{"success":true,"data":{"pressRelease":{"id":"45906","rtpr_id":"nPnzhXhLa","ticker":"1024","exchange":"HKEX","all_tickers":["1024"],"title":"Kuaishou Technology Announces First Quarter 2026 Unaudited Financial Results","author":"PR Newswire","published_at":"2026-05-27T08:38:41.202Z","article_body":"Kuaishou Technology Announces First Quarter 2026 Unaudited Financial Results\n\nPR Newswire\n\nHONG KONG, May 27, 2026\n\nHONG KONG, May 27, 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 first quarterly results for the three months ended March 31,\n2026.\n\nFirst Quarter 2026 Key Highlights\n\n * Average DAUs on Kuaishou APP were 412.7 million, representing an increase of\n1.2% from 408.0 million for the same period of 2025.\n * Average MAUs on Kuaishou APP were 771.7 million, representing an increase of\n8.4% from 711.7 million for the same period of 2025.\n * Total revenues increased by 3.4% to RMB33.7 billion from RMB32.6 billion for\nthe same period of 2025. Online marketing services and live streaming\ncontributed 58.3% and 25.2%, respectively, to the total revenues. The other\n16.5% came from other services.\n * Gross profit was RMB17.2 billion, compared to RMB17.8 billion for the same\nperiod of 2025. Gross profit margin was 51.2%, compared to 54.6% for the same\nperiod of 2025.\n * Profit for the period was RMB2.9 billion, compared to RMB4.0 billion for the\nsame period of 2025. Adjusted net profit((1)) was RMB3.4 billion, compared to\nRMB4.6 billion for the same period of 2025.\n * Operating profit from the domestic segment((2)) was RMB3.1 billion, compared\nto RMB4.3 billion for the same period of 2025. Operating loss from the\noverseas segment((2)) was RMB31 million, compared to operating profit of RMB28\nmillion for the same period of 2025.\n * During the three months ended March 31, 2026 and up to May 27, 2026, the\nCompany repurchased a total of 17,956,000 shares on the Hong Kong Stock\nExchange at an aggregate consideration of HKD854 million.\nMr. Cheng Yixiao, Co-founder, Chairman, and Chief Executive Officer of\nKuaishou, commented, \"In the first quarter of 2026, by advancing our AI\nstrategy, we continued to foster a thriving content ecosystem and drive\ncommercial growth through technological innovation, achieving a solid start to\nthe year. Average DAUs reached 413 million, and total revenues reached RMB33.7\nbillion. Revenues from our core commercial business, including online\nmarketing services and other services, primarily e-commerce, increased by\n10.7% year-over-year. Adjusted net profit reached RMB3.4 billion, with an\nadjusted net margin of 10.0%. In February 2026, we launched the Kling AI 3.0\nseries, extending Kling AI's global leadership in model capabilities and\nproduct experience. Commercialization also accelerated with Kling AI\ngenerating over RMB650 million in revenue in the first quarter, representing\nyear-over-year growth of more than 300.0%. Meanwhile, we expanded the\napplication of AI across diverse scenarios including content creation, online\nmarketing, e-commerce operations and organizational management, effectively\nimproving user experience and merchant operational efficiency. Looking ahead,\nwe will continue to deepen the integration of AI across our business and drive\nfurther innovation. Through sustained technological iteration and ecosystem\ndevelopment, we aim to create greater long-term sustainable value for our\nusers, partners, and shareholders.\"\n\nFirst Quarter 2026 Financial Review\n\nRevenue from our online marketing services increased by 9.3% to RMB19.6\nbillion for the first quarter of 2026, from RMB18.0 billion for the same\nperiod of 2025, primarily attributable to the accelerated penetration of AI\nacross diverse online marketing services scenarios.\n\nRevenue from our live streaming business decreased by 13.5% to RMB8.5 billion\nfor the first quarter of 2026 from RMB9.8 billion for the same period of 2025,\nas 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 15.9% to RMB5.6 billion for the\nfirst quarter of 2026, from RMB4.8 billion for the same period of\n2025, primarily due to the growth of our Kling AI business. The growth of\nKling AI business was primarily attributable to our advanced AI technology and\nexceptional product performance.\n\nOther Key Financial Information for the First Quarter of 2026\n\nOperating profit was RMB3.6 billion, compared to RMB4.3 billion for the same\nperiod of 2025.\n\nAdjusted EBITDA((3)) was RMB6.2 billion, compared to RMB6.4 billion for the\nsame period of 2025.\n\nTotal available funds((4)) reached RMB117.7 billion as of March 31, 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(2) Unallocated items, which consist of share-based compensation expenses,\nother income, and other gains, net, are not included.\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\nexpense, net.\n(4) Total available funds which we considered in cash management included but\nnot limited to cash and cash equivalents, time deposit, financial assets and\nrestricted cash. Financial assets mainly included wealth management products\nand others.\n\nBusiness Review\n\nIn the first quarter of 2026, amid a complex and dynamic macro environment, we\ncontinued to deepen our AI strategy. Kling AI (可靈AI) maintained its\nglobal leadership in multimodal video generation, and AI technologies\ncontinued to provide the momentum for our content prosperity, business growth\nand organizational efficiency improvement. In the first quarter of 2026, the\naverage DAUs on the Kuaishou App reached 412.7 million. Total revenues\nincreased by 3.4% year-over-year to RMB33.7 billion. Revenues from our core\ncommercial business, including online marketing services and other services,\nprimarily e-commerce, increased by 10.7% year-over-year. Adjusted net profit\nreached RMB3.4 billion, with an adjusted net margin of 10.0%. Notably, Kling\nAI demonstrated its core momentum as our second growth curve. It sustained its\nglobal leadership in model capabilities and product experience, while\nachieving rapid monetization growth. In the first quarter of 2026, Kling AI\ngenerated revenue of over RMB650 million, representing year-over-year growth\nof more than 300.0%.\n\nAI business\n\nIn the first quarter of 2026, Kling AI continued to advance its vision of\nempowering everyone to craft captivating stories with AI. Through ongoing\nmodel iteration, intelligent product upgrades, and deeper penetration across\nprofessional scenarios, Kling AI further reinforced its global leadership in\nAI video generation. At the model and technology front, in February 2026, we\nlaunched the Kling AI 3.0 model series. Built on an All-in-One product\nframework, the Kling AI 3.0 model series supports full multimodal inputs and\noutputs spanning text, images, audio and video, integrating video\nunderstanding, generation and editing into one streamlined AI workflow. While\nsupporting video generation of up to 15 seconds, the Kling AI 3.0 model series\ndelivers highly flexible storyboard control and more precise semantic\nalignment, incorporating \"simultaneous audiovisual generation\" capabilities\nwith strong subject consistency to further extend the boundaries of AI\nstorytelling. At the product level, Kling AI launched the Team Plan,\nsupporting real-time collaborative creation for up to 15 members and enabling\ncreators to efficiently manage content creation workflows among teams.\nRecently, we launched the 'Baseball Live' effect, which once again ignited a\nglobal AI creation frenzy and swept across social media platforms worldwide.\nThis viral hit propelled Kling AI to claim the number one position on the App\nStore across 42 countries and regions, including Brazil and Germany.\n\nKling AI has continued to focus on the core needs of professional creators\nacross film and television, advertising, e-commerce, and gaming sectors,\nempowering professional creation with end-to-end industrial-grade capabilities\nand driving meaningful cost reduction and efficiency improvement. Kling AI was\ndeeply involved in the creation of selected virtual scenes and visual effects\nshots in the hit Chinese historical drama Swords Into Plowshares (太平年).\nIn the Hollywood TV series House of David (大衛王朝), Kling AI supported\nthe generation of hundreds of high-quality shots, including grand scenes and\ncomplex battle sequences, fully demonstrating its exceptional strength in\ncommercial film and television production. With broader adoption across\nprofessional creative scenarios, Kling AI's commercialization has accelerated.\nIn the first quarter of 2026, Kling AI generated revenue of over RMB650\nmillion, representing year-over-year growth of more than 300%. In March 2026,\nthe annualized revenue run rate (ARR) of Kling AI was approximately USD500\nmillion.