Investment Rating - The report does not specify an investment rating for the company [5] Core Insights - The company reported a significant increase in net profit, with a year-on-year growth of 2.3 times to 370 million yuan, and an adjusted net profit margin improvement of 8 percentage points to 13.7% [2][3] - Total revenue for 2023 reached 2.7 billion yuan, slightly below market expectations by 3%, with a year-on-year increase of 29% [3] - The overall number of paying users increased by 63% year-on-year to 9.11 million, with a payment rate of 3.7% [4] - The company is focusing on productivity and globalization strategies, enhancing AI-driven product capabilities and expanding its overseas user base [4] Revenue and Profitability - The company's total revenue for 2023 was 2.7 billion yuan, with the imaging and design products segment growing by 53% year-on-year [3] - Adjusted net profit for the year was 370 million yuan, compared to 110 million yuan in 2022, reflecting a 2.3 times increase [3] - The adjusted net profit margin improved to 13.7%, benefiting from steady revenue growth and enhanced operational efficiency [3][13] User Growth and Monetization - The company's overall monthly active users (MAU) reached 250 million, a year-on-year increase of 2.6% [3] - The productivity segment's MAU grew by 74% year-on-year to 17.66 million, while the lifestyle segment's MAU slightly decreased by 0.5% [3] - The payment rate for the productivity segment is higher than that of the lifestyle segment, indicating strong monetization potential [4] Strategic Focus - The company aims to enhance its AI capabilities and develop AI-native workflow products, with plans to acquire resources to strengthen its model training data [4] - Approximately 34% of paying users are from overseas, contributing 51% of revenue from imaging and design products, indicating a strong global presence [4] - The company plans to continue shareholder returns, with a proposed annual dividend of 160 million HKD [4]

Investment Rating - The investment rating for the company is upgraded to "Buy" [1] Core Views - The report highlights strong revenue and profit growth driven by AI technology, with a significant increase in paid conversion rates [1][2] - The company achieved a revenue of 2.7 billion HKD in 2023, representing a year-on-year growth of 29.3% [1] - The adjusted net profit reached 368 million HKD, a remarkable increase of 233.2% year-on-year, with an adjusted net profit margin of 13.7% [1][3] Financial Performance Summary - In 2023, the company recorded a revenue of 2,695.7 million HKD, with a gross profit of 1,655.9 million HKD, resulting in a gross margin of 61% [3][4] - The company expects revenues for 2024, 2025, and 2026 to be 3.73 billion HKD, 4.66 billion HKD, and 5.60 billion HKD, respectively, with growth rates of 39%, 25%, and 20% [2][3] - The non-IFRS adjusted net profit for 2024, 2025, and 2026 is projected to be 564.9 million HKD, 739.3 million HKD, and 928.0 million HKD, respectively [2][3] User Growth and Market Expansion - The company reported a monthly active user count of 250 million by the end of 2023, reflecting a year-on-year growth of 2.6% [1] - The paid subscription user base reached over 9.11 million, marking a historical high with a year-on-year increase of 62.3% [1][2] - The company has successfully expanded its image-related products to 195 countries and regions, with flagship applications ranking first in various app store charts [1][2] AI Integration and Business Model - AI technology has been widely applied in the company's core business, significantly enhancing user engagement and operational efficiency [1] - The revenue from the image and design products based on a subscription model reached 1.33 billion HKD in 2023, up 52.8% year-on-year [1][2] - The company is actively building a product ecosystem around its AI model, MiracleVision, which is integrated across all its products [1][4]

2024 年 03 月 16 日 公司研究 评级：买入 (维持 ) 研究所： [Table_Title] 收入利润增长亮眼， 持续助力“生产力和全 AI 证券分析师： 陈梦竹 S0350521090003 chenmz@ghzq.com.cn 证券分析师： 张娟娟 S0350523110004 球化”战略布局 zhangjj02@ghzq.com.cn 联系人 ： 罗婉琦 S0350122040042 ——美图公司（ ） 年财报点评 luowq@ghzq.com.cn 1357.HK 2023 最近一年走势 事件 : 2024年3月15日公司公告发布2023年度财报，2023全年实现营收27 亿元（YoY+29.3%），毛利润16.6亿元（YoY+39.5%），毛利率61.4% （YoY+4.5pct），净利润 3.66 亿元，经调整归母净利润 3.68 亿元 （YoY+233.2%）。 投资要点 :  整体业绩表现：公司2023年营收利润表现亮眼，实现经调整归母净 相对恒生指数表现 2024/03/15 利润同比增长233.2%至3.7亿元，落在前期业绩预告指引上限，真 表现 1M 3M 12M 实反映公 ...

