Hong Kong-based technology company Meitu recently announced a transition from loss to profit in its financial performance.
Meitu Focuses on Subscription Model and Artificial Intelligence Growth in Developing Market Conditions
According to Meitu's Senior Investor Relations Manager Angela Kang, a significant portion of this profitability can be attributed to the company's subscription model, which protects revenue from significant fluctuations resulting from macroeconomic changes.
In addition, the emerging AI industry has played a key role in Meitu's recent growth, not only by increasing subscriptions but also by providing a steady contribution to profits.
Regarding the highly anticipated cryptocurrency investments, Kang explained that the company is considering a sale at an appropriate time, but there are no concrete plans to divest at the moment.
In 2021, during the cryptocurrency bull market, Meitu invested $100 million in assets such as Bitcoin and Ethereum.
Subsequently, the relevant assets entered a downward trend, leading to significant losses for Meitu. However, with the recent revival in the crypto market, Meitu made a profit by recouping approximately CNY 190 million from the depreciation of its holdings of cryptocurrencies.
Kang explained that the initial cryptocurrency purchases were strategic decisions and that the company has neither made any other acquisitions nor carried out any transactions in this regard since 2021. He emphasized that there are no specific plans for divestment at this time.
*This is not investment advice.
