Kuaishou Technology (STU:5Y0)

Q2 2026 Kuaishou Technology Earnings Call (Chinese, English) Transcript

Aug 19, 2026 / 11:00 AM GMT

Release Date Price: €4.17 (-2.39%)

Transcript

Key Points

Positve

Kuaishou Technology (KUASF) achieved high-quality growth in Q2 2026 with total revenues of RMB35.5 billion, up 1.4% year-over-year, and adjusted net profit of RMB3.9 billion, maintaining a stable 11% adjusted net margin.
Kling AI, the company's video generation model, generated over RMB850 million in revenue in Q2, up over 200% year-over-year, and launched the industry's first native 4K video output, reinforcing its global leadership in multimodal video generation.
AI integration across the business drove significant efficiency gains: over 92% of employees used AI agents, AI contributed to 60% of new code, and AIGC short and medium marketing spend grew over 70% year-over-year.
The e-commerce segment showed resilience with newly onboarded merchants growing year-over-year and nearly 10% quarter-over-quarter, while brand merchant GMV and marketing spend continued to grow steadily, supported by the T2000 brand initiative.
The company maintained a robust balance sheet with RMB121.3 billion in cash and equivalents, generated RMB5.9 billion in net operating cash flow in Q2, and delivered strong shareholder returns with total returns expected to exceed last year's level.
Overseas business continued to grow with solid year-over-year growth in e-commerce GMV and order volume, while maintaining operational efficiency and profitability.
The company's AI-driven recommendation system, Agent X, significantly improved iteration efficiency, and the launch of Kling AI's independent financing round provides more flexibility in managing capital expenditures.

Negative

Kuaishou Technology (KUASF) faces near-term revenue pressure and profitability challenges due to heavy AI investments and a complex macroeconomic environment, with management expecting these headwinds to continue in the second half.
Total revenue growth slowed to just 1.4% year-over-year, and gross profit margin declined to 51.6% from 55.7% in the prior year, reflecting increased costs and competitive pressures.
E-commerce marketing service revenue and commission income are expected to face pressure in the second half due to shifting consumer spending from discretionary to essential categories and intense industry competition.
R&D expenses increased by 34.7% year-over-year to RMB4.6 billion, driven by higher AI training costs, which could weigh on profitability in the near term.
The company acknowledged limited visibility on the external environment for online marketing services in the second half, with potential impacts from industry competition and changes in marketing strategies.
Live streaming revenue remained flat at RMB8.7 billion, indicating a lack of growth in this segment amid a mature market and competitive pressures.
The company noted that merchants are facing operational pressure and seeking greater predictability, and the days of relying purely on traffic dividends to drive business growth are behind, signaling a more challenging e-commerce environment.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

1024.HK - Kuaishou Technology
Q2 2026 Kuaishou Technology Earnings Call (Chinese, English)
Aug 19, 2026 / 11:00AM GMT

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Presentation
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Unidentified_1 [1]
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Good day, ladies and gentlemen.

Thank you for standing by.

Welcome to the Qui Technologies second quarter and interim 2026 financial resource conference call.

Please note that English simultaneous interpretation will be provided for management's prepared remarks.

This English line will be in listen-only mode.

I will now turn the call over to Mr.

Matthewhoo.

VP of Capital Market and IR at Quansho Technology.

Thank you operator.

Good evening and good morning to everyone.

Welcome to Quanxi Technology, second quarter and interim 2026 financial conference call.

Joining us today are Mr.

Cheng Yi Xiao co

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