Meitu Reports $806 Million Revenue in First Half, Suffers $112 Million Bitcoin Loss

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Meitu’s Financial Performance in H1 2021: Growth Amid Cryptocurrency Volatility

Meitu, the renowned photo-editing technology company, released its financial results for the first half of 2021, revealing strong revenue growth and profitability despite turbulence in its cryptocurrency investments. The company reported total revenue of $806 million**, marking a **44.6% year-on-year increase**, with an adjusted net profit attributable to owners of the parent company reaching **$33.4 million, up 33.8% from the same period last year. The gross profit margin stood at 66.1%, a 2.3 percentage point improvement, highlighting enhanced operational efficiency.

This performance underscores Meitu’s successful pivot toward diversified revenue streams beyond traditional advertising, including subscription services and digital beauty solutions — all while navigating the volatile world of digital assets.

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Core Revenue Streams: Advertising, Subscriptions, and SaaS Innovation

Online Advertising and Subscription Growth

In the first half of 2021, Meitu’s online advertising revenue reached $393 million**, growing by **23.3%** year-over-year. While this remains a foundational pillar, it was outpaced by the explosive growth of its **advanced subscription services**, which generated **$211 million — a staggering 150.7% increase compared to the prior year.

Launched in 2019, this subscription model has gained significant traction, with approximately 3 million paying users as of June 2021. This shift reflects broader market trends toward recurring revenue models in consumer software, where users increasingly value premium features such as AI-powered editing tools, ad-free experiences, and cloud storage.

Additionally, internet value-added services (including virtual gifts and content monetization) brought in $35.3 million, up 65.6%, indicating rising engagement within Meitu’s ecosystem.

Expansion into Beauty Tech and SaaS Solutions

Beyond consumer apps, Meitu has strategically expanded into beauty-focused SaaS solutions, targeting professionals in the cosmetics and skincare industries. Its proprietary Meitu E-YouFu skin analysis system has been deployed across more than 240 cities globally, offering high-precision, AI-driven skin diagnostics through panoramic imaging technology.

Moreover, Meitu’s investment in MeiDede, an enterprise resource planning (ERP) SaaS provider, now supports over 10,000 beauty retailers across 250+ Chinese cities. This B2B arm not only diversifies revenue but also strengthens Meitu’s position at the intersection of beauty, AI, and retail tech — a rapidly growing niche in Asia’s digital economy.

User Engagement Trends: Mixed Results Across Platforms

Despite solid financial performance, user metrics revealed some challenges. Total monthly active users (MAUs) across Meitu’s platforms reached 246 million as of June 30, 2021 — a 5.8% decline year-over-year.

Key app performances included:

The decline in global MAUs, particularly for BeautyPlus, may reflect intensified competition from TikTok, Instagram Reels, and other short-video platforms that integrate advanced filters and editing tools natively. However, the modest growth in core domestic apps suggests resilience in Meitu’s home market.

Strategic Move into Cryptocurrency: High Risk, Mixed Returns

In early 2021, Meitu made headlines by entering the cryptocurrency market — joining a wave of public companies allocating corporate treasuries to digital assets.

On March 5 and March 17, the company announced purchases totaling:

At the time, CEO Wu Xinhong emphasized that this move was part of a long-term asset allocation strategy, aimed at diversifying cash holdings and preparing for future expansion into blockchain-related businesses. He clarified that Meitu would not engage in short-term trading.

However, market volatility quickly impacted the portfolio’s value.

By June 30, 2021:

Under accounting standards, cryptocurrencies are classified as intangible assets and measured using the cost model. This means:

As a result, Meitu recorded a non-cash impairment loss of approximately $112 million (RMB 700 million) on its Bitcoin holdings due to price depreciation — a significant dent in otherwise strong earnings.

Conversely, gains from Ethereum’s price surge — around $94.9 million (RMB 600 million) — could not be recognized in income, illustrating the asymmetric nature of crypto accounting under current frameworks.

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Frequently Asked Questions (FAQ)

Why did Meitu invest in Bitcoin and Ethereum?

Meitu viewed cryptocurrency as a strategic reserve asset to diversify its cash holdings and hedge against inflation. The company also saw it as a step toward future involvement in blockchain technology and decentralized applications.

Did Meitu profit from its crypto investments?

While Ethereum appreciated significantly, accounting rules prevented Meitu from recognizing those gains. Meanwhile, Bitcoin's price drop led to a confirmed impairment loss of $112 million, which negatively affected reported financials despite no actual sale occurring.

How does Meitu plan to grow amid declining user numbers?

Meitu is focusing on monetization depth rather than pure user scale. With rising subscription adoption and expansion into B2B SaaS for beauty retailers, the company aims to generate higher lifetime value per user even if overall reach stabilizes or slightly declines.

Is Meitu still holding its cryptocurrency?

As disclosed in the report, Meitu had not sold any of its crypto holdings by June 30, 2021. Future decisions will depend on market conditions and strategic goals.

What are Meitu’s main sources of revenue now?

The company’s revenue is now diversified across:

How does crypto accounting work for companies like Meitu?

Under IFRS and most GAAP frameworks, cryptocurrencies are treated as intangible assets. They’re recorded at cost and subject to downward revaluation if market prices fall — but upward movements aren’t booked until assets are sold.

Looking Ahead: Balancing Innovation and Stability

Meitu’s H1 2021 results reflect a company at a crossroads — leveraging its strong brand in visual technology while experimenting with bold financial strategies. While the crypto bet introduced volatility, it also sparked discussions about corporate treasury innovation in the digital age.

Going forward, success will depend on:

The journey highlights a broader trend: tech firms evolving beyond pure software play into financial experimentation and vertical integration.

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Final Thoughts

Meitu’s first-half performance demonstrates resilience and ambition. With strong core revenue growth driven by subscriptions and SaaS expansion, the company continues to innovate beyond filters and selfies. However, its foray into cryptocurrency serves as a cautionary tale about the financial reporting implications of volatile assets — even when held for strategic reasons.

For investors and observers alike, Meitu represents an intriguing case study in how legacy consumer tech brands can adapt — sometimes controversially — to stay relevant in fast-changing digital economies.

Core Keywords: Meitu revenue, cryptocurrency investment loss, subscription growth, beauty SaaS, Bitcoin impairment, Ethereum holdings, online advertising growth