Meitu's AI Revolution Fuels 59% Profit Surge Amid Founder Share Sale and B-Market Expansion Plans

In 2024, Meitu achieved a remarkable financial performance, driven by the integration of AI technology. The company reported a significant increase in net profit, reaching RMB 5.86 billion, which represents a 59.2% growth compared to the previous year. This financial boost reflects Meitu's strategic focus on AI-enhanced imaging and design products.

The imaging and design product segment emerged as Meitu's largest revenue contributor, with an income surge of 57.1% to RMB 20.9 billion. The company's paid subscription users also rose by 38.4%, totaling 12.61 million. This growth evidences the popularity and acceptance of Meitu's offerings among users. Concurrently, advertising revenue grew 12.5% to RMB 8.5 billion, whereas the beauty solutions segment experienced a decline in revenue by 32.4%, prompting a cautious outlook for its future development.

Looking forward, Meitu identifies the B-end market as its next growth horizon, with plans to witness substantial expansion by 2026. The company is focusing on productivity tools for business design and professional video editing, both of which have gained considerable traction among users. Products like "Meitu Design Studio" and "Kaipai" are attracting significant user engagement, with AI features continually enhancing functionality and driving rapid revenue growth.

Notably, founder Cai Wensheng's recent share reduction has drawn public attention. In February 2025, Cai sold 128 million shares, amounting to over HKD 7.8 billion in cash, reducing his stake to 20.62%. CEO Wu Xinhong assured during the earnings call that Cai's decision was personal and would not impact company operations, maintaining confidence in the company's trajectory.

As Meitu navigates its current landscape, it faces both challenges and opportunities. The focus remains on consolidating its market share and expanding into the B-end market while leveraging AI technology as a crucial growth driver. Investors should keep a watchful eye on how Meitu's technological advancements and market strategies unfold, potentially revealing greater potential in the imaging and automotive sectors.