Kuaishou Technology completed subscriptions for Beijing Kling Intelligent Technology Co., Ltd. on Oct. 30, raising nearly $2.91 billion for the entity set up to hold and operate its Kling AI business while Kuaishou-related entities retained control.
Investors paid RMB19,801.84 million, which Kuaishou’s filing said was equivalent to US$2,905.33 million. That was below the RMB20,447.10 million cap, or US$3 billion, established in July.
In the filing’s scenario where employee share-scheme limits are fully used, Lucky Labs would hold 66.68% of Beijing Kling’s equity and 52.45% of its voting rights. Beijing Kuailingrui would hold 2.01% of the equity and 1.58% of the votes. Kuaishou’s July filing describes Lucky Labs as indirectly wholly owned by Kuaishou and Kuailingrui as wholly owned by Lucky Labs.
Some investors took on portions of other subscribers’ commitments. Kingdee Software (China) Co., Ltd. assumed RMB300 million, Gongqingcheng Junke Investment Partnership RMB200 million and MetaX Shuzhi Technology (Shanghai) Co., Ltd. RMB100 million. Kuaishou said remaining commitments of RMB100 million and US$80 million from Dakang Lanwu and BFI MIDCO were canceled after they missed payment deadlines. It said the circumstances behind the cancellations were not attributable to any party.
When it announced the agreement in July, Kuaishou forecast that Beijing Kling would use the funding for expansion, operating needs, working capital and team development if the full subscription cap were reached. The Oct. 30 filing did not specify how the final proceeds would be allocated.
Kuaishou reported that Kling AI generated more than RMB850 million in revenue in the second quarter of 2026, an increase of more than 200% from a year earlier.
Under the July agreement, investors may require Beijing Kling to repurchase their interests within 12 months after specified triggers, including a missed IPO deadline. The repurchase price includes an annual 8% return calculated without compounding. Bloomberg reported in October, citing people familiar with the matter, that banks had been selected to work on a possible Hong Kong IPO that could take place next year; Kuaishou’s filings do not confirm that schedule. The agreement identifies Oct. 30, 2031, or an earlier contractual date, as an IPO deadline trigger.
