--- title: "Unique Research | Kunlun Tech 2023: ¥4.915B Revenue, ¥1.258B Net Profit — Dual Growth as AI Stack Scales" author: "Unique Research" sourcePublication: "Unique Research (FFCAP English library)" originalPublishedAt: "2024-06-12T16:30:00+08:00" canonical: "https://ffcap.cn/en/research/20240612a06ph300" source: "https://ffcap.cn/en/research/20240612a06ph300" language: "en" cnSourceUrl: "https://view.inews.qq.com/a/20240612A06PH300" --- # Unique Research | Kunlun Tech 2023: ¥4.915B Revenue, ¥1.258B Net Profit — Dual Growth as AI Stack Scales _Unique Research · Insight · June 12, 2024_ On **April 23, 2024**, Kunlun Tech (昆仑万维) released its 2023 annual report: revenue **¥4.915B** (+3.8% YoY), attributable net profit **¥1.258B** (+9.2% YoY) — dual growth in top and bottom line. After years of focus, the company has built a full stack spanning compute infrastructure, foundation models, and AI apps, positioning itself among China’s AI leaders. ## Model breakthroughs & multi-line AI matrix Kunlun tracked LLMs/AIGC from 2020. **April 2023**: Skywork (“天工”) 1.0 — dual-100B-class architecture on top GPU clusters, with ~3T high-quality Chinese tokens curated from tens of trillions of raw data. **Feb 2024**: Skywork 2.0 MoE — better complex tasks, latency, train/infer efficiency, scaling. **April 17, 2024**: Skywork 3.0 — **400B-parameter MoE**, among the world’s largest/strongest open MoE models; tech-knowledge +20%, math/code +>30%; multi-turn search & tool use, charting, research/enhance modes, image edit/expand. On multimodal benches including MMBench, Skywork 3.0 beat GPT-4V on several metrics. App matrix: AI search, music, video, social, games. Aug 2023: Skywork AI Search (China’s first search product with integrated LLM). Apr 17: SkyMusic. Apr 18: AI game _Club Koala_ Alpha. Video and social AI also in flight toward commercialization. ## Skywork AI — April’s fastest-growing domestic product Unique Research’s _April 2024 Global AIGC Traffic Monthly_: Skywork AI MoM visits **+120.30%** — ahead of ACE Studio and Kimi.ai, #1 domestic MoM growth in April. Traffic/engagement sit just behind Baidu ERNIE Bot and Alibaba Tongyi among big Chinese players. Six business lines: Opera (overseas info/metaverse), Star Group (entertainment social), Ark Games, Xianlai (casual), Kunlun Capital, and 2023’s AGI/AIGC focus — Skywork AI. ## Search & ads drive dual growth 2023 revenue ¥4.915B (+3.8%). Games and social contracted some; search +21.22% and ads +28.95% vs 2022, to **23.25%** and **33.63%** of revenue. Domestic ¥688M (14.01%); overseas ¥4.227B (85.99%, +8.4% YoY) across Europe/US, SEA, Middle East, Africa. Attributable net profit ¥1.258B (+9.15%). Non-GAAP / excluding non-recurring: ¥659M (−42.86%) — gap mainly fair-value and financial-asset/liability disposal gains/losses. ## Gross margin & cash Gross margin held **78.8%** in 2022–2023 after rising from 2021 — search, ads, virtual items, subscriptions, API, custom work. Net cash +¥156M vs −¥592M in 2022 (+126.47%). Operating CF ¥885M (+6.48%); investing CF −¥431M (vs +¥805M in 2022, −153%) as outward investment stepped up; financing CF −¥288M (vs −¥2.285B, −87.37%) on less repayment/buybacks/equity payables. ## R&D Year-end: >1,500 R&D staff, 300+ masters/PhDs; recruited computer scientist Yan Shuicheng (global #56 / Chinese #14 / Singapore #1 per cited ranking). R&D spend **¥968M** (+40.1% from ¥690M), 19.69% of total opex (from 14.58%) — search models, LLMs, multimodal. G&A share 17.52% (from 13.26%) on equity incentives; sales 32.95% (from 33.07%). Top revenue subs: Skywork AI Pte. Ltd. ¥1.289B; Opera Software Ireland ¥1.209B. ## Skywork formally stood up 2023 “All in” AGI/AIGC; acquired Singularity AI and formed Kunlun Skywork AI — six lines (models, search, music, video, social, games). China: ToB (API/custom) + ToC (Skywork AI Search). Overseas: ToC UGC-oriented content tools. SkyMusic scored **6.65** vs Suno V3 on vocal/BGM quality, naturalness, intelligibility — cited as global AI-music SOTA. _Club Koala_ Alpha + no-code Koala Editor + AI NPCs. ## Opera 25+ years; >300M MAU globally. Opera One + native AI assistant **Aria** (OpenAI partnership) — interpret, translate, summarize, create, recommend; Refiner for style. Free with Opera account; Windows/macOS/Linux/Android/iOS; 180+ countries; 50+ languages. Opera GX: >4,500 Mods on GX.store; >7,000 games on GX.games; GX MAU **27.8M** (+37% YoY); Aria on GX. ## Investment arm Kunlun Capital (since 2015): Dada, Dreame, Pony.ai, SVOLT, etc. Year-end invested capital **¥12.210B** (+16.64% from ¥10.468B). Xiniu: 15 deals in 2023; largest — **$160M** acquisition of Singularity AI (NLP pretrained models / developer API). Kunuo Yingzhan net profit ¥752M. Strategy: beyond minority financial stakes, no more controlling/long-term investments outside AI up/downstream — “embrace AGI.” ## Unique Research view **Chat still dominates.** In April, Kimi.ai passed ERNIE as top traffic AI product in domestic + overseas Chinese-founder boards; user time-on-AI rises monthly. Personal chat assistants took **61.16%** of total duration in April — still the main traffic door. **2C apps get a window.** Model price wars squeeze pure-2B model vendors; 2C players can buy better models cheaper, grow trial users, and experiment — while still needing new monetization and rising UX bars. **Bottom line:** With mix shift and AI leverage, Skywork + Opera can keep lifting organic growth if compute R&D, product matrix, and multi-line C-side keep compounding. _Author: Shen Liang · Editor: Qiuping. Charts attach on ingest (11 images)._ --- Editorial English edition published on UniqueCapital: https://ffcap.cn/en/research/20240612a06ph300 On-site reading page: https://ffcap.cn/en/research/20240612a06ph300