Meitu Corporation: Net profit is expected to increase by 52% to 60% in 2024, with revenue growth from non mainland markets exceeding that of mainland operations

Meitu Corporation announced on the Hong Kong Stock Exchange that based on the existing information of the group and the preliminary assessment of the unaudited consolidated management accounts of the group for the year ended December 31, 2024 by the board of directors, according to non international financial reporting standards, the adjusted net profit attributable to equity holders of the parent company for the year 2024 may achieve a year-on-year growth of approximately 52% to 60% compared to the same period the previous year. The significant improvement in the group's profitability is mainly due to the rapid growth of its core business "Imaging and Design Products" revenue driven by artificial intelligence technology. Meanwhile, despite a significant increase in research and development investment primarily focused on AI technology and product related areas, the overall operating expenses growth rate for this year is still lower than the gross profit growth rate, thus further enhancing profitability. In addition, the growth rate of business revenue from markets outside mainland China is also faster than the growth rate of business in mainland China. 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 income obtained from the sale of all cryptocurrencies held by the group, but some of the income was offset by changes in the fair value of the group's long-term investments. According to International Financial Reporting Standards, it is expected that the net profit attributable to equity holders of the parent company of the group for this year will increase by approximately 103% to 116% compared to the same period last year.