\n\nIn the first quarter of 2026, we made continued, solid progress in advancing\nthe research and development of our general-purpose large models, and in\nempowering our commercial and organizational ecosystems with AI. At the\ngeneral-purpose large model level, we released KAT-Coder-Pro V2, an agentic\ncoding model that achieved strong performance in front-end aesthetics\ngeneration, command-line reasoning and agent execution. It is compatible with\nmainstream AI coding tools. It has also been trained and optimized for\nOpenClaw and is capable of navigating complex real-world application\nworkflows. In terms of AI empowerment for our commercial ecosystem, we\ncontinued to deepen the application of our generative recommendation and\nintelligent bidding large models in online marketing services scenarios,\ndriving roughly 3.0%–4.0% growth in domestic online marketing services\nrevenue in the first quarter of 2026. For e-commerce business scenarios, the\nnew-generation generative search framework OneSearch V2 was fully rolled out\nacross e-commerce search scenario in the first quarter of 2026. Through\ntechnological innovation, we enhanced the model's inference capabilities and\nthe search experience, which drove an incremental GMV growth of approximately\n3.0% in our e-commerce search business. At the organizational ecosystem\nempowerment level, Kuaishou's proprietary coding tool, CodeFlicker, has driven\nAI-generated code penetration to over 50%. It has also evolved into a\ncompany-wide general-purpose agent, My Flicker, expanding its use scenarios\nfrom engineering coding to universal scenarios for all employees. It now\nempowers functions across R&D, product, operations, data, etc. enhancing\noverall organizational efficiency.\n\nUser and content ecosystem\n\nIn the first quarter of 2026, average DAUs on the Kuaishou App reached 412.7\nmillion, and MAUs reached 771.7 million, while the average daily time spent\nper DAU on the Kuaishou App remained relatively stable. By providing\ndifferentiated premium content, iterating our traffic mechanism, and expanding\nsocial interaction scenarios around the Chinese New Year, we offered users a\nhigher-quality and more heart-warming online community with distinctive\nKuaishou characteristics. In refining our distribution mechanism, we balanced\nuser experience with monetization efficiency, resulting in increased exposure\nfor premium content. Regarding high-quality user growth, we have deepened\nrefined operations across all channels. By integrating growth spending with\nmonetization scenarios and innovating user retention initiatives, we improved\nthe ROI of user growth.\n\nDuring the 2026 Chinese New Year holiday, we created an immersive online\nSpring Festival experience to drive high-quality user growth through\ninnovative, interactive features and an extensive premium content matrix,\nachieving a new historic peak in DAUs. In terms of content ecosystem, we\nlaunched a series of Kuaishou-characteristic content IPs, including Kuaishou\nSpring Festival Gala for the Year of the Horse (快手馬年春晚), Liu\nLaogen Grand Stage (劉老根大舞台), and Northeast Comedy Show\n(東北喜樂會). Leveraging Kling AI's technical capabilities, we released\nAI-generated Chinese New Year animation short play series, The Show Gallops On\n(馬上有戲). These initiatives fostered a vibrant festive atmosphere for\nusers while enhancing the popularity and influence of Kuaishou's native\ncontent. User social interactions increased significantly during the Chinese\nNew Year campaign. The number of user pairs using our social interaction\nproduct Huo zaizai (火崽崽) grew by 25.0% compared to the pre-Spring\nFestival period, and the number of users sending private messages increased by\n15.0%. Our 2026 Chinese New Year-related content generated over 15 billion,\n250 billion and 6.5 billion of live-streaming views, short-video views and\ncumulative likes, respectively.\n\nOnline marketing services\n\nIn the first quarter of 2026, revenue from online marketing services reached\nRMB19.6 billion, up 9.3% year-over-year, with revenue from domestic online\nmarketing services growing by more than 10% year-over-year.\n\nDuring the first quarter of 2026, the content consumption, lifestyle service\nand AI application sectors were the primary drivers of our non-e-commerce\nmarketing services revenue. In the content consumption sector, AI reduced\nproduction costs and lowered the creative threshold for comic-style short\nplays, driving rapid growth in content supply and related marketing demand. As\nof the end of March 2026, the peak of daily marketing spend on Kuaishou\ncomic-style short plays exceeded RMB20 million. Within the lifestyle service\nsector, where clients primarily operate on a lead-based model, we advanced\nmore refined industry operations across over 20 verticals, including\nhealthcare, industrial and agricultural materials, education, and automotive.\nBy tailoring our solutions to the conversion characteristics of different\nindustries, we helped merchants improve customer acquisition efficiency and\ndrove incremental marketing spend across these sectors. At the same time, we\nhelped merchants reach potential customers more efficiently and improve user\nconversion rates through product upgrades. In addition, during the Chinese New\nYear period, demand for marketing placement in the AI application vertical was\nstrong. We effectively captured relevant budgets and optimized deep conversion\noutcomes, enhancing AI application clients' willingness and scale of marketing\nspend on our platform.\n\nIn the first quarter of 2026, we accelerated the penetration of AI across\ndiverse online marketing services scenarios, covering the full pre-placement,\nin-placement and post-placement cycle. This improved clients' placement\nexperience and drove growth in total spending from online marketing services.\nIn the pre-placement stage, the generation of AIGC marketing materials enabled\nmerchants to produce materials at a lower cost and with higher efficiency. As\nof March 2026, AIGC short video marketing materials spending contributed 10.0%\nof total short video online marketing spending on our platform. At the\nin-placement stage, our Universal Auto X (UAX, 全自動投放) placement\nsolutions became the dominant placement tool adopted by most online marketing\nclients. During the first quarter of 2026, we added an Agent feature to our\nUAX placement solutions. By learning from best practices in placement\noptimization and in creative generation and editing across verticals, our UAX\nplacement solutions automatically assisted marketing teams in tasks such as\nmarketing unit creation and bid management, improving overall placement\nefficiency. In the post-placement stage, AI-driven analytics automatically\nreviewed performance data and provided timely feedback to clients, reducing\nmanual operational workload. Meanwhile, our digital employee solutions offered\n24/7 automated responses, enabling clients respond to consumers' inquiries in\ntime, especially during periods such as overnight hours when human support is\nlimited.\n\nFor e-commerce marketing services, in the first quarter of 2026, we further\nadvanced and deepened our omni-domain traffic synergy strategy through\nimproved coordination between organic and commercial traffic pools,\neffectively enhancing e-commerce traffic exposure and business growth of brand\nmerchants. In the first quarter of 2026, we onboarded an increasing number of\nbrand merchants and small- and medium-sized merchants. The number of active\nmarketing merchants increased by 38.0% year-over-year, and marketing spending\nfrom brand merchants increased by 42.0% year-over-year, supporting GMV growth\nfor their self-operated businesses across omni-domain scenarios. Meanwhile, AI\ncapabilities have been fully integrated across our end-to-end e-commerce\nmarketing placement workflows. Through the coordinated efforts of our user\ninterest inference AI agent, creative and product selection AI agent, and\nbidding decision AI agent, both marketing placement precision and efficiency\nimproved. On the product side, with continuous upgrades, our Omni-platform\nMarketing (全站推廣) solutions accounted for a greater share of total\nspending from e-commerce marketing services, becoming the primary placement\noffering for our e-commerce marketing services. Our Net Transaction ROI\n(淨成交ROI) product helped merchants optimize their net transaction GMV,\nenabling more stable settlement outcomes. In the first quarter of 2026, its\nclient penetration rate reached 45.0% across industries, and it meaningfully\nreduced product return rates. Meanwhile, our Full-store Hosting (全店託管)\nfreed merchants from single-product placement constraints through one-click\nfull-store placement, reducing manpower for merchants.\n\nE-commerce\n\nIn 2026, we advance our e-commerce strategy through three key upgrades: paying\nuser growth, supply acquisition, and deeper integration of e-commerce and\ncommercialization traffic. This will enable merchants to better capture the\nsynergies across omni-domain scenarios, amplifying growth momentum. In the\nfirst quarter of 2026, by steadily advancing this strategy, our e-commerce\nbusiness achieved sustainable, healthy growth. We remain committed to\nstrengthening omni-domain traffic synergies and refining operations across the\nfull buyer lifecycle to drive long-term growth in our e-commerce buyer base.