Meitu invested in virtual currency floating loss of 300 million, and still firmly believes that cryptocurrencies have sufficient growth space

Huaxia Times (chinatimes.net.cn) reporter Wang Yongfei Ran East Beijing report

On the morning of July 4th, "Meitu fried coins floating over 300 million" appeared on the hot search. As of today's close, it has fallen more than 10.58%within the day, and the latest offer per share is HK $ 0.93, falling below the HK $ 1 mark.

Hong Kong stocks listed on Meitu (HK1357) have announced that they have publicly held Bitcoin and Ethereum since March 2021, and have frequently become the focus of attention due to the profit and loss of coins. On the evening of July 3rd, Meitu released the "inside information and profit warnings" pointed out that as of June 30, 2022, the total amount of encrypted currency confirming the impairment loss was approximately US $ 45.6 million (about 305 million yuan).

In this regard, the relevant person in charge of Meitu told the reporter of Huaxia Times: "As a Chinese company listed in Hong Kong, China, Meitu has always abide by laws and regulations and various regulatory policies."

Floating coins floating 300 million

Meitu, a "crab eating", has become the focus of attention due to investing in virtual currency losses.

On the evening of July 3, the "insider message and profit warning" released by Meitu pointed out that as of the six months ended June 30, 2022, Meitu is expected to record a net loss between about 274.9 million yuan to 349.9 million yuan. The year -on -year increase of about 99.6%to 154.1%, the main reason is that cryptocurrency impairment has been purchased.

Our reporter inquired about the relevant announcements and found that on March 7, 2021, March 17, 2021, and April 8, 2021, Meitu disclosed in the announcement to purchase a total of about 31,000 Ethereum and about 940.89 bitcoins. The total consideration is about $ 50.5 million and $ 49.5 million.

As of the market price of June 30, 2022, the fair value of Ethereum and Bitcoin purchased was about $ 32 million and US $ 18 million, respectively. The interim results confirmed that the impairment loss was about $ 18.5 million and about 27.1 million US dollars.

That is, Meitu invested a total of $ 100 million in virtual currencies, and has lost $ 45.6 million, with nearly half of the loss.

In this regard, the relevant person in charge of Meitu told the reporter of Huaxia Times: "As a Chinese company listed in Hong Kong, China, Meitu has always abide by laws and regulations and various regulatory policies. Announcement. Also pay attention to our core business, such as the innovation of image products and the progress of SaaS business. "

"Cryptocurrency holders only account for part of the total assets." Meitu Company emphasized.

Chen Jia, a researcher at the International Monetary Institute of Renmin University of China, analyzed the reporter of the newspaper: "The main business of Meitu registered is neither investment in the encryption asset field (this is illegal in the country); Accept supervision in accordance with laws and regulations). Meitu invested in the early stage of encrypted assets, which proves that it has endangered the short -term cash liquidity of the enterprise and the long -term healthy development. The red line in the field of financial supervision. "

Chen Jia believes that even if the loss of Meitu is reflected in the debt loss, it does not mean that this loss can be recovered. In fact, its floating losses attributes are precisely because the realization of the gray market is not easy to need to pay high and uncertain handling fees, which leads to timely time to achieve timely stop loss during the severe decline in the valuation of encrypted assets. In addition, the real landing realization is to be added, including capital costs, market risk costs and legal compliance costs.

Still full confidence

"After buying cryptocurrencies, Meitu currently does not have cryptocurrencies (including Ethereum or Bitcoin) to buy or sell plans." Meitu said in the announcement that the board of directors believed that the fluctuations of Ethereum and Bitcoin prices are temporary, and they are right and right. The long -term prospects of purchasing cryptocurrencies are still optimistic.

Compared with other categories of assets (such as stocks, goods and bonds), cryptocurrencies are still in their preliminary stages, and the price tendencies of cryptocurrencies are vulnerable to fluctuations. Meitu's board of directors believes that because the blockchain industry is still developing rapidly, and cryptocurrencies are an indispensable part of them, the use of cryptocurrencies has sufficient growth space. In addition, more traditional financial instruments (such as transaction open index funds) can provide traditional investors with synthetic investment in cryptocurrencies (such as Bitcoin), which also lays the foundation for the use of cryptocurrencies in the future.

Shortly after listing in 2016, Meitu's market value reached nearly 100 billion Hong Kong dollars. In 2017, it reached more than 4.5 billion Hong Kong dollars to its peak. Since then, it has been going downhill. The financial report shows that its main source of income is online advertising, VIP subscription and video SaaS business. Since listing, Meitu's net profit has been negative. Recently, cryptocurrencies have plummeted, and Meitu has worsened.

Cai Wensheng, chairman of Meitu and Chinese angel investor, has been optimistic about the development of cryptocurrencies and blockchain. In May 2018, Cai Wensheng publicly stated that the small goal of holding 10,000 Bitcoin has been achieved. The main investment time was at the end of January 2018, and the price continued to build a position with the decline.

Our reporter learned that the price of Bitcoin in February 2018 was nearly $ 7,000 per price, and the price was $ 12,000/US dollar as of May 2018. Compared with the current price of Bitcoin, it is still low.

In addition, Cai Wensheng was interested in NFT.In May of this year, Cai Wensheng bought the boring ape Bayc#8848, and previously spent 125 Ethereum to buy encrypted punk avatars.On June 18, the crypto market plummeted, and Bitcoin fell below $ 18,000, and Ethereum fell to nearly $ 1,000.Cai Wensheng introduced a friend of his super Ethereum believer. At $ 4,800, there were 280,000 Ethereum.According to this conversion, the investment amount has reached nearly 10 billion yuan, which has also caused heated discussions.

"The trading model of encrypted assets is a ultra -high -frequency model. In the global financial market, no other assets are traded in this model." Chen Jia reminded that essentially, the trading model is a gambling game.Cryptocurrency transactions are new machine learning trading models. It is recommended that some institutional investors who do not have ultra -high -frequency trading methods are suitable.

Editor -in -chief: Meng Junlian Editor: Ran Xuedong

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