Meitu Returns to IPO Price with AI Imaging and Alibaba Boost

• Meitu reclaims 2016 IPO price after launching new AI Agent.
• Strategic $250M partnership with Alibaba drives AI and e-commerce synergy.
• Focused AI imaging strategy outperforms past diversification attempts.

Meitu, a Chinese imaging software firm, saw its shares rise nearly 3 percent to HK$8.5 on June 25, reclaiming its 2016 IPO price for the first time in years. The surge follows Meitu’s announcement of a new AI Agent product, reinforcing its shift toward AI-powered imaging solutions.

Founded in 2008, Meitu initially gained fame through its photo-editing apps but faltered in diversifying into hardware and social platforms. The stock, once as low as HK$0.5, has now rebounded through a strategic pivot back to its core—imaging. Since 2020, Meitu has transitioned from an ad-based model to subscription revenue, leveraging AI tools to increase paid users and improve financial performance.

In May 2025, Meitu entered a strategic partnership with Alibaba, issuing $250 million in convertible bonds at a 1 percent interest rate and a HK$6.00 conversion price. Beyond capital, the deal aligns Meitu’s AI capabilities with Alibaba’s cloud and e-commerce infrastructure, showcasing a new era of tech synergies over equity control.

Also Read: Alibaba Expands Cloud Presence in South Korea, Eyes AI Growth

Meitu’s turnaround is underscored by impressive engagement metrics—1.6 billion monthly photo edits and 1.35 billion registered users. Its MT Lab, founded in 2010, placed Meitu ahead of the AI curve, helping the company capitalize on today’s AI surge.

The 19 percent stock rally following the Alibaba deal reflects renewed investor confidence in vertical AI strategies and highlights how data-rich user engagement is now a key asset. Meitu’s recovery exemplifies how focused innovation can outperform broad diversification in tech.