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

On April 20, Li Liang, Vice President of Douyin Group, responded on Weibo to the circulating claim that “ByteDance’s net profit will decline by 70% by 2025,” stating that this figure is based on international accounting standards. He explained that, in addition to increased investments in emerging businesses, it also includes changes in preferred stock and option costs, which do not reflect the actual operational situation. He clarified that due to the slowdown in Douyin’s e-commerce growth and investments in new businesses, ByteDance’s operating profit margin is only slightly declining in the second half of the year, far less than what media reports suggest. If we exclude the changes in preferred stock and option costs, overall revenue and profit are still growing, and the development trends for TikTok’s e-commerce and emerging businesses are positive.