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Kuaishou Technology

快手科技

(A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability)

(HKD Counter Stock Code: 01024 / RMB Counter Stock Code: 81024)

ANNOUNCEMENT OF THE RESULTS FOR THE YEAR ENDED DECEMBER 31, 2024

The Board of Directors of Kuaishou Technology (快手科技) is pleased to announce the audited consolidated results of the Company for the year ended December 31, 2024. The consolidated financial statements for the year ended December 31, 2024 have been audited by PricewaterhouseCoopers, the independent auditor of the Company (the "Auditor"), in accordance with International Standards on Auditing. The results have been reviewed by the Audit Committee.

KEY HIGHLIGHTS

Financial Summary

	Year Ended December 31,
	2024		2023		Year-over-year change
	Amount	As a percentage of revenues	Amount	As a percentage of revenues
		(RMB millions, except for percentages)
Revenues	126,898	100.0	113,470	100.0	11.8%
Gross profit	69,292	54.6	57,391	50.6	20.7%
Operating profit	15,287	12.0	6,431	5.7	137.7%
Profit for the year	15,344	12.1	6,399	5.6	139.8%
Non-IFRS Accounting Standards Measures:
Adjusted net profit(1) (unaudited)	17,716	14.0	10,271	9.1	72.5%
Adjusted EBITDA(2) (unaudited)	24,770	19.5	17,424	15.4	42.2%

Unaudited
Three Months Ended December 31,

	2024		2023		Year-over-year change
	Amount	As a percentage of revenues	Amount	As a percentage of revenues
	(RMB millions, except for percentages)
Revenues	35,384	100.0	32,561	100.0	8.7%
Gross profit	19,123	54.0	17,292	53.1	10.6%
Operating profit	4,268	12.1	3,622	11.1	17.8%
Profit for the period	3,974	11.2	3,612	11.1	10.0%
Non-IFRS Accounting Standards Measures:
Adjusted net profit(1)	4,701	13.3	4,362	13.4	7.8%
Adjusted EBITDA(2)	6,869	19.4	6,132	18.8	12.0%

Notes:
(1) We define “adjusted net profit” as profit for the year or period adjusted by share-based compensation expenses and net fair value changes on investments.
(2) We define “adjusted EBITDA” as adjusted net profit for the year or period adjusted by income tax expenses/(benefits), depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, and finance income, net.

Financial Information by Segment

	Year Ended December 31, 2024
	Domestic	Overseas	Unallocated items(1)	Total
	(RMB millions)
Revenues	122,202	4,696	—	126,898
Operating profit/(loss)	16,355	(934)	(134)	15,287
	Year Ended December 31, 2023
	Domestic	Overseas	Unallocated items(1)	Total
	(RMB millions)
Revenues	111,186	2,284	—	113,470
Operating profit/(loss)	11,402	(2,789)	(2,182)	6,431

	Year-over-year change
	Domestic	Overseas	Unallocated items(1)	Total
	(Percentages %)
Revenues	9.9	105.6	—	11.8
Operating profit/(loss)	43.4	(66.5)	(93.9)	137.7
	Unaudited Three Months Ended December 31, 2024
	Domestic	Overseas	Unallocated items(1)	Total
	(RMB millions)
Revenues	34,089	1,295	—	35,384
Operating profit/(loss)	4,361	(236)	143	4,268
	Unaudited Three Months Ended December 31, 2023
	Domestic	Overseas	Unallocated items(1)	Total
	(RMB millions)
Revenues	31,714	847	—	32,561
Operating profit/(loss)	4,250	(551)	(77)	3,622
	Year-over-year change
	Domestic	Overseas	Unallocated items(1)	Total
	(Percentages %)
Revenues	7.5	52.9	—	8.7
Operating profit/(loss)	2.6	(57.2)	N/A	17.8
Note:

Operating Metrics

Unless otherwise specified, the following table sets forth certain of our key operating data on Kuaishou App for the periods indicated:

	Year Ended December 31,
	2024	2023
Average DAUs (in millions)	399.4	379.9
Average MAUs (in millions)	709.7	678.2
Average online marketing services revenue per DAU (in RMB)	181.3	158.7
Total e-commerce GMV(1) (RMB in millions)	1,389,582.3	1,184,370.8
	Three Months Ended December 31,
	2024	2023
Average DAUs (in millions)	401.0	382.5
Average MAUs (in millions)	735.6	700.4
Average online marketing services revenue per DAU (in RMB)	51.4	47.6
Total e-commerce GMV(1) (RMB in millions)	462,093.9	403,908.2

Note:
(1) Placed on or directed to our partners through our platform.

BUSINESS REVIEW AND OUTLOOK

Business Review

Over the past year, guided by our technology-driven, user-centric business philosophy, we harnessed advanced artificial intelligence (AI) technology to empower our content and commercial ecosystem, creating greater value for both our users and business partners and achieving a robust financial performance. In the fourth quarter of 2024, our average DAUs remained above 400 million, and our total revenue grew by 8.7% year-over-year to RMB35.4 billion, and for the full year of 2024, it increased by 11.8% year-over-year to RMB126.9 billion. In the fourth quarter of 2024, our adjusted net profit reached RMB4.7 billion, and for the full year of 2024, it increased by 72.5% year-over-year to RMB17.7 billion, with an adjusted net profit margin of 14.0%, reflecting a steady improvement in our profitability.

As we head into the year of 2025, it has become increasingly evident that the ongoing advancements and breakthroughs in large models and application capabilities are pushing the boundaries of video content creation, user experience and broader commercial ecosystem. As a leading content community and social platform in China and globally, Kuaishou is at the forefront of this critical intersection of AI technology and large video models, driving transformative changes across the industry landscape. We firmly believe that AI is much more than an efficiency tool; it is the core engine that will drive our platform to create more value for commercial ecosystem while achieving traffic growth. We are proactively engaging and advancing the industry's profound transition.

In the fourth quarter of 2024, we unveiled Kling (可靈) 1.6 model, an upgrade to our large video generation model. This latest version maintained our world-leading technological advantages while featuring enhanced responsiveness to text descriptions, such as motion, temporal actions and camera movements. It also notably improved visual quality in terms of style consistency, color accuracy, lighting dynamics and detailed rendering. In addition, we officially launched the standalone Kling AI (可靈AI) App in the fourth quarter of 2024, providing global users with multiple access points, including web page and standalone App. With the continuous improvements in its functionality, Kling AI's (可靈AI) user base has grown at an accelerated pace. Kling AI's (可靈AI) commercialization has also steadily gained momentum, reaching an important milestone of more than RMB100 million in cumulative revenue as of February 2025 since its monetization.

In the fourth quarter of 2024, we continued to deepen the application of AI large models in our content and commercial ecosystems. Leveraging on large models' capacity to comprehend short video, live streaming, comments and user interests, we improved our content recommendation accuracy, increasing user time spent and user engagement. In terms of commercialization scenarios, AIGC's capabilities significantly boosted the efficiency of clients' marketing materials production. In the fourth quarter of 2024, average daily spending on AIGC marketing materials exceeded RMB30 million.

User and content ecosystem

In the fourth quarter of 2024, the average DAUs on the Kuaishou App reached 401 million and MAUs reached 736 million, increasing by 4.8% and 5.0% year-over-year, respectively. The average daily time spent per DAU on the Kuaishou App was 125.6 minutes, and the total user time spent increased by 5.8% year-over-year. Through our increasingly refined user growth strategy, we have continuously improved new users' engagement, interaction and retention rates. By optimizing product features, iterating the traffic mechanism and improving content quality, we have enhanced user retention.

In terms of feature optimization, we focused on improving end-to-end viewing experience for users, optimizing the resolution and ensuring smooth streaming. We have continuously enhanced the video sharing and communication experience while introducing various innovative features in private messaging, which drove daily average private messaging penetration rate up by nearly 5 percentage points year-over-year in the fourth quarter of 2024 among users with mutual followers. In comments scenarios, we refined the comment ranking strategy, resulting in a year-over-year increase of over 40.0% in user time spent on comment features in the fourth quarter of 2024.

Content is the cornerstone of our thriving community. Understanding the reasons users open our App is central to our content strategy. Through targeted traffic distribution, we ensure that stand-out and high-quality contents featuring distinctive Kuaishou characteristics gain higher exposure. In the fourth quarter of 2024, content creator Da Bing's live streaming room emerged as a welcoming space for Kuaishou users to share their stories and interact with one another, strengthening heartfelt bonds between users and the content creator. In the pan-knowledge vertical, we partnered with Anwan Qin Opera Theater Troupe (安萬秦腔劇團) for offline tours and online live streaming, sparking widespread user engagement and discussions. The Troupe's New Year's Eve performance in Xi'an achieved over 140 million cumulative views across live streaming and short videos, fostering a connection between regional Kuaishou users both online and offline while promoting China's traditional art and intangible cultural heritage.

Online marketing services

In the fourth quarter of 2024, revenue from online marketing services grew by 13.3% year-over-year to RMB20.6 billion. For the full year of 2024, online marketing services revenue grew by over 20.0% year-over-year. In the fourth quarter of 2024, the clients' biding price (eCPM) for marketing services achieved a high single-digit year-on-year increase, serving as the primary driver of revenue growth in online marketing services. We captured incremental opportunities, such as commercialized short plays in online marketing services and improved the conversion rates of marketing material placement by leveraging AI large model technology to enhance the predictive capabilities of our marketing service recommendation models. In addition, our smart marketing solutions, including Universal Auto X (UAX, 全自動投放解決方案) placement solutions and omni-platform marketing solutions, have significantly enhanced the clients' marketing effectiveness.

In the fourth quarter of 2024, external marketing services continued to be primary driver of our online marketing services. In particular, the content-consumption industry, which included short plays, mini-games and novels, experienced faster growth. Notably, marketing spending from commercialized short plays surged more than three-fold year-over-year in the fourth quarter of 2024. On the product front, we upgraded the UAX placement solutions, transitioning from rule-based to model-based decision-making. As a result, UAX-based marketing spending accounted for over 55.0% of total external marketing spending in the fourth quarter of 2024.

In the fourth quarter of 2024, closed-loop marketing services continued to support e-commerce merchants in leveraging high-quality traffic on Kuaishou and boost operating efficiency. In the fourth quarter of 2024, total marketing spending by merchants using our omni-platform marketing solutions and smart hosting products contributed approximately 55.0% of total closed-loop marketing spending. Through focusing on enhancing small and medium-sized merchants' willingness for marketing placement on our platform and improving advertising performance, we drove a year-over-year increase of over 30.0% in these merchants' marketing spending in the fourth quarter of 2024.

