Meitu (1357) H1 2026 earnings summary

Executive summary

• Revenue rose 22.1% YoY to RMB2.21 billion for the six months ended June 30, 2026, driven by strong growth in photo, video, and design products, especially outside Mainland China.

• Net profit attributable to owners increased 40.0% YoY to RMB619.5 million; adjusted net profit rose 39.5% YoY to RMB652.0 million.

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

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

Financial highlights

• Gross profit increased 15.9% YoY to RMB1.58 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% YoY to RMB1.77 billion; advertising revenue declined 4.4% YoY to RMB415 million.

• Earnings per share (basic and diluted) from continuing operations were RMB0.14, up from RMB0.10 and RMB0.09, respectively.

• Operating expenses rose moderately: selling and marketing up 12.7%, R&D up 4.8%, administrative expenses stable.

• Net cash from operating activities was RMB606 million; cash and liquid resources totaled RMB4.82 billion at period end.

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.