China's Kuaishou records 26pc drop in Q1 profit, AI revenue jumps

Kuaishou Technology (1024) recorded a 26.3 percent drop in adjusted net profit to 3.4 billion yuan (HK$3.9 billion) for the first quarter, but revenue generated from its Kling AI jumped.

Despite the drop, the figure still beat the market's expectation of 3.03 billion yuan.

Revenue for the period increased by 3.4 percent to 33.7 billion yuan, in line with analysts' projections.

Kling AI generated 650 million yuan in revenue in the three months, up by 300 percent from a year ago. 

The annualized revenue run rate of its AI model was approximately US$500 million in March, Kuaishou said. 

Sales from its core commercial business, including online marketing services and other services, primarily e-commerce, increased by 10.7 percent to 25.2 billion yuan, while those from live streaming plunged by 13.5 percent to 8.5 billion yuan.

In the quarter, the short-video platform’s average daily active users inched up 1.2 percent to 412.7 million.

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