According to the Zhitong Finance App, Weimeng Group (02013) announced its annual results for the year ended December 31, 2023. The group achieved continuous operating revenue of 2,228 billion yuan (RMB, same below) during the period, an increase of 21.14% over the previous year; gross profit of 1,484 billion yuan, an increase of 36.02% over the previous year.

According to the announcement, as of December 31, 2023, the Group's subscription solution revenue was about 1,349 billion yuan, an increase of 4.5% over the previous year. The number of paying merchants was 96,339, and the average revenue per user was 1,4007 yuan. The revenue of the merchant solution was about 888 million yuan, an increase of 60.5% over the previous year. The number of paying merchants was 66,905, and the average revenue per user was 13,127 yuan. At a time when commercialization of video channels is accelerating, the Group is expanding its leading edge in the advertising business, driving rapid growth in gross revenue and gross profit. In 2023, the Group helped merchants launch gross advertising revenue of about 14.466 billion yuan, an increase of 44.5% over the previous year.

Weimeng Enterprise Service integrates SaaS-related businesses within the Group, focusing on helping Chinese enterprises digitally upgrade, firmly cultivate the industry, and create more value for customers and society with more advanced digital tools. During the reporting period, subscription solution revenue was approximately $1,349 million, up 4.5% year on year, and the number of paying merchants was 96,339, down 3.3% year on year. Average revenue per user increased 8.0% to 14007 yuan.

In terms of smart retail, as of December 31, 2023, the Group's smart retail revenue was about 613 million yuan, up 19.5% year on year, up 32.2% year on year, accounting for 45.5% of subscription solution revenue. The number of merchants reached 6,826, including 1,306 brand merchants, and the average order revenue per user of brand merchants was 195,000 yuan.

During the reporting period, the Group's systems and services were highly adapted to the development needs of retail customers, and accelerated the pace of participation in retail enterprise terminal organization transformation. The coverage of enterprise regions and self-delivery points increased 87% and more than 7 times, respectively. The Group's membership operation section is well recognized. The number of new members added during the reporting period increased 201% year over year, and the annual repurchase amount increased 361% year over year. With the support of digitalization, Weimei is promoting continuous growth in the performance and scale of partner merchants, and more and more retail companies are gradually considering cooperation with Weimeng as one of their strategic core businesses.

Weimeng Marketing Sub-Group continues to deepen the Group's digital marketing business, while focusing on horizontal integration and vertical expansion of the marketing sector to help the brand achieve global operation and quality growth, and expand more commercialization possibilities. Benefiting from the growth of video channel advertising and the Group's continuous deep regional cultivation and multi-channel expansion, Weimeng's marketing business has maintained rapid growth. With the acceleration of commercialization of video channels, Weimeng's marketing business is expected to continue to grow rapidly this year. During the reporting period, merchant solution revenue was approximately 888 million yuan, up 60.5% year on year; the number of paying merchants increased 24.2% to 66,905, and the average cost per paying merchant increased 16.3% to 212,200 yuan. The Group's advertising business maintained its dominant share in Tencent's social advertising business, and the profit situation also improved significantly. During the reporting period, the Group helped merchants launch gross advertising revenue of about 14.466 billion yuan, an increase of 44.5% over the previous year.