It is rumored in the market that Su Hua, chairman of Kwai, was taken away by the relevant departments at the end of April to cooperate with the investigation.
On May 23, Kwai replied to the Chinese reporter of the securities firm that it had officially reported the case to the public security organ and started legal procedures to resolutely safeguard the legitimate rights and interests of the company and Suhua.
reporter noted that on the 23rd day, the share price of Kwai fell by 7.44%, while the Hang Seng technology index fell by 2.49% on the same day. It is worth mentioning that Kwai technology will release its performance in the first quarter of 2022 today (May 24)
Suhua was taken away for investigation? My response: do not believe rumors, do not spread rumors
On May 23, in response to online rumors that the chairman of the company, Su Hua, was lost and taken away by relevant departments to cooperate with the investigation, Kwai Technology (01024.hk) officially issued a statement saying that the relevant information was untrue.
. For the malicious spreading of Internet rumors, we have officially reported the case to the public security organ and launched relevant legal procedures to resolutely safeguard the legitimate rights and interests of the company and Mr. Su Hua
The reporter noted that earlier on May 23, we media reported that Su Hua, chairman of Kwai, had lost contact. Subsequently, Suhua himself responded through the media that "do not spread rumors or believe rumors."
According to the announcement of Kwai on October 29, 2021, the board of directors of Kwai announced that Suhua would no longer serve as the CEO of the company, effective from October 29, 2021. The board of directors announced that Mr. Cheng Yixiao, co-founder, executive director and chief product officer of the company, has been appointed as CEO with effect from October 29, 2021. Su Hua continues to serve as the chairman, executive director and member of the Remuneration Committee of Kwai, responsible for formulating the company's long-term strategy.
According to public reports, Suhua delivered a congratulatory message in the form of video at the opening ceremony of the 10th global Hunan Business Conference on May 23. A Kwai employee told the Chinese reporter of the securities firm that he saw colleagues forwarding Su Hua's speech at the global Hunan merchants conference in the circle of friends today. Everything was normal and had not been affected by external rumors.
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Suhua's video speech at the global Hunan business conference
According to the red net time report, on May 23, Suhua delivered a congratulatory message in the form of video at the opening ceremony of the 10th global Hunan business conference.
(photo source: red net time news)
su Hua said in his video speech: in recent years, Kwai, founded in 2011 by taking the "free ride" of Hunan Development Group Co.Ltd(000722) has not only benefited from the digital economy era, but also become an important participant in helping the development of the digital economy. According to the data disclosed in the financial report of Kwai, in 2021, more than 20million users obtained income from the Kwai platform, 60% of which came from low - and middle tier cities. In addition, the research on how the short video platform can drive employment opportunities recently released by the school of labor and personnel of Renmin University of China shows that the Kwai platform has driven 34.63 million employment opportunities
Suhua believes that the short video live broadcast platforms, including Kwai, are deeply integrating with the real economy and all walks of life. On the one hand, they have improved the inclusive and convenient supply of online public cultural services; On the other hand, it has spawned new business forms and models, promoted the transformation and upgrading of traditional industries, and burst out greater economic potential and social value.
"Kwai has been promoting the ecological innovation of the live broadcasting industry. Taking live broadcasting e-commerce as an example, this new e-commerce form is effectively connecting urban and rural areas and regions, opening up a new high-efficiency channel for Shenzhen Agricultural Products Group Co.Ltd(000061) up and industrial products down." Su Hua said.
According to public information, Su Hua, born in 1982 in Hunan, graduated from Tsinghua University, is the co-founder, executive director, chairman and member of the Remuneration Committee of Kwai. Prior to the establishment of Kwai, Suhua worked in Google and Baidu. Kwai is Suhua's third venture. According to the global billionaire list of 2022 released by Forbes on April 5, 2022, Suhua ranks 665th with a wealth of US $4.3 billion.
Kwai's first quarter results will be announced today
It is worth mentioning that Kwai is scheduled to announce the results of the first quarter of this year on May 24.
Previously, according to the financial report data of Kwai in 2021, the annual revenue of Kwai in 2021 reached RMB 81.08 billion, a year-on-year increase of 37.9%. Among them, online marketing services (advertising business) became the largest source of revenue, with annual revenue increasing by 95.2% year-on-year to 42.665 billion yuan. In addition, Kwai's annual total e-commerce transactions (Gmv) reached 680billion yuan, a year-on-year increase of 78.4%.
at present, Kwai has not yet achieved profits. In 2021, Kwai had a net loss of 18.85 billion yuan, an increase of 139% year-on-year. At the earnings conference call, Jin Bing, chief financial officer of Kwai, said that Kwai was very confident that it would achieve a positive net profit after adjusting its business in China in the quarter this year
It is worth mentioning that in the fourth quarter of Kwai, dau (daily active users) reached 323million, with a year-on-year increase of 19.2%, and Mau (monthly active users) increased by 21.5% year-on-year to 578million, with an annual increase of more than 100million. The year-on-year increase of dau and Mau was the highest since the four quarters of the year. Kwai said that since the iteration of organizational structure adjustment, the company has focused on implementing more efficient and high-quality user growth strategies.
In terms of stock price performance, since the listing of Kwai, its stock price has been falling all the way. As of May 23, the share price of Kwai was HK $65.95, with a total market capitalization of HK $281.6 billion. Compared with the highest point of HK $417.8 per share after listing, the share price of Kwai has fallen by more than 80% and its market value has fallen by HK $1.5 trillion.
The reporter noted that recently, a number of securities companies, including Citic Securities Company Limited(600030) China Securities Co.Ltd(601066) haitong international, have given "buy" ratings to Kwai in the research report, of which Citic Securities Company Limited(600030) target price is as high as HK $160. Compared with the closing price of HK $65.95 on May 23, it is expected to rise by 143%.
(a number of securities companies recently released research reports promising Kwai)
Citic Securities Company Limited(600030) analysts wangguanran and Liaoyuan believe that according to their performance outlook for the first quarter of 2022, it is expected that Kwai will continue to promote cost reduction, efficiency increase and commercialization expansion in the first quarter of 2022, and users will maintain good growth (dau can reach 339million, year-on-year +15.0%), while content introduction and marketing activities are better than those in the same period of last year, Improve the efficiency of user acquisition and maintenance (according to Aurora data, the average 7-day active retention rate of new users in the first quarter reached 27%, yoy + 16pcts); Platform commercialization continues to expand, and advertising / e-commerce Gmv is expected to increase by 31.5% / 41.9% year-on-year.
The adjusted net loss ratio is expected to be - 21.0%, narrowing by 7.9 PCTs year-on-year.
Citic Securities Company Limited(600030) the research report also said that as China's top short video platform, Kwai is expected to continue to optimize its product model, content strategy and commercialization, and is optimistic about the promotion of the company's cost reduction and efficiency increase strategy as well as the growth momentum of platform ecology and commercialization. In the future, its gross profit margin, sales expense rate and net loss rate are also expected to continue to be optimized.
. The adjusted loss of 1q22 is expected to be 4.65 billion yuan, 3.1% higher than the consistency expectation, mainly because it believes that the management, R & D and other expenses are relatively rigid, and the improvement of expense rate is lower than expected
