Meitu expects to turn a loss into a profit in 2022 compared with the same period last year, and the encrypted currency confirms an impairment loss of about 285 million yuan.

According to CTOnews.com news on February 21, Meitu announced on the Hong Kong Stock Exchange last night that the Group expects the net profit attributable to the owners of the Company to be between RMB 85 million and RMB 130 million in 2022, and the net loss attributable to the owners of the Company in the previous fiscal year was about RMB 44.5 million.

CTOnews.com understands from the announcement that the main reason why Meitu expects to turn losses to profits compared with the same period last year is due to the fact that the fair value income of the Group's unlisted minority investments, which are measured at fair value and whose changes are included in the profits and losses of the current period, range from approximately RMB485 million to approximately RMB565 million (compared with approximately RMB184 million for the Group as at 31 December 2021).

Meitu said that since the purchase of cryptocurrency, the Group has not purchased or sold any cryptocurrency under the cryptocurrency investment plan. In accordance with IFRS, the Group is expected to recognise an impairment loss of approximately RMB 285 million in respect of the purchase of encrypted currencies in the forthcoming results of the Group for the year ended 31 December 2022. The impairment loss on purchased cryptocurrency hedges the impact of fair value gains on the Group's net profit on some of the Group's financial assets measured at fair value and whose changes are included in the profits and losses of the current period.