Core Insights - The Middle East is often referred to as a land of opportunity, but the true potential is deeply buried, requiring significant effort and resources to uncover [2][14] - Chinese companies have successfully tapped into the social needs of the Middle Eastern market by localizing their products and understanding cultural nuances [7][8] Market Characteristics - The social culture in the Middle East emphasizes in-person gatherings, with a strong preference for chatting and playing games, which has been translated into online platforms [6][8] - The region has a high engagement with social media, with users averaging 8.4 accounts each, and spending over 3.5 hours daily on these platforms [8][12] Company Performance - Companies like Yalla and Chizi City have seen significant growth, with Chizi City reporting a revenue increase of over 50% in 2024 and a 40% growth in the first half of 2025 [9][10] - Yalla's revenue for 2024 was approximately $340 million, with a stock price increase of over 70% since the beginning of the year [10] Challenges and Opportunities - Entering the Middle Eastern market presents challenges such as high entry costs and the need for extensive local networks, which can be a barrier for smaller companies [15] - The market is becoming increasingly competitive, with more companies from China and Europe entering, making it essential for established players to deepen their local presence [15][14] Cultural Considerations - Understanding local customs and religious practices is crucial for product development, as certain features may not resonate well with the cultural context [13][14] - The unique social dynamics in the region, such as the tribal system, influence user behavior and preferences in social applications [8][12]

Group 1 - The overall market sentiment has recently declined, leading to a correction in the online platform sector, with current valuations between the mean and the 25th percentile [1] - The sector's fundamentals remain robust, with healthy growth in key areas such as advertising and gaming, and major companies like Tencent showing improved profit margins and operational leverage [1] - AI is still in a phase of rapid development, and compared to aggressive capital expenditures by overseas tech giants, domestic internet companies are making more practical and sustainable investments, indicating that AI will be a significant growth opportunity for some internet companies in the future [1] Group 2 - Overall, the fundamentals are stable, AI potential remains, but valuations are decreasing, which enhances the attractiveness of the sector [1] - The core recommendation is Tencent Holdings, with additional attention suggested for Kuaishou, NetEase, Zhiyuan Technology, and Bilibili [1]

Core Viewpoint - The company, Zhizi City Technology, is a leading global social entertainment platform in China, focusing on diverse social experiences for users from various cultural backgrounds, particularly in the MENA region and Southeast Asia [1][2]. Group 1: Business Overview - Zhizi City Technology's revenue for the first half of 2025 reached 3.181 billion yuan, marking a 40% year-on-year growth, with SUGO and TopTop revenues growing over 100% [1]. - The company's core business, mass social networking, is expected to account for over 70% of total revenue by 2024, utilizing a "bush" product matrix strategy that includes live, voice, and game social products [2]. - The company has established over 20 operational centers globally, employing around 800 local team members to drive localized execution [2]. Group 2: Strategic Initiatives - The acquisition of Blue City Brothers has strengthened the company's position in the diverse social networking sector, with Blue City Brothers achieving approximately 7.45 million MAU and a 47% DAU/MAU ratio as of 2024 [2]. - The company is developing a second growth curve through innovative businesses, including premium mobile games, social e-commerce, and AI-driven content communities [2]. - The mobile game "Alice's Dream: Merge Games" has seen over 60% year-on-year revenue growth, with nearly 10 million USD in revenue in May 2024 [2]. Group 3: Financial Projections and Valuation - The company is projected to achieve revenues of 6.9 billion, 8.41 billion, and 9.7 billion yuan from 2025 to 2027, with corresponding net profits of 950 million, 1.24 billion, and 1.49 billion yuan, reflecting year-on-year growth rates of 97.0%, 31.3%, and 19.7% respectively [3]. - As a leading player in the overseas social sector, the company has been assigned a target price of 14.5 HKD and a "buy" rating [3].

