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 AI-powered product innovation and global expansion.

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

• Monthly active users (MAU) 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 teams and model-agnostic strategies accelerated product development and enhanced user experience, especially in e-commerce and content creation.

• Discontinued low-margin cosmetic supply chain business to focus on core imaging and design products.

Financial highlights

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

• Advertising revenue was RMB 842.6 million, stable year-over-year.

• R&D expenses were RMB 950 million, up 3.8%, with increased investment in R&D talent and vertical-specific model training.

• Net profit under IFRS was RMB 700 million, down from RMB 800 million in 2024 due to one-time items; basic and diluted EPS were RMB 0.12, down from RMB 0.18.

Outlook and guidance

• Expect continued growth in productivity tools and international markets, with ARPU and subscription rates as key drivers.

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

• Ongoing investment in vertical AI models and R&D talent to enhance competitiveness.

• Anticipate faster growth acceleration in coming years as new product curves mature.

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