Thank you, operator. Good evening and good morning to everyone.

Welcome to Kuaishou Technology Q1 2026 Financial Results Conference Call. Joining us today are Mr.

Cheng Yixiao, Co-founder, Chairman and CEO, and Mr. Jin Bing, CFO.

Before we start, please note that today's discussion may contain forward-looking statements which involve a number of risks and uncertainties. Actual results and outcomes may differ from those discussed.

The company does not undertake any obligations to update any forward-looking information, except as required by law. For more information about this call and for forward-looking statements, please refer to the company's public information on our first quarter 2026 results announcement and in March 31st, 2026, issued earlier today.

In today's call, management will also discuss certain non-IFRS financial results. These are provided for additional information and should not replace IFRS-based financial results.

For a definition of non-IFRS financial measures, a reconciliation of IFRS to non-IFRS financial results, and related risk factors, please refer to our Q1 2026 results announcement. For today's call, management will use Chinese as the main language.

A third-party interpreter will provide simultaneous interpretation in prepared remarks session and consecutive interpretation during the Q&A session. Please note that English interpretation is for convenience purpose only.

In case of any discrepancy, management statements in their original statement will prevail. Lastly, unless otherwise stated, all currency units mentioned are in RMB.

Now I hand the call over to Yixiao. Hello,

welcome to Kuaishou's Q1 2026 earnings conference call. In Q1 2026, amid a complex and evolving macroeconomic environment, we continued to advance our AI strategy execution.

Kling AI maintained its global leadership in multimodal video generation, and AI technologies continued to enhance the vitality of our content ecosystem, expand monetization, and improve organizational efficiency. In Q1 2026, the average DAUs on Kuaishou app reached 413 million.

Total revenue increased by 3.4% year-over-year to 33.7 billion. Revenue from our core commercial business, including online marketing services and other services primarily e-commerce, increased by 10.7% year-over-year.

Adjusted net profit reached 3.4 billion RMB with an adjusted net margin of 10%. Kling AI demonstrated strong momentum, driving our second growth curve.

It sustained its global leadership in model capabilities and product experience while achieving rapid monetization growth. In Q1, Kling AI generated revenue of over 650 million RMB, representing year-over-year growth of more than 300%.

Next, I will walk through the details of our major business segments in Q1 2026. First, our AI strategy and progress of our large video generation model, Kling AI.

In Q1, Kling AI continued to advance its vision of empowering everyone to craft captivating stories with AI. Through ongoing model iteration, intelligent product upgrades, and deep penetration across professional scenarios, Kling AI further reinforced its global leadership in AI video generation.

At the model and technology level, in February 2026, we launched the Kling AI 3.0 model series. Built on an all-in-one foundation framework, the Kling 3.0 model series supports multimodal inputs and outputs spanning text, images, audio, and video, integrating audio video understanding, generation, and editing in one streamlined AI workflow.

While supporting video generation of up to 15 seconds, the Kling AI 3.0 model series delivers highly flexible storyboard control and more precise semantic alignment, introducing simultaneous audio-video generation capabilities with strong subject consistency to further extend the boundaries of AI storytelling. At the product level, Kling Lab AI agent mood upgraded the creative experience from standalone tools to an intelligent agent-driven system with features including multiturn conversational editing and multi-perspective intelligent shot expansion.

In addition, Kling AI launched the Team Plan, supporting real-time collaborative creation for up to 15 members and enabling creators to efficiently manage content creation workflows among teams. Recently, we launched the Baseball Live effect, which once again ignited a global AI creation frenzy and swept across social media platforms worldwide.

This viral hit propelled Kling AI to the top of the overall App Store charts in 42 countries and regions, including Germany and Brazil. Kling AI has continued to focus on the core needs of professional creators across the film and television, advertising, e-commerce, and gaming sectors, supporting content production with end-to-end industrial-grade capabilities and driving meaningful cost reduction and efficiency improvement.

Kling AI was used in the creation of selected virtual scenes and visual effects for the hit Chinese historical drama Swords into Plowshares and the Hollywood series The House of David. Kling AI supported the generation of hundreds of high-quality shots, including grand scenes and complex battle sequences, demonstrating its exceptional strength in commercial film and television production.

With broader adoption across professional creative scenarios, Kling AI's commercialization has accelerated. In Q1 of 2026, Kling AI generated revenue of over 650 million RMB, representing growth of more than 300% year-over-year.

In March, Kling AI's annualized run-rate ARR reached approximately $500 million USD. We made continued solid progress advancing research and development of our general-purpose models and in deploying AI-driven enhancements across our commercial and organizational ecosystem.

At the general-purpose model level, we released KAT-Coder-Pro-V2, an agentic coding model with strong capabilities in front-end UI aesthetics, command-line reasoning, and agent execution that is compatible with mainstream AI coding tools such as Claude Code. It has been trained and optimized for OpenClaw and is capable of navigating complex real-world application workflows.

In terms of AI empowerment for our commercial ecosystem, we continue to deepen the application of our generative recommendation large models and intelligent bidding models in online marketing services scenarios, driving roughly 4% growth in domestic online marketing services revenue in Q1. To optimize our generative recommendation large models, we incorporate multimodal aligned advertising intents.

By combining value-aware supervised learning with ranking-guided reinforcement learning, we improved the quality of material recommendation candidate sets, mostly enhanced inference efficiency through model optimization at the inference stage, further improving model performance. For e-commerce business scenarios, the new generation generative search framework OneSearch-V2 was fully rolled out across e-commerce search scenarios in Q1.

Through tech innovation, we have introduced a self-distillation generative search framework based on latent space reasoning and enhanced model's inference capabilities and search experience without incurring additional inference costs and or service latency, with rolling incremental GMV growth of approximately 5% in our e-commerce search business. At organizational ecosystem empowerment level, Kuaishou's proprietary coding tool CodeFliker has driven AI-generated code penetration to over 50%.