证券研究报告 公 2024年03月16日 司 报 告 美图公司(01357) 行 业： 计算机/软件开发 │ 港 投资评级： 买入（维持） 股 当前价格： 3.15港元 AI 驱动收入及利润高速增长 - 公 目标价格： 4.90港元 司 事件：2024年3月15日，公司发布2023年财报，2023年实现营收26.96 年 基本数据 报 亿元（YoY+29.3%）,毛利润 16.6 亿元（YoY+39.5%）,毛利率为 61.4% 点 总股本/流通股本(百万股) 4,477.76/4,477.76 （YoY+4.5pct）,净利润3.7亿元（YoY+1839.6%），经调整归母净利润3.7 评 流通市值(百万港元) 14,104.96 亿元（YoY+233.2%）。 每股净资产(元) 0.98  AI全面赋能业务，驱动付费用户高速增长。2023年公司全面加码AI， 资产负债率(%) 25.78 每天处理的数亿份图片和视频中，约83%的内容处理是基于AI的，也为公 一年内最高/最低(港元) 4.19/1.74 司吸引更多的用户。截至2023 年年底，美图月活用户数 2.49亿，同比增 长2.6%；付费订阅用户数 ...

Financial Performance - Adjusted net profit attributable to parent company equity holders reached approximately RMB 370 million, a year-on-year increase of 233.2%[3] - Total revenue increased by 29.3% year-on-year to approximately RMB 2.7 billion[3] - Adjusted net profit attributable to equity holders of the parent company reached RMB 368.3 million, a year-on-year increase of 233.2%[8] - Total revenue for 2023 was RMB 2,695.7 million, up 29.3% year-on-year[8] - Gross profit for 2023 was RMB 1,655.9 million, compared to RMB 1,187.3 million in 2022[12] - Net profit for the year was RMB 366.4 million, compared to RMB 18.9 million in 2022[12] - Total revenue for the fiscal year ending December 31, 2023, increased by 29.3% to approximately RMB 2,695.7 million, compared to RMB 2,085.3 million in 2022[13] - Revenue increased to RMB 2,695,738 thousand in 2023, up 29.3% from RMB 2,085,329 thousand in 2022[63] - Gross profit rose to RMB 1,655,876 thousand in 2023, a 39.5% increase from RMB 1,187,272 thousand in 2022[63] - Net profit attributable to owners of the parent company surged to RMB 378,293 thousand in 2023, compared to RMB 94,142 thousand in 2022[63] - Total revenue for 2023 reached RMB 2,695,738 thousand, a 29.3% increase from RMB 2,085,329 thousand in 2022[75] User Growth and Engagement - Monthly active users (MAU) reached approximately 250 million, a year-on-year increase of 2.6%[3] - Paid subscription users increased by 62.3% year-on-year to 9.11 million[3] - MAU for productivity applications increased by 74.3% year-on-year to 17.66 million[6] - The company's app had over 9.11 million paid subscribers by the end of 2023, with a paid penetration rate of 3.7%, a 62.3% increase from 2022[15] AI and Technology - Approximately 83% of the billions of images and videos processed daily by users utilize AI features[3] - The company plans to launch more generative AI features for image and video scenarios in 2024[3] - Strategic collaboration with Zcool to enhance the market influence of visual designers and build an ecosystem around generative AI[3] - Approximately 83% of content processed daily by users is powered by AI[8] - The AI-generated product images feature in Meitu Design Studio has generated over 130 million AI product images by the end of February 2024[16] - R&D expenses increased to RMB 635.5 million in 2023 from RMB 586.4 million in 2022[12] - R&D expenses increased by 8.4% year-on-year to approximately RMB 635.5 million in 2023, primarily due to increased investment in AI-related technologies[25] - Research and development expenses increased to RMB 635,484 thousand in 2023, up 8.4% from RMB 586,365 thousand in 2022[63] Product and Service Revenue - Revenue from imaging and design products increased by 52.8% year-on-year to RMB 1.33 billion[4] - Revenue from Imaging and Design Products grew by 52.8% to RMB 1,327.4 million, accounting for 49.2% of total revenue[14][15] - Revenue from image and design products outside mainland China accounted for over 50% of the total revenue in 2023[10] - Revenue from Imaging and Design Products grew significantly to RMB 1,327,384 thousand in 2023, up 52.8% from RMB 868,763 thousand in 2022[75] - Revenue from Beauty Solutions increased by 29.1% to RMB 569.2 million, driven by growth in cosmetics supply chain management services[19] - Beauty Solutions revenue rose to RMB 569,158 thousand in 2023, a 29.1% increase from RMB 441,007 thousand in 2022, driven by sales of cosmetics and smart hardware products totaling RMB 544,002 thousand[76] - Advertising revenue increased by 20.5% year-on-year to approximately RMB 758.8 million in 2023, compared to RMB 629.9 million in 2022[21] - Advertising revenue increased to RMB 758,790 thousand in 2023, a 20.5% rise from RMB 629,902 thousand in 2022[75] Acquisitions and Investments - Meitu acquired Zcool Network Technology Limited, which has over 17 million registered users and operates China's largest copyright image and video trading platform[10] - The company acquired Zcool in February 2024 to enhance its imaging and design ecosystem[16] - Meitu Investment agreed to acquire Zcool Group for a total consideration of $39.64 million (approximately HKD 309.91 million), including 119,158,806 ordinary shares and various series of preferred shares[61] - As part of the Zcool acquisition, all