MEITU founder Wu Xinhong: Seeking incremental growth in the AI application layer, not pursuing past "blockbusters"

On the afternoon of December 16, it was reported that Wu Xinhong, the founder and chairman of MEITU, stated during a media dialogue that MEITU is a non-typical participant in the generative AI competition. Compared to other companies, MEITU places greater importance on aesthetic standards and the effects of images and design. "With better aesthetic effects, at least in the fields of images and design, we will be more recognized," Wu Xinhong emphasized. MEITU aims to continue exploring at the application level and become an AI application company, rather than focusing on developing AGI. MEITU's advantage lies in having served a large user base over the past 16 years, possessing numerous application scenarios that can quickly implement and commercialize generative AI technology. Wu Xinhong stated that MEITU must seize the window period for AI applications, as current AI applications are closer to the industry and also closer to revenue, but will also face some impacts. To cope, it is essential to deepen product development and create products for the industry. "Choosing the path of AI applications means that MEITU needs to explore areas it was not good at in the past, seeking incremental space rather than staying in the fields it excelled in over the past decade, such as single-point blockbuster products." In the first half of 2024, MEITU's image and design product business, primarily based on paid subscriptions, achieved revenue of 930 million yuan, a year-on-year increase of 54.5%, accounting for 57.4% of total revenue. The generative AI technology is the main reason driving the rapid increase in paid subscription penetration and significant growth in paid subscription revenue