E-commerce

By leveraging our content-based scenarios and pan-shelf-based e-commerce advantages, our e-commerce GMV grew by 14.4% year-over-year to RMB462.1 billion in the fourth quarter of 2024. The more abundant e-commerce offerings and enhanced synergy efficiency of our omni-platform traffic have enabled us to better meet the needs of our users. In the fourth quarter of 2024, the number of e-commerce monthly active paying users increased by 10.0% year-over-year to 143 million, with MAU penetration rate achieving 19.5%. We also launched targeted programs to acquire new users from southern China markets and enhanced their activity while harnessing key promotional events and refining coupon and subsidy strategies. During the Double 11 Sales Promotion in 2024, we gained a net total of over 7 million new users and made persistent efforts to fortify our e-commerce users' loyalty for repeat purchases. Going forward, we will continue to uphold our user-centric strategy, and partner with merchants and KOLs to optimize consumers' shopping experience.

In the fourth quarter of 2024, merchants in Kuaishou's e-commerce ecosystem continued to thrive, with the number of average monthly active merchants increased by more than 25.0% year-over-year. GMV from small and medium-sized merchants largely grew year-over-year in the fourth quarter of 2024, mainly driven by our three core strategies, namely improving policies for new merchant recruitment, optimizing policies for existing merchants and leveraging diversified scenarios. To encourage new merchants to use Kuaishou, we launched the Golden Bounty Initiative (斗金計劃), Set Sail Initiative (啟航計劃) and provided cold-start traffic support through targeted scenarios. These programs help early-stage merchants increase traffic, reduce operating costs and align incentives to their growth cycles and key transition points. We also worked with ecosystem partners to accelerate new merchants' growth, providing small and medium-sized merchants with refined methodologies for content-based e-commerce and establishing growth paths for merchants in KOL live streaming, short video and the shopping mall.

In terms of the KOL business, we strengthened the platform's merchandise management capabilities through our Blockbusters Initiative (爆品計劃), and broadened KOL's product offerings during sales promotion. Meanwhile, we further energized our content-based scenarios through diverse activities and marketing tools including KOL competition (達人PK賽) to motivate streamers. During the Double 11 Sales Promotion in 2024, more than 39 million users joined Group Buy for KOL followers (達人粉絲購物團), with over 2,500 live-streaming rooms achieving GMV exceeding RMB1 million.

In terms of diversified scenarios, in the fourth quarter of 2024, short video e-commerce GMV grew by more than 50.0% year-over-year. As important components to our content-based scenarios, both short video e-commerce and synergy between short video and live streaming e-commerce have been instrumental in helping merchants and KOLs expand their businesses. Meanwhile, in the fourth quarter of 2024, pan-shelf-based e-commerce GMV accounted for 30.0% of our total e-commerce GMV. Its growth consistently outperformed our overall GMV growth, driven by strong supply and demand. In the fourth quarter of 2024, average daily active merchants and average daily paying users in our shopping mall grew by over 50.0% and nearly 40.0% year-over-year, respectively. As our pan-shelf-based e-commerce increasingly complements our content-based scenarios, we have enhanced merchants' operational efficiency by strengthening the platform's control over blockbuster products.

Live streaming

In the fourth quarter of 2024, revenue from our live-streaming business was RMB9.8 billion, with the year-over-year decline continuing to narrow compared to the previous quarter. We are adamant about building a healthy, sustainable live-streaming ecosystem for the long term and achieving diversified growth propelled by high-quality content. By the end of the fourth quarter of 2024, the number of our partner talent agencies grew by more than 30.0%, and the number of talent agency-managed streamers increased by over 60.0%, both on a year-over-year basis. On the supply side, leading categories continued to create value, such as multi-host live streaming, group live streaming and Grand Stage (直播大舞台). In addition, by expanding user engagement on Grand Stage (直播大舞台) into rural towns, we accelerated our ability to discover and support local small and medium-sized streamers. In the fourth quarter of 2024, we explored comprehensive collaborations with key games including Game for Peace (和平精英) and CrossFire (穿越火線) in areas such as streamer growth, content co-creation and event promotion while further deepening our expertise in fighting games and other niche verticals. As a prime example of our "live streaming+" services empowering traditional industries, in the fourth quarter of 2024, the average daily number of users submitting resumes on Kwai Hire (快聘) increased by over 100% year-over-year, and the number of matches grew by over 270% year-over-year. For Ideal Housing (理想家), daily lead generation surged by over 260% compared with the same period last year.

Overseas

Regarding our overseas business, deeply rooted in Brazil, we continued investing in local content operations and brand marketing. On the traffic front, we achieved breakthroughs in innovative user acquisition channels in the fourth quarter of 2024, increasing DAUs by 9.3% year-over-year in Brazil. Benefiting from our optimized traffic distribution mechanism and cooperation with top-tier local IP resources, we have gradually built a rich, diversified content ecosystem with steadily growing user activity. In the fourth quarter of 2024, the average daily time spent per DAU in Brazil grew steadily year-over-year and quarter-over-quarter, exceeding 75 minutes.

In the fourth quarter of 2024, our total overseas revenue maintained rapid growth of 52.9% year-over-year. Notably, online marketing revenue increased by 83.5% year-over-year. Moreover, as a result of our effective control over costs and expenses, the operating loss from our overseas business narrowed by 57.2% year-over-year. We have initially validated our e-commerce business model in Brazil, achieving consistent growth in order volume with improved subsidy and operational efficiencies. These early successes have unlocked the potential for healthy, sustainable development potential in the Brazilian market.

Local services

In terms of our local services, GMV for local services was more than doubled year-over-year in the fourth quarter of 2024. We focused on city clusters with strong user base and consistently focused on meeting user needs by further optimizing price comparison capabilities and scenario applications, thereby enhancing a compelling value-for-money consumption experience to drive a 52.4% year-over-year increase in average monthly paying users in the fourth quarter of 2024. We also worked on improving content quality and optimizing user experience, which steadily increased conversion efficiency. In terms of monetization, revenue from local services grew by 2.6 times year-over-year in the fourth quarter of 2024 by further optimizing the infrastructure of our commercialization products. At the same time, we also strengthened our partnerships with more high-quality local operation- and lead-based merchants by leveraging our differentiated traffic resources, empowering merchants to achieve incremental growth on Kuaishou. In pursuing higher ROI for our local services, we further amplified subsidy and operational efficiencies. As a result, in the fourth quarter of 2024, operating loss for local services continued to narrow.

Business Outlook

As the new era of AI technology unfolds, we remain committed to advancing our AI strategy, aimed at becoming a leading AI-driven content platform. We will remain dedicated to our technology-driven, user-centric business philosophy, staying deeply attuned to users' needs, continuously expanding our content and product offerings and fostering our trust-based commercial ecosystem to create long-term value for our users, partners and Shareholders.

MANAGEMENT DISCUSSION AND ANALYSIS

Year ended December 31, 2024 Compared to Year ended December 31, 2023

The following table sets forth the comparative figures in absolute amounts and as percentages of our total revenues for the years ended December 31, 2024 and 2023, respectively:

	Year Ended December 31,
	2024		2023
	RMB	%	RMB	%
	(in millions, except for percentages)
Revenues	126,898	100.0	113,470	100.0
Cost of revenues	(57,606)	(45.4)	(56,079)	(49.4)
Gross profit	69,292	54.6	57,391	50.6
Selling and marketing expenses	(41,105)	(32.4)	(36,496)	(32.2)
Administrative expenses	(2,916)	(2.3)	(3,514)	(3.1)
Research and development expenses	(12,199)	(9.6)	(12,338)	(10.9)
Other income	533	0.4	978	0.9
Other gains, net	1,682	1.3	410	0.4
Operating profit	15,287	12.0	6,431	5.7
Finance income, net	236	0.2	539	0.5
Share of losses of investments accounted for using the equity method	(29)	(0.0)	(81)	(0.1)
Profit before income tax	15,494	12.2	6,889	6.1
Income tax expenses	(150)	(0.1)	(490)	(0.5)
Profit for the year	15,344	12.1	6,399	5.6
Non-IFRS Accounting Standards Measures:
Adjusted net profit (unaudited)	17,716	14.0	10,271	9.1
Adjusted EBITDA (unaudited)	24,770	19.5	17,424	15.4

10 -

Revenues

Our revenues increased by 11.8% to RMB126.9 billion in 2024, from RMB113.5 billion in 2023. The increase was primarily attributable to the growth of our online marketing services and e-commerce business.

The following table sets forth our revenues by type in absolute amounts and as percentages of our total revenues in 2024 and 2023, respectively:

	Year Ended December 31,
	2024		2023
	RMB	%	RMB	%
	(in millions, except for percentages)
Online marketing services	72,419	57.1	60,304	53.1
Live streaming	37,061	29.2	39,054	34.4
Other services	17,418	13.7	14,112	12.5
Total	126,898	100.0	113,470	100.0

Online marketing services

Revenue from our online marketing services increased by 20.1% to RMB72.4 billion in 2024 from RMB60.3 billion in 2023, primarily attributable to the increased consumption from marketing clients, driven by our optimized smart marketing solutions and the application of AI technology.

Live streaming

Revenue from our live streaming business decreased by 5.1% to RMB37.1 billion in 2024 from RMB39.1 billion in 2023, as a result of our continuous efforts in building a healthy and sustainable live streaming ecosystem.

Other services

Revenue from our other services increased by 23.4% to RMB17.4 billion in 2024 from RMB14.1 billion in 2023, primarily attributable to the growth of our e-commerce business, represented by the growth in our e-commerce GMV. The growth in e-commerce GMV was driven by increases in the number of e-commerce monthly active paying users and monthly active merchants as a result of our continuous refined omni-platform operating strategies.

Cost of Revenues

The following table sets forth our cost of revenues in absolute amounts and as percentages of our total revenues in 2024 and 2023, respectively:

	Year Ended December 31,
	2024		2023
	RMB	%	RMB	%
	(in millions, except for percentages)
Revenue sharing costs and related taxes	36,277	28.6	34,957	30.8
Bandwidth expenses and server custody costs(1)	5,761	4.5	5,987	5.3
Depreciation of property and equipment and right-of-use assets, and amortization of intangible assets(1)	6,467	5.1	6,389	5.6
Employee benefit expenses	2,804	2.2	2,823	2.5
Payment processing costs	2,819	2.2	2,569	2.3
Other cost of revenues	3,478	2.8	3,354	2.9
Total	57,606	45.4	56,079	49.4

(1) Server custody costs include the custody fee of internet data centers with a lease term of one year or less which is exempted under IFRS 16 — Leases. Leases of internet data centers with a term of over one year are recorded as right-of-use assets, and recorded as depreciation charge in cost of revenues.

