Meitu, a Hong Kong-listed company, has made headlines by becoming one of the first companies in the region to invest heavily in cryptocurrencies, particularly Bitcoin and Ethereum, to the tune of approximately $100 million. However, Meitu is now shifting its focus away from the volatile world of cryptocurrency and may consider selling its holdings at an opportune time.
The company’s recent success can be attributed to its subscription system, which has helped it turn losses into profits. Kang Yicong, senior investor relations manager at Meitu, emphasized the role of the subscription system in stabilizing earnings amidst macroeconomic uncertainties. Additionally, Meitu’s expansion into the booming AI business has been a significant growth driver, boosting subscriptions and contributing to profits.
Meitu’s foray into the world of cryptocurrency raised eyebrows, but Kang Yicong clarified that the company is open to selling its digital assets at the right moment. The market’s recent resurgence has been a boon for Meitu, reversing some of the losses it previously incurred due to bearish cryptocurrency markets.
In 2023, Meitu is capitalizing on the global AI craze, launching the enterprise AI vision solution “MiracleVision 3.0.” Kang Yicong highlighted AI’s pivotal role in driving the company’s growth, particularly in converting subscribers. Meitu is also looking to expand its corporate customer base and is introducing innovative solutions like “Beauty Industry” to cater to merchant and consumer needs.
While Meitu’s cryptocurrency investments have been a point of discussion, Kang Yicong affirmed that the company currently has no specific plans for disposal. Meitu’s future plans include a global perspective, focusing on Southeast Asia, Japan, South Korea, Europe, and the United States. The company aims to repackage its successful Chinese products for overseas markets.
Hong Kong’s Retail Crypto Investors
In the broader context of Hong Kong, a recent report by the Investor and Financial Education Council (IFEC) revealed that 47% of retail crypto investors in the region are aware of the Virtual Asset Trading Platform Regulatory Regime. The report also highlighted a significant increase in crypto investments among adults aged 18-29, with 25% having invested in the past year, driven by the desire for short-term profits and the fear of missing out.
Despite this growing interest in crypto, stocks remain the preferred investment choice for most Hong Kongers, with 96% favoring them. Mutual funds, trusts, and bonds also feature prominently in investment preferences, emphasizing the importance of financial literacy and rational decision-making in the virtual asset investment landscape.