Interim results fell short of expectations, Meitu's share price plummeted
Previously, Meitu announced its strategic layout for the next 10 years, with the focus on social networking. Meitu will use Meitu Xiuxiu and Meipai as its pioneer products to develop social layout. At the Meitu company's interim results conference, Meitu said that it will increase its investment in resources for business transformation, and it is expected that its net loss will increase further in the second half of the year. Regarding the social business, the company’s chairman Cai Wensheng stated that Meipai’s users are mainly concentrated in first- and second-tier cities, and there was no popular video content at the initial stage of its development; now the dividends for mobile Internet users in China are no longer available, and future products will definitely be available in third- and fourth-tier cities. Sinking also includes going overseas. Meitu opened lower in early trading today, and the decline once expanded to more than 18%, with a minimum of 3.91 Hong Kong dollars per share, the lowest since its listing. As of the morning's close, Meitu fell 17.01%. Yesterday, Meitu disclosed its 2018 interim results. The revenue in the first half of the year was 2.052 billion yuan, which was lower than the same period last year, down 5.9% year-on-year, with a net loss of 127.4 million yuan and an adjusted net loss of 199 million yuan; Meitu’s mobile phone shipments were about 53.3 Ten thousand units in the first half of 2017 were 847,000 units, a year-on-year decrease of 37%. The performance report showed that its overall monthly active users were 350 million, a decrease of 16%, including the monthly activity of Meitu Xiuxiu, Meipai and Beauty Camera, among which the short video app Meipai fell 56%.