Meitu, Inc. (1357.HK)

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Beauty App Meitu Produces Its Second Billionaire

by Sterling Wong
March 15, 2017, 6:48 PM GMT+8 Updated on March 16, 2017, 5:44 PM GMT+8

Wu Xinhong, co-founder and chief executive officer of Meitu Inc., became the second billionaire at the Chinese beauty-enhancing selfie app developer after the stock rose for nine straight days.

The shares extended gains since it was added to a second equity-trading link between China’s Shenzhen exchange and Hong Kong on March 6, and jumped 11 percent to a record HK$14.22 at the close on Tuesday. That gave Wu a net worth of $1 billion, according to the Bloomberg Billionaires Index.

The company said Wu declined to comment and referred to the CEO’s previous statement on how he’s seeking to turn virtual beauty into real-life experiences through its artificial intelligence.

More details in https://www.bloomberg.com/news/articles/...ock-surges

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Meitu's Wild Stock Trading Has Investors Blaming Mainland Links

by Kana Nishizawa and Benjamin Robertson
March 21, 2017, 12:56 PM GMT+8

Hong Kong’s latest stock-market drama is putting a spotlight on the volatile trading patterns of Chinese investors who use the city’s cross-border exchange links.

The links’ most-active stock on Monday was a beauty-enhancing selfie app developer called Meitu Inc. After the shares surged as much as 28 percent over the course of the day, they tumbled as much as 33 percent in the final 90 minutes of trading. Hong Kong’s Securities and Futures Commission has requested trading records of Meitu shares from brokers at least three times since January, the Hong Kong Economic Journal reported on Tuesday, citing unidentified people.

The moves were triggered by heavy trading from mainland investors, according to Mirabaud Asia Ltd., and reflect a pattern that’s becoming more prevalent amid increased Chinese money flowing into the former British colony. Meitu’s swings in the two weeks since it was added to Hong Kong’s stock-trading links with exchanges in Shanghai and Shenzhen raise questions about how the city will cope with an influx of investors who often buy and sell on a whim.

More details in https://www.bloomberg.com/news/articles/...land-links

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The Ugly Numbers Plaguing China’s Top Selfie Airbrushing App

By Kristine Servando  and Kana Nishizawa
May 25, 2018, 5:00 AM GMT+8 Updated on May 25, 2018, 12:19 PM GMT+8

Add Meitu Inc. to the list of once-promising Chinese tech startups that are now saddling shareholders with big losses.

The maker of China’s most popular photo-retouching app rode the nation’s selfie obsession to a blockbuster Hong Kong initial public offering in December 2016. But these days it’s one of the city’s worst-performing tech stocks, joining a host of tech IPOs that have fallen below their issue price amid investor concerns ranging from high valuations to intense competition.

The crux of Meitu’s struggle has been its inability to squeeze money from its free apps, which lengthen limbs, brighten skin and zap away blemishes. It treats the apps as its core business even though more than 80 percent of its revenue comes from selling its branded cellphones in a cutthroat market dominated by bigger players such as Huawei and Xiaomi. While Meitu is expected to turn profitable for the first time this year, some investors are losing patience.

More details in https://www.bloomberg.com/news/articles/...-investors