It also evolved into a company-wide general-purpose agent, MyFliker, expanding its use scenarios from engineering coding to broader employee-facing scenarios. It now empowers functions across R&D, product, operations, data, etc., to enhance overall organizational efficiency.

Second, user growth and content ecosystem. In Q1, average DAUs on Kuaishou app reached 413 million and MAUs reached 772 million.

Average daily time spent per user remained relatively stable. By providing differentiated premium content, iterating our traffic mechanisms, and expanding social interaction scenarios around Chinese New Year, we offer users a higher-quality and more heartwarming online community with distinctive Kuaishou characteristics.

In refining our distribution mechanism, we balance user experience with monetization efficiency, resulting in increased exposure for premium content. In terms of user growth quality, we further refined operations across all channels.

By integrating user acquisition spending with monetization scenarios and continuing to iterate our user retention strategies, we successfully improved user growth ROI. During the 2026 Chinese New Year holiday, we created an immersive online Spring Festival experience to drive high-quality user growth through innovative interactive features and an extensive premium content matrix, achieving a new historic peak in DAUs.

In terms of content ecosystem, we launched a series of Kuaishou-characteristic content IPs, including Kuaishou Spring Festival Gala for the Year of the Horse, the Village Grand Stage, the Northeast Comedy Show. Leveraging Kling AI, we released an AI-generated Chinese New Year animation short play series, The Show Gala Song.

These initiatives fostered a vibrant, festive atmosphere for users while amplifying the popularity and influence of Kuaishou-native content. Users' social interactions increased significantly during the Chinese New Year campaign.

The number of user pairs using our social interaction product What's That grew by 25% compared with the pre-Spring Festival period, and the number of users sending private messages increased by 15%. These initiatives fostered a vibrant, festive atmosphere for users while amplifying the popularity and influence of Kuaishou-native content.

Data showed that our 2026 Chinese New Year programs generated over 15 billion live streaming views and more than 250 billion short video views, and over 6.5 billion cumulative likes, spurring user growth and reinforcing user mindshare for participating brands. Third, online marketing services.

In Q1, revenue from online marketing services reached 19.6 billion, up 9.3% year-over-year, with revenue from domestic online marketing services growing by more than 10% year-over-year. In Q1, the content consumption, lifestyle services, and AI application sectors were the primary drivers of our non-e-commerce marketing services revenue.

In content consumption sector, AI reduced production costs and lowered creative thresholds for comic-style short plays, driving rapid growth in content supply and related marketing demand. As of the end of March 2026, the peak of daily marketing spend on Kuaishou comic-style short plays exceeded 20 million RMB.

Within the lifestyle services sector, where clients primarily operate on a lead-based model, we advanced more refined industry operations across 20 verticals, including healthcare, industrial and agricultural materials, education, and automotive. By tailoring our solutions to the conversion characteristics of different industries, we helped merchants improve customer acquisition efficiency and drove incremental advertising spend across these sectors.

At the same time, we helped merchants reach potential customers more efficiently and improved user conversion rates through product upgrades. In addition, during the Chinese New Year period, demand for marketing placements in the AI application vertical was strong.

We effectively captured relevant budgets and optimized deep conversion outcomes, leading to AI application clients increasing marketing spend on placements on our platform. In Q1, we accelerated penetration of AI across diverse online marketing services scenarios, covering the full pre-placement, in-placement, and post-placement life cycle.

This improved clients' placement experience and drove growth in total spending from online marketing services. In pre-placement, the generation of AIGC marketing materials enabled merchants to produce materials at a lower cost and more efficiently.

As of March, AIGC short video marketing material spending contributed 10% of total short video online marketing spend on our platform. At in-placement stage, our Universal Auto Ads, or UAA, placement solutions became the dominant placement tool adopted by most online marketing clients.

During the quarter, we added a new AI agent feature to UAA placement solutions. Learning from best practice in placement optimization, creative generation, and editing across verticals, our UAA placement solutions automatically assisted advertising teams with tasks such as ad unit creation and bid management, improving overall placement efficiency.

At post-placement stage, AI-driven analytics automatically reviewed performance data and provided timely feedback to clients, reducing manual operational workflows. Meanwhile, digital employee solutions offered 24/7 automated responses, enabling clients to handle consumer inquiries in real time, especially during periods such as overnight hours when human support is limited.

For e-commerce marketing services, we further advanced and deepened our omni-domain traffic synergy strategy through improved coordination between organic and commercial traffic pools, enhancing e-commerce traffic exposure and business growth for merchants. In Q1, we onboarded an increasing number of brand merchants and small and medium-sized merchants.

The number of active merchants using marketing placements increased by 33% year-over-year, and brand advertising spending increased by 42% year-over-year, supporting GMV growth for brand merchants' self-operated business across omni-domain scenarios. Meanwhile, AI capabilities have been fully integrated across our end-to-end e-commerce marketing placement workflows.

Through the coordinated efforts of user interest inference AI agent, creative construction production AI agent, and a bidding selection AI agent, both marketing placement precision and efficiency improved. On the product side, with continuous upgrades, our omni-platform marketing solutions accounted for a greater share of our total spending from e-commerce marketing services and became the primary placement offering for our e-commerce marketing services.

Our net transaction ROI product helped merchants optimize their net transaction GMV, enabling more stable settlement outcomes. In Q1, client penetration rate reached 45% across industries and meaningfully reduced product return risks.

Meanwhile, our whole store hosting model allowed merchants to overcome single-product placement constraints through one-click storewide placement, freeing up manpower. Fourth, e-commerce.

We advanced our e-commerce strategy through three key upgrades: prioritizing plain user growth, supply acquisition, and deeper integration of e-commerce and commercialization traffic. This will enable merchants to better capture the end-to-end synergies across omni-domain scenarios, amplifying growth momentum.

In Q1, by steadily advancing this strategy, our e-commerce business achieved sustainable healthy growth. We remain committed to strengthening omni-domain traffic synergies and refining operations across the full buyer life cycle to drive long-term growth in our e-commerce buyer base.

