After the Hong Kong stock market on Tuesday, August 22, Fast Hand Technology (hereinafter referred to as Fast Hand) released its second quarter 2023 results announcement.。Financial data show that fast hand in the second quarter revenue of 277.4.4 billion yuan (RMB, the same below), up 27.9%; gross profit of 139.3.4 billion yuan, up 42.6%; net profit turnaround to 14.8.1 billion yuan, a loss of 31 in the same period last year..7.6 billion yuan。

In the first half of 2023, with the gradual recovery of the advertising market, Kuaishou further improved the liquidity efficiency of online marketing services by enhancing product capabilities and infrastructure to unlock the value of quality traffic.。

By business, its online marketing services Q2 revenue, the core business of Fast Player, increased from 110 in the same period in 2022.06 billion yuan, up 30% year on year.4% to 143.4.7 billion yuan, accounting for 51% of total revenue.7%。The increase was mainly due to the recovery of the company's advertising market and the further strengthening of its product capacity and infrastructure, which contributed to the increase in the number of advertisers and the number of advertisers, especially from fast flashlight merchants.。

Live broadcast business。Fast Player 2023Q2 Live Business Revenue from 85% in the same period in 2022.6.5 billion yuan up 16% year on year.4% to 99.6.8 billion yuan。The increase in revenue was primarily due to the year-over-year increase in the average monthly revenue contribution of paying subscribers, as well as the Company's continued enrichment of content offerings, optimization of the live streaming ecosystem and exploration of user preferences and needs.。

Other Services。Kuaishou 2023Q2 Other Services Revenue from 21 in the same period in 2022.2.4 billion yuan, up 61.4% to 34.2.9 billion yuan。The significant increase in other services revenue was mainly due to the growth of the fast flashlight business and the increase in total e-commerce commodity transactions.。In addition, the increase in the number of active merchants and the number of monthly active paying users of e-commerce also led to the growth of total e-commerce commodity transactions.。

In addition, in terms of user size, in the second quarter of 2023, the average daily active user of fast hands increased by 8.3% up to 3.7.6 billion, with average monthly active users up 14.8% to 6.7.3 billion, and the size of the user community hit a record high.。In the second quarter of 2023, the average daily usage time per daily active user of the Fast Hand app was 117.2 minutes。Thanks to the rapid growth of daily active users, the total number of users of the Kuaishou app continues to grow year-over-year。

Commenting on the performance in the first half and second quarter, Cheng Yixiao, founder and CEO of Kuaishou Technology, said: "We are proud to have achieved another key breakthrough in profitability in the second quarter of 2023, achieving our first group-level net profit since going public, thanks to our continued expansion of a vibrant user and content ecosystem, optimized monetization models and improved operational efficiency.。Looking ahead, we will continue to pursue strategic excellence and sustainability, strengthening infrastructure, algorithms and multiple growth engines to create value for our users, partners and shareholders.。"

        

Accelerating the layout of local life GMV rose about month-on-month in the second quarter.200%

       

In addition to the above-mentioned business, in recent years, Kuaishou has also launched a variety of industrial ecological content, such as fast hiring, idealist, fast dating, local life, etc., to serve users and create value for users, but also to develop more and more flexible business models.。

In particular, the local life service market, data research firm iResearch consulting data show that in 2022 China's total digital economy accounted for more than 40% of GDP, driven by the rapid development of the digital economy, the local life service industry in various fields to maintain steady growth, is expected to be more than 2 in 2025..5 trillion yuan, huge market development potential。

How can a quick hand sit idly by for such a big piece of cake?。It is reported that the fast hand is also further promoting the development of local life business。It is reported that at present, the fast hand has initially completed the opening in Qingdao, Harbin, Shanghai, Shijiazhuang and other cities, not only that, in June this year, the scale of fast hand local life consumption users increased by 498% compared with January, local life payment GMV increased by 848%。

Cheng Yixiao pointed out in the phone call that competition in the local living market is becoming more intense, but competition also represents more possibilities。As a short video content platform with high-quality traffic, Kuaishou will seize the opportunity under the lifting of the industry ceiling and the reshaping of the competitive landscape to seize market share.。The local life business is currently in the early stages of rapid growth, with GMV up about 200% in the second quarter.。

For the local life business, Cheng said with a smile, Kuaishou will accelerate the layout around three aspects: one is to accelerate the expansion of cities and categories, attract more local businesses to settle in, expand the supply of goods。The second is to enrich the type of supply, continue to strengthen the supply of food business, while grasping the general trend of offline tourism recovery, in the core city to create wine and travel explosives, and constantly strengthen the user's mind.。The third is to continuously optimize the trading link, live broadcast on the basis of short videos, increase user participation and interaction through richer content forms, and provide more detailed product and mechanism explanations.。

Finally, Cheng Yixiao said, looking forward to the second half of the year, we will continue to deepen the key cities, continue to enrich the supply, and build a trust ecology of the people.。Optimize the traffic structure on the broad public domain and stable private domain basic disk, and refine the subsidy policy while continuing to increase GMV to achieve more efficient user conversion.。

        

Self-developed language model "Pleasure" has started internal testing

        

Not long ago, Kuaishou disclosed some Kuaishou's progress in big models at the "Photosynthetic Creators Conference."。On this post-performance conference call, some analysts asked questions about it.。Jefferies analyst Thomas (Thomas Chong) asked if management could share the fast hand's strategy in AI？In particular, the progress of fast hands in general large models.。

In this regard, Cheng Yixiao said, at present, Kuaishou self-developed large language model "Kuaiyi" has been opened internal testing, and for the business team to provide a standard API and customized project cooperation program.。Our large model multiple metrics are at the leading level in model testing of the same size in the industry。Of course, we believe that it is more important to continue to do a solid job of the underlying large model, benchmarking the most advanced international model effect.。We will also detail further progress on our generic grand model when the time is right.。

Based on the current accumulation of technology in large models, we have implemented multiple application scenarios.。

First, in terms of search.。We launched an internal test of the "Smart Q & A" product on July 8 this year, an internal test of the "AI Dialogue" on August 8, and an internal test of the "Fast AI Dialogue Function" on August 18 in the Android version of the Fast App.。

This is followed by AIGC (Artificial Intelligence Generated Content)。We built a full-mode large model AIGC solution。Based on the self-developed base model, we can provide users with a variety of technical capabilities, including text generation, image generation, 3D material generation, audio generation, video generation, etc., covering the whole process from inspiration to creative generation, from multi-material provision to intelligent creation.。

In addition, in live e-commerce, "local life," "quick hire" and other scenarios, we also launched a digital human product "fast hand smart broadcast," to support the host to quickly make their own digital twin, the use of digital people to quickly open live broadcast and production of short video.。

Finally, in terms of recommendation algorithms。In the past few years, Kuaishou has accumulated a lot of experience in user behavior sequence modeling, and has developed its own user behavior modeling scheme, which has achieved significant business benefits.。The success of large models in self-developed language modeling has also given us new inspiration.。We believe that user behavior sequences, like large model dialogue language sequence modeling, can help us improve our understanding of short video and live behavior, make better matches on the recommendation algorithm side, and improve the ROI of content recommendations.。

We always believe that short video platforms can fully benefit from the AI technology wave.。We will continue to promote the development and training of large models while allocating human and resource inputs rationally and effectively, and actively explore opportunities for the integration of large models with various business scenarios.。