Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (00728) at 72.05%, Green Power Environmental (01330) at 69.19%, and China Shenhua (01088) at 67.94% [1] - Alibaba-W (09988), Horizon Robotics-W (09660), and BYD Company (01211) saw the largest increases in holding amounts over the last five trading days, with increases of +126.42 billion, +37.06 billion, and +23.82 billion respectively [1] - The largest decreases in holding amounts over the last five trading days were recorded by the Tracker Fund of Hong Kong (02800) at -19.72 billion, China Telecom (00728) at -13.62 billion, and Kuaishou-W (01024) at -10.29 billion [1] Hong Kong Stock Connect Latest Holding Ratios - China Telecom (00728): 100.01 billion shares, 72.05% holding ratio [1] - Green Power Environmental (01330): 2.80 billion shares, 69.19% holding ratio [1] - China Shenhua (01088): 22.95 billion shares, 67.94% holding ratio [1] - Other notable companies include Kaisa New Energy (01108) at 67.53% and COSCO Shipping Energy (01138) at 65.47% [1] Recent Increases in Holdings (Last 5 Trading Days) - Alibaba-W (09988): +126.42 billion, +88.22 million shares [1] - Horizon Robotics-W (09660): +37.06 billion, +361.88 million shares [1] - BYD Company (01211): +23.82 billion, +22.64 million shares [1] - Other companies with significant increases include Meituan-W (03690) and Ping An Insurance (02318) [1] Recent Decreases in Holdings (Last 5 Trading Days) - Tracker Fund of Hong Kong (02800): -19.72 billion, -73.80 million shares [3] - China Telecom (00728): -13.62 billion, -233.30 million shares [3] - Kuaishou-W (01024): -10.29 billion, -14.02 million shares [3] - Other companies with notable decreases include Pop Mart (09992) and Meitu (01357) [3]

Core Viewpoint - The report from Dongfang Securities projects Meitu Inc. (01357) to achieve adjusted net profits of 0.943 billion, 1.234 billion, and 1.593 billion CNY for the years 2025 to 2027, with a target price of 13.25 HKD per share and a "buy" rating [1] Group 1: Financial Projections - Expected adjusted net profits for Meitu are 0.943 billion CNY in 2025, 1.234 billion CNY in 2026, and 1.593 billion CNY in 2027 [1] - Target price set at 13.25 HKD per share [1] Group 2: Market Dynamics - The image editing sector benefits from significant advancements in diffusion models for generative tasks, providing foundational support for product innovation [1] - Meitu's accumulation of technical and aesthetic data positions the company to capitalize on technological dividends [1] Group 3: Product Development - The company is accelerating product version iterations and introducing new features, with a notable increase in AI functionality [1] - The domestic market is characterized by stable competition, while overseas markets contribute significantly to user growth [1] Group 4: Competitive Landscape - In the domestic market, Meitu and Byte (Xingtu) are the core players, with intense competition having stabilized [1] - Meitu's domestic monthly active users (MAU) remain stable at 170 to 180 million, with user growth primarily driven by overseas markets [1] Group 5: AI and Monetization Potential - The company is optimistic about AI driving accelerated paid penetration of its products, as AI features enhance product effectiveness [2] - Current paid feature penetration for Meitu's products is relatively low compared to competitors, indicating significant room for growth [2] - The paid penetration rate for tool-based products is around 10%, while content-based products range from 20% to 30% [2]

Core Viewpoint - The report from Dongfang Securities projects Meitu's adjusted net profit for 2025-2027 to be 0.943 billion, 1.234 billion, and 1.593 billion CNY respectively, with a target price of 13.25 HKD per share and a "Buy" rating [1] Group 1: Financial Projections - Meitu's adjusted net profit is expected to grow significantly, reaching 0.943 billion CNY in 2025, 1.234 billion CNY in 2026, and 1.593 billion CNY in 2027 [1] - The target price set for Meitu is 13.25 HKD per share, indicating a positive outlook for the company's stock [1] Group 2: Market Dynamics - The image editing sector is benefiting from advancements in diffusion models, which provide foundational support for product innovation [1] - Meitu's domestic market is characterized by stable competition, with the primary user growth coming from overseas markets [1] - The company maintains a stable monthly active user (MAU) count of 170-180 million in the domestic market, with growth driven mainly by international users [1] Group 3: Product Development and AI Integration - Meitu is accelerating product iteration and feature updates, with a significant increase in AI functionalities [1] - The company is leveraging its accumulated technical and aesthetic data to capitalize on technological advancements [1] - AI features are expected to enhance product differentiation from overseas competitors, particularly in niche markets like body and hair beauty [1] Group 4: Revenue Potential and Payment Penetration - The company is optimistic about AI driving faster payment penetration in its products, as current paid feature adoption remains low to moderate [2] - Existing tools have a payment penetration rate of around 10%, while content-based products range from 20% to 30% [2] - Historical trends in the content copyright industry show a significant increase in payment penetration, suggesting potential for Meitu to improve its paid feature adoption [2]

