KUAISHOU(HK:01024)2022-11-22 08:59Financial Performance - Kuaishou Technology reported a revenue of RMB 23,128,413 thousand for the three months ended September 30, 2022, representing a 12.9% year-over-year increase from RMB 20,492,977 thousand[1]. - The company achieved a gross profit of RMB 10,703,003 thousand, which is 46.3% of total revenue, compared to 41.5% in the same period last year, reflecting a 25.8% increase[1]. - Operating loss for the quarter was RMB (2,612,192) thousand, a significant improvement from RMB (7,403,590) thousand in the previous year, marking a 64.7% reduction[1]. - The company reported a net loss of RMB (12,142,346) thousand for the nine months, a significant improvement from RMB (71,874,358) thousand in the same period last year, reflecting an 83.1% reduction[2]. - The company reported a net loss of RMB 2,712,401 thousand for the three months ended September 30, 2022, compared to a net loss of RMB 7,086,896 thousand for the same period in 2021, representing a 61.7% improvement[67]. - For the nine months ended September 30, 2022, the net loss was RMB 12,142,346 thousand, significantly reduced from RMB 71,874,358 thousand in the previous year, indicating an 83.1% decrease[67]. User Engagement - Average daily active users reached 363.4 million, up 13.4% year-over-year, while average monthly active users increased to 626.0 million[7]. - The average daily active user engagement time increased to 129.3 minutes, up from 119.1 minutes year-over-year[7]. - The number of active paid users in the live streaming segment grew by 29.3% year-on-year to 59.6 million, with a continuous increase in the monthly payment rate[12]. - The number of mutual followers on the Kuaishou app reached 23.5 billion by the end of September 2022, a significant year-on-year increase of 63.1%[9]. - The average daily usage time per active user rose by 8.6% year-on-year to 129.3 minutes, indicating high user engagement and community activity[9]. Revenue Streams - Online marketing services revenue reached RMB 11.6 billion in Q3 2022, a year-on-year increase of 6.2%, despite external pressures on the advertising industry[11]. - The live streaming business revenue grew by 15.8% year-on-year to RMB 8.9 billion, supported by enhanced operational strategies and user engagement[12]. - E-commerce gross merchandise volume (GMV) increased by 26.6% year-on-year to RMB 222.5 billion, with nearly 80% year-on-year growth in the number of new merchants[14]. - The company’s revenue from live streaming services for the three months ended September 30, 2022, was RMB 8,946,690 thousand, an increase from RMB 7,724,141 thousand in the same period of 2021, representing a growth of approximately 15.8%[76]. Cost Management - Total sales costs rose by 3.7% from RMB 11,984,377 in Q3 2021 to RMB 12,425,410 in Q3 2022, primarily due to increased revenue sharing costs[24]. - Selling and marketing expenses decreased by 17.1% from RMB 11,016,923 in Q3 2021 to RMB 9,130,341 in Q3 2022, reducing as a percentage of total revenue from 53.8% to 39.5%[26]. - R&D expenses decreased by 16.2% from RMB 4,217,699 in Q3 2021 to RMB 3,533,090 in Q3 2022, mainly due to reduced employee benefits[28]. Cash Flow and Investments - Operating cash flow for Q3 2022 was RMB 2,710,193 thousand, primarily due to adjustments for non-cash items and changes in working capital[63]. - The company incurred a net cash outflow from investing activities of RMB 1,561,638 thousand in Q3 2022, mainly due to investments in financial assets and purchases of property and equipment[64]. - The company reported a net cash outflow from financing activities for Q3 2022 of RMB 889,880 thousand, primarily due to lease principal and interest payments[65]. Future Outlook - The company plans to invest over 100 million in traffic resources over the next three years to support rural revitalization initiatives, aiming to discover and support over 1,000 rural leaders[17]. - Future guidance indicates an expected revenue growth of 30% for the next fiscal year, driven by increased user acquisition and engagement strategies[96]. - The company is investing in new technology development, with a budget allocation of RMB 1 billion for R&D in the upcoming year[95]. Corporate Governance - The company has complied with all applicable code provisions of the corporate governance code as of September 30, 2022[85]. - The audit committee reviewed the unaudited interim financial information for the three and nine months ended September 30, 2022, with no disagreements on accounting treatment between the board and the audit committee[86]. - The company emphasizes the importance of high standards of corporate governance for its development and shareholder protection[85].