Core Viewpoint - Kuaishou has made a strategic organizational adjustment focusing on its core commercial system, which includes advertising, e-commerce, and local services, indicating a shift towards more efficient operations and resource allocation [1][10][57]. Group 1: Organizational Changes - Kuaishou's recent adjustment involves the reorganization of its local services department, which has been renamed and integrated into the commercial system, indicating a consolidation of power under Wang Jianwei [5][11][30]. - The departure of Xiaogu from the local services department and his transition to a business consultant role reflects a significant shift in leadership and strategy within Kuaishou [5][12][40]. - The adjustment is seen as a move to reduce internal conflicts and enhance operational efficiency by centralizing decision-making authority [13][15]. Group 2: Strategic Alignment - The adjustment aligns with recent changes in Douyin's commercialization strategy, suggesting that Kuaishou is following a similar path to enhance its competitive positioning [3][4]. - Kuaishou's focus is shifting from expanding user base and advertising inventory to improving efficiency and maximizing the return on investment (ROI) from existing resources [24][26][31]. - The integration of local services into the commercial system indicates a reduced emphasis on this segment as a standalone growth driver, reflecting a more cautious approach to resource allocation [30][38]. Group 3: Advertising and Revenue Model - The role of advertising within Kuaishou has transitioned from being a primary growth engine to a supportive function within the ecosystem, emphasizing stability over aggressive growth [42][56]. - The company aims to optimize advertising efficiency rather than merely increasing inventory, focusing on enhancing the value of each advertisement displayed [53][55]. - Kuaishou's advertising revenue growth is now driven by improved monetization efficiency rather than user growth, as indicated by stable daily active users (DAU) and average usage time [47][48][50].