Shares of MEITU (HKEX: 01357) experienced a sharp decline on September 15, closing at HK$3.88 per share, down 8.06%, bringing the company's total market capitalization to HK$17.54 billion. The drop came amid market speculation that the company's founder, chairman, and CEO, Wu Zeyuan (also known as Wu Xinhong), had sold or intended to sell his stake in the firm.

In response, MEITU issued a voluntary announcement on the same day stating that Wu Zeyuan has never sold any company shares and has no plans or intentions to sell or otherwise reduce his holdings. Instead, the founder chose to increase his position to counter the market rumors, purchasing 1 million shares at an average price of HK$3.899 per share, totaling HK$3.899 million.

Following this transaction, Wu's shareholding in MEITU rose from 595 million to 596 million shares, increasing his stake from 12.97% to 12.99%. Since May 10, 2018, Wu has made multiple purchases of MEITU shares, with his cumulative additions now totaling 6.58 million shares, including the latest acquisition. Wu indicated that given the company's accelerating product innovation and long-term growth potential, he does not rule out further increasing his stake at appropriate times.

Where the growth is coming from

The announcement also revealed that Wu reiterated to the MEITU board his belief that the company possesses strong business fundamentals. Founded in 2008 and listed on the Hong Kong Stock Exchange Main Board in 2016, MEITU focuses on creating world-class imaging products, with its operations divided into three segments: imaging and design products, advertising, and others.

The imaging and design products segment serves as the primary revenue growth engine for MEITU. In the first half of 2026, revenue from this segment grew 30.9% year-over-year to RMB 1.769 billion, accounting for 79.9% of total revenue. This segment is further split into productivity tools—including Meitu Design Studio, Kaipai, and Meitu Cloud Retouch—which are seen as future growth drivers, and applications for lifestyle scenarios.

During the first half of 2026, revenue from MEITU's productivity applications reached approximately RMB 323 million, reflecting a 40.1% increase year-over-year (excluding the exited licensed image library business), representing over 18% of the imaging and design products segment's revenue.

Currently, MEITU is optimistic about opportunities in the AI application layer. Wu previously stated that the company aims not only to accelerate the iteration of existing products but also to efficiently identify and validate new opportunities. He expressed a desire to gradually connect three key areas: AI content creation, AI content distribution, and AI asset accumulation, starting with scenarios that show clear demand and positive signals.

Building on its deep focus in AI creation applications, MEITU plans to extend its business into AI content distribution and AI asset libraries, constructing a complete content ecosystem for the AI era. Wu noted that the company will continue to deepen its existing products and vertical scenarios while proactively seeking and rapidly validating new growth directions through more efficient innovation mechanisms. This approach balances growth quality with operational efficiency to drive sustainable development.

Financially, MEITU reported an adjusted net profit attributable to shareholders of RMB 650 million for the first half of 2026, up 39.5% year-over-year.