Core Viewpoint - Everbright Securities initiates coverage on Zhiyu City Technology (09911), setting a target price of HKD 14.5 and a "Buy" rating, highlighting its leadership in the overseas social sector and successful localization strategy [1] Group 1: Company Overview - Zhiyu City Technology is a leading global social entertainment platform from China, focusing on diverse social experiences for users from various cultural backgrounds, particularly in the Middle East, North Africa, and Southeast Asia [1] - The company achieved revenue of RMB 3.181 billion in H1 2025, representing a 40% year-on-year growth, with SUGO and TopTop revenues both exceeding 100% growth [1] Group 2: Social Business Segments - The core business of the company is its mass social segment, expected to account for over 70% of total revenue by 2024, utilizing a "bush" product matrix strategy to cover diverse social needs through products like MICO, YoHo, TopTop, and SUGO [2] - The company has established operational centers in over 20 countries, with a localized team of approximately 800 people, employing a collaborative model of "Chinese direction, local execution" [2] - The acquisition of BlueCity Brothers enhances the company's position in the diverse social segment, with BlueCity's MAU reaching approximately 7.45 million and a DAU/MAU ratio of 47% [2] Group 3: Innovation and Growth - The company is developing a diversified business ecosystem centered around premium mobile games, social e-commerce, AI, and short dramas, with a focus on collaborative growth [3] - The flagship mobile game, "Alice's Dream: Merge Games," saw over 60% year-on-year revenue growth in 2024, with nearly USD 10 million in revenue by May 2024 [3] - The company is exploring AI-driven social entertainment through its self-developed AIAgent and the AI content community Aippy, while initial results in the short drama sector are promising, targeting Southeast Asia and the Americas [3] - Revenue and profit growth are expected to be robust, with projected revenues of RMB 6.9 billion, 8.41 billion, and 9.7 billion for 2025-2027, and net profits of RMB 0.95 billion, 1.24 billion, and 1.49 billion, reflecting year-on-year growth rates of 97.0%, 31.3%, and 19.7% respectively [3]

Core Viewpoint - Everbright Securities has initiated coverage on Zhibocheng Technology (09911), a leading overseas social enterprise, with a target price of HKD 14.5 and a "Buy" rating, highlighting its successful localization strategy and extensive layout in emerging social entertainment markets, particularly in the Middle East, North Africa, and Southeast Asia [1] Group 1: Company Overview - Zhibocheng Technology is a leading global social entertainment platform from China, primarily focusing on diverse social experiences for users from various cultural backgrounds, especially in the Middle East and North Africa [2] - The company achieved a revenue of RMB 3.181 billion in H1 2025, representing a year-on-year growth of 40%, with SUGO and TopTop revenues growing over 100% [2] - The net profit for H1 2025 reached RMB 489 million, corresponding to a net profit margin of 15.4% [2] Group 2: Business Segments - The company's core business is the mass social segment, expected to account for over 70% of total revenue by 2024, utilizing a "bush" product matrix strategy to cover diverse social products like MICO, YoHo, TopTop, and SUGO [3] - Zhibocheng Technology has established operational centers in over 20 countries, with a localized team of approximately 800 people, employing a collaborative model of "Chinese direction and local execution" [3] - The acquisition of BlueCity Brothers has strengthened the company's position in the diverse social segment, with BlueCity's MAU reaching approximately 7.45 million and a DAU/MAU ratio of 47% [3] Group 3: Innovation and Growth - The company is developing a diversified business ecosystem centered around premium mobile games, social e-commerce, AI, and short dramas, with a focus on collaborative growth [4] - The premium mobile game "Alice's Dream: Merge Games" has seen over 60% year-on-year revenue growth in 2024, with nearly USD 10 million in revenue in May 2024 [4] - Zhibocheng Technology is exploring AI-driven social entertainment through its self-developed AIAgent and the AI content community Aippy, while initial results in the short drama business are emerging in Southeast Asia and the Americas [4] - Revenue and profit growth are expected to be robust, with projected revenues of RMB 6.9 billion, 8.41 billion, and 9.7 billion for 2025-2027, and net profits of RMB 950 million, 1.24 billion, and 1.49 billion, reflecting year-on-year growth rates of 97.0%, 31.3%, and 19.7% respectively [4]

