Our reporter (chinatimes. net. cn) Yu Yujin reports from Beijing
Fast hand is making more and more money. In the evening of May 22, we released the Q1 performance of 2024 in a quick manner. The user scale and profitability reached a new high again. Its total revenue exceeded 29.4 billion yuan, up 16.6% year on year, and the adjusted net profit rose to 4.39 billion yuan, far exceeding the consensus expectation of the market.
Cheng Yixiao, founder and CEO of Fasthand Technology, said that in the first quarter of 2024, our operational and financial performance continued to be strong, reflecting the strong moat effect of our users and business ecology. In addition, under the background of frequent repurchase of Hong Kong stock companies, fast hand also chose to "bargain" fast hand again. After the release of Q1 financial report in 2024, Fasthand immediately announced the launch of a new round of stock repurchase plan. The announcement shows that the fast hand plan will begin to buy back shares of no more than HK $16 billion in the next three years after the 2024 general meeting of shareholders.
Adjusted net profit increased by more than 100 times year-on-year
In 2024, the Q1 revenue of Fasthand increased by 16.6% year on year to 29.4 billion yuan, and the adjusted net profit increased by more than 100 times year on year to 4.39 billion yuan, a record high in a single quarter, far exceeding the consensus expectation of the Bloomberg market of 3.198 billion yuan, and the adjusted net profit in the same period of 2023 was 42 million yuan.
Online marketing services (i.e. advertising), live broadcast and other services (including e-commerce) - this is the "troika" driving the growth of fast hand revenue. In Q1 2024, the above three businesses will contribute 56.6%, 29.2% and 14.2% to the revenue respectively. In Q1 this year, online marketing and e-commerce are the key businesses to drive the growth of fast selling performance.
This year's Q1 online marketing service revenue of Fasthand still grew at a high rate of 27.4% year on year, reaching 16.7 billion yuan, showing the characteristics of a slack season. According to the reporter, Fasthand's marketing services are divided into external circulation marketing services and external circulation marketing services.
In Q1 2024, the external circulation of quick online marketing services will maintain a strong year-on-year growth, and the media information, games, education and other industries will perform well. The internal circulation marketing revenue from e-commerce merchants has grown beyond the overall GMV. With the application of live hosting function in the promotion scenario, the customer's delivery effect and intention have continued to improve.
Cheng Yixiao said on the financial report telephone that night that the growth of online marketing service revenue will mainly rely on the improvement of eCPM (effective cost per mile) and Ad load, especially in eCPM, we have more room for improvement than peers. We will continue to work for customers in the transformation of deep link targets, which can lead to better customer bids; The intelligent marketing solution based on the capability of the big model has made good profits in intelligent creative production, intelligent marketing delivery and intelligent interactive undertaking. In the future, we also expect the big model to help us achieve greater breakthroughs in user value understanding and marketing content distribution.
It is also worth noting that AI is also helping to make money quickly. In the first quarter of 2024, we will quickly and steadily promote the iterative improvement of the performance of the self-developed large-scale model, and accelerate the application of the large-scale model in various business scenarios.
Cheng Yixiao said, "In terms of the content understanding of the global macro model, our multimodal macro language model can help us deepen our understanding of short video and live content, the understanding of comment areas, and the exploration of users' behavioral interests, so as to better recommend natural content, marketing content, and e-commerce content; while increasing user time, it also brings marketing launch and e-commerce GMV Promotion of. "
E-commerce GMV reached 288.1 billion yuan
While the advertising revenue is growing, the fast e-commerce business is also growing rapidly. In 2024, Q1 GMV of this business increased by 28.2% year-on-year to 288.1 billion yuan. Driven by the growth of e-commerce business, other service revenue increased by 47.6% to 4.2 billion yuan from 2.8 billion yuan in the same period of 2023.
Data shows that in the first quarter of 2024, the monthly active buyers of e-commerce increased by 22.4% year-on-year to 126 million, and the penetration rate of monthly active users has remained above 18% for two consecutive quarters.
Cheng Yixiao analyzed that "the fast e-commerce business is still in the stage of rapid development, and the pan shelf area, as one of the growth engines of e-commerce, has achieved a rapid growth of more than 50% year on year in the first quarter of 2024, thanks to the common drive of our supply and demand sides."
