2023-08-22 08:30Financial Performance - Revenue for the three months ended June 30, 2023, was RMB 27,744 million, representing a 27.9% increase from RMB 21,695 million in the same period of 2022[2] - Gross profit for the same period was RMB 13,934 million, with a gross margin of 50.2%, compared to RMB 9,770 million and a gross margin of 45.0% in the prior year[2] - Adjusted net profit for the three months was RMB 2,694 million, a significant recovery from a loss of RMB 1,312 million in the same period last year[2] - For the six months ended June 30, 2023, revenue was RMB 52,961 million, a 23.9% increase from RMB 42,762 million in the same period of 2022[3] - Adjusted EBITDA for the six months was RMB 6,312 million, a recovery from a loss of RMB 1,144 million in the same period last year[3] - Operating profit for the six months was RMB 598 million, compared to a loss of RMB 8,702 million in the same period last year[3] - In Q2 2023, the company achieved a net profit of approximately RMB 1.5 billion, marking the first quarterly profit since its listing in 2021[8] - The profit before tax for Q2 2023 was RMB 1.4 billion, compared to a loss of RMB 3.1 billion in the same period of 2022[32] - The net profit for Q2 2023 was RMB 1.5 billion, recovering from a loss of RMB 876 million in Q1 2023[52] - Basic earnings per share for Q2 2023 were RMB 0.34, a significant improvement from a loss of RMB 0.75 per share in the same quarter last year[61] User Engagement and Growth - Average daily active users reached 376 million in Q2 2023, up from 347.3 million in Q2 2022, indicating a growth of 8.0%[7] - The average daily active users (DAUs) and monthly active users (MAUs) of the Kuaishou app reached 376 million and 673.3 million, respectively, representing year-on-year growth of 8.3% and 14.8%[9] - The average daily usage time per DAU on the Kuaishou app was 117.2 minutes, contributing to a significant increase in total user engagement[9] - The company reported a significant increase in daily active users, with a total of 500 million users, representing a 20% year-over-year growth[99] E-commerce Performance - Total e-commerce transaction value for the three months was RMB 265,456.4 million, compared to RMB 191,174.1 million in the same period last year, reflecting a growth of 38.9%[7] - The company's e-commerce business saw a nearly 39% year-on-year growth in gross merchandise volume (GMV) in Q2 2023[11] - In Q2 2023, the number of monthly active buyers exceeded 110 million, driving significant growth in gross merchandise volume (GMV) with a high double-digit penetration rate[13] - The average order value and monthly order frequency both achieved year-on-year growth in Q2 2023, attributed to improved supply and user experience[13] - The number of new brands added in Q2 2023 increased by 90% year-on-year, with brand GMV accounting for over 30% of total e-commerce GMV[12] Marketing and Advertising - Online marketing services revenue reached RMB 14.3 billion in Q2 2023, a year-on-year increase of 30.4%, accounting for 51.7% of total revenue[10] - The number of active advertisers on the platform nearly doubled compared to the same period last year, indicating strong demand for advertising services[10] - Brand advertising revenue grew by over 30% year-on-year in Q2 2023, driven by enhanced product capabilities and promotional events[10] Operational Efficiency - Sales and marketing expenses decreased by 1.4% year-over-year to RMB 8.6 billion, with the percentage of total revenue dropping from 40.4% to 31.1%[27] - Research and development expenses slightly decreased by 3.9% year-over-year to RMB 3.2 billion, reflecting reduced employee benefit costs[28] - The company optimized user acquisition strategies, reducing user acquisition and retention costs year-on-year and quarter-on-quarter[9] Future Plans and Investments - The company plans to continue expanding its market presence and investing in new technologies to enhance user engagement and monetization strategies[1] - The company plans to enhance online marketing, e-commerce, and live streaming businesses to attract users and business partners, leveraging its large traffic and deep trust within its ecosystem[17] - The company is investing $50 million in AI technology development to enhance user experience and engagement[100] - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 5%[102] Cash Flow and Financial Position - The total cash and cash equivalents increased to RMB 13.2 billion as of June 30, 2023, up from RMB 12.5 billion as of March 31, 2023[56] - The net cash generated from operating activities for Q2 2023 was RMB 6.4 billion, influenced by a pre-tax profit of RMB 1.4 billion and adjustments for non-cash items[58] - The total available funds as of June 30, 2023, amounted to RMB 50.5 billion, an increase from RMB 44.8 billion as of March 31, 2023[56] Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes as of June 30, 2023[93] - The board emphasized the importance of maintaining strong corporate governance and compliance with regulations[99] Shareholder Returns and Dividends - The company did not declare or pay any dividends for the six months ended June 30, 2023[83] - The company has not declared an interim dividend for the six months ending June 30, 2023[95]