Summary of Meitu Inc. Conference Call Company Overview - **Company**: Meitu Inc (1357.HK) - **Industry**: Greater China IT Services and Software - **Current Stock Price**: HK$9.57 (as of September 18, 2025) - **Market Capitalization**: RMB 40,270 million - **52-Week Price Range**: HK$2.04 - HK$12.56 - **Stock Rating**: Overweight [6][65] Key Takeaways - **DesignKit Launch**: Meitu's DesignKit has been launched on Amazon, qualifying to enter the Amazon Solution Provider Network (SPN), which allows it to serve e-commerce merchants, particularly cross-border merchants from China. This is seen as a positive development for DesignKit, which is a key productivity product for Meitu [9][4]. - **Revenue Growth Projections**: Revenue is projected to grow from RMB 3,341 million in FY 2024 to RMB 6,771 million by FY 2027, indicating a compound annual growth rate (CAGR) of approximately 30% [6]. - **Earnings Per Share (EPS)**: EPS is expected to increase from RMB 0.13 in FY 2024 to RMB 0.40 by FY 2027 [6]. - **EBITDA Growth**: EBITDA is forecasted to rise from RMB 584 million in FY 2024 to RMB 2,131 million by FY 2027 [6]. - **Valuation Methodology**: The company is valued using a 10-year Discounted Cash Flow (DCF) model, with a Weighted Average Cost of Capital (WACC) of 10.9% and a terminal growth rate of 3% [10]. Risks and Opportunities - **Upside Risks**: - Faster user penetration due to AI adoption and increased market share overseas - Higher-than-expected Average Revenue Per Paying User (ARPPU) - Improved operating leverage [12]. - **Downside Risks**: - Slower-than-expected growth in paying users - Increased R&D expenses related to AI development - Heightened competition from larger internet companies [12]. Financial Metrics - **Projected Revenue**: - FY 2024: RMB 3,341 million - FY 2025: RMB 4,021 million - FY 2026: RMB 5,120 million - FY 2027: RMB 6,771 million [6]. - **Projected EBITDA**: - FY 2024: RMB 584 million - FY 2025: RMB 1,040 million - FY 2026: RMB 1,504 million - FY 2027: RMB 2,131 million [6]. - **Projected P/E Ratios**: - FY 2024: 21.1 - FY 2025: 42.3 - FY 2026: 32.0 - FY 2027: 21.9 [6]. Conclusion Meitu Inc is positioned for significant growth, particularly through its DesignKit product and expansion into e-commerce via Amazon. The financial projections indicate strong revenue and EBITDA growth, although the company faces risks from competition and user growth dynamics. The current stock rating of Overweight suggests a favorable outlook for investors.

Group 1 - American Bank has initiated coverage on Meitu with a "Buy" rating and a target price of HKD 13.5, projecting a compound annual growth rate (CAGR) of 42% for adjusted net profit from 2024 to 2027 [1] - The report highlights that Meitu's global paid user rate is expected to rise due to the flywheel effect of AI, with productivity tools becoming a new growth driver for the company [1] - Revenue from Meitu's productivity tools is anticipated to grow at a CAGR of 58% to reach RMB 825 million by 2027, accounting for 14% of total revenue [1] Group 2 - As the paid user rate increases and productivity tools expand, subscription revenue is projected to account for approximately 80% of Meitu's total revenue by 2027, indicating higher revenue stability and visibility [1] - The improvement in subscription revenue share is expected to enhance gross margins and lower customer acquisition costs, leading to sustained profitability and profit expansion driven by operational leverage from subscription business [1] - On September 12, Meitu's stock rose over 5% following the announcement of a partnership with Alibaba's Tongyi Laboratory to enhance its products with advanced AI models [2] - The collaboration aims to provide a new intelligent imaging experience for Meitu's global users, leveraging AIGC technology for industrial applications in imaging, design, and film [2] - Prior to this, other institutions, including Dongfang Securities, have also issued "Buy" ratings for Meitu, with a target price of HKD 13.25 [2]

