Kuaishou Technology on Thursday declared a special dividend totalling HK$2 billion (US$256 million), marking the first time China’s No 2 short video app operator will make such payment since its US$5.4 billion Hong Kong listing in 2021.
Advertisement
The Beijing-based company said it would pay a special dividend of HK$0.46 per share after reporting better-than-expected financial results in the second quarter, driven by gains made from its artificial intelligence tools, according to its filing. Dividend payments to shareholders will be made on October 6.
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.
Advertisement
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.”