Meitu, a prominent Hong Kong-listed company that was once actively involved in cryptocurrencies, has announced a strategic shift towards its artificial intelligence (AI) business. This move comes after the company made headlines in 2021 for investing around $100 million in digital assets like Bitcoin and Ethereum. The decision to focus on AI is attributed to the changing global economic environment and the opportunities it presents.
Meitu’s senior investor relations manager, Kang Yicong, confirmed that the company is no longer interested in buying and holding digital assets and may consider selling them in the future. This shift in strategy is a response to the evolving spending habits of companies worldwide. Kang explained that this change has created an opening for Meitu’s products to gain traction in the market.
Meitu’s subscription system has played a significant role in its turnaround from losses to profitability. This system has shielded the company’s earnings from the volatile macroeconomic landscape. Additionally, Meitu’s AI business has been a major growth driver, attracting new subscribers and contributing to profits.
Currently, Meitu is focusing on video production, which complements its AI ventures. In October 2023, the company unveiled MiracleVision 3.0, an enterprise AI vision solution that capitalizes on the global AI craze. Kang highlighted the pivotal role of AI in Meitu’s future development, particularly in expanding its subscription base and generating profits.
Meitu’s experience in the cryptocurrency market involved significant initial losses. However, recent market recoveries have allowed the company to reverse approximately 190 million yuan in impairment losses related to its cryptocurrency holdings. Kang clarified that Meitu stopped purchasing cryptocurrencies after 2021, emphasizing that it was a strategic decision.
Looking ahead, Meitu is optimistic about the overseas market, especially regarding the growing demand for its AI-powered painting and other functions. The company plans to design and launch products from a global perspective, targeting regions such as Southeast Asia, Japan, South Korea, Europe, and the United States. Meitu intends to adapt its local development strategies to each region’s unique needs and conditions.
In conclusion, Meitu’s strategic shift towards its AI business highlights the company’s response to changing global economic conditions. The decision to move away from digital assets like Bitcoin and Ethereum opens up new opportunities for Meitu’s products. With its subscription system and AI ventures driving growth, Meitu is poised to expand its presence in the market and capitalize on the overseas demand for its AI-powered offerings.