Our cost of revenues increased by 2.7% to RMB57.6 billion in 2024 from RMB56.1 billion in 2023, primarily attributable to increases in revenue sharing costs and related taxes in line with our revenue growth, and payment processing costs.

Gross Profit and Gross Profit Margin

The following table sets forth our gross profit both in absolute amounts and as percentages of our total revenues, or gross profit margin, in 2024 and 2023, respectively:

Note:

	Year Ended December 31,
	2024		2023
	RMB	%	RMB	%
	(in millions, except for percentages)
Gross profit	69,292	54.6	57,391	50.6

As a result of the foregoing, our gross profit increased by 20.7% to RMB69.3 billion in 2024 from RMB57.4 billion in 2023. Our gross profit margin increased to 54.6% in 2024 from 50.6% in 2023.

12 -

Selling and Marketing Expenses

Our selling and marketing expenses increased by 12.6% to RMB41.1 billion in 2024 from RMB36.5 billion in 2023, and increased to 32.4% in 2024 from 32.2% in 2023 as a percentage of our total revenues. The increase was primarily attributable to the increased spending in promotion activities.

Administrative Expenses

Our administrative expenses decreased by 17.0% to RMB2.9 billion in 2024 from RMB3.5 billion in 2023, primarily due to a decrease in employee benefit expenses, including the related share-based compensation expenses.

Research and Development Expenses

Our research and development expenses slightly decreased by 1.1% to RMB12.2 billion in 2024 from RMB12.3 billion in 2023, primarily due to a decrease in employee benefit expenses, including the related share-based compensation expenses.

Other Income

Our other income decreased from RMB978 million in 2023 to RMB533 million in 2024, primarily due to a decrease in value-added tax preferences, as a result of change in tax regulations.

Other Gains, Net

Our other gains, net increased to RMB1.7 billion in 2024 from RMB410 million in 2023, primarily due to the fair value changes of financial assets at fair value through profit or loss.

Operating Profit

As a result of the foregoing, we had an operating profit of RMB15.3 billion and an operating margin of 12.0% in 2024, compared to an operating profit of RMB6.4 billion and an operating margin of 5.7% in 2023.

The following table sets forth our operating profit/(loss) by segment in absolute amounts in 2024 and 2023, respectively:

	Year Ended December 31,
	2024	2023	Year-over-year change
	(RMB millions, except for percentages)
Domestic	16,355	11,402	43.4%
Overseas	(934)	(2,789)	(66.5%)
Unallocated items	(134)	(2,182)	(93.9%)
Total	15,287	6,431	137.7%

Our operating profit from the domestic segment increased to RMB16.4 billion in 2024 from RMB11.4 billion in 2023. The increase was primarily attributable to a 9.9% year-over-year growth in domestic revenues.

Our operating loss from the overseas segment narrowed to RMB934 million in 2024 from RMB2.8 billion in 2023, primarily attributable to rapid growth in overseas revenues.

Finance Income, Net

Our finance income, net decreased to RMB236 million in 2024, from RMB539 million in 2023, primarily attributable to an increase in interest expense from borrowings.

Share of Losses of Investments Accounted for Using the Equity Method

Our share of losses of investments accounted for using the equity method was RMB29 million in 2024, compared to RMB81 million in 2023.

Profit before Income Tax

As a result of the foregoing, we had a profit before income tax of RMB15.5 billion and RMB6.9 billion in 2024 and 2023, respectively.

Income Tax Expenses

Our income tax expenses decreased to RMB150 million in 2024 from RMB490 million in 2023, primarily due to the increase of deferred income tax benefits recognized on tax losses.

Profit for the Year

As a result of the foregoing, we had a profit of RMB15.3 billion and RMB6.4 billion in 2024 and 2023, respectively.

13 -

Fourth Quarter of 2024 Compared to Fourth Quarter of 2023

The following table sets forth the comparative figures in absolute amounts and as percentages of our total revenues for the fourth quarter of 2024 and 2023, respectively:

| | Unaudited
Three Months Ended December 31, | | | |
| --- | --- | --- | --- | --- |
| | 2024 | | 2023 | |
| | RMB | % | RMB | % |
| | (in millions, except for percentages) | | | |
| Revenues | 35,384 | 100.0 | 32,561 | 100.0 |
| Cost of revenues | (16,261) | (46.0) | (15,269) | (46.9) |
| Gross profit | 19,123 | 54.0 | 17,292 | 53.1 |
| Selling and marketing expenses | (11,317) | (32.0) | (10,198) | (31.3) |
| Administrative expenses | (866) | (2.4) | (752) | (2.3) |
| Research and development expenses | (3,451) | (9.8) | (3,296) | (10.1) |
| Other income | 187 | 0.5 | 379 | 1.2 |
| Other gains, net | 592 | 1.8 | 197 | 0.5 |
| Operating profit | 4,268 | 12.1 | 3,622 | 11.1 |
| Finance income, net | 19 | 0.0 | 135 | 0.5 |
| Share of losses of investments accounted for using the equity method | (1) | (0.0) | (23) | (0.1) |
| Profit before income tax | 4,286 | 12.1 | 3,734 | 11.5 |
| Income tax expenses | (312) | (0.9) | (122) | (0.4) |
| Profit for the period | 3,974 | 11.2 | 3,612 | 11.1 |
| Non-IFRS Accounting Standards Measures: | | | | |
| Adjusted net profit | 4,701 | 13.3 | 4,362 | 13.4 |
| Adjusted EBITDA | 6,869 | 19.4 | 6,132 | 18.8 |

14 -

15 -

Revenues

Our revenues increased by 8.7% to RMB35.4 billion for the fourth quarter of 2024, from RMB32.6 billion for the same period of 2023. The increase was primarily attributable to the growth of our online marketing services and e-commerce business.

The following table sets forth our revenues by type in absolute amounts and as percentages of our total revenues for the fourth quarter of 2024 and 2023, respectively:

| | Unaudited
Three Months Ended December 31, | | | |
| --- | --- | --- | --- | --- |
| | 2024 | | 2023 | |
| | RMB | % | RMB | % |
| | (in millions, except for percentages) | | | |
| Online marketing services | 20,620 | 58.3 | 18,203 | 55.9 |
| Live streaming | 9,846 | 27.8 | 10,048 | 30.9 |
| Other services | 4,918 | 13.9 | 4,310 | 13.2 |
| Total | 35,384 | 100.0 | 32,561 | 100.0 |

Online marketing services

Revenue from our online marketing services increased by 13.3% to RMB20.6 billion for the fourth quarter of 2024, from RMB18.2 billion for the same period of 2023, primarily attributable to the increased consumption from marketing clients driven by continuous optimization of smart marketing solutions and the application of AI technology.

Live streaming

Revenue from our live streaming business decreased by 2.0% to RMB9.8 billion for the fourth quarter of 2024, from RMB10.0 billion for the same period of 2023, as a result of our continuous efforts in building a healthy and sustainable live streaming ecosystem.

Other services

Revenue from our other services increased by 14.1% to RMB4.9 billion for the fourth quarter of 2024, from RMB4.3 billion for the same period of 2023, primarily due to the growth of our e-commerce business, represented by the growth in our e-commerce GMV. The growth in e-commerce GMV was driven by increases in the number of e-commerce monthly active paying users and monthly active merchants as a result of our continuous refined omni-platform operating strategies.

Cost of Revenues

The following table sets forth our cost of revenues in absolute amounts and as percentages of our total revenues for the fourth quarter of 2024 and 2023, respectively:

| | Unaudited
Three Months Ended December 31, | | | |
| --- | --- | --- | --- | --- |
| | 2024 | | 2023 | |
| | RMB | % | RMB | % |
| | (in millions, except for percentages) | | | |
| Revenue sharing costs and related taxes | 10,334 | 29.2 | 9,706 | 29.8 |
| Bandwidth expenses and server custody costs(1) | 1,527 | 4.3 | 1,496 | 4.6 |
| Depreciation of property and equipment and right-of-use assets, and amortization of intangible assets(1) | 1,713 | 4.8 | 1,600 | 4.9 |
| Employee benefit expenses | 757 | 2.1 | 764 | 2.3 |
| Payment processing costs | 846 | 2.4 | 800 | 2.5 |
| Other cost of revenues | 1,084 | 3.2 | 903 | 2.8 |
| Total | 16,261 | 46.0 | 15,269 | 46.9 |

Note:
(1) Server custody costs include the custody fee of internet data centers with a lease term of one year or less which is exempted under IFRS 16 — Leases. Leases of internet data centers with a term of over one year are recorded as right-of-use assets, and recorded as depreciation charge in cost of revenues.

Our cost of revenues increased by 6.5% to RMB16.3 billion for the fourth quarter of 2024, from RMB15.3 billion for the same period of 2023, primarily attributable to increases in revenue sharing costs and related taxes in line with our revenue growth, depreciation of property and equipment and right-of-use assets, and amortization of intangible assets.

Gross Profit and Gross Profit Margin

The following table sets forth our gross profit both in absolute amounts and as percentages of our total revenues, or gross profit margin, for the fourth quarter of 2024 and 2023, respectively:

| | Unaudited
Three Months Ended December 31, | | | |
| --- | --- | --- | --- | --- |
| | 2024 | | 2023 | |
| | RMB | % | RMB | % |
| | (in millions, except for percentages) | | | |
| Gross profit | 19,123 | 54.0 | 17,292 | 53.1 |

As a result of the foregoing, our gross profit increased by 10.6% to RMB19.1 billion for the fourth quarter of 2024, from RMB17.3 billion for the same period of 2023. Our gross profit margin increased to 54.0% for the fourth quarter of 2024, from 53.1% for the same period of 2023.

17 -

Selling and Marketing Expenses

Our selling and marketing expenses increased by 11.0% to RMB11.3 billion for the fourth quarter of 2024, from RMB10.2 billion for the same period of 2023, and increased to 32.0% for the fourth quarter of 2024 from 31.3% for the same period of 2023 as a percentage of our total revenues. The increase was primarily attributable to the increased spending in promotion activities.

Administrative Expenses

Our administrative expenses increased by 15.2% to RMB866 million for the fourth quarter of 2024, from RMB752 million for the same period of 2023, primarily due to an increase in employee benefit expenses, including the related share-based compensation expenses.

Research and Development Expenses

Our research and development expenses increased by 4.7% to RMB3.5 billion for the fourth quarter of 2024, from RMB3.3 billion for the same period of 2023, primarily attributable to an increase in employee benefit expenses, including the related share-based compensation expenses.

Other Income

Our other income decreased to RMB187 million for the fourth quarter of 2024, from RMB379 million for the same period of 2023, primarily due to a decrease in value-added tax preferences, as a result of change in tax regulations.

Other Gains, Net

Our other gains, net increased to RMB592 million for the fourth quarter of 2024, from RMB197 million for the same period of 2023, primarily due to the fair value changes of financial assets at fair value through profit or loss.

