Meitu (01357.HK): Founder and CEO Wu Xinhong increases his stake in the company, showing his confidence in the image SaaS and beauty industry SaaS businesses of the company


On the evening of April 1st, Meitu (01357.HK) issued an announcement announcing that Wu Xinhong, the Founder, CEO and Executive Director of Meitu, purchased 1 million shares of the Company on the open market of The Stock Exchange of Hong Kong Limited on April 1st, 2022 at an average of approximately HK$0.9661 per share.

According to the announcement, Meitu's revenue and adjusted net profit in 2021 has increased significantly compared with 2020, mainly driven by the strong growth of its VIP subscription services and image SaaS businesses, which has become the second largest revenue contributor for the company. As the company is expanding its businesses to satisfy imaging requirements in work scenarios, it is believed that they will be of great help to the company's sustainable development in the future. ...

In addition, the beauty industry SaaS service the company has been actively arranging also shows great potential in infusing new growth vitality for the company. Given the above, Mr. Wu Xinhong's increase of his shareholding in the company shows the management's confidence in the development of the company.

According to the 2021 annual results released on March 30th, during the reported period, Meitu’s revenue increased by 39.5% year-over-year to RMB 1.666 billion, and its gross profit increased by 41.7% year-over-year to RMB 1.125 billion. The adjusted net profit attributable to the owners of the company grew by 39.7% year-over-year to RMB 85.1 million during the period, achieving full-year profitability in terms of adjusted net profit for the second consecutive year. It is worth noting that the revenue of VIP subscriptions and image SaaS-related services significantly increased by 146.9% year-over-year to RMB 519.5 million, with a revenue share close to that of online advertising revenue, and is expected to become Meitu's largest revenue contributor in the future.