Core Viewpoint - Meitu Company (01357) has seen a stock increase of over 5%, currently trading at HKD 9.62 with a transaction volume of HKD 495 million, following a partnership announcement with Alibaba's Tongyi Laboratory to enhance its products with advanced AI models [1] Group 1: Partnership and Collaboration - Meitu has partnered with Alibaba's Tongyi Laboratory, utilizing the Tongyi Wanshang series AI models to provide a new intelligent imaging experience for global users [1] - The collaboration aims to explore further innovative possibilities in the future [1] Group 2: Industry Insights - According to Dongfang Securities, the image editing sector benefits from significant advancements in diffusion models for generative tasks, providing foundational support for product innovation [1] - Meitu's accumulation of technical and aesthetic data positions the company to capitalize on technological dividends [1] Group 3: Product Development - The company is accelerating product version iterations and new feature launches, with a notable increase in the proportion of AI functionalities [1]

Core Viewpoint - Meitu Inc. has seen a stock price increase of over 5%, currently trading at 9.62 HKD with a transaction volume of 495 million HKD, following a partnership announcement with Alibaba's Tongyi Laboratory to enhance its products with advanced AI models [1] Group 1: Partnership and Collaboration - Meitu has entered into a collaboration with Alibaba's Tongyi Laboratory, which will utilize the Tongyi Wanshang series of AI models to provide a new intelligent imaging experience for Meitu's global users [1] - The partnership aims to explore further innovative possibilities in the fields of imaging, design, and film through the industrialization of AIGC technology [1] Group 2: Market and Technology Insights - According to Dongfang Securities, the image editing sector is benefiting from significant advancements in diffusion models for generative tasks, providing foundational support for product innovation [1] - Meitu's accumulation of technical and aesthetic data positions the company to capitalize on technological dividends, with accelerated product version iterations and a notable increase in AI feature integration [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不會就因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承 擔任何責任。 Meitu, Inc. 美图公司 （於開曼群島註冊成立的有限公司，並以「美圖之家」名稱於香港經營業務） (股份代號:1357) 於二零二五年九月十日（星期三）舉行的特別股東大會的 投票表決結果 參考美图公司（「本公司」）日期為二零二五年八月二十五日的通函（「通函」）及特別股 東大會通告（「大會通告」）。除非文義另有所指，否則本公告所用詞彙與通函所界定者具 有相同涵義。 特別股東大會的投票表決結果 董事會宣佈本公司於二零二五年九月十日（星期三）上午11 時正（香港時間）在香港九龍柯 士甸道西一號環球貿易廣場香港麗思卡爾頓酒店8樓碧玉廳舉行的特別股東大會上，大會通 告所載的第一項建議決議案（「第一項決議案」）已獲股東以投票表決方式正式通過。有關 決議案的詳情，股東可參考大會通告和通函。 投票表決結果如下： | | 普通決議案 | 票數 （概約百分比） | | | --- | --- | --- | --- ...

