Financial Performance - In 2021, the company's revenue reached RMB 1.666 billion, representing a year-on-year growth of 39.5% compared to RMB 1.194 billion in 2020[10]. - The adjusted net profit attributable to the company's owners for the year was RMB 85.073 million, a 39.7% increase from RMB 60.892 million in 2020, marking the second consecutive year of profitability[12]. - The gross profit for 2021 was RMB 1.125 billion, with a gross margin of 67.5%, up from 66.5% in 2020, indicating improved profitability[12]. - Online advertising revenue increased by 12.5% to RMB 765.849 million, compared to RMB 680.709 million in 2020[12]. - The company reported a net loss of RMB 77.430 million for the year, which is a 28.8% increase in losses compared to RMB 60.132 million in 2020[12]. - Revenue from VIP subscriptions and image SaaS grew significantly by 146.9% to RMB 519.49 million, representing 31.2% of total revenue[35]. - Internet value-added services revenue rose by 51.9% to RMB 81.67 million, driven by increased revenue sharing from third-party partners[36]. - Revenue from other businesses increased by 20.0% year-on-year to RMB 299 million for the year ended December 31, 2021, compared to RMB 249 million for the year ended December 31, 2020[37]. - The company had approximately 4 million VIP members globally by December 2021, more than doubling from the end of 2020[35]. - Total revenue for the year ended December 31, 2021, increased by 39.5% to RMB 1,666.03 million from RMB 1,194.02 million for the year ended December 31, 2020[30]. User Engagement - The total monthly active users decreased to 230.644 thousand, down 11.6% from 261.048 thousand in 2020[15]. - The monthly active users for the BeautyPlus app dropped by 32.7% to 37.116 thousand, while the number for the Beauty Camera app decreased by 8.1% to 56.870 thousand[15]. Strategic Initiatives - The company is focusing on expanding its image SaaS solutions targeting design professionals and individuals, leveraging computer vision technology[10]. - The company aims to enhance its product offerings and market presence through strategic initiatives in the coming years[10]. - The company's SaaS strategy for the imaging and beauty industries is expected to drive future revenue growth, with a focus on AI technology and design solutions[20]. - The company plans to launch a second-generation skin analysis device with enhanced features, aimed at expanding its customer base in the medical beauty sector[22]. - The company plans to enhance competitiveness by providing more beauty-related products and services, leveraging the growing trend of brands using live streaming for marketing[34]. - The company aims to continue investing in user experience improvements for its services, anticipating ongoing growth in its VIP subscription and image SaaS business[35]. Cost Management - The company is focusing on optimizing costs and expenditures while maintaining operational efficiency amid rising operating expenses in 2021[25]. - Operating costs increased by 35.2% to RMB 540.9 million for the year ended December 31, 2021, up from RMB 400.1 million for the year ended December 31, 2020[38]. - Research and development expenses increased to RMB 545.49 million from RMB 404.21 million in the previous year[29]. - Sales and marketing expenses increased by 36.0% to RMB 391 million for the year ended December 31, 2021, up from RMB 287.5 million for the year ended December 31, 2020[42]. - Administrative expenses grew by 28.7% to RMB 265 million for the year ended December 31, 2021, compared to RMB 205.9 million for the year ended December 31, 2020[43]. Investments and Acquisitions - The company has entered into a further acquisition agreement to gain controlling interest in Meide, which will be consolidated into the group from January 2022[21]. - On April 9, 2021, the company acquired approximately 9.57% equity in Meidede for a total cash consideration of RMB 19,133,200, increasing its stake from approximately 33.11% to approximately 42.68%[68]. - On December 17, 2021, the company entered into an agreement to acquire an additional 20.67% equity in Meidede for approximately RMB 79,741,920, resulting in a total ownership of approximately 63.35%[68]. - The company plans to continue seeking strategic investment opportunities to establish synergies in technology development, product research, product portfolio, channel expansion, and cost control[67]. Financial Position - Cash and cash equivalents decreased to RMB 738,732,000 in 2021 from RMB 1,158,117,000 in 2020, a decline of approximately 36.2%[55]. - The company maintained a healthy liquidity position with total current financial resources of RMB 1,258,191,000 as of December 31, 2021, down from RMB 2,182,016,000 in 2020[55]. - The company's debt-to-equity ratio was 0.3% as of December 31, 2021, down from 0.5% in 2020, indicating a reduction in reliance on debt financing[62]. - The workforce increased to 2,090 full-time employees in 2021 from 1,770 in 2020, reflecting a growth of approximately 18.1%[63]. Corporate Governance - The company has a strong management team, including CFO Yan Jinliang and COO Wang Xiujuan, who joined in June 2015 and August 2019 respectively[80]. - The company has established a remuneration committee to formulate remuneration policies for directors and senior management[96]. - The board of directors has confirmed the independence of all independent non-executive directors as per the listing rules[127]. - The company has purchased liability insurance for its directors to provide adequate protection[130]. Regulatory Compliance - The acquisition and ongoing related party transactions are subject to independent shareholder approval and regulatory compliance as per listing rules[145]. - The company has obtained necessary licenses and permits for its operations, including the Internet Culture Business License and the ICP License[147]. - The company is closely monitoring regulatory developments in China to mitigate risks associated with the Meitu Yifu contractual arrangements[173]. - The company has been advised that the existing Dajie VIE agreement does not violate relevant Chinese regulations[190]. Shareholder Information - The company did not recommend the distribution of a final dividend for the year ended December 31, 2021[93]. - The employee stock option plan allows for a total of 116,959,070 shares to be granted, with 18,692,770 shares of options unexercised as of December 31, 2021[100]. - The maximum number of shares that can be issued under the post-IPO share option plan is capped at 30% of the company's issued share capital[103]. - As of December 31, 2021, a total of 422,729,455 shares are available for grant under the post-IPO share option plan, representing 9.71% of the issued share capital[103]. Market Position - The main business segments include online advertising and internet value-added services, as well as smart hardware production[88]. - The company generates revenue from online advertising and sales of virtual goods through its mobile applications, with significant income derived from these operations[147].
美图公司(01357) - 2021 - 年度财报