KUAISHOU(01024)2024-05-22 08:30Financial Performance - Kuaishou Technology reported a total revenue of RMB 29.408 billion for the three months ending March 31, 2024, representing a year-on-year increase of 16.6% from RMB 25.217 billion in the same period of 2023[3]. - Gross profit for the same period was RMB 16.120 billion, with a gross margin of 54.8%, compared to RMB 11.712 billion and a gross margin of 46.4% in the previous year, reflecting a 37.6% increase in gross profit[3]. - The company achieved an adjusted net profit of RMB 4.388 billion, a significant increase of 10,347.6% compared to RMB 42 million in the same quarter of 2023[3]. - Operating profit for Q1 2024 was RMB 4 billion with an operating margin of 13.6%, compared to an operating loss of RMB 698 million in Q1 2023[29]. - The company reported a profit of RMB 4.12 billion in Q1 2024, a significant turnaround from a loss of RMB 876 million in Q1 2023[33]. - Basic earnings per share for Q1 2024 were RMB 0.95, compared to a loss per share of RMB 0.20 in the same period last year[58]. - The company reported a total comprehensive income of RMB 4,150 million for Q1 2024, compared to a loss of RMB 1,146 million in Q1 2023[59]. User Engagement - Average daily active users reached 393.8 million, up 5.2% year-on-year, while average monthly active users increased to 697.4 million, a rise of 6.6%[6]. - The average revenue per daily active user was RMB 42.3, compared to RMB 34.9 in the same quarter of 2023, indicating improved monetization[6]. - Daily active users for short video e-commerce grew nearly 100% year-over-year in Q1 2024, with significant increases in supply richness[13]. - Monthly active users reached 200 million, showing a growth of 10% year-over-year[83]. - Daily active users reached a total of 100 million, reflecting a year-over-year increase of 15%[82]. E-commerce Performance - Total e-commerce transaction value on the platform was RMB 288.072 billion, up from RMB 224.767 billion in the previous year[6]. - E-commerce GMV rose by 28.2% year-over-year to RMB 288.1 billion in Q1 2024, with monthly active buyers increasing by 22.4% to 126 million[12]. - Brand product GMV during the Spring Festival increased by over 70% compared to the previous year, with short video GMV growing over 110% year-over-year[13]. - Gross Merchandise Volume (GMV) for the quarter was reported at RMB 50 billion, representing a 20% increase compared to the previous quarter[82]. Marketing and Advertising - In Q1 2024, online marketing services revenue grew by 27.4% year-over-year to RMB 16.7 billion, accounting for 56.6% of total revenue[10]. - Active marketing customers increased by nearly 90% year-over-year in Q1 2024, driven by the application of intelligent marketing solutions[10]. - The search marketing service revenue grew by over 50% year-on-year in the first quarter of 2024, driven by optimizations in search functionality using large language model technology[9]. - The return on investment (ROI) for marketing campaigns improved to 150%, indicating effective spending strategies[83]. Operational Efficiency - The company launched a new traffic recommendation mechanism to enhance user experience and monetization efficiency[7]. - Kuaishou Technology is advancing the development of its self-researched large language model to enhance various business scenarios and improve operational efficiency[7]. - Sales and marketing expenses rose by 7.6% to RMB 9.4 billion in Q1 2024, while the percentage of total revenue decreased from 34.6% to 31.9%[25]. - Administrative expenses decreased by 49.7% to RMB 462 million in Q1 2024, primarily due to reduced employee benefits expenses[26]. International Expansion - In Q1 2024, the company's overseas business revenue reached RMB 991 million, a year-on-year increase of 193.2%[15]. - The average daily active users in key overseas markets grew steadily, with Brazil's average daily active users increasing by 13% year-on-year, and each user spending over 75 minutes daily[15]. Future Outlook - The company plans to invest approximately RMB 10 billion in resources to support quality agricultural product vendors as part of its rural revitalization initiative[16]. - Future guidance estimates revenue growth of 18% for the next quarter, projecting total revenue of RMB 12 billion[82]. - New product launches are expected to contribute an additional RMB 5 billion in revenue over the next two quarters[82]. - The company is exploring potential acquisitions to strengthen its market position, with a budget of up to RMB 3 billion allocated for this purpose[82]. Corporate Governance - The company has complied with all applicable corporate governance code provisions except for the separation of the roles of Chairman and CEO, which are held by the same individual since October 29, 2023[77]. - The company is committed to maintaining high standards of corporate governance, which is crucial for its development and shareholder protection[76]. - The company will continue to enhance its corporate governance practices to align with legal and professional standards[77]. Cash Flow and Investments - Cash and cash equivalents decreased to RMB 11.0 billion as of March 31, 2024, from RMB 12.9 billion as of December 31, 2023[53]. - Net cash generated from operating activities was RMB 5.8 billion in Q1 2024, with income tax paid amounting to RMB 217 million[55]. - The net cash used in investing activities for Q1 2024 was RMB 4.9 billion, primarily due to financial asset investments of RMB 6.5 billion and property, plant, and equipment purchases of RMB 1.4 billion[56]. - The net cash used in financing activities for Q1 2024 was RMB 2.8 billion, mainly from share repurchases of RMB 1.2 billion and settlement of notes payable of RMB 895 million[57].