🎁 The China-concept earnings season is drawing to a close, with Xiaomi, Kuaishou, and PDD Holdings reporting back-to-back this week, followed closely by Meituan—who will come out on top?

Following Tencent and Alibaba’s earnings releases, this week brings an intense wave of reports—May 26 $XIAOMI-W (01810.HK)$takes the stage first, May 27 $KUAISHOU-W (01024.HK)$ and $PDD Holdings (PDD.US)$sees a double release, $MEITUAN-W (03690.HK)$Following closely, earnings will be released on June 1. Combined, these four companies span four core segments—smart hardware, short-video e-commerce, lower-tier consumer markets, and local services—offering a panoramic view of the China-concept ecosystem!

If the central tension in the previous round of BAT earnings was 'AI spending versus profit resilience,' this week’s theme is 'strategic retreat to advance'—nearly every company is willingly enduring short-term pain to achieve structural upgrades. Xiaomiis cutting low-end smartphones to protect margins,Kuaishouis investing heavily in computing power to nurture its AI capabilities., PDD Holdings under the new regulatory normalis seeking new anchors for growth... The market no longer focuses solely on revenue growth rates, but instead asks:Whose 'retreat' can truly pave the way for 'advance'? Whose strategic investments are closest to yielding returns?

Xiaomi: Q1 may bring pressure, but EVs and AI underpin a new narrative

$XIAOMI-W (01810.HK)$ will release its Q1 2026 earnings tomorrow (May 26). Frankly speaking, this is likely to bea quarterly report with "unappealing" numbers but sound underlying logic.

Overall expectations: both revenue and profit are expected to decline, but the reasons behind the figures matter more than the numbers themselves

Bloomberg consensus estimates show Xiaomi’s Q1 revenue at approximately RMB 100.8 billion, down about 9% year-over-year; EPS is expected at RMB 0.175, down roughly 58% YoY; and adjusted net profit is forecast to decline by about 44–49% YoY. This marks Xiaomi’s first year-over-year revenue decline in years, which the market has dubbed its 'most pressured moment in recent times.'

However, drilling down, the main driver of the revenue decline is Xiaomi’s deliberate recalibration of its two traditional businesses—smartphones and IoT—not a collapse in demand. The profit contraction further reflects cost pressures from rising memory component prices.

Kuaishou: Slight revenue growth but likely lower profits—is K-Ling AI a 'sweet burden' or a 'bottomless pit'?

$KUAISHOU-W (01024.HK)$Will announce Q1 2026 earnings after the market closes on Wednesday, May 27.

Overall outlook: stable revenue, profit under pressure

Based on consensus estimates from multiple international brokerages,Q1 revenue is expected to be approximately RMB 33.431 billion, up 2.52% year-over-year. Breaking it down: advertising remains solid, e-commerce sees modest growth, live streaming continues to decline, and Kuaishou’s AI (Kling AI) contributes only limited incremental revenue.

Kling AI: the source of profit pressure, yet also the core driver of valuation upside

From a commercialization standpoint, Kling AI generated actual Q1 revenue of roughly RMB 380–430 million. Annualized recurring revenue (ARR) as of April stands at an estimated USD 400–420 million (base case), with an optimistic scenario reaching USD 500 million. This indicates Kling AI is transitioning from a 'cash-burning experiment' to a phase of 'measurable revenue,' though it remains far from covering its compute costs.

Kuaishou’s core dilemma in Q1 is essentially identical to the challenge Tencent faced last week:AI investments are eroding short-term profits, and the market needs to see a clear slope of revenue realization. Following the earnings release on May 27, market focus will center on Kling AI’s ARR growth trajectory, the pace of compute cost amortization (is it a one-time peak or sustained drag?), and whether core businesses—advertising and e-commerce—can accelerate monetization through AI enablement.

PDD Holdings: Amid its underlying strength, the market seeks a new pricing anchor

$PDD Holdings (PDD.US)$ It is also expected to report its Q1 2026 earnings on May 27. Compared with Xiaomi and Kuaishou, which are facing profit pressure, PDD Holdings still boasts the most solid fundamentals among this group of companies.the most robust.

The market expects Q1 revenue of approximately RMB 109.4 billion, with overall financial performance remaining strong. In an environment of slowing global e-commerce growth, Temu’s continued international expansion and improved monetization efficiency on its domestic platform remain the twin engines driving growth.

The focus for PDD Holdings is no longer whether it will beat expectations—it has nearly done so every quarter in recent periods—but how the market will reprice the sustainability of its growth. Against a backdrop of tightening overseas regulatory scrutiny and uneven domestic consumption recovery, management’s commentary on Temu’s path to profitability, governance of its domestic merchant ecosystem, and progress in applying AI to enhance supply chain efficiency will be key variables influencing its future valuation.

Meituan: Can the narrative of narrowing losses continue? We’ll find out on June 1

$MEITUAN-W (03690.HK)$ Will release its latest earnings on June 1. After incurring significant losses in 2025, market expectations for Meituan have shifted from 'growth' to 'loss reduction'.

The company previously stated explicitly its intention to reduce losses in its core local commerce segment, signaling that aggressive subsidies in areas like instant retail and community group buying over the past year are gradually being scaled back. The market will closely watch: the pace of margin recovery in its core food delivery business, whether its in-store, hotel, and travel segment can continue delivering positive profits, and whether the loss reduction in new business segments aligns with expectations.

Four companies, four distinct 'strategic retreats to advance': Xiaomi retreating from low-end to pursue premium, Kuaishou sacrificing short-term profits for an AI-driven ecosystem, PDD Holdings trading growth speed for quality, and Meituan scaling back subsidies to chase profitability.Fellow investors, which company’s 'retreat' do you think is most likely to yield real 'progress' in the second half of the year?After this round of earnings reports, which stock are you most inclined to add to your position? Share your thoughts in the comments below! 🔥

【Contest with Prizes】Double rewards combined—earn points effortlessly!

🏆 Contest 1: Biggest Gainer Showdown

Pick the stock you believe will see the highest gain on its first trading day after reporting earnings. Fellow investors who make correct predictions will split40,000 points!

🏆 Contest 2: Speak Your Mind

Xiaomi vs. Kuaishou vs. PDD Holdings vs. Meituan! What’s your view on these four companies’ earnings outlook?

Share your opinion in the comments—submissions of at least 30 words that are thoughtful and well-reasoned will receive 66 points!

Note: Both Contest 1 and Contest 2 will end at 15:59 Beijing time on May 27. If all four stocks close lower on their first trading day post-earnings, all participating fellow investors in Contest 1 will split the points equally. Rewards from both contests are stackable. The list of winners will be announced and rewards distributed after this earnings season concludes.

Earnings season is here for star stocks—how can you deploy positions effortlessly? Futubull AI breaks down the key insights and helps you build an options strategy in three steps >>

Ask Futubull AI: Xiaomi, Kuaishou, PDD Holdings, and Meituan are about to release their earnings—what are the most critical performance metrics to watch for each?

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