Core Insights - Kuaishou reported a total revenue of 126.9 billion RMB for the year 2024, marking an 11.8% year-on-year growth, with adjusted net profit increasing by 72.5% to 17.7 billion RMB [1] - The focus of investor inquiries during the earnings call shifted towards Kuaishou's advancements in AI, particularly the commercialization and investment in AI technologies [1] Group 1: AI Strategy and Developments - Kuaishou's AI model, Keling AI, is positioned as a new foundational infrastructure for video creation in the AI era, aimed at empowering both professional and amateur creators [2] - The AI model is expected to reduce the cost of producing short video marketing materials by 60%-70% or more, with plans to upgrade the existing commercial engine to an AI-driven model [2] - The company plans to significantly increase capital expenditures (Capex) and R&D investments over the next three years, which may impact profit margins in the short term but is seen as a long-term investment in reshaping the video production and consumption industry [2] Group 2: Future Investment Plans - Kuaishou's AI-related capital expenditures are expected to continue growing in 2025, although the scale of growth will be manageable [3] - The company has already procured training computing power in advance for 2023 and 2024, with plans to continue this in 2025 to ensure Keling's technological leadership [3] - Adjustments will be made to AI-related capital expenditures based on the commercialization progress of Keling, with a projected impact of 1%-2% on adjusted net profit margins in 2025 [4] Group 3: Keling AI Progress - Keling AI was launched in June 2024, attracting over one million users within a month, with updates released approximately every two weeks [5] - The latest version, Keling 1.6, shows significant improvements in video quality and responsiveness to textual descriptions, ranking among the top video generation models globally [5] - Keling AI has generated over 100 million RMB in cumulative revenue as of February 2025, with partnerships established with thousands of domestic and international companies, including Xiaomi and Amazon Web Services [5]