Core Viewpoint - Kunlun Wanwei (300418.SZ) reported a significant revenue growth of 46% year-on-year in Q1 2025, driven by advancements in AI computing chips and applications [1] Group 1: Financial Performance - The company achieved an operating revenue of 1.76 billion yuan in Q1 2025, marking a 46% increase compared to the previous year [1] - R&D expenses reached 430 million yuan, reflecting a 23% year-on-year growth [1] - The annual recurring revenue (ARR) for AI music reached approximately 12 million USD, with a monthly revenue of about 1 million USD [1] - The ARR for the short drama platform Dramawave was approximately 120 million USD, with a monthly revenue of around 10 million USD [1] - Overseas business revenue amounted to 1.67 billion yuan, showing a 56% increase year-on-year, and accounted for 94% of total revenue [1] Group 2: Technological Advancements - The company launched several disruptive technologies in multi-modal reasoning, video generation, and audio generation, achieving state-of-the-art (SOTA) status in various models [2] - The Skywork R1V multi-modal reasoning model reached open-source SOTA, while the SkyReels-V1 model and SkyReels-A1 algorithm led the global video generation field [2] - In the AI music sector, the Mureka V6 and Mureka O1 models demonstrated a competitive edge, with Mureka O1 surpassing competitors in performance [2] Group 3: AI Chip Development - The company made significant progress in the R&D of AI computing chips, moving towards the goal of "Chinese chips, Kunlun manufacturing" [3] - Kunlun Wanwei acquired a controlling stake in Beijing Aijietek Technology Co., Ltd., completing a full industry chain layout from computing infrastructure to AI applications [3] - The R&D team for AI chips has expanded to nearly 200 employees, covering various fields such as chip design and algorithm development [3] Group 4: Future Prospects - The company plans to launch the Skywork.ai platform in mid-May 2025, which will feature a system of five expert-level AI agents for optimizing various professional tasks [3] - The Opera business segment, including overseas information distribution and metaverse operations, saw a revenue increase of 41% driven by Opera Ads [4] - The company aims to continue advancing AI computing chip development and innovate its AI application matrix to provide leading AI product experiences globally [4]

Core Insights - Opera Limited reported a 40% year-over-year revenue growth, reaching $142.7 million for the first quarter of 2025, significantly exceeding guidance [1][6][17] - The company achieved an adjusted EBITDA of $32.3 million, representing a 23% margin, also surpassing expectations [1][13] - Opera raised its full-year guidance for both revenue and adjusted EBITDA based on strong Q1 performance [1][18] Financial Performance - Revenue increased from $101.9 million in Q1 2024 to $142.7 million in Q1 2025, a 40% increase [4][6] - Net income rose to $18.3 million, a 23% increase from $14.8 million in the same quarter last year [4][11] - Adjusted net income grew by 37% to $24.2 million, maintaining a 17% margin [4][12] - Adjusted EBITDA increased by 29% to $32.3 million, with a margin of 23% [4][13] - Diluted earnings per share increased to $0.20, while adjusted diluted earnings per share rose to $0.27 [4][13] Revenue Breakdown - Advertising revenue surged by 63% to $95.6 million, accounting for 67% of total revenue [7][20] - Search revenue grew by 8% to $46.6 million, representing 33% of total revenue [7][20] - Technology licensing and other revenue was $0.5 million [20] User Metrics - Opera had 293 million average monthly active users (MAUs) in the quarter, with an annualized average revenue per user (ARPU) of $1.94, a 45% increase year-over-year [7][20] - The Opera GX gaming browser recorded 34 million average MAUs, up 14% year-over-year [7] Operating Expenses - Operating expenses increased by 47% to $121.6 million [8] - Share-based compensation expenses rose by 130% year-over-year to $6.0 million [20] - Marketing and distribution expenses increased by 16% to $34.2 million [20] Business Outlook - For Q2 2025, the company guides revenue between $134 million and $138 million, reflecting a 24% year-over-year growth [15] - Full-year 2025 revenue guidance is set between $567 million and $582 million, with an expected 20% growth [15]