Operating Profit

As a result of the foregoing, we had an operating profit of RMB4.3 billion and an operating margin of 12.1% for the fourth quarter of 2024, compared to an operating profit of RMB3.6 billion and an operating margin of 11.1% for the same period of 2023.

The following table sets forth our operating profit/(loss) by segment in absolute amounts for the fourth quarter of 2024 and 2023, respectively:

| | Unaudited
Three Months Ended December 31, | | |
| --- | --- | --- | --- |
| | 2024 | 2023 | Year-over-year change |
| | (RMB millions, except for percentages) | | |
| Domestic | 4,361 | 4,250 | 2.6% |
| Overseas | (236) | (551) | (57.2%) |
| Unallocated items | 143 | (77) | N/A |
| Total | 4,268 | 3,622 | 17.8% |

Our operating profit from the domestic segment increased to RMB4.4 billion for the fourth quarter of 2024, from RMB4.3 billion for the same period of 2023, mainly due to a 7.5% year-over-year growth in domestic revenues.

Our operating loss from the overseas segment decreased to RMB236 million for the fourth quarter of 2024, from RMB551 million for the same period of 2023, primarily attributable to a 52.9% year-over-year growth in overseas revenues.

Finance Income, Net

Our finance income, net was RMB19 million for the fourth quarter of 2024, compared to RMB135 million for the same period of 2023. The change was primarily attributable to an increase in interest expense from borrowings.

Share of Losses of Investments Accounted for Using the Equity Method

Our share of losses of investments accounted for using the equity method was RMB1 million for the fourth quarter of 2024, compared to RMB23 million for the same period of 2023.

Profit before Income Tax

As a result of the foregoing, we had a profit before income tax of RMB4.3 billion for the fourth quarter of 2024, compared to a profit before income tax of RMB3.7 billion for the same period of 2023.

Income Tax Expenses

Our income tax expenses increased to RMB312 million for the fourth quarter of 2024, from RMB122 million for the same period of 2023, primarily due to the decrease of deferred income tax benefits recognized on tax losses.

Profit for the Period

As a result of the foregoing, we had a profit of RMB4.0 billion for the fourth quarter of 2024, compared to a profit of RMB3.6 billion for the same period of 2023.

Fourth Quarter of 2024 Compared to Third Quarter of 2024

The following table sets forth the comparative figures in absolute amounts and as percentages of our total revenues for the fourth quarter and the third quarter of 2024, respectively:

| | Unaudited
Three Months Ended | | | |
| --- | --- | --- | --- | --- |
| | December 31, 2024 | | September 30, 2024 | |
| | RMB | % | RMB | % |
| | (in millions, except for percentages) | | | |
| Revenues | 35,384 | 100.0 | 31,131 | 100.0 |
| Cost of revenues | (16,261) | (46.0) | (14,217) | (45.7) |
| Gross profit | 19,123 | 54.0 | 16,914 | 54.3 |
| Selling and marketing expenses | (11,317) | (32.0) | (10,364) | (33.3) |
| Administrative expenses | (866) | (2.4) | (796) | (2.6) |
| Research and development expenses | (3,451) | (9.8) | (3,100) | (10.0) |
| Other income | 187 | 0.5 | 194 | 0.6 |
| Other gains, net | 592 | 1.8 | 271 | 1.0 |
| Operating profit | 4,268 | 12.1 | 3,119 | 10.0 |
| Finance income, net | 19 | 0.0 | 37 | 0.1 |
| Share of losses of investments accounted
for using the equity method | (1) | (0.0) | (6) | (0.0) |
| Profit before income tax | 4,286 | 12.1 | 3,150 | 10.1 |
| Income tax (expenses)/benefits | (312) | (0.9) | 120 | 0.4 |
| Profit for the period | 3,974 | 11.2 | 3,270 | 10.5 |
| Non-IFRS Accounting Standards Measures: | | | | |
| Adjusted net profit | 4,701 | 13.3 | 3,948 | 12.7 |
| Adjusted EBITDA | 6,869 | 19.4 | 5,578 | 17.9 |

19 -

20 -

Revenues

Our revenues increased by 13.7% to RMB35.4 billion for the fourth quarter of 2024, from RMB31.1 billion for the third quarter of 2024, primarily attributable to the growth of our online marketing services, e-commerce business and live streaming business.

The following table sets forth our revenues by type in absolute amounts and as percentages of our total revenues for the fourth quarter and the third quarter of 2024, respectively:

| | Unaudited
Three Months Ended | | | |
| --- | --- | --- | --- | --- |
| | December 31, 2024 | | September 30, 2024 | |
| | RMB | % | RMB | % |
| | (in millions, except for percentages) | | | |
| Online marketing services | 20,620 | 58.3 | 17,634 | 56.6 |
| Live streaming | 9,846 | 27.8 | 9,338 | 30.0 |
| Other services | 4,918 | 13.9 | 4,159 | 13.4 |
| Total | 35,384 | 100.0 | 31,131 | 100.0 |

Online marketing services

Revenue from our online marketing services increased by 16.9% to RMB20.6 billion for the fourth quarter of 2024, from RMB17.6 billion for the third quarter of 2024, primarily attributable to the e-commerce promotional events in the fourth quarter of 2024.

Live streaming

Revenue from our live streaming business increased by 5.4% to RMB9.8 billion for the fourth quarter of 2024, from RMB9.3 billion for the third quarter of 2024, primarily due to diversified high-quality content and healthy live streaming ecosystem.

Other services

Revenue from our other services increased by 18.2% to RMB4.9 billion for the fourth quarter of 2024, from RMB4.2 billion for the third quarter of 2024, primarily due to the growth of our e-commerce business, represented by the growth in our e-commerce GMV. The growth in e-commerce GMV was driven by the e-commerce promotional campaigns in the fourth quarter of 2024.

Cost of Revenues

The following table sets forth our cost of revenues in absolute amounts and as percentages of our total revenues for the fourth quarter and the third quarter of 2024, respectively:

| | Unaudited
Three Months Ended | | | |
| --- | --- | --- | --- | --- |
| | December 31, 2024 | | September 30, 2024 | |
| | RMB | % | RMB | % |
| | (in millions, except for percentages) | | | |
| Revenue sharing costs and related taxes | 10,334 | 29.2 | 8,873 | 28.5 |
| Bandwidth expenses and server custody costs(1) | 1,527 | 4.3 | 1,465 | 4.7 |
| Depreciation of property and equipment and right-of-use assets, and amortization of intangible assets(1) | 1,713 | 4.8 | 1,624 | 5.2 |
| Employee benefit expenses | 757 | 2.1 | 689 | 2.2 |
| Payment processing costs | 846 | 2.4 | 669 | 2.1 |
| Other cost of revenues | 1,084 | 3.2 | 897 | 3.0 |
| Total | 16,261 | 46.0 | 14,217 | 45.7 |

Our cost of revenues increased by 14.4% to RMB16.3 billion for the fourth quarter of 2024, from RMB14.2 billion for the third quarter of 2024, primarily attributable to increases in revenue sharing costs and related taxes in line with our revenue growth, payment processing costs and content costs as part of other cost of revenues.

Gross Profit and Gross Profit Margin

The following table sets forth our gross profit both in absolute amounts and as percentages of our total revenues, or gross profit margin, for the fourth quarter and the third quarter of 2024, respectively:

| | Unaudited
Three Months Ended | | | |
| --- | --- | --- | --- | --- |
| | December 31, 2024 | | September 30, 2024 | |
| | RMB | % | RMB | % |
| | (in millions, except for percentages) | | | |
| Gross profit | 19,123 | 54.0 | 16,914 | 54.3 |

As a result of the foregoing, our gross profit increased by 13.1% to RMB19.1 billion for the fourth quarter of 2024, from RMB16.9 billion for the third quarter of 2024. Our gross profit margin decreased to 54.0% for the fourth quarter of 2024, from 54.3% for the third quarter of 2024.

22 -

Selling and Marketing Expenses

Our selling and marketing expenses increased by 9.2% to RMB11.3 billion for the fourth quarter of 2024, from RMB10.4 billion for the third quarter of 2024, primarily due to the increased spending in promotion activities. As a percentage of our total revenues, selling and marketing expenses decreased to 32.0% for the fourth quarter of 2024, from 33.3% for the third quarter of 2024, primarily attributable to improved operating efficiency.

Administrative Expenses

Our administrative expenses were RMB866 million for the fourth quarter of 2024, compared to RMB796 million for the third quarter of 2024, primarily due to an increase in employee benefit expenses, including the related share-based compensation expenses.

Research and Development Expenses

Our research and development expenses were RMB3.5 billion for the fourth quarter of 2024, compared to RMB3.1 billion for the third quarter of 2024, primarily attributable to an increase in employee benefit expenses, including the related share-based compensation expenses.

Other Income

Our other income was RMB187 million and RMB194 million for the fourth quarter and the third quarter of 2024, respectively.

Other Gains, Net

Our other gains, net increased to RMB592 million for the fourth quarter of 2024, from RMB271 million for the third quarter of 2024, primarily due to the changes in foreign exchange and fair value of financial assets at fair value through profit or loss.

Operating Profit

As a result of the foregoing, we had an operating profit of RMB4.3 billion for the fourth quarter of 2024, compared to an operating profit of RMB3.1 billion for the third quarter of 2024, and our operating margin was 12.1% for the fourth quarter of 2024, compared to 10.0% for the third quarter of 2024.

The following table sets forth our operating profit/(loss) by segment in absolute amounts for the fourth quarter and the third quarter of 2024, respectively:

| | Unaudited
Three Months Ended | | |
| --- | --- | --- | --- |
| | December 31, 2024 | September 30, 2024 | Quarter-over-quarter change |
| | (RMB millions, except for percentages) | | |
| Domestic | 4,361 | 3,505 | 24.4% |
| Overseas | (236) | (153) | 54.2% |
| Unallocated items | 143 | (233) | N/A |
| Total | 4,268 | 3,119 | 36.8% |

Our operating profit from the domestic segment increased to RMB4.4 billion for the fourth quarter of 2024, from RMB3.5 billion for the third quarter of 2024, mainly due to a 14.4% quarter-over-quarter growth in domestic revenues.

Our operating loss from the overseas segment was RMB236 million for the fourth quarter of 2024, compared to RMB153 million for the third quarter of 2024.

Finance Income, Net

Our finance income, net was RMB19 million and RMB37 million for the fourth quarter and the third quarter of 2024, respectively.

Share of Losses of Investments Accounted for Using the Equity Method

Our share of losses of investments accounted for using the equity method was RMB1 million for the fourth quarter of 2024, compared to RMB6 million for the third quarter of 2024.

