KUAISHOU(HK:01024)2023-08-31 08:30Financial Performance - Total revenue for the first half of 2023 reached RMB 52,961 million, a 23.9% increase from RMB 42,762 million in the same period of 2022[8]. - Gross profit for the first half of 2023 was RMB 25,646 million, representing 48.4% of total revenue, compared to 43.4% in the same period of 2022[8]. - Operating profit for the first half of 2023 was RMB 598 million, a significant recovery from an operating loss of RMB 8,702 million in the first half of 2022[8]. - Net profit for the first half of 2023 was RMB 605 million, compared to a net loss of RMB 9,430 million in the same period of 2022[8]. - Adjusted net profit for the first half of 2023 was RMB 2,736 million, recovering from a loss of RMB 5,034 million in the first half of 2022[8]. - Adjusted EBITDA for the first half of 2023 was RMB 6,312 million, a substantial increase from a negative RMB 1,144 million in the same period of 2022[8]. - The company achieved a net profit of approximately RMB 1.5 billion in Q2 2023, demonstrating improved profitability[14]. - The company reported a profit of RMB 1,481 million for the three months ended June 30, 2023, compared to a loss of RMB 3,176 million in the same period last year, marking a significant turnaround[55]. User Engagement and Growth - Average daily active users reached 376 million in Q2 2023, up 8.3% year-over-year[15]. - Average monthly active users reached 673.3 million in Q2 2023, up 14.8% year-over-year[15]. - Daily average user engagement time was 117.2 minutes in Q2 2023, indicating strong user retention[15]. - Monthly active users for the search function surpassed 440 million in Q2 2023, with search frequency increasing by 30% year-over-year[15]. - Monthly active buyers exceeded 110 million in Q2 2023, contributing to the growth in merchandise transaction value, with MAU penetration continuing to rise to high double digits[18]. Revenue Streams - 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[16]. - Live streaming revenue grew by 16.4% year-on-year to approximately RMB 10 billion in Q2 2023, with monthly paying user average revenue contribution showing double-digit year-on-year growth[20]. - The company’s search advertising revenue doubled year-over-year in Q2 2023, reflecting successful monetization strategies[15]. - The total merchandise transaction value in the e-commerce segment grew nearly 39% year-on-year in Q2 2023[17]. Cost and Expenses - Total sales costs rose by 15.8% from RMB 11,925 million in Q2 2022 to RMB 13,810 million in Q2 2023, primarily due to increased revenue sharing costs[32]. - Sales and marketing expenses decreased by 1.4% from RMB 8.8 billion in Q2 2022 to RMB 8.6 billion in Q2 2023, representing 31.1% of total revenue, down from 40.4% in the same period last year[34]. - The company reported total expenses for the six months ended June 30, 2023, amounted to RMB 52,613 million, a slight increase from RMB 51,093 million in the same period of 2022[152]. Research and Development - Research and development expenses for the six months ended June 30, 2023, were RMB 6,075 million, a decrease from RMB 6,805 million in the same period of 2022[120]. - The company continues to focus on artificial intelligence as a key area for future development and innovation[196]. - Research and development expenses increased to $200 million, accounting for 13% of total revenue[199]. Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 13,218 million as of June 30, 2023, up from RMB 12,473 million at the beginning of the period[58]. - The net cash generated from operating activities for the second quarter of 2023 was RMB 6,405 million, driven by a pre-tax profit of RMB 1,400 million[59]. - The company reported a net cash outflow from investing activities of RMB 6,029 million, compared to RMB 11,443 million in the same period of 2022[127]. - The company’s total liabilities decreased to RMB 49,129 million as of June 30, 2023, from RMB 49,469 million as of December 31, 2022[123]. Shareholder Information - The company holds 4,335,623,782 shares outstanding, consisting of 765,886,662 Class A shares and 3,569,737,120 Class B shares[68]. - Mr. Su Hua holds 427,119,182 Class A shares, representing approximately 55.77% of the company's total shares[66]. - The company has a competitive compensation policy to attract and retain qualified personnel[64]. - The company aims to align the interests of option holders with those of shareholders through its employee stock ownership plan[75]. Corporate Governance - The company has adhered to all applicable corporate governance code provisions during the reporting period[98]. - The corporate governance committee has confirmed that the company has taken sufficient measures to manage potential conflicts of interest with different voting rights beneficiaries[113]. - The company has established an audit committee, corporate governance committee, nomination committee, and remuneration committee to ensure compliance with listing rules and corporate governance standards[112]. Future Outlook - The company aims to continue expanding its market presence and investing in new technologies and products to drive future growth[7]. - Future guidance estimates revenue growth of 20-25% for the next fiscal year[199]. - The company plans to launch three new products in Q4 2023, targeting a 10% market share in the new segments[199].