Meitu, Inc. provided consolidated earnings guidance for the year ended December 31, 2022. The board of directors of the company informed the shareholders of the company and potential investors that, based on a preliminary assessment of the Group's unaudited consolidated management accounts for the year ended December 31, 2022 as well as other relevant information currently available to the Board, it is expected that the Group may record a net profit attributable to the owners of the Company of between approximately RMB 85 million and RMB 130 million for the year ended December 31, 2022 (compared to the Group's net loss attributable to the owners of the Company of approximately RMB 44.5 million for the year ended December 31, 2021). The expected year over year turn to profitability is primarily attributable to the fair value gain on financial assets at fair value through profit and loss of between approximately RMB 485 million and approximately RMB565 million in relation to the Group's unlisted minority investments as at December 31, 2022 (compared to approximately RMB 184 million as at December 31, 2021).

Such increase in the fair value gain on FVTPL is mainly due to the strong business performance of an investee (the "Investee") in 2022 and is arrived at after taking into account, among other things, the preliminary draft valuation report prepared by a professional valuer in respect of the Group's unlisted minority investment in the Investee as at December 31, 2022.