Meitu, the Hong Kong-listed company known for its ventures into cryptocurrencies, has recently announced a significant strategic shift. Instead of focusing on digital assets like Bitcoin and Ethereum, the company has redirected its attention to its artificial intelligence (AI) business. This decision comes after Meitu made headlines in 2021 for investing around $100 million in cryptocurrencies. Kang Yicong, senior investor relations manager of Meitu, confirmed that the company no longer buys and holds digital assets and may even consider selling them in the future. This new direction is a response to the changing global economic environment, which has forced many companies to rethink their spending habits.
Meitu’s pivot to AI has proven to be a wise move, as it has become the primary driver of the company’s growth. Kang Yicong highlighted the subscription system as a key factor contributing to Meitu’s turnaround from losses to profitability. This system has protected the company’s earnings from the volatile macroeconomic landscape. Moreover, Meitu’s AI business has played a significant role in attracting new subscribers and generating profits. The company’s current strategic focus lies in video production, which perfectly complements its venture into AI.
In early October 2023, Meitu unveiled its enterprise AI vision solution, MiracleVision 3.0. This release capitalizes on the global AI craze driven by innovative technologies like ChatGPT. Kang Yicong emphasized the importance of AI in Meitu’s future development, particularly in expanding the company’s subscription base and driving profits. The video production capabilities, combined with the power of AI, are expected to propel Meitu’s growth further.
Meitu’s experience in the cryptocurrency market initially faced losses due to a substantial investment. However, recent market recoveries have allowed the company to reverse approximately 190 million yuan in impairment losses related to its cryptocurrency holdings. Kang Yicong clarified that Meitu stopped purchasing cryptocurrencies after 2021, citing the decision as a strategic one.
Looking ahead, Kang Yicong expressed optimism about Meitu’s prospects in the overseas market, especially with the growing demand for the company’s AI-powered painting and other functions. Meitu intends to design and launch products with a global perspective, initially targeting regions such as Southeast Asia, Japan, South Korea, Europe, and the United States. The company recognizes the importance of tailoring its development strategies to adapt to each region’s unique conditions and demands.
Meitu’s strategic shift away from digital assets and towards its AI business marks an important turning point for the company. By capitalizing on the growing AI market and leveraging its subscription system, Meitu has successfully transformed its losses into profits. The unveiling of MiracleVision 3.0 further solidifies Meitu’s commitment to AI and video production. With a focus on expanding into overseas markets, Meitu is poised for continued growth and success in the evolving tech landscape.
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