Financial Data and Key Metrics Changes - Total revenue for Q3 2025 rose by 14.2% year over year to RMB 35.6 billion, driven by growth across all business segments [3][29][30] - Adjusted net profit increased by 26.3% year over year to RMB 5 billion, with an adjusted net margin of 14% [3][33] - Operating profit surged by 69.9% year over year to RMB 5.3 billion, reflecting improved operating efficiency [29][31] Business Line Data and Key Metrics Changes - Revenue from online marketing services reached RMB 20.1 billion, up 14% year over year, with growth attributed to AI-driven enhancements in marketing solutions [12][30][46] - E-commerce GMV grew by 15.2% year over year to RMB 385 billion, supported by merchant incentives and traffic optimization [17][18] - Live streaming revenue increased by 2.5% year over year to RMB 9.6 billion, driven by high-quality content and AI innovations [24][31] Market Data and Key Metrics Changes - Average Daily Active Users (DAUs) on the Kuaishou app reached 416 million, marking the third consecutive quarter of record highs [3][10] - Monthly Active Users (MAUs) reached 731 million, reflecting sustained user growth and engagement [9][10] - Total spending from online marketing services driven by AI-generated marketing materials exceeded RMB 3 billion in Q3 [9] Company Strategy and Development Direction - The company continues to advance its AI strategy, focusing on scenario-based applications and innovative use cases to enhance operational efficiency and profitability [3][4] - Kuaishou aims to empower creators through its Kling AI platform, which has achieved significant advancements in video generation capabilities [5][6] - The strategic focus is on AI-powered film and television production, with plans to expand applications beyond traditional media [36][37] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects, emphasizing the importance of AI in driving innovation and operational efficiency [33][34] - The competitive landscape for video generation AI is expected to evolve rapidly, with Kuaishou positioning itself to leverage its technological advancements [35][36] - Future investments will prioritize user needs and AI capabilities to enhance the overall business ecosystem [28][34] Other Important Information - The company declared a special dividend of HKD 2 billion in Q3, reflecting confidence in its financial position [33] - Total cash and cash equivalents amounted to RMB 106.6 billion as of September 30, 2025, indicating a robust balance sheet [33] Q&A Session Summary Question: Insights on Kling AI's competitive strategy - Management highlighted the attractiveness of the video generation market and the ongoing innovation driven by increasing competition [35] - The focus remains on empowering creators and enhancing technology for film and television production [36] Question: AI's role in content ecosystem and operational efficiency - AI technologies have been integrated across Kuaishou's operations, improving content understanding, generation, and recommendations [41][43] - The company is leveraging AI to enhance customer service efficiency, with over 70% of inquiries handled by AI systems [43] Question: Online marketing services revenue acceleration - Online marketing services revenue grew by 14% year over year, driven by increased impressions and higher CPM due to AI enhancements [46] - The company continues to optimize its marketing solutions to improve conversion rates and client spending [49]

Financial Data and Key Metrics Changes - Total revenue increased by 13.1% year over year to RMB 35 billion in Q2 2025, with adjusted net profit rising by 20.1% to RMB 5.6 billion, achieving a margin of 16% [7][37][38] - Gross profit grew by 13.8% year over year to RMB 19.5 billion, with a gross profit margin of 55.7%, reflecting a 0.4 percentage point increase year over year [40][41] - Selling and marketing expenses rose by 4.6% year over year to RMB 10.5 billion, accounting for 30% of total revenue, down from 32.4% in the previous year [42] Business Line Data and Key Metrics Changes - Revenue from online marketing services reached RMB 19.8 billion, up 12.8% year over year, driven by enhanced AI capabilities [38][39] - E-commerce GMV rose by 17.6% year over year, with the number of average monthly paying users reaching 134 million [22][23] - Revenue from Clean AI surpassed RMB 250 million, indicating strong growth in AI-driven services [12][39] Market Data and Key Metrics Changes - Average DAUs on the Kuaishou app reached an all-time high of 409 million, with MAUs at 715 million, reflecting a year-over-year increase of 3.4% and 3.3% respectively [14][6] - Revenue from external marketing services continued to grow, driven by strong demand from content consumption, local services, and automotive industries [19][20] Company Strategy and Development Direction - The company is focused on integrating AI technology across its business, enhancing user experience, and optimizing marketing solutions [36][37] - The strategy includes expanding Clean AI's applications in gaming and professional film production, aiming to empower creators and enhance operational efficiency [51][53] - The company plans to discontinue separate GMV disclosures