Meitu (1357) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 rose 12.3% year-over-year to RMB 1.82 billion, driven by strong growth in subscription-based photo, video, and design products.

• Adjusted net profit attributable to owners increased 71.3% year-over-year to RMB 470 million, while net profit attributable to owners rose 30.8% to RMB 397 million.

• Monthly active users (MAU) reached 280 million, up 8.5% year-over-year, with 15.4 million paying subscribers, a 42% increase; MAU outside mainland China grew 15.3% to 98 million.

• Significant AI-powered product innovation, including the launch of RoboNeo and features like AI Flash and Quality Restoration, enhanced user engagement and subscription conversion.

• Interim dividend of HK$0.045 per share was proposed and approved, with payment expected in September 2025.

Financial highlights

• Gross profit increased 27.3% year-over-year to RMB 1.34 billion, with gross margin improving to 73.6% from 64.9%.

• Adjusted net profit attributable to owners was RMB 467.4 million, up from RMB 272.8 million year-over-year.

• Earnings per share: basic RMB 0.09, diluted RMB 0.08, both up from the prior year.

• Net cash generated from operating activities was RMB 504 million, with cash and liquid resources totaling RMB 2.67 billion at period end.

• Bank borrowings reduced to RMB 20 million, all unsecured and short-term.

Outlook and guidance

• Continued focus on AI-driven product innovation, vertical model training, and global expansion, especially in productivity tools.

• Strategic investments in AI and productivity tools expected to sustain long-term growth.

• No specific guidance on user or profit growth due to market uncertainties, but management remains confident in long-term strategy.

• Ongoing commitment to stable dividend payout and prudent financial management.