In Q1, on the supply side, we prioritized onboarding brand merchants and new merchants, which further improved the quality of product supply in the first quarter. For brand merchants, we continued to advance our Voyage initiative, which launched in the fourth quarter last year, targeting top-tier brands across diverse verticals to support them on multiple fronts, including traffic operations and brand building.

In the first quarter, driven by incremental growth from new brand merchants, brand merchants' contribution to overall e-commerce GMV and commercialization continued to increase, maintaining strong year-over-year growth. Meanwhile, existing merchants continued to scale and stabilize their operations, well strengthening the health of resilience of e-commerce supply ecosystem.

In new merchant acquisition, we worked closely with our service providers across 100 targeted priority industrial zones nationwide. In Q1, the number of new merchants onboarded in these industrial zones increased by 41.8% year-over-year.

In addition, in collaboration with industry teams and SME merchant teams, we actively empowered new merchants to survive across our full life cycle from onboarding and early growth to scaling through a mix of merchant incentive programs, operational tools, and business safeguards, and marketing initiatives. In Q1, the number of SME merchants grew significantly, leading to a healthier merchant structure and more diversified supply.

In Q1, we further improved our KOL ecosystem structure. This enhanced the supply of high-quality e-commerce content and we continued to strengthen support for mid-tier KOLs.

In January, we launched the Treasure Streamer Spotlight initiative, leveraging platform resources to identify and support outstanding KOLs across verticals and help them scale. In addition, we further refined our incentive policies, which significantly improved KOL streaming frequency.

In Q1, the number of average daily active streamers hosting live sessions with over 10,000 followers grew 10.1% year-over-year. To empower KOLs, we began working with distribution and industry initiatives and providing top-tier merchants and KOLs with diversifying monetization growth opportunities by expanding the reach of high-quality products with distinctive Kuaishou e-commerce characteristics for broader user base.

Through subsidy initiatives such as KOL blockbuster initiatives along with continued optimization of our distribution product allocation capabilities, we improved the efficiency of KOL product matching. In addition, we hosted offline matchmaking events between merchants and KOLs and introduced a tiered services for KOLs at different levels, enabling high-precision distribution matching.

In Q1, the number of merchant-KOL matches in the distribution pool increased by 47% year-over-year, while the number of active KOLs participating in distribution grew by 23.5% year-over-year. Our omni-domain e-commerce operations ecosystem continued to show strong growth momentum as we strengthen coordination between content-based and shelf-based scenarios.

Through intelligent subsidies and refined operations across the full user life cycle, we achieved end-to-end efficiency improvement from product recommendation to repeat purchase, building a stable and sustainable growth foundation for merchants. Content-based scenarios continue to serve as the important driver of user demand.

As user consumption habits increasingly expand through browsing, search, and shopping mall exploration, our omni-domain consumption mindset among users have gradually taken shape. In Q1, e-commerce intent-driven search PV grew 11% year-over-year, while new and returning buyers in the shopping mall increased by approximately 36% in March, indicating users' strong activity in shopping intent.

In addition, richer supply drove an increase in purchase frequency among shelf-based e-commerce users. Harnessing end-to-end AI capabilities, we delivered tangible operating efficiency gains for merchants and upgraded user experience.

Leveraging large model capabilities, we comprehensively upgraded the shopping decision-making process through end-to-end empowerment, spanning user latent demand activation, search engagement, guided shopping in live streaming rooms, and finally subsidy distribution. Built on large model technologies, we launched an upgraded search experience by introducing an AI agent-based, one-stop intelligent shopping assistant.

With this upgrade, search evolved from user-initiated product lookups to an AI-led product exploration, significantly improving search conversion efficiency. In addition, leveraging AI to empower sales operations, we optimized the process of guided shopping in live streaming rooms.

In live streaming scenarios, real-time product highlight summarization and AI-powered auto-reply hosting feature generated over 10 million in incremental GMV per day for merchants. Next, regarding our live streaming business.

In Q1, live streaming revenue reached 8.5 billion RMB. We remain committed to the health of live streaming ecosystem as our core priority, focusing on supply quality improvement, content enrichment, and AI innovation to build a sustainable live streaming ecosystem for long-term growth.

We continued to support high-quality content categories such as premium rural live streaming and strengthen the professional operations of partner talent agencies, solidifying the foundation of live streaming supply. On the product and technology front, AI capabilities fully empowered live streaming rooms.

AI tools including AI interaction assistants, digital avatar solutions, and AI private messaging improved streamers' service efficiency and enhanced viewers' engagement experience. Kling AI's video generation strength significantly empowered live streaming gift creations, accelerating AI gift rollout and enriching creative expression while boosting user willingness to pay.

In Q1, the AI Universe series gifts with customizable special effects sent by users reached 1.1 million. In content, we launched a diverse range of live streaming interactive features during Chinese New Year to build engaging live stream scenarios.

The Kuaishou Mastermind quiz series featured over 100 AI digital human streamers generated by Kling AI, interacting with users throughout the experience and attracting nearly 50 million users to actively participate. At the same time, we further strengthened our gaming content ecosystem.

During the Chinese New Year, we launched the Spring Festival Player Carnival campaign, partnering with over 50 game developers and collaborating with major game IPs to roll out exclusive content and user benefits. Moreover, our esports business, a strategic pillar of our gaming ecosystem, achieved a breakthrough.

In April, Kuaishou's KSG team won the King Pro League Spring 2026 Championship, driving the further evolution of the gaming ecosystem. Finally, about our overseas business progress.

In Q1, we continuously explored high-value growth strategies for our overseas business while responding to market changes with business resilience. In terms of traffic, we continue optimizing user acquisition efficiency and user growth mix to cultivate a content ecosystem rooted in real life.

Meanwhile, we further expanded content verticals tailored for our core users to deepen their engagement. Brazil, our key market for overseas development, maintained steady average DAUs and average daily time spent per DAU quarter-over-quarter.

