Kuaishou to pay first dividend since Hong Kong IPO as AI tools lift quarterly results

Kuaishou Technology on Thursday declared a special dividend totalling HK$2 billion (US$256 million), marking the first time China's No 2 short video app operator will make such payment since its US$5.4 billion Hong Kong listing in 2021.

The Beijing-based company said it would pay a special dividend of HK$0.46 per share after reporting better-than-expected financial results in the second quarter, driven by gains made from its artificial intelligence tools, according to its filing. Dividend payments to shareholders will be made on October 6.

Second-quarter revenue rose 13.1 per cent to 35 billion yuan (US$4.87 billion), up from 31 billion yuan a year earlier. Profit attributable to equity holders was 4.9 billion yuan, compared to about 4 billion yuan a year ago.

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First-half revenue increased 12 per cent to 67.7 billion yuan, up from 60.4 billion yuan a year earlier. Profit reached 8.9 billion yuan, compared to 8.1 billion yuan a year ago.

Kuaishou's shares closed down 0.21 per cent to HK$71.75 on Thursday, ahead of the earnings announcement. Its stock has gained nearly 80 per cent this year, but remains below its peak of nearly HK$400 in early 2021.

The declaration and payment of special dividends reflects not only Kuaishou's confidence in its long-term growth prospects, but also how AI innovation is expected to help drive growth at its main business segments.

"Quite a steady growth wouldn't have been possible without the trust and support of our shareholders," chairman and CEO Cheng Yixiao said at Thursday's post-earnings call with analysts. "We will consider measures, such as share repurchases and dividend payments, to reward our shareholders."

Kuaishou senior vice-president Gai Kun unveils the company's Kling AI 2.0 video-generation model on April 15, 2025. Photo: Handout alt=Kuaishou senior vice-president Gai Kun unveils the company's Kling AI 2.0 video-generation model on April 15, 2025. Photo: Handout>

"Looking ahead to the second half of 2025, we will maintain our strong investment in AI and continue to explore the potential of AI technology in empowering creators, marketing clients and merchants," the company said.

In the second quarter, Kuaishou said its online marketing services business saw a 12.8 per cent year-on-year increase in revenue to 19.8 billion yuan on the back of improved consumption by clients, who benefited from AI-enabled online campaigns.

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Revenue in its live-streaming business, meanwhile, rose 8 per cent to 10 billion yuan as a result of diversified, high-quality content, the company said. Revenue from our other services, which include e-commerce and AI solutions, jumped 25.9 per cent to 5.2 billion yuan.

"Moving forward, e-commerce performance will be driven by a combination of factors including diverse commerce scenarios, AI-empowered merchant solutions and improved user experience," Cheng said. He said the company would also continue to invest in AI as well as build its content and business ecosystems.

Kuaishou's Sora-style AI model Kling, which enables users to generate video content, brought the company more than 250 million yuan in revenue last quarter, up from 150 million yuan in the first quarter.

The company also recorded 409 million daily active users on its platform, where an average user spent more than two hours per day viewing short videos.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

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