Beijing Kunlun Tech Co Ltd

On the evening of August 10, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Gan & Lee Pharmaceuticals signed a licensing agreement with Menarini for the Bofang Glutide project, with an upfront payment of 62 million euros and milestone payments of up to 664 million euros. Construction Machinery plans to acquire 100% equity of Pucheng Clean Energy Company, and its shares will be suspended from trading starting August 11. Guolian Minsheng plans to reduce the registered capital of Minsheng Securities by 10 billion yuan, and Minsheng Securities will mainly engage in wealth management business. Weichai Heavy Machinery plans to invest approximately 538 million yuan to build a high-end equipment manufacturing base for electric power energy. Kunlun Tech plans to transfer its equity in Xianlai Huyu for 750 million yuan and also plans to issue H shares for listing in Hong Kong. Jiemei Technology plans to purchase 100% equity of Aifusi Technology through share issuance, with a transaction amount of 915 million yuan. Zhongke Magnetics plans to issue convertible bonds to raise no more than 609 million yuan, and Huicheng Vacuum plans to raise no more than 955 million yuan through a private placement. Aili Home will suspend trading from August 11 for verification after its stock price surged 185.56% over 11 trading days. In terms of performance, Jiangbolong's net profit in the first half of the year was 10.577 billion yuan, a year-on-year increase of 71,528.66%; Zangge Mining's net profit was 3.638 billion yuan, up 102.09% year-on-year, and it plans to distribute 10 yuan per 10 shares; Debang Technology's net profit rose 49.33% year-on-year, with a planned dividend of 1 yuan per 10 shares; Xinlian Integration's net profit was 278 million yuan, turning losses into profits year-on-year; Ninebot's net profit was 1.008 billion yuan, down 18.79% year-on-year. In addition, Beijing Junzheng, Jiangbolong, Zhaochi Holdings, and other companies disclosed buyback plans, and Fuwei Holdings received a seat project nomination worth approximately 3.936 billion yuan.

The latest weekly large model call rankings from global multi-model aggregation platform OpenRouter show that the top five products are all developed by Chinese companies. Xiaomi's MiMo-V2.5 topped the list with 10.5 trillion tokens called in a single week, up 12 percent week-on-week. Two DeepSeek models ranked second and fifth, forming a high-low mix. Tencent's Hunyuan 3, online for just one month, saw a weekly surge of over 999 percent, making it the fastest-growing model. At the industry level, Guolian Minsheng Securities believes that accelerating AI application development is key to generating positive industrial capital returns from current AI capital expenditure. The leap in open-source model capabilities is greatly boosting application development. ByteDance's Doubao, Tencent's WorkBuddy, and Alibaba's Qwen are rapidly accumulating traffic, and the commercialisation of AI applications is about to begin. In the secondary market, the AI application index has fallen more than 30 percent from its high on 13 January, but rebounded violently by nearly 10 percent in the past week, with a single-day gain of over 5 percent on 31 July. The trio of Yidian Tianxia, Chinese Online, and Tianlong Group, dubbed the Yi Zhong Tian combination, has drawn attention. On the funding side, 28 AI application concept stocks saw net inflows of over 100 million yuan from major funds. BlueFocus topped the list with 2.419 billion yuan and hit the daily limit up, while Kunlun Tech saw net inflows exceeding 1 billion yuan and also hit the daily limit up. As of 2 August, among brokerages' August golden stock picks, Kunlun Tech received two recommendations, while Fengzhushou, Century Huatong, and Zhipu each received one. Century Huatong expects first-half net profit of 4.3 billion to 4.77 billion yuan, a year-on-year increase of 61.87 percent to 79.57 percent.

