Kuaishou-W's stock plummeted 5.04% during intraday trading on Monday, extending recent losses for the Chinese short-video platform.

The decline reflects continued pressure from the company's first-quarter earnings released in late May, which showed net profit fell 27% year-over-year to RMB 2.905 billion, while adjusted net profit declined 26.3% to RMB 3.374 billion. The company's gross margin also contracted from 54.6% to 51.2%, with livestreaming revenue dropping 13.5% and bandwidth costs rising 18.4%.

Adding to the selling pressure, reports indicate that Kuaishou's subsidiary Kling AI is conducting its Pre-IPO funding round at a valuation of approximately US$18 billion, below the previously rumored US$20 billion. The valuation markdown, representing about two-thirds of Kuaishou's current market capitalization, has further dampened investor sentiment toward the company.