For online marketing services, we consistently strengthened our advertising product capabilities by leveraging AI to fully empower our end-to-end marketing workflows, improving placement efficiency and performance stability for clients. At the same time, we capitalized on our strengths as content platforms to localize commercial creatives to unlock incremental advertising budgets, particularly from short-play clients led by cross-border e-commerce players.

Our e-commerce business in Brazil achieved steady year-over-year growth in GMV and order volume in the first quarter. By strengthening key categories and high-quality product supply, we grew conversion and repeat purchase rates.

Meanwhile, through AI-assisted content production and content recommendation, we continuously optimized operational efficiency and profit-generating capability. In summary, confronting many challenges and rigorous tests, we remain steadfast in our core AI strategy, breaking through barriers with our deep tech and ecosystem strength.

Looking ahead, we will navigate uncertainties with long-term resolve, continuously deepening AI integration to long-term value for all stakeholders and unlock new growth potential. That concludes my remarks.

Thank you. I'll hand it over to Jin Bing.

Thank you, Yixiao. In Q1, we continued to advance our AI strategy and made meaningful progress.

Leveraging our leading AI capabilities, we deepened our empowerment of Kuaishou's content and business ecosystem, delivering healthy, steady growth across both our operational metrics and financial performance. We continue to broaden the application of AI large models across business scenarios, further optimizing user experience and enhancing operational efficiency for our business partners.

At the same time, Kling AI is rapidly realizing its commercial value as the company's second growth curve. In Q1, the group's total revenue reached 33.7 billion RMB, with revenues from our core commercial business, which includes online marketing services and other services primarily e-commerce, growing 10.7% year-over-year.

Notably, Kling AI generated revenue of over 650 million RMB, representing a year-over-year growth of more than 300%. Adjusted net profit was 3.4 billion RMB with an adjusted net margin of 10%.

While continuing to scale our investment in AI, we maintained the group's overall profitability and operational cash flow at a healthy level. Now let's take a closer look at our Q1 financial performance.

Our total revenue grew 3.4% year-over-year to 33.7 billion in Q1. The increase was mainly driven by growth across our online marketing services, e-commerce, and Kling AI businesses.

Online marketing services revenue increased 9.3% to 19.6 billion RMB in Q1 from 18 billion RMB in the same period last year. This growth was primarily driven by the accelerated penetration of AI across diverse online marketing services scenarios, which reduced marketing material generation costs for clients and optimized their placement experience, while also improving conversion efficiency and driving higher spending by our marketing clients.

Revenue from other services, including our e-commerce and Kling AI businesses, reached 5.6 billion RMB in Q1, up 15.9% from 4.8 billion in the same period last year. The increase was mainly driven by the continued expansion of our Kling AI business.

By continuously refining Kling AI's foundation models and developing more innovative features, we have broadened its adoption across professional creative scenarios, accelerating its commercialization. In Q1, our live streaming revenue was 8.5 billion RMB.

We consistently cultivated high-quality content offerings, expanding live streaming scenarios and leveraging AI-empowered product innovations to develop a rich and healthy live streaming ecosystem and diverse high-quality content. Cost of revenues increased 11.1% year-over-year to 16.5 billion RMB in Q1, accounting for 48.8% of total revenue.

The increase was mainly due to higher revenue sharing costs and revenue growth, as well as increased bandwidth expenses, server custody costs, and depreciation of property and equipment and right-of-use assets, and amortization of intangible assets. Based on the above, our gross profit was 17.2 billion RMB in Q1, compared to 17.8 billion in the same period last year.

Gross profit margin was 51.2% compared to 54.6% in the same period last year. Turning to expenses, in Q1, selling and marketing expenses were 10.3 billion RMB compared to 9.9 billion in the same period last year.

Selling and marketing expenses slightly increased to 30.6% of total revenue from 30.4% in Q1 last year, primarily attributable to increased spending in promotion activities. R&D expenses increased 9.8% year-over-year to 3.6 billion RMB, accounting for 10.7% of total revenue.

The increase was mainly due to higher employee benefit expenses, including share-based compensation expenses, and increasing investments in AI. Administrative expenses were 770 million RMB compared to 830 million in the same period last year, primarily due to a decrease in employee benefit expenses, including related share-based compensation expenses.

Group-level net profit for Q1 was 2.9 billion RMB. Group-level adjusted net profit was 3.4 billion RMB with an adjusted net margin of 10%.

Our balance sheet remains robust. Cash and cash equivalents, time deposits, financial assets, and restricted cash totaled 117.7 billion as of March 31st, 2026.

Net cash generated from operating activities in Q1 was 3.1 billion RMB. Additionally, we actively delivered on our commitment to shareholder returns based on market conditions.

As of today, we had repurchased approximately 854 million Hong Kong dollars, or 17.96 million shares, representing about 0.42% of total shares outstanding for 2026. Looking ahead, we'll continue to prioritize user needs and remain committed to investing in AI.

Leveraging our leading capabilities, we will fully boost the vitality of our content ecosystem and expand monetization, reinforcing our competitive edge in every single market and creating long-term value for users, partners, and shareholders. This concludes our prepared remarks.

Now we can open the call for Q&A. 提醒一下，如果您需要提问，请按星号键再按

AI 的。我们看到 26 年一季度的商业化的发展也是非常超预期。我想问一下就是主要收入增长的驱动是什么呢？以及可灵目前主要的应用场景主要是甚么？应该如何展望视频生成大模型未来的应用的前景呢？谢谢，我先翻译一下。Thank you, management, for taking my questions, and congrats on a very robust growth on Kling. I have a question on Kling AI.

Since the commercialization progress in first quarter has exceeded expectations, what are the main drivers behind its strong revenue growth? What are the recent use case and primary application scenario for Kling?

How should we assess the future application prospects for the video generation of large language models? Thank you.

