Kuaishou Technology (1024) investor relations material

Executive summary

• Achieved strong growth in 2025, driven by accelerated AI strategy execution, leading video generation models, and Kling AI's global leadership, supporting high-quality growth in user scale, revenue, and profitability.

• Revenues for 2025 rose 12.5% year-over-year to RMB 142.8 billion, driven by growth in online marketing, live streaming, e-commerce, and AI businesses.

• Q4 2025 average DAUs reached 408 million, up year-over-year; full-year average DAUs were 410 million.

• Board recommended a final dividend of HKD 0.69 per share, totaling approximately HKD 3 billion, reflecting confidence in long-term growth and strong cash flow.

• Adjusted net profit grew 16.5% to RMB 20.6 billion, and adjusted EBITDA rose 20.5% to RMB 29.8 billion.

Financial highlights

• Q4 2025 total revenue rose 11.8% year-over-year to RMB 39.6 billion; adjusted net profit increased 16.2% to RMB 5.5 billion.

• Full-year 2025 revenue grew 12.5% year-over-year to RMB 142.8 billion; adjusted net profit up 16.5% to RMB 20.6 billion, with an adjusted net margin of 14.5%.

• Online marketing services revenue in Q4 increased 14.5% year-over-year to RMB 23.6 billion; e-commerce and AI business revenue up 28% to RMB 6.3 billion.

• Live streaming revenue in Q4 was RMB 9.7 billion; gross profit margin for Q4 was 55.1%, up 1.1 percentage points year-over-year.

• Cash and equivalents totaled RMB 104.9 billion at year-end; Q4 net cash from operating activities was RMB 7.3 billion.

Outlook and guidance

• Plans to double Kling AI revenue in 2026, with continued investment in AI model upgrades and expansion of modalities for enhanced video generation.

• E-commerce strategy for 2026 focuses on supply-side reforms, user acquisition, and resource integration, targeting steady, high-quality growth.

• Online marketing growth in 2026 expected from lifestyle services, comic-style short plays, and AI applications.

• Group CapEx for 2026 projected at RMB 26 billion, up RMB 11 billion year-over-year, mainly for AI and computing infrastructure.

• Ongoing investments in AI expected to drive operational efficiency and long-term growth.