Meitu Inc. (1357.HK) reported H1 2026 revenue of 2.21 billion yuan ($328.8 million), up 22.1% year-over-year, while adjusted net profit attributable to equity holders rose 39.5% to 650 million yuan ($96.7 million). Imaging and design product revenue increased 30.9% to 1.77 billion yuan, or 80% of total revenue, supported by a larger paid subscriber base and higher average revenue per user. Paid subscribers surpassed 18.44 million by the end of June 2026, up 19.7%, while productivity app monthly active users reached a record 33 million, up 43.5%. AI compute points (usage-based payments for intensive AI features) emerged as a separate revenue stream, with consumption rising approximately 113% cumulatively in the first half and more than 46% quarter-over-quarter in both Q1 and Q2. Meitu's stock has nevertheless fallen 37% year-to-date, reflecting concerns that improving large models could erode application-layer advantages. Analysts say the company is benefiting from AI in the short term, but still must prove that its productivity tools and AI services can create a durable second growth curve.