Beijing Kwai Technology Co., Ltd. (hereinafter referred to as "Kwai（Chinese：快手）") that it is expected that the Net Profit in the first half of this year will not be less than CNY 560 million（USD 87.5 million）, and the net loss in the same period last year will be about CNY 9.43 billion, announced on the evening of July 31 2023.The reasons for the turnaround in the announcement are user growth and ecosystem prosperity, strong monetization strategy, and continuous improvement in Operational Efficiency.
Kwai, founded in 2015 and located in Beijing, is an enterprise mainly engaged in technology promotion and application services. In the first quarter of this year, Kwai announced an adjusted first profit (CNY 42 million), even with equity stake incentives and investment gains and losses, the operating loss in the quarter fell to 698 million yuan, and the loss rate narrowed to 2.77%.
EqualOcean checked the latest Data Discovery released by CNNIC. From 2018 to 2022, the scale of short video users in my country will continue to grow. In the first half of 2022, the user scale of short videos has grown significantly, CNY 28.05 million to CNY 962 million compared with December 2021, a growth rate of 3.0%, driving the usage rate of online videos to 94.6%. With the further growth of the user scale, the integration of short videos with industries such as news and e-commerce has accelerated, the capabilities of information release and Monetize Content have gradually increased, and the market scale has further expanded.
Kwai's road to the sea was not smooth, and its good results in India, Russia and South East Asia could not be maintained, but fortunately Kwai entered the blue ocean market of Brazil first, and achieved 7 million Daily Active Users in November 2019. results. According to 36Kr overseas reports , Kwai Overseas Edition currently has 12 million Daily Active Users, surpassing 200 million in the global Daily Active Users.
As a mainstream Internet application, the market competition landscape of the short video industry is relatively stable. From the perspective of active users, Tik Tok（Chinese：抖音） and Kwai are firmly in the first echelon of the industry; ByteDance's Watermelon Video , Hotsoon , Baidu's Haokan Video , and Tencent's wesee are in the second echelon.
Kwai did not specify in the announcement whether the adjusted Net Profit was based on earnings under International Financial Reporting Standards.