\n\nOn the supply side, this year we will focus on onboarding brand merchants and\nnew merchants, while continuously improving product quality. For brand\nmerchants, we continued to advance the Voyage Initiative\n(乘風計劃) launched in the fourth quarter of 2025, targeting top-tier\nbrands across diverse verticals and providing them with multi-dimensional\nsupport in traffic, operations and brand building. In the first quarter of\n2026, driven by the incremental growth from new brand merchants, brand\nmerchants' contribution to overall e-commerce GMV and monetization continued\nto increase, maintaining strong year-over-year growth. Meanwhile, existing\nmerchants continued to scale and stabilize their operations, further\nstrengthening the health and resilience of our e-commerce supply ecosystem. In\nterms of new merchant acquisition, we worked closely with our service\nproviders across 100 targeted priority industrial zones nationwide. In the\nfirst quarter of 2026, the number of new merchants onboarded in these\nindustrial zones increased by 41.8% year-over-year. In addition, we provided\ncomprehensive support for new merchants across their full lifecycle, from\nonboarding and early growth to scaling. In the first quarter of 2026, small-\nand medium-sized merchants grew significantly, leading to a healthier merchant\nstructure and more diversified supply.\n\nIn the first quarter of 2026, we further improved our KOL ecosystem and\nstructure, enhancing the supply of high-quality e-commerce content. We\ncontinued to strengthen support for mid-tier KOLs. In January 2026, we\nlaunched the Treasure Streamer Spotlight Initiative\n(寶藏主播閃光計劃), leveraging platform resources to identify and\nsupport outstanding KOLs across verticals, helping them scale up. In addition,\nwe further refined our incentive policies, which significantly increased KOL\nstreaming frequency. In the first quarter of 2026, the number of average daily\nactive streamers hosting live sessions with over 10,000 followers grew by\n10.1% year-over-year. Through subsidy initiatives such as our KOL Blockbuster\nInitiative (達人爆品計劃), along with continued optimization of our\ndistribution product allocation capabilities to empower KOLs, we improved the\nefficiency of KOL product matching. In addition, we hosted offline matchmaking\nevents between merchants and KOLs and introduced tiered services for KOLs at\ndifferent levels, enabling high-precision distribution matching. In the first\nquarter of 2026, the number of merchant-KOL matches in the distribution pool\nincreased by 47.0% year-over-year, while the number of active KOLs\nparticipating in distribution grew by 23.5% year-over-year.\n\nIn the first quarter of 2026, our e-commerce omni-domain operations ecosystem\ncontinued to unleash strong growth momentum. Content-based scenarios continued\nto serve as an important driver of user demand. As user consumption journeys\nincreasingly extended into browsing, search and shopping mall mode\nexploration, an omni-domain consumption mindset among users is gradually\ntaking shape. In the first quarter of 2026, e-commerce intent-driven search\npage views grew 11.0% year-over-year, while new and returning buyers from the\nshopping mall tab increased by approximately 36.0% in March 2026, indicating\ne-commerce users' stronger active shopping intent. In addition, richer supply\neffectively drove an increase in purchase frequency among pan-shelf-based\ne-commerce users.\n\nIn the first quarter of 2026, we leveraged end-to-end AI capabilities to drive\ntangible operating efficiency gains for merchants and upgraded user\nexperience. Powered by large model capabilities, we comprehensively upgraded\nthe entire shopping decision-making processes, from demand activation, search\nfulfillment, to live streaming guided shopping, and subsidy distribution. We\nlaunched an intelligent search upgrade featuring AI agent-based one-stop\nintelligent shopping assistant. This transformed search from a user-initiated\nproduct lookup into an AI-led recommendation experience, significantly\nimproving search conversion efficiency. In addition, leveraging AI to empower\nsales operations, we optimized the process of guided shopping in live\nstreaming rooms. In live streaming scenarios, real-time product highlight\nsummarization and AI-powered auto-reply hosting feature generated over RMB10\nmillion in incremental GMV per day for merchants. Furthermore, our AI-driven\ncoupon distribution tool enabled high-precision, personalized marketing,\neffectively reducing merchant operating costs.\n\nLive streaming\n\nIn the first quarter of 2026, live streaming revenue reached RMB8.5 billion.\nWe remained committed to the health of the live streaming ecosystem as our\ncore priority, focusing on supply quality improvement, content enrichment and\nAI innovation to build a sustainable live streaming ecosystem for long-term\ngrowth. We continued to support high-quality content categories, such as\npremium group live streaming, and strengthened the professional operations of\npartner talent agencies, solidifying the foundation of live streaming supply.\nOn the product and technology front, AI capabilities further empowered live\nstreaming rooms. AI tools, including AI Interaction Assistants\n(AI互動助手), Digital Avatar Solutions (數字分身服務) and AI\nPrivate Messaging (AI私信) improved streamers' service efficiency and\nenhanced viewer engagement experience. Kling AI's video generation strengths\nsignificantly empowered live streaming gift creations, accelerating AI gift\nrollout and enriching creative expression while boosting users' willingness to\npay. In the first quarter of 2026, the AI Universe (AI萬象) series gifts\nwith customizable special effects sent by users reached 1.1 million.\n\nIn terms of content, we launched a diverse range of live streaming interactive\nfeatures during the Chinese New Year. The Kuaishou Mastermind\n(快手狀元) quiz series featured over 100 AI digital human streamers\ngenerated by Kling AI, attracting nearly 50 million users to actively\nparticipate. At the same time, we further strengthened our gaming content\necosystem. During the Chinese New Year, we launched the Spring Festival Player\nCarnival (新春玩家狂歡節) campaign, partnering with over 50 game\ndevelopers. Moreover, our esports business, a key strategic pillar of our\ngaming ecosystem, achieved a breakthrough. In April 2026, Kuaishou's KSG team\nwon the King Pro League Spring 2026 Championship, driving the further\nevolution of the gaming ecosystem.\n\nOverseas\n\nIn the first quarter of 2026, we continuously explored high-value growth\nstrategies for our overseas business, while responding to market changes with\nbusiness resilience. In terms of traffic, we continued optimizing user\nacquisition efficiency and user growth mix to cultivate a community ecosystem\nrooted in real life. Meanwhile, we further expanded content verticals favored\nby our core users to deepen their engagement. Brazil, our key market for\noverseas development, maintained steady average DAUs and average daily time\nspent per DAU quarter-over-quarter. For online marketing services, we\nconsistently strengthened our advertising product capabilities by leveraging\nAI to fully empower our end-to-end marketing workflows, improving placement\nefficiency and performance stability for clients. At the same time, we\ncapitalized on our strengths as a content platform, localizing commercial\ncreatives to unlock incremental advertising budgets, particularly from core\nsectors led by cross-border ecommerce players. Our e-commerce business in\nBrazil achieved solid year-over-year growth in GMV and order volume in the\nfirst quarter of 2026. By strengthening key categories and high-quality\nproduct supply, we grew conversion and repeat purchase rates. Meanwhile,\nthrough AI-assisted content production and content recommendation, we\ncontinuously optimized operational efficiency and profit-generating ability.