Profit before Income Tax

As a result of the foregoing, we had a profit before income tax of RMB4.3 billion for the fourth quarter of 2024, compared to a profit before income tax of RMB3.2 billion for the third quarter of 2024.

Income Tax (Expenses)/Benefits

We had income tax expenses of RMB312 million for the fourth quarter of 2024, compared to income tax benefits of RMB120 million for the third quarter of 2024. The change was primarily due to the decrease of deferred income tax benefits recognized on tax losses.

Profit for the Period

As a result of the foregoing, we had a profit of RMB4.0 billion for the fourth quarter of 2024, compared to a profit of RMB3.3 billion for the third quarter of 2024.

Reconciliation of Non-IFRS Accounting Standards Measures to the Nearest IFRS Accounting Standards Measures

We believe that the presentation of non-IFRS Accounting Standards measures facilitate comparisons of operating performance from period to period and company to company by eliminating the potential impact of items that our management does not consider to be indicative of our operating performance, such as certain non-cash items. The use of these non-IFRS Accounting Standards measures has limitations as an analytical tool, and you should not consider them in isolation from, as a substitute for, analysis of, or superior to, our results of operations or financial conditions as reported under IFRS Accounting Standards. In addition, these non-IFRS Accounting Standards financial measures may be defined differently from similar terms used by other companies, and may not be comparable to other similarly titled measures used by other companies. Our presentation of these non-IFRS Accounting Standards measures should not be construed as an implication that our future results will be unaffected by unusual or non-recurring items.

The following table sets forth the reconciliations of our non-IFRS Accounting Standards financial measures for the years ended December 31, 2024 and 2023, respectively, to the nearest measures prepared in accordance with IFRS Accounting Standards:

	Year Ended December 31,
	2024	2023
	(RMB millions)
Profit for the year	15,344	6,399
Adjusted for:
Share-based compensation expenses	2,349	3,570
Net fair value changes on investments(1)	23	302
Adjusted net profit (unaudited)	17,716	10,271
Adjusted net profit (unaudited)	17,716	10,271
Adjusted for:
Income tax expenses	150	490
Depreciation of property and equipment	4,064	3,989
Depreciation of right-of-use assets	2,972	3,065
Amortization of intangible assets	104	148
Finance income, net	(236)	(539)
Adjusted EBITDA (unaudited)	24,770	17,424

24 -

The following table sets forth the reconciliations of our non-IFRS Accounting Standards financial measures for the fourth quarter of 2024, the third quarter of 2024 and the fourth quarter of 2023, respectively, to the nearest measures prepared in accordance with IFRS Accounting Standards:

	Unaudited Three Months Ended
	December 31, 2024	September 30, 2024	December 31, 2023
	(RMB millions)
Profit for the period	3,974	3,270	3,612
Adjusted for:
Share-based compensation expenses	636	698	653
Net fair value changes on investments(1)	91	(20)	97
Adjusted net profit	4,701	3,948	4,362
Adjusted net profit	4,701	3,948	4,362
Adjusted for:
Income tax expenses/(benefits)	312	(120)	122
Depreciation of property and equipment	1,093	997	1,018
Depreciation of right-of-use assets	756	765	732
Amortization of intangible assets	26	25	33
Finance income, net	(19)	(37)	(135)
Adjusted EBITDA	6,869	5,578	6,132

Note:
(1) Net fair value changes on investments represents net fair value (gains)/losses on financial assets at fair value through profit or loss of our investments in listed and unlisted entities, net (gains)/losses on deemed disposals of investments and impairment provision for investments, which is unrelated to our core business and operating performance and subject to market fluctuations, and exclusion of which provides investors with more relevant and useful information to evaluate our performance.

Liquidity and Financial Resources

Other than the funds raised through our Global Offering in February 2021, our principal sources of funds for working capital and other capital needs have been capital contributions from the Shareholders, cash generated from issuance of convertible redeemable preferred shares and borrowings, and cash generated from our operating activities. We had cash and cash equivalents of RMB12.7 billion as of December 31, 2024, compared to RMB12.9 billion as of December 31, 2023.

Our total available funds which we considered in cash management included but not limited to cash and cash equivalents, time deposits, financial assets and restricted cash. Financial assets mainly included wealth management products and others. The aggregate amount of our available funds was RMB92.8 billion as of December 31, 2024, compared to RMB61.6 billion as of December 31, 2023.

The following table sets forth a summary of our cash flows for the years ended December 31, 2024 and 2023, respectively:

	Year Ended December 31,
	2024	2023
	(RMB millions)
Net cash generated from operating activities	29,787	20,781
Net cash used in investing activities	(36,677)	(19,865)
Net cash generated from/(used in) financing activities	6,714	(1,364)
Net decrease in cash and cash equivalents	(176)	(448)
Cash and cash equivalents at the beginning of the year	12,905	13,274
Effects of exchange rate changes on cash and cash equivalents	(32)	79
Cash and cash equivalents at the end of the year	12,697	12,905

Net Cash Generated from Operating Activities

Net cash generated from operating activities represents the cash generated from our operations minus the income tax paid. Cash generated from our operations primarily consists of our profit before income tax, adjusted by non-cash items and changes in working capital.

For the year ended December 31, 2024, our net cash generated from operating activities was RMB29.8 billion, which was primarily attributable to our profit before income tax of RMB15.5 billion, adjusted by non-cash items, primarily comprising depreciation of property and equipment of RMB4.1 billion, depreciation of right-of-use assets of RMB3.0 billion and share-based compensation expenses of RMB2.3 billion. The amount was further adjusted by changes in working capital, which primarily comprised increases in accounts payables of RMB3.5 billion and other payables and accruals of RMB3.0 billion. We also paid income tax of RMB1.0 billion.

Net Cash Used in Investing Activities

For the year ended December 31, 2024, our net cash used in investing activities was RMB36.7 billion, which was primarily attributable to the net investments in financial assets at fair value through profit or loss of RMB18.8 billion, net investments in time deposits with initial terms of over three months of RMB11.6 billion and purchase of property, equipment and intangible assets of RMB8.1 billion.

Net Cash Generated from Financing Activities

For the year ended December 31, 2024, our net cash generated from financing activities was RMB6.7 billion, which was primarily attributable to the net proceeds from borrowings of RMB11.1 billion, net proceeds under notes arrangements of RMB3.9 billion, payments for shares repurchase of RMB4.9 billion and payments for principal elements of lease and related interests of RMB3.2 billion.

FINANCIAL INFORMATION

CONSOLIDATED INCOME STATEMENT

		Year ended December 31,
	Note	2024	2023
		(RMB millions)
Revenues	4	126,898	113,470
Cost of revenues	6	(57,606)	(56,079)
Gross profit		69,292	57,391
Selling and marketing expenses	6	(41,105)	(36,496)
Administrative expenses	6	(2,916)	(3,514)
Research and development expenses	6	(12,199)	(12,338)
Other income		533	978
Other gains, net	5	1,682	410
Operating profit		15,287	6,431
Finance income, net		236	539
Share of losses of investments accounted for using the equity method		(29)	(81)
Profit before income tax		15,494	6,889
Income tax expenses	7	(150)	(490)
Profit for the year		15,344	6,399
Attributable to:
— Equity holders of the Company		15,335	6,396
— Non-controlling interests		9	3
		15,344	6,399
Earnings per share attributable to equity holders of the Company (expressed in RMB per share)	8
Basic earnings per share		3.56	1.48
Diluted earnings per share		3.48	1.44

27 -

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Year ended December 31,
	2024	2023
	(RMB millions)
Profit for the year	15,344	6,399
Other comprehensive income
Items that will not be reclassified to profit or loss
Share of other comprehensive (loss)/income of investments accounted for using the equity method	(3)	14
Currency translation differences	1,063	1,286
Items that may be subsequently reclassified to profit or loss
Currency translation differences	(805)	(938)
Other comprehensive income for the year, net of taxes	255	362
Total comprehensive income for the year	15,599	6,761
Attributable to:
— Equity holders of the Company	15,590	6,758
— Non-controlling interests	9	3
	15,599	6,761

28 -

CONSOLIDATED BALANCE SHEET

	Note	As of December 31,
		2024	2023
		(RMB millions)
ASSETS
Non-current assets
Property and equipment	9	14,831	12,356
Right-of-use assets	10	8,891	10,399
Intangible assets		1,059	1,073
Investments accounted for using the equity method		166	214
Financial assets at fair value through profit or loss	11	24,430	5,245
Other financial assets at amortized cost	11	62	283
Deferred tax assets		6,604	6,108
Long-term time deposits	13	19,856	9,765
Other non-current assets		1,105	492
		77,004	45,935
Current assets
Trade receivables	12	6,674	6,457
Prepayments, other receivables and other current assets		4,646	4,919
Financial assets at fair value through profit or loss	11	27,050	25,128
Other financial assets at amortized cost	11	233	950
Short-term time deposits	13	11,522	9,874
Restricted cash	13	47	128
Cash and cash equivalents	13	12,697	12,905
		62,869	60,361
Total assets		139,873	106,296

29 -

CONSOLIDATED BALANCE SHEET

	Note	As of December 31,
		2024	2023
		(RMB millions)
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Company
Share capital		—	—
Share premium		268,733	273,459
Treasury shares		(341)	(88)
Other reserves		35,776	33,183
Accumulated losses		(242,164)	(257,491)
		62,004	49,063
Non-controlling interests		20	11
Total equity		62,024	49,074
LIABILITIES
Non-current liabilities
Borrowings	15	11,100	—
Financial liabilities at fair value through profit or loss		124	—
Lease liabilities	10	6,765	8,405
Deferred tax liabilities		13	18
Other non-current liabilities		19	21
		18,021	8,444
Current liabilities
Accounts payables	16	27,470	23,601
Other payables and accruals		23,113	16,592
Advances from customers	17	4,696	4,036
Financial liabilities at fair value through profit or loss		5	—
Income tax liabilities		873	1,222
Lease liabilities	10	3,671	3,327
		59,828	48,778
Total liabilities		77,849	57,222
Total equity and liabilities		139,873	106,296

30 -

31 -

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	Year ended December 31,
	2024	2023
	(RMB millions)
Net cash generated from operating activities	29,787	20,781
Net cash used in investing activities	(36,677)	(19,865)
Net cash generated from/(used in) financing activities	6,714	(1,364)
Net decrease in cash and cash equivalents	(176)	(448)
Cash and cash equivalents at the beginning of the year	12,905	13,274
Effects of exchange rate changes on cash and cash equivalents	(32)	79
Cash and cash equivalents at the end of the year	12,697	12,905

NOTES TO THE FINANCIAL INFORMATION

1 General information

Kuaishou Technology (the “Company”) was incorporated in the Cayman Islands on February 11, 2014 as an exempted company with limited liability. The registered office is at PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. The Company’s Class B Shares have been listed on the Main Board of the Hong Kong Stock Exchange.

