Meitu (1357) reported an adjusted net profit growth of between 60 percent and 66 percent year-on-year for the fiscal year ending 2025.
The company noted that strong profitability was primarily driven by rapid revenue growth in its core business of photo, video, and design products, fuelled by a significant growth in global paying subscribers.
Notably, paying subscriber growth in international markets outpaced that of mainland, demonstrating the effectiveness of the company's globalization strategy.
Gross profit growth, driven by such revenue momentum, has exceeded that of operating expenses.
The resulting operating leverage has amplified the group’s profitability relative to its gross profit growth.
After taking into account all non-cash and non-operating items, the net profit is expected to decrease by no more than 30 percent.
The decline in net profit was primarily attributable to a one-off gain of approximately 640 million yuan (HK$720.68) from the disposal of all cryptocurrencies in the same period last year, which resulted in a high base for comparison.
Moreover, a one-off and non-cash expense of approximately 512 million yuan incurred due to the completion of the issuance of convertible bonds to Alibaba (9988) during the period.
Such expense was recognized based on the excess of the fair value of the convertible bonds as at the closing date over its principal value of US$250 million.
The above two items were both non-operating in nature, and were not related to the group’s core business of photo, video and design products.
