ByteDance Executive Responds to 'Net Profit Drop Over 70%': Operations Not That Poor

According to monitoring by Dongcha Beating, Li Liang, Vice President of Douyin Group, responded on Weibo while sharing related reports that the claim of ‘ByteDance’s net profit dropping 70% by 2025’ is based on results calculated under international accounting standards. He explained that this figure includes increased investments in emerging businesses as well as changes in preferred stock and option costs, which ‘do not reflect the essence of operations.’ He stated that due to the slowdown in Douyin’s e-commerce growth and investments in new businesses, ByteDance’s operating profit margin in the second half of the year has only slightly declined, far less than what media reports suggest; if not considering changes in preferred stock and option costs, overall revenue and profit are still growing, and the trends for TikTok e-commerce and emerging businesses are also positive.