Meitu (01357) predicts that adjusted net profit to mother in the medium term may achieve a 36% to 40% year-on-year increase

Zhitong Finance App News, Meitu (01357) announced that as of June 2026, the number of monthly active users (MAU) reached about 282 million, of which MAU from productivity apps reached a record high of 33 million. At the same time, MAU from lifestyle apps has generally remained stable.

As of June 2026, the number of paid subscribers continued to grow steadily and surpassed 18.44 million. Among them, the number of paid subscribers from productivity apps increased 29.8% year over year to 2.35 million, and the number of paid subscription users from lifestyle apps increased 18.8% year over year to 16.09 million.

As of June 2026, ARR for AI productivity applications was approximately RMB 620 million, an increase of 47.8% over the previous year. Among them, ARR at the start of production and Vmake increased by 2 and 3 times over the same period last year, respectively, while MVLAND, as one of the Group's new products, ARR doubled in just three months after its launch. Furthermore, the total consumption of AI computing power points by users achieved a month-on-month increase of more than 46% in the first quarter and the second quarter of 2026, and the growth rate further accelerated in the second quarter, reflecting the continued deepening of users' use of AI visual creative workflows.

For the six months ended June 30, 2026, the Group's main business revenue (unaudited) increased by 30.9% year-on-year to approximately RMB 1.8 billion, of which revenue from productivity applications increased 40.1% year-on-year, accounting for more than 18% of the revenue from imaging and design products. Since the Group is already in the publishing rights library business before the end of 2025, the above year-on-year growth rate is calculated on a comparable scale, excluding the revenue contribution of the business for the six months ending June 30, 2025 (RMB 27 million), which more accurately reflects the growth trend of productivity applications. Revenue from lifestyle applications increased by 32.3% year-on-year, accounting for about 82% of revenue from imaging and design products, reflecting the Group's continuous improvement in monetization capabilities and the steady progress of its global strategy.

According to non-IFRS, adjusted net profit attributable to equity holders of parent companies for the six months ended June 30, 2026 (current period) is likely to increase by 36% to 40% year-on-year. This strong growth trend is mainly due to the increase in revenue from the Group's main business “Imaging and Design Products”, which is mainly driven by a continued increase in the number of paid subscription users and an increase in average revenue per paying user. Among them, the growth rate of paid subscribers from the international market continues to be higher than that of the mainland China market, confirming the effectiveness of the Group's globalization strategy. Driven by revenue growth, the gross profit growth rate exceeded the increase in operating expenses, and the resulting operating leverage effect increased the Group's profitability more than the increase in gross profit.

The adjusted net profit attributable to equity holders of the parent company excludes certain non-cash and non-operating items (such as equity incentives, changes in fair value of the Group's short-term and long-term investments, etc.). After considering all non-cash and non-operating items, net profit attributable to equity holders in the parent company is expected to increase by no less than 35% in the six months ended June 30, 2025 in accordance with IFRS.