outstanding options under the Zcool ESOP plan will be canceled, with a total settlement of $2.14 million (approximately HKD 16.75 million) to be paid to option holders[62] - Upon completion of the Zcool acquisition, Zcool will become an indirect wholly-owned subsidiary of the company, and its financial performance will be consolidated into the group's financial statements[62] - The company agreed to acquire Zcool Network Technology Limited for USD 39.64 million (approximately RMB 281,410 thousand), with USD 17.784 million paid in shares and the remainder in cash[110] - The company completed the acquisition of Ruicheng Tianhe, making it a wholly-owned subsidiary, following the triggering of a buyback clause due to the failure to meet listing requirements[54][55] - The company sold approximately 20% of its stake in Dajie Net for $1.00, reducing its ownership from 58.98% to 38.98% and no longer consolidating Dajie Net's financials[56] - Pixocial completed a Series A equity financing round totaling $22 million, with investors including Eight Roads, FutureX A7, FutureX ICT, and the company itself subscribing to 19,734,483 Series A preferred shares[58] - Post-financing, the company's ownership in Pixocial decreased from 100% to approximately 80.62% on a fully diluted basis[59] - Pixocial adopted an equity incentive plan (Pixocial Option Plan) reserving 7,642,626 ordinary shares for employees, directors, and consultants, with 1,910,657 options granted to key executives[59] - The company sold 20% of its stake in subsidiary Dajie Net Investment Holdings Ltd. for $1 (approximately RMB 7), reducing its ownership from 58.98% to 38.98% and losing control over Dajie Net[112] - Dajie Net's net liabilities increased to RMB 111,340,000 due to debt forgiveness by the company prior to the sale, resulting in a dilution of the company's interest[112] Costs and Expenses - Operating costs increased by 15.8% year-on-year to approximately RMB 1,039.9 million in 2023, driven by higher cloud computing fees and expanded cosmetic supply chain services[23] - Sales and marketing expenses increased by 6.2% year-on-year to approximately RMB 428.2 million in 2023, driven by overseas expansion of the image subscription business[26] - Administrative expenses increased by 10.7% year-on-year to approximately RMB 300.9 million in 2023, mainly due to higher employee costs and professional service fees[27] - Employee benefits expenses remained stable at RMB 909,516 thousand in 2023, slightly down from RMB 911,949 thousand in 2022[78] - Inventory consumption and cost of sales increased to RMB 513,059 thousand in 2023, up 27.6% from RMB 402,058 thousand in 2022[78] - Income tax expense decreased to RMB 71,667 thousand in 2023, down 54.2% from RMB 156,339 thousand in 2022[79] Assets and Liabilities - Total assets grew to RMB 5,767,186 thousand in 2023, up 15.2% from RMB 5,004,348 thousand in 2022[65] - Total liabilities rose to RMB 1,653,486 thousand in 2023, a 27.7% increase from RMB 1,294,834 thousand in 2022[66] - Intangible assets grew to RMB 775,754 thousand in 2023, a 17.6% increase from RMB 659,841 thousand in 2022[65] - Contract liabilities increased to RMB 423,585 thousand in 2023, up 72.7% from RMB 245,243 thousand in 2022[66] - Total assets increased to RMB 1,404,424,000 as of December 31, 2023, up from RMB 1,195,064,000 in 2022, driven by acquisitions and fair value changes[89] - Fair value changes of financial assets resulted in a loss of RMB 73,531,000 in 2023, compared to a gain of RMB 519,821,000 in 2022[90] - Trade receivables increased to RMB 406,520,000 in 2023 from RMB 364,503,000 in 2022, with 94% of receivables aged within 6 months[92][93] - Cash and cash equivalents decreased to RMB 640,629,000 in 2023 from RMB 946,602,000 in 2022, primarily due to reduced bank deposits[94] - Restricted cash remained stable at RMB 300,000 in both 2023 and 2022, held as collateral for operational payments[95] - The company's bank borrowings increased to RMB 149.8 million with an annualized interest rate of 3.77% as of December 31, 2023, compared to RMB 100 million with a rate of 3.68% in 2022[49] - The company's asset-to-liability ratio slightly increased to 0.36% as of December 31, 2023, from 0.30% in 2022[49] - The company holds approximately 31,000 units of Ethereum and 940.4970 units of Bitcoin, with a fair value of $71.23 million and $39.91 million, respectively, as of December 31, 2023[51] - The company owns a 23.81% stake in Shenzhen Hujia Technology Co., Ltd., with a registered capital of RMB 1.4 million[52] - The company's non-current assets in China as of December 31, 2023, amounted to RMB 686,934,000, a decrease from RMB 766,420,000 in 2022[74] - Non-current assets in other countries or regions as of December 31, 2023, were RMB 648,706,000, up from RMB 368,173,000 in 2022[74] Dividends and Shareholder