Kunlun(SZ:300418) Xin Lang Cai Jing·2025-11-08 06:40Core Viewpoint - The company reported a significant revenue growth in Q3 2025, achieving a revenue of 20.72 billion yuan, marking a year-on-year increase of 56.16%, while also turning profitable in the quarter with a net profit of 1.90 billion yuan, a substantial increase of 180.13% year-on-year [1][2][7] Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of 58.05 billion yuan, representing a year-on-year growth of 51.63%. However, the net profit attributable to shareholders was -6.65 billion yuan, a decrease of 6.19% year-on-year, and the non-recurring net profit was -6.74 billion yuan, a decline of 3.88% year-on-year [1][2] - The gross margin for the first three quarters was 69.91%, down 6.99 percentage points year-on-year, while the net margin was -18.72%, an increase of 4.57 percentage points year-on-year [3] Business Segments - The advertising business generated revenue of 14.33 billion yuan in the first half of 2025, up 61.05% year-on-year. The short drama platform generated 5.83 billion yuan, while search and social network businesses achieved revenues of 6.91 billion yuan and 6.79 billion yuan, respectively [2] - The company’s overseas business saw strong growth, with revenue reaching 54.10 billion yuan, a year-on-year increase of 58%, accounting for 93.3% of total revenue [4] AI Strategy and Development - The company is advancing its "All in AGI" strategy, with significant achievements in model technology. The Skywork-Reward-V2 series leads in seven major evaluations, and the Skywork-R1V3.0 model has achieved optimal results in open-source evaluations [5] - The company is accelerating the commercialization of AI applications, with core products expanding. The SkyworkDeepResearchAgentV2 engine has been upgraded, and the SkyReels platform is set to launch a new version for AI video creation [6] Investment Outlook - The company’s Q3 performance indicates operational improvement and initial success in AI commercialization. The growth in overseas businesses supports the AI strategy investments. The AI business is expected to become a core growth driver in the medium to long term [7]