Hong Kong Exchanges and Clearing Restricted and The Inventory Alternate of Hong Kong Restricted take no accountability for the contents of this announcement, make no illustration as to its accuracy or completeness and expressly disclaim any legal responsibility by any means for any loss howsoever arising from or in reliance upon the entire or any a part of the contents of this announcement.
（Integrated within the Cayman Islands with restricted legal responsibility and carrying on enterprise in Hong Kong as “美圖之家“）
(Inventory Code: 1357)
PURCHASE OF CRYPTOCURRENCIES (ETHER AND BITCOIN)
This announcement is made by Meitu, Inc. (the “Firm“) on a voluntary foundation. For the aim of this announcement, the time period the “Group” is outlined because the Firm and its non-Individuals’s Republic of China integrated subsidiaries.
The Group has bought 15,000 models of Ether and 379.1214267 models of Bitcoin (“BTC“), each cryptocurrencies, in open market transactions at an mixture consideration of roughly US$22.1 million and US$17.9 million respectively, on March 5, 2021. These purchases had been made pursuant to a cryptocurrency funding plan beforehand authorized by the board of administrators (the “Board“) of the Firm (the “Cryptocurrency Funding Plan“), beneath which the Group could make a web buy of as much as US$100 million value of cryptocurrencies, financed by its present money reserves apart from any remaining proceeds from the Firm’s preliminary public providing.
Web buy is outlined as the mixture market worth of cryptocurrencies bought by the Group on the time of buy minus the mixture market worth of cryptocurrencies offered on the time of sale. Subsequent purchases or gross sales of cryptocurrencies pursuant to the Cryptocurrency Funding Plan might be executed on the Board’s discretion in response to market situations. The Board will train the powers of the Group to buy and/or promote cryptocurrencies pursuant to the Cryptocurrency Funding Plan and in accordance with the Guidelines Governing the Itemizing of Securities on The Inventory Alternate of Hong Kong Restricted (the ”Itemizing Guidelines”), the memorandum of affiliation and articles of affiliation of the Firm, relevant legal guidelines of Hong Kong and relevant legal guidelines of the Cayman Islands (being the jurisdiction wherein the Firm was integrated).
The Board takes the view that blockchain expertise has the potential to disrupt each present monetary and expertise industries, just like the way wherein cell web has disrupted the PC web and plenty of different offline industries. The Board believes that the blockchain trade continues to be in its early stage, analogous to the cell web trade in circa 2005. Towards this backdrop, the Board believes cryptocurrencies have ample room for appreciation in worth and by allocating a part of its treasury in cryptocurrencies may function a diversification to holding money (which is topic to depreciation strain as a result of aggressive will increase in cash provide by central banks globally) intreasury administration. Extra importantly, the Board considers this an illustration to traders and stakeholders that the Group has the imaginative and prescient and dedication to embrace technological evolution, and therefore getting ready its foray into the blockchain trade. However the long-term prospects, cryptocurrency costs basically are nonetheless extremely unstable and due to this fact the Board presently determined to spend money on the 2 largest cryptocurrencies by market capitalization, Ether and Bitcoin, which the Board believes ought to improve shareholder worth within the long-term.
Investing in Ether as a preparation to enter the blockchain trade
Ethereum is an open-source, block-chain based mostly, decentralized software program platform that makes use of its personal cryptocurrency, Ether. Usually talking, Ether is required to be consumed (as “fuel”) to conduct a transaction or execute a contract on the Ethereum platform. At present the Ethereum community has the most important variety of decentralized functions (“dApps“) on it as a result of its developer-friendly interface that allow diminished programming time to launch tasks shortly in addition to a robust and rising world community of developer group who’re dedicated to improve the community and drive adoption. dApps throughout a number of sectors together with finance, video games, social media and artwork & collectibles and many others. have already adopted the Ethereum protocol. The Group is presently evaluating the feasibility of integrating blockchain applied sciences to its numerous abroad companies, together with however not restricted to launching Ethereum-based dApps, in addition to figuring out appropriate abroad blockchain-based tasks for potential investments (many blockchain-based tasks settle for Ether as consideration for funding) that may be synergistic to its giant consumer base that has a whole lot million month-to-month lively customers globally.
Buying Ether is due to this fact a logical preparation for each initiatives, because the Ether bought would change into the fuel reserve for the Group’s potential dAPP(s) to devour sooner or later, in addition to getting used as consideration for investing in blockchain-based tasks that take Ether as consideration.
Investing in Bitcoin as a part of our asset allocation technique
Bitcoin is a cryptocurrency launched greater than 10 years in the past. It has a number of options that allow it to be a great various retailer of worth, corresponding to being restricted in provide, its exchangeability into fiat cash or items and providers, portability, and its potential to behave as an efficient hedge towards depreciation of fiat currencies as a result of aggressive enhance in cash provide by central banks globally. A few of these options probably even render Bitcoin as a superior type to different various shops of worth corresponding to gold, valuable stone and actual property. Being an alternate retailer of worth, its worth is primarily a operate of future demand that’s pushed by consensus of traders and most of the people.
Not too long ago the Board has seen rising momentum within the consensus constructing course of. For instance, the historically extra conservative establishments corresponding to insurance coverage corporations have began making investments into cryptocurrencies; conventional asset administration corporations have launched crypto-funds for subscription; an rising variety of listed corporations are buying cryptocurrencies as a part of their treasury administration, in addition to contemplating accepting cryptocurrency as type of fee for his or her items and providers. Then again, ease of entry to cryptocurrencies has additionally been bettering, as mirrored by respected banks offering cryptocurrencies buying and selling and custody providers. Final however not least, regulators have additionally began licensing cryptocurrency buying and selling platforms that would improve investor confidence in dealing in cryptocurrencies.
The models of Ether and Bitcoin bought by the Group will reside with famend cryptocurrencies buying and selling platform(s) engaged by the Group with good safety measures arrange.
Shareholders and potential traders ought to notice that any cryptocurrencies that the Group could buy or promote beneath the Cryptocurrency Funding Plan will rely on market situations and might be made on the Board’s discretion. The cryptocurrency market is unstable within the near-term and the costs of cryptocurrencies could also be topic to fluctuations. There’s due to this fact no assurance as to the timing, amount, kind or worth of any cryptocurrencies to be bought or offered beneath the Cryptocurrency Funding Plan. Accordingly, Shareholders and potential traders are suggested to train warning when dealing within the shares of the Firm.
The Firm will adjust to the related disclosure necessities beneath the Itemizing Guidelines in relation to cryptocurrencies bought and/or offered by the Group pursuant to the Cryptocurrency Funding Plan.
By order of the Board
Hong Kong, March 7, 2021
As on the date of this announcement, the manager administrators of the Firm are Mr. Cai Wensheng and Mr. Wu Zeyuan (also called Mr. Wu Xinhong); the non-executive administrators of the Firm are Dr. Guo Yihong, Dr. Lee Kai-fu and Mr. Chen Jiarong; the impartial non-executive administrators of the Firm are Mr. Zhou Hao, Mr. Lai Xiaoling, Mr. Zhang Ming (also called Mr. Wen Chu) and Ms. Kui Yingchun.