Meitu (1357) H2 2025 earnings summary

Executive summary

• Revenue grew 28.8% year-over-year to RMB 3.86 billion, driven by AI-powered product innovation, global expansion, and strong growth in photo, video, and design products, especially in international markets.

• Adjusted net profit attributable to owners rose 64.7% year-over-year to RMB 970 million, reflecting robust core business momentum and AI-driven growth.

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

• Overall revenue rose 28.8% year-over-year to RMB 3.86 billion, with photo, video, and design products revenue up 41.6% to RMB 2.95 billion, now 76.6% of total revenue.

• International market revenue increased 37.4% year-over-year, now accounting for 38% 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.

• Adjusted net profit attributable to owners was RMB 970 million, up 64.7% year-over-year; IFRS net profit 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 in 2024.

Outlook and guidance

• Expect continued growth in productivity tools and international markets, with ARPU growth becoming a key engine, especially in high-ARPU regions such as Europe, the Americas, and East Asia.

• Operating expenses will be controlled through AI-driven efficiency, with no significant increase in staff costs.

• Gross profit margin expected to remain stable above 70%, with production tools taking a larger revenue share over the next five years.

• Ongoing investment in AI-driven vertical-specific workflows and product innovation.

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