Group 1 - The core issue involves a legal dispute between Beijing Lehua Yuanyou Cultural Communication Co., Ltd. and Hangzhou NetEase Cloud Music Technology Co., Ltd. regarding a copyright licensing agreement [1] - The court hearing is scheduled to take place on May 21 at the People's Court of Xiaoshan District, Hangzhou [1]

Group 1 - As of May 14, 78 stocks reached a 52-week high, with Chang'an Renheng (08139), Hengchang Group International (01421), and Lehua Entertainment (02306) leading the high rate at 65.38%, 42.59%, and 38.52% respectively [1] - The closing price of Chang'an Renheng was 1.370, with a peak price of 2.580, indicating a significant increase [1] - Hengchang Group International closed at 0.690, reaching a high of 0.770, reflecting a 42.59% increase [1] Group 2 - Lehua Entertainment's closing price was 1.510, with a maximum price of 1.690, showing a 38.52% rise [1] - XL Ernan CO (07711) and XL Ernan CO-U had increases of 27.75% and 26.89% respectively, with closing prices of 125.000 and 15.960 [1] - Other notable stocks include Madison Holdings (08057) with a 25.00% increase and Du Fu Wine Group (00986) with a 17.48% increase [1] Group 3 - The report also highlights stocks that reached 52-week lows, with XI Ernan CO (07311) dropping by 36.46% to a closing price of 26.500 [3] - XI Ernan CO-U saw a decrease of 35.53%, closing at 3.386 [3] - Other stocks with significant declines include Touyun Biotechnology (01332) at -22.46% and Aoweiholdings (01370) at -16.67% [3]

Group 1: Automotive Sector - Li Auto (09863) saw a rise of over 4%, with record order volume during the May Day holiday and recent share purchases by the chairman [1] - XPeng Motors (09868) increased by over 3%, becoming the first Chinese new energy vehicle company to participate in the Milan Design Week and officially entering the Italian market [1] - The rare earth sector surged, with Jinli Permanent Magnet (06680) rising over 5% due to export controls leading to increased overseas rare earth prices [1] Group 2: E-commerce and Health - JD Group (09618) rose over 4%, reporting Q1 revenue of 301.1 billion yuan, a 15.8% year-on-year increase, and a net profit of 10.89 billion yuan, up 52.73% [2] - JD Health (06618) increased over 4%, with revenue of 16.645 billion yuan, a 25.5% year-on-year growth, and operating profit of 1.071 billion yuan, up 119.8% [2] Group 3: Music and Entertainment - Tencent Music (01698) rose over 12%, reporting total revenue of 7.36 billion yuan and adjusted net profit of 2.23 billion yuan, with online music service revenue growing by 15.9% [2] - NetEase Cloud Music (09899) increased over 11%, with analysts noting a positive growth phase in the online music industry due to improved competition and user willingness to pay [3] Group 4: Technology and AI - Baidu Group (09888) rose over 3%, planning to launch its Apollo Go autonomous taxi service in Switzerland and Turkey [3] - NuScale Power (SMR.US) reported quarterly sales of 13.4 million, significantly exceeding analyst expectations, leading to a rise of over 21% [6] Group 5: Shipping and Logistics - Shipping stocks collectively strengthened, with Pacific Shipping (02343) and Seaspan (01308) rising over 6%, and China Merchants Energy (02866) increasing over 12% [4]

港股影视娱乐股走强，乐华娱乐(02306.HK)涨超20%，网易云音乐(09899.HK)涨9.6%，智数科技集团 (01159.HK)涨7.5%。 ...

Summary of Key Points Core Viewpoint - As of April 30, a total of 43 stocks reached their 52-week highs, with notable performers including 廸生创建 (00113), 励晶太平洋 (00575), and 东方企控集团 (00018) achieving high rates of 17.01%, 13.73%, and 12.79% respectively [1]. 52-Week Highs - 廸生创建 (00113) closed at 6.840 with a peak of 6.880, marking a 17.01% increase [1]. - 励晶太平洋 (00575) reached a closing price of 0.970 and a high of 1.160, reflecting a 13.73% rise [1]. - 东方企控集团 (00018) had a closing price of 0.385 and a maximum of 0.485, showing a 12.79% increase [1]. - Other notable stocks include 茂盛控股 (00022) at 10.53%, and ＴＣＬ电子 (01070) at 8.70% [1]. 52-Week Lows - 中国疏浚环保 (00871) recorded a significant drop, closing at 0.098 with a low of 0.050, resulting in a -26.47% decline [2]. - 瑞和数智 (03680) fell to 0.330 with a low of 0.325, indicating a -12.16% change [2]. - 济丰包装 (01820) closed at 4.000, reaching a low of 3.500, which is a -12.06% decrease [2]. - Other companies experiencing declines include 中国卫生集团 (00673) at -8.97% and 亚太金融投资 (08193) at -6.56% [2].