Summary of Meitu Inc. Conference Call Company Overview - **Company**: Meitu Inc (1357.HK) - **Industry**: Greater China IT Services and Software - **Current Stock Rating**: Overweight (OW) - **Price Target**: HK$15.70, representing a 33% upside from the closing price of HK$11.82 on August 29, 2025 [6][9][10] Key Points and Arguments 1. **Growth Trajectory**: Meitu's growth is considered intact despite competition from new AI models like Google's Nano Banana. The evolution of AI models is expected to enhance Meitu's AI features [1][15]. 2. **AI Model Neutrality**: Meitu has adopted a model-neutral approach, integrating various AI capabilities into its offerings, including the recent incorporation of Google Nano Banana into its international products [9][15]. 3. **Last Mile Value**: The company emphasizes the importance of delivering the "last mile" in AI applications, which involves optimizing outcomes that general AI models cannot fully achieve. This complexity creates a high entry barrier for competitors [9][16]. 4. **Focus on Non-Professional Scenarios**: Meitu targets non-professional leisure and productivity scenarios, particularly in e-commerce design, allowing it to accumulate specialized knowledge and optimize user experience [16][19]. 5. **Data Utilization**: The company has amassed significant vertical data, which it uses for post-training its models, resulting in better performance compared to general AI models [16][19]. 6. **Core vs. Gameplay Features**: Meitu's core features, such as AI face retouching, drive user subscriptions, while gameplay features attract users for fun. The company believes it can integrate new AI models to enhance gameplay features without compromising its core offerings [16][19]. Financial Metrics - **Revenue Projections**: Expected revenue growth from Rmb3,341 million in FY 2024 to Rmb6,771 million by FY 2027 [6]. - **EBITDA Projections**: Anticipated increase from Rmb584 million in FY 2024 to Rmb2,131 million by FY 2027 [6]. - **Earnings Per Share (EPS)**: Projected EPS growth from Rmb0.13 in FY 2024 to Rmb0.40 by FY 2027 [6]. Risks and Considerations 1. **Upside Risks**: Faster penetration of paying users due to AI adoption, higher-than-expected average revenue per paying user (ARPPU), and improved operating leverage [25]. 2. **Downside Risks**: Slower growth in paying users, increased R&D expenses for AI development, and intensified competition from larger internet companies [25]. Additional Insights - **Market Reaction**: Meitu's share price dropped 14% following the viral success of Google's Nano Banana, raising concerns about AI cannibalization of software [9][10]. - **Strategic Partnerships**: Meitu has partnered with Alibaba to enhance its e-commerce design capabilities, leveraging private data for better AI model training [16][19]. This summary encapsulates the essential insights from the conference call regarding Meitu Inc.'s strategic positioning, financial outlook, and market dynamics.

Core Insights - The company has experienced significant growth in its imaging and design business, with revenue increasing by 45.2% year-on-year to 1.351 billion CNY, while advertising revenue grew by 5.1% to 434 million CNY, together accounting for 98% of total revenue [1] - The overall gross margin improved by 4.9 percentage points to 73.6%, and the adjusted net profit attributable to shareholders rose by 71.34% to 470 million CNY, aligning with voluntary announcement expectations [1] - The company is focusing on solid development of vertical models, leveraging AI to boost domestic user growth and sustain international user expansion, with monthly active users (MAU) increasing by 8.6% year-on-year to 280 million [2] Revenue and Profitability - The imaging and design business revenue reached 1.351 billion CNY, reflecting a 45.2% increase year-on-year, while advertising revenue was 434 million CNY, up 5.1% [1] - The adjusted net profit attributable to shareholders was 470 million CNY, marking a 71.34% year-on-year increase [1] - The overall gross margin improved to 73.6%, up 4.9 percentage points [1] User Growth and Market Expansion - The company reported a 42.5% year-on-year increase in subscription users, reaching 15.4 million, with a penetration rate of 5.5% [2] - Domestic MAU grew by 5.2% year-on-year to 182 million, while international MAU increased by 15.7% to 98 million [2] - The growth in international users is attributed to localized strategies and collaborations with local KOLs [2] Strategic Initiatives - The company is enhancing its AI product capabilities through the integration of third-party multimodal models and proprietary fine-tuning [2] - New AI design agent "RoboNeo" is being introduced for innovative editing and design interactions [2] - A collaboration with Alibaba is expected to be signed within the year, promoting e-commerce applications and vertical AI development [2]

Investment Rating - The investment rating for the company is "Buy" with a target price of 12.11 HKD, maintaining the rating from previous assessments [4]. Core Insights - The company's revenue from imaging and design business continues to grow, with a year-on-year increase of 45.2% to 1.351 billion RMB in the first half of 2025. Advertising revenue also saw a growth of 5.1% to 434 million RMB, together accounting for 98% of total revenue [1][10]. - The overall gross margin improved by 4.9 percentage points to 73.6%, and the adjusted net profit attributable to shareholders increased by 71.34% to 470 million RMB, aligning with voluntary announcement expectations [1][12]. - The company is focusing on AI-enabled applications in imaging and design, enhancing its product matrix to meet diverse creator needs, and has launched the AI design agent "RoboNeo" to innovate productivity tools [3][10]. Summary by Sections 1. Imaging and Design Core Business Optimization - The imaging and design product revenue is on a continuous rise, with a strategic adjustment in the beauty and other business sectors. The revenue from imaging and design reached 1.351 billion RMB, while advertising revenue was 434 million RMB, making up 98% of total revenue [1][10]. - The company is leveraging AI capabilities to enhance product offerings, focusing on both consumer and business segments, including KOLs and small enterprises [10]. 2. Overseas Strategy and Productivity Tool Layout - The company has seen a significant increase in Monthly Active Users (MAU), with an 8.6% year-on-year growth, reaching 280 million. The number of subscription users rose by 42.5% to 15.4 million, with a subscription penetration rate of 5.5% [2][15]. - The MAU in the domestic market grew by 5.2% to 182 million, while overseas MAU increased by 15.7% to 98 million, driven by localized strategies and collaborations with local KOLs [16]. - The productivity tools are entering a growth phase, with a 90% year-on-year increase in MAU and even faster growth in paid users [16].

