Core Insights - OceanBase has launched PowerRAG, an AI-focused application product that enables ready-to-use RAG application development, marking its commitment to the AI era [1] - The company aims to evolve from an integrated database to an integrated data foundation, focusing on a comprehensive layout across computing power, infrastructure, platform, application, and delivery forms [1] - Ant Group's CTO emphasized the importance of data in the development of AI and large models, highlighting four major challenges: increased data acquisition costs, scarcity of rigorous industry data, the need for enhanced multi-modal data processing capabilities, and difficulties in data quality assessment [1][7] Company Strategy - Ant Group will support OceanBase in achieving breakthroughs in key AI scenarios across finance, healthcare, and daily life, while promoting the Data×AI concept and architectural innovation [2][10] - OceanBase is positioned as a representative of Ant Group's continuous innovation and technical breakthroughs, particularly in handling massive transaction data [9] Industry Challenges - The cost of data acquisition has significantly increased, with readily available and inexpensive data resources nearing exhaustion, leading to a focus on generating high-quality data as a key success factor for digital enterprises [7] - High rigor industries, such as legal and healthcare, face challenges in data circulation due to stringent data quality requirements and a lack of digital knowledge, which hampers the effective application of generative AI [8] - The processing of multi-modal data remains a significant challenge, as future data will encompass not only text but also visual and tactile information, necessitating advanced handling capabilities [8] - Quality assessment of data is crucial, as it directly impacts the performance of large models, with the need for extensive evaluation data posing a significant challenge [9]

Core Insights - The CTO of Ant Group, He Zhengyu, emphasized that the lack of data is the root cause of the "hallucination" phenomenon in large models [1] - He stated that without data, there can be no development of AI, and the boundaries of data determine the upper limits of large model capabilities [1] - Ant Group aims to support breakthroughs in core scenarios of Ant AI, including finance, healthcare, and daily life, while promoting the open-source development of OceanBase [1] Data Challenges - The availability of cheap internet data is nearing exhaustion, leading to increased costs for data acquisition [1] - There are challenges related to the scarcity and difficulty of accessing rigorous industry data [1] - Multi-modal data processing and quality assessment of data are also significant challenges [1] Future Outlook - The success of enterprises in the future will largely depend on their ability to generate and apply data [1] - Ant Group is committed to advancing the realization of AGI (Artificial General Intelligence) through its support of OceanBase [1]

Core Viewpoint - Shanghai Jiao Tong University established a new Computer Science School, with Ant Group as a strategic partner, focusing on artificial intelligence and security research [1] Group 1: Strategic Collaboration - A strategic cooperation agreement was signed between Shanghai Jiao Tong University and Ant Group during the establishment ceremony [1] - The partnership aims to create the "Artificial Intelligence and Security Joint Research Center" by December 2024, targeting key technological breakthroughs in the AI era [1] Group 2: Talent Development - The collaboration will focus on the "Emerging Parallel Computing" talent project, guided by industry needs [1] - A dual mentorship and project-embedded training model will be implemented to foster deep collaboration between academia and industry [1] - The initiative aims to empower both technological advancements and talent cultivation, recruiting top research talents for joint projects in emerging parallel computing [1]

Core Viewpoint - Ant Group's subsidiary OceanBase is entering the AI era, focusing on building "DATA×AI" core capabilities and enhancing its organizational structure to support this transition [3][4]. Group 1: AI Strategy and Organizational Changes - OceanBase has appointed CTO Yang Chuanhui as the head of AI strategy, establishing new departments such as the AI Platform and Applications Department and the AI Engine Group [3][4]. - The AI Platform and Applications Department will focus on building the "DATA×AI" platform and advancing related application development, while the AI Engine Group will concentrate on developing AI inference engines [4]. Group 2: Historical Context and Future Outlook - Over the past 15 years, OceanBase has developed a high-quality integrated distributed database product, overcoming challenges related to stability, high concurrency, scalability, real-time analysis, and multi-cloud environments [4]. - The company aims to become a foundational data platform in the AI era by addressing the integration of DATA and AI, which is expected to reshape various industries [4]. Group 3: Support from Ant Group - OceanBase's AI strategy is strongly supported by Ant Group, which will provide access to all AI scenarios to assist in building the data foundation for the AI era [5].

Summary of Ant Group's IPO Discussion Company and Industry - **Company**: Ant Group Co. Ltd. - **Industry**: Fintech, specifically focusing on digital payments and financial technology Core Points and Arguments - Ant Group is in discussions with regulators for an IPO of its international unit, Ant International, in Hong Kong, with no current policy obstacles indicated [3][4][5] - The company is 33% controlled by Alibaba Group, and recent governance restructuring has allowed Ant Group to potentially revive its stalled IPO [6][7] - Jack Ma, the founder, reduced his voting rights from 53.46% to just over 6% as part of a broader overhaul following regulatory crackdowns in 2020 [6][7] - Under current IPO regulations, a change in actual control allows Ant Group to list in Hong Kong as soon as early 2024 [8] - Ant Group initially announced its IPO intentions in July 2020, aiming to raise $34.5 billion, but the application was suspended in November 2020 due to regulatory changes [9][10] - Recent developments, such as the acquisition of a controlling stake in Bright Smart Securities, have fueled speculation about the revival of the IPO [11][12] - Market insiders believe a backdoor listing through Bright Smart Securities is unlikely due to regulatory challenges [13][15] Additional Important Information - Ant International, headquartered in Singapore, has seen its revenue contribution grow from approximately 5% in 2020 to around 20% by 2024, with an estimated market valuation of 200 billion yuan ($27.8 billion) [17][18] - The company started in 2015, focusing on cross-border payments for Chinese tourists and has expanded its operations significantly in Southeast Asia [19] - Ant Group is also enhancing its overseas lending business through platforms like Anext Bank and Bettr, targeting small and midsize businesses [20]

