Meitu reports cryptocurrency loss in its 2022 financial statement

02/20/2023 15:04 • Blockchain Buzz • 152 views

It is reported that Meitu announced on the Hong Kong Stock Exchange that since the purchase of cryptocurrency, the Group has not purchased or sold any cryptocurrency according to the cryptocurrency investment plan. According to the International Financial Reporting Standards, the Group is expected to recognize an impairment loss of about 285 million yuan in the annual performance of the Group as of December 31, 2022 for the purchased cryptocurrency. The impairment loss of the purchased cryptocurrency hedges the impact of the fair value gains of some financial assets measured at fair value and the changes of which are included in the current profit and loss on the net profit of the group.

Meitu: The confirmed impairment loss of cryptocurrency is about 285 million yuan

Interpret the above information:

Meitu, a Hong Kong-based technology company, recently announced on the Hong Kong Stock Exchange that it has not purchased or sold any cryptocurrency as part of its cryptocurrency investment plan since its initial purchase. However, the company has reported an expected impairment loss of approximately 285 million yuan for the purchased cryptocurrencies in its December 31, 2022, annual performance report. It is said that this loss is a result of hedges against the fair value gains of some financial assets.

This announcement is a clear indication that the cryptocurrency market remains volatile and unpredictable. Meitu’s decision to report losses reveals that they did not anticipate the negative impact of depreciation in the cryptocurrency market, thus highlighting the difficulty of cryptocurrency investments. Many investors have been attracted to cryptocurrencies due to the high returns they offer. But this announcement from Meitu shows that investors must also prepare themselves for substantial losses. Meitu’s experience demonstrates that cryptocurrencies can be a high-risk investment and should be handled with caution.

The decision by Meitu to report the impairment loss is also essential in assisting investors to make informed choices. Investors are always searching for relevant information to identify with companies that provide transparency in financial reporting. Meitu should be congratulated for providing this information indicating they do not want to conceal the challenges they faced in their investment. The statement should encourage other companies to provide transparency in their reports while guiding investors towards a more informed choice.

In conclusion, Meitu’s announcement on the Hong Kong stock exchange that it expects to report an expected impairment loss of approximately 285 million yuan for its purchased cryptocurrency hedges the fair value gains of some financial assets that will be included in the current profit and loss on the net profit of the group. However, this statement shows that companies have a responsibility to be transparent in their financial reporting, and investors should take caution when investing in cryptocurrencies.

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Meitu reports cryptocurrency loss in its 2022 financial statement

Meitu: The confirmed impairment loss of cryptocurrency is about 285 million yuan

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