Meitu Inc.， maker of a photo-enhancing app， believes it can break even as soon as next year， the company said in an updated prospectus filed late Monday （Nov. 28）， as it seeks to win over skeptical investors ahead of its Hong Kong IPO that could raise up to $710 million.

The money-losing company boasts a huge user base， but so far is both revenue- and profit-challenged as it looks for ways to translate its 400 million subscribers into real business. According to its updated prospectus， Meitu believes that e-commerce could be the answer to its profit problems.

The tech company， which lets users enhance selfies to make themselves look better， currently relies on smartphone sales for 95 percent of its modest 585 million yuan （$84.5 million） of revenue in the first half of this year. It reported a 2.2 billion yuan loss during that period.

Meitu expects to strongly boost that figure with the launch of a new e-commerce platform before July， as it aims to "diversify revenue streams and explore other monetization opportunities，" according to the prospectus filed with the Hong Kong stock exchange.

Meitu plans to spend as much as 217 million yuan next year on a social e-commerce platform with a 120-person team. More than 200 merchants have expressed interest in promoting themselves through the platform， the company said in its revised filing.

Analysts and investors have been concerned that Meitu could be classified as a hardware company， rather than a more attractive high-growth online firm worthy of an IPO that typically only internet giants enjoy. Meitu may raise as much as $710 million through the offering in Dec， making it the markets biggest high-tech IPO in nearly a decade， according to Bloomberg.

The company has set a price range of HK$8.50 （$1.10） to HK$9.60 for the offering and will set a final price in Dec.， Bloomberg said.

"Its trying to sell the idea that its a platform to boost its valuation， when it really is a just a tool. Meitus apps lack social networking or user community functions， which are prerequisites for any e-commerce vertical nowadays，" said Zong Ning， an independent consultant and tech-blogger in Beijing.

Meitu said that its large user base and strong relationships with online celebrities will give it leverage to target female users with cosmetics and apparel， and even sell customized T-shirts and mugs through selfie apps. But Zong said he remains skeptical that Meitu is serious about e-commerce.

"Its an extremely fragmented market at this stage， among a multitude of existing players， he said. "Meitu has no advantage. What makes it think it can achieve what WeChat couldnt？" he said， referring to Tencents popular mobile messaging app that boasts an even-larger user base than Meitus.