New Beijing News Shell Financial Report (Reporter Chen Weicheng) - On August 25 evening, Meitu released its 2021 first-half financial results showing total revenue of RMB 806 million ($80.6 million), marking a 44.6% year-over-year increase. The company achieved half-year profitability with adjusted net profit attributable to parent company owners reaching RMB 33.4 million ($3.34 million), up 33.8% annually. Gross margin stood at 66.1%, representing a 2.3 percentage point improvement.
Core Business Performance Breakdown
Advertising and Subscription Services
- Online advertising revenue: RMB 393 million ($39.3 million), growing 23.3% YoY
- Premium subscription services (launched 2019): RMB 211 million ($21.1 million), surging 150.7% YoY
- Internet value-added services: RMB 35.34 million ($3.53 million), increasing 65.6% YoY
The platform now boasts approximately 3 million active premium subscribers as of June 2021.
Content Marketing Solutions
Other income reached RMB 167 million ($16.7 million) with 25.2% growth, primarily driven by:
- Influencer Marketing System (IMS): Contributed 87% of this revenue line
- IMS revenue: RMB 146 million ($14.6 million), up 49.5% annually
User Metrics Analysis
Platform-wide monthly active users declined 5.8% to 246 million:
- Meitu Xiuxiu: 114 million MAU (-0.5% YoY)
- Meiyan Camera: 62.58 million MAU (+1.2% YoY)
- BeautyPlus: 45.3 million MAU (-17.8% YoY)
Strategic Investments
- Meitu Yifu: Deployed flagship panoramic skin detectors across 240+ global cities
- Mei Dedao (investee company): Provides ERP SaaS solutions to 10,000+ cosmetics stores in 250+ Chinese cities
Cryptocurrency Investments
In March 2021, Meitu entered the digital asset market through strategic purchases:
👉 Understanding cryptocurrency investments
Purchase Timeline
March 5:
- $22.1 million in Ethereum
- $17.9 million in Bitcoin
March 17:
- $28.4 million in Ethereum
- $21.6 million in Bitcoin
Total cumulative investment reached approximately $90 million.
Financial Impact
As of June 30, 2021:
- Ethereum holdings: $65.2 million market value (unrealized gain)
- Bitcoin holdings: $32.2 million market value (realized loss)
Accounting treatment under IFRS:
- Cryptocurrencies classified as intangible assets using cost model
- Recognized RMB 112 million ($11.2 million) Bitcoin impairment loss
- Unrealized RMB 94.9 million ($9.49 million) Ethereum gain not recognized
Leadership Perspective
CEO Wu Xinhong stated during the 2020 annual results meeting:
"Our cryptocurrency purchases represent strategic asset allocation supporting overseas business development, not short-term speculation."
Frequently Asked Questions
Why did Meitu invest in cryptocurrency?
The company cited cryptocurrency's appreciation potential and diversification benefits for cash reserves while preparing for blockchain industry expansion.
How does cryptocurrency accounting work?
Under IFRS, digital assets are treated as intangible assets measured at cost. This requires impairment recognition for value decreases but doesn't permit upward revaluation.
What's Meitu's core revenue driver?
While advertising remains significant, premium subscription services now demonstrate the strongest growth momentum at 150.7% annual increase.
👉 Blockchain investment strategies explained
How has user engagement changed?
Overall MAUs declined 5.8%, though camera-specific applications showed more resilience compared to beauty enhancement tools.
What's next for Meitu's SaaS business?
The company continues expanding its skin analysis technology and supporting retail networks through Mei Dedao's ERP solutions.
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