Kunlun Wanwei Posts RMB1.09 Billion Net Profit in H1 2026, Swinging to Profit

Kunlun Wanwei released its semi-annual report on August 19, 2026. During the reporting period, the company achieved operating revenue of RMB5.359 billion, up 43.55% year on year; overseas revenue reached RMB5.203 billion, up 51.21%. Net profit attributable to shareholders of the listed company stood at RMB1.088 billion, compared with a loss of RMB856 million in the same period of 2025, achieving a turnaround to profitability. Net profit excluding non-recurring items was a loss of RMB457 million, and basic earnings per share were RMB0.87. Tiangong AI business revenue rose quarter by quarter, while recovering investment returns drove net profit growth.

In March 2026, the company released its AGI strategy, upgrading to the "4+3 strategy" with video models, music and audio models, game world models, and foundational text and multimodal models as the technical base. The video model SkyReels-V4 was released in February 2026 and entered the first tier in international authoritative evaluations. The Mureka music model series continued to iterate, with V8 released in January 2026, V9 in March, and V9.5 and O3 in July. The game world model Matrix-Game released version 3.0 in March and version 3.5 in July, strengthening long-sequence memory and real-time generation capabilities. The foundational model SkyClaw-v1.0 was released in May, supporting a one-million-token context.

The AI short-drama platform ranked first in monthly active users in overseas markets in the first half of 2026, and FreeReels downloads exceeded 200 million. By the end of June 2026, monthly revenue surpassed USD65 million. The platform DramaWave completed its AI-native transformation, with over 90% of new dramas in July being AI-generated. The Tiangong short-drama workbench SkyProduction launched, integrating global video models to build an industrialized production system. AI music business Mureka opened a complete creative chain from concept to music video, supporting dynamic covers and video generation. The AI game "Cat Forest Town" advanced its development, adding a drama-editing editor function and differentiated NPC behavior feedback.

The Tiangong super agent continued to iterate, launching a desktop version, cloud agent, and multiple skill modules in 2026. In June, design and workflow functions were introduced, and in July it upgraded to version 3.2 and integrated with instant messaging tools. The same month, the smart hardware Skywork Note was released, expanding voice capture and organization scenarios. AI social product Linky optimized character consistency and interactive experience, with user stickiness and average revenue per user steadily improving.

Subsidiary Riemann Dynamics released the world action model Riemann-1.0 in July 2026, targeting embodied intelligence scenarios. In August, it partnered with Guanglun Intelligent and Noitom Robotics to advance model validation and the construction of one million hours of embodied data. Aijieke Core completed a capital increase and share expansion, bringing in multiple industrial investors, with post-investment valuation exceeding RMB4 billion, accelerating chip product development and commercialization.

Opera achieved operating revenue of USD354 million in the first half of 2026, up 24% year on year; adjusted EBITDA was USD84 million, up 31%. Global monthly active users reached 288 million in the second quarter, including 37 million for the Opera GX gaming browser. Product features continued to upgrade, including deep-thinking capabilities and browser connectivity tools. Mobile browser monthly active users grew in the UK and US markets. StarMaker continued to iterate singing features, launching AI voice recognition and personalized voice avatars, with stable operating performance.