执行进展顺利；通过创新释放AI潜力

Chra (PRC I Inleme.Kuaishou Equity ResearchJanuary 5, 2026 Execution on Track; Unlocking Al PotentialwithInnovations We expect Kuaishcu to execute an track to meet our revenue and nonIFRS eernings estimates in 4Q. For Kling. it launches a numlber of updatesin Dean-25 (1) unified rnulti-rnadal VIDEO O1 rnodel; (2) 2.6 versinn whichgenerates visuals, natural voiceovers and matching souncl effects; (3)digital hurman 2.0. As highlighted ir our 2026 outlook (link), video generationis a huge market in early stages of development. Continuec innovations areexpected. Maintair Buy. 4Q results preview. w: slirale lclal ravnu: Io grov bry 1n% YeY (un:tharnged; Ic:RMB30.abri. GMV is expecled to grov al T2.5% YuY (unthargec). Dy segren, ve eslima.eonline ma:keting revenue ta increase 12.5% YoY, miny fsctoring in softer reverue in Brszilsu2 to the edjustmert 1 payment colcies other revenue is expected to grov 22.4% YoYconsisering higher e osrrmerce revenue (e g. KoL distribution) and revenue from Klng.We meintein our Klng revenue assumption; in 4Q ard ful year 2025 unchanged. Lio-(t. -uE: ,ae u', auopo eda sars fuaecosystem. Vie estinate GPM to expand YoY to about E5.5% and S&M ratic te be atcout 3C%As a result, overal ner-IFRS eemings sre expected te reach atout RMB5.4bn (unchenged) Focus areas on the upcoming earnings conference call (1) Lpdstes on Kling s.rategies andmcnet zticn cutlcok in 2026 (2) updstes sbcut the edcresssble market for vlceo generationmodel and oompetitve landscepe:(3) GMv outlcok and irends for various product ceregories(4; Number of mon:hly sctive buycrs. ordcr frequercy cnd ASP trerds; (5) Trcnds in operatngrrietrics, inrluding number of [DAU, MAlI snd tirme spent; (6) Cnline atvertising rornentumin tcoriestic ard cverseas mrarke.s; (7) Cullock [or ecPM ard ad loartis; (a; Live-slreaningrevenue growth: culook. (9; GPM outlock; (1c) Trencs in sales and marketing expenses; (11)Trencs in dome3tic oaereting profi; end mergn. (12) Ove'seas investmen: stretegjes, (13)3.cuc asgucundaJ auus uc sa)spdn (v L) pe :sa/qeu) Nau uo sa;spdn Valuation and risks. e mairtain cur Buy rering enc PT. Rlsks incluce: (1) slower-then-expected gov/th ir the number cf users and tima spert due to interse competticn 6ndtisruptivc innovation: (2, mecro hearwinds lcad to softcrthsn-cxpcctcd sdvcrtising growthund (3) rnkr: tstringrt rogi.lntisris. Thomas Chong* |Equity Analyst552 3743 50* 6 thoma5 chc92/xmericc.ccm Jefferies We would like to thank Erica Qiu, employee of Evalueserve Inc., for providing research support services to our preparation of this report. Company Description Kuaishou Kua shcu is cne or the leading live-streaming slatfoms globally by gross ailings fron vinual gifing, sverege live-streeming MFU, average DAU,snd live-streamirg e-ccmmerce G'v'v. Its missicn is to beccme China's most custcmer-focused company to meet its users' needs. KuaishouFlegship (2071) snd Kuaishou Exaress (2019) are tha comceny's tv/o msst popular apps. designec to ceter t dffarent user neecs, Irn Ine ithth: :ngnys phinsnphy of rmhracing al lifestyks CompanyValuation/Risks We have a Buy raling ian: HKD:106 PT basut: on SCTP vali.stisn. Riks inclure: (1) sl:vNe-ha1-exps:te:t grovith in the: nurriser :i 1.srs anir: tine:spent due to iniense competition and disraplive inmnovation, (2) macro headvrincs leading to scfter-fhai-expected atcvertising growih, ard (3)strirgen: regustions. Analyst Certification. I. Thomas Chong, cerify thet allaf the vkns exaressad in ths research rapan accurately raflaat my personel vkas cbo.t the sutjo3t seountyics) andvievs expressed in this raseeroin reportsuujec, coizany,;iesj. I also 2ertify tal no μarl of rry corrpersalion wzs, s, cr wil be, citectly or indirectly, r aked to tfe specifie recomreridalicrs or I. Zoey Zong. cerily that ell of the vievs expressec in tlis researcth repo-t accuralely rellec! iy pe'sorel views ebout the stbjecl securitylies) anc sutjec.samaany(ies) 1 alsa cerify that nn prt af my compcrsaticn vas, Is, or wtl ha, dirastly ar indirn:tly, ra atad tn the saaa:fic mrcmnendatinns or vlms11crn1 ypirasai s1,n passa.tn Registration of non-US analysts: Thonas Chong Is ompioyed ty Jcffenics Hcrg Kong Limitcc, a ron-.JS cffilct of .Jaffcrics LLC crcis rot rog stcrad/qualified as a research aralysl sill: FINRA, This aralystis) ney ro: be 2n associatec persar of Jefreries LLC, FINRA rrernze: fr and theretcre neyfq Fpy saqurees Euipel pue saoua/eadce gqnc fuguoo eelqns e tix suoso urwo2 to suoqaursed pue Lt27. en 7Ni et, c, efqns Bg aou9 research arelys.. Registration of non-US analysts: Zoay Zongis crnployec ty Jerferies Horg Kong Lmitec, e ncr I,S e*nletea c Jofferiee LC orc ls rct registerec/cualfedas aressarch ansysl with FINRA. Ths aralysifs) isy ret te 2n associzted perso1of Jefferies LLC, aFINRA Tenter fir, arctherefure Isy at subjecto the FINi,4 Rule 2241 and restrictions on conmuncstions wt1a sutjeotoopeng.pubic epaarerces endtrecirg soouitiesreld by aresaach analysto