Meitu, the Chinese agency finest recognized for its selfie image-enhancing app, mentioned on Wednesday it’s venturing into the offline skincare market because it makes an attempt to offset the affect of dwindling app customers and a money-losing smartphone enterprise.
Meitu, which listed in late 2016 in what was then Hong Kong’s largest tech IPO in a decade, has since suffered losses and its share worth has greater than halved, as China’s smartphone market has run out of steam, shrinking almost 16 p.c in 2018.
The agency introduced a deal in November to outsource manufacturing of the smartphone enterprise to Xiaomi and obtain model and tech licenses in change.
Meitu mentioned on Wednesday it should launch a face-cleansing brush that may robotically establish the perfect pulsing setting for a consumer by detecting his or her particular person pores and skin situation.
The firm’s beauty-centric digital camera apps, which exploded in recognition in China round 2015 because of sturdy demand from feminine customers, have not too long ago endured a steep decline in utilization.
In its earnings report overlaying the six-month interval to end-December, Meitu mentioned month-to-month lively customers throughout its suite of apps decreased 19.9 p.c from a 12 months earlier.
Its smartphone division, in the meantime, made up many of the firm’s gross sales over the identical interval, however excessive prices introduced the corporate to a loss total.
Slowing smartphone gross sales and a softening financial system have positioned stress on home smartphone makers, who’re more and more elevating costs in hopes of boosting margins.
Shares in Meitu closed up four.6 p.c at HKD three.45 on Wednesday, effectively beneath its HKD eight.5 IPO worth.
© Thomson Reuters 2019