政府新闻
小红书一季度利润飙升400% 2024-10-16
China's Instagram-like Xiaohongshu sees first-quarter profit soar 400%, report says
Xiaohongshu, a Chinese social media and e-commerce platform, has reportedly had its net profit surge five-fold in the first quarter of this year after ramping up advertising from retailers targeting generation-Z female consumers.
Xiaohongshu's net profit was USD200 million in the three months ended March 31, the Financial Times newspaper reported on Oct. 13, citing two people briefed on the figures. Revenue jumped 67 percent to USD1 billion from a year earlier.
Xiaohongshu has not released a financial report, with Yicai trying to contact the Shanghai-based startup for more information but getting no reply yet.
Xiaohongshu is one of the fastest-growing social media platforms in China, with its monthly active users increasing by 20 percent to 312 million last year from the prior one. It also swung into the black with a net profit of USD500 million in 2023 on revenue soaring 85 percent to USD3.7 billion.
Advertising has always been a major part of Xiaohongshu's revenue, accounting for around 80 percent of its total income in 2022. However, that share slightly declined last year due to the firm's increasing focus on e-commerce.
Xiaohongshu has not disclosed any revenue figures related to its e-commerce business but has mentioned growth several times.
The number of users placing orders on Xiaohongshu's livestream studios has surged 9.8 times over the past year and a half, the platform's head of e-commerce operations said at an event on July 25. The number of collaborating brands jumped 5.2 times, the person added.
Xiaohongshu will support small and medium-sized businesses, Chief Marketing Officer Zhi Heng said on Sept. 13. The number of such companies operating on the platform soared 379 percent in the six months ended June 30 from a year ago, while the gross merchandise value of these firms leaped 436 percent.
However, Xiaohongshu finds competing with specialized e-commerce platforms difficult, merchants, consumers, and platform influencers told Yicai. Most small and medium-sized businesses are more concerned with the promotional value of the platform, they noted.
Xiaohongshu hopes to go public in Hong Kong, according to the Financial Times report.
There have been multiple reports of Xiaohongshu planning to go public previously, but none materialized. In August, it was reportedly planning an initial public offering, but people close to the company said that was false.
Source: Yicai Global
