"Investing heavily" in AI research and development, Kunlun expects a loss of 1.35 billion to 1.95 billion in 2025 | Financial Report Insights

Due to the continuous reinvestment in AI large models, market promotion, and research and development, Kunlun expects to remain in a loss position in 2025. On January 30, Kunlun released its performance forecast for 2025, with the following key points: Net loss expected to be between 1.35 billion yuan and 1.95 billion yuan, compared to a loss of 1.59 billion yuan in the same period last year. After deducting non-recurring gains and losses, the company expects a net loss of between 1.448 billion yuan and 2.048 billion yuan, compared to a loss of 1.64 billion yuan in the same period last year. Revenue during the reporting period is expected to grow by over 40% year-on-year, with an increased proportion of overseas revenue. The report shows that the company relies on a full-chain layout of "computing power - large models - applications," achieving breakthrough progress in core areas such as AI large models, Tiangong Super Intelligence, AI music, and short drama platforms. However, the continuous increase in investment in market promotion and research and development has had a certain impact on this period's performance. Kunlun's business covers areas such as AGI and AIGC, Opera overseas information distribution, short drama platforms, and social entertainment, involving over 100 countries and regions worldwide, establishing a diversified commercial monetization system that includes user recharges, membership subscriptions, API calls, advertising, search, and virtual goods payments. AI Product Matrix Achieves Technological Breakthroughs During the reporting period, Kunlun has continued to advance in the productization of AI technology. In the field of AI large models, the company has intensively released a series of achievements, including the Skywork-Reward-V2 series reward models, the multimodal reasoning model Skywork-R1V 4.0, the autoregressive multimodal unified model Skywork UniPic, and the 3D world generation model Matrix-3D, while continuously iterating and upgrading existing models. As a benchmark for commercialization, the Tiangong Super Intelligence deeply integrates AI Agent architecture and Deep Research technology, focusing on improving office efficiency and multimodal creation. This product can generate multimodal content such as documents, PPTs, Excel sheets, web pages, and even podcasts and audio-visual materials in one stop. In November 2025, its lightweight multimodal intelligent agent Skywork R1V4-Lite was released, with new visualization editing features that precisely address the usability pain points of AI coding, providing users with a "what you see is what you get" website building experience. After its launch, the product received positive market feedback, with solid user engagement, becoming a key product for the company to achieve a commercial closed loop in AI technology. In the AI music sector, its product Mureka has now been iterated to version V8, achieving simultaneous improvements in several key dimensions such as musicality, arrangement completeness, vocal expression, and overall sound quality, pushing AI music from "generable" on a technical level to "publishable" at a commercial level. Its Agent Studio feature aims to enable "everyone can write songs," providing global users with a natural and smooth real-time music creation experience Short Drama Platform Remains at the Forefront of Overseas Expansion The short drama business has become a significant highlight of Kunlun's performance growth. Its core platform, DramaWave, focuses on high-quality original short drama content and deeply applies advanced artificial intelligence technology in content recommendation and user interaction, aiming to create a more intelligent and immersive viewing experience for users. Currently, DramaWave's global monthly active users have surpassed 28 million, achieving a leading position in major markets such as North America, Southeast Asia, and Latin America, firmly establishing itself in the first tier of overseas short dramas. Another important product, FreeReels, adopts a differentiated market strategy. This free short drama application for the global market, centered on "free viewing," has quickly opened up in the fiercely competitive overseas arena, achieving significant user growth in Southeast Asia, Latin America, and Europe and the United States. Currently, FreeReels has over 40 million global monthly active users and has established a solid market share in several emerging markets thanks to its strong product capabilities and precise positioning. Opera Launches AI Agent Browser In terms of technological innovation and product iteration, Kunlun has made key progress across its business lines. Its platform Opera has launched the Agent browser Opera Neon, designed for the AI era, which breaks through the limitations of traditional browsers and can collaborate with users to complete tasks, utilizing AI technology to automatically handle web browsing, task execution, and content creation. In January 2026, Opera's AI features will officially go live and be fully opened to users of its flagship desktop browser Opera One, gaming browser Opera GX, and mindfulness-focused Opera Air. This feature supports voice and multi-format file analysis through deep system integration, aiming to provide users with a smooth multi-modal AI experience. In the social entertainment sector, StarMaker has launched AI song and AI video creation features through deep integration of AI technology, which can not only automatically generate songs and provide intelligent lyric filling services but also intelligently create AI animated music videos based on lyrics, musical style, and timbre, significantly driving user growth. The AI social product Linky continues to iterate around core model technology, further optimizing text dialogue, plot interaction, and character consistency, providing users with a more authentic and personalized interactive experience. The company stated that it will continue to deepen the industrialization of artificial intelligence technology, strengthen global market layout and business model innovation, and steadily enhance core competitiveness to solidify AI as the strategic core engine for the company's medium to long-term growth.