(Yicai) Aug. 1 -- Chinese short video app operator Kuaishou said it expects to have turned its first profit for a six-month period in the first half of the year thanks to more users and better operating efficiency.

Kuaishou likely had a net profit of at least CNY560 million (USD78.1 million) in the six months ended June 30, compared with a loss a year earlier, the Beijing-based firm said in a statement released yesterday.

Shares of Kuaishou [HKG: 1024], the main competitor of ByteDance’s Douyin, the Chinese version of TikTok, rose 1.2 percent to end at HKD68 (USD8.72) apiece in Hong Kong today.

The company had an adjusted net profit of CNY42 million (USD5.9 million) in the first quarter, versus an adjusted net loss of CNY3.7 billion (USD516.3 million) a year earlier, after operating revenue jumped almost 20 percent to CNY25.2 billion (USD3.5 billion).

Brokerages have made optimistic predictions for Kuaishou’s second-quarter performance.

China International Capital forecast a 28 percent gain in operating revenue to CNY27.7 billion and adjusted net profit of CNY1.9 billion, while Citic Securities projects operating revenue likely climbed 26 percent to CNY27.4 billion, with an adjusted net profit of CNY1.8 billion.

Editor: Futura Costaglione