During the reporting period, the company realized the total income from going concern11940,000 yuan, an increase of 22.1%compared with 20 19; Gross profit reached 794 million yuan, an increase of 20 19 13.5%.

During the period, Meitu Company realized an adjusted net profit of 60.9 million yuan attributable to the owner of the parent company, achieving its first full-year profit since its establishment.

In the second half of 2020, the company operated steadily, with a total revenue of 637 million yuan, an increase of 65,438+04.2% over the first half. In the second half of 2020, the net profit was 36 million yuan, an increase of 44.6% over the first half, and the profit was further expanded.

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From the perspective of income structure, online advertising business used to be the main source of income for Meitu, and it has maintained steady growth.

In 20 19, advertising revenue accounted for more than 75% of Meitu's total revenue. In 2020, although the whole advertising market tends to be depressed under the influence of COVID-19 epidemic in the first half of the year, the advertising business has resumed steady growth in the second half of the year, especially in the fourth quarter, and the number and types of advertisers continue to grow.

At the same time, the proportion of Meitu's non-online advertising business revenue in total revenue has also continued to increase since 2020, from more than 20% in the same period last year to more than 40%, which is behind the second growth curve supported by Meitu's new business model.

On the other hand, in 2020, the number of MAU (monthly active users) will reach 260 million. Although there was a year-on-year fluctuation, the main reason was that Meitu's overseas products were among more than 200 mobile phone applications in China banned by the Indian government.

Therefore, the loss of users in India caused the decrease of Meitu's MAU, and after excluding the influence of India, Meitu's MAU remained relatively stable compared with the previous reporting period. Because India's business accounts for a relatively small proportion of Meitu's revenue, it has not had a substantial impact on the company's financial data.

On the contrary, affected by this, Meitu also took this opportunity to adjust the strategic layout of overseas business and pay more attention to promoting the growth of high-net-worth users. In 2020, Meitu's overseas business income also increased by 76% compared with the same period of last year.

In the conference call of Meitu's financial report held yesterday, Meitu also expressed with confidence that the company has a healthy balance sheet and abundant cash reserves, and is ready to quickly identify opportunities and seize opportunities in a good market environment in the future to continue to create long-term value for shareholders.

02

Say goodbye to "tools" and embrace "community"

In the performance announcement released yesterday, Meitu also mentioned that during the Spring Festival of 20021,the daily active users of Meitu Xiu Xiu App reached a peak of over 3 1 10,000, a record high, an increase of 13% over the Spring Festival of 2020.

This seemingly simple data growth is actually an affirmation of the ecological effect of Meitu's transformation content. The driving force behind this daily user data growth is the launch of the function of "Meitu Formula" (formerly known as "Get the same paragraph").

Meitu Xiu Xiu App was born in the process of the Internet's transition from 2G to 3G, and from the text age to the picture age.

Wu, founder and CEO of Meitu Company, said that at that time, many female users already had the need to beautify their pictures, but it took dozens of steps to simply repair a picture with PS to isolate this huge user group from the "beauty".

Meitu Xiu Xiu and Beauty Camera came into being. In the process of upgrading the Internet to 4G again, that is, in the era of short video, Meitu once again launched a variety of apps covering multi-dimensional functions such as photo processing, video shooting, video editing and virtual makeup.

At the same time, Meitu naturally knows that both the beautification of pictures and videos are essentially serving the needs of "socialization". Therefore, Meitu also started the transformation from the tool end to the "beautiful" platform from 18.

In the current Internet environment, the trend of China netizens' pursuit of entertainment and fragmentation of entertainment time is obvious. At the same time, the penetration rate of Internet-based social forms, such as online communities, is gradually increasing, which has strong user stickiness. The sharing and promotion of KOL (key opinion leader) and KOC (key opinion consumer) has increasingly increased the influence on female users' consumption decisions.

In 2020, Meitu Company launched Meitu Creative Platform (MCP), linking artists, professional creators and many users, and connecting PGC (Professional Content Production). Through professional creative content, users of the platform were stimulated to sing and create, which triggered the fission of communication.

The introduction of "Meitu Formula" further connects Meitu's community with UGC (User Content Production), allowing ordinary users to "get" professional aesthetic content and trend elements with one click, and quickly complete image beautification, which once again promotes the explosion of the number of users and the number of social media communicators. Moreover, Meitu creative platform and Meitu formula have strong commercial potential, and many advertisers have expressed their intention to cooperate with platform designers to launch advertising activities that can better convey their brand information.

