Hua Er Jie Jian Wen·2025-08-22 02:41Core Insights - Kuaishou's Q2 performance exceeded expectations with a revenue increase of 13% year-on-year to 35 billion yuan, and adjusted net profit grew by 20% [1] - The AI video generation application "Keling" generated 250 million yuan in revenue for Q2, marking a 67% quarter-on-quarter increase, with the full-year revenue guidance for 2025 raised to 125 million USD, doubling previous expectations [1] - Multiple investment banks believe Kuaishou's guidance for Keling's profitability is conservative, with JPMorgan noting potential cash receipts exceeding 300 million yuan for the quarter [1][2] Revenue Performance - Kuaishou's core business, online marketing services, saw a 13% year-on-year revenue growth, accelerating from 8% in Q1, driven by external advertising and e-commerce [3] - E-commerce GMV grew by 18% year-on-year, surpassing Q1's 15% growth, with significant contributions from shelf e-commerce and short video e-commerce [3] - Barclays noted that Kuaishou achieved growth above industry averages in both advertising and e-commerce sectors, benefiting from AI-optimized marketing solutions [3] AI Investment Strategy - Kuaishou increased its annual capital expenditure to 12 billion yuan, primarily for Keling-related investments, while maintaining a commitment to limit the impact of AI investments on overall profitability to 1-2 percentage points [5] - JPMorgan highlighted Kuaishou's ability to maintain stable profit margins while investing in AI, with adjusted operating profit margins increasing by 2.2 percentage points [5] - Kuaishou anticipates further cost-saving opportunities in training and inference for Keling, which will contribute to sustainable growth across its business ecosystem [5]