While China’s E-Commerce giants have been engaged in a price war for the instant commerce wallet, entertainment and short-form video platforms like Kuaishou have been quietly finding success in technology and content subscriptions as well as video-based E-Commerce. By focusing on local content and offering AI editing tools to advertisers worldwide, Kuaishou has distinguished itself in this market shift, becoming competitive with ByteDance’s short-form video giant Douyin, the “TikTok” of China, as well as China’s largest E-Commerce platforms. To gain a more in-depth perspective on Kuaishou’s latest results, growth drivers, and strategy to compete with Douyin, we spoke to Matthew Zhao, Head of Investor Relations at Kuaishou.

China Internet Recent Highlights:

• China’s internet earnings were mixed in the second quarter as video and social media-oriented companies mostly beat estimates on their top and bottom lines, whereas E-Commerce companies experienced margin pressure from instant commerce competition. However, JD, which entered the instant commerce space just this year with massive consumer subsidies, was more profitable than expected.
• ByteDance could be selling its US TikTok platform and, crucially, licensing its algorithm to a consortium of US-based technology firms, including Oracle, after President Trump signed an executive order approving of such a deal. This raised the valuation of the privately held China internet giant in private markets and pushed up the timeline for a potential initial public offering (IPO).
• KWEB continues to deliver strong returns this year, delivering a total return of 44.06% year-to-date (YTD), as of 30 September, 2025, compared to 18.10% for the Nasdaq 100 Index.¹

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed or sold, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the latest month-end, please visit kraneshares.com/kweb.

China Internet Sector Earnings Report Contents:

• China Internet Sector Recent Highlights
• Subsector Analysis
• Theme Highlight – Kuaishou & Short Video Platforms Take Center Stage In China Internet
• KWEB Top 10 Holdings Earnings Update

For KWEB top 10 holdings, risks, and other Fund information, please click here.

Citation:

1. Data from Bloomberg.

Definition:

Nasdaq 100 Index: The Nasdaq-100 is a stock market index made up of equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is a modified capitalization-weighted index. The index was launched on January 31, 1985. The mostly US-based companies tracked by the index are similar to those held in KWEB.