Meitu (1357), a Hong Kong-listed company known for its ventures into cryptocurrencies, recently announced a significant shift in its business focus. While the company made headlines in 2021 for its investments in cryptocurrencies amounting to around $100 million, it has now revealed that its growth is primarily driven by its artificial intelligence (AI) business. This strategic transformation marks an important turning point for Meitu as it adapts to the changing global economic environment and explores new opportunities in the market.
Meitu’s decision to move away from buying and holding digital assets like Bitcoin and Ethereum is a bold one. The company’s senior investor relations manager, Kang Yicong, confirmed that Meitu no longer sees digital assets as a focus and may consider selling them in the future. This decision reflects the changing priorities of many companies in response to the unpredictable global economic landscape. As a result, Meitu’s products, especially its AI offerings, have gained traction in the market and have become a primary driver of the company’s growth and profitability.
The success of Meitu’s strategic shift can be attributed to its subscription system and the growth of its AI business. By leveraging its subscription model, Meitu has shielded its earnings from the volatility of the macroeconomic landscape. Additionally, the company’s AI business has played a significant role in attracting new subscribers and contributing to profits. Meitu’s current strategic focus lies in video production, complementing its venture into AI.
In early October 2023, Meitu unveiled its latest enterprise AI vision solution, MiracleVision 3.0. This move capitalizes on the growing global demand and interest in AI-driven technologies like ChatGPT. Kang Yicong emphasized the pivotal role that AI is expected to play in Meitu’s future development. By expanding its subscription base and leveraging AI technologies, Meitu aims to drive profits and solidify its position as an industry leader.
Meitu’s experience in the cryptocurrency market has been a rollercoaster ride. While the company initially faced losses due to its substantial cryptocurrency investments, recent market recoveries have allowed it to reverse approximately 190 million yuan in impairment losses. However, Kang Yicong clarified that Meitu ceased purchasing cryptocurrencies after 2021, citing the decision as a strategic one.
Looking ahead, Meitu is optimistic about the overseas market and intends to design and launch products with a global perspective. The company plans to target Southeast Asia, Japan, South Korea, Europe, and the United States. To adapt to each region’s unique conditions and demands, Meitu will tailor its local development strategies. With a growing demand for Meitu’s AI-powered painting and other functions, the company is poised for expansion and success in the global market.
Meitu’s strategic shift from cryptocurrencies to artificial intelligence marks a significant transformation for the company. By focusing on its AI business and leveraging its subscription model, Meitu has successfully navigated the changing global economic landscape. As the company expands its offerings and targets new markets, it is poised to drive future growth and profitability. With its innovative enterprise AI vision solution and a global perspective, Meitu is well-positioned for success in the AI-driven market.