Revenue Growth - Total revenue for the first half of 2021 reached RMB 806 million, a year-on-year increase of 44.6%[24] - Revenue from premium subscription services and in-app purchases surged by 150.7%, amounting to RMB 211 million[24] - Revenue for the first half of 2021 increased by 44.6% to RMB 806.0 million compared to RMB 557.5 million in the same period of 2020[33] - Online advertising revenue grew by 23.3% to RMB 393 million[24] - Internet value-added services revenue increased by 65.6% to RMB 35.3 million[24] - Advertising business grew by 23.3% year-on-year, contributing significantly to overall revenue recovery[33] - Revenue from premium subscription services and in-app purchases surged 150.7% year-on-year to RMB 210.9 million, attributed to the optimization of premium features and an increase in new and renewing subscribers[44] - Other revenue increased by 25.2% year-on-year to RMB 167.2 million, with the influencer marketing solutions (IMS) business contributing 87.0% of this revenue[46] Profitability - Gross profit increased by 49.8% to RMB 533 million, with a gross margin of 66.1%[24] - Adjusted net profit attributable to the company's owners was RMB 33.4 million, reflecting a 33.8% increase year-on-year[24] - Gross profit for the first half of 2021 was RMB 532.8 million, up from RMB 355.7 million in the previous year[37] - The adjusted net profit attributable to the company’s owners was RMB 33.4 million, compared to RMB 24.9 million in the same period last year[39] - The adjusted profit attributable to the owners for the six months ended June 30, 2021, was RMB 33.58 million, compared to RMB 24.94 million for the same period in 2020, driven by growth in premium subscription services and in-app purchases[61] Expenses and Costs - Operating expenses increased, with R&D spending rising to RMB 259.5 million from RMB 188.0 million year-on-year[37] - Research and development expenses rose by 38.0% year-on-year to RMB 259.5 million, mainly due to increased personnel costs[51] - Sales and marketing expenses increased by 39.8% year-on-year to RMB 188.2 million, driven by higher promotional and employee costs[52] - Operating costs increased by 35.4% year-on-year to RMB 273.2 million, with the IMS business being the largest contributor to this increase[49] Cash Flow and Liquidity - Total cash and cash equivalents as of June 30, 2021, were RMB 772.26 million, down from RMB 1,158.12 million as of December 31, 2020[64] - The company reported a total of RMB 1.11 billion in cash and other liquid financial resources as of June 30, 2021, compared to RMB 2.18 billion as of December 31, 2020[64] - The company maintained a healthy liquidity position with a focus on prudent financial management as of June 30, 2021[65] - Cash used in operating activities for the six months ended June 30, 2021, was RMB 348,349 thousand, compared to RMB 79,211 thousand for the same period in 2020[117] Losses and Impairments - The net loss for the six months ended June 30, 2021, increased significantly to RMB 137.68 million from RMB 24.99 million in the same period of 2020, primarily due to impairment losses on purchased cryptocurrencies[60] - The company reported a net impairment loss on cryptocurrency of RMB 111,907 thousand, with no such loss reported in the previous year[103] - The company reported a net loss attributable to equity holders of RMB 128,666,000 for the six months ended June 30, 2021, compared to a loss of RMB 15,953,000 for the same period in 2020[157] Employee and Shareholder Information - The company employed a total of 1,909 full-time employees as of June 30, 2021, an increase from 1,770 employees as of December 31, 2020[75] - The company has a competitive compensation policy to retain employees, including salaries, discretionary bonuses, and benefits plans[75] - As of June 30, 2021, the company had a total of 4,351,883,565 shares issued, with significant shareholders holding various percentages of equity[78][81] - The largest shareholder, Lion Trust (Singapore) Limited, held 1,398,366,670 shares, representing 32.13% of the total shares[81] Strategic Initiatives - The company anticipates continued revenue growth driven by premium subscription services, online advertising, and new business initiatives[35] - The company is focusing on integrating the beauty ecosystem to replicate past successes through the right commercialization strategies[35] - The company plans to seek strategic investment opportunities using existing internal resources and/or other funding sources to enhance technology development, product research, and market expansion[74] Financial Position - Total assets as of June 30, 2021, were RMB 4,435,339 thousand, a slight decrease from RMB 4,507,160 thousand as of December 31, 2020[110] - The company’s total equity decreased to RMB 3,446,552 thousand from RMB 3,567,835 thousand, indicating a decline in shareholder value[110] - The company’s total fair value of financial assets increased to RMB 599,841,000 as of June 30, 2021, compared to RMB 555,433,000 in the previous year[149] Corporate Governance - The company has complied with the corporate governance code as of June 30, 2021, ensuring effective internal control measures and transparency[86] - The audit committee has reviewed the unaudited interim financial statements for the six months ended June 30, 2021, confirming compliance with applicable accounting standards[92] Cryptocurrency Investments - The company holds cryptocurrencies such as Ethereum and Bitcoin, classified as intangible assets with an indefinite useful life, subject to annual impairment testing[125] - The company purchased cryptocurrencies totaling RMB 649,969,000 during the six months ended June 30, 2021, including 31,000 units of Ethereum and 940.88522604 units of Bitcoin[162] - The carrying amount of cryptocurrencies as of June 30, 2021, was RMB 534,103,000 for Ethereum and RMB 646,010,000 for Bitcoin[165] - The company faces price risk related to its cryptocurrency investments, with a potential pre-tax loss impact of approximately RMB 20,776,000 if the fair value of cryptocurrencies fluctuates by 10%[166]
美图公司(01357) - 2021 - 中期财报