Financial Performance - For the six months ended June 30, 2024, the adjusted net profit attributable to equity holders of the parent company was approximately RMB 272.8 million, representing a year-on-year increase of 80.3%[3]. - Revenue for the same period grew by approximately 28.6% to about RMB 1.621 billion, compared to RMB 1.261 billion in the previous year[5]. - Total revenue for the six months ended June 30, 2024, increased by approximately 28.6% to RMB 1,621,159,000 compared to RMB 1,260,881,000 for the same period in 2023[13]. - The net profit for the six months ended June 30, 2024, increased to RMB 303.7 million, compared to RMB 209.5 million for the same period in 2023[30]. - Adjusted net profit attributable to equity holders increased to RMB 272,800,000, compared to RMB 151,296,000 in the previous year[11]. - The adjusted profit for the six months ended June 30, 2024, was RMB 273,778,000, compared to RMB 135,251,000 for the same period in 2023, representing a significant increase[31]. - Earnings per share for the period was RMB 0.07, compared to RMB 0.05 for the same period in 2023, showing an increase in shareholder value[48]. - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.07, up from RMB 0.05 in the same period of 2023, reflecting a growth of 40%[70]. - Diluted earnings per share for the six months ended June 30, 2024, was RMB 0.06, compared to RMB 0.05 for the same period in 2023, indicating a 20% increase[72]. User Growth and Engagement - The total monthly active users reached approximately 258 million, a year-on-year increase of 4.3%, with significant growth from regions outside mainland China, which accounted for about 32.9% of total users[6]. - The AI-driven video editing application Wink saw its monthly active users increase by approximately 99% year-on-year, becoming the third-largest application in the company's product matrix[8]. - Monthly active users in the productivity segment increased by 42.0% year-on-year, indicating strong demand for productivity-focused applications[6]. - The number of paid subscription users for the application exceeded 10.81 million, with a subscription penetration rate of approximately 4.2% as of June 30, 2024[14]. Revenue Breakdown - Revenue from image and design products increased by 54.5% year-on-year, while revenue from beauty solutions and advertising grew by 18.3%[5]. - Revenue from image and design products grew by about 54.5% to RMB 930,573,000, accounting for 57.4% of total revenue[14]. - Revenue from beauty industry solutions decreased by 5.5% to RMB 270,574,000, reflecting a cautious outlook for future growth in this non-core business[17]. - The revenue from advertising reached RMB 412,914,000, representing 25.5% of total revenue, up from 27.7% in the previous year[13]. - Advertising revenue increased by 18.3% year-on-year to RMB 412.9 million for the six months ended June 30, 2024, compared to RMB 349.2 million for the same period in 2023[18]. - Programmatic advertising revenue grew by 45% year-on-year, contributing significantly to overall advertising growth[18]. - Global advertising revenue (excluding mainland China) surged by 129% year-on-year due to successful product globalization efforts[18]. Costs and Expenses - Operating costs rose to RMB 568.5 million, an increase of 12.2% from RMB 506.9 million for the same period last year[20]. - Research and development expenses increased by 44.5% to approximately RMB 425.3 million, primarily due to rising costs associated with generative AI training[22]. - Sales and marketing expenses decreased by 7.5% to approximately RMB 205 million, attributed to a reduction in related personnel costs[23]. - The company’s total operating costs, sales and marketing expenses, administrative expenses, and R&D expenses totaled RMB 1,376,368,000 for the six months ended June 30, 2024, compared to RMB 1,166,827,000 in 2023, an increase of approximately 18.0%[63]. Acquisitions and Strategic Developments - The company successfully completed the acquisition of Zcool Network Technology Limited in the first half of 2024, enhancing its capabilities in generative AI tools[8]. - The company completed the acquisition of the leading visual creative community, Zcool, enhancing its ecosystem in the image sector[16]. - The company launched and upgraded six productivity tools during the third Meitu Image Festival, expanding its product matrix[15]. - The productivity tool X-Design was launched in markets including the United States, Canada, Australia, and the United Kingdom, expanding the company's global footprint[8]. - The company plans to seek strategic investment opportunities to enhance synergies in technology development and product portfolio expansion[44]. Financial Position and Assets - Cash and cash equivalents as of June 30, 2024, totaled RMB 351,504,000, down from RMB 640,629,000 as of December 31, 2023, indicating a decrease of approximately 45%[33]. - The company’s cash and other liquid financial resources totaled RMB 1,298,503,000 as of June 30, 2024, down from RMB 1,404,438,000 at the end of 2023[33]. - The company reported a total of 2,285 full-time employees as of June 30, 2024, compared to 2,212 employees a year earlier, indicating a growth in workforce[41]. - The company’s total equity rose to RMB 4,462,766 thousand as of June 30, 2024, up from RMB 4,113,700 thousand as of December 31, 2023, reflecting an increase of approximately 8.5%[51]. - The total assets increased to RMB 6,401,083 thousand from RMB 5,767,186 thousand as of December 31, 2023, representing a growth of approximately 11%[50]. - The total liabilities increased to RMB 1,938,317 thousand as of June 30, 2024, compared to RMB 1,653,486 thousand as of December 31, 2023, marking an increase of about 17.3%[51]. - The company’s accumulated losses improved to RMB (2,765,690) thousand as of June 30, 2024, from RMB (3,069,118) thousand as of December 31, 2023, showing a reduction of approximately 9.9%[51]. Cryptocurrency and Impairment - The company recognized a reversal of impairment losses on purchased cryptocurrencies amounting to approximately RMB 68.1 million[25]. - The company incurred a loss of RMB 68,145,000 from cryptocurrency impairment during the six months ended June 30, 2024, compared to a loss of RMB 185,563,000 in the same period in 2023[31]. - The company recognized an impairment loss of RMB 68,145,000 for the six months ended June 30, 2024, compared to an impairment reversal of RMB 185,563,000 for the same period in 2023[85]. - The company held approximately 31,000 units of Ethereum and 940.4970 units of Bitcoin, with a fair value of approximately USD 10.521 million and USD 5.795 million, respectively, as of June 30, 2024[42]. - The total cost of cryptocurrencies held by the company amounts to RMB 712,680,000, with Ethereum at RMB 360,018,000 and Bitcoin at RMB 352,662,000[85]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which the board believes is appropriate under current circumstances[97]. - The audit committee has reviewed the unaudited interim financial statements for the six months ending June 30, 2024, and believes they fairly present the financial position and performance of the group[100]. - The company has adopted the standard code for securities trading by directors and confirmed compliance by all directors for the six months ending June 30, 2024[98]. - The board does not recommend the distribution of an interim dividend for the six months ending June 30, 2024[101]. Forward-Looking Statements - The announcement includes forward-looking statements regarding the group's business outlook and financial performance estimates[104]. - The forward-looking statements are based on existing data and assumptions at the time of the announcement[104]. - There are risks and uncertainties associated with the forward-looking statements, which may not be realized in the future[104]. - Shareholders and potential investors are advised not to overly rely on the forward-looking statements provided[104].
美图公司(01357) - 2024 - 中期业绩