The Company is an investment holding company. The Company and its subsidiaries, including structured entities (collectively, the “Group”), provides online marketing services, live streaming services and other services to its customers.

The consolidated financial statements are presented in Renminbi (“RMB”), unless otherwise stated.

2 Basis of preparation and presentation

2.1 Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with all applicable International Financial Reporting Standards and interpretations issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and disclosure requirements of the Hong Kong Companies Ordinance.

The consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value.

2.2 Amendments adopted by the Group

The following amendments are mandatory for the first time for the Group’s financial year beginning on January 1, 2024 and are applicable for the Group:

Classification of Liabilities as Current or Non-current — Amendments to IAS 1
Lease Liability in a Sale and Leaseback — Amendments to IFRS 16
Non-current Liabilities with Covenants — Amendments to IAS 1
Supplier Finance Arrangements — Amendments to IAS 7 and IFRS 7

The adoption of these amendments does not have significant impact on the results and the financial position of the Group.

32 -

33 -

2.3 New standards and amendments not yet adopted

Certain new standards and amendments as set out below have been issued but are not yet effective for the financial year beginning on January 1, 2024 and have not been early adopted by the Group. These new standards and amendments are not expected to have a material impact on the Group’s consolidated financial position and performance.

New standards and amendments	Effective for financial years beginning on or after
Lack of Exchangeability — Amendments to IAS 21	January 1, 2025
Classification and Measurement of Financial Instruments
— Amendments to IFRS 9 and IFRS 7	January 1, 2026
Annual improvements to IFRS — Volume 11	January 1, 2026
Presentation and Disclosure in Financial Statements
— IFRS 18	January 1, 2027

3 Segment information

The Group’s business activities, for which discrete financial statements are available, are regularly reviewed and evaluated by the chief operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer of the Group. As a result of this evaluation, the Group determined that it has operating segments as follows:

Domestic
Overseas

The CODM assesses the performance of the operating segments mainly based on revenues and operating profit or loss of each operating segment. Thus, segment result would present revenues, cost of revenues and operating expenses, and operating profit or loss for each segment, which is in line with CODM’s performance review. There were no material inter-segment sales during the years ended December 31, 2024 and 2023.

The revenues from customers reported to CODM are measured as revenues in each segment. The operating profit or loss in each segment reported to CODM are measured as cost of revenues and operating expenses deducted from its revenues. Certain items are not allocated to each segment as they are not directly relevant to the operating results upon performance measurement and resource allocation by the CODM. Share-based compensation expenses, other income and other gains, net are not allocated to individual operating segments.

There were no separate segment assets and segment liabilities information provided to the CODM, as CODM does not use this information to allocate resources to or to evaluate the performance of the operating segments.

	Year ended December 31, 2024
	Domestic	Overseas	Unallocated items	Total
	(RMB millions)
Revenues	122,202	4,696	—	126,898
Cost of revenues and operating expenses	(105,847)	(5,630)	—	(111,477)
Unallocated items	—	—	(134)	(134)
Operating profit/(loss)	16,355	(934)	(134)	15,287
	Year ended December 31, 2023
	Domestic	Overseas	Unallocated items	Total
	(RMB millions)
Revenues	111,186	2,284	—	113,470
Cost of revenues and operating expenses	(99,784)	(5,073)	—	(104,857)
Unallocated items	—	—	(2,182)	(2,182)
Operating profit/(loss)	11,402	(2,789)	(2,182)	6,431

4 Revenues

The breakdown of revenues is as follows:

	Year ended December 31,
	2024	2023
	(RMB millions)
Online marketing services	72,419	60,304
Live streaming	37,061	39,054
Other services	17,418	14,112
	126,898	113,470

5 Other gains, net

	Year ended December 31,
	2024	2023
	(RMB millions)
Net fair value gains on financial assets at fair value through profit or loss
— Investments in listed and unlisted entities	(23)	(302)
— Wealth management products and others	1,707	686
Net gains on disposal of property and equipment, intangible assets and right-of-use assets	98	87
Net foreign exchange (losses)/gains	(68)	8
Others	(32)	(69)
	1,682	410

6 Expenses by nature

	Year ended December 31,
	2024	2023
	(RMB millions)
Revenue sharing costs and related taxes	36,277	34,957
Promotion and marketing expenses	38,652	33,802
Employee benefit expenses	17,297	18,334
Bandwidth expenses and server custody costs	5,761	5,987
Depreciation of property and equipment	4,064	3,989
Depreciation of right-of-use assets (Note a)	2,972	3,065
Amortization of intangible assets	104	148
Payment processing costs	2,819	2,569
Outsourcing and other labor costs	1,349	1,147
Auditor’s remuneration
— Audit services	30	30
— Non-audit services	3	12
Other professional fees	248	221
Tax surcharges	1,036	710
Credit loss allowances on financial assets	52	93
Others (Note b)	3,162	3,363
	113,826	108,427

Note a: The depreciation of right-of-use assets include the expenses related to leases of internet data centers, office buildings and land with a term of over one year.
Note b: Others mainly comprise content-related costs, traveling and communication expenses and office facilities expenses.

35 -

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7 Income tax

The income tax expenses of the Group are analyzed as follows:

	Year ended December 31,
	2024	2023
	(RMB millions)
Current income tax	(651)	(1,508)
Deferred income tax	501	1,018
Income tax expenses	(150)	(490)

8 Earnings per share

(a) Basic earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.

	Year ended December 31,
	2024	2023
Earnings attributable to equity holders of the Company (RMB millions)	15,335	6,396
Weighted average number of ordinary shares in issue (million shares)	4,305	4,314
Basic earnings per share (expressed in RMB per share)	3.56	1.48

(b) Diluted earnings per share

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. During the years ended December 31, 2024 and 2023, the Company had two categories of potential ordinary shares: share options and restricted share units ("RSUs").

	Year ended December 31,
	2024	2023
Earnings attributable to equity holders of the Company (RMB millions)	15,335	6,396
Weighted average number of ordinary shares in issue (million shares)	4,305	4,314
Adjustments for share options and RSUs (million shares)	101	127
Weighted average number of ordinary shares used as the denominator in calculating diluted earnings per share (million shares)	4,406	4,441
Diluted earnings per share (expressed in RMB per share)	3.48	1.44

9 Property and equipment

The detailed information of property and equipment is as follows:

	Buildings	Servers, computers and equipment	Office equipment	Leasehold improvements	Construction in progress	Total
		(RMB millions)
At January 1, 2024
Cost	3,039	24,153	101	965	102	28,360
Accumulated depreciation	(282)	(15,344)	(54)	(324)	—	(16,004)
Net book amount	2,757	8,809	47	641	102	12,356
Year ended December 31, 2024
Opening net book amount	2,757	8,809	47	641	102	12,356
Currency translation differences	—	7	—	1	—	8
Additions	—	6,211	14	7	368	6,600
Transfers	48	188	—	35	(271)	—
Disposals	—	(33)	(1)	(35)	—	(69)
Depreciation charge	(149)	(3,767)	(21)	(127)	—	(4,064)
Closing net book amount	2,656	11,415	39	522	199	14,831
At December 31, 2024
Cost	3,087	29,975	109	904	199	34,274
Accumulated depreciation	(431)	(18,560)	(70)	(382)	—	(19,443)
Net book amount	2,656	11,415	39	522	199	14,831

	Buildings	Servers, computers and equipment	Office equipment	Leasehold improvements	Construction in progress	Total
	(RMB millions)
At January 1, 2023
Cost	2,741	21,487	76	574	824	25,702
Accumulated depreciation	(138)	(11,956)	(39)	(354)	—	(12,487)
Net book amount	2,603	9,531	37	220	824	13,215
Year ended December 31, 2023
Opening net book amount	2,603	9,531	37	220	824	13,215
Currency translation differences	—	8	—	1	—	9
Additions	—	2,927	34	41	178	3,180
Transfers	298	—	—	602	(900)	—
Disposals	—	(14)	(2)	(43)	—	(59)
Depreciation charge	(144)	(3,643)	(22)	(180)	—	(3,989)
Closing net book amount	2,757	8,809	47	641	102	12,356
At December 31, 2023
Cost	3,039	24,153	101	965	102	28,360
Accumulated depreciation	(282)	(15,344)	(54)	(324)	—	(16,004)
Net book amount	2,757	8,809	47	641	102	12,356

Depreciation expenses have been charged to the consolidated income statement as follows:

	Year ended December 31,
	2024	2023
	(RMB millions)
Cost of revenues	3,745	3,644
Selling and marketing expenses	41	50
Administrative expenses	50	52
Research and development expenses	228	243
	4,064	3,989

Lease

(a) Items recognized in the consolidated balance sheet

	As of December 31,
	2024	2023
	(RMB millions)
Right-of-use assets
Internet data centers	7,131	8,261
Office buildings	1,733	2,111
Land use rights	27	27
	8,891	10,399
	As of December 31,
	2024	2023
	(RMB millions)
Lease liabilities
Current	3,671	3,327
Non-current	6,765	8,405
	10,436	11,732

Additions and modifications to the right-of-use assets for the year ended December 31, 2024 was approximately RMB2.5 billion (2023: RMB4.2 billion).

(b) Items recognized in the consolidated income statement and consolidated statement of cash flows

	Year ended December 31,
	2024	2023
	(RMB millions)
Depreciation charge of right-of-use assets
— Internet data centers	2,588	2,546
— Office buildings	383	518
— Land use rights	1	1
Interest expense (included in finance income, net)	513	495
Expense relating to short-term leases not included in lease liabilities (included in cost of revenues, selling and marketing expenses, administrative expenses and research and development expenses)	56	127
	3,541	3,687

The total cash outflows for leases (not including those for short-term leases which has been included as cash outflows from operating activities) for the year ended December 31, 2024 was approximately RMB3.2 billion (2023: RMB3.5 billion).