Information - The company proposed a final dividend of HKD 0.036 per share for 2023, totaling approximately HKD 161.2 million[46] - The company's dividend payout ratio for 2023 was approximately 40.2% based on adjusted net profit attributable to equity holders of the parent company[46] - The company declared a final dividend of RMB 81,395 thousand for the year ended December 31, 2023, and proposed a final dividend of RMB 146,256.3 thousand for the same period, pending shareholder approval[102] - The company's annual general meeting is scheduled for June 5, 2024, with a notice to be issued and distributed to shareholders in accordance with listing rules[119] - The company will suspend share transfer registration from May 30 to June 5, 2024, to determine the list of shareholders entitled to attend and vote at the annual general meeting[119] - The company will suspend share transfer registration from June 12 to June 14, 2024, to determine shareholders eligible to receive the final dividend, subject to approval at the annual general meeting[120] - The company's annual results announcement and annual report for the year ended December 31, 2023, will be published on the Hong Kong Stock Exchange and company websites and distributed to shareholders[121] Corporate Governance and Leadership - Cai Wensheng resigned as executive director and chairman on June 1, 2023, to focus on personal business commitments, with the company expressing gratitude for his contributions[122] - The company's executive directors include Mr. Wu Zeyuan (also known as Mr. Wu Xinhong)[123] - Non-executive directors include Dr. Guo Yihong, Dr. Kai-Fu Lee, Mr. Chen Jiarong, and Mr. Hong Yupeng[123] - Independent non-executive directors include Mr. Zhou Hao, Mr. Lai Xiaoling, and Ms. Kui Yingchun[123] - The announcement contains forward-looking statements regarding the company's business outlook, financial performance estimates, and development strategies[123] - These forward-looking statements are based on current information and assumptions, which may involve subjective factors or factors beyond the company's control[123] - The forward-looking statements involve risks and uncertainties, and shareholders and potential investors should not overly rely on them[123] Other Financial Information - Other income decreased by 72.3% year-on-year to approximately RMB 40.4 million in 2023, down from RMB 145.7 million in 2022, due to the sale of the IMS business[22] - Impairment losses on cryptocurrencies were reversed by approximately RMB 270 million in 2023, with RMB 170 million for Bitcoin and RMB 94.8 million for Ethereum[28] - Intangible asset impairment losses amounted to approximately RMB 155.3 million in 2023, related to goodwill impairment in the beauty solutions segment[29] - Total cash and cash equivalents decreased to RMB 640,629 thousand in 2023 from RMB 946,602 thousand in 2022[38] - Adjusted net profit attributable to equity holders of the parent company increased to RMB 368,297 thousand in 2023 from RMB 110,543 thousand in 2022[36] - Capital expenditures for property and equipment decreased to RMB 47,363 thousand in 2023 from RMB 65,231 thousand in 2022[42] - Total investments in financial assets measured at fair value through profit or loss increased to RMB 344,942 thousand in 2023 from RMB 98,321 thousand in 2022[43] - The company's cash and other liquid financial resources remained stable at RMB 1,404,438 thousand in 2023 compared to RMB 1,390,031 thousand in 2022[38] - The company did not hedge any foreign currency fluctuations during 2023 and 2022[44] - The company's restricted deposits for operational expenses remained unchanged at RMB 300,000 thousand in 2023[45] - The company's share premium account balance was approximately RMB 7,093.8 million as of December 31, 2023[47] - The company's statutory share capital consists of 6,000,000,000 ordinary shares with a par value of USD 0.00001 each as of December 31, 2023[96] - Trade and other payables totaled RMB 735,209 thousand as of December 31, 2023, compared to RMB 734,098 thousand in 2022, with a significant increase in platform payments for agency services to RMB 244,876 thousand from RMB 80,984 thousand[100] - Trade payables aged within 6 months amounted to RMB 98,990 thousand as of December 31, 2023, slightly up from RMB 96,170 thousand in 2022[101] - Pixocial Holdings Ltd issued 17,043,417 Series A redeemable convertible preferred shares at USD 1.1148 per share, totaling USD 19 million (approximately RMB 134,571 thousand) on December 1, 2023[103] - Series A preferred shareholders are entitled to a special dividend if Pixocial meets the net profit requirements specified in the shareholder agreement[104] - Series A preferred shares will automatically convert into ordinary shares upon a qualified IPO or as approved by the Pixocial board, with