2024-03-20 08:30Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 113,470 million, representing a 20.5% increase from RMB 94,183 million in 2022[2] - Gross profit for the same period was RMB 57,391 million, with a gross margin of 50.6%, up from RMB 42,131 million and a margin of 44.7% in 2022, reflecting a 36.2% year-over-year increase[2] - Adjusted EBITDA for the year reached RMB 17,424 million, a significant increase of 860.0% compared to RMB 1,815 million in 2022[2] - The company reported a net profit of RMB 6,399 million for the year, a turnaround from a net loss of RMB 13,689 million in 2022[2] - Kuaishou's total revenue for 2023 was RMB 113.5 billion, an increase of 20.5% year-on-year, marking a transition to a fully profitable era with adjusted net profit exceeding RMB 10.3 billion[9] - Operating profit for 2023 was RMB 6.431 billion, a significant recovery from an operating loss of RMB 12.558 billion in 2022, reflecting an operating margin of 5.7%[32] - The company recorded a profit of RMB 6.4 billion in 2023, compared to a loss of RMB 13.7 billion in 2022[37] - The company reported a basic earnings per share of RMB 1.48 for the year ended December 31, 2023, compared to a loss per share of RMB 3.22 in 2022[79] User Engagement - Average daily active users (DAUs) increased to 379.9 million in 2023 from 355.7 million in 2022, while average monthly active users (MAUs) rose to 678.2 million from 612.7 million[7] - In Q4 2023, the average monthly active users of the Kuaishou app reached a record high of 700 million, representing a year-on-year growth of 9.4%[10] - Daily active users of Kuaishou's short drama content reached 94 million in Q4 2023, a year-on-year increase of over 50%[10] - The average daily usage time per active user reached 124.5 minutes in Q4 2023[10] Revenue Streams - Online marketing services revenue grew by 23.0% to RMB 60.304 billion in 2023, accounting for 53.1% of total revenue[24] - Live streaming revenue increased by 10.4% to RMB 39.054 billion in 2023, representing 34.4% of total revenue[25] - Other services revenue surged by 44.7% to RMB 14.112 billion in 2023, driven by growth in e-commerce transactions[25] - Revenue from search marketing services in Q4 2023 nearly doubled year-on-year, driven by improvements in user search experience and algorithm optimization[10] - Online marketing services revenue increased by 20.6% to RMB 18.2 billion in Q4 2023, accounting for 55.9% of total revenue[40] E-commerce Growth - Total e-commerce transaction value on the platform reached RMB 1,184,370.8 million, compared to RMB 901,156.6 million in 2022, indicating strong growth in e-commerce activities[7] - E-commerce gross merchandise volume (GMV) in Q4 2023 grew by 29.3% year-on-year, reaching RMB 403.9 billion, with the average number of monthly paying users surpassing 130 million[13] - The number of e-commerce merchants increased by over 50% year-on-year in 2023, with marketing clients growing by over 100%[9] - The total transaction value of short video e-commerce grew over 100% year-over-year in Q4 2023, driven by rich short video supply and continuous improvement in content quality[14] Cost Management - Sales and marketing expenses decreased by 1.7% to RMB 36.496 billion, reducing its share of total revenue from 39.4% in 2022 to 32.2% in 2023[29] - Employee benefits expenses decreased to RMB 18,334 million from RMB 20,260 million, reflecting a 9.5% reduction[98] - R&D expenses decreased by 4.4% to RMB 3.3 billion in Q4 2023, reflecting reduced employee benefits costs[47] Cash Flow and Investments - Net cash generated from operating activities for the year was RMB 20.8 billion, primarily due to a pre-tax profit of RMB 6.9 billion[76] - For the year ended December 31, 2023, the net cash used in investing activities was RMB 19.9 billion, primarily due to net investments in financial assets measured at fair value of RMB 13.2 billion, purchases of property, equipment, and intangible assets of RMB 4.9 billion, and net investments in time deposits with initial terms over three months of RMB 2.4 billion[77] - The net cash used in financing activities for the year ended December 31, 2023, was RMB 1.4 billion, mainly due to lease principal and interest payments of RMB 3.5 billion, share repurchases of RMB 1.3 billion, and net proceeds from note arrangements of RMB 3.2 billion[78] Corporate Governance - The company emphasizes high standards of corporate governance and has adopted relevant codes as part of its governance practices[122] - The board includes both executive and independent non-executive directors, ensuring a diverse governance structure[131] - The company has prepared its audited consolidated financial statements for the year ending December 31, 2023, in accordance with International Financial Reporting Standards[126] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1] - The company expects continued growth in revenue and profitability driven by enhanced operational strategies and product capabilities[23] - The company plans to continue expanding its online marketing services and exploring new technologies to enhance user engagement[96]