Meitu Expects To Turn Losses Into Profits Year-On-Year In 2022, And The Cryptocurrency Will Confirm An Impairment Loss Of About 285 Million Yuan

https://www.gamingdeputy.com/meitu-expects-to-turn-losses-into-profits-year-on-year-in-2022-and-the-cryptocurrency-will-confirm-an-impairment-loss-of-about-285-million-yuan/

Meitu announced on the Hong Kong Stock Exchange last night that the group expects the net profit attributable to owners of the company in 2022 to be between RMB 85 million and RMB 130 million.The net loss attributable to owners of the Company for the last fiscal year was approximately RMB 44.5 million.

IT Home learned from the announcement that the main reason for Meitu’s expected year-on-year turnaround is due to the Group’s unlisted minority equity investment measured at fair value and its changes included in the current profit and loss. The fair value gain on assets ranged from approximately RMB485 million to approximately RMB565 million (compared to approximately RMB184 million for the Group as of December 31, 2021).

Meitu said,Since the purchase of cryptocurrencies, the Group has not purchased or sold any cryptocurrencies under the cryptocurrency investment plan. According to International Financial Reporting Standards,The Group expects to recognize an impairment loss of approximately RMB 285 million in respect of the purchased cryptocurrencies in the Group’s upcoming annual results for the year ending December 31, 2022. The impairment loss of purchased cryptocurrencies has offset the impact on the Group’s net profit of the fair value gains of some of the Group’s financial assets measured at fair value through profit or loss.