Meitu Network's Losses Mount Ahead of Planned Hong Kong IPO
Yicai Global
/SOURCE : Yicai
Meitu Network's Losses Mount Ahead of Planned Hong Kong IPO

(Yicai Global) Aug. 24 -- Losses at Meitu Network Technology Co., the developer behind China's most popular selfie-editing mobile app, continue to climb, according to the prospectus for the company's initial public offering of shares.

Meitu had a loss of CNY6.3 billion (USD948 million) in the six months through June. It lost CNY4.1 billion in 2015, CNY1.9 billion in 2014 and CNY80.3 million in 2013.

The Xiamen-based company aims to go public in Hong Kong by the end of this year and has appointed Morgan Stanley among others as its advisor. Meitu has already raised USD501 million in five rounds of fundraising, attracting investors such as Innovation Works and IDG Capital Partners.

Set up in 2008, Meitu has 23 apps and has rolled out five models of own-brand smartphones. Mobile phone sales accounted for just over 95 percent of its first-half revenue. As of this June, Meitu's applications had a total of 446 million monthly active users, up 81 percent year-on-year.

Meitu Chairman Cai Wensheng, who owns 38.32 percent of the company, said the decision to seek a listing in Hong Kong was driven by a global expansion strategy.

CEO Wu Xinhong holds 15.51 percent of Meitu; Tiger Management Corp., 10.95 percent; IDG Capital Partners, 8.91 percent; Qiming Venture Partners, 7.65 percent; China Asset Management Co., 6.59 percent; Innovation Works, 3.61 percent; Ce Yuan Ventures, 1.89 percent; and H Capital, 0.63 percent.

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