11 Investments

	As of December 31,
	2024	2023
	(RMB millions)
Non-current assets
Financial assets at fair value through profit or loss
— Investments in unlisted entities	2,719	2,609
— Investment in a listed entity	80	52
— Wealth management products and others	21,338	2,584
— Derivative financial instruments	293	—
	24,430	5,245
Other financial assets at amortized cost	62	283
	24,492	5,528
Current assets
Financial assets at fair value through profit or loss
— Investment in a listed entity	6	8
— Wealth management products and others	27,044	25,120
	27,050	25,128
Other financial assets at amortized cost	233	950
	27,283	26,078
Total	51,775	31,606

Movements in financial assets at fair value through profit or loss are as below:

	Year ended December 31,
	2024	2023
	(RMB millions)
At the beginning of the year	30,373	16,713
Additions	97,012	61,263
Disposals	(77,882)	(48,101)
Change in fair value through profit or loss	1,713	384
Currency translation differences	264	114
At the end of the year	51,480	30,373

40 -

12 Trade receivables

The detailed information of trade receivables is as follows:

	As of December 31,
	2024	2023
	(RMB millions)
Trade receivables from contracts with customers	6,827	6,595
Less: credit loss allowances	(153)	(138)
	6,674	6,457

The Group generally grants a credit period of 90 days to its customers. Aging analysis of trade receivables based on invoice date is as follows:

	As of December 31,
	2024	2023
	(RMB millions)
Up to 3 months	6,021	5,816
Over 3 months	806	779
	6,827	6,595

Movements on the Group's allowance for credit loss of trade receivables are as follows:

	Year ended December 31,
	2024	2023
	(RMB millions)
At the beginning of the year	(138)	(45)
Additional provision	(15)	(93)
At the end of the year	(153)	(138)

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13 Cash and bank balances

(a) Cash and cash equivalents

	As of December 31,
	2024	2023
	(RMB millions)
Cash at bank and held in other financial institutions	11,816	9,446
Time deposits with initial terms within three months	881	3,459
	12,697	12,905

Cash and cash equivalents are denominated in the following currencies:

	As of December 31,
	2024	2023
	(RMB millions)
RMB	10,934	7,609
USD	1,488	4,432
HKD	111	744
Others	164	120
	12,697	12,905

(b) Restricted cash

Restricted cash are denominated in the following currencies:

	As of December 31,
	2024	2023
	(RMB millions)
RMB	47	126
USD	—	2
	47	128

Time deposits are denominated in the following currencies:

	As of December 31,
	2024	2023
	(RMB millions)
RMB	28,178	14,706
USD	3,189	4,580
HKD	—	342
Others	11	11
	31,378	19,639

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14 Dividends

No dividends have been paid or declared by the Company during the years ended December 31, 2024 and 2023.

15 Borrowings

	As of December 31,
	2024	2023
	(RMB millions)
Unsecured bank loans (Note a)	11,100	—

Note a: As of December 31, 2024, unsecured bank loans were RMB11.1 billion, with a term of 3 years and floating interest rate. The annual average interest rate was 3.38%.

16 Accounts payables

The aging analysis of accounts payables based on invoice date is as follows:

	As of December 31,
	2024	2023
	(RMB millions)
Up to 3 months	18,266	16,447
3 to 6 months	3,133	2,479
6 months to 1 year	4,626	3,165
Over 1 year	1,445	1,510
	27,470	23,601

17 Advances from customers

The breakdown of advances from customers is as follows:

	As of December 31,
	2024	2023
	(RMB millions)
Advances from online marketing services customers	2,776	2,267
Advances from live streaming customers	1,833	1,698
Others	87	71
	4,696	4,036

OTHER INFORMATION

Final Dividend

The Board has resolved not to recommend the payment of a final dividend for the year ended December 31, 2024.

Further Change in Use of Proceeds from the Global Offering

The net proceeds received by the Company from the Global Offering, after deduction of the underwriting commission and other expenses payable by the Company in connection with the Global Offering, were approximately HK$46,964.4 million.

Reference is made to the results announcement for the three and six months ended June 30, 2023 of the Company dated August 22, 2023, in relation to, among others, the reallocation of the unutilized net proceeds as of June 30, 2023 (the "2023 Reallocation"). As of December 31, 2024, the total unutilized net proceeds from the Global Offering amounted to approximately HK$8,086.5 million (the "Unutilized Net Proceeds"). After due and careful consideration of the reasons and benefits as set out below, the Board has resolved to further change the use of the Unutilized Net Proceeds and extend the expected timeline (the "2025 Reallocation") in the following manner:

	Allocation of the net proceeds as set out in the Prospectus (HK$ million)	Amount of net proceeds unutilized immediately before the 2023 Reallocation (HK$ million)	Amount of unutilized net proceeds after the 2023 Reallocation (HK$ million)	Amount of net proceeds utilized after the 2023 Reallocation up to December 31, 2024 (HK$ million)	Amount of Unutilized Net Proceeds as of December 31, 2024 (HK$ million)	Revised allocation of the Unutilized Net Proceeds after the 2025 Reallocation (HK$ million)	Expected timeline of full utilization of the Unutilized Net Proceeds
Enhance and grow the ecosystem	16,437.5	578.2	4,737.3	774.9	3,962.4	2,021.6	Before December 31, 2026
Strengthen research and development and technological capabilities	14,089.3	722.1	4,237.3	587.5	3,649.8	2,021.6	Before December 31, 2026
Selectively acquire or invest in products, services and businesses	11,741.1	11,236.1	500.0	25.7	474.3	—	—
Working capital and general corporate purposes	4,969.5	96.5	3,158.3	3,158.3	—	4,043.3	Before December 31, 2026
Total	46,964.4	12,632.9	12,632.9	4,546.4	8,086.5	8,086.5

44 -

45 -

Reasons and Benefits for the Further Change in Use of Proceeds

The Group has been continuously improving its profitability and successfully turned losses into profits in 2023. With the improved operational efficiency and profitability, the Company has been able to fund the further development of its ecosystem and R&D activities from, among others, cash generated from its operating activities. Furthermore, quality acquisition and investment targets with appropriate values and synergistic to the current business of the Company are expected to be relatively limited. In consideration of the macroeconomic condition and the business strategy of the Group, the Company has taken a cautious and prudent approach in devoting resources in acquiring or investing in domestic and overseas target companies. As such, the reliance on the net proceeds from the Global Offering to fund the Company's ecosystem, research and development and technological capabilities, and acquisition and investment has been reduced.

Taking into consideration of the above, the Board determined to appropriately reallocate part of the Unutilized Net Proceeds to working capital and general corporate purposes (including share repurchases) to achieve greater flexibility in the allocation of the Company's internal resources for the daily operation, and enhance the utilization efficiency of the capital by avoiding idling of funds. Due to the improved profitability and disciplined management in its cash resources, the Board expects that additional time is required before fully utilizing the Unutilized Net Proceeds.

The Group will continue to focus on the strategic needs of long-term development and further optimize operational and monetization efficiency. In view of the above, the Board considers that the further change in use of the Unutilized Net Proceeds is fair and reasonable and in the best interest of the Company and the Shareholders as a whole.

Compliance with the Corporate Governance Code

The Company is committed to maintaining and promoting high standard of corporate governance which is crucial to the Group's development and safeguard the interests of the Shareholders. The Company has adopted the principles and code provisions of the Corporate Governance Code as the basis of the Company's corporate governance practices.

Save for the deviation from code provision C.2.1 as set out in Part 2 of the Corporate Governance Code, which is explained in the following paragraph, the Company has complied with all applicable code provisions as set out in Part 2 of the Corporate Governance Code during the year ended December 31, 2024.

The code provision C.2.1 as set out in Part 2 of the Corporate Governance Code stipulates that the responsibilities between the chairman and chief executive of a listed issuer should be separate and should not be performed by the same individual. Mr. Cheng Yixiao has served as both the chairman of the Board and the chief executive officer of the Company since October 29, 2023, to ensure consistent leadership to advance long-term strategy, and allowing for further deepening the monetization capabilities and optimizing operating efficiency of the Group. The Board considers that the balance of power and authority for the present arrangement will not be impaired and this structure will enable the Company to make and implement decisions promptly and effectively.

The Company will continue to enhance its corporate governance practices appropriate to the conduct and growth of its business and to review such practices from time to time to ensure that they comply with statutory and professional standards and align with the latest development.

Compliance with the Model Code

The Company has adopted the Model Code as its own code of conduct regarding Directors' dealings in the securities of the Company. Having made specific enquiries of all Directors, each of the Directors has confirmed that he has complied with the required standards as set out in the Model Code during the year ended December 31, 2024.

Purchase, Sale or Redemption of the Company's Listed Securities

During the year ended December 31, 2024 and up to the Latest Practicable Date, the Company repurchased a total of 133,881,000 Class B Shares (the "Shares Repurchased") on the Stock Exchange at an aggregate consideration of HK$5,883,944,407.94. Particulars of the Shares Repurchased are summarized as follows:

Month of Repurchase	No. of Shares Repurchased	Price paid per Share		Aggregate Consideration
		Highest (HK$)	Lowest (HK$)
January 2024	12,986,000	51.85	38.85	573,165,403.11
February 2024	9,793,200	46.25	38.45	426,284,299.06
March 2024	7,226,900	51.75	43.10	342,663,422.95
April 2024	4,571,500	50.00	44.05	219,923,443.35
May 2024	2,960,600	59.95	54.90	169,926,425.13
June 2024	6,401,800	52.00	46.05	310,500,686.11
July 2024	5,866,200	48.15	43.55	269,331,538.50
August 2024	24,205,400	45.15	37.70	1,000,866,234.36
September 2024	17,099,500	41.75	37.80	671,487,334.14
October 2024	3,428,900	54.95	44.75	165,685,502.29
November 2024	12,207,000	52.60	44.10	567,943,882.60
December 2024	16,677,700	49.45	41.25	746,108,708.58
January 2025	10,194,800	41.20	39.20	409,643,865.56
February 2025	261,500	39.95	39.50	10,413,662.20
March 2025 (up to the Latest Practicable Date)	0	N/A	N/A	0.00
Total	133,881,000			5,883,944,407.94

As of the Latest Practicable Date, a total of 135,767,500 Class B Shares repurchased from December 18, 2023 to February 3, 2025 have been cancelled on January 31, February 29, March 28, April 30, June 6, July 31, August 30, September 30, October 31, November 29, December 24, 2024, January 24, and February 28, 2025, respectively, and the number of Class B Shares in issue was reduced by 135,767,500 shares as a result of the cancellation. Upon cancellation of such Class B Shares, Reach Best Developments Limited, a holder of Class A Shares, simultaneously converted a total of 23,507,635 Class A Shares into Class B Shares on a one-to-one ratio on the same days, pursuant to Rule 8A.21 of the Listing Rules, such that the proportion of shares carrying weighted voting rights of the Company would not be increased, pursuant to the requirements under Rules 8A.13 and 8A.15 of the Listing Rules. As of the Latest Practicable Date, the Company had cancelled all the Shares Repurchased.

Save as disclosed above, neither the Company nor any of its subsidiaries or Consolidated Affiliated Entities has purchased, sold or redeemed any of the Company's listed securities (including sale of treasury shares) during the year ended December 31, 2024 and up to the Latest Practicable Date.