Investment Rating - The investment rating for the company is maintained as "Buy" [2][7]. Core Views - The company operates a content platform with a high concentration of young users and a favorable competitive landscape, which is expected to drive growth in subscription revenue [7]. - The online music revenue for the company is projected to grow by 23% year-on-year in 2024, primarily driven by a 22% increase in subscription membership [7]. - The company has a significant growth opportunity in its paid user base, with a current payment rate of 26% compared to Spotify's 39% [7]. - The domestic music platform landscape is more favorable than overseas, with a higher theoretical profitability ceiling due to a more fragmented upstream market [7]. - The company has a strong focus on community building and user retention, particularly among younger demographics, which enhances its long-term growth potential [7]. - Following its re-inclusion in the Hong Kong Stock Connect in September 2024, the company's liquidity has improved significantly [7]. - The profit forecast has been adjusted, with expected revenues of 82 billion and 91 billion for 2025 and 2026 respectively, and adjusted net profits of 17.8 billion and 20.8 billion for the same years [7]. Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 7,867 million - 2024: 7,950 million - 2025E: 8,238 million - 2026E: 9,094 million - 2027E: 9,997 million [6][8] - Adjusted net profit forecasts are: - 2023: 819 million - 2024: 1,700 million - 2025E: 1,781 million - 2026E: 2,078 million - 2027E: 2,369 million [6][8] - The company’s price-to-earnings (PE) ratios for 2025-2027 are projected to be 18, 15, and 13 respectively [7].

Core Viewpoint - NetEase Cloud Music has issued a stern statement regarding the recent malicious rumors circulating online, which involve fabricated images that combine screenshots of its accounts with inappropriate content [1] Group 1 - The company emphasizes that the related images are entirely fabricated and have severely impacted its brand reputation [1] - NetEase Cloud Music has collected evidence against those who maliciously spread rumors and reserves the right to pursue legal action [1]

