Meitu (1357) investor relations material

Product innovation and AI integration

• Introduced advanced AI-powered features across leisure and productivity apps, including Meitu, Wink, XDesign, KaiPai, and RoboNeo, focusing on photo/video editing, e-commerce design, and AI agents for content creation.

• Demonstrated GenAI enhancements for image and video restoration, portrait beautification, and creative group photo functions, driving global user growth and app store rankings.

• Launched Whirlwind, an AI-driven fashion recommendation and wardrobe management tool, with direct e-commerce integration and personalized outfit suggestions.

• XDesign and RoboNeo enable e-commerce merchants to generate product images, marketing materials, and videos efficiently, reducing reliance on third-party designers and lowering costs.

• KaiPai streamlines talking video creation for influencers, offering script generation, teleprompter, digital avatars, and intelligent video editing.

Strategic direction and market positioning

• Emphasizing vertical integration and customization, leveraging proprietary enhancements on open-source AI models to differentiate from competitors.

• Focused on co-creation with external creators and designers, boosting user engagement and rapid feature iteration, especially in Euro-American markets.

• Maintaining a balance between free and paid services, with premium features targeting users with higher demands and willingness to pay.

• Subscription remains the mainstream monetization model, but single-purchase options are expected to grow, especially for niche and high-value use cases.

• Brand reputation and product completeness are seen as key competitive advantages, even as general AI models become more capable.

Financial outlook and commercialization

• ARPU for productivity tools like XDesign can reach $300 annually, with some users spending up to $20,000, indicating strong monetization potential in specific segments.

• E-commerce material design and offline studio support are major growth areas, particularly in overseas markets where design costs are higher.

• Market share has increased, especially in Europe, following strategic product and marketing adjustments in August and September.

• Management expects continued growth in both domestic and international markets, with a focus on quality, efficiency, and adaptability to evolving AI capabilities.

• Ongoing collaboration with regulatory bodies ensures compliance and data security, especially in strict markets like the EU.