Meitu (1357), the pioneering Hong Kong-listed company known for its ventures into cryptocurrencies, recently announced a strategic shift away from digital assets like Bitcoin and Ethereum.
The company, which made headlines in 2021 for investing around $100 million in cryptocurrencies, revealed that its growth is now primarily driven by its artificial intelligence (AI) business.
Meitu Credit Subscription System for Tax Success
Kang Yicong, Meitu’s senior investor relations manager, recently confirmed that the company is no longer focused on buying and holding digital assets and may consider selling them in the future. She said the move was driven by the changing global economic environment, which has prompted many businesses to rethink their spending habits. This change, in turn, has created an opportunity for Meitu products to gain traction in the market.
Kang Yicong said the company’s return from losses to profitability is largely attributed to its subscription system, which protected its profits from the volatile macroeconomic landscape. Additionally, Meitu’s AI business has been a significant growth driver by attracting new subscribers and contributing to profits.
Meitu’s current strategic focus lies in video production, complementing its business in AI. In early October 2023, the company unveiled its enterprise AI vision solution, MiracleVision 3.0, capitalizing on the global AI excitement sparked by technologies like ChatGPT. Kang Yicong emphasized that AI is expected to play a central role in the company’s development, including expanding its subscription base and contributing to profits.
Meitu’s $100 million crypto investment journey
Meitu’s experience in the cryptocurrency market involved considerable experience investment which initially suffered losses. However, the recent market recovery allowed the company to reverse approximately 190 million yuan of impairment losses related to its cryptocurrency holdings. Kang Yicong clarified that Meitu stopped purchasing cryptocurrencies after 2021, citing the move as strategic.
Looking ahead, Kang Yicong expressed optimism in the overseas market, with growing demand for Meitu’s painting and other AI-powered functions. The company intends to design and launch products from a global perspective, initially targeting Southeast Asia, Japan, South Korea, Europe and the United States. Local development strategies will be tailored to fit the unique conditions and demands of each region.