Core Viewpoint - The AI imaging application Wink, owned by Meitu, is gaining significant popularity globally, particularly in Southeast Asia and the Middle East, due to its new "AI Real Person Figurine" feature that simplifies user interaction [1] Group 1: Market Performance - Wink has topped the overall App Store charts in Vietnam and achieved the first position in the category charts in Saudi Arabia, while also ranking in the top three in Thailand and Indonesia [1] - In the U.S. market, Wink's ranking has entered the Top 20, indicating a rapid rise in its popularity [1] Group 2: Product Features - The recent success of Wink is attributed to the newly launched "AI Real Person Figurine" feature, which allows users to generate content with a simple one-click process, eliminating the need for complex commands [1]

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (00728) at 72.15%, Green Power Environmental (01330) at 69.21%, and China Shenhua (01088) at 67.95% [1] - Alibaba-W (09988), Horizon Robotics-W (09660), and Meituan-W (03690) saw the largest increases in holding amounts over the last five trading days, with increases of +8.316 billion, +3.294 billion, and +2.859 billion respectively [1] - The largest decreases in holding amounts over the last five trading days were recorded by the Tracker Fund of Hong Kong (02800) at -1.974 billion, Kuaishou-W (01024) at -1.353 billion, and China Telecom (00728) at -1.284 billion [3] Hong Kong Stock Connect Holding Ratios - China Telecom (00728) has a holding of 10.014 billion shares, representing 72.15% [1] - Green Power Environmental (01330) has a holding of 0.280 billion shares, representing 69.21% [1] - China Shenhua (01088) has a holding of 2.295 billion shares, representing 67.95% [1] Recent Increases in Holdings - Alibaba-W (09988) increased by +8.316 billion, with a change of +58.233 million shares [1] - Horizon Robotics-W (09660) increased by +3.294 billion, with a change of +32.610 million shares [1] - Meituan-W (03690) increased by +2.859 billion, with a change of +28.108 million shares [1] Recent Decreases in Holdings - Tracker Fund of Hong Kong (02800) decreased by -1.974 billion, with a change of -73.655 million shares [3] - Kuaishou-W (01024) decreased by -1.353 billion, with a change of -18.241 million shares [3] - China Telecom (00728) decreased by -1.284 billion, with a change of -21.994 million shares [3]

