akqhwy25ehdqisdb

·

美图清仓加密货币后能否靠AI重回巅峰

In a bold strategic pivot, Meitu Inc. (1357.HK) has fully exited its cryptocurrency holdings—cashing out approximately $79.63 million (about 571 million RMB) in profits after riding the 2024 Bitcoin surge. The move marks the end of a four-year crypto journey and signals a decisive shift toward reinvesting in its core imaging and AI-powered design tools. But what does this mean for Meitu’s future? And can the company truly return to form by doubling down on artificial intelligence?

A Calculated Exit from Crypto

Meitu began selling its Bitcoin and Ethereum reserves in November 2024 and completed full divestment by December 4—just one day before Bitcoin prices sharply dropped from over $100,000 to below $90,000 per coin. This timely exit not only locked in substantial gains but also demonstrated strategic foresight.

The company initially invested around $100 million in cryptocurrencies back in 2021, a period when digital assets were gaining mainstream attention. However, the following years brought volatility, with Bitcoin fluctuating between $30,000 and $60,000 and even dipping near $16,000 in 2023. During that time, Meitu faced criticism for diverting focus from its core business, with some labeling the investment as speculative or “off-mission.”

“A company overly focused on crypto trading risks diluting management attention from its primary operations,” says Bai Wenxi, Chief Economist at China Enterprise Capital Alliance.

Despite early losses due to market downturns, Meitu’s eventual windfall allowed it to strengthen its financial position. Approximately 80% of the net proceeds will be distributed as a special cash dividend—benefiting major stakeholders, including co-founder蔡文胜 (Cai Wensheng), who indirectly owns over 1 billion shares.

👉 Discover how leading tech firms are leveraging digital assets for strategic growth

Refocusing on Core Competencies

With crypto behind it, Meitu is now channeling resources into its core mission: building advanced AI-driven visual creation tools. The remaining portion of the crypto sale profits will serve as general working capital to expand its subscription-based image and design products.

This shift reflects a broader strategic realignment under CEO Wu Xinhong (also known as Wu Zeyuan), who took over leadership in June 2023 after蔡文胜 stepped down from all executive roles. Under Wu’s guidance, Meitu has embraced a clear vision: “Productivity and Globalization.”

Historically, Meitu experimented with various side ventures—Meitu smartphones, social apps like “Flash Chat,” short video platform “Meipai,” and even beauty e-commerce. Most failed to gain traction and were quietly phased out. By 2019, the company refocused on online advertising and subscriptions through flagship apps like MeituXiuxiu and Meiyancamera.

Today, subscription revenue accounts for nearly 60% of total income. In the first half of 2024, Meitu reported RMB 16.2 billion in total revenue—a 28.6% year-on-year increase—with advertising contributing RMB 4.1 billion.

AI: The Real Game-Changer

While past diversifications faltered, Meitu’s early investment in AI has proven transformative. Its journey into AI began as early as 2013, culminating in features like AI-powered skin retouching, background removal, body reshaping, and smart photo enhancement.

Key products such as MeituXiuxiu, Meiyancamera, and Wink have all integrated generative AI capabilities. In H1 2024, Meitu reported around 10.81 million active paying users—the majority driven by membership growth in these three apps.

In 2023, Meitu launched its proprietary Qixiang Large Model, enhancing text-to-image and image-editing functionalities across its ecosystem. According to Wu Xinhong, AIGC (AI-generated content) has significantly boosted conversion rates and is now central to the company’s business model.

“AIGC capability has become the core engine of our subscription growth,” said Wu during a recent earnings call.

However, challenges remain. Compared to specialized AI art platforms like Midjourney or Zhipu Qingyan, Meitu’s text-to-image generation offers limited style options and lacks fine control over lighting, perspective, or composition. User feedback suggests outputs often fail to match real appearance—especially in AI-generated portraits.

👉 Explore how AI tools are reshaping digital creativity worldwide

International Expansion Gains Momentum

Beyond product innovation, Meitu is accelerating global expansion. While domestic monthly active users (MAUs) declined slightly by 0.2%, international growth surged—overseas MAUs reached 84 million in H1 2024, up 15% year-on-year and accounting for 32.9% of total users.

Apps like Wink, a video editing tool launched in 2022, saw a 99% increase in monthly active users, fueled largely by demand outside mainland China. The app climbed to third place on China’s App Store after WeChat added support for Live Photos—a trend Wink capitalized on quickly.

MeituXiuxiu has also topped download charts in Indonesia, Thailand, and other Southeast Asian markets, driven by viral AI features on social media platforms.

Lin Xianping, Secretary-General of the Institute of Cultural Creativity at Zhejiang City College, notes that sustained overseas growth depends on multiple factors:

“We need more time to assess whether current momentum can be maintained,” Lin cautions.

Expanding Into B2B Solutions

Beyond consumer-facing apps, Meitu is expanding into B2B services—an area showing strong promise. Recent initiatives include:

In H1 2024, productivity-focused tools like these saw a 42% year-on-year increase in MAUs, outpacing lifestyle-oriented apps.

Chen Jianyi, Meitu’s Senior VP, reflected on past missteps:

“We chased too many trends—e-commerce, blockchain, medtech—and paid a price. The biggest lesson? Focus on what we do best: building powerful tools.”

He believes AI could eventually generate hundreds of billions of RMB in revenue for Meitu—but acknowledges the company still has ground to cover.

👉 See how AI productivity tools are unlocking new revenue streams

Frequently Asked Questions

Q: Why did Meitu sell all its cryptocurrency holdings?
A: To lock in profits after a major price rally and redirect capital toward core imaging and AI product development—aligning with a renewed focus on long-term business sustainability.

Q: Is Meitu still involved in blockchain or crypto projects?
A: No official involvement remains. The company has exited all crypto positions and shifted focus entirely to AI-driven visual tools and global expansion.

Q: How important is AI to Meitu’s current business model?
A: AI is now central—driving subscription growth, enhancing user experience, and powering both C-side apps and B-side enterprise solutions like Meitu Design Studio.

Q: Can Meitu compete with advanced AI image generators like Midjourney?
A: While not yet on par with high-end generative models, Meitu excels in user-friendly mobile editing and real-time photo enhancement—targeting mainstream consumers rather than professional creators.

Q: What are Meitu’s biggest challenges moving forward?
A: Improving AI accuracy (especially in text-to-image), reducing customer complaints about auto-renewals, increasing overseas market share, and fending off competition from emerging AI apps.

Q: Is Meitu profitable from subscriptions alone?
A: Yes—the shift to a subscription-first model has been successful. Paid memberships now contribute close to 60% of total revenue, making it the company’s largest income stream.

Keywords: Meitu, cryptocurrency sale, AI imaging tools, AIGC strategy, overseas expansion, subscription growth, Wink app