① In the first half of the year, Meitu's net income increased by 80% year-on-year, reaching a historic high; ② The revenue growth of the image and design product business, which is mainly based on paid subscriptions, has become the main driver of the company's performance growth; ③ Currently, the penetration rate of the company's paid subscription users is about 4%. The company stated that the penetration rate of paid subscription users is expected to exceed 10% in the future.
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On August 28th, Caijingshe News (Reporter Cui Ming, Fang Yanbo) - "Currently, the penetration rate of Meitu's paid subscription users has exceeded 4%. We hope that in the future, the penetration rate of paid subscription users in lifestyle scenarios can reach 10%, and the proportion in productivity scenarios will be even higher." Yan Jingliang, Chief Financial Officer and Company Secretary of Meitu (01357.HK), said at the mid-term earnings conference held this evening.
According to the 2024 semi-annual report released by the company today, in the first half of the year, Meitu achieved a revenue of 1.62 billion yuan, a year-on-year growth of 28.6%, and a net income attributable to the owners of the parent company of 0.27 billion yuan after adjustment, a year-on-year growth of 80.3%, reaching a historical high.
In Meitu's revenue structure, the revenue of the image and design product business was 0.93 billion yuan, a year-on-year growth of 54.5%, accounting for 57.4% of the total revenue; advertising business revenue was 0.41 billion yuan, a year-on-year growth of 18.3%; beauty solutions business revenue was 0.27 billion yuan; other business revenue was 7.1 million yuan.
In the financial report, the company attributes the main reason for the performance growth to the rapid growth of revenue from image and design products driven by the continuous improvement of generative AI, among which the growth of paid subscriptions is the most significant. Data shows that Meitu's paid subscription users have exceeded 10.81 million, reaching a record high, and the paid penetration rate has increased from 2.9% in the same period last year to 4.2%.
"Nowadays, the development logic of the image and design product business has become very clear, and improving subscription penetration rate is the key growth indicator for this business." Yan Jingliang said, "As we continue to invest in product and AI technology capabilities, we expect the growth of subscription penetration rate to continue to rise."
In addition to paid users, Meitu's global monthly active users also maintained growth momentum. As of the end of the first half of the year, Meitu's global monthly active users reached 0.26 billion, a year-on-year growth of 4.3%. Among them, the number of monthly active users in countries and regions outside mainland China was 84.73 million, a year-on-year growth of 15%, accounting for 32.9% of the overall monthly active users.
As an AI application-oriented company, the performance growth and product iteration of Meitu Company are inseparable from continuous R&D investment. In the first half of this year, Meitu Company invested 0.43 billion yuan in R&D, a year-on-year increase of 44.5%. The company stated that the main reason for the increase in R&D investment is the training and polishing of large models.
It is reported that the MiracleVision, the large model launched by the company in the first half of this year, has been upgraded to version 5 and fully applied to Meitu's imaging and design products, helping to improve the work efficiency of e-commerce, advertising, gaming, film and television, and animation industries, while opening up the ability of large models to industry customers and partners.