a conversion price based on the then-effective Series A conversion price[105] - Series A preferred shareholders can request redemption if a qualified IPO or sale transaction is not completed within four years of the initial closing date, or under other specified conditions[106] - In the event of liquidation, Series A preferred shareholders have priority over ordinary shareholders to receive distributions equal to 100% of the original issue price plus 8% annual simple interest[107] - The sale of Dajie Net resulted in a net cash outflow of RMB 5,486 thousand after deducting the cash and cash equivalents of Dajie Net[111] - The company fully utilized the net proceeds of approximately HKD 4,988 million from its 2016 IPO, with no changes to the intended use of funds as disclosed in the prospectus[118]

港股公司报告 | 公司点评 美图公司（01357） 证券研究报告 2024年03月10日 投资评级 业绩前瞻：AI浪潮下主营稳健增长，卡位C端应用持续验证产品力 行业 资讯科技业/软件服务 6个月评级 买入（维持评级） 事件：美图公司发布业绩盈利预喜公告，预计 2023 年 12 月 31 日止年度 当前价格 3.05港元 根据非国际财务报告准则录得约人民币3.30~3.70亿元归母经调整净利润， 目标价格 港元 同比2022年12月31日止年度约人民币1.11亿元增长约200%至230%。 基本数据 港股总股本(百万股) 4,477.76 23 年业绩增长核心贡献主要系：1）生产力相关影像产品需求的超预期增 长提升用户付费渗透率；2）全球化策略下中国内地以外订阅用户的稳步 港股总市值(百万港元) 13,657.18 增长。此外我们前期也多次强调美图公司在商业模式成功切换、创始人重 每股净资产(港元) 0.98 新出任董事长后，策略层面全面聚焦主业已兑现强劲的主业收入增长，同 资产负债率(%) 25.78 时公司在C端的竞争格局优势或被低估，依托于长期积累的经验和用户有 一 年内最高/最低(港元) 4.19/ ...

Financial Performance - For the six months ended June 30, 2023, the adjusted net profit attributable to equity holders of the parent company was RMB 151.3 million, representing a year-on-year increase of 320.4%[6]. - Total revenue for the same period was RMB 1.26 billion, an increase of 29.8% compared to RMB 971.2 million in 2022[9]. - The gross profit for the first half of 2023 was RMB 754.0 million, with a gross margin of 59.8%, up from 51.8% in the previous year[9]. - The company reported a net profit of RMB 209.5 million for the period, a significant turnaround from a net loss of RMB 281.6 million in the previous year[9]. - Adjusted net profit attributable to equity holders of the parent for the six months ended June 30, 2023, was RMB 151.3 million, compared to RMB 36 million for the same period in 2022[40]. - The total comprehensive income for the six months ended June 30, 2023, was RMB 269,741 thousand, compared to a total comprehensive loss of RMB 223,619 thousand for the same period in 2022, indicating a positive performance shift[96]. - The company reported a profit of RMB 227,627 thousand for the six months ended June 30, 2023, compared to a loss of RMB 266,245 thousand for the same period in 2022, indicating a significant turnaround[96]. Revenue Breakdown - Revenue from image and design products reached RMB 602.2 million, marking a significant growth of 62.2% year-on-year[9]. - Revenue from advertising increased by 28.2% to RMB 349.2 million, compared to RMB 272.5 million in the same period last year[9]. - Revenue from beauty solutions increased by 31.1% to RMB 286,444,000, representing 22.7% of total revenue[24]. - Revenue from imaging and design products grew by 62.2% to RMB 602,190,000, accounting for 47.8% of total revenue[24]. - The total number of paid subscription users for all imaging and design products reached approximately 7.2 million, with a subscription rate of about 2.9%, up from 2.0% a year ago[18]. User Engagement - Monthly active users totaled 247.1 million as of June 30, 2023, reflecting a growth of 1.7% from 242.9 million at the end of 2022[10]. - The number of monthly active users for the Beauty Camera product increased by 6.3% to 52.1 million compared to 49.0 million at the end of 2022[10]. - The number of monthly active users in mainland China grew by 6.3% to 173.4 million, while overseas users decreased by 7.6% to 73.7 million[10]. Expenses and Costs - Research and development expenses increased to RMB 294,264,000, up from RMB 265,487,000 in the previous year[21]. - Operating costs increased to RMB 506.9 million for the six months ended June 30, 2023, up 8.4% from RMB 467.8 million for the same period in 2022, primarily due to increased user demand for AIGC-related services[31]. - Sales and marketing expenses increased to RMB 221.6 million for the six months ended June 30, 2023, up 21.3% from RMB 182.7 million for the same period in 2022[34]. - Administrative expenses were RMB 144.1 million for the six months ended June 30, 2023, a 5.7% increase from RMB 136.3 million in the same period last year[35]. Cash Flow and Liquidity - As of June 30, 2023, cash and cash equivalents amounted to RMB 664,573 thousand, a decrease of 29.8% from RMB 946,602 thousand as of December 31, 2022[44]. - The company has maintained a healthy liquidity position and closely monitors its cash flow to meet funding needs[45]. - The net cash used in investing activities was RMB 300,172 thousand for the six months ended June 30, 2023, contrasting with a net cash