json":{"industry":{"label":"Interactive Media & Services","sector":"Communication Services"},"redFlags":["Net profit declined 35% YoY to RMB 3.2 billion","Gross margin compressed to 51.6% from 55.7% in prior year","Management cautious on short-term outlook due to complex macro environment"],"eventType":"earnings","narrative":"Kuaishou reported Q2 2026 revenue of RMB 35.5 billion, up 1.4% year-over-year, with average DAUs reaching 412.3 million.\n\nProfitability declined as net profit fell to RMB 3.2 billion from RMB 4.9 billion a year ago, and gross margin compressed to 51.6% due to increased investment.\n\nThe AI business was a standout, with Kling AI revenue growing over 200% to exceed RMB 850 million, while the company repurchased 43.3 million shares for HKD 1.97 billion in the first half.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"AI surge can't offset profit slump as Kuaishou navigates macro headwinds."},"keyFigures":{"revenue":35500000000,"revenueYoy":"1.4%","customDimensions":{"dau":412300000,"mau":797300000,"gross_profit":18300000000,"buyback_shares":43302200,"buyback_cost_hkd":1970000000,"kling_ai_revenue":"> RMB850 million","operating_profit":3800000000,"adjusted_net_profit":3900000000}},"quotedText":"Commercialization maintained strong growth momentum, with Kling AI generating revenue of over RMB850 million in the second quarter, representing year-over-year growth of more than 200.0%.","namedEntities":{"people":[{"name":"Cheng Yixiao","role":"Co-founder, Chairman, and Chief Executive Officer"}],"products":["Kuaishou APP","Kling AI","Kling 3.0 Turbo","MyFlicker","Vanchin"],"companies":[{"name":"Kuaishou Technology","ticker":"1024"}],"dollarAmounts":[{"amount":"RMB35.5 billion","context":"Q2 2026 total revenue"},{"amount":"RMB3.2 billion","context":"Q2 2026 profit for the period"},{"amount":"HKD1.97 billion","context":"H1 2026 share repurchase consideration"},{"amount":"RMB850 million","context":"Q2 2026 Kling AI revenue"}]},"materialImpact":{"score":3,"reasoning":"Revenue growth was modest (+1.4% YoY) while net profit declined significantly (-35% YoY) and margins compressed; however, the AI segment showed explosive growth (+200% YoY) and the company executed a sizable share buyback."},"tickerRelevance":{"others":[],"primary":"1024"},"globalImportance":35,"audienceRelevance":30,"eventTypeSecondary":["buyback"],"importanceComponents":{"tickerTier":"Large-cap China Tech","eventGravity":"Q2 Earnings with mixed signals","sectorWeight":"Tech/AI narrative boost"}},"event_type":"earnings","event_type_secondary":["buyback"],"sentiment":"mixed","material_impact_score":3,"narrative":"Kuaishou reported Q2 2026 revenue of RMB 35.5 billion, up 1.4% year-over-year, with average DAUs reaching 412.3 million.\n\nProfitability declined as net profit fell to RMB 3.2 billion from RMB 4.9 billion a year ago, and gross margin compressed to 51.6% due to increased investment.\n\nThe AI business was a standout, with Kling AI revenue growing over 200% to exceed RMB 850 million, while the company repurchased 43.3 million shares for HKD 1.97 billion in the first half.","key_figures":{"revenue":35500000000,"revenueYoy":"1.4%","customDimensions":{"dau":412300000,"mau":797300000,"gross_profit":18300000000,"buyback_shares":43302200,"buyback_cost_hkd":1970000000,"kling_ai_revenue":"> RMB850 million","operating_profit":3800000000,"adjusted_net_profit":3900000000}},"named_entities":{"people":[{"name":"Cheng Yixiao","role":"Co-founder, Chairman, and Chief Executive Officer"}],"products":["Kuaishou APP","Kling AI","Kling 3.0 Turbo","MyFlicker","Vanchin"],"companies":[{"name":"Kuaishou Technology","ticker":"1024"}],"dollarAmounts":[{"amount":"RMB35.5 billion","context":"Q2 2026 total revenue"},{"amount":"RMB3.2 billion","context":"Q2 2026 profit for the period"},{"amount":"HKD1.97 billion","context":"H1 2026 share repurchase consideration"},{"amount":"RMB850 million","context":"Q2 2026 Kling AI revenue"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-19T09:17:24.168Z","global_importance":35,"audience_relevance":30,"importance_components":{"tickerTier":"Large-cap China Tech","eventGravity":"Q2 Earnings with mixed signals","sectorWeight":"Tech/AI narrative boost"}},"durationMs":179541,"modelName":"glm-4.7"}}