Kunlun(SZ:300418) Cai Jing Wang·2025-10-30 14:27Core Viewpoint - Kunlun Wanwei has successfully returned to profitability in Q3 2025, driven by strategic investments in AI and a strong revenue growth trajectory, indicating a positive transformation in its business model [1][2][10]. Financial Performance - For the first three quarters of 2025, Kunlun Wanwei achieved a revenue of 5.805 billion yuan, representing a year-on-year increase of 51.63%. In Q3 alone, revenue reached 2.072 billion yuan, up 56.16% year-on-year, with net profit attributable to shareholders rising to 190 million yuan, a 180.13% increase [1][2][10]. - The overall gross margin for the company stood at 67%, maintaining a high level [2]. AI Strategy and Technological Development - The company has been focusing on solidifying its technological foundation and accelerating the commercialization of its AI business, which is now entering a harvest phase [2][3]. - R&D expenses increased from 1.144 billion yuan to 1.211 billion yuan in the first three quarters, reflecting the company's commitment to building an AI ecosystem [3][5]. Product Innovations and Market Position - Kunlun Wanwei has launched several advanced AI models, including the Skywork series, which have achieved top rankings in various evaluations, showcasing the company's strength in AI research and application [4][5]. - The company's short drama platform, DramaWave, has seen significant growth, ranking third in overseas short drama platform revenue as of August 2025, with over 4 million downloads in a single month [5][6]. Global Expansion and Revenue Growth - The company reported overseas revenue of 5.4 billion yuan for the first three quarters of 2025, a year-on-year increase of 58%, with overseas revenue accounting for 93% of total revenue [10][11]. - The global market for short dramas is projected to reach 2.473 billion USD in 2025, indicating a robust growth opportunity for Kunlun Wanwei's international business [10]. Future Outlook - The company aims to leverage its unique global platform advantages to integrate AI technology with various business sectors, fostering a new growth paradigm [11][12]. - Analysts suggest that as the company transitions from investment to revenue generation, its growth potential and strategic execution capabilities are likely to be reassessed positively by the market [11][12].