\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\n\nInvestor Relations\nEmail: ir@kuaishou.com (mailto:ir@kuaishou.com)\n\n \n\n \n CONDENSED CONSOLIDATED INCOME STATEMENT\n\n Unaudited\n Three Months Ended\n March 31, December 31, March 31,\n\n2026\n2025\n2025\n RMB'Million RMB'Million RMB'Million\n Revenues 33,716 39,568 32,608\n Cost of revenues (16,467) (17,749) (14,816)\n Gross profit 17,249 21,819 17,792\n Selling and marketing expenses (10,333) (11,409) (9,897)\n Administrative expenses (766) (930) (828)\n Research and development expenses (3,621) (4,143) (3,298)\n Other income 245 74 53\n Other gains, net 821 379 437\n Operating profit 3,595 5,790 4,259\n Finance expense, net (173) (31) (24)\n Share of (losses)/profits of investments (13) (9) 2\n accounted for using the equity method\n Profit before income tax 3,409 5,750 4,237\n Income tax expenses (504) (516) (258)\n Profit for the period 2,905 5,234 3,979\n Attributable to:\n — Equity holders of the Company 2,903 5,229 3,978\n — Non-controlling interests 2 5 1\n 2,905 5,234 3,979\n\n \n\n \n CONDENSED CONSOLIDATED BALANCE SHEET\n\n Unaudited Audited\n As of March 31, As of December 31,\n\n2026\n 2025\n RMB'Million RMB'Million\n ASSETS\n Non-current assets\n Property and equipment 30,214 22,869\n Right-of-use assets 9,174 8,545\n Intangible assets 982 986\n Investments accounted for using the equity method 136 149\n Financial assets at fair value through profit or loss 29,827 23,747\n Derivative financial instruments 448 353\n Other financial assets at amortized cost - 35\n Deferred tax assets 5,732 5,585\n Long-term time deposits 22,660 22,015\n Other non-current assets 6,296 2,671\n 105,469 86,955\n\n Current assets\n Trade receivables 7,592 8,127\n Prepayments, other receivables and other current assets 7,439 7,028\n Financial assets at fair value through profit or loss 50,448 42,323\n Derivative financial instruments 11 1\n Other financial assets at amortized cost - 9\n Short-term time deposits 6,380 8,630\n Restricted cash 266 251\n Cash and cash equivalents 11,405 11,180\n 83,541 77,549\n\n Total assets 189,010 164,504\n\n \n\n \n CONDENSED CONSOLIDATED BALANCE SHEET\n\n Unaudited Audited\n As of March 31, As of December 31,\n\n2026\n 2025\n RMB'Million RMB'Million\n EQUITY AND LIABILITIES\n Equity attributable to equity holders of the Company\n Share capital - -\n Share premium 265,202 265,628\n Treasury shares (408) (602)\n Other reserves 38,836 38,873\n Accumulated losses (221,438) (224,341)\n 82,192 79,558\n Non-controlling interests 28 26\n\n Total equity 82,220 79,584\n\n Non-current liabilities\n Borrowings 24,791 11,098\n Derivative financial instruments 271 30\n Lease liabilities 6,644 5,977\n Deferred tax liabilities 304 241\n Other non-current liabilities 134 39\n 32,144 17,385\n\n Current liabilities\n Accounts payables 27,919 27,209\n Other payables and accruals 34,125 29,160\n Advances from customers 5,166 4,848\n Borrowings 2,871 1,968\n Income tax liabilities 514 388\n Lease liabilities 4,051 3,962\n 74,646 67,535\n\n Total liabilities 106,790 84,920\n\n Total equity and liabilities 189,010 164,504\n\n \n\n \n Financial Information by Segment\n\n Unaudited Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total\n items items items\n RMB'Million RMB'Million RMB'\n Mill\n ion\n Revenues 32,554 1,162 - 33,716 38,263 1,305 - 39,568 31,293 1,315 - 32,608\n Operating profit/(loss) 3,093 (31) 533 3,595 6,065 (59) (216) 5,790 4,345 28 (114) 4,259\n\n \n\n \n Reconciliation of Non-IFRS Accounting Standards Measures to the\n Nearest IFRS Accounting\n Standards Measures\n\n Unaudited\n Three Months Ended\n March 31, December 31, March 31,\n 2026 2025 2025\n RMB'Million RMB'Million RMB'Million\n\n Profit for the period 2,905 5,234 3,979\n Adjusted for:\n Share-based compensation expenses 533 669 604\n Net fair value changes on investments((1)) (64) (440) (3)\n\n Adjusted net profit 3,374 5,463 4,580\n\n Adjusted net profit 3,374 5,463 4,580\n Adjusted for:\n Income tax expenses 504 516 258\n Depreciation of property and equipment 1,364 1,205 782\n Depreciation of right-of-use assets 799 814 768\n Amortization of intangible assets 16 8 22\n Finance expense, net 173 31 24\n\n Adjusted EBITDA 6,230 8,037 6,434\n\n \n\n \n Note:\n\n (1) Net fair value changes on investments represents net fair value\n(gains)/losses on financial assets at fair value through profit or loss of our\ninvestments in listed and unlisted entities, net (gains)/losses on deemed\ndisposals of investments and impairment provision for investments, which is\nunrelated to our core business and operating performance and subject to market\nfluctuations, and exclusion of which provides investors with more relevant and\nuseful information to evaluate our performance.\n\n \n\nView original\ncontent:https://www.prnewswire.com/news-releases/kuaishou-technology-announces-first-quarter-2026-unaudited-financial-results-302782888.html\n(https://www.prnewswire.com/news-releases/kuaishou-technology-announces-first-quarter-2026-unaudited-financial-results-302782888.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":"nPnzhXhLa","title":"Kuaishou Technology Announces First Quarter 2026 Unaudited Financial Results","author":"PR Newswire","ticker":"1024","created":"2026-05-27T08:38:41.202Z","tickers":["1024"],"exchange":"HKEX","article_body":"Kuaishou Technology Announces First Quarter 2026 Unaudited Financial Results\n\nPR Newswire\n\nHONG KONG, May 27, 2026\n\nHONG KONG, May 27, 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 first quarterly results for the three months ended March 31,\n2026.\n\nFirst Quarter 2026 Key Highlights\n\n * Average DAUs on Kuaishou APP were 412.7 million, representing an increase of\n1.2% from 408.0 million for the same period of 2025.\n * Average MAUs on Kuaishou APP were 771.7 million, representing an increase of\n8.4% from 711.7 million for the same period of 2025.\n * Total revenues increased by 3.4% to RMB33.7 billion from RMB32.6 billion for\nthe same period of 2025. Online marketing services and live streaming\ncontributed 58.3% and 25.2%, respectively, to the total revenues. The other\n16.5% came from other services.\n * Gross profit was RMB17.2 billion, compared to RMB17.8 billion for the same\nperiod of 2025. Gross profit margin was 51.2%, compared to 54.6% for the same\nperiod of 2025.\n * Profit for the period was RMB2.9 billion, compared to RMB4.0 billion for the\nsame period of 2025. Adjusted net profit((1)) was RMB3.4 billion, compared to\nRMB4.6 billion for the same period of 2025.\n * Operating profit from the domestic segment((2)) was RMB3.1 billion, compared\nto RMB4.3 billion for the same period of 2025. Operating loss from the\noverseas segment((2)) was RMB31 million, compared to operating profit of RMB28\nmillion for the same period of 2025.\n * During the three months ended March 31, 2026 and up to May 27, 2026, the\nCompany repurchased a total of 17,956,000 shares on the Hong Kong Stock\nExchange at an aggregate consideration of HKD854 million.\nMr. Cheng Yixiao, Co-founder, Chairman, and Chief Executive Officer of\nKuaishou, commented, \"In the first quarter of 2026, by advancing our AI\nstrategy, we continued to foster a thriving content ecosystem and drive\ncommercial growth through technological innovation, achieving a solid start to\nthe year. Average DAUs reached 413 million, and total revenues reached RMB33.7\nbillion. Revenues from our core commercial business, including online\nmarketing services and other services, primarily e-commerce, increased by\n10.7% year-over-year. Adjusted net profit reached RMB3.4 billion, with an\nadjusted net margin of 10.0%. In February 2026, we launched the Kling AI 3.0\nseries, extending Kling AI's global leadership in model capabilities and\nproduct experience. Commercialization also accelerated with Kling AI\ngenerating over RMB650 million in revenue in the first quarter, representing\nyear-over-year growth of more than 300.0%. Meanwhile, we expanded the\napplication of AI across diverse scenarios including content creation, online\nmarketing, e-commerce operations and organizational management, effectively\nimproving user experience and merchant operational efficiency. Looking ahead,\nwe will continue to deepen the integration of AI across our business and drive\nfurther innovation. Through sustained technological iteration and ecosystem\ndevelopment, we aim to create greater long-term sustainable value for our\nusers, partners, and shareholders.\"\n\nFirst Quarter 2026 Financial Review\n\nRevenue from our online marketing services increased by 9.3% to RMB19.6\nbillion for the first quarter of 2026, from RMB18.0 billion for the same\nperiod of 2025, primarily attributable to the accelerated penetration of AI\nacross diverse online marketing services scenarios.\n\nRevenue from our live streaming business decreased by 13.5% to RMB8.5 billion\nfor the first quarter of 2026 from RMB9.8 billion for the same period of 2025,\nas 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 15.9% to RMB5.6 billion for the\nfirst quarter of 2026, from RMB4.8 billion for the same period of\n2025, primarily due to the growth of our Kling AI business. The growth of\nKling AI business was primarily attributable to our advanced AI technology and\nexceptional product performance.\n\nOther Key Financial Information for the First Quarter of 2026\n\nOperating profit was RMB3.6 billion, compared to RMB4.3 billion for the same\nperiod of 2025.\n\nAdjusted EBITDA((3)) was RMB6.2 billion, compared to RMB6.4 billion for the\nsame period of 2025.\n\nTotal available funds((4)) reached RMB117.7 billion as of March 31, 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(2) Unallocated items, which consist of share-based compensation expenses,\nother income, and other gains, net, are not included.\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\nexpense, net.