Image: The price increase of purchased cryptocurrencies turns H1 loss into profit, reversing the impairment loss allocation of approximately 185 million yuan.

Odaily News: Meitu Inc. has announced that it expects to turn its losses into profits in the first half of this year, with a net profit ranging from 220 million yuan to 265 million yuan.



The main reason for the expected return to profitability is that as of June 30, 2023, the market price of the purchased cryptocurrencies was higher than the market price on December 31, 2022, resulting in a reversal of the impairment loss on the purchased cryptocurrencies of approximately 185 million yuan.



Since purchasing cryptocurrencies in March and April 2021, the company has not bought or sold any cryptocurrencies based on its cryptocurrency investment plan.



Previously, on February 20, Meitu Inc. announced on the Hong Kong Stock Exchange that the company has not bought or sold any cryptocurrencies based on its cryptocurrency investment plan since purchasing them. According to International Financial Reporting Standards, the company expects to recognize an impairment loss of approximately 285 million yuan on the purchased cryptocurrencies in the annual results ending on December 31, 2022, which will partially offset the impact of the impairment loss on the net profit of the company from the fair value gains of financial assets measured at fair value and whose changes are recognized in the current period income.