2021-09-17 08:39Financial Performance - Total revenue for Q2 2021 reached RMB 19.14 billion, a year-on-year increase of 48.8% compared to RMB 12.86 billion in Q2 2020[30] - Gross profit for Q2 2021 was RMB 8.38 billion, representing a gross margin of 43.8%, up from 34.5% in the same period last year[30] - Total revenue for the first half of 2021 was RMB 36.16 billion, a year-on-year increase of 42.8% compared to RMB 25.32 billion in the first half of 2020[31] - Revenue increased by 48.8% from RMB 12.9 billion in Q2 2020 to RMB 19.1 billion in Q2 2021, driven mainly by online marketing services and other services including e-commerce[60] - Gross profit rose by 89.0% from RMB 4.4 billion in Q2 2020 to RMB 8.4 billion in Q2 2021, with gross margin improving from 34.5% to 43.8%[69] - Operating loss widened to RMB 7.2 billion in Q2 2021, compared to a loss of RMB 2.5 billion in Q2 2020[69] - Adjusted net loss was RMB 4.8 billion in Q2 2021, compared to RMB 1.9 billion in Q2 2020[69] - The company recorded a net loss of RMB 7.0 billion in Q2 2021, compared to a net loss of RMB 37.6 billion in Q2 2020[77] - The company reported a net loss attributable to equity holders for the six months was RMB 64,785.560 million, compared to RMB 68,091.207 million in the same period of 2020, showing a slight improvement of about 4.8%[186] User Engagement - Average daily active users (DAUs) increased to 293.2 million in Q2 2021, compared to 262.1 million in Q2 2020, reflecting a growth of 11.4%[34] - Average monthly active users (MAUs) reached 506.2 million in Q2 2021, up from 474.3 million in Q2 2020, marking a growth of 6.4%[34] - Daily active users of Kuaishou reached 293.2 million in Q2 2021, with a year-on-year growth of 11.9%[38] - Average daily usage time per active user increased to 106.9 minutes, reflecting a quarter-on-quarter growth of 7.7% and a year-on-year growth of 25.2%[38] - The ratio of average daily active users to average monthly active users reached 57.9%, up by 1.1 percentage points quarter-on-quarter[38] Revenue Streams - Online marketing services revenue grew by 156.2% year-on-year to RMB 10 billion in Q2 2021, contributing over 50% to total revenue[37] - Revenue from online marketing services grew by 156.2% year-on-year to RMB 10 billion in Q2 2021[41] - Live streaming revenue decreased by 13.7% to RMB 7.2 billion in Q2 2021, representing 37.6% of total revenue[63] - Other services revenue increased by 212.9% to RMB 2 billion in Q2 2021, primarily due to the expansion of e-commerce business[64] - E-commerce transaction volume reached RMB 145.40 billion in the first half of 2021, significantly up from RMB 72.52 billion in the same period last year[34] Expenses and Losses - The company reported an operating loss of RMB 14.51 billion for the first half of 2021, which is a 91.7% increase from RMB 7.57 billion in the same period last year[31] - Total sales and marketing expenses rose by 100.8% to RMB 11.3 billion in Q2 2021, increasing as a percentage of total revenue from 43.6% to 58.9%[70] - Administrative expenses increased by 149.4% to RMB 864.2 million in Q2 2021, with the percentage of total revenue rising from 2.7% to 4.5%[71] - Research and development expenses grew to RMB 3.9 billion in Q2 2021, accounting for 20.4% of total revenue[69] - R&D expenses increased by 198.1% from RMB 1.3 billion in Q2 2020 to RMB 3.9 billion in Q2 2021, accounting for 20.4% of total revenue[73] E-commerce Development - The contribution rate of Kuaishou's closed-loop e-commerce model increased from 66.4% in 2020 to 90.7% in Q2 2021, indicating a significant enhancement in e-commerce infrastructure and tools for merchants[46] - The average daily active user penetration rate for e-commerce on the Kuaishou app increased, alongside a growth in the average order value for e-commerce transactions in Q2 2021[47] - The e-commerce transaction value for emerging categories such as men's clothing, home appliances, and household goods saw rapid growth in Q2 2021, contributing to an increase in total e-commerce transaction value[47] - The "Trust Card" initiative was launched in Q2 2021, offering consumers guarantees such as no-return refunds and seven-day unconditional returns, aimed at enhancing consumer protection and overall experience[48] Strategic Initiatives - The company aims to enhance user experience and improve monetization capabilities through unique content and ecosystem development[37] - Kuaishou launched the "Magnetic Bull" platform in Q2 2021, enhancing algorithm efficiency and advertising monetization capabilities[42] - The company is committed to leveraging its board's expertise to navigate market challenges and opportunities effectively[158] - The company has been involved in strategic investments and acquisitions to foster collaboration within its ecosystem[152] - The company continues to prioritize strategic investments to drive growth and maintain competitive advantages in the market[152] International Expansion - Kuaishou's overseas market strategy focuses on high-density populations with a strong acceptance of short video culture, targeting South America, Southeast Asia, and the Middle East in H1 2021[50] - As of June 2021, Kuaishou's overseas monthly active users exceeded 180 million, reflecting significant growth and user engagement in international markets[50] - The company became the official sponsor and social media platform for the 2021 Copa America in Brazil, enhancing user engagement and activity in the South American market[50] Corporate Governance - The company has committed to maintaining high standards of corporate governance, which is crucial for its development and shareholder protection[165] - The company has established an audit committee to review and supervise the financial reporting process, risk management, and internal control systems[175] - The board believes that having the same individual serve as both Chairman and CEO enhances unified leadership and effective strategic planning[165] Shareholder Information - As of June 30, 2021, the total issued share capital of the company is 4,158,932,037 shares, consisting of 766,237,001 Class A shares and 3,392,695,036 Class B shares[135] - 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[149] - The total percentage of Class B shares held by major shareholders indicates a strong institutional interest in the company[136]