谢谢你的问题。2026年第一季度呢，可灵 AI 的营业收入超过了 6.5 亿元，同比增长超过了 300%。2026年3月，可灵 AI 的年化收入运行率 ARR 接近了 5 亿美元。如果大家有印象呢，去年3月可灵 ARR 是 1 亿美元，所以 ARR 在一年内增长了近 4 倍。可灵营业收入的高速增长源于 B 端企业客户的 API 调用收入和 C 端付费用户订阅收入的双轮驱动。无论是用户数还是月均付费金额均实现了非常高速的增长。从留存上来看，B 端企业客户和 C 端付费用户均保持了较好的留存趋势，体现了可灵在服务于专业创作场景的技术和产品能力，获得了极强的用户粘性，为可灵收入的长期可持续增长提供了保障。

Thank you for your question. In Q1 2026, Kling AI generated revenue of over 650 million RMB, up more than 300% year-over-year.

In March 2026, the ARR of Kling AI was approximately $500 million US dollars. For those who recall, our ARR stood at $100 million USD in March of last year, it increased by nearly fourfold in just one year.

The rapid revenue growth was driven by both corporate API services and paid subscriptions from prosumers. The number of paid prosumer subscribers and their monthly ARPU increased rapidly.

From the retention perspective, our corporate clients and paid prosumer subscribers maintained healthy retention trends, underscoring Kling AI's robust technology and the product capabilities in professional creative scenarios. This has translated into strong user stickiness, providing a solid foundation for Kling AI's long-term sustainable revenue growth.

关于可灵目前的应用场景主要包括广告营销、影视短剧和游戏等专业创作的场景。在广告营销场景，可灵可以参与到广告视觉创作的全链路中，包括在前期的快速产生接近成品的

demo，将创意直接可视化，并引导集中拍摄。可灵的模型能力能够做到在不同的场景与视角下，广告人物和产品均保持高度的一致性和稳定性，为广告主确定广告调性提供视觉支持。在影视短剧场景，可灵能够深度介入全流程制作，从剧本拆解、角色与场景概念图设定、智能分镜及集中成片，实现高度自动化的创作，大幅压缩制作周期和成本。今年4月初全网爆火播放量过亿的 AI 短剧《银子飞机》就是两位非专业电影创作者通过3天使用可灵制作完成的。创作者用可灵实现了从分镜到成片几乎所有的画面生成。在游戏制作场景，可灵可以在立项服务将概念原画进行动态预演，帮特效师节省大量制作动态氛围板的时间，同时也能交付后期制作的微模渲染、剧情演出和过场动画等。

Kling AI is built mainly for professional creative scenarios, spanning advertising and marketing, film, television and short plays, and gaming. In advertising and marketing scenarios, Kling AI covers the entire visual production life cycle.

Early in the ideation phase, it rapidly generates near-final demos that turn creative concepts into tangible visuals. Those same visuals carry through to guide the final production shoot.

Kling AI's model capabilities maintain strong ad character and product consistency across different scenes and camera angles, offering advertisers reliable visual support to establish a coherent creative tone. In film, television, and short play scenarios, Kling AI can be embedded into the entire production workflow from script breakdown and concept design for characters and scenes, to intelligent storyboarding and then final video generation, enabling a highly automated creation process that significantly reduces production timelines and costs.

The AI short film Paper Smartphone, which went viral in early April this year and accumulated over 100 million online views, was produced by two non-professional film creators in just three days using Kling AI. The creators leveraged Kling AI to generate almost all visual elements, covering the full pipeline from storyboarding to final cut.

In gaming scenarios, Kling AI supports the product initiation phase by turning concept artwork into dynamic previews, saving visual effect artists considerable time producing animated mood boards. Kling AI also supports downstream production by generating assets such as gray box renders, in-game narrative sequences, and cutscenes.

展望视频生成大模型未来的应用前景，我们在今年上半年看到

AI 短剧非常火爆，AI 技术使得短剧行业的供给增长了数十倍。我们也有理由相信随着视频生成大模型能力的不断突破，包括电影在内的专业生产内容供给也有望迎来爆发。借此不仅会有更多高质量的专业生产内容供给，也可能会在内容中融入更多个性化与互动元素，比如将用户自己的形象、性格带入其中。这种极致的个性化内容消费将彻底改变人与内容的关系。可灵也将在这样的背景下迎来商业化潜力的爆发。总之，我们对可灵及所处的 AI 视频生成赛道充满信心，也坚定的支持可灵在算力和人才上的投入。

In terms of the outlook for the applications of large video generation models, we have already seen compelling signals so far this year. AI-generated short plays have shown strong momentum, with AI technologies driving multifold increases in content supply.

We have also reasons to believe that as large video generation models continue to achieve breakthroughs, professionally generated content, PGC supply, including films, is likely to hit a phase of breakout growth. This would bring not only a dramatic expansion in high-quality professional content supply, but could also enable the integration of more personalized and interactive elements into content, such as bringing users' own identities and personalities into the content itself.

This level of highly personalized content consumption could fundamentally reshape the relationship between users and content. Against this backdrop, Kling AI is well-positioned to unlock substantial commercialization potential.

Overall, we are highly confident in Kling AI and the broader AI video generation sector, and we will continue to invest in Kling AI's computing power and talent development.

Thank you, operator. Next question, please.

下一个问题有来自高盛的

AI Agent 智能体等等方面。So, thank you management for taking my question. My question is other than Kling AI, what are the other areas we have seen progress on AI front this quarter, especially like AI Agents, etc.?

Thank you.

谢谢你的问题。2026年第一季度，公司继续深化 AI 战略。除了可灵 AI 继续保持技术、产品和商业化变现的持续领先之外，我们在使用 AI 技术赋能商业生态和组织提效方面也取得了不错的进展。今年年初包括 OpenClaw 在内的 AI 智能体引起了大家的广泛关注。我在这里也重点强调一下 AI 智能体在各个场景的进展。

Thanks for the question. In Q1 2026, we continued to deepen our AI strategy.

Beyond Kling AI maintaining its global leadership in technology, product capabilities, and monetization, we also make solid progress in leveraging AI to empower our business ecosystem and improve organizational efficiency. At the beginning of the year, AI agents such as OpenClaw attracted widespread attention.

