Financial Performance - Adjusted net profit attributable to parent company equity holders reached approximately RMB 370 million, a year-on-year increase of 233.2%[8] - Revenue increased by 29.3% year-on-year to approximately RMB 2.7 billion[8] - Gross profit increased by 39.5% year-on-year to RMB 1.66 billion, with a gross margin of 61.4%[10] - Adjusted net profit attributable to parent company equity holders reached RMB 368.3 million, a year-on-year increase of 233.2%[17] - Total revenue for 2023 was RMB 2,695.7 million, up 29.3% year-on-year[17] - Gross profit rose to RMB 1,655.9 million in 2023 from RMB 1,187.3 million in 2022[24] - Net profit attributable to equity holders of the parent company surged to RMB 378.3 million in 2023 from RMB 94.1 million in 2022[24] - Revenue from imaging and design products grew by 52.8% to RMB 1,327.4 million in 2023, accounting for 49.2% of total revenue[27][28] - Advertising revenue increased to RMB 758.8 million in 2023, representing 28.2% of total revenue[27] - Beauty solutions revenue grew to RMB 569.2 million in 2023, maintaining a 21.1% share of total revenue[27] - Revenue from beauty solutions increased by 29.1% to RMB 569.2 million in 2023, driven by growth in cosmetics supply chain management services[31] - Advertising revenue grew by 20.5% to RMB 758.8 million in 2023, with expectations of steady growth due to a shift towards subscription models[34] - Gross profit increased by 39.5% to RMB 1,655.9 million in 2023, with gross margin rising from 56.9% to 61.4% due to higher-margin businesses[37] - Net profit surged to RMB 366.4 million in 2023, up from RMB 18.9 million in 2022, driven by strong performance in AI-driven imaging and design products[48] - Adjusted net profit attributable to equity holders of the parent company rose to RMB 368.3 million in 2023, compared to RMB 110.5 million in 2022, due to growth in AI-driven imaging and design products[49] - Meitu Network and its subsidiaries' cumulative profit reached RMB 658.0 million as of December 31, 2023[186] - Meitu Network and its subsidiaries' revenue for 2023 was RMB 1,855.9 million, a 36% increase from RMB 1,364.4 million in 2022[190] - Meitu Network and its subsidiaries' total assets as of December 31, 2023, were RMB 3,244.4 million, up 25.4% from RMB 2,587.1 million in 2022[190] - Meitu Network and its subsidiaries' revenue accounted for 68.8% of the group's annual revenue in 2023, compared to 65.4% in 2022[190] - Meitu Network and its subsidiaries' total assets represented 56.3% of the group's total assets as of December 31, 2023, up from 51.7% in 2022[190] User Metrics - Monthly active users (MAU) reached approximately 250 million, a year-on-year increase of 2.6%[8] - Paid subscription users reached 9.11 million, a year-on-year increase of 62.3%[8] - Monthly active users in productivity applications increased by 74.3% year-on-year to 17.66 million[14] - Monthly active users in Mainland China increased by 5.1% year-on-year to 171.47 million[14] - Paid subscription users reached over 9.11 million with a penetration rate of 3.7%, up 62.3% from 2022[28] AI and Technology - Over 83% of content processed by users daily is based on AI functionalities[17] - Meitu launched its self-developed generative AI model "MiracleVision" in June 2023, supporting text-to-image, image-to-image, and image-to-video functionalities[17] - Meitu made minority investments in AI chip companies, multimodal large model companies, and AI-native marketing technology companies to enhance future AI capabilities[18] - The AI product "AI Product Image" generated over 130 million images by February 2024[28] - R&D expenses increased by 8.4% to RMB 635.5 million in 2023, primarily due to higher investments in AI-related technologies[38] Revenue Breakdown - Revenue from imaging and design products increased by 52.8% year-on-year to RMB 1.33 billion[10] - Revenue from beauty solutions increased by 29.1% year-on-year to RMB 569 million[10] - Revenue from advertising increased by 20.5% year-on-year to RMB 759 million[10] - Revenue from the cross-platform application Meitu Design Studio exceeded RMB 100 million, a year-on-year increase of 229.8%[18] - Revenue from image and design products outside mainland China accounted for over 50% of the total revenue line in 2023[19] Acquisitions and Investments - Meitu acquired Zcool Network Technology Limited, which has over 17 million registered users and operates the largest copyright image and video trading platform in mainland China[19] - The company acquired Zcool in February 2024 to enhance its imaging and design ecosystem[28] - Meitu completed the acquisition of Ruichengtianhe, making it a wholly-owned subsidiary after purchasing the remaining 19.81% equity for a total cash consideration[70] - Meitu sold approximately 20% of its equity in Dajie Net for USD 1.00, reducing its stake from 58.98% to 38.98% and ceasing control over Dajie Net[71] - Meitu participated in a USD 22 million equity financing for Pixocial