Core Viewpoint - Ant Group plans to separately list its overseas segment, Ant International, registered in Singapore, on the Hong Kong stock exchange, with no current policy obstacles reported in discussions with regulatory authorities [1] Group 1: Company Overview - Ant International's core products include Alipay+, Antom, and WorldFirst, which cover C-end payment, B-end acquiring, and B2B cross-border payment services [1] - Ant International's revenue accounts for approximately 20% of Ant Group's total revenue [1]

J P M O R G A N Asia Pacific Equity Research 27 April 2025 Futu Holdings Our thoughts on Ant Group set to take control of a retail broker in HK Futu's share price fell 6.4% on Friday (vs. KWEB index -0.2%), following the news that Ant Group is acquiring 50.55% stake in Bright Smart Securities (耀才 證券), a retail broker in HK (link). For details about Bright Smart Securities and comparison with Futu, please refer to Table 1Comparisn betwBrigh Smartnd Fuand Table 2Sumary ofkeprating dforFut andBright Smarecuits ...

Core Viewpoint - The acquisition of Yao Cai Securities by Ant Group's subsidiary, Shanghai Yun Jin, is expected to significantly enhance the company's growth and digital transformation, positioning it as a leading trading platform backed by advanced technology [1][6]. Group 1: Acquisition Details - Ant Group's subsidiary, Shanghai Yun Jin, plans to acquire approximately 858 million shares of Yao Cai Securities at a price of HKD 3.28 per share, totaling HKD 28.14 billion, which represents a 17.6% premium over the last trading price before suspension [3][4]. - The acquisition will result in a change of ownership for Yao Cai Securities, as the shares represent about 50.55% of the total issued shares [3][4]. Group 2: Company Background - Yao Cai Securities was founded in 1995 by Ye Maolin and primarily engages in stock trading, margin financing, securities custody, futures and options trading, leveraged foreign exchange trading, and spot gold and silver trading [4][5]. - The company has a history of offering low commission rates, having reduced its commission from 0.25% to 0.05% in 2003, which contributed to its rapid growth [5]. Group 3: Financial Performance - For the fiscal years 2022 to 2024, Yao Cai Securities reported total revenues of HKD 10.14 billion, HKD 10.50 billion, and HKD 11.21 billion, with year-on-year changes of -19.96%, -4.05%, and 3.09% respectively [5]. - The net profit attributable to shareholders for the same period was HKD 4.55 billion, HKD 5.43 billion, and HKD 5.06 billion, with year-on-year changes of -20.23%, 10.53%, and -9.95% respectively [5]. Group 4: Strategic Implications - The acquisition is expected to drive future business growth for Yao Cai Securities, enhance its digital transformation, and expand its service offerings to a broader customer base [6]. - Ant Group aims to leverage this acquisition to fill regulatory gaps in cross-border financial services and strengthen its position in the global financial services market [6].

Core Insights - Ant Group's subsidiary OceanBase has announced a new AI strategy led by CTO Yang Chuanhui, who will take the lead position in this initiative [1] - The establishment of a new AI Platform and Application Department, along with an AI Engine Group, aims to enhance the development and application of the "DATA×AI" platform [1] - OceanBase CEO Yang Bing revealed that the AI strategy has received full support from Ant Group, which will open all AI scenarios to OceanBase [1]

Core Insights - Ant Group has announced a profit distribution plan, continuing its trend of stable dividends, reflecting strong operational performance and financial health [2][3] - The company emphasizes its commitment to technology-driven growth, with a focus on AI and innovation, aiming to create greater value for customers and long-term returns for shareholders [2][3] Financial Performance - The recent dividend distribution is based on the company's operational results from the past year, with a notable increase in AI investments and accelerated growth in innovative businesses [2] - Ant Group has maintained a high level of R&D investment, with over 10% of revenue allocated to research and development for the past three years [3] Talent Acquisition and Development - Ant Group has launched "Plan A," a special initiative to recruit top AI researchers from leading global universities, aiming to cultivate the next generation of technology leaders [3][4] - The recruitment initiative targets candidates with backgrounds in computer science, software engineering, AI, and other relevant fields, emphasizing traits such as ambition, adaptability, altruism, and analytical skills [4][7] Strategic Initiatives - The company is committed to its "AI First" strategy, exploring AGI and promoting large model applications in various sectors, including healthcare and wealth management [2][3] - Ant Group's "Plan A" initiative is part of a broader strategy to attract elite research talent, similar to programs from other tech giants, offering customized training paths and extensive research resources [7]