starting in 2026, focusing on a more nuanced combination of performance indicators [44][45] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term growth prospects, emphasizing the resilience of its business ecosystem amid macro uncertainties [7][8] - The company aims to maintain high-quality growth while exploring new commercialization opportunities through AI [35][46] - Future investments will continue to focus on AI technology to enhance operational efficiencies and drive sustainable growth [86][87] Other Important Information - A special dividend of HKD 0.46 per share was declared for the first time since delisting, totaling approximately HKD 2 billion [8] - The company has repurchased shares amounting to HKD 1.9 billion, representing about 0.9% of total shares outstanding [43] Q&A Session Summary Question: What are the major use cases for Clean AI users at the moment? - Clean AI's users include mass creators and professional creators, with applications in content creation, advertising, and film production [48][50] Question: What are the AI use cases in the overall business? - AI technology is integrated across various business scenarios, enhancing marketing material generation and improving user engagement [57][59] Question: What verticals are expected to have strong growth in the second half of the year? - Growth is anticipated in local services, automotive, and content consumption industries, with strategies to enhance client outreach and marketing efficiency [66][68] Question: How does Kuaishou maintain momentum in e-commerce amid competition? - The company leverages a synergized ecosystem and tailored initiatives for merchants, focusing on user acquisition and repeat purchases [74][76]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue increased by 10.9% year over year to RMB 32.6 billion, with adjusted net profit reaching RMB 4.6 billion, representing an adjusted net margin of 14% [6][37][41] - Gross profit margin approached 55%, with gross profit growing by 10.4% year on year to RMB 17.8 billion [7][41] - Cost of revenue increased by 11.5% year on year to RMB 14.8 billion, accounting for 45.4% of total revenue [41] Business Line Data and Key Metrics Changes - Revenue from online marketing services grew by 8% year on year to RMB 18 billion, driven by AI technology integration [16][38] - E-commerce GMV grew by 15.4% year on year, with the number of monthly average active paying users reaching 135 million [20][24] - Live streaming revenue increased by 14.4% year on year to RMB 9.8 billion, marking a return to positive growth [27][40] Market Data and Key Metrics Changes - Average daily active users (DAUs) on the Kuaishou app reached a record high of 408 million, with average daily time spent per DAU at 133.8 minutes [12][14] - The overseas business achieved a revenue increase of 32.7% to RMB 1.32 billion, marking its first-ever quarter of operating profit [30][37] Company Strategy and Development Direction - The company is focused on integrating AI technology across its business lines to enhance user experience and operational efficiency [6][10] - Clean AI is positioned as a foundational infrastructure for video creation, with plans for continuous technological iteration and product innovation [48][50] - The company aims to leverage its omni-domain operations to enhance e-commerce capabilities and support merchants through AI-driven tools [20][76] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth despite a complex global macro environment, emphasizing the importance of AI in driving operational efficiency [6][44] - The company anticipates a year-over-year rise in AI-related expenditures, particularly in R&D, but expects this to have a manageable impact on overall profitability [80] Other Important Information - The company repurchased approximately HKD 1.42 billion worth of shares, accounting for about 0.68% of total shares outstanding [43] - The company plans to continue enhancing its content and business ecosystems while focusing on long-term technology investments [44] Q&A Session Summary Question: Update on Clean AI's commercialization and growth strategy - Clean AI's revenue reached RMB 150 million in Q1, with paid subscriptions accounting for nearly 70% of revenue, and plans for further product iterations and global outreach [48][50] Question: How AI is empowering existing businesses - AI has significantly improved marketing material production and customer service, leading to increased conversion rates and operational efficiencies [56][59] Question: Recent trends in online marketing services and key growth strategies - The company expects double-digit growth in online marketing services in Q2, driven by improvements in content consumption and local services sectors [63][68] Question: Strategy for the six eighteen shopping festival - The company will provide substantial traffic resources and subsidies, focusing on user engagement and tailored support for merchants and KOLs [71][74] Question: Investment plan on AI and its impact on profitability - AI investments are expected to increase, particularly in R&D, but the overall impact on profit margins is projected to be manageable, with AI seen as a potential second growth curve [80]