Introduction: AIGC Windfall and Strategic Resilience
A company once notorious for cryptocurrency losses has now discovered that its core business—powered by AI—is a goldmine.
On March 15, 2024, Meitu Inc. released its 2023 annual report, revealing a revenue of ¥2.696 billion (up 29.27% YoY) and a net profit of ¥378 million (up 301.8% YoY). The surge was driven by:
- Subscription-based imaging and design products (core revenue driver).
- Recovery of cryptocurrency investments (¥270 million profit from Bitcoin/ETH rebound).
This marks Meitu’s second profitable year since its 2016 IPO and its first exceeding ¥100 million in net profit.
Part 1: Meitu’s Failed Diversification
Missteps in Social and Hardware
- 2018 "Beauty and Social" Strategy: Attempted to pivot into social media (e.g., Meipai) but retreated due to competition from TikTok/Kuaishou.
- Other Ventures: Smartphones (sold to Xiaomi), e-commerce platforms (Meipu), and even "makeup blind boxes" failed to gain traction.
Cryptocurrency Gamble
- 2021: Invested $40M in Bitcoin/ETH, facing backlash for "speculation" as values fluctuated.
- 2023 Redemption: Bitcoin’s rally reversed earlier losses, adding ¥270M to profits.
👉 How Bitcoin’s volatility impacts tech investments
Part 2: 2023 Turnaround via AIGC
AI-Driven Growth
- C2B Subscriptions: VIP membership penetration rose to 2.9% (vs. 2.0% in 2022), targeting 5.3% by 2025.
- New AI Products: Launched 7 tools (e.g., WHEE for AI design, MiracleVision for电商 visuals), boosting B2B revenue.
Leadership Shift
- Founder Wu Xinhong returned as CEO in June 2023, prioritizing AI integration.
Part 3: Challenges Ahead
Declining User Base
- MAU: Dropped from 456M (2016) to 230M (2021), with Meitu Xiuxiu losing 2.1% in 2023.
- Ad Revenue: Stagnant since 2021 despite AIGC hype.
Unproven SaaS Business
- Meiye Solutions (acquired 2021) remains unprofitable, focusing on market share over earnings.
Controversial Acquisitions
- Stationcool Purchase (¥310M): Critics question synergies and financial strain.
FAQs
Q: How did AIGC save Meitu?
A: AI tools like MiracleVision boosted subscriptions and B2B deals, offsetting legacy declines.
Q: Is Meitu still investing in crypto?
A: Holdings remain, but focus shifted to AI; 2023 profits included crypto rebound gains.
Q: Can Meitu sustain growth?
A: Depends on AI innovation vs. competition (e.g., ByteDance, Tencent).
👉 Explore AI’s role in business transformation
Conclusion
Meitu’s 2023 success hinges on AI, but long-term viability requires:
- Stabilizing core user metrics.
- Monetizing SaaS (Meiye).
- Prudent M&A (e.g., Stationcool).
The road ahead balances promise and peril.