\n(4) Total available funds which we considered in cash management included but\nnot limited to cash and cash equivalents, time deposit, financial assets and\nrestricted cash. Financial assets mainly included wealth management products\nand others.\n\nBusiness Review\n\nIn the first quarter of 2026, amid a complex and dynamic macro environment, we\ncontinued to deepen our AI strategy. Kling AI (可靈AI) maintained its\nglobal leadership in multimodal video generation, and AI technologies\ncontinued to provide the momentum for our content prosperity, business growth\nand organizational efficiency improvement. In the first quarter of 2026, the\naverage DAUs on the Kuaishou App reached 412.7 million. Total revenues\nincreased by 3.4% year-over-year to RMB33.7 billion. Revenues from our core\ncommercial business, including online marketing services and other services,\nprimarily e-commerce, increased by 10.7% year-over-year. Adjusted net profit\nreached RMB3.4 billion, with an adjusted net margin of 10.0%. Notably, Kling\nAI demonstrated its core momentum as our second growth curve. It sustained its\nglobal leadership in model capabilities and product experience, while\nachieving rapid monetization growth. In the first quarter of 2026, Kling AI\ngenerated revenue of over RMB650 million, representing year-over-year growth\nof more than 300.0%.\n\nAI business\n\nIn the first quarter of 2026, Kling AI continued to advance its vision of\nempowering everyone to craft captivating stories with AI. Through ongoing\nmodel iteration, intelligent product upgrades, and deeper penetration across\nprofessional scenarios, Kling AI further reinforced its global leadership in\nAI video generation. At the model and technology front, in February 2026, we\nlaunched the Kling AI 3.0 model series. Built on an All-in-One product\nframework, the Kling AI 3.0 model series supports full multimodal inputs and\noutputs spanning text, images, audio and video, integrating video\nunderstanding, generation and editing into one streamlined AI workflow. While\nsupporting video generation of up to 15 seconds, the Kling AI 3.0 model series\ndelivers highly flexible storyboard control and more precise semantic\nalignment, incorporating \"simultaneous audiovisual generation\" capabilities\nwith strong subject consistency to further extend the boundaries of AI\nstorytelling. At the product level, Kling AI launched the Team Plan,\nsupporting real-time collaborative creation for up to 15 members and enabling\ncreators to efficiently manage content creation workflows among teams.\nRecently, we launched the 'Baseball Live' effect, which once again ignited a\nglobal AI creation frenzy and swept across social media platforms worldwide.\nThis viral hit propelled Kling AI to claim the number one position on the App\nStore across 42 countries and regions, including Brazil and Germany.\n\nKling AI has continued to focus on the core needs of professional creators\nacross film and television, advertising, e-commerce, and gaming sectors,\nempowering professional creation with end-to-end industrial-grade capabilities\nand driving meaningful cost reduction and efficiency improvement. Kling AI was\ndeeply involved in the creation of selected virtual scenes and visual effects\nshots in the hit Chinese historical drama Swords Into Plowshares (太平年).\nIn the Hollywood TV series House of David (大衛王朝), Kling AI supported\nthe generation of hundreds of high-quality shots, including grand scenes and\ncomplex battle sequences, fully demonstrating its exceptional strength in\ncommercial film and television production. With broader adoption across\nprofessional creative scenarios, Kling AI's commercialization has accelerated.\nIn the first quarter of 2026, Kling AI generated revenue of over RMB650\nmillion, representing year-over-year growth of more than 300%. In March 2026,\nthe annualized revenue run rate (ARR) of Kling AI was approximately USD500\nmillion.\n\nIn the first quarter of 2026, we made continued, solid progress in advancing\nthe research and development of our general-purpose large models, and in\nempowering our commercial and organizational ecosystems with AI. At the\ngeneral-purpose large model level, we released KAT-Coder-Pro V2, an agentic\ncoding model that achieved strong performance in front-end aesthetics\ngeneration, command-line reasoning and agent execution. It is compatible with\nmainstream AI coding tools. It has also been trained and optimized for\nOpenClaw and is capable of navigating complex real-world application\nworkflows. In terms of AI empowerment for our commercial ecosystem, we\ncontinued to deepen the application of our generative recommendation and\nintelligent bidding large models in online marketing services scenarios,\ndriving roughly 3.0%–4.0% growth in domestic online marketing services\nrevenue in the first quarter of 2026. For e-commerce business scenarios, the\nnew-generation generative search framework OneSearch V2 was fully rolled out\nacross e-commerce search scenario in the first quarter of 2026. Through\ntechnological innovation, we enhanced the model's inference capabilities and\nthe search experience, which drove an incremental GMV growth of approximately\n3.0% in our e-commerce search business. At the organizational ecosystem\nempowerment level, Kuaishou's proprietary coding tool, CodeFlicker, has driven\nAI-generated code penetration to over 50%. It has also evolved into a\ncompany-wide general-purpose agent, My Flicker, expanding its use scenarios\nfrom engineering coding to universal scenarios for all employees. It now\nempowers functions across R&D, product, operations, data, etc. enhancing\noverall organizational efficiency.\n\nUser and content ecosystem\n\nIn the first quarter of 2026, average DAUs on the Kuaishou App reached 412.7\nmillion, and MAUs reached 771.7 million, while the average daily time spent\nper DAU on the Kuaishou App remained relatively stable. By providing\ndifferentiated premium content, iterating our traffic mechanism, and expanding\nsocial interaction scenarios around the Chinese New Year, we offered users a\nhigher-quality and more heart-warming online community with distinctive\nKuaishou characteristics. In refining our distribution mechanism, we balanced\nuser experience with monetization efficiency, resulting in increased exposure\nfor premium content. Regarding high-quality user growth, we have deepened\nrefined operations across all channels. By integrating growth spending with\nmonetization scenarios and innovating user retention initiatives, we improved\nthe ROI of user growth.\n\nDuring the 2026 Chinese New Year holiday, we created an immersive online\nSpring Festival experience to drive high-quality user growth through\ninnovative, interactive features and an extensive premium content matrix,\nachieving a new historic peak in DAUs. In terms of content ecosystem, we\nlaunched a series of Kuaishou-characteristic content IPs, including Kuaishou\nSpring Festival Gala for the Year of the Horse (快手馬年春晚), Liu\nLaogen Grand Stage (劉老根大舞台), and Northeast Comedy Show\n(東北喜樂會). Leveraging Kling AI's technical capabilities, we released\nAI-generated Chinese New Year animation short play series, The Show Gallops On\n(馬上有戲). These initiatives fostered a vibrant festive atmosphere for\nusers while enhancing the popularity and influence of Kuaishou's native\ncontent. User social interactions increased significantly during the Chinese\nNew Year campaign. The number of user pairs using our social interaction\nproduct Huo zaizai (火崽崽) grew by 25.0% compared to the pre-Spring\nFestival period, and the number of users sending private messages increased by\n15.0%. Our 2026 Chinese New Year-related content generated over 15 billion,\n250 billion and 6.5 billion of live-streaming views, short-video views and\ncumulative likes, respectively.\n\nOnline marketing services\n\nIn the first quarter of 2026, revenue from online marketing services reached\nRMB19.6 billion, up 9.3% year-over-year, with revenue from domestic online\nmarketing services growing by more than 10% year-over-year.\n\nDuring the first quarter of 2026, the content consumption, lifestyle service\nand AI application sectors were the primary drivers of our non-e-commerce\nmarketing services revenue. In the content consumption sector, AI reduced\nproduction costs and lowered the creative threshold for comic-style short\nplays, driving rapid growth in content supply and related marketing demand. As\nof the end of March 2026, the peak of daily marketing spend on Kuaishou\ncomic-style short plays exceeded RMB20 million. Within the lifestyle service\nsector, where clients primarily operate on a lead-based model, we advanced\nmore refined industry operations across over 20 verticals, including\nhealthcare, industrial and agricultural materials, education, and automotive.