Kunlun(SZ:300418) Sou Hu Cai Jing·2025-08-27 01:28Core Viewpoint - Kunlun Wanwei's financial report for the first half of 2025 shows significant revenue growth but also the largest net profit loss in nearly a decade, raising concerns about its "All in AI" strategy and product direction [2][3][11]. Financial Performance - Revenue for the first half of 2025 reached 3.733 billion yuan, a year-on-year increase of 49.23% [4]. - Net profit turned into a loss of 859 million yuan, a decline of 110.90% compared to the previous year, marking the highest loss since the company's listing in 2015 [2][3]. - Operating costs increased by 106.21% to approximately 1.125 billion yuan, while sales expenses rose by 95.57% to about 1.828 billion yuan, both outpacing revenue growth [3][4]. Business Segments - The industry business revenue reached 3.701 billion yuan, up 52.01% year-on-year, but operating costs surged by 108.98%, leading to an 8.27% decline in gross margin [5]. - Among the four main business segments—advertising, short dramas, search, and overseas social networking—advertising revenue increased by 61.05%, but costs rose by 90.16%, resulting in an 8.48% drop in gross margin [5]. Strategic Shifts - The "Tiangong AI" product underwent a significant revision, shifting focus from AI search and dialogue to the Office productivity sector, which has led to a drastic decline in daily downloads from nearly 40,000 to around 770 [7][8]. - The company's aggressive investment in AI has not yet translated into substantial revenue, with AI business revenue only accounting for 0.68% of total revenue in 2024 [7][8]. Market Position and Challenges - The competitive landscape for AI services is intensifying, with established players like WPS AI and Quark posing significant challenges for Kunlun Wanwei's entry into the AI Office market [10]. - The company's stock price has dropped by 40.66% from its peak, reflecting declining investor confidence amid increasing losses and strategic uncertainties [12].