Meitu (1357) investor relations material

Executive summary

• Revenue rose 22.1% year-over-year to CNY 2.21 billion for H1 2026, driven by strong growth in photo, video, and design products, especially outside Mainland China.

• Net profit attributable to owners increased 40% year-over-year to CNY 620 million; adjusted net profit was CNY 652 million.

• AI-driven productivity applications saw MAU reach a record 33 million, with ARR for these apps expanding to RMB620 million.

• Total paying subscribers reached 18.44 million, with international subscriber growth outpacing Mainland China and high-ARPPU regions contributing significantly.

• Strategy centers on connecting AI content creation, distribution, and asset accumulation to build a value chain for the AI era.

Financial highlights

• Gross profit increased 15.9% year-over-year to CNY 1.58 billion; gross margin declined to 71.5% from 75.3% due to product mix and higher early-stage AI costs.

• Photo, video, and design product revenue grew 30.9% to CNY 1.8 billion; productivity applications contributed over 80%.

• Overseas revenue rose 41.7%, accounting for 48% of total revenue.

• Advertising revenue declined 4.4% to CNY 410 million due to lower brand/traditional ad formats.

• Earnings per share (basic and diluted) from continuing operations were CNY 0.14, up from CNY 0.10 and CNY 0.09, respectively.

Outlook and guidance

• Focus remains on expanding AI-driven productivity applications and globalisation, with new product studios and an accelerator program to drive innovation.

• Continued investment in vertical-specific AI and international market localisation is expected.

• Management expects productivity applications to drive the next phase of growth, with deeper monetisation potential.

• Will continue to capture AI application opportunities, balancing growth quality and operating efficiency.

• Ongoing innovation and globalization, with rapid product iteration and resource efficiency.