Kuaishou's AI-Driven Ecosystem and Strategic Dividend: A Catalyst for Value Creation in 2025

In the rapidly evolving landscape of social commerce and artificial intelligence, Kuaishou Technology (HK:1024) has emerged as a standout player, leveraging its AI-first strategy to redefine user engagement, e-commerce scalability, and shareholder returns. As the company enters 2025, its strategic integration of AI across its ecosystem—coupled with a robust capital return policy—positions it as a compelling long-term investment opportunity in the global tech and social commerce sectors.

AI as the Engine of Growth

Kuaishou's AI-driven initiatives have become the backbone of its operations, directly fueling user engagement and operational efficiency. The launch of Kling AI 2.0, a multi-modal visual language platform, has not only generated RMB150 million in Q1 2025 but also transformed how users interact with content. By deploying tools like Universal Auto X (UAX), which now handles 60% of external marketing spend, Kuaishou has boosted online marketing revenue to RMB18 billion, driving an 8% year-over-year growth in this segment.

The impact on user behavior is staggering: 408 million average daily active users (DAUs) now spend 133.8 minutes daily on the platform, a testament to the power of AI-driven personalization. This has led to a 40% year-over-year surge in mutual followers and over 100% growth in private messages during the Q1 Chinese New Year campaign. Meanwhile, AI-powered content curation has driven 200 billion short-video views and 15 billion live-streaming views, with innovations like multi-modal editing enabling users to blend images, voice, and motion paths. These tools have turned Kuaishou into a one-stop creative hub, attracting both businesses and individual creators.

E-Commerce Synergy and Merchant Empowerment

Kuaishou's e-commerce strategy in 2025 has been equally transformative. The platform's pan-shelf-based e-commerce model accounted for 32% of total GMV, with Q2 2025 gross merchandise value reaching RMB358.9 billion—a 17.6% year-over-year increase. During the 618 Shopping Festival, GMV from product cards and search-induced e-commerce surged by 50% and 140%, respectively, highlighting the effectiveness of AI-driven demand matching.

The company's focus on merchant growth is equally impressive. Initiatives like the Golden Bounty Initiative and KOL Blockbuster Initiative have driven a 50% year-over-year increase in new merchants and a 30% rise in active mall merchants. AI integration—particularly in AIGC content production and smart live streaming—has reduced operating costs for merchants while improving conversion rates. For instance, short video e-commerce grew 30% year-over-year, driven by embedded shopping links and high-quality product curation from live-streaming sessions.

Strategic Capital Returns and Financial Resilience

Kuaishou's financial discipline and shareholder-friendly policies further strengthen its investment case. In 2025, the company declared a special dividend of HK$0.46 per share (HK$2.0 billion total), marking its first such payout since listing. This move, alongside a HK$1.9 billion share repurchase program, underscores confidence in its long-term growth trajectory.

The company's profitability metrics are equally robust: an adjusted net profit of RMB4.6 billion with a 14% margin, and domestic operating profit of RMB4.3 billion. Overseas operations, which achieved profitability for the first time, now contribute to a 54.6% gross margin, reflecting strong pricing power and cost efficiency.

Investment Thesis: A Triple Catalyst for Value Creation

Kuaishou's AI-driven ecosystem creates a flywheel effect: enhanced user engagement drives e-commerce growth, which in turn funds further AI innovation and capital returns. The company's ability to monetize its platform through ads, e-commerce, and live-streaming—while expanding into high-growth markets like Brazil and Southeast Asia—positions it to outperform peers in the social commerce space.

For investors, the combination of scalable AI infrastructure, merchant-centric e-commerce strategies, and generous capital returns offers a rare trifecta of growth and income. With a forward P/E ratio of 12x (as of August 2025) and a dividend yield of 1.8%, Kuaishou presents a compelling risk-reward profile in a sector where many peers trade at premium valuations.

Conclusion

Kuaishou's 2025 transformation is not just about technology—it's about redefining the relationship between content, commerce, and capital. By embedding AI into every layer of its operations, the company has created a self-sustaining ecosystem that rewards users, creators, and shareholders alike. For long-term investors seeking exposure to the next phase of social commerce, Kuaishou's strategic dividend and AI-driven growth model make it a must-watch stock in 2025 and beyond.