\nBy tailoring our solutions to the conversion characteristics of different\nindustries, we helped merchants improve customer acquisition efficiency and\ndrove incremental marketing spend across these sectors. At the same time, we\nhelped merchants reach potential customers more efficiently and improve user\nconversion rates through product upgrades. In addition, during the Chinese New\nYear period, demand for marketing placement in the AI application vertical was\nstrong. We effectively captured relevant budgets and optimized deep conversion\noutcomes, enhancing AI application clients' willingness and scale of marketing\nspend on our platform.\n\nIn the first quarter of 2026, we accelerated the penetration of AI across\ndiverse online marketing services scenarios, covering the full pre-placement,\nin-placement and post-placement cycle. This improved clients' placement\nexperience and drove growth in total spending from online marketing services.\nIn the pre-placement stage, the generation of AIGC marketing materials enabled\nmerchants to produce materials at a lower cost and with higher efficiency. As\nof March 2026, AIGC short video marketing materials spending contributed 10.0%\nof total short video online marketing spending on our platform. At the\nin-placement stage, our Universal Auto X (UAX, 全自動投放) placement\nsolutions became the dominant placement tool adopted by most online marketing\nclients. During the first quarter of 2026, we added an Agent feature to our\nUAX placement solutions. By learning from best practices in placement\noptimization and in creative generation and editing across verticals, our UAX\nplacement solutions automatically assisted marketing teams in tasks such as\nmarketing unit creation and bid management, improving overall placement\nefficiency. In the post-placement stage, AI-driven analytics automatically\nreviewed performance data and provided timely feedback to clients, reducing\nmanual operational workload. Meanwhile, our digital employee solutions offered\n24/7 automated responses, enabling clients respond to consumers' inquiries in\ntime, especially during periods such as overnight hours when human support is\nlimited.\n\nFor e-commerce marketing services, in the first quarter of 2026, we further\nadvanced and deepened our omni-domain traffic synergy strategy through\nimproved coordination between organic and commercial traffic pools,\neffectively enhancing e-commerce traffic exposure and business growth of brand\nmerchants. In the first quarter of 2026, we onboarded an increasing number of\nbrand merchants and small- and medium-sized merchants. The number of active\nmarketing merchants increased by 38.0% year-over-year, and marketing spending\nfrom brand merchants increased by 42.0% year-over-year, supporting GMV growth\nfor their self-operated businesses across omni-domain scenarios. Meanwhile, AI\ncapabilities have been fully integrated across our end-to-end e-commerce\nmarketing placement workflows. Through the coordinated efforts of our user\ninterest inference AI agent, creative and product selection AI agent, and\nbidding decision AI agent, both marketing placement precision and efficiency\nimproved. On the product side, with continuous upgrades, our Omni-platform\nMarketing (全站推廣) solutions accounted for a greater share of total\nspending from e-commerce marketing services, becoming the primary placement\noffering for our e-commerce marketing services. Our Net Transaction ROI\n(淨成交ROI) product helped merchants optimize their net transaction GMV,\nenabling more stable settlement outcomes. In the first quarter of 2026, its\nclient penetration rate reached 45.0% across industries, and it meaningfully\nreduced product return rates. Meanwhile, our Full-store Hosting (全店託管)\nfreed merchants from single-product placement constraints through one-click\nfull-store placement, reducing manpower for merchants.\n\nE-commerce\n\nIn 2026, we advance our e-commerce strategy through three key upgrades: paying\nuser growth, supply acquisition, and deeper integration of e-commerce and\ncommercialization traffic. This will enable merchants to better capture the\nsynergies across omni-domain scenarios, amplifying growth momentum. In the\nfirst quarter of 2026, by steadily advancing this strategy, our e-commerce\nbusiness achieved sustainable, healthy growth. We remain committed to\nstrengthening omni-domain traffic synergies and refining operations across the\nfull buyer lifecycle to drive long-term growth in our e-commerce buyer base.\n\nOn the supply side, this year we will focus on onboarding brand merchants and\nnew merchants, while continuously improving product quality. For brand\nmerchants, we continued to advance the Voyage Initiative\n(乘風計劃) launched in the fourth quarter of 2025, targeting top-tier\nbrands across diverse verticals and providing them with multi-dimensional\nsupport in traffic, operations and brand building. In the first quarter of\n2026, driven by the incremental growth from new brand merchants, brand\nmerchants' contribution to overall e-commerce GMV and monetization continued\nto increase, maintaining strong year-over-year growth. Meanwhile, existing\nmerchants continued to scale and stabilize their operations, further\nstrengthening the health and resilience of our e-commerce supply ecosystem. In\nterms of new merchant acquisition, we worked closely with our service\nproviders across 100 targeted priority industrial zones nationwide. In the\nfirst quarter of 2026, the number of new merchants onboarded in these\nindustrial zones increased by 41.8% year-over-year. In addition, we provided\ncomprehensive support for new merchants across their full lifecycle, from\nonboarding and early growth to scaling. In the first quarter of 2026, small-\nand medium-sized merchants grew significantly, leading to a healthier merchant\nstructure and more diversified supply.\n\nIn the first quarter of 2026, we further improved our KOL ecosystem and\nstructure, enhancing the supply of high-quality e-commerce content. We\ncontinued to strengthen support for mid-tier KOLs. In January 2026, we\nlaunched the Treasure Streamer Spotlight Initiative\n(寶藏主播閃光計劃), leveraging platform resources to identify and\nsupport outstanding KOLs across verticals, helping them scale up. In addition,\nwe further refined our incentive policies, which significantly increased KOL\nstreaming frequency. In the first quarter of 2026, the number of average daily\nactive streamers hosting live sessions with over 10,000 followers grew by\n10.1% year-over-year. Through subsidy initiatives such as our KOL Blockbuster\nInitiative (達人爆品計劃), along with continued optimization of our\ndistribution product allocation capabilities to empower KOLs, we improved the\nefficiency of KOL product matching. In addition, we hosted offline matchmaking\nevents between merchants and KOLs and introduced tiered services for KOLs at\ndifferent levels, enabling high-precision distribution matching. In the first\nquarter of 2026, the number of merchant-KOL matches in the distribution pool\nincreased by 47.0% year-over-year, while the number of active KOLs\nparticipating in distribution grew by 23.5% year-over-year.\n\nIn the first quarter of 2026, our e-commerce omni-domain operations ecosystem\ncontinued to unleash strong growth momentum. Content-based scenarios continued\nto serve as an important driver of user demand. As user consumption journeys\nincreasingly extended into browsing, search and shopping mall mode\nexploration, an omni-domain consumption mindset among users is gradually\ntaking shape. In the first quarter of 2026, e-commerce intent-driven search\npage views grew 11.0% year-over-year, while new and returning buyers from the\nshopping mall tab increased by approximately 36.0% in March 2026, indicating\ne-commerce users' stronger active shopping intent. In addition, richer supply\neffectively drove an increase in purchase frequency among pan-shelf-based\ne-commerce users.\n\nIn the first quarter of 2026, we leveraged end-to-end AI capabilities to drive\ntangible operating efficiency gains for merchants and upgraded user\nexperience. Powered by large model capabilities, we comprehensively upgraded\nthe entire shopping decision-making processes, from demand activation, search\nfulfillment, to live streaming guided shopping, and subsidy distribution. We\nlaunched an intelligent search upgrade featuring AI agent-based one-stop\nintelligent shopping assistant. This transformed search from a user-initiated\nproduct lookup into an AI-led recommendation experience, significantly\nimproving search conversion efficiency. In addition, leveraging AI to empower\nsales operations, we optimized the process of guided shopping in live\nstreaming rooms. In live streaming scenarios, real-time product highlight\nsummarization and AI-powered auto-reply hosting feature generated over RMB10\nmillion in incremental GMV per day for merchants. Furthermore, our AI-driven\ncoupon distribution tool enabled high-precision, personalized marketing,\neffectively reducing merchant operating costs.\n\nLive streaming\n\nIn the first quarter of 2026, live streaming revenue reached RMB8.5 billion.