As a result, Meitu Xiu Xiu has built a content ecology that integrates artists, formulators, users and brands, and has evolved from a single image beautification tool to a platform that can produce high-quality aesthetic content.

In the process of constructing the content ecology, not only the user participation of Meitu Xiu Xiu App has been continuously improved, but also the average daily usage time of Meitu social platform users has increased from 13.6 minutes and 438+09 minutes in the second half of 2065 to 16. 1 minute in the second half of 2020, which indicates that user stickiness has increased.

03

SaaS empowers "beautiful" industrial chain

Throughout the whole chain of consumer industries, including retail, tourism, housekeeping, wedding, medical beauty and other sub-industries, there are characteristics of "dispersed flow" and "strong service attributes", and such industries also have similar industry pain points, that is, because of the short service radius, there is a bottleneck in industry efficiency.

In order to break through this inefficient bottleneck, it is necessary for companies to master massive data and deepen the industry, and start the online, standardized and digital flywheel effect through SaaS (software as a service) to empower the industry to be "platformized".

In order to open up new growth points, Meitu has been working hard for the industry in recent years, empowering "beautiful" industries, especially cosmetics and medical beauty suppliers, from four aspects: AI technology, marketing, channels and supply chain management.

In terms of AI technology empowerment, Meitu's scientific skin measurement brand "Meitu Yishui" adopts top-notch imaging technology and unique AI algorithm to provide skin measurement solutions for industry users, helping customers in beauty salons, skin care brands and other industries to better understand their own consumers, and ultimately improve the sales conversion rate.

At present, Meitu's skin care service has covered more than 200 cities in China. The first generation products have been widely praised by global skin care brands and beauty salons, and have reached strategic cooperation with many leading cosmetic brands including christian dior and Shiseido. It is understood that Meitu is currently developing the second generation of products, aiming at providing more stable and accurate analysis, and the new generation of products will cover the needs of medical and aesthetic institutions.

In the China market, there are nearly 400 million female consumers aged 20-60, and their annual consumption expenditure exceeds 10 trillion yuan. In the wave of young women's consumption upgrading, the sales of goods with the attribute of "please yourself" have increased rapidly. In recent years, the consumer market of cosmetics and medical beauty is also growing rapidly.

(Source: CCTV Market Research)

The penetration of the Internet into the traditional medical beauty industry and the introduction of AI algorithm can solve the pain points of the traditional medical beauty industry, such as long time-consuming, insufficient accuracy and lack of personalized recommendation to users.

Therefore, it can be said that AI skin measurement is the only way for the future development of medical beauty industry, especially skin management industry. The accuracy of AI algorithm comes from the collection of massive data. At this point, Meitu's extensive industry coverage and the active participation of users under the make-up test function have accumulated a profound first-Mover advantage for Meitu.

In other words, Meitu's massive experience of "becoming beautiful" is extremely valuable to enterprises in the ecological chain of becoming beautiful.

In addition, in terms of marketing and channel empowerment, with the long-term leading edge of photo shooting and beautifying the track, as well as KOL and KOC content marketing solutions throughout the network, Meitu can provide customers with social advertising marketing services on multiple social platforms.

At the beginning of 20021,Meitu also set up a team dedicated to serving the medical and beauty industry to attract potential customers and drive sales transformation.

In terms of supply chain management, Meitu, which holds more than 30% of the shares, is a supplier of enterprise resource planning (ERP), customer relationship management (CRM) and other services to more than 65,438+00,000 offline cosmetics stores in China, and began to provide SaaS services in the supply chain at the end of 2020, with the aim of helping customers reduce costs.

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As Wu said in his recent speech, "I think the biggest innovation of Meitu is to simplify the beautiful things." What Meitu is doing now is to export the experience accumulated in the process of simplifying the "beauty change" in images to the whole industry, thus simplifying the all-round "beauty change" of women in daily life.

Summarizing the past year, Yan, chief financial officer of Meitu, said, "In 2020, Meitu actively promoted strategic upgrading, improved its business structure, and achieved the first full-year profit since its establishment. In the future, we will seize the opportunities brought by SaaS, fully serve American institutions and continue to create long-term value for shareholders. "