3 6 Ke·2025-08-25 00:21Core Insights - Kuaishou's Q2 performance was strong, particularly in e-commerce, with GMV growth of nearly 18%, surpassing initial low double-digit guidance and market expectations [4][12][32] - The company has adjusted its annual revenue target for Kling to $125 million (approximately 900 million CNY), reflecting its strong growth potential despite market skepticism [6][12] - Kuaishou's advertising revenue growth was 12% in Q2, but the pace of recovery has slowed due to external factors, including payment issues in Brazil and competition in the food delivery sector [5][38] User Ecosystem - Kuaishou's monthly active users (MAU) reached 715 million in Q2, with a net increase of 3 million users quarter-over-quarter, indicating a stable user base [3][19] - The daily active users (DAU) stood at 409 million, maintaining a user stickiness ratio (DAU/MAU) of 57% [3][21] - User engagement remains high, with an average daily time spent per DAU of 127 minutes, reflecting a slight increase year-over-year [19] E-commerce Performance - E-commerce revenue grew by 20% year-over-year, driven primarily by an increase in the number of paying users and average spending per user [4][32] - The penetration rate of general merchandise e-commerce reached 32%, with a 30% year-over-year increase in daily active merchants during the 618 shopping festival [4][35] - The company expects Q3 e-commerce GMV growth of 15%, indicating a stable outlook despite competitive pressures [17][18] Advertising Revenue - Advertising revenue for Q2 was 19.8 billion CNY, reflecting a 13% year-over-year increase, supported by improved ad conversion efficiency due to AI [5][38] - The overall advertising market remains challenging, with structural changes affecting traditional ad spending, particularly in long-form video content [38][40] - Kuaishou's strategy includes partnerships to enhance advertising effectiveness, particularly in the food delivery sector [5][54] Live Streaming and Profitability - Live streaming revenue grew by 8% in Q2, exceeding market expectations, driven by the signing of more quality streamers and an increase in the number of agencies [6][43] - The core operating profit for Kuaishou reached 4.7 billion CNY, with a profit margin of 13.4%, indicating improved operational efficiency [7][49] - The company has initiated a special dividend of 2 billion HKD, alongside share buybacks, enhancing shareholder returns [8][9] Future Outlook - Kuaishou's management remains cautiously optimistic, with potential for further growth in AI-driven services and e-commerce, despite external challenges [12][13] - The company is focusing on maintaining user engagement and operational efficiency while navigating competitive pressures in the digital landscape [21][54]