Vertical short series lasting two to three minutes, born in China, are becoming the world's fastest-growing entertainment business, generating over 11 billion dollars in revenue in 2025 and projected to rise to 26 billion dollars by 2030, according to Media Partners Asia. More than 200 micro-drama apps were available overseas by February 2025, up nearly fourfold from the previous year, with the main audience being women aged 18 to 35, and average global viewing time rising 85 percent to 25 minutes per day. The United States accounts for 37 percent of the global market's in-app purchase revenue, despite having only a 3 percent share of downloads, while Hollywood studios and platforms such as Peacock, TikTok, and Fox are all entering this market. Artificial intelligence is cutting production costs by over 90 percent, with Kunlun Tech reducing costs from 200,000 dollars to under 20,000 dollars per title, and ReelShort expects that by 2027 over 90 percent of content will be produced with AI.

The World AI Conference 2026 witnessed physical AI scaling from concept into reality. Physical AI models such as Kunlun Wanwei Matrix-Game 3.5, Suochen Technology's world physics model, and WeRide WITT made their debuts, with industrial robotic arms, humanoid robots, and autonomous driving emerging as the three core application scenarios. ABB Group Senior Vice President Han Chen noted that physical AI has already been applied in dozens of cases in logistics and 3C electronics. Joyson Electronics and Mech-Mind unveiled full-stack solutions spanning dexterous hands to embodied intelligence brains. World action models that underpin application deployment became a technology bellwether, with Galaxy Universal and Riemann Dynamics Robotics releasing the WAM-TTT and Riemann-1.0 models respectively. Meanwhile, demand surged for motion capture suits, tactile gloves, and other devices used to collect real-world data.

At a special forum during the 2026 World Artificial Intelligence Conference, Kunlun Tech announced a major core model upgrade, unveiling the Matrix-Game 3.5 world model, Mureka v9.5, and the O3 music model. Chairman and CEO Fang Han stated that 2026 will become the inaugural year of world models, marking a critical turning point as AI moves from content generation to understanding and interacting with the physical world. He offered three major industry predictions: world models will enter the physical world of robotics and intelligent manufacturing, becoming a core competitive advantage in the physical intelligence industry; the gaming industry will be the first to be transformed by world models, with Matrix-Game 3.5 enabling real-time evolution of virtual worlds, and within three to five years it will become a universal infrastructure that dramatically reduces the cost of producing open-world games; and tools such as AI music and AI video will shift from technical experiments to mass creative tools, with the Mureka music model lowering the barrier to creation and driving profound changes in the AIGC industry ecosystem. Fang Han emphasized that Kunlun Tech will continue to reduce the cost of AI creation, and attending guests reached a consensus that human-machine collaboration will become the mainstream long-term development model for the entertainment industry.

Kunlun Tech’s Tiangong Short Drama Workbench has introduced a dual-track creation mode combining agent-powered smart storyboarding with an infinite canvas, addressing pain points in the AI short drama industry such as character face-swapping and chaotic shot narratives. The platform’s SD2.0 smart storyboarding features six intervenable processes: script upload, asset extraction, staging map generation, prompt templates, storyboard scripts, and video generation. The director agent automatically parses scripts and batch-generates multi-view assets, fundamentally solving character face-swapping, and automatically generates coherent staging maps before video creation to eliminate character drift. Leveraging this capability, short dramas produced on the platform and launched on DramaWave achieved million-dollar-level revenue within just seven days. The infinite canvas integrates all creative assets, supports 720-degree panoramic scene deduction and visual lighting tools, and includes a built-in 3D director stage that allows character placement in three-dimensional space, enabling advance planning of group and dialogue scenes. Additionally, the platform offers tiered account permission management and a data center for studios, recording computing power consumption details across multiple dimensions with fully traceable cost data. The company stated that the Tiangong Short Drama Workbench will continue to integrate mainstream video large models such as Skyreels, Seedance, and Kling, iteratively upgrading its smart storyboarding capabilities, aiming to make AI a creative assistant that understands scripts and cinematography, freeing creators from random generation and enabling them to autonomously and consistently produce high-quality AI short dramas.