"In the rapid development of fast hand e-commerce in recent years, we have also seen some business pain points, especially traditional businesses, including some source businesses in the industrial belt, who have a very deep accumulation in the supply chain, and also hope to layout their business on new platforms such as fast hand e-commerce; However, due to the lack of marketing promotion and sales channels, many times we are faced with the situation of "there are good products, but they cannot be sold". ”Cheng Yixiao also said at the meeting that we have launched the quick selection, and the merchants provide official sales hosting services to reduce the threshold for businesses to operate. Merchants only need to report goods, delivery, customer service and after-sales services, and quickly take charge of the operation, promotion, commodity sales and other links. In this collaborative relationship, both the platform and the merchants have found their own more suitable stations to do their best business.
According to the reporter, this year, fast hand e-commerce also has in-depth cooperation with major industrial belts, introducing a large number of high-quality goods at low and medium prices. Taking fruit and vegetable category as an example, at the end of March, high-quality products of Yunnan Honghe and Dandong Blueberry Industrial Belt were introduced through quick selection. Within 10 days of launching, the order volume of blueberry category increased by 41% compared with that before launching.
Cheng Yixiao also said that in this 618 promotion, Fasthand Mall will also launch more marketing games to meet the needs of users for shopping and merchants for orders. In the future, we hope that the pan shelf field and content field will be further integrated organically, become a sustainable driving force for e-commerce business growth, help more merchants to do a better job in global business more efficiently, and activate more business opportunities.
An analyst from a securities firm who did not want to be named told the Huaxia Times that under the scenes of pan shelf and short video e-commerce, driven by the expansion of supply side and the growth of demand side purchase users, the GMV of fast e-commerce still has room for growth. Of course, the increase in sales of pan shelf standard products has a small impact on commission rate.
In addition, the head anchor and the fast hand often have friction. In the live broadcast on April 20, Simba, the anchor of Simba, scolded the fast hand in the live broadcast room because the live broadcast effect was not ideal, and pointed out that the fast hand indulged the emotional anchor, and soon Simba's fast hand account was banned because of improper speech. Until May 19, Xinxuan officially issued an apology statement.
Although advertising and e-commerce revenues are rising, the revenue of fast hand live broadcasting business will decrease by 8.0% from 9.3 billion yuan in the same period of 2023 to 8.6 billion yuan in Q1 of 2024. Fast hand explained that "it is because we continue to strive to further establish a long-term sustainable live broadcasting ecosystem."
Quickly "copy the bottom" again Quickly
After the release of Q1 financial report in 2024, Fasthand immediately announced the launch of a new round of stock repurchase plan. The announcement shows that the fast hand plan will begin to buy back shares of no more than HK $16 billion in the next three years after the 2024 general meeting of shareholders.
Jin Bing, chief financial officer of Fasthand Technology, said that under the current market environment, this new repurchase plan also demonstrated confidence in the company's value and determination to repay shareholders. "When making the plan, we considered the company's cash flow, profit market expectations for the next three years, cash reserves and other conditions to make a comprehensive judgment."
On May 22, 2023, Fasthand announced that it would buy back the company's shares in the open market from time to time from the date of the announcement to the end of the 2024 annual general meeting of shareholders, with a total amount of no more than 4 billion Hong Kong dollars.
In December of the same year, Fasthand announced an automatic share repurchase plan with a total amount of no more than HK $2.5 billion, which is part of the HK $4 billion repurchase plan. As one of the first companies to land in the Guidance on Automatic Share Repurchase Plan on behalf of Listed Issuers on the Stock Exchange of Hong Kong, Fast Retake can implement repurchase actions within the restricted period specified by the Stock Exchange.
Up to now, Fasthand has used approximately HK $3.09 billion of repurchases, and repurchased about 61.74 million shares, accounting for about 1.4% of the total share capital. Jin Bing said that as for the actual implementation of the new plan, we will take into account the capital market environment and comprehensive consideration. The company will reasonably arrange the pace and intensity of share buybacks to continuously improve shareholder returns.
Shen Meng, executive director of Xiangsong Capital, analyzed in an interview with the Huaxia Times that the buyback was carried out under a stable fast track performance, mainly because the company believed that the stock price was undervalued by the market, and the buyback was more conducive to increasing shareholder returns. He also analyzed that Hong Kong shares had been in an overall downward trend last year, which was not conducive to the financing or valuation of listed companies, so repurchase concentration was likely to occur.
By the time of press release on May 23, the stock price of Fast Trade had risen by 2.58%.
Editor in charge: Huang Xingli Editor in chief: Han Feng