Financial Performance - The company's revenue increased by 1.1% from RMB 7,866,992 thousand in 2023 to RMB 7,950,146 thousand in 2024[7] - Gross profit rose by 27.5% from RMB 2,102,670 thousand in 2023 to RMB 2,681,512 thousand in 2024[7] - Profit before tax surged by 104.5% from RMB 767,679 thousand in 2023 to RMB 1,570,255 thousand in 2024[7] - Net profit for the year increased by 113.2% from RMB 734,182 thousand in 2023 to RMB 1,565,369 thousand in 2024[7] - Adjusted net profit reached RMB 1,700,078 thousand in 2024, up 107.7% from RMB 818,500 thousand in 2023[8] - Gross margin improved from 26.7% in 2023 to 33.7% in 2024, with adjusted net profit soaring from RMB 818.5 million to RMB 1,700.1 million, over 100% growth[13] - Operating costs decreased by 8.6% to RMB 5,268.6 million in 2024, primarily due to a reduction in content service costs[33] - Net profit for 2024 was RMB 1,565.4 million, compared to RMB 734.2 million in 2023, reflecting a significant improvement in profitability[31] - Adjusted net profit for 2024 was RMB 1,700.1 million, up from RMB 818.5 million in 2023, indicating strong operational performance[31] - Financial revenue decreased from RMB 437.9 million in 2023 to RMB 406.2 million in 2024, primarily due to a decline in interest income from USD fixed deposits[42] - Income tax expense dropped significantly from RMB 33.5 million in 2023 to RMB 4.9 million in 2024, mainly due to a reduction in withholding tax on interest income[43] - Profit for 2024 was recorded at RMB 1,565.4 million, a substantial increase from RMB 734.2 million in 2023[44] User Engagement and Growth - The number of subscription members grew significantly, contributing to a 22.2% increase in subscription revenue year-on-year[12] - Monthly active users continued to rise, with the daily active users to monthly active users ratio remaining above 30%[11] - User engagement improved, with increased retention rates and listening duration among subscribers[12] - Average listening time for long audio content per user increased significantly by 35.8% year-on-year in 2024[21] - User retention rates improved to 85%, reflecting successful engagement strategies implemented over the past year[8] - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[1] Strategic Initiatives and Partnerships - The company expanded its music content library, focusing on popular music to cater to younger audiences, including partnerships with major Korean music labels[12] - New strategic partnerships were established with major K-Pop labels like JYP Entertainment and CJ Entertainment, as well as with Kakao Entertainment[16] - The company plans to enhance collaboration with copyright holders to expand content supply in popular music genres such as rap and rock[16] - The company is focusing on expanding its market presence through strategic partnerships and acquisitions, as indicated by the various agreements signed[116][118] - The company is committed to developing new technologies and products, as evidenced by the ongoing collaborations in software and internet services[118] Operational Efficiency and Cost Management - The company is focused on optimizing operational efficiency and cost management to achieve sustainable growth[13] - Sales and marketing expenses decreased by 19.3% to RMB 611.5 million in 2024, attributed to a more cautious promotional strategy[35] - Research and development expenses decreased by 10.2% to RMB 779.7 million in 2024, due to improved utilization of technical resources[39] Capital and Funding - The company raised approximately HKD 3,160 million (equivalent to RMB 2,584 million) from the global offering, issuing 16,000,000 new shares[153] - 40% of the raised funds (HKD 1,264 million) is allocated to continue deepening community engagement, while another 40% is for innovation and enhancing technical capabilities[154] - 10% of the raised funds (HKD 316 million) is designated for selecting mergers, acquisitions, and strategic investments, particularly in content procurement, data, and audio technology[154] - The company plans to gradually utilize the remaining raised funds over the next 24 months as outlined in the prospectus[154] Corporate Governance and Compliance - The company has complied with all relevant laws and regulations during the reporting period, with no significant violations reported[98] - There were no major litigations or arbitrations involving the company during the reporting period[100] - The company has established a compensation committee to assist the board in formulating compensation policies for directors and senior management[105] - Independent non-executive directors have reviewed and confirmed that related party transactions during the reporting period comply with the listing rules[150] - The independent auditor confirmed no issues were found regarding related party transactions during the reporting period[151] Shareholder Information - As of December 31, 2024, the total number of issued shares is 216,722,361[180] - Mr. Ding Lei holds 129,365,718 shares, representing 59.69% of the company's equity[179] - The total number of shares held by major shareholders, excluding directors, is significant, with the largest being Mr. Ding's holdings[179] - The company has two active equity incentive plans: the 2016 Plan and the 2022 Restricted Share Unit Plan[183] - The 2022 Plan was adopted on August 18, 2022, and revised on June 15, 2023, replacing the 2016 Plan for new grants[183] - The purpose of the equity incentive plans is to align employee interests with those of shareholders and to attract and retain talent[184] Future Outlook - Future guidance indicates expected revenue growth of 20% for the upcoming quarter, driven by new product launches and market expansion[4] - The company plans to launch three new products in the next fiscal year, aiming to capture an additional 10% market share[3] - Overall, the company remains optimistic about achieving its long-term growth targets, with a focus on innovation and market leadership[10]

Core Viewpoint - NetEase Cloud Music has launched new features such as "Shen Guang Mode" player and "Colorful Skin" customization to enhance the visual experience for users while listening to music [1] Group 1 - The new features aim to provide a cooler and more colorful visual experience for users [1] - NetEase Cloud Music is focused on catering to different user needs by continuously developing practical and aesthetically pleasing product designs [1] - The company intends to offer more high-quality functional choices for its users [1]

摘要 Q&A 当前港股市场尤其是科技板块的投资机会和行情如何？ 今年（2025 年）港股市场，尤其是科技板块，我们认为长线依然非常有信心。 然而，近期市场面临一定的调整压力，主要原因包括二季度经济数据压力以及 4 月 2 日关税落地带来的市场调整和风险偏好下行。对于前期涨幅较大或估值 修复较多的板块，可能会面临一定的回调压力。但在此过程中，一些公司仍然 表现出被错杀的迹象。 为什么推荐在线音乐行业及其龙头公司腾讯音乐和网易云音乐？ 我们推荐在线音乐行业及其龙头公司腾讯音乐和网易云音乐主要基于以下三点 原因： • 2024 年在线音乐市场规模达 200 亿人民币，腾讯音乐占比超 150 亿，同比 增长 26%；网易云音乐会员订阅收入近 50 亿，同比增长超 20%，市场增长 态势良好。 • 在线音乐市场形成腾讯音乐（六至七成份额）和网易云音乐（两至三成份 额）的"一超一强"格局，竞争格局相对稳定，为长期发展奠定基础。 • 腾讯音乐侧重收入增长，关注订阅用户净增和 ARPU 值提升；网易云音乐则 依赖订阅会员数量驱动增长，提升空间在于付费用户转化和内容成本优化。 • 截至 2024 年末，腾讯音乐旗下 APP 整 ...