I'd like to take this opportunity to highlight progress we've made with AI agents in different scenarios. 在电商营销服务场景，我们推出了覆盖兴趣推理、创意生产、产品筛选和营销出价决策等环节的全流程

Agent。在用户兴趣推理环节，我们通过 AI 生成资讯链将用户在平台上的行为进行汇总并形成模型可理解的语言，横向拓宽用户兴趣理解的广度，同时结合用户的行为序列，发掘用户消费的深度。在创意和选品环节，借助 Agent 可以帮商家筛选出更具有爆款潜质的素材和商品，在流量分配上给予更多曝光机会，提升素材广告投放的 ARPU。在出价决策推理环节，Agent 可以综合历史数据、当天流量趋势、不同场域的流量竞价来预测怎么出价才能让广告投放稳定且高效，在保障商家全天 ROI 成本达成的技术上获得最大化的营销投放规模。

In e-commerce marketing services, we launched end-to-end AI agents covering user interest inference, creative production, product selection, and marketing bidding decision. In the user interest inference stage, we leverage AI-generated recency to consolidate user behaviors on the platform into representations that are interpretable by models.

We expanded the breadth of user interest understanding and harnessed behavioral sequences to uncover deeper user consumption patterns. In the creative and product selection stage, our AI agents help merchants identify materials and products with higher potential to become blockbuster items, offering greater exposure through traffic allocation and ultimately improving the ARPU of material placement.

In a bidding decision inference stage, our AI agents leverage historical data, intraday traffic trends, and traffic pricing across different scenarios to predict optimal bidding strategies, ensuring stable and efficient ad placement. By empowering merchants to achieve their full-day ROI targets, we effectively maximize the overall marketing placement scale.

针对生活服务业务场景，我们为客户推出了人群搜索

Agent、深度转化 Agent 和销售 Agent。人群探索 Agent 能够借助大模型的能力实现对于线索类商品、服务信息的深刻理解，同时基于用户在平台的行为推测其潜在需求，提升了客户营销素材投放的转化率和成本稳定性。深度转化 Agent 可以通过大模型的长文本理解能力，实现对用户意图的准确理解，并让模型围绕深度转化目标进行优化，提升线索转化效率。而搜索销售 Agent 能够结合商家的知识库和行业知识库，让其能够像专业的客服一样回答客户的问题，满足多轮对话需求，甚至实现全流程托管。

Tailored for the local services scenario, we have launched three specialized agents: the target users exploration agent, the deep conversion agent, and the sales agent. The target users agent leverages the capabilities of LLMs to gain a profound understanding of lead-based products and services.

By inferring users' latent needs based on their behaviors on the platform, it significantly improves the conversion rates and cost stability of clients' marketing placement. The deep conversion agent utilizes the long-context understanding capabilities of LLMs to accurately grasp user intent.

It optimizes model performance specifically towards deep conversion goals, thereby boosting the efficiency of lead conversion. Finally, the sales agent integrates merchant-specific and industry knowledge bases.

This enables it to respond to customer inquiries like a professional service representative, handle multiturn conversations, and even achieve fully autonomous end-to-end workflow management. 在组织赋能方面，由

CodeFliker 升级的 MyFliker 已成为快手员工的 AI 工作伙伴。MyFliker 接入了多种行业内领先的大模型，具备主动响应、推理与规划、记忆等通用 Agent 的核心能力，并可以通过 Skill 调用工具或垂直 Agent 完成各类复杂工作任务。接下来我们将持续推动 AI 能力渗透到员工的日常工作场景，提升员工的工作体验。总之，我们将继续加速 AI 技术与业务和组织的深度融合，为合作伙伴及公司创造更具想象力的商业价值与增长空间。

In terms of organizational empowerment, MyFliker, the upgraded version of CodeFliker, has become the AI work companion for Kuaishou employees. It integrates multiple industry-leading large models and possesses core capabilities of a general-purpose agent, including proactive response, reasoning and planning, and memory.

Furthermore, it can leverage skills to invoke tools or vertical agents to handle various complex tasks. We're committed to continuously embedding AI capabilities into employees' daily work scenarios, significantly elevating their overall work experience.

In summary, we will continue to accelerate the deep integration of AI into our business operations and organizations, creating greater commercial value and growth opportunities for both the company and our partners.

Thank you. Next question, please, operator.

下一个问题是来自

evening. Thanks, management, for taking my question.

We have seen company completed the integration of e-commerce and commercial traffic in Q4 last year. Then how should the result of the integration you see so far in Q1?

How should we think about the monetization in e-commerce for the full year 2026? Thank you.

谢谢你的问题。电商和商业化流量的融合机制核心是为了提升电商和电商广告分发的同向性。具体来说，一是投流帮助商家放大在电商的流量获取优势；二是经营好、高

GPM 商家也能在商业化流量中拿到更多的曝光。流量融合落地后，我们看到全域电商流量在涨，买家在涨，商家也在涨。2026年第一季度，电商商业化流量仍然保持了高单位数的增长。有效的营销投放不断激发和拓宽了电商买家的兴趣，带动电商营销撬动的月度活跃买家数同比增长超过了 20%。同时动销投流商家数呈现同比近 40% 的高增趋势。流量融合机制对平台商家放大了杠杆跳动作用，帮助商家实现了经营规模的突破，商家结构也更为健康。前面也提到了，去年我们推出了乘风计划项目。在今年聚焦品牌引入且流量融合机制助力下，一季度品牌商家全域 GMV 同比增长超过了 25%，其中乘风计划项目品牌的广告消耗同比增长了 42%。

Thank you for question. The integration between e-commerce and commercial traffic was fundamentally designed to align our e-commerce with e-commerce advertising distribution.

To be more specific, first, marketing placement helped merchants amplify their advantages in acquiring traffic within e-commerce. Second, high GPM merchants with strong operating performance were also able to secure more advertising traffic.