Core Insights - The article highlights the net inflow and outflow of capital in the Hong Kong stock market, with specific focus on the top companies experiencing significant changes in capital flow [1][2]. Group 1: Net Inflow - Alibaba-W (09988) leads with a net inflow of 5.14 billion, representing a 25.60% increase in capital [2]. - Horizon Robotics-W (09660) follows with a net inflow of 1.375 billion, showing a 24.13% increase [2]. - Tencent Holdings (00700) has a net inflow of 1.076 billion, with an 8.04% increase [2]. - Other notable companies with significant inflows include BYD Company (01211) with 1.031 billion and WuXi Biologics (02269) with 542 million [2]. Group 2: Net Outflow - Pop Mart (09992) experiences the highest net outflow at -649 million, reflecting a -6.94% decrease [2]. - Kuaishou-W (01024) has a net outflow of -581 million, with a -13.67% decrease [2]. - Meitu Inc. (01357) sees a net outflow of -472 million, indicating a -24.59% decrease [2]. - Other companies with significant outflows include Xiaomi Group-W (01810) at -368 million and China Merchants Bank (03968) at -227 million [2]. Group 3: Net Inflow Ratio - The top net inflow ratio is held by Wisdom Hong Kong 100 (02825) at 100.00%, with a total inflow of 5.924 billion [3]. - Sinopec Kantons Holdings (00934) follows with a net inflow ratio of 72.10%, totaling 6.5044 million [3]. - Kunlun Energy (00135) has a net inflow ratio of 63.22%, with an inflow of 5.6388 million [3]. Group 4: Net Outflow Ratio - iFlytek Medical Technology (02506) leads in net outflow ratio at -48.28%, with an outflow of -13.4085 million [3]. - VTECH Holdings (00303) has a net outflow ratio of -45.83%, totaling -15.8089 million [3]. - NetDragon (00777) follows with a net outflow ratio of -45.72%, with an outflow of -41.1797 million [3].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不會就因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承 擔任何責任。 Meitu, Inc. 美图公司 （於開曼群島註冊成立的有限公司，並以「美圖之家」名稱於香港經營業務） (股份代號:1357) 於二零二五年九月十日（星期三）舉行的特別股東大會的 投票表決結果 參考美图公司（「本公司」）日期為二零二五年八月二十五日的通函（「通函」）及特別股 東大會通告（「大會通告」）。除非文義另有所指，否則本公告所用詞彙與通函所界定者具 有相同涵義。 特別股東大會的投票表決結果 董事會宣佈本公司於二零二五年九月十日（星期三）上午11 時正（香港時間）在香港九龍柯 士甸道西一號環球貿易廣場香港麗思卡爾頓酒店8樓碧玉廳舉行的特別股東大會上，大會通 告所載的第一項建議決議案（「第一項決議案」）已獲股東以投票表決方式正式通過。有關 決議案的詳情，股東可參考大會通告和通函。 投票表決結果如下： | | 普通決議案 | 票數 （概約百分比） | | | --- | --- | --- | --- ...

Core Viewpoint - The article discusses the evolution and decline of various Chinese mobile phone brands, highlighting the competitive landscape and the challenges faced by companies like Waveguide, Gionee, and Meitu, while also emphasizing the rise of new leaders in the industry. Group 1: Market Dynamics - Huawei and Apple are in direct competition, with Huawei's Mate XT and Apple's iPhone 17 series launching in September [6][10] - The latest IDC report indicates that by Q2 2025, Huawei is expected to regain the top position in the domestic market with an 18.1% share, followed closely by Vivo and OPPO [9][10] - The combined market share of Huawei, Xiaomi, OPPO, and Vivo accounts for approximately 66% of the Chinese smartphone market, indicating a strong domestic presence [10] Group 2: Historical Context - Over the past 20 years, more than 87 mobile phone brands have disappeared in China, with a survival rate of less than 15% [11] - Waveguide was the first Chinese brand to gain significant market share in the feature phone era, achieving sales of 700,000 units in 2000 and becoming the top domestic brand for four consecutive years [19] - The launch of the first iPhone in 2007 marked a significant shift in the mobile phone industry, leading to the decline of feature phone giants like Nokia [21][23] Group 3: Brand Decline - Gionee, once a leader in the market, faced a decline due to late entry into the smartphone segment and poor product reception, leading to its eventual bankruptcy in 2018 [27][28] - Meitu and Douwai targeted the female market but failed to maintain their competitive edge as other brands improved their camera technology and overall value [30][37] - The entry of cross-industry players like Haier and Gree into the smartphone market was marked by poor performance and eventual exit due to lack of market presence [40][41] Group 4: Lessons Learned - The article emphasizes that successful marketing and distribution strategies alone are insufficient; companies must also focus on technology and innovation to survive in the competitive landscape [28][49] - The experiences of brands like Meizu and Smartisan illustrate the risks of prioritizing product aesthetics over market demands and operational capabilities [50][57] - The evolution of the smartphone industry in China reflects a shift from following global trends to establishing new standards and innovations [66][67]

