KUAISHOU-W released its first-quarter results, with adjusted net profit of 4.58 billion yuan, a year-on-year increase of 4.4%

According to the Zhitong Finance APP, KUAISHOU-W (01024) released its performance for the three months ending March 31, 2025, with the group achieving revenue of RMB 32.608 billion (same unit below), a year-on-year increase of 10.9%; gross profit of RMB 17.792 billion, a year-on-year increase of 10.37%; and adjusted net profit of RMB 4.58 billion, a year-on-year increase of 4.4%. In the first quarter of 2025, amidst a complex and changing global macroeconomic environment, we continued to promote business empowerment through artificial intelligence (AI) technology, consolidating our content and commercial ecosystem through intelligent upgrades, enhancing the platform experience for users and content creators, and improving the operational efficiency of merchants and online marketing clients, achieving robust performance. In the first quarter of 2025, the average daily active users of the Kuaishou app reached 408 million, a historical high; total revenue increased by 10.9% year-on-year to RMB 32.6 billion, with a gross profit margin of nearly 55.0%. Adjusted net profit reached RMB 4.6 billion, with an adjusted net profit margin of 14.0%. At the same time, our new business has also achieved gratifying results, demonstrating strong potential for a second growth curve. The commercialization of Keling AI accelerated, with Keling AI revenue exceeding RMB 150 million in the first quarter of 2025. Our focused strategy on core international markets has yielded tangible results after two years of implementation. In the first quarter of 2025, we achieved positive operating profit for the first time in a single quarter for our overall overseas business. Regarding Keling AI, we announced a significant upgrade to our video generation large model in April 2025, launching Keling AI 2.0 for global users, maintaining a global leading position in dimensions such as dynamic quality, semantic response, and visual aesthetics. In this iteration of the Keling AI 2.0 model, we officially introduced the new concept of Multi-modal Visual Language (MVL) and launched multi-modal editing features based on this concept, allowing users to input various forms of information such as images, videos, sounds, and motion trajectories to generate creative videos. Additionally, creators can also add, delete, or replace visual elements in the generated video content, providing greater flexibility in the editing process. Currently, Keling AI has been widely applied in various industries such as advertising marketing, short dramas, and smart terminals, which further strengthens our confidence in the vision of Keling AI becoming the infrastructure for video creation in the new AI era. We have integrated AI technology into our content and commercial ecosystem. Leveraging AI technology, we have empowered our online marketing service solutions throughout the entire process, including AIGC marketing material production, marketing deployment agents, and marketing recommendation large models, enhancing clients' marketing conversion efficiency. In the first quarter of 2025, the average daily advertising consumption of AIGC marketing materials was approximately RMB 30 million. We also launched real-time interactive features in digital human live streaming rooms, improving the conversion rate of the live streaming rooms