ByteDance's Li Liang: Rumored 2025 Profit Decline Based on Accounting Standard Data, Significantly Affected by Option Costs

On the afternoon of April 20, in response to today's market rumors regarding a significant decline in ByteDance's 2025 profits, ByteDance Vice President Li Liang stated that the figure of a 70% drop in net profit cited in relevant reports is data based on Accounting Standard. This data is affected not only by increased investment in emerging businesses but also by fluctuations in the company's preferred stock and option costs; however, this portion does not reflect operational substance. Li Liang noted that due to the slowdown in Douyin E-commerce growth and increased investment in related emerging businesses, the operating profit margin in the second half of the year saw a slight decline, far less than the magnitude reported. Excluding fluctuations in preferred stock and option costs, overall revenue and profit still grew, with TikTok's e-commerce business and emerging businesses showing positive development trends. Notably, just days prior, ByteDance announced the launch of a new round of share buybacks for options, with repurchase prices generally rising more than 10% compared to the October 2025 quotes. Risk Disclosure and Disclaimer Market investments carry risks; caution is advised. This article does not constitute personalized investment advice and has not considered the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions presented herein align with their specific circumstances. Any investment decisions made based on this content are the sole responsibility of the investor.