Summary of Meitu Inc. Conference Call Company Overview - **Company**: Meitu Inc (1357.HK) - **Industry**: Greater China IT Services and Software - **Current Stock Rating**: Overweight (OW) - **Price Target**: HK$15.70, representing a 33% upside from the closing price of HK$11.82 on August 29, 2025 [6][9][10] Key Points and Arguments 1. **Growth Trajectory**: Meitu's growth is considered intact despite competition from new AI models like Google's Nano Banana. The evolution of AI models is expected to enhance Meitu's AI features [1][15]. 2. **AI Model Neutrality**: Meitu has adopted a model-neutral approach, integrating various AI capabilities into its offerings, including the recent incorporation of Google Nano Banana into its international products [9][15]. 3. **Last Mile Value**: The company emphasizes the importance of delivering the "last mile" in AI applications, which involves optimizing outcomes that general AI models cannot fully achieve. This complexity creates a high entry barrier for competitors [9][16]. 4. **Focus on Non-Professional Scenarios**: Meitu targets non-professional leisure and productivity scenarios, particularly in e-commerce design, allowing it to accumulate specialized knowledge and optimize user experience [16][19]. 5. **Data Utilization**: The company has amassed significant vertical data, which it uses for post-training its models, resulting in better performance compared to general AI models [16][19]. 6. **Core vs. Gameplay Features**: Meitu's core features, such as AI face retouching, drive user subscriptions, while gameplay features attract users for fun. The company believes it can integrate new AI models to enhance gameplay features without compromising its core offerings [16][19]. Financial Metrics - **Revenue Projections**: Expected revenue growth from Rmb3,341 million in FY 2024 to Rmb6,771 million by FY 2027 [6]. - **EBITDA Projections**: Anticipated increase from Rmb584 million in FY 2024 to Rmb2,131 million by FY 2027 [6]. - **Earnings Per Share (EPS)**: Projected EPS growth from Rmb0.13 in FY 2024 to Rmb0.40 by FY 2027 [6]. Risks and Considerations 1. **Upside Risks**: Faster penetration of paying users due to AI adoption, higher-than-expected average revenue per paying user (ARPPU), and improved operating leverage [25]. 2. **Downside Risks**: Slower growth in paying users, increased R&D expenses for AI development, and intensified competition from larger internet companies [25]. Additional Insights - **Market Reaction**: Meitu's share price dropped 14% following the viral success of Google's Nano Banana, raising concerns about AI cannibalization of software [9][10]. - **Strategic Partnerships**: Meitu has partnered with Alibaba to enhance its e-commerce design capabilities, leveraging private data for better AI model training [16][19]. This summary encapsulates the essential insights from the conference call regarding Meitu Inc.'s strategic positioning, financial outlook, and market dynamics.

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights a robust growth in domestic travel during the summer of 2025, with a total of 11.9 billion people expected to travel, reflecting a year-on-year increase of 4.3% [5][16] - The report emphasizes the strong performance of Long White Mountain, which received 825,200 visitors in August 2025, marking a 14.9% increase year-on-year, setting a new monthly record [30] - The report discusses the rise of AI-driven creative applications, particularly the success of Meitu's AI features, which have gained significant traction globally [6][32] - The report notes the acceleration of internationalization efforts by Proya, including a strategic investment in Huazhihao, aimed at expanding its global footprint [7][42] Summary by Sections Travel and Tourism - Domestic travel is projected to reach 11.9 billion trips during the summer of 2025, with air travel expected to carry 147 million passengers, a 3.4% increase year-on-year [5][16] - Hotel performance is under pressure, with average room rates declining, particularly in mid-range and economy segments, while luxury hotels remain stable [22][29] - Long White Mountain's visitor numbers in August 2025 reached 825,200, a 14.9% increase from the previous year, with cumulative visitors for the year at 2.67 million, up 11.7% [30] AI and Creative Applications - Meitu's AI features, particularly the Nano Banana, have gained popularity, leading to top rankings in app stores in Thailand and Laos [6][35] - The introduction of the WearWow AI fashion app aims to enhance user experience by integrating shopping capabilities directly into the app [37][39] - As of the first half of 2025, Meitu's paid subscribers in the U.S. surpassed those in Japan, indicating strong growth potential in Western markets [40] Beauty Industry - Proya's investment in Huazhihao aims to leverage the brand's appeal among Gen Z consumers, focusing on high aesthetic and emotional value [7][42] - The report indicates that domestic beauty brands are outperforming international brands on platforms like Douyin, with a notable shift towards higher-priced products [57][59] - The beauty market is witnessing a trend towards premiumization, with a significant increase in the sales proportion of high-priced items [58][60]