Kuaishou Announces Completion of ~20 Billion RMB Capital Increase for Kling AI; Alibaba, Tencent, and Baidu Join Shareholder Structure
Kuaishou announced the closing of a ~19.8 billion RMB capital increase for its video generation subsidiary Kling AI, disclosing final equity stakes including Alibaba, Tencent, and Baidu, along with special voting rights arrangements.
On October 30, Kuaishou Technology issued an announcement on the Hong Kong Stock Exchange stating that all conditions under the capital increase agreement for its video generation business, Beijing Kling AI, have been met. All investors have paid their capital contributions in full as agreed, and the share purchase has been completed. According to the announcement, the total capital contribution paid by all investors upon completion is approximately RMB 19.80184 billion (approximately USD 2.90533 billion), marking the largest single financing event in China's AI video sector to date.
The transaction introduced several prominent institutions and internet giants. Under the newly disclosed equity structure, controlling shareholder Lucky Labs will hold 66.68% of the equity and 52.45% of the voting rights. Kuaishou co-founder, Chairman, and CEO Cheng Yixiao holds 1.01% of the equity and 0.79% of the voting rights. Notably, Gai Kun (also known as Yu Yue), Director and CEO of Beijing Kling AI, holds only 3.02% of the equity but enjoys 23.72% of the voting rights through a special share arrangement, a design intended to ensure management control during independent operations. Previously, on September 30, Gai Kun, formerly head of Kuaishou's Community Science Line, was appointed as Director and CEO of Kling AI.
Major tech companies are also among the shareholders: Alibaba holds 1.38% of the equity and 1.09% of the voting rights; Shanghai Qishan, a subsidiary of Tencent, holds 0.56% of the equity and 0.44% of the voting rights; and Baidu holds 0.28% of the equity and 0.22% of the voting rights. Additionally, the capital increase introduced several new shareholders and adjusted subscription arrangements for some existing investors. For instance, Kingdee Software (China), Wenzhou Ruida, and Gongqingcheng Junkun obtained corresponding repurchase rights through rights and obligations transfer agreements. Meanwhile, Dakang Lanwu and BFI MIDCO signed termination agreements with Beijing Kling AI because they failed to pay their capital contributions within the agreed timeframe and are no longer investors in this round.