Summary of Meitu Company Conference Call Company Overview - **Company**: Meitu Company - **Industry**: Image editing and design software Key Financial Metrics - **Revenue**: - 2024 revenue reached 3.3 billion (33 亿), a year-on-year increase of 29% - 1.8 billion (18 亿) in the first half of 2025, a year-on-year increase of 6% [2] - **Gross Margin**: - 69% in 2024, expected to rise to 74% in the first half of 2025, with a target of around 80% in the future [2][7] - **Net Profit**: - Adjusted net profit of 590 million (5.9 亿) in 2024, up 59% year-on-year - 470 million (4.7 亿) in the first half of 2025, up 71% year-on-year [2][8] - **Net Profit Margin**: - Increased from 18% in 2024 to 26% in the first half of 2025 [8] User Engagement - **Monthly Active Users (MAU)**: - Grew from 270 million (2.7 亿) at the end of 2024 to 280 million (2.8 亿) in the first half of 2025, a year-on-year increase of 7% [2][6] - **Paid Users**: - Increased from 12.61 million (1,261 万) in 2024 to 15.4 million (1,540 万) in the first half of 2025 [6] - **Payment Rate**: - Rose from 4.7% in 2024 to 5.5% in the first half of 2025, indicating increased user willingness to pay [2] Business Segments - **Core Business**: - Image and design products accounted for 62% of revenue in 2024 and 74% in the first half of 2025, with a strong growth rate of 44% [2][6] - **Non-Core Business**: - Significant reduction in beauty services, with a nearly 90% decline, impacting overall revenue growth [6] Competitive Landscape - **Market Position**: - Meitu Xiuxiu holds a 56% market share in image editing, followed by ByteDance's Xinkit with about 30% [4] - In video editing, Meitu has seen MAU surpass competitors, with a market share second only to ByteDance's Jianying [4][5] - **AI Integration**: - AI technology has lowered operational barriers, enhancing Meitu's competitive edge in B-end markets [4][11] Future Development Focus - **Key Areas**: - Increasing domestic payment rates, expanding overseas MAU, and leveraging AI technology for B-end market expansion, particularly in e-commerce [2][9] - **AI Applications**: - New AI features include AI model generation and product image creation, targeting the creator economy [15][20] Market Potential - **Overseas Market**: - The overseas market is fragmented, presenting opportunities for Meitu to capture a larger share, with potential MAU doubling if market share reaches 10%-20% [14] - **Pricing Strategy**: - Higher pricing for overseas products compared to domestic offerings, enhancing revenue potential [14] Profitability Outlook - **Future Profit Projections**: - Expected adjusted net profits of over 1 billion (10 亿) and around 1.4 billion (14 亿) for 2025 and 2026, respectively, with a compound annual growth rate exceeding 50% [22]

FF301 致：香港交易及結算所有限公司 公司名稱: 美图公司 (於開曼群島註冊成立的有限公司，並以「美圖之家」名稱於香港經營業務) 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01357 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 6,000,000,000 | USD | 0.00001 | USD | | 60,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | | | 本月底結存 | | | 6,000,000,000 | USD | 0.00001 | USD | | 60,000 | 本月底法定/註冊股本總額： USD 60,000 第 1 頁 共 10 頁 v 1.1.1 股份發行人及根據《上市規 ...