Meitu's 2022 annual results reveal a 25.2% year-on-year increase in total revenue, amounting to RMB 2.085 billion, alongside a 29.9% year-on-year increase in net profit, which reaches 111 million2023-03-30
On March 30th, 2023, Meitu (01357.HK) officially disclosed its 2022 annual results. During the reported period, Meitu reached RMB 2.085 billion in revenue, an annual increase of 25.2%.
The adjusted net profit attributable to equity holders of the parent company was RMB 111 million, a year-on-year increase of 29.9%. Its Monthly Active Users (“MAU”) grew to 243 million in December 2022, 5.3% higher than that of December 2021.
Meitu's VIP subscription business experienced robust growth during the reported period, generating RMB 782 million in revenue, which is a record high at a remarkable year-on-year increase of 57.4%. Its revenue from SaaS related services grew by 1093.2% year-on-year reaching RMB 463 million, showing a rapid and stable growth.
In addition, Meitu reported revenue of RMB 596 million from its online advertising business in 2022, while IMS (Influencer Marketing Solutions) and other business revenue amounted to RMB 149 million. The revenue from internet value-added services segment also experienced a 1.4% year-on-year increase, generating RMB 95.6 million.
The VIP membership count has surpassed 5.6 million, extending beyond life scenarios to encompass work scenarios
In 2022, the presence of AIGC was seen in both free and premium features from Meitu products, which contributed to the growth of VIP members. As of December 2022, Meitu's apps have more than 5.6 million VIP members.
Meitu apps, including the Meitu App and BeautyCam, began integrating VIP subscription businesses in 2020. Supported by its leading AI imaging technology, Meitu is able to continuously update product features to satisfy users' needs in capturing and editing images and videos, driving a steady increase in VIP users.
Additionally, Meitu has expanded its VIP subscription business from personal to professional applications, catering to a range of needs such as influencer marketing, event promotion, product display, and brand advancement.
As AIGC is increasing the number of monthly active users, it creates a favorable environment for the VIP subscription business of Meitu's products to flourish, and the growth is predicted to persist in the future.
SaaS and related business revenue increased by 1093.2% year-on-year, pushing the digital transformation of the real economy
Thanks to its leading imaging and AIGC capabilities, Meitu's SaaS and related services are providing practical assistance in the digital transformation of the real economy.
In 2022, Meitu's SaaS and related business revenue increased by 1093.2% year-on-year to RMB 463 million.
Meitu AI Photo Editing provides photo studios with a one-stop intelligent photo editing solution based on AI image technology, greatly improving the quality and efficiency of post-processing. So far, it has been adopted by 10,000 brands and institutions.
The MeituEve business provides an AI skin analysis and related SaaS solutions for skincare brands, medical aesthetic clinics and beauty salons. At present, MeituEve has been implemented in more than 2,900 brick-and-mortar stores around the world, and has reached strategic cooperations with 130+ well-known brands such as Dior, Shiseido and Fawa.
Meidd's financial results have been consolidated into Meitu's financial statements since January 2022. Meitu provides ERP service and supply chain management SaaS for their cosmetic retailers under the Meidd brand. As of December 2022, Meidd has provided services to more than 11,000 cosmetics stores in China, bringing substantial revenue to Meitu.
The number of MAU increased by 5.3% year-on-year, ranking No. 1 in China's video digitalization strength list
Meitu's MAU is being boosted by the long-term investment in AIGC exploration and innovation, as well as product capability, which is now paying off. Meitu's MAU grew to 243 million in December 2022, 5.3% higher than that of December 2021, among them, the Meitu App's number of MAU reached 130 million, an increase of 13.0% from December 2021.
In 2022, Meitu managed to satisfy users' imaging demand in both life and work by launching a series of products including Wink, Chic, Meitu PC version, Meitu Designer, Meitu AI Photo Editing and Meitu ID Photo.
According to the 2022 China Mobile Internet Value List released by QuestMobile, BeautyCam and the Meitu App ranked #1 in the Camera and Photo Beautification categories, respectively. In addition, iResearch's 2022 Research Report on China's Video Digitization Industry revealed Meitu's #1 rank in the 2022 China Video Digitization Strength List.
An initial landscape of AIGC products has been formed, with a total R&D investment of RMB 586 million
Meitu's technology innovation is endorsed by its adherence to the mission of "making beauty accessible through technology" and its continuous investment in R&D. In 2022, Meitu's R&D investment reached RMB 586 million, a year-on-year increase of 7.5%.
Since the establishment of the Meitu Imaging & Vision Lab (MT Lab) in 2010, Meitu has been exploring and developing AI technology. In 2016, the Hand-Drawn Selfie kickstarted a popular trend. The following year, the ArtBot Andy saw 280 million uses in just three months. Fast forward to 2019, the Animation feature garnered an impressive 46.8 million saves per month.
Meitu achieved several significant milestones in AIGC in 2022. The Meitu App emerged victorious in the overall ranking of app stores across multiple countries, thanks to its AI Art feature. AI Artist was widely used during the New Year's Eve festivities, and Smart Board churned out over a million pictures daily. AI animation was also well-received for its ability to produce engaging animated videos. Among the 2022 AIGC Application Innovation Top 30 selected by Internet Weekly, Meitu ranked seventh.
In 2022, Meitu partnered with ACM Multimedia 2022 in hosting the 4th Person In Context (PIC) Competition. Meitu Imaging & Vision Lab (MT Lab) published several academic papers and took part in multiple international conferences including CVPR 2022, ECCV 2022, and AAAI 2022, among others.
The Shanghai Institute of Nutrition and Health of the Chinese Academy of Sciences and MeituEve have collaborated to initiate several research projects related to skin analysis and digital standards. In addition, they have established a laboratory together that focuses on skin analysis and digital standards.
In addition, the Meitu AI Open Platform has been further improved to continue providing the industry with market-proven professional AI algorithm services and solutions.
Gary Ngan, the chief financial officer and company secretary of Meitu, proudly announced that despite the economic slowdown in 2022, Meitu has achieved steady growth in both total revenue and MAU. What's more, the company has achieved IFRS (International Financial Reporting Standards) full-year profit for the very first time. The implementation of AIGC technology has greatly boosted the VIP subscription business, which is known for its high profit margin. As a result, the revenue generated from this business has reached an all-time high, significantly contributing to the overall improvement of profits. Meitu's standing as the top competitor in the sector, combined with its large model-launching prowess and keen understanding of both user demand and aesthetic development, positions it as a formidable contender in AIGC. Our plan for the future involves expanding the application scenarios of AIGC to encompass personal as well as professional settings, hoping to generate significant value for our shareholders. ”