Meitu H1 2026 Financial Report: AI productivity applications continue to break through, net profit up 39.5% year-on-year

On August 26, 2026, Meitu (1357.HK) released its financial report for the first half of 2026: Total revenue from continuing operations amounted to RMB 2.21 billion, a year-on-year increase of 22.1%. Adjusted net profit attributable to equity holders of the parent company reached RMB 650 million, up 39.5% year-on-year.

Wu Xinhong, Founder, Chairman, and CEO of Meitu, stated that in the first half of 2026, Meitu's deepening engagement in vertical scenarios gradually yielded results, driving rapid growth in core businesses and further enhancing profitability.

Revenue from imaging and design products rose 30.9% year-over-year

Paid subscribers surpassed 18.44 million, hitting a new high

In the first half of 2026, Meitu's imaging and design products maintained a strong growth trend, with revenue rising 30.9% year-on-year to RMB 1.77 billion, accounting for 80% of total revenue.

The revenue growth in this core business was primarily driven by the continuous expansion of the paid subscription user base and an increase in ARPPU. As of the end of June 2026, Meitu's number of paid subscription users exceeded 18.44 million, a year-on-year increase of 19.7%. The subscription penetration rate stood at 6.5%.

Lifestyle applications had 16.09 million paid subscribers, up 18.8% year-on-year. Among these, Meitu Xiuxiu has long held the top spot in China's photo editing sector by user base, while BeautyCam has consistently led the photography and videography sector. Wink, an AI-powered video editing app, has gained popularity among domestic and international users thanks to its technological advantages in AI portrait retouching and video quality enhancement.

Productivity applications recorded 2.35 million paid subscribers, a 29.8% year-on-year increase. As productivity app users deepened their engagement with AI visual creation workflows, total consumption of AI computing power points increased by over 46% quarter-on-quarter in both Q1 and Q2, resulting in a cumulative semi-annual growth of approximately 113%.

Annual Recurring Revenue (ARR) for productivity applications was approximately RMB 620 million

Monthly Active Users (MAU) increased by 43.5% year-over-year to 33 million

As of the end of June 2026, the MAU for Meitu's productivity applications reached 33 million, a 43.5% year-on-year increase, setting a new historical high. The ARR for productivity applications was approximately RMB 620 million.

Representative productivity applications such as Meitu Design Studio, Kaipai, and Vmake Labs continue to deliver high-quality results to users through AI-driven workflows.

Meitu Design Studio focuses on e-commerce design workflows. The Agent Teams feature, upgraded in June 2026, enables users to rapidly generate visual assets ready for immediate deployment across multiple e-commerce platforms. Currently, thousands of Meitu Design Studio users have an annualized spending level approximately 10 times the company's overall ARPPU.

Kaipai specializes in workflows for talking-head videos and marketing video production, while continuously expanding into high-value industries such as healthcare, education and training, beauty services, insurance, and real estate. As of the end of June 2026, Kaipai's MAU grew over 100% year-on-year, its paid subscriber base increased by more than 150%, and its ARR rose by over 100%.

Vmake Labs continues to expand across North America, Europe, and South America, with strengthening user appeal and monetization capabilities. As of the end of June 2026, Vmake Labs' MAU increased by over 54% year-on-year, and its ARR reached approximately USD 5 million.

Currently, the ARPPU for productivity applications is approximately 50% higher than that for lifestyle scenario applications. Productivity applications are expected to become a key growth driver for Meitu in the next phase.

New products launched at the Meitu Imaging Festival have been validated by the market

MVLAND and Picchi are opening up growth opportunities

In June 2026, the Meitu Image Festival launched several AI-native products, including MVLAND and Picchi. The ARR for both products has currently surpassed USD 500,000.

MVLAND is an AI-powered music video creation platform that precisely translates musical rhythm and emotion into visual imagery through a Music Analysis Agent and a Creative Canvas. It is highly popular among musicians and content creators. Leveraging a professional and comprehensive MV creation workflow, MVLAND currently sees an average monthly spending of approximately RMB 220 per paying subscriber, which annualizes to about 13 times the company's overall ARPPU.

Picchi is an AI agent for portrait retouching, offering three core capabilities: 'Learn My Retouching,' 'Learn Their Retouching,' and 'Batch Precision Retouching.' It provides efficient visual support for creators and KOLs, aiding their content production, brand building, and commercial monetization. Recently, driven by its innovative 'Learn Their Retouching' feature, Picchi has seen sustained growth in popularity in Japan, South Korea, and Thailand.

The market performance of these new products validates Meitu's ability to transform AI technology into high-value AI-native products. Currently, Meitu is leveraging its AI Innovation Studio and the Meitu Hatch Catch product challenge to continuously advance new product incubation and intensify efforts to identify high-potential talent.

Global Monthly Active Users (MAU) reached 282 million

The majority of new overseas paid users come from regions with high Average Revenue Per Paying User (ARPPU)

In the first half of 2026, Meitu steadily advanced its globalization strategy, with global MAU reaching 282 million. MAU in markets outside mainland China remained stable at over 100 million.

Among global paying subscribers, the growth rate in markets outside mainland China was approximately twice that of mainland China. New overseas paying subscribers mainly originated from high-ARPPU regions, including East Asia, Latin America, and Europe.

Growth in productivity applications has been particularly rapid in markets outside mainland China, with monthly active users (MAU) rising more than 80% year-on-year and paid subscribers continuing to show strong growth.

Meitu is currently further enhancing the depth and standards of its global operations. On one hand, it continues to deepen its presence in international markets, gaining a better understanding of local user preferences and needs in regions such as the United States, Japan, South Korea, Southeast Asia, as well as key future expansion markets like Brazil and Mexico. At the same time, the company is exploring an operational structure better suited for global development by regrouping markets with similar aesthetic preferences and user demands to enable more efficient replication of best practices.

Wu Xinhong, Founder, Chairman, and CEO of Meitu, stated that the company will continue to seize the development window for AI applications, driving sustainable growth while balancing growth quality and operational efficiency. Building on its deep engagement in AI creation tools, Meitu will further extend its capabilities into areas such as AI content distribution and AI asset libraries, enabling content to be created, circulated, and archived within the Meitu ecosystem, thereby constructing a complete content value chain for the AI era.

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