Core Insights - Meitu's revenue growth has significantly slowed in the first half of 2025, achieving a revenue of 1.82 billion RMB, a 12.3% increase year-on-year, compared to 28.6% in the previous year [1][2] - The company reported a net profit of 397 million RMB, reflecting a 30.8% year-on-year increase, while adjusted net profit reached 467 million RMB, up 71.3% [1][2] - The shift in revenue structure is notable, with the imaging and design products segment showing a substantial increase of 45.2% to 1.35 billion RMB, while the beauty solutions segment saw a drastic decline of 88.9% [2][3] Revenue Breakdown - For the first half of 2025, revenue from imaging and design products accounted for 74.2% of total revenue, up from 57.4% in 2024 [4] - Advertising revenue increased by 5% to 433 million RMB, while beauty solutions revenue dropped to 30 million RMB, contributing only 1.7% to total revenue [2][4] - The overall gross profit for the first half of 2025 was 1.34 billion RMB, with a gross margin of 73.6%, an increase of 8.7 percentage points from the previous year [2][5] Strategic Focus - The company has been focusing on core business areas by reducing non-core operations, which has led to a significant increase in the contribution of imaging and design products to total revenue [3][5] - Meitu's management has implemented organizational changes to enhance decision-making speed and competitiveness in response to the opportunities and challenges posed by AI technologies [5] - The number of global monthly active users reached 280 million, with a 42% increase in paid subscription users, indicating a growing monetization strategy [5]

Core Viewpoint - Meitu's revenue growth has significantly slowed in the first half of 2025 compared to previous years, despite still achieving double-digit growth in both revenue and net profit [2][3]. Financial Performance - In the first half of 2025, Meitu reported a revenue of 1.82 billion RMB, a year-on-year increase of 12.3%, and a net profit of 397 million RMB, reflecting a 30.8% growth [3][5]. - Adjusted net profit reached 467 million RMB, marking a substantial increase of 71.3% compared to the previous year [3]. Revenue Breakdown - The revenue from imaging and design products was 1.35 billion RMB, showing a significant increase of 45.2% year-on-year, while advertising revenue grew by 5% to 433 million RMB [3][4]. - Revenue from beauty industry solutions plummeted by 88.9% to 30 million RMB, and other revenues decreased by 12.4% to 6 million RMB [3][4]. Business Focus and Strategy - Meitu has shifted its focus towards core imaging and design products, which accounted for 74.2% of total revenue in the first half of 2025, up from 57.4% in the previous year [4][5]. - The company has reduced its non-core business activities, particularly in the beauty industry solutions segment, which saw a significant decline in revenue [4][6]. User Engagement and Growth - As of June 30, 2025, Meitu's global monthly active users reached 280 million, an increase of 8.5% year-on-year, with paid subscription users growing over 42% to 15.4 million [6]. - The paid user penetration rate stands at 5.5%, contributing to the overall revenue growth [6]. Profitability Metrics - Meitu's gross profit for the first half of 2025 was 1.34 billion RMB, a year-on-year increase of 27.3%, with the gross margin rising from 64.9% to 73.6% [6].