Photo/Zhang Xiaoqing (NBD)

Aug. 29 (NBD) -- On Wednesday, Chinese selfie touch-up app developer Meitu Inc. (01357.HK) announced its acquisition of approximately 57.09 percent stake in Dajie Net Investment Holdings LTD (Dajie Net), an online social networking and job hunting platform, for HK$395 million (50.36 million U.S. dollars).

The news didn't boost the equities of Meitu, with the stocks closed flat at HK$1.98 per share on Thursday (August 29).

It is worth noting that Meitu's market capitalization has shrunk by 92 percent to HK$8.36 billion from its 2017 peak of HK$100 billion.

National Business Daily (NBD) noticed that Dajie Net will operate independently from Meitu after the transaction is completed. Meitu spokesperson confirmed to NBD the news that its COO Cheng Yu has left while Dajie Net founder Wang Xiujuan will assume the position. 

In recent years, Meitu is seeking transformation from a photo-editing app developer to a photo-social platform by focusing on social media and internet value-added services while stripping off its e-commerce and smartphone businesses in 2018.  

The shift towards social platform tends to bear fruit, based on its latest interim results reporting a decreasing loss.

On August 26, Meitu reported its financial results for the first six months in 2019. The company reported 171.7 million yuan in adjusted net loss attributable to shareholders, representing a year-over year fall of 41.4 percent.

In the latest financial report, NBD also noticed that Meitu app's users spent an average length of 12 minutes per day, double that prior to its transformation. In addition to the improvement in user engagement, revenues from Meitu's online advertising business added 27.2 percent to 362.3 million yuan during the first half year of 2019, contributing 78 percent to the aggregate revenue of 464 million yuan.

Email: gaohan@nbd.com.cn