Revenue Growth - Total revenue for the first half of 2022 increased by 20.5% year-on-year to RMB 971.2 million, driven by strong growth in VIP subscription services[23] - VIP subscription business became the largest revenue source, reaching RMB 339.2 million, a year-on-year increase of 61.4%[25] - Revenue from online advertising fell by 35.1% year-on-year to RMB 254.7 million, indicating a shift in revenue sources[25] - Revenue from SaaS and related businesses surged by 1,542.3% in the first half of 2022, primarily serving the cosmetics and skincare industries[35] - Revenue from internet value-added services increased by 11.7% year-on-year to RMB 41.7 million for the six months ended June 30, 2022, compared to RMB 37.3 million for the same period in 2021[47] User Metrics - Monthly active users (MAUs) grew to 240.9 million as of June 30, 2022, representing a 4.5% increase from December 31, 2021[26] - The number of MAUs for Meitu Xiuxiu reached 124.7 million, an increase of 8.7% from the previous period[26] - The number of MAUs in mainland China increased by 11.2% to 171.1 million, while overseas MAUs decreased by 9.0% to 69.8 million[26] - The monthly active user base grew by 4.5% compared to December 2021, indicating a stable user foundation for VIP subscription growth[30] Profitability and Losses - Adjusted net profit attributable to the company’s owners rose by 7.9% year-on-year to RMB 36.0 million[25] - The company reported a net loss of RMB 281.61 million for the six months ended June 30, 2022, compared to a net loss of RMB 137.68 million for the same period in 2021[38] - The net loss for the six months ended June 30, 2022, increased significantly to RMB 281.6 million, compared to RMB 137.7 million for the same period in 2021, primarily due to impairment losses on purchased cryptocurrencies[57] - The total comprehensive loss for the six months ended June 30, 2022, was RMB 235,868 thousand, compared to RMB 151,520 thousand for the same period in 2021, representing an increase of approximately 55.6%[107] Cost and Expenses - The gross profit margin decreased to 51.8%, down 14.3 percentage points compared to the previous year[25] - Operating costs increased by 71.2% year-on-year to RMB 467.8 million for the six months ended June 30, 2022, compared to RMB 273.2 million for the same period in 2021[49] - Research and development expenses increased slightly to RMB 265.49 million from RMB 259.46 million year-over-year[40] - Administrative expenses increased by 8.0% year-on-year to RMB 136.3 million for the six months ended June 30, 2022, compared to RMB 126.2 million for the same period in 2021[52] Strategic Initiatives - The company aims to maximize revenue from existing customers by expanding the range of competitive products available through its supply chain management SaaS[32] - The company plans to optimize costs and expenses to ensure prudent operations while investing more in R&D to enhance product performance[35] - The company is focusing on expanding its SaaS and ERP services for cosmetics retailers, which is expected to generate new revenue streams[116] - The company aims to expand its VIP subscription user base by enhancing premium features and offering various subscription models[44] Financial Position - Cash and cash equivalents as of June 30, 2022, amounted to RMB 793.065 million, an increase from RMB 738.732 million as of December 31, 2021[61] - Total current financial resources, including cash and cash equivalents, short-term and long-term bank deposits, were RMB 1,090.493 million as of June 30, 2022, down from RMB 1,258.191 million as of December 31, 2021[61] - The company maintained a low debt-to-equity ratio of 0.3% as of June 30, 2022, consistent with the ratio as of December 31, 2021[67] - The company reported a basic and diluted loss per share of RMB (0.06), compared to RMB (0.03) for the same period last year, indicating a 100% increase in loss per share[98] Investments and Acquisitions - The company acquired approximately 20.67% equity in Meidede for a total consideration of approximately RMB 79,742,000, which included RMB 39,871,000 in cash and the issuance of 29,452,667 shares at an issue price of HKD 1.66 per share[71] - As of June 30, 2022, the group holds approximately 63.35% equity in Meidede, which has become a subsidiary of the group[71] - The company made investments in financial assets measured at fair value totaling RMB 33.321 million for the six months ended June 30, 2022, compared to RMB 77.903 million for the same period in 2021[64] Compliance and Governance - The company has adhered to the corporate governance code as of June 30, 2022, ensuring transparency and accountability[84] - The audit committee has reviewed the unaudited interim financial statements for the six months ended June 30, 2022, confirming compliance with applicable accounting standards[90] - The interim financial data has been reviewed and found to comply with International Accounting Standards[96] Market and Regulatory Environment - Foreign investors are prohibited from holding more than 50% equity in companies providing value-added telecommunications services in China[91] - As of May 1, 2022, the qualification requirements for foreign investors in the value-added telecommunications sector have been abolished[91] - The approval process for foreign investment remains uncertain due to the lack of clear guidelines[91]
美图公司(01357) - 2022 - 中期财报