Byte Exec Responds to "Net Profit Plunges Over 70%": Business Performance Not That Poor

According to Dynatac Beating's monitoring, Liang Liang, Vice President of TikTok Group, responded on Weibo when reposting relevant reports today, stating that the circulating "ByteDance's 2025 net profit declined by 70%" was calculated according to International Financial Reporting Standards. Apart from increased investment in emerging businesses, it also includes changes in preferred shares and stock option costs, which "do not reflect the operational essence."

His explanation is that, due to the slowdown in Douyin's e-commerce growth and investment in new businesses, ByteDance's operating profit margin in the second half of the year only experienced a slight decline, far less than what the media has reported. If we exclude changes in preferred shares and stock option costs, overall revenue and profit are still growing, and the trends in TikTok e-commerce and emerging businesses are also promising.