generated of RMB 171,629 thousand in the same period of 2022, highlighting increased investment expenditures[98]. - The company aims to maintain sufficient cash and cash equivalents to meet its liquidity needs, reflecting a proactive approach to managing cash flow risks[108]. Investments and Acquisitions - The company plans to seek strategic investment opportunities to enhance synergies in technology development, product research, and market expansion[55]. - Meitu's acquisition of the remaining 19.81% stake in Ruishengtianhe is set to occur by June 30, 2023, with a total cash consideration equivalent to the purchase price[56]. - The company has entered into a share sale agreement to sell 90,276,751 shares, representing approximately 20% of Dajie Net's issued share capital, for a consideration of $1.00[81]. - The company acquired non-controlling interests in subsidiaries, resulting in a payment of RMB 56,245 thousand during the first half of 2023[99]. Shareholder Information - As of June 30, 2023, Meitu's issued shares totaled 4,446,535,488, with significant shareholdings including 12.92% by Mr. Wu Zeyuan and 11.64% by Mr. Chen Jiarong[59]. - Shareholder Cai Wensheng holds 25.34% of the company's shares, while Lion Trust (Singapore) Limited holds 31.45% as a trustee[62]. - The employee stock option plan allows for a total of 116,959,070 shares, with 14,013,342 shares of unexercised options granted as of June 30, 2023[64]. Financial Position - Total assets as of June 30, 2023, amounted to RMB 5,273,906 thousand, an increase from RMB 5,004,348 thousand at the end of 2022[93]. - The total equity attributable to equity holders of the parent company increased to RMB 3,914,456 thousand from RMB 3,709,514 thousand at the end of 2022[93]. - The company’s total liabilities increased to RMB 1,359,450 thousand from RMB 1,294,834 thousand at the end of 2022[93]. - The company reported a foreign currency translation gain of RMB 44,511 thousand during the period, contributing positively to the overall comprehensive income[95]. Regulatory and Compliance - The company has adhered to the corporate governance code, except for the separation of the roles of Chairman and CEO, which the board believes is appropriate under current circumstances[75]. - The latest amendments to the Foreign Investment Telecommunications Regulations maintain that foreign investors cannot hold more than 50% equity in companies providing value-added telecommunications services in China[78]. - The company is consulting with legal advisors to determine the most feasible method for holding stakes in Meitu Network and its subsidiaries, amidst regulatory uncertainties in China[79]. Strategic Outlook - The company is actively seeking to establish effective control and economic benefits from its subsidiaries through contractual arrangements, despite foreign investment restrictions in China[79]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[178]. - The company has revised its performance guidance for the upcoming quarters, reflecting a positive outlook based on current user engagement metrics[178].

Financial Performance - For the six months ended June 30, 2023, the adjusted net profit attributable to equity holders of the parent company was RMB 151.3 million, representing a year-on-year increase of 320.4%[3] - The total revenue for the same period was RMB 1.261 billion, a year-on-year increase of 29.8%[5] - Revenue for the six months ended June 30, 2023, reached RMB 1.26 billion, a 29.8% increase from RMB 971.88 million for the same period in 2022[16] - The net profit for the six months ended June 30, 2023, significantly increased to RMB 209.47 million, compared to a net loss of RMB 281.61 million for the same period in 2022, driven by strong growth in image products enabled by generative AI technology and a reversal of impairment losses due to rising cryptocurrency market prices[32] - Adjusted net profit attributable to equity holders for the six months ended June 30, 2023, was RMB 151.30 million, up from RMB 36 million for the same period in 2022, primarily due to revenue growth in core businesses such as imaging and design products[32] - Gross profit for the six months ended June 30, 2023, was RMB 754.02 million, compared to RMB 503.39 million for the same period in 2022[14] - Gross profit for the same period was RMB 754,022 thousand, up from RMB 503,385 thousand, indicating a significant improvement in profitability[53] - The basic earnings per share for the period was RMB 0.05, a recovery from a loss per share of RMB 0.06 in the same period last year[53] Revenue Breakdown - Revenue from image and design products reached RMB 602.2 million, up 62.2% compared to the previous year[5] - Revenue from beauty solutions increased by 31.1% year-on-year, reaching RMB 286.4 million[5] - The beauty industry solutions