On the evening of July 3, Meitu Corporation (HK: 1357 ) announced that it is expected to record a net loss of 275 million to 350 million yuan (not marked, RMB) in the first half of this year, and the net loss has increased by about 99.6% to 154.1% year-on-year. The main reason is the impairment of purchased cryptocurrencies.
Times Finance observed that in November last year, Bitcoin hit an all-time high of $69,000, and then plummeted in shock. In early June this year, it fell below $30,000. On July 3 20, it was $19,082.14, higher than the historical peak. fell by more than 70%.
Ether is also depreciating, reaching a peak of $4,707.65 in November last year and $1,060.18 on July 3, 20 this year.
In March and April last year, Meitu purchased a total of 31,000 ethers and 940.89 bitcoins, which cost US$50.5 million and US$49.5 million, respectively, or US$1,629 and US$52,610 respectively. or sell action.
According to the International Financial Reporting Standards, in the first half of this year, the ether and bitcoin that Meitu had purchased were confirmed to be depreciated by USD 18.5 million and USD 27.1 million, respectively, approximately RMB 124 million and 182 million, and a total of RMB 306 million.
Meitu mentioned in the announcement that the impairment loss of cryptocurrencies will not have a significant impact on the company’s cash flow and operations in the first half of this year, and cryptocurrencies only account for a part of total assets.
According to the announcement, Meitu’s board of directors still believes that the blockchain industry is still developing rapidly, and cryptocurrencies are an integral part of it, so the adoption of cryptocurrencies has ample room for growth, and there are more traditional financial tools available for Traditional investors offer synthetic investments in cryptocurrencies.
Meitu’s board of directors also stated that the recent volatility in ether and bitcoin is temporary, and the board remains optimistic about the long-term prospects of its holdings of cryptocurrencies.
At the beginning of March last year, Meitu issued the “Voluntary Announcement – Buying Cryptocurrencies”, saying that the board of directors believes that cryptocurrencies have enough room for appreciation, and can show investors the company’s ambition and determination to accept technological innovations, so as to do a good job in entering the blockchain industry. Prepare.
The sharp depreciation of cryptocurrencies has made things worse for Meitu. According to the financial report, in 2017, Meitu’s revenue exceeded 4.5 billion yuan, reaching its peak in recent years. After that, the smartphone business fell into a downturn, and the company went downhill. In 2021, its revenue was only 1.666 billion yuan, mainly from online advertising, VIP subscription and image SaaS business. .
And for a long time, Meitu’s net profit has been negative, with a loss of 77.43 million yuan in 2021, an increase of 28.8% year-on-year, and the combined R&D and administrative expenses will exceed 800 million yuan.
There are also many billionaires who have been affected by the devaluation of cryptocurrencies. According to the Bloomberg Billionaires Index, from Bitcoin’s all-time high of $69,000 on Nov. 9 last year to hovering around $18,000 in June this year, seven cryptocurrency-related billionaires have collectively lost more than $120 billion. Including Binance founder Changpeng Zhao, Tesla CEO Elon Musk, etc.