2021-04-27 08:31Financial Performance - Total revenue for 2020 reached RMB 58,776,097 thousand, representing a 50.2% increase from RMB 39,120,348 thousand in 2019[15] - Gross profit for 2020 was RMB 23,814,637 thousand, with a gross margin of 40.5%, up from 36.1% in 2019[15] - The company reported a net loss attributable to equity holders of RMB 116,635,242 thousand for 2020, a significant increase of 493.5% compared to RMB 19,651,534 thousand in 2019[15] - The adjusted EBITDA for 2020 was a loss of RMB 3,616,075 thousand, compared to a profit of RMB 3,591,370 thousand in 2019[15] - Operating loss for 2020 was RMB 10,319,953 thousand, compared to a profit of RMB 688,684 thousand in 2019[15] - The company reported a substantial increase in other comprehensive income, amounting to RMB 10,639,268 thousand for 2020, compared to a loss of RMB 928,335 thousand in 2019[19] - Adjusted net loss for 2020 was RMB 7.95 billion, compared to an adjusted net profit of RMB 1.03 billion in 2019[31] - The company incurred a pre-tax loss of RMB 117.2 billion for the year 2020, primarily due to fair value changes of convertible redeemable preferred shares and increased sales and marketing investments[114] User Engagement - Average daily active users (DAUs) increased to 264.6 million in 2020 from 175.6 million in 2019, marking a growth of 50.7%[18] - Average monthly active users (MAUs) rose to 481.1 million in 2020, compared to 330.4 million in 2019, reflecting a growth of 45.6%[18] - The average daily usage time per active user increased by 17.0% to 87.3 minutes in 2020, compared to 74.6 minutes in 2019[22] - Over 25% of average monthly active users on the Kuaishou app were content creators in 2020, highlighting the platform's engagement[22] Revenue Streams - Online marketing services revenue surged by 194.6% to RMB 21.9 billion in 2020, accounting for 37.2% of total revenue, compared to 19.0% in 2019[23] - The total e-commerce transaction volume on the platform reached RMB 381,168.5 million in 2020, a substantial increase from RMB 59,641.1 million in 2019[18] - Live streaming revenue grew by 5.6% from RMB 31.4 billion in 2019 to RMB 33.2 billion in 2020, attributed to an increase in the number of paying users[38] - Average monthly paying users for live streaming rose by 17.8% from 48.9 million in 2019 to 57.6 million in 2020[38] - Other services revenue increased over 13.3 times from RMB 259.5 million in 2019 to RMB 3.71 billion in 2020, mainly due to the expansion of e-commerce[40] Cost Management - Total sales cost increased from RMB 25 billion in 2019 to RMB 35 billion in 2020, representing 63.9% of total revenue[34] - Research and development expenses surged by 122.4% from RMB 2.9 billion in 2019 to RMB 6.5 billion in 2020, driven by investments in AI and big data technologies[48] - Sales and marketing expenses increased by 169.8% from RMB 9.9 billion in 2019 to RMB 26.6 billion in 2020, accounting for 45.3% of total revenue[46] - The company’s cost management strategies have resulted in a 5% reduction in operational expenses, enhancing overall profitability[152] Assets and Liabilities - The total assets of the company reached RMB 52.15 billion in 2020, up from RMB 32.41 billion in 2019[20] - Non-current liabilities increased significantly to RMB 189.01 billion in 2020, compared to RMB 72.77 billion in 2019[20] - The company’s total liabilities increased due to strategic decisions to expand user base and enhance user engagement[114] Strategic Initiatives - The company plans to continue investing in its ecosystem and enhancing user experience through diverse content and improved services in 2021[28] - The company aims to enhance its technological capabilities and expand its ecosystem and monetization abilities as part of its future development strategy[128] - The company is actively involved in strategic investments and acquisitions to foster collaboration within its ecosystem[147] Shareholder Information - The company has no plans to distribute any dividends to shareholders in the foreseeable future, and the board does not recommend a final dividend for the year ended December 31, 2020[126] - The company’s shareholding structure shows that 79.21% of the issued share capital is held by other shareholders, with the largest shareholders holding 10.28% and 8.15% respectively[132] - The company has a dual-class share structure, with Class A shares having 10 votes per share and Class B shares having one vote per share[144] Compliance and Governance - The company has confirmed compliance with applicable laws and regulations, with no incidents leading to fines or penalties during the reporting period[140] - The company has established a remuneration committee to review and recommend the remuneration of directors and senior management, ensuring a formal and transparent process[169] - The company has not been involved in any legal proceedings that would significantly adversely affect its business, financial condition, or operating performance during the reporting period[140]