\nWe remained committed to the health of the live streaming ecosystem as our\ncore priority, focusing on supply quality improvement, content enrichment and\nAI innovation to build a sustainable live streaming ecosystem for long-term\ngrowth. We continued to support high-quality content categories, such as\npremium group live streaming, and strengthened the professional operations of\npartner talent agencies, solidifying the foundation of live streaming supply.\nOn the product and technology front, AI capabilities further empowered live\nstreaming rooms. AI tools, including AI Interaction Assistants\n(AI互動助手), Digital Avatar Solutions (數字分身服務) and AI\nPrivate Messaging (AI私信) improved streamers' service efficiency and\nenhanced viewer engagement experience. Kling AI's video generation strengths\nsignificantly empowered live streaming gift creations, accelerating AI gift\nrollout and enriching creative expression while boosting users' willingness to\npay. In the first quarter of 2026, the AI Universe (AI萬象) series gifts\nwith customizable special effects sent by users reached 1.1 million.\n\nIn terms of content, we launched a diverse range of live streaming interactive\nfeatures during the Chinese New Year. The Kuaishou Mastermind\n(快手狀元) quiz series featured over 100 AI digital human streamers\ngenerated by Kling AI, attracting nearly 50 million users to actively\nparticipate. At the same time, we further strengthened our gaming content\necosystem. During the Chinese New Year, we launched the Spring Festival Player\nCarnival (新春玩家狂歡節) campaign, partnering with over 50 game\ndevelopers. Moreover, our esports business, a key strategic pillar of our\ngaming ecosystem, achieved a breakthrough. In April 2026, Kuaishou's KSG team\nwon the King Pro League Spring 2026 Championship, driving the further\nevolution of the gaming ecosystem.\n\nOverseas\n\nIn the first quarter of 2026, we continuously explored high-value growth\nstrategies for our overseas business, while responding to market changes with\nbusiness resilience. In terms of traffic, we continued optimizing user\nacquisition efficiency and user growth mix to cultivate a community ecosystem\nrooted in real life. Meanwhile, we further expanded content verticals favored\nby our core users to deepen their engagement. Brazil, our key market for\noverseas development, maintained steady average DAUs and average daily time\nspent per DAU quarter-over-quarter. For online marketing services, we\nconsistently strengthened our advertising product capabilities by leveraging\nAI to fully empower our end-to-end marketing workflows, improving placement\nefficiency and performance stability for clients. At the same time, we\ncapitalized on our strengths as a content platform, localizing commercial\ncreatives to unlock incremental advertising budgets, particularly from core\nsectors led by cross-border ecommerce players. Our e-commerce business in\nBrazil achieved solid year-over-year growth in GMV and order volume in the\nfirst quarter of 2026. By strengthening key categories and high-quality\nproduct supply, we grew conversion and repeat purchase rates. Meanwhile,\nthrough AI-assisted content production and content recommendation, we\ncontinuously optimized operational efficiency and profit-generating ability.\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\n\nInvestor Relations\nEmail: ir@kuaishou.com (mailto:ir@kuaishou.com)\n\n \n\n \n CONDENSED CONSOLIDATED INCOME STATEMENT\n\n Unaudited\n Three Months Ended\n March 31, December 31, March 31,\n\n2026\n2025\n2025\n RMB'Million RMB'Million RMB'Million\n Revenues 33,716 39,568 32,608\n Cost of revenues (16,467) (17,749) (14,816)\n Gross profit 17,249 21,819 17,792\n Selling and marketing expenses (10,333) (11,409) (9,897)\n Administrative expenses (766) (930) (828)\n Research and development expenses (3,621) (4,143) (3,298)\n Other income 245 74 53\n Other gains, net 821 379 437\n Operating profit 3,595 5,790 4,259\n Finance expense, net (173) (31) (24)\n Share of (losses)/profits of investments (13) (9) 2\n accounted for using the equity method\n Profit before income tax 3,409 5,750 4,237\n Income tax expenses (504) (516) (258)\n Profit for the period 2,905 5,234 3,979\n Attributable to:\n — Equity holders of the Company 2,903 5,229 3,978\n — Non-controlling interests 2 5 1\n 2,905 5,234 3,979\n\n \n\n \n CONDENSED CONSOLIDATED BALANCE SHEET\n\n Unaudited Audited\n As of March 31, As of December 31,\n\n2026\n 2025\n RMB'Million RMB'Million\n ASSETS\n Non-current assets\n Property and equipment 30,214 22,869\n Right-of-use assets 9,174 8,545\n Intangible assets 982 986\n Investments accounted for using the equity method 136 149\n Financial assets at fair value through profit or loss 29,827 23,747\n Derivative financial instruments 448 353\n Other financial assets at amortized cost - 35\n Deferred tax assets 5,732 5,585\n Long-term time deposits 22,660 22,015\n Other non-current assets 6,296 2,671\n 105,469 86,955\n\n Current assets\n Trade receivables 7,592 8,127\n Prepayments, other receivables and other current assets 7,439 7,028\n Financial assets at fair value through profit or loss 50,448 42,323\n Derivative financial instruments 11 1\n Other financial assets at amortized cost - 9\n Short-term time deposits 6,380 8,630\n Restricted cash 266 251\n Cash and cash equivalents 11,405 11,180\n 83,541 77,549\n\n Total assets 189,010 164,504\n\n \n\n \n CONDENSED CONSOLIDATED BALANCE SHEET\n\n Unaudited Audited\n As of March 31, As of December 31,\n\n2026\n 2025\n RMB'Million RMB'Million\n EQUITY AND LIABILITIES\n Equity attributable to equity holders of the Company\n Share capital - -\n Share premium 265,202 265,628\n Treasury shares (408) (602)\n Other reserves 38,836 38,873\n Accumulated losses (221,438) (224,341)\n 82,192 79,558\n Non-controlling interests 28 26\n\n Total equity 82,220 79,584\n\n Non-current liabilities\n Borrowings 24,791 11,098\n Derivative financial instruments 271 30\n Lease liabilities 6,644 5,977\n Deferred tax liabilities 304 241\n Other non-current liabilities 134 39\n 32,144 17,385\n\n Current liabilities\n Accounts payables 27,919 27,209\n Other payables and accruals 34,125 29,160\n Advances from customers 5,166 4,848\n Borrowings 2,871 1,968\n Income tax liabilities 514 388\n Lease liabilities 4,051 3,962\n 74,646 67,535\n\n Total liabilities 106,790 84,920\n\n Total equity and liabilities 189,010 164,504\n\n \n\n \n Financial Information by Segment\n\n Unaudited Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total Domestic Overseas Unallocated Total\n items items items\n RMB'Million RMB'Million RMB'\n Mill\n ion\n Revenues 32,554 1,162 - 33,716 38,263 1,305 - 39,568 31,293 1,315 - 32,608\n Operating profit/(loss) 3,093 (31) 533 3,595 6,065 (59) (216) 5,790 4,345 28 (114) 4,259\n\n \n\n \n Reconciliation of Non-IFRS Accounting Standards Measures to the\n Nearest IFRS Accounting\n Standards Measures\n\n Unaudited\n Three Months Ended\n March 31, December 31, March 31,\n 2026 2025 2025\n RMB'Million RMB'Million RMB'Million\n\n Profit for the period 2,905 5,234 3,979\n Adjusted for:\n Share-based compensation expenses 533 669 604\n Net fair value changes on investments((1)) (64) (440) (3)\n\n Adjusted net profit 3,374 5,463 4,580\n\n Adjusted net profit 3,374 5,463 4,580\n Adjusted for:\n Income tax expenses 504 516 258\n Depreciation of property and equipment 1,364 1,205 782\n Depreciation of right-of-use assets 799 814 768\n Amortization of intangible assets 16 8 22\n Finance expense, net 173 31 24\n\n Adjusted EBITDA 6,230 8,037 6,434\n\n \n\n \n Note:\n\n (1) Net fair value changes on investments represents net fair value\n(gains)/losses on financial assets at fair value through profit or loss of our\ninvestments in listed and unlisted entities, net (gains)/losses on deemed\ndisposals of investments and impairment provision for investments, which is\nunrelated to our core business and operating performance and subject to market\nfluctuations, and exclusion of which provides investors with more relevant and\nuseful information to evaluate our performance.\n\n \n\nView original\ncontent:https://www.prnewswire.com/news-releases/kuaishou-technology-announces-first-quarter-2026-unaudited-financial-results-302782888.html\n(https://www.prnewswire.com/news-releases/kuaishou-technology-announces-first-quarter-2026-unaudited-financial-results-302782888.html)\n\nSOURCE Kuaishou Technology\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-05-27T08:38:41.262712958Z","server_sent_at_ms":1779871121262},"received_at":"2026-05-27T08:38:41.418Z","source_url":"https://www.prnewswire.com/news-releases/kuaishou-technology-announces-first-quarter-2026-unaudited-financial-results-302782888.html"},"analysis":{"id":"35341","press_release_id":"45906","analysis_json":{"industry":{"label":"Interactive Media & Services","sector":"Communication Services"},"redFlags":["GAAP profit declined 27% YoY","Adjusted net profit declined 26% YoY","Live streaming revenue declined 13.5% YoY","Overseas segment swung from profit to loss"],"eventType":"earnings","narrative":"Kuaishou reported Q1 2026 revenue of RMB 33.7 billion, up 3.4% year-over-year, driven by a 9.3% increase in online marketing services and a 15.9% surge in other services, offsetting a 13.5% decline in live streaming revenue.