Following this integration, we achieved increases in e-commerce traffic, our buyer base, and the number of merchants across omni-domain scenarios. In Q1, e-commerce commercialization traffic maintained high single-digit growth.

Effective marketing initiatives continuously stimulated and expanded e-commerce buyer interest, driving a more than 20% year-over-year increase in the number of e-commerce monthly active paying users attributable to marketing. While the number of active merchants using marketing placements showed strong growth momentum, increasing by nearly 40% year-over-year, this mechanism has amplified the scaling leverage available to brand merchants, enabling them to achieve breakthroughs in operational scale while contributing to a healthier merchant structure.

As mentioned earlier, we launched the Voyage initiative last year, benefiting from our own strategically focused feature on brand acquisition and traffic synergy. GMV generated for brand merchants across omni-domain scenarios increased by more than 25% year-over-year, while advertising spending in brands under the Voyage initiative increased by 42% year-over-year.

在宏观消费没有显著改善，以及合规政策带来的平台部分商家经营效率的低下这样的背景下，我们会持续深化全站推广、全店托管等智能化投放的技术能力，结合流量融合机制的进一步落地，聚焦资源引入优质商品和内容供给，对在平台有长效经营能力和意愿的品牌和均型、平衡型商家持续给予流量扶持。尽管短期对电商业务综合货币化率的增长带来一定影响，但我们觉得这是平台提升商家生态的契机，长期来看相信这是对于商家生态的结构性调整，会为未来更健康、可持续发展的电商商业生态打好基础。 As the macro consumption environment has yet to show significant recovery and compliance policies have weighed on operational efficiency for certain merchants on our platform in the near term, we'll continue to strengthen informational capabilities of our intelligent placement solutions, including our omni-platform marketing solutions and our full store hosting.

We'll further roll out our traffic integration mechanism and will focus our resources on introducing high-quality products and content supply, while consistently offering traffic support to brands and merchants with balanced profiles who are capable of and committed to sustainable long-term operations. Although in the near term our overall e-commerce monetization rate growth may be impacted slightly, we see this as an opportunity to strengthen our merchant ecosystem.

Over the long run, we believe the structural adjustment to the merchant ecosystem will lay a solid foundation for a healthier and a more sustainable development of our business ecosystem.

Thank you. Next question, please, operator.

下一个问题是来自美银证券的

AI 漫剧增速非常快，想请教管理层怎么看背后的核心驱动因素？那我们应该如何思考未来增长的持续性呢？谢谢。My question is about the AI video content. The AI comic-style short plays have been growing very fast recently.

How does management view the drivers for this trend? How to think about the growth sustainability into the future?

Thank you. 谢谢你的问题。正如大家所看到的，近期快手 AI 漫剧业务与行业一样迎来了爆发式的增长。26年的一季度快手 AI 漫剧的营销消耗同比增长超过了 100 倍，环比增长超过了 150%。截止 3 月底，快手平台上的 AI 漫剧单日线上营销消耗峰值已突破了 2000 万元人民币。这背后的核心驱动力在于 AI 显著降低了漫剧生产成本，推动供给快速扩张，进而带动了用户消费和投流需求的释放。

Thank you for the question. As you noted, in Q1, marketing spend on Kuaishou AI comic-style short plays grew more than 100 times year-over-year and more than 150% quarter-over-quarter.

As of the end of March, the peak of daily marketing spend on Kuaishou AI comic-style short plays exceeded 20 million RMB. The core driver behind this growth is AI's ability to substantially lower production costs, enabling content supply to expand rapidly, and subsequently driving stronger user consumption and marketing placement demand.

第一，从供给端看，AI 显著降低了漫剧的制作成本和创作门槛。AI 已经可以覆盖角色设计、分镜、特效、配音和后期剪辑等多个环节，不需要演员、场地和拍摄设备，制作周期也明显缩短，3 到 4 周即可完成。公开测试显示，AI 漫剧的单部成本 8 到 15 万元，较真人短剧下降了 70% 左右。这使得更多创作者和机构能够进入这个赛道，带动内容供给的快速扩张。据第三方数据显示，2026年3月，单月 AI 漫剧上线量约 4.7 万部，超越短剧 2025 年全年上线量 3.3 万部。2026年第一季度，快手平台的日均投流漫剧数量环比增长了 215%。供给规模的扩大推动了 AI 漫剧消耗的增长。第二，从需求端看，AI 漫剧不仅能承接部分短剧用户的内容消费需求，还实现了短剧用户的破圈。尤其在玄幻、仙侠、科幻等题材上，AI 漫剧能够突破真人拍摄成本和制作条件的限制，满足更加多元的内容消费需求。

First, on the supply side, AI has significantly reduced production costs and lowered barriers to entry for creators. AI can now handle multiple stages of production, including character design, storyboarding, special effects, dubbing, and post-production editing.

It eliminates the need for actors, filming locations, and production equipment, which significantly shortening the production cycle to just three to four weeks. Public data shows that the production cost of a single AI comic-style short play ranges from 80,000 to 150,000, approximately 70% lower than traditional short plays.

This cost advantage has lowered the entry barrier for creators and studios, driving rapid expansion in content supply. According to third-party data, around 47,000 AI comic-style short plays were released in March alone, surpassing the 33,000 short plays that were released over the entirety of 2025.

In Q1 2026, the average daily number of comic-style short plays with active marketing placement on Kuaishou platform grew by 215% quarter-over-quarter. This massive supply expansion has propelled growth in marketing spending on AI comic-style short plays.

Second, on the demand side, AI comic-style short plays not only catered to core needs of existing short play viewers, but also expanding to broader user segments, especially in genres such as fantasy, xianxia, and science fiction. AI comic-style short plays can transcend the cost constraints and technical limitations of live-action production, therefore meeting more diverse content consumption needs.

