Meitu makes profit for the first time after listing: Xiaomi's 30-year exclusive license has been taken back

       Meitu Inc. recently released its 2020 annual report. Last year, the company's continuing operations achieved total revenue of RMB 1.194 billion and gross profit of RMB 794 million, an increase of 22.1% and 13.5% respectively compared with 2019.

　　Meitu said that the adjusted net profit attributable to the parent company's owners was RMB 60.9 million, achieving the first full-year profit since the company was founded.

　　According to information from Meitu, the company's most important revenue currently comes from online advertising, but the premium subscription function launched in 2019 has become the second largest source of revenue, contributing 206.5 million yuan in revenue last year, a year-on-year increase of 140.1%.

　　In addition, Meitu CEO Wu Xinhong stated that Meitu will no longer enter the mobile phone manufacturing and sales industry in the future; as for the progress of cooperation with Xiaomi, Meitu has taken back the authorization of Meitu mobile phones.

　　In November 2018, Xiaomi Group’s financial report disclosed that it had reached a strategic partnership with Meitu Inc., and would obtain exclusive authorization for Meitu mobile phones and smart hardware products for up to 30 years.

　　According to the cooperation agreement, Meitu will exclusively license its Meitu mobile phone brand, imaging technology and second-level domain name to Xiaomi Group worldwide.

　　After the authorization, Xiaomi will be responsible for the research and development, production, sales and promotion of Meitu phones; and Meitu will continue to provide joint support for imaging technology and beauty algorithms.