“Kuaishou was surpassed by Keling”

KuShou is using today’s profits and more flexibility to buy a “ticket” into the AI era. As a new business, Kangle has been valued beyond its parent company’s estimate from the beginning. With the hopes of the entire community on its shoulders, Kangle needs to prove that it deserves high expectations. During the performance call, Cheng Yixiao admitted that the company is experiencing short-term challenges due to pressure on revenue and the impact of persistent AI investment on profit levels. In the second quarter, KuShou’s revenue reached 35.535 billion yuan, with a slowdown in year-over-year growth. Of this, online marketing services accounted for 20.639 billion yuan, with a growth rate of only 4.4%; live streaming services generated 8.69 billion yuan, a decrease of 13.5% year-over-year. KuShou attributed the reasons to proactive adjustments to the structure of high-income streamers and efforts to make the live streaming ecosystem healthier, but a more realistic background is the stricter regulation in the live streaming industry. Last year, KuShou was fined 119.1 million yuan for issues related to pornographic content and compliance in live streaming; the “Regulations on the Supervision and Management of Live E-commerce” implemented in February 2026 standardized the industry. KuShou made passive adjustments, but other services including e-commerce and Kangle became the only bright spots, with revenue growth returning to 13.5%.