\n\nProfitability contracted in the near term, with GAAP profit falling 27% to RMB 2.9 billion and adjusted net profit dropping 26% to RMB 3.4 billion, reflecting heavy investment in AI infrastructure and user growth.\n\nThe standout metric was Kling AI, which generated over RMB 650 million in revenue in Q1, representing more than 300% year-over-year growth, and reached an annualized revenue run rate of approximately USD 500 million by March 2026.\n\nUser engagement remained robust with average DAUs rising 1.2% to 412.7 million and MAUs jumping 8.4% to 771.7 million, while the company repurchased HKD 854 million worth of shares during the quarter.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Kuaishou's AI pivot is paying off: Kling AI revenue up 300%+ YoY, offsetting near-term margin pressure from heavy investment."},"keyFigures":{"eps":0,"epsBeat":0,"revenue":33716000000,"drugName":"","guidance":"","revenueYoy":"3.4%","dealValueUsd":0,"phaseOfTrial":"","offeringPrice":0,"sharesOffered":0,"customDimensions":{"daus":412700000,"maus":771700000,"gross_margin":"51.2%","gross_profit":17249000000,"adjusted_ebitda":6230000000,"kling_ai_arr_usd":500000000,"kling_ai_revenue":650000000,"operating_profit":3595000000,"profit_for_period":2905000000,"shares_repurchased":17956000,"adjusted_net_margin":"10.0%","adjusted_net_profit":3374000000,"kling_ai_revenue_yoy":"300%","repurchase_value_hkd":854000000,"total_available_funds":117700000000}},"quotedText":"In the first quarter of 2026, by advancing our AI strategy, we continued to foster a thriving content ecosystem and drive commercial growth through technological innovation, achieving a solid start to the year.","namedEntities":{"people":[{"name":"Cheng Yixiao","role":"Co-founder, Chairman, and Chief Executive Officer"}],"products":["Kuaishou APP","Kling AI","Kling AI 3.0","KAT-Coder-Pro V2","OneSearch V2","CodeFlicker","My Flicker","Universal Auto X","Omni-platform Marketing","Net Transaction ROI","Full-store Hosting","AI Interaction Assistants","Digital Avatar Solutions","AI Private Messaging","AI Universe"],"companies":[{"name":"Kuaishou Technology","ticker":"1024","relationship":"filer"}],"dollarAmounts":[{"amount":"RMB33.7 billion","context":"Q1 2026 total revenue"},{"amount":"RMB32.6 billion","context":"Q1 2025 total revenue"},{"amount":"RMB17.2 billion","context":"Q1 2026 gross profit"},{"amount":"RMB17.8 billion","context":"Q1 2025 gross profit"},{"amount":"RMB2.9 billion","context":"Q1 2026 profit for the period"},{"amount":"RMB4.0 billion","context":"Q1 2025 profit for the period"},{"amount":"RMB3.4 billion","context":"Q1 2026 adjusted net profit"},{"amount":"RMB4.6 billion","context":"Q1 2025 adjusted net profit"},{"amount":"RMB3.1 billion","context":"Q1 2026 domestic operating profit"},{"amount":"RMB4.3 billion","context":"Q1 2025 domestic operating profit"},{"amount":"RMB31 million","context":"Q1 2026 overseas operating loss"},{"amount":"RMB28 million","context":"Q1 2025 overseas operating profit"},{"amount":"HKD854 million","context":"aggregate consideration for share repurchases"},{"amount":"RMB650 million","context":"Q1 2026 Kling AI revenue"},{"amount":"USD500 million","context":"Kling AI annualized revenue run rate (ARR)"},{"amount":"RMB19.6 billion","context":"Q1 2026 online marketing services revenue"},{"amount":"RMB8.5 billion","context":"Q1 2026 live streaming revenue"},{"amount":"RMB5.6 billion","context":"Q1 2026 other services revenue"},{"amount":"RMB3.6 billion","context":"Q1 2026 operating profit"},{"amount":"RMB6.2 billion","context":"Q1 2026 adjusted EBITDA"},{"amount":"RMB117.7 billion","context":"total available funds as of March 31, 2026"},{"amount":"RMB20 million","context":"peak daily marketing spend on comic-style short plays"},{"amount":"RMB10 million","context":"incremental GMV per day from AI-powered auto-reply hosting"}]},"materialImpact":{"score":4,"reasoning":"Revenue grew 3.4% YoY, but GAAP profit fell 27% and adjusted net profit fell 26% YoY. However, the release highlights a massive 300%+ YoY growth in Kling AI revenue (RMB 650M) and strong user growth (DAU +1.2%, MAU +8.4%), signaling a successful pivot to AI monetization despite near-term margin pressure."},"tickerRelevance":{"others":[],"primary":"1024"},"globalImportance":65,"audienceRelevance":70,"eventTypeSecondary":["product_launch","buyback"],"importanceComponents":{"tickerTier":"large-cap","aiNarrative":"high","eventGravity":"earnings_with_strategic_pivot","sectorWeight":"high","householdBrandBoost":"moderate","marketCapAdjustment":"positive","retailFavoriteBoost":"low"}},"event_type":"earnings","event_type_secondary":["product_launch","buyback"],"sentiment":"mixed","material_impact_score":4,"narrative":"Kuaishou reported Q1 2026 revenue of RMB 33.7 billion, up 3.4% year-over-year, driven by a 9.3% increase in online marketing services and a 15.9% surge in other services, offsetting a 13.5% decline in live streaming revenue.\n\nProfitability contracted in the near term, with GAAP profit falling 27% to RMB 2.9 billion and adjusted net profit dropping 26% to RMB 3.4 billion, reflecting heavy investment in AI infrastructure and user growth.\n\nThe standout metric was Kling AI, which generated over RMB 650 million in revenue in Q1, representing more than 300% year-over-year growth, and reached an annualized revenue run rate of approximately USD 500 million by March 2026.\n\nUser engagement remained robust with average DAUs rising 1.2% to 412.7 million and MAUs jumping 8.4% to 771.7 million, while the company repurchased HKD 854 million worth of shares during the quarter.","key_figures":{"eps":0,"epsBeat":0,"revenue":33716000000,"drugName":"","guidance":"","revenueYoy":"3.4%","dealValueUsd":0,"phaseOfTrial":"","offeringPrice":0,"sharesOffered":0,"customDimensions":{"daus":412700000,"maus":771700000,"gross_margin":"51.2%","gross_profit":17249000000,"adjusted_ebitda":6230000000,"kling_ai_arr_usd":500000000,"kling_ai_revenue":650000000,"operating_profit":3595000000,"profit_for_period":2905000000,"shares_repurchased":17956000,"adjusted_net_margin":"10.0%","adjusted_net_profit":3374000000,"kling_ai_revenue_yoy":"300%","repurchase_value_hkd":854000000,"total_available_funds":117700000000}},"named_entities":{"people":[{"name":"Cheng Yixiao","role":"Co-founder, Chairman, and Chief Executive Officer"}],"products":["Kuaishou APP","Kling AI","Kling AI 3.0","KAT-Coder-Pro V2","OneSearch V2","CodeFlicker","My Flicker","Universal Auto X","Omni-platform Marketing","Net Transaction ROI","Full-store Hosting","AI Interaction Assistants","Digital Avatar Solutions","AI Private Messaging","AI Universe"],"companies":[{"name":"Kuaishou Technology","ticker":"1024","relationship":"filer"}],"dollarAmounts":[{"amount":"RMB33.7 billion","context":"Q1 2026 total revenue"},{"amount":"RMB32.6 billion","context":"Q1 2025 total revenue"},{"amount":"RMB17.2 billion","context":"Q1 2026 gross profit"},{"amount":"RMB17.8 billion","context":"Q1 2025 gross profit"},{"amount":"RMB2.9 billion","context":"Q1 2026 profit for the period"},{"amount":"RMB4.0 billion","context":"Q1 2025 profit for the period"},{"amount":"RMB3.4 billion","context":"Q1 2026 adjusted net profit"},{"amount":"RMB4.6 billion","context":"Q1 2025 adjusted net profit"},{"amount":"RMB3.1 billion","context":"Q1 2026 domestic operating profit"},{"amount":"RMB4.3 billion","context":"Q1 2025 domestic operating profit"},{"amount":"RMB31 million","context":"Q1 2026 overseas operating loss"},{"amount":"RMB28 million","context":"Q1 2025 overseas operating profit"},{"amount":"HKD854 million","context":"aggregate consideration for share repurchases"},{"amount":"RMB650 million","context":"Q1 2026 Kling AI revenue"},{"amount":"USD500 million","context":"Kling AI annualized revenue run rate (ARR)"},{"amount":"RMB19.6 billion","context":"Q1 2026 online marketing services revenue"},{"amount":"RMB8.5 billion","context":"Q1 2026 live streaming revenue"},{"amount":"RMB5.6 billion","context":"Q1 2026 other services revenue"},{"amount":"RMB3.6 billion","context":"Q1 2026 operating profit"},{"amount":"RMB6.2 billion","context":"Q1 2026 adjusted EBITDA"},{"amount":"RMB117.7 billion","context":"total available funds as of March 31, 2026"},{"amount":"RMB20 million","context":"peak daily marketing spend on comic-style short plays"},{"amount":"RMB10 million","context":"incremental GMV per day from AI-powered auto-reply hosting"}]},"model_name":"qwen3_6_27b_awq","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-05-27T08:45:52.061Z","global_importance":65,"audience_relevance":70,"importance_components":{"tickerTier":"large-cap","aiNarrative":"high","eventGravity":"earnings_with_strategic_pivot","sectorWeight":"high","householdBrandBoost":"moderate","marketCapAdjustment":"positive","retailFavoriteBoost":"low"}},"durationMs":36288,"modelName":"george-droid-qwen-72b"}}