Meitu (1357) H1 2026 earnings summary

Executive summary

• Revenue rose 22.1% YoY to RMB2.21 billion for H1 2026, driven by strong growth in photo, video, and design products, especially outside Mainland China.

• Net profit attributable to owners increased 40.0% 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.

• Interim dividend of HK$0.067 per share declared, to be paid in September 2026.

Financial highlights

• Revenue: RMB2,212.8 million (+22.1% YoY); photo, video, and design products: RMB1,769.1 million (+30.9% YoY); advertising: RMB414.7 million (-4.4% YoY).

• Gross profit: RMB1,581.5 million (+15.9% YoY); gross margin: 71.5% (down from 75.3%).

• Earnings per share (basic and diluted) from continuing operations were RMB0.14.

• Operating cash flow: RMB605.5 million; cash and liquid resources: RMB4.82 billion as of June 30, 2026.

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

Outlook and guidance

• Focus on scaling AI-driven productivity applications and expanding global presence, especially in high-ARPPU regions.

• Continued investment in R&D for vertical-specific AI capabilities and application-level optimization.

• Several internal studios and accelerator programs launched to drive new product development; non-performing studios closed quickly to optimize resource allocation.

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