第二，在行业趋势之外，快手

AI 漫剧增长较快也和平台的持续投入密切相关。首先，早在 2025 年我们就开始关注并投入 AI 漫剧赛道，提供了一级流量扶持和现金激励，在内容供给建设和商业化承接上都做了前瞻性布局。其次，围绕供给侧我们持续运营漫剧生态，吸引更多创作者参与内容生产，并拓展更多中小漫剧工作室。此外，我们也在推动小说版权和漫改资源的撮合，帮助优质 IP 更快转化为优质漫剧内容。与此同时，我们成熟的内容消费和商业化链路也能够承接好 AI 漫剧内容供给，帮助优质内容更高效的完成分发和商业化放大。

Beyond broader industry needs, the fast growth of AI comic-style short plays on Kuaishou is also closely tied to our continuous effort in this category. First, as early as 2025, we began to closely track and invest in this emerging segment.

We provided 100 million-scale traffic support and cash incentives, while laying the groundwork early for both content supply development and commercialization. Second, on the supply side, we have been continuously developing the UGC ecosystem to bring more creators and more small and medium-sized studios into AI comic-style short plays.

We're also helping connect novel copyrights with comic adaptation resources, so that high-quality IP can be turned into high-quality AI comic-style short play content more efficiently. Meanwhile, Kuaishou already has a mature content consumption and commercialization ecosystem.

This allows us to better support the growing content supply, distribute quality content more effectively, and further amplify their commercialization potential. 展望未来呢，关于

AI 漫剧增长的持续性，我们对于在中期实现稳健增长持乐观态度。第三方数据预测呢，2026年国内漫剧市场规模有望突破 300 亿元，并在 2030 年超过 850 亿元。对于快手来说，我们兼具繁荣的用户生态、领先的视力生成模型以及成熟的内容分发和商业化能力。因此我们有信心通过内容与机制度的深度整合，推动平台 AI 漫剧实现持续的增长。

Looking ahead, we remain optimistic about the continuous growth of AI comic-style short plays, and we expect to see robust growth in the medium term. Third-party data projects that the market size for AI comic-style short plays in China will exceed 30 billion in 2026 and surpass 85 billion by 2030.

At Kuaishou, we're well-positioned with a vibrant user ecosystem, industry-leading video generation models, and mature capabilities in content distribution and commercialization. As such, we're confident that through the deep synergies between content, technology, we will drive sustained growth in AI comic-style short plays on our platform.

Thank you. Maybe the last question, please, operator.

感谢管理层接受我的提问。我的问题是关于财务的。那想请教公司的现金流管理政策是怎么样呢？那在资本开支和股东回报上未来的规划如何？那这是否会对公司现金流状况造成影响？谢谢。Thanks management for taking my question. My question about financials.

Could management share your cash flow management policy, and what are the plans for capex and the shareholder returns going forward? Will this plan have any impact on the company's cash flow position?

Thank you. 好的，谢谢你的问题。公司一直保持着谨慎的资金管理策略，在考虑安全性和流动性的前提下，最大限度提高资金的管理效率。公司预计今年的资本开支

260 亿元人民币。目前来看呢，指引暂不作调整。而且资本开支投入大部分预计主要发生在下半年。同时我们为了应对算力价格上涨进行了提前的采购储备。这是我们主动应对市场价格波动的举措，可以更好的帮助我们在市场价格上涨阶段控制算力的采购成本。

Thanks for the question. The company has consistently adhered to a prudent capital management strategy, maximizing capital efficiency while ensuring safety and liquidity.

We still expect capex of approximately 26 billion this year, and currently there is no update to this guidance. We expect the majority of the total capital expenditures will be incurred in the first half of this year.

In addition, we have taken proactive measures to build advanced procurement and inventory buffers amid rising computing power prices. This is a deliberate step to manage market volatility, allowing us to better control procurement costs for computing resources when prices move upward.

那么我们始终重视为股东创造可持续的长期价值，并坚定不移的执行积极的股东回报策略。通过持续且稳定的分红与股份回购等多元化的方式，切实回馈广大股东的信任与支持。这体现了我们对公司未来业务长期向好发展以及强劲现金流创造能力的坚定信心。在今年

30 亿港币的年度分红的基础上，我们还持续积极的进行股份回购。我们预计 2026 年全年包括分红和股份回购在内的股东回报金额将较去年进一步增加，使股东回报率进一步提升至 4% 左右的水平。

We consistently prioritize the creation of sustainable long-term value for shareholders, we remain firmly committed to our proactive shareholder returns policy. Through a combination of sustained and stable dividends, share repurchases, and other diverse mechanisms, we deliver tangible returns to our shareholders for their trust and support.

This demonstrates our firm confidence in the positive development of our business over the long term and our strong cash flow generation. Building on an annual dividend of 3 billion Hong Kong dollars this year, we will continue to actively repurchase shares.

We expect total shareholder returns in 2026, including dividends and share repurchases, to increase compared to last year, with an overall shareholder return yield of around 4%. 从现金流的情况来看，尽管我们有

260 亿人民币的资本支出，我们的目标依然是继续保持全年集团层面正向的自由现金流。我们将以当下的精准投入撬动未来的盈利增长。在坚定进行 AI 战略投入的同时，我们将严格把控财务风险，保持健康的现金储备，以稳健的财务结构为 AI 时代的长期的、高质量增长保驾护航。

In terms of cash flow, even with 26 billion RMB in capex, we still aim to maintain positive free cash flow at group level for the full year. By executing high-precision targeted investments, we aim to unlock greater profitability growth in the future.

As we firmly invest in our AI strategy, we will strictly manage financial risks and maintain a healthy cash reserve, ensuring a solid financial structure to safeguard our long-term, high-quality growth in the AI era.

Thank you, operator. That's the end of the Q&A session.

今天的问答环节到此结束。现在有请

感谢大家今天的参与。如果您还有更多问题，欢迎随时与快手的资本市场及投资者关系团队取得联系。谢谢大家。Thank you once again for joining us today. If you have any further questions, please contact our Capital Market and Investor Relations team anytime.

Thank you.

Thank you.