Meitu (1357) H2 2025 earnings summary

Executive summary

• Adjusted net profit attributable to owners rose 64.7% year-over-year to RMB 970 million, driven by strong AI-powered product momentum and global expansion.

• Revenue grew 28.8% year-over-year to RMB 3.86 billion, led by growth in photo, video, and design products, especially in international markets.

• Monthly active users reached 276 million, up 3.8% year-over-year, with paying subscribers up 34.1% to 16.91 million; productivity tools subscribers grew 67.4%.

• AI agent capabilities were integrated across most product portfolios, fueling billings growth, especially in Designkit.

• Final dividend of HK$0.05 per share proposed, with total annual dividend payout ratio at approximately 40% of adjusted net profit.

Financial highlights

• Total revenue grew 28.8% year-over-year to RMB 3.86 billion.

• Core photo, video, and design product revenue increased 41.6% year-over-year to RMB 2.95 billion, now 76.6% of total revenue.

• Gross profit was RMB 2.84 billion, up 24.6% year-over-year, with a gross margin of 73.6% (down from 76% due to revenue mix and higher computing costs).

• Advertising revenue was RMB 840 million, stable year-over-year.

• Net profit under IFRS was RMB 700 million, down from RMB 800 million last year due to one-time items; adjusted net profit (including discontinued operations) was RMB 970 million, up 64.7%.

Outlook and guidance

• Expect continued growth in productivity tools and international markets, with ARPU as a key driver.

• Gross margin expected to remain above 70% despite revenue mix changes.

• Ongoing investment in vertical AI models, R&D talent, and AI-driven vertical-specific workflows to enhance competitiveness.

• Strategic partnership with Alibaba to drive AI and e-commerce collaboration.

• Quarterly updates on key operating metrics to improve transparency.