Audit Committee

The Audit Committee (comprising three independent non-executive Directors, namely Mr. Huang Sidney Xuande, Mr. Ma Yin and Prof. Xiao Xing), after the discussion with the Auditor, has reviewed the Company's audited consolidated financial statements for the year ended December 31, 2024. The Audit Committee has reviewed the accounting principles and practices adopted by the Company and discussed matters in respect of risk management and internal control of the Company. There is no disagreement between the Board and the Audit Committee regarding the accounting treatment adopted by the Company.

The Company's audited consolidated financial statements for the year ended December 31, 2024 have been prepared in accordance with IFRS Accounting Standards.

Auditor's Procedures Performed on this Results Announcement

The figures in respect of the announcement of the Group's results for the year ended December 31, 2024 have been agreed by the Auditor to the amounts set out in the Group's audited consolidated financial statements for the year. The work performed by the Auditor in this respect did not constitute an audit, review or other assurance engagement, and consequently no assurance has been expressed by the Auditor on this announcement.

Significant Events after December 31, 2024

Save as disclosed in this announcement, there were no other significant events affecting the Group which occurred after December 31, 2024 and up to the date of this announcement.

Annual General Meeting

The 2025 AGM will be held on Thursday, June 19, 2025. A notice convening the 2025 AGM will be published and dispatched to the Shareholders in the manner required by the Listing Rules in due course (if requested).

47 -

48 -

Closure of Register of Members

For determining the entitlement to attend and vote at the 2025 AGM, the register of members of the Company will be closed from Monday, June 16, 2025 to Thursday, June 19, 2025 (both days inclusive), during which period no transfer of shares of the Company will be registered. The record date will be Thursday, June 19, 2025. In order to be eligible to attend and vote at the 2025 AGM, all properly completed transfer forms accompanied by the relevant share certificates must be lodged with the Company’s branch share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712–1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong, for registration not later than 4:30 p.m. on Friday, June 13, 2025.

Publication of the Annual Results and Annual Report

This annual results announcement is published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.kuaishou.com), and the annual report containing all the information required by the Listing Rules will be published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.kuaishou.com) and will be dispatched to the Shareholders in accordance with the Listing Rules in due course (if requested).

APPRECIATION

On behalf of the Board, I would like to express our heartfelt gratitude to our conscientious and professional staff and management team for their hard work during the past year. I would also like to extend our thanks and appreciation to our Shareholders and stakeholders who continue to provide us with great support and confidence.

By order of the Board
Kuaishou Technology
Mr. Cheng Yixiao
Chairman

Hong Kong, March 25, 2025

As at the date of this announcement, the Board comprises Mr. Cheng Yixiao and Mr. Su Hua as executive Directors; Mr. Li Zhaohui, Mr. Zhang Fei and Mr. Wang Huiwen as non-executive Directors; Mr. Huang Sidney Xuande, Mr. Ma Yin and Prof. Xiao Xing as independent non-executive Directors.

Certain statements included in this announcement, other than statements of historical fact, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “might”, “can”, “could”, “will”, “would”, “anticipate”, “believe”, “continue”, “estimate”, “expect”, “forecast”, “intend”, “plan”, “seek”, or “timetable”. These forward-looking statements, which are subject to risks, uncertainties, and assumptions, may include our business outlook, estimates of financial performance, forecast business plans, growth strategies and projections of anticipated trends in our industry. These forward-looking statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time of this announcement. They are based on certain expectations, assumptions and premises, many of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying these forward-looking statements are a large number of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this announcement should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements. Except as required by law, we are not obligated, and we undertake no obligation, to release publicly any revisions to these forward-looking statements that might reflect events or circumstance occurring after the date of this announcement or those that might reflect the occurrence of unanticipated events.

DEFINITIONS

In this announcement, the following expressions have the meanings set out below unless the context requires otherwise:

"AGM" annual general meeting of the Company

"AI" artificial intelligence

"AIGC" artificial intelligence generated content

"Articles" the articles of association of the Company adopted on and with effect from June 13, 2024, as amended from time to time

"Audit Committee" the audit committee of the Board

"Auditor" PricewaterhouseCoopers, the external auditor of the Company

"Board" or "Board of Directors" the board of directors of the Company

"Class A Shares" class A ordinary shares of the share capital of the Company with a par value of US$0.0000053 each, conferring weighted voting rights in the Company such that a holder of a Class A Share is entitled to 10 votes per share on any resolution tabled at the Company's general meeting, save for resolutions with respect to any Reserved Matters, in which case they shall be entitled to one vote per share

"Class B Shares" class B ordinary shares of the share capital of the Company with a par value of US$0.0000053 each, conferring a holder of a Class B Share one vote per share on any resolution tabled at the Company's general meeting

"Companies Ordinance" the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), as amended or supplemented from time to time

"Company", "Kuaishou" or "we" Kuaishou Technology (快手科技), an exempted company incorporated in the Cayman Islands with limited liability on February 11, 2014

"Consolidated Affiliated Entities" the entities that the Company controls through a set of contractual arrangements

"Corporate Governance Code" the Corporate Governance Code as set out in Appendix C1 to the Listing Rules

"DAU(s)" refers to daily active users, which are calculated as the number of unique user accounts, excluding spam accounts, that access an app at least once during the day

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“Director(s)” the director(s) of the Company

“eCPM” effective cost per mille

“Global Offering” the global offering of the Class B Shares

“GMV” gross merchandise value, the total value of all orders for products and services placed on, or directed to the Group’s partners through, the Group’s platform, regardless of whether the order is settled or returned, excluding single transactions of RMB100,000 or greater and any series of transactions from a single buyer totaling RMB1,000,000 or greater in a single day, unless they are settled

“Group” the Company, its subsidiaries and its Consolidated Affiliated Entities, or where the context so requires, in respect of the period before the Company became the holding company of its present subsidiaries, the subsidiaries as if they were the subsidiaries of the Company at the time

“HK$” or “HKD” Hong Kong dollars, the lawful currency of Hong Kong

“Hong Kong” Hong Kong Special Administrative Region of the PRC

“IFRS Accounting Standards” International Financial Reporting Standards, amendments and interpretations issued by the International Accounting Standards Board

“KOL(s)” Key opinion leader(s)

“Kuaishou App” collectively, Kuaishou Flagship, Kuaishou Express and Kuaishou Concept mobile apps

“Kuaishou Concept” an app that we launched in November 2018 to explore different user needs and preferences

“Kuaishou Express” a variant of Kuaishou Flagship that was officially launched in August 2019

“Kuaishou Flagship” a mobile app that was derived from our original mobile app, GIF Kuaishou (launched in 2011)

“Latest Practicable Date” March 14, 2025, being the latest practicable date prior to the publication of this annual results announcement for the purpose of ascertaining certain information contained herein

“Listing Rules” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (as amended, supplemented or otherwise modified from time to time)

“Main Board” the stock market (excluding the option market) operated by the Stock Exchange which is independent from and operated in parallel with the Growth Enterprise Market of the Stock Exchange

"MAU(s)"
refers to monthly active users, which are calculated as the number of unique user accounts, excluding spam accounts, that access an app at least once during the calendar month

"Memorandum"
the memorandum of association of the Company (as amended from time to time), adopted on June 13, 2024, as amended from time to time

"Model Code"
Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules

"paying users"
user accounts that purchases a particular service at least once during a given period

"PRC" or "China"
the People's Republic of China, which, for the purpose of this announcement only, excludes Hong Kong, the Macau Special Administrative Region and Taiwan

"Prospectus"
the prospectus of the Company dated January 26, 2021

"Reserved Matters"
those matters resolutions with respect to which each Share is entitled to one vote at general meetings of the Company pursuant to the Articles, being: (i) any amendment to the Memorandum or Articles, including the variation of the rights attached to any class of shares, (ii) the appointment, election or removal of any independent non-executive Director, (iii) the appointment or removal of the Company's auditors, and (iv) the voluntary liquidation or winding-up of the Company

"RMB" or "Renminbi"
Renminbi, the lawful currency of the PRC

"ROI"
return on investment

"Shareholder(s)"
holder(s) of the Shares

"Share(s)"
the Class A Shares and Class B Shares in the capital of the Company, as the context so requires

"Stock Exchange"
The Stock Exchange of Hong Kong Limited

"subsidiary(ies)"
has the meaning ascribed to it under the Companies Ordinance

"US$" or "USD"
the lawful currency of the United States of America

"%"
per cent

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AI assistant

Kuaishou Technology — Earnings Release 2024

10204_rns_2025-03-25_5c719c5b-646c-4632-badc-8e0595bc3afd.pdf

Kuaishou Technology

快手科技

ANNOUNCEMENT OF THE RESULTS FOR THE YEAR ENDED DECEMBER 31, 2024

KEY HIGHLIGHTS

Financial Summary

Operating Metrics

BUSINESS REVIEW AND OUTLOOK

Business Review

User and content ecosystem

Online marketing services

E-commerce

Live streaming

Overseas

Local services

Business Outlook

MANAGEMENT DISCUSSION AND ANALYSIS

Year ended December 31, 2024 Compared to Year ended December 31, 2023

Revenues

Online marketing services

Live streaming

Other services

Cost of Revenues

Gross Profit and Gross Profit Margin

Selling and Marketing Expenses

Administrative Expenses

Research and Development Expenses

Other Income

Other Gains, Net

Operating Profit

Finance Income, Net

Share of Losses of Investments Accounted for Using the Equity Method

Profit before Income Tax

Income Tax Expenses

Profit for the Year

Fourth Quarter of 2024 Compared to Fourth Quarter of 2023

Revenues

Online marketing services

Live streaming

Other services

Cost of Revenues

Gross Profit and Gross Profit Margin

Selling and Marketing Expenses

Administrative Expenses

Research and Development Expenses

Other Income

Other Gains, Net

Operating Profit

Finance Income, Net

Share of Losses of Investments Accounted for Using the Equity Method

Profit before Income Tax

Income Tax Expenses

Profit for the Period

Fourth Quarter of 2024 Compared to Third Quarter of 2024

Revenues

Online marketing services

Live streaming

Other services

Cost of Revenues

Gross Profit and Gross Profit Margin

Selling and Marketing Expenses

Administrative Expenses

Research and Development Expenses

Other Income

Other Gains, Net

Operating Profit

Finance Income, Net

Share of Losses of Investments Accounted for Using the Equity Method

Profit before Income Tax

Income Tax (Expenses)/Benefits

Profit for the Period

Reconciliation of Non-IFRS Accounting Standards Measures to the Nearest IFRS Accounting Standards Measures

Liquidity and Financial Resources

Net Cash Generated from Operating Activities

Net Cash Used in Investing Activities

Net Cash Generated from Financing Activities

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED BALANCE SHEET

Kuaishou Technology Earnings Release 2024