Holdings, subscribing to 2,691,066 Series A preferred shares for USD 3,000,000[74] - Pixocial Holdings' equity decreased from 100% to approximately 80.62% after the Pixocial closing on December 1, 2023[75] - Pixocial Holdings adopted a stock option plan reserving 7,642,626 ordinary shares for employees, directors, and consultants[75] - Stock options corresponding to 1,910,657 ordinary shares of Pixocial Holdings were granted to Mr. Wu and Mr. Song[75] - The Pixocial equity financing and related transactions constitute a deemed sale under Listing Rule 14.29[75] - The Pixocial stock option plan and related grants constitute deemed sales and connected transactions under Listing Rules[76] - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures were made in the year ending December 31, 2023[76] - No other significant events affecting the company occurred after December 31, 2023, up to the latest practicable date[76] Expenses and Costs - Sales and marketing expenses rose by 6.2% to RMB 428.2 million in 2023, driven by overseas expansion in the image subscription business[39] - Administrative expenses increased by 10.7% to RMB 300.9 million in 2023, mainly due to higher employee costs and professional service fees[40] - The company recognized a reversal of impairment loss on cryptocurrencies of approximately RMB 270 million in 2023, due to higher market prices[41] - Goodwill impairment loss of RMB 155.3 million was recorded in 2023 for cash-generating units related to beauty solutions[42] - Other income decreased to RMB 68.6 million in 2023, primarily due to reduced government subsidies and VAT refunds[44] - Other net loss was RMB 41.1 million in 2023, compared to a net gain of RMB 543.0 million in 2022, due to various factors including a decrease in fair value of long-term investments[45] - Net financing income increased by 197.3% to RMB 44.4 million in 2023, driven by higher bank interest income[46] - Income tax expenses decreased by 54.1% to RMB 71.7 million in 2023, primarily due to reduced fair value changes in long-term investments[47] Cash and Financial Position - Cash and cash equivalents stood at RMB 640.6 million as of December 31, 2023, with total cash and liquid financial resources at RMB 1,404.4 million[53] - Capital expenditures totaled RMB 52.0 million in 2023, including RMB 47.4 million for property and equipment purchases[55] - Investments in financial assets measured at fair value through profit or loss increased to RMB 328.1 million in 2023, up from RMB 84.3 million in 2022[57] - The company did not hedge any foreign currency fluctuations for the years ended December 31, 2023, and 2022[58] - The company pledged restricted deposits of RMB 300,000 for certain operating expenses as of December 31, 2023[59] - The company proposed a final dividend of HKD 0.036 per share for the year ended December 31, 2023, totaling approximately HKD 161.2 million[60] - The company's asset-liability ratio was 0.36% as of December 31, 2023, with bank borrowings of RMB 14.98 million at an annualized interest rate of 3.77%[62] - The company had 1,968 full-time employees as of December 31, 2023, compared to 2,057 in the previous year[63] - The company entered into a guarantee agreement on January 5, 2024, covering data promotion and service fees for certain subsidiaries[65] - Meitu holds approximately 23.81% equity in Hugjia Technology with a registered capital of RMB 1.4 million, recorded as a financial asset at fair value through profit or loss[67] - The fair value of Meitu's equity in Hugjia Technology was revalued at approximately RMB 698.1 million, accounting for about 12.10% of the company's total assets[67] - Meitu recorded an unrealized loss of approximately RMB 35.3 million on its equity in Hugjia Technology due to dilution effects from employee incentive shares[67] Shareholder and Equity Information - The company's net proceeds from the IPO amounted to HKD 4,988 million, fully utilized as per the prospectus[97] - The proposed final dividend for the year ended December 31, 2023, is HKD 0.036 per share, totaling approximately HKD 163.3 million[99] - The dividend payout ratio for the year ended December 31, 2023, is approximately 40.2% based on adjusted net profit attributable to equity holders[99] - The company has 4,534,776,084 issued shares as of the latest practicable date[101] - The share premium account balance after the final dividend payment will be approximately RMB 6,945.7 million (equivalent to HKD 7,657.0 million)[101] - The distributable reserves as of December 31, 2023, are USD 670,572,000 (equivalent to RMB 4,749,461,000)[103] - The company's subsidiary Pixocial Holdings issued a total of 19,734,483 Series A preferred shares, representing 7.04%, 3.52%, 2.82%, and 2.11% of the total issued and outstanding shares, for a total consideration of 0.03 per share[117] - A total of 17,843,520 stock options were granted under the pre-IPO employee stock option plan[117] - As of December 31, 2023, 12,870,000 stock options remained unexercised