Financial Performance - In 2024, net profit attributable to equity holders increased by 112.8% to approximately RMB 806.16 million, while adjusted net profit rose by 59.2% to approximately RMB 586.17 million[12]. - Total revenue for 2024 reached RMB 3.34 billion, representing a year-on-year growth of 23.9%, driven by a 57.1% increase in revenue from image and design products to RMB 2.09 billion[13]. - Operating profit before tax for the year was RMB 822.85 million, compared to RMB 438.09 million in 2023[27]. - The company reported a net profit of RMB 806.16 million for the year, up from RMB 366.42 million in 2023[27]. - Adjusted net profit for the fiscal year ending December 31, 2024, increased to RMB 806.2 million, compared to RMB 366.4 million in the previous year, driven by strong growth in core business and cryptocurrency sales[51]. - Adjusted net profit attributable to equity holders of the parent for the fiscal year ending December 31, 2024, was RMB 586.2 million, up from RMB 368.3 million in the previous year, reflecting growth in high-margin core business[53]. User Engagement - Monthly Active Users (MAU) reached approximately 266.82 million by December 2024, a 6.7% increase year-on-year, with MAU from markets outside mainland China growing by 21.7% to 94.51 million[12]. - The number of monthly active users (MAU) outside mainland China grew by 22% year-on-year to 94.51 million, accounting for 36% of total MAU[21]. - The AI video editing tool Wink achieved a MAU of approximately 30 million within two years of its launch[20]. - The AI-driven Meitu Design Studio's paid subscription users reached 1.13 million as of December 31, 2024, up from 870,000 in 2023[22]. Revenue Breakdown - Revenue from AI-driven productivity tools, specifically Meitu Design Studio, doubled year-on-year to approximately RMB 200 million in 2024[12]. - Revenue from advertising increased by 12.5% to RMB 853.47 million, while revenue from beauty solutions decreased by 32.4% to RMB 384.57 million[13]. - Revenue from image and design products accounted for 62.4% of total revenue in 2024, up from 49.2% in 2023[31]. - The advertising business saw a revenue increase of 12.5% year-on-year, totaling RMB 853.5 million for the year ending December 31, 2024, compared to RMB 758.8 million for the previous year[38]. Cost and Expenses - The overall gross margin improved to 68.7%, up 7.2 percentage points from the previous year, due to the increasing contribution of high-margin image and design products[13]. - Operating costs increased to RMB 1.0466 billion, a 0.6% rise from RMB 1.0399 billion, with the largest cost being paid channel sharing, which grew by 46.4% to approximately RMB 430 million[40]. - Sales and marketing expenses rose by 12.9% year-on-year to RMB 483.4 million, driven by increased marketing spending for imaging and design products domestically and internationally[44]. - Research and development expenses increased by 43.3% year-on-year to RMB 910.7 million, primarily due to costs associated with generative AI training[43]. Strategic Investments and Acquisitions - The company agreed to acquire all issued shares of Zcool for a total consideration of up to $39.64 million, with part of the payment being in shares and the remainder in cash[85]. - The completion of the Zcool acquisition occurred on March 27, 2024, making Zcool an indirect wholly-owned subsidiary, with its financial performance consolidated into the group's financial statements[87]. - The company plans to continue seeking strategic investment opportunities to enhance synergies in technology development, product research, and market expansion[83]. Cryptocurrency and Financial Assets - The company recognized an impairment loss reversal of RMB 68.1 million for purchased cryptocurrencies, specifically Bitcoin, for the fiscal year ending December 31, 2024[46]. - Total cash proceeds from the sale of approximately 31,000 units of Ethereum and 940 units of Bitcoin amounted to approximately USD 100 million and USD 80 million, respectively, resulting in a profit of USD 79.63 million (approximately RMB 571 million)[46]. - The company held approximately 31,000 units of Ethereum and 940 units of Bitcoin, selling them for total proceeds of approximately $100 million and $80 million respectively, representing about 10.20% and 8.16% of total assets as of December 31, 2024[77]. Dividends and Shareholder Returns - The proposed final dividend for the year ended December 31, 2024, is HKD 0.0552 per share, totaling approximately HKD 251.8 million (equivalent to about RMB 234.2 million), up from HKD 0.036 per share in 2023[66]. - The company plans to distribute a special dividend of HKD 0.109 per share, amounting to approximately HKD 496.8 million (equivalent to about RMB 458.6 million), subject to shareholder approval at the special general meeting on February 11, 2025[115]. - The company will use 80% of the net proceeds from cryptocurrency sales for special dividends to shareholders, with the remaining funds allocated for general operating expenses[77]. Employee and Management Information - The company employed 2,416 full-time employees as of December 31, 2024, an increase from 1,968 employees in 2023, representing a growth of approximately 22.7%[73]. - The company’s executive director and CEO received a discretionary bonus totaling RMB 1,923,000 for the year ending December 31, 2024[128]. Share Options and Incentive Plans - The total number of shares available for the pre-IPO employee stock option plan is limited to 116,959,070 shares, with 12,051,469 shares of unexercised options granted to eligible participants as of December 31, 2024[132]. - The company has adopted a post-IPO stock option plan, which was terminated at the shareholders' annual general meeting on June 5, 2024, with no further options to be presented or granted under this plan[141]. - The 2024 Share Award Plan was adopted based on the resolution passed at the company's annual general meeting on June 5, 2024[165]. - A total of 33,035,856 shares were granted under the 2024 share incentive plan, with 4,500,000 shares allocated to the chairman and key executives[180].
美图公司(01357) - 2024 - 年度财报