Hong Kong-listed beauty app Meitu said on Friday it is expecting a net loss of up to 349.9 million yuan (US$52 million) in the first half of 2022, driven by tumbling cryptocurrency prices.
See related article: Hong Kong-listed Meitu buys more Bitcoin, now has US$100 million in crypto
Fast facts
- Meitu, best known for its mobile beauty camera app, was one of the first Hong Kong-listed Chinese companies to publicly announce its crypto investments.
- Meitu said it could see a 154% year-on-year jump in net loss over the first half of 2022.
- Meitu’s estimates are unrealized losses as the firm has not sold its cryptocurrencies since accumulating 31,000 ETH and 940.89 BTC from March 2021, the firm said.
- Meitu said crypto losses will not affect its cash flow or operations and that it still believes digital assets will appreciate in the long term.
- On Monday morning Asia time, Meitu’s shares on the Hong Kong Stock Exchange fell as low as HK$0.97, down about 6% from last Friday’s HK$1.04 (US$0.13) per share.
See related article: Software firm Meitu loses US$17.3M on Bitcoin