Kuaishou to pay first dividend since Hong Kong IPO as AI tools lift quarterly results
China’s No 2 short video app operator will pay a special dividend totalling US$256 million
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.
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.”