[1024 Performance] Kuaishou: Kling AI ARR Breaks Through $300 Million, Capital Expenditure Target of 26 Billion Yuan for This Year, Q4 Adjusted Profit of 5.46 Billion Exceeds Expectations

Kuaishou (01024) Last quarter revenue increased by 11.8% year-over-year, with an adjusted profit of 5.46 billion RMB, meeting expectations. Kuaishou recommends a final dividend of HKD 0.69 per share, totaling approximately HKD 3 billion. Management mentioned that in January, the annualized revenue run rate (ARR) for Kele AI surpassed USD 300 million, with confidence that Kele AI’s revenue will grow more than double this year.

Kele AI Becomes Growth Driver, ARR Surpasses USD 300 Million

Last quarter, Kele AI’s revenue reached RMB 340 million. In December last year, revenue exceeded USD 20 million, with ARR reaching USD 240 million. CEO Cheng Yixiao stated that Kele AI’s revenue maintains a very strong monthly growth trend this year, with January’s ARR hitting USD 300 million. He is very confident that the company will achieve over 100% year-over-year growth this year.

Cheng Yixiao said that Kele 3.0 excels in role consistency, controllability, physical realism, and stability in complex scenarios, further strengthening Kele AI’s differentiated advantages for professional creators and enterprise clients.

Expanding AI Agent Capabilities, Capital Expenditure Budget Increased to USD 26 Billion

When asked about future development paths, Cheng Yixiao said that they plan to expand more modalities to improve video generation controllability, such as actions and expressions. They will also focus on solving complex scene setup and consistency issues. Additionally, product development of AI Assistant (AI Agent) capabilities will proceed steadily, providing autonomous full-process creation, including storyboarding, character and scene setup, synchronized audio-visual consistency, lighting, and camera movement automation based on user needs.

CFO Jin Bing stated that last year’s capital expenditure reached RMB 11 billion, and this year is expected to reach RMB 26 billion. This includes investments in Kele large models, computing power, data storage, server procurement, and building data computing centers. He emphasized that despite increased capital spending, the goal remains to maintain positive free cash flow throughout the year.

Kuaishou’s e-commerce GMV (Gross Merchandise Volume) increased by 12.9% year-over-year to RMB 521.8 billion last quarter. Regarding future trends, Cheng Yixiao said that the main focus this year remains on content e-commerce, with steady growth expected. Kuaishou will focus on supply-side reforms to help brands quickly start and sustain growth within its ecosystem, while also strengthening buyer acquisition and penetration. There is still significant room for growth in monthly active buyers, and the company will also promote traffic integration.

Last quarter, Kuaishou’s online marketing services revenue grew by 14.5% year-over-year to RMB 23.618 billion. Live streaming revenue was RMB 9.655 billion, down 1.9% year-over-year. Other services totaled RMB 6.295 billion, up 28% year-over-year.

AI Capabilities Have Become the Core Growth Engine

Kuaishou stated that despite increasing AI investments last year, the company still achieved steady improvements in overall profitability. AI capabilities have become the core engine driving long-term growth.

Its multimodal video generation large model, Kele AI, achieved RMB 340 million in revenue in Q4 last year. Notably, in December 2025, Kele AI’s monthly revenue exceeded USD 20 million, with an annualized revenue run rate (ARR) of USD 240 million.

In February 2026, Kele AI 3.0 series models launched, built on the All-in-One product concept, supporting full-modal input and output for text, images, audio, and video, seamlessly integrating video understanding, generation, and editing into a simplified AI workflow.

Looking ahead, as AI technology advances rapidly, the company will continue to deepen its AI strategy, increase AI investments, and further solidify Kuaishou’s position as a leading AI-powered content platform. Upholding the philosophy of “Technology First, User-Centric,” the company will always focus on user needs, deepen AI integration, and help merchants and marketing clients improve operational efficiency.

For the full year, Kuaishou reported a net profit of RMB 18.617 billion, up 21.4% year-over-year; adjusted net profit was RMB 20.647 billion, up 16.54%. Basic earnings per share were RMB 4.35.

Source: Hong Kong Stock Exchange Announcement

(Second Edition)