segment reported revenue of RMB 286.44 million, accounting for 22.7% of total revenue[16] - The advertising segment generated revenue of RMB 349.16 million, accounting for 27.7% of total revenue[16] - Revenue from beauty industry solutions increased by 31.1% year-on-year to RMB 286.4 million for the six months ended June 30, 2023, driven primarily by growth in cosmetics supply chain services[19] - Advertising revenue grew by 28.2% year-on-year to RMB 349.2 million for the six months ended June 30, 2023, attributed to increased contributions from programmatic advertising[20] User Engagement and Product Development - Monthly active users totaled 247.1 million, reflecting a growth of 1.7% from the end of 2022[5] - The company launched the visual large model MiracleVision on June 19, 2023, which will serve as a foundation for future AIGC functionalities[9] - New productivity tools, such as "Kaitai," were introduced, showing promising early performance in the market[3] - The company has been continuously releasing new AIGC features, which have gained significant traction on social media platforms[8] - The company is focusing on high-quality AIGC images in verticals such as Asian portraits and product design, anticipating high growth in user demand[9] - The company aims to expand its product offerings targeting specific productivity scenarios, leveraging its understanding of user behavior and aesthetic trends[11] Cost and Expenses - Operating costs increased by 8.4% to RMB 506.9 million for the six months ended June 30, 2023, mainly due to higher user demand for AIGC-related services[22] - Research and development expenses rose by 10.8% to RMB 294.3 million for the six months ended June 30, 2023, primarily due to increased employee costs[24] - Sales and marketing expenses increased by 21.3% to RMB 221.6 million for the six months ended June 30, 2023, driven by business expansion in imaging and design products[25] Financial Position and Investments - Cash and cash equivalents as of June 30, 2023, totaled RMB 664.57 million, down from RMB 946.60 million as of December 31, 2022[35] - Total current financial resources, including cash and short-term investments, amounted to RMB 1.42 billion as of June 30, 2023, compared to RMB 1.39 billion at the end of 2022[35] - The company maintained a low debt-to-equity ratio of 0.50% as of June 30, 2023, compared to 0.30% at the end of 2022, indicating low reliance on borrowing for operations[43] - The company made minor investments in technologies or businesses deemed beneficial, with total investments amounting to RMB 35.32 million as of June 30, 2023[40] Cryptocurrency and Impairment - The company recorded a reversal of impairment losses on cryptocurrency amounting to RMB 185.56 million for the six months ended June 30, 2023, compared to an impairment loss of RMB 305.46 million for the same period in 2022[33] - The group continues to hold approximately 31,000 units of Ethereum and about 940.4970 units of Bitcoin, with fair values of approximately $57.41 million and $28.28 million, respectively, as of June 30, 2023[45] - The group’s cryptocurrency holdings included RMB 365,020,000 in Ethereum and RMB 204,322,000 in Bitcoin as of June 30, 2023[82] Corporate Governance and Strategic Outlook - The company has maintained compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO, which the board deems appropriate under current circumstances[89] - The board of directors includes experienced members, which may enhance governance and strategic decision-making[96] - The company is focused on developing new business plans and strategies to improve financial performance[96] - The company is actively monitoring market trends to adapt its strategies accordingly[96] - The management emphasizes the need for careful evaluation of business strategies in light of market uncertainties[96] Shareholder Information - The group declared a final dividend of RMB 81,395,000 for the six months ended June 30, 2023, compared to no dividend for the same period in 2022[76] - The company did not recommend an interim dividend for the six months ended June 30, 2023[92] - The anticipated gain from the sale of Dajie Net shares is expected to be approximately RMB 70,000,000, which will be recognized in the consolidated income statement for the year ending December 31, 2023[88]

年 度 報 告 eitu 股份代號 : 1357 〔於開曼群島註冊成立的有限公司‧並以「美國之家」名稱於香港經營業務〕 meitu美图 | --- | --- | --- | |-------|----------------------|-------| | | | | | | | | | | | | | | | | | | 目錄 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 公司資料 | 2 | | | 2022 年摘要 | 4 | | | 主要財務數據 | 6 | | | | | | | 主要運營數據 | 7 | | | | | | | 主席報告 | 8 | | | | | | | 管理層討論與分析 | 12 | | | | | | | 董事及高級管理層 | 26 | | | 董事會報告 | 33 | | | 企業管治報告 | 79 | | | 環境、社會及管治報告 | 99 | | | 獨立核數師報告 | 150 | | | 合併收入表 | 156 | | | 合併綜合收益表 | 157 | | | 合併資產負債表 | ...

