Meitu (1357) H2 2024 earnings summary

Executive summary

• Revenue grew 23.9% YoY to RMB 3.34 billion in 2024, led by productivity and globalization strategies and strong performance in photo, video, and design products, which now comprise 62.4% of total revenue.

• Net profit (IFRS) reached RMB 810 million, up 113% YoY, with adjusted net profit at RMB 586 million, driven by AI integration and high-margin product growth.

• International market revenue grew 42%, now accounting for 32% of total revenue, with international MAU up 21.7% YoY to 94.5 million.

• Monthly active users reached 266 million in December 2024, up 6.7% YoY.

• The company executed a globalisation and productivity strategy, launching new AI-driven products and expanding outside Mainland China.

Financial highlights

• Gross profit for 2024 was RMB 2.29 billion, up 39%, with gross margin at 68.7%, 7.2 points higher than 2023.

• Advertisement revenue increased 12.5% to RMB 850 million, mainly from programmatic ads.

• Beauty industry solutions revenue dropped 33.4% to RMB 380 million as focus shifted to higher-margin segments.

• Operating profit reached RMB 490 million, a 39.2% increase YoY.

• Cash and liquid financial resources nearly doubled to RMB 2.99 billion as of year-end.

Outlook and guidance

• Overseas productivity tools and AI-powered products are expected to drive future growth, with 2026 anticipated as a potential explosive period.

• 2025 may see continued growth but not the peak, as overseas market penetration is still developing.

• The company will maintain investment in R&D and global expansion, focusing on subscription-based models and international user monetization.