under the pre-IPO employee stock option plan[117] - The post-IPO stock option plan allows for the issuance of up to 422,729,455 shares, representing 9.32% of the company's issued share capital[121] - The post-IPO stock option plan will remain effective until December 15, 2026[123] - The maximum number of shares that can be issued to any eligible participant under the post-IPO stock option plan is 1% of the issued shares[124] - The exercise price for the post-IPO stock option plan cannot be lower than the highest of the closing price on the offer date, the average closing price of the five preceding business days, or the face value of the shares[126] - The post-IPO share award plan aims to align the interests of eligible participants with the company's long-term growth and profitability[127] - The maximum number of shares to be granted under the post-IPO share incentive plan is 211,364,727 shares, not exceeding 5% of the company's total issued share capital[130] - As of December 31, 2023, 147,489,337 shares were granted or agreed to be granted under the post-IPO share incentive plan[132] - The total number of shares available for grant under the post-IPO share incentive plan decreased from 90,337,128 shares (2.02% of issued share capital) on January 1, 2023, to 63,875,390 shares (1.41% of issued share capital) on December 31, 2023[132] - The issued share capital could increase from 4,477,678,830 shares to 4,612,009,194 shares if the annual limit of 3% of total issued shares is fully utilized and no options are exercised under pre-IPO or post-IPO option plans[132] - The post-IPO share incentive plan has a remaining term of approximately two years[133] - The company granted 2,550,000 reward shares to director Wu Zeyuan on April 1, 2023, with a vesting period from May 1, 2023, to April 1, 2024[134] - Employees (excluding directors and key executives) were granted 1,229,542 reward shares on October 1, 2023, with a vesting period starting October 1, 2024[134] - A total of 13,149,830 reward shares were granted to employees on April 1, 2023, with a vesting period from April 1, 2023, to April 1, 2024[134] - The company granted 5,100,000 reward shares to employees on April 1, 2023, with a vesting period from April 1, 2024, to April 1, 2025[134] - As of December 31, 2023, 11,355,495 reward shares granted to employees on April 1, 2023, remained unvested[134] - The company granted 471,601 reward shares to consultants on April 1, 2023, with a vesting period from April 1, 2024, to April 1, 2025[134] - The fair value per reward share granted to employees on October 1, 2023, was HKD 3.51[134] - The closing price per share before the grant date for employees on October 1, 2023, was HKD 3.50[134] - The company granted 24,326 reward shares to consultants on April 1, 2023, which were fully vested on the same date[134] - The closing price per share before the grant date for consultants on April 1, 2023, was HKD 2.63[134] - The total number of shares that may be issued under the pre-IPO employee share option plan and post-IPO share award plan for the year ended December 31, 2023, is 40,867,545 shares, representing approximately 0.91% of the total issued shares as of December 31, 2023[137] - EveLab Insight has reserved 20% of its shares for the share award plan, aimed at incentivizing and retaining contributors to the smart hardware business[138] - The maximum number of EveLab Insight shares that can be awarded under the share award plan without further approval is 100,000,000 shares, representing 20% of the total issued shares[144] - As of December 31, 2023, and the latest practicable date, 67,500,000 and 65,000,000 EveLab Insight shares have been awarded or agreed to be awarded, representing approximately 13.5% and 13.0% of the issued share capital of EveLab Insight Cayman, respectively[145] - The EveLab Insight share award plan has a remaining term of approximately seven years[149] - Pixocial Holdings adopted the Pixocial Share Option Plan, reserving 7,642,626 ordinary shares for issuance to eligible employees, directors, and consultants[150] - The total number of share options granted or agreed to be granted under the Pixocial Share Option Plan was 7,082,731 as of December 31, 2023[153] - The remaining share options available for grant under the Pixocial Share Option Plan were 559,895 as of December 31, 2023[153] - The Pixocial Share Option Plan aims to align the interests of eligible participants with those of Pixocial Holdings and its subsidiaries through share ownership, dividends, and share value appreciation[151] - The Pixocial Share Option Plan has a maximum term of ten years from the adoption date, with approximately nine years remaining[156] - The Pixocial Share Option Plan does not impose a specific limit on the maximum number of share options that can be granted to a single eligible participant[156] - Wu Zeyuan holds 574,496,670 ordinary shares, representing 12.83% of the total issued shares[169] - Cai Wensheng holds
美图公司(01357) - 2023 - 年度财报