Meitu, Inc. (1357.HK)
Company Information
Stock Chart
Business Model
Business Mode
It does not directly mention any business or strategy related to cryptocurrency. Meitu has historically made headlines by announcing the purchase of a large amount of Bitcoin and Ethereum as part of its financial reserves, a move that is well-known. However, in the current sections of its official website, including "About Us," "Business," and the latest company press releases, this is not promoted as a core business or strategy. This means that although Meitu Inc. may still hold cryptocurrency assets, this has a much lower priority in its current external communications compared to its core AI and imaging business. Cryptocurrency is viewed as a financial investment or asset allocation for the company, rather than a component of its products or services.
Profit Model
Meitu's profit model is diversified, primarily based on its large user base and technological capabilities. Online advertising: Display ads to a massive user base in its free application. VIP subscription service: Provides premium features for its applications (such as Meitu Xiuxiu, Wink, etc.), and users need to pay for a subscription to use them. SaaS and related businesses: Providing technical solutions for industries such as beauty and e-commerce, charging software as a service (SaaS) fees. Cryptocurrency-related profits: Asset appreciation: This is its only profit model related to cryptocurrency. If the price of Bitcoin and Ethereum held on the company's balance sheet rises, it will bring investment income to the company (or incur losses if the price falls). According to its past financial reports, the fair value changes of these crypto assets directly affect the company's net profit.
Profit Model Impact
Meitu's profit model demonstrates how an internet company can monetize its traffic and technology. Monetizing traffic: Through advertisements and VIP subscriptions, the company successfully converted free users into a source of revenue. Technology empowers industries: By providing SaaS solutions to the B-end (enterprise side), Meitu has expanded its technological capabilities accumulated in the C-end (consumer side) to a broader industrial internet market. Asset allocation strategy: Purchasing cryptocurrencies was then regarded as a bold asset allocation strategy aimed at hedging macroeconomic risks and seeking higher investment returns than traditional assets. This strategy made it one of the first Chinese listed companies to incorporate cryptocurrencies into its treasury, sparking widespread market discussion.
Impact on Cryptocurrencies
Affected cryptocurrencies: According to historical public information (although the official website currently does not emphasize this), Meitu Inc. mainly purchases and holds Bitcoin (Bitcoin, BTC) and Ethereum (Ethereum, ETH). How to influence: As a market buyer: Meitu Inc. announced its purchasing plan in 2021. As a well-known publicly listed company, its entry brought new institutional-level buying to the market and boosted market sentiment in the short term. Demonstration Effect: As one of the first Chinese technology companies to publicly adopt cryptocurrency as treasury assets, Meitu's actions have a strong demonstration effect, sparking discussions among other companies regarding the allocation of crypto assets. Limited impact on price: Although the purchase amount seemed quite considerable at the time, its holding volume is insufficient to unilaterally have a long-term or decisive impact on the price relative to the global market value and daily trading volume of the two currencies.