Financial Performance - The company achieved its first annual profit since its IPO, with a net profit attributable to shareholders of RMB 94.1 million, compared to a net loss of RMB 44.5 million in 2021[4]. - Revenue increased by 25.2% year-on-year to RMB 2.085 billion, with VIP subscription business being the largest revenue source at RMB 782.2 million, a growth of 57.4%[6]. - The adjusted net profit attributable to shareholders was RMB 110.5 million, representing a year-on-year increase of 29.9%[6]. - Total revenue for the year ended December 31, 2022, increased to RMB 2.085 billion, a 25.2% increase from RMB 1.667 billion for the year ended December 31, 2021, primarily driven by robust growth in VIP subscription and SaaS-related businesses[20]. - The company reported a net profit of RMB 18.891 million for the year, a significant recovery from a loss of RMB 77.430 million in the previous year[19]. - The company reported a net profit before tax of RMB 175.230 million for the year ended December 31, 2022, compared to a loss of RMB 10.935 million in 2021[77]. User Engagement and Growth - Monthly active users (MAUs) grew by 5.3% year-on-year, reaching 242.9 million as of December 2022[7]. - The number of monthly active users for the flagship app Meitu Xiu Xiu increased by 13.0% to 129.6 million[7]. - As of December 2022, Meitu Xiuxiu held approximately 53% market share in the mobile image editing market, up from 47% in 2021, with 242.9 million monthly active users showing a year-on-year growth rate of 5.3%[9][11]. Revenue Streams - The VIP subscription business has become the largest revenue source for the company, with high gross margins expected to continue growing, driven by an increase in paid subscribers and average revenue per paid user[10]. - SaaS revenue grew significantly by 1,093.2% to RMB 462.9 million, driven by the acquisition of a business providing ERP and supply chain management solutions to over 11,000 cosmetics stores in China[6]. - VIP subscription revenue grew by 57.4% to RMB 782.165 million, accounting for 37.5% of total revenue, with over 5.6 million VIP users and a paid penetration rate of approximately 2.3%[22]. - SaaS and related business revenue surged by 1,093.2% to RMB 462.907 million, largely due to the acquisition of Meidede, which provides ERP SaaS solutions to over 11,000 cosmetics retailers[24]. Investment and Future Plans - The company plans to continue investing in artificial intelligence and expand productivity applications to meet work-related needs, aiming to drive higher MAUs and paid penetration rates[5]. - The company aims to become the largest global provider of image and video productivity software and subscription services, focusing on digital transformation in the beauty industry through SaaS solutions[9]. - The company plans to enhance its work-related products, such as Meitu Design Studio, which has shown 60-70% higher average revenue per paid user compared to social-focused applications[12]. - The company plans to introduce more high-margin niche products to enhance profitability in the SaaS segment as customer numbers and average purchase volumes increase[19]. Financial Health and Liquidity - Cash and cash equivalents increased to RMB 946,602,000 in 2022 from RMB 738,732,000 in 2021, reflecting a growth of about 28%[40]. - Total current financial resources, including cash and short-term investments, rose to RMB 1,390,031,000, compared to RMB 1,258,191,000 in 2021, marking an increase of approximately 10%[40]. - The company maintained a healthy liquidity position, closely monitoring its cash flow and financial resources to meet ongoing funding needs[41]. - The company’s total liabilities rose to RMB 1,294,834 thousand in 2022 from RMB 1,231,512 thousand in 2021, indicating an increase in financial obligations[63]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.02 per share, with a payout ratio of approximately 70.6% based on the adjusted net profit attributable to shareholders[5]. - The board proposed a final dividend of HKD 0.02 per share, totaling approximately HKD 88,900,000 (around RMB 78,000,000), marking the first dividend since the company's IPO[46]. - The dividend payout ratio for the year was approximately 70.6% of the adjusted net profit attributable to the company's owners[46]. Operational Efficiency - Operating costs increased by 66.0% to RMB 898.1 million for the year ended December 31, 2022, compared to RMB 540.9 million in 2021[28]. - Research and development expenses rose by 7.5% to RMB 586.4 million for the year ended December 31, 2022, compared to RMB 545.5 million in 2021[30]. - Sales and marketing expenses increased by 3.1% to RMB 403.1 million for the year ended December 31, 2022, up from RMB 391.0 million in 2021[31]. Strategic Acquisitions and Investments - The company acquired approximately 20.67% equity in Meidede for a total consideration of approximately RMB 79.74 million, increasing its ownership to approximately 63.35%[58]. - The company invested approximately USD 100 million in cryptocurrencies, acquiring 31,000 units of Ethereum and 940.88523 units of Bitcoin, with a fair value of approximately USD 37.3 million and USD 15.6 million respectively as of December 31, 2022[55]. - The company plans to continue seeking strategic investment opportunities to enhance synergies in technology development, product research, and market expansion[57]. Compliance and Governance - The company confirmed compliance with the corporate governance code applicable as of December 31, 2022[102]. - The audit committee reviewed the financial statements for the year ended December 31, 2022, confirming they were prepared in accordance with applicable accounting standards[104].