MEITU (01357) announces pleased profit; expected 52%-60% increase in annual net profit attributable to the parent in 2024.

MEITU (01357) announced that for the current year (ending on December 31, 2024), the adjusted net profit attributable to the owners of the company is expected to increase by approximately 52% to 60% compared to the previous year (ending on December 31, 2023). The significant improvement in the group's profitability is mainly attributed to the rapid growth in revenue from its core business "image and design products" driven by its artificial intelligence (AI) technology. This business has a high gross profit margin, and its contribution to the overall revenue continues to expand, leading to a double-digit year-on-year increase in the group's overall gross profit and gross profit margin. Additionally, despite a significant increase in research and development expenses related to AI technology and products, the growth rate of comprehensive operating expenses for the current year is lower than the increase in gross profit, further enhancing profitability. Furthermore, the growth rate of business income from markets outside of mainland China is faster than the strong growth rate of business income in mainland China, validating the effectiveness of the group's globalization strategy. Non-operating items also had a positive impact on the group's net profit for the current year, mainly due to the one-time net gain from the sale of all held cryptocurrencies by the group, partially offset by the fair value changes in the group's long-term investments. Therefore, under International Financial Reporting Standards, it is expected that the net profit attributable to the owners of the company for the current year will increase by approximately 103% to 116% compared to the previous year.