Meitu Reports 40% Surge in Adjusted Net Profit for H1 2026
AM730 · 1 SOURCESabout 2 hours ago3 MIN
Summary
Meitu Inc (stock code: 1357) has released its interim results for the first half of 2026, demonstrating robust growth across key financial metrics. The company's revenue reached 2.21 billion yuan, marking a 22.1% increase from the same period last year, when revenue stood at 1.81 billion yuan . The adjusted net profit climbed to 652 million yuan, representing a 40% year-on-year surge, while unadjusted net profit reached 619 million yuan, up 56% year-on-year . The strong performance was largely attributed to the imaging and design products segment, which contributed 1.769 billion yuan in revenue, accounting for 80% of total revenue and growing 30.9% year-on-year .
Key Points
- Revenue grew to 2.21 billion yuan, up 22.1% year-on-year, with imaging and design products revenue reaching 1.769 billion yuan, representing 80% of total revenue
- Adjusted net profit increased 40% year-on-year to 652 million yuan, with unadjusted net profit rising 56% to 619 million yuan
- Monthly active users (MAU) reached 33 million in June, a record high with 43.5% year-on-year growth; international MAU surged over 80% year-on-year
- Paid subscriber base exceeded 18.44 million, up 19.7% year-on-year, with subscription penetration rate at 6.5%, concentrated in East Asia, Latin America, and Europe
- AI productivity applications' annual recurring revenue (ARR) grew to approximately 620 million yuan, with KaiKai and Vmake Labs ARR growing 2x and 3x year-on-year respectively
- The company launched AI-native products including MVLAND and Picchi at the Meitu Imaging Festival, both achieving ARR exceeding 500,000 US dollars
- Advertising revenue declined 4.4% year-on-year to 415 million yuan, while gross margin contracted 3.8 percentage points to 71.5%
- CEO Wu Xinhong stated the company will continue leveraging the AI application development window while balancing growth quality and operational efficiency
Why It Matters
Meitu's impressive first-half results underscore the company's successful pivot toward AI-powered imaging and design tools, with international markets emerging as a critical growth engine. The 80% surge in international MAU and the concentration of new paid subscribers in high-ARPPU regions signal strong potential for further revenue diversification beyond China. As Hong Kong-listed technology companies face intensifying competition in the AI space, Meitu's ability to achieve simultaneous growth in users, revenue, and profitability positions it as a notable performer in the sector.
Meitu's impressive first-half results underscore the company's successful pivot toward AI-powered imaging and design tools, with international markets emerging as a critical growth engine. The 80% surge in international MAU and the concentration of new paid subscribers in high-ARPPU regions signal strong potential for further revenue diversification beyond China. As Hong Kong-listed technology companies face intensifying competition in the AI space, Meitu's ability to achieve simultaneous growth in users, revenue, and profitability positions it as a notable performer in the sector.