Kuaishou Technology (1024) said its adjusted net profit surged 103 times year-on-year to 4.4 billion yuan (HK$4.74 billion) in the first quarter, beating the market estimates, and that it planned to buy back up to HK$16 billion worth of shares in three years.
Revenue rose 16.6 percent to 29.4 billion yuan, thanks to robust e-commerce business.
The net profit before the adjustment of share-based compensation expenses and net fair value changes on investments swung to 4.1 billion yuan from a loss of 876 million yuan in the same period of 2023.
The short video platform saw average daily active users advance 5.2 percent to 393.8 million, and the average monthly active users also rose 6.6 percent to 697.4 million. The total user time spent increased 8.6 percent year-over-year in the first quarter.
The gross merchandise value of e-commerce grew 28.2 percent year-on-year to 288.1 billion yuan, propping up the other services segment, whose revenue increased by 47.6 percent to 4.2 billion yuan over the last year.
Revenue from online marketing services climbed 27.4 percent to 16.7 billion yuan, while live streaming recorded an 8 percent drop to 8.6 billion yuan.
It announced the new repurchase plan for the following 3 years, considering it could “demonstrate its confidence in its own business.”
Shares rose 2.2 percent to HK$58.15 yesterday, ahead of the announcement.
Meanwhile, software company Kingsoft (3888) saw its net profit rise 47.9 percent yearly to 284 million yuan in the first quarter, attributable to domestic subscription growth in its office software and decreased promotional spending on online games.
Hong Kong United Times丨香港聯合時報丨HKUT 