Investment Rating - The report gives a "Buy" rating for the company with a target price of HKD 14.5, compared to the current price of HKD 10.54 [4][6]. Core Insights - The company, Chi Zi Cheng Technology, is a leading global social entertainment platform from China, focusing on diverse social experiences for users from various cultural backgrounds, primarily in the Middle East and North Africa [1][15]. - The company has achieved significant revenue growth, with a 40% year-on-year increase in revenue for the first half of 2025, reaching RMB 3.181 billion, and a net profit of RMB 489 million, corresponding to a net profit margin of 15.4% [1][25]. Summary by Sections Company Overview - Chi Zi Cheng Technology has transitioned from a tool-based application to a diversified social product matrix, focusing on global social entertainment [15][16]. - The company has established a strong localized operational team with around 800 members across more than 20 countries, implementing a "China-led, local-driven" collaborative model [2][19]. Social Business Strategy - The company's core social business, which is expected to account for over 70% of total revenue by 2024, employs a "bush" product matrix strategy, including products like MICO, YoHo, TopTop, and SUGO [2][35]. - The company has successfully integrated acquisitions, such as Blue City Brothers, to enhance its presence in the diverse social market, with Blue City's MAU reaching approximately 7.45 million [2][3]. Innovative Business Growth - The company is developing a second growth curve through innovative businesses, including premium mobile games and social e-commerce, with the flagship game "Alice's Dream: MergeGames" showing over 60% revenue growth in 2024 [3][4]. - The social e-commerce segment is expanding, with acquisitions enhancing user demographics and engagement [3][4]. Financial Forecast and Valuation - The company is projected to achieve revenues of RMB 69.0 billion, 84.1 billion, and 97.0 billion for the years 2025, 2026, and 2027, respectively, with net profits of RMB 9.5 billion, 12.4 billion, and 14.9 billion, reflecting growth rates of 97.0%, 31.3%, and 19.7% [4][5]. - The report highlights the company's strong localization strategy and successful "product + country" replication strategy, positioning it well in emerging social entertainment markets [4][5].

Group 1 - The company, Zhi Zi Cheng Technology (09911), announced that from December 11 to December 17, 2025, Three D Partners Limited will purchase a total of 532,000 shares from the market under a share purchase agreement [1] - Three D Partners Limited will hold the shares acquired through the purchase until they vest according to the restricted share unit award plan [1]

Group 1 - The company, Zhizi City Technology (09911), announced that from December 11 to December 17, 2025, Three D Partners Limited will purchase a total of 532,000 shares from the market under a share purchase agreement [1] - Three D Partners Limited will hold the purchased shares until they vest according to the restricted share unit award plan [1]

Core Viewpoint - Three D Partners Limited has purchased a total of 114,082,000 shares of the company from the market between April 28, 2023, and December 10, 2025, followed by an additional purchase of 532,000 shares from December 11 to December 17, 2025, indicating a significant investment in the company [1] Group 1 - Three D Partners Limited's total share acquisition amounts to 114,082,000 shares during the specified period [1] - An additional 532,000 shares were purchased by Three D Partners Limited shortly after the initial acquisition [1] - The shares acquired will be held until they vest under the restricted share unit award plan [1]

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，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 NEWBORN TOWN INC. 赤子城科技有限公司 （於開曼群島註冊成立的有限公司） （股份代號：9911） 於本公告日期，本公司執行董事為劉春河先生、李平先生、葉椿建先生及 蘇鑒先生；及本公司獨立非執行董事為陳玉宇先生、池書進先生及陳思超女士。 董事會認為，於現況下進行股份購買展示出本公司對自身業務展望及前景充滿信 心，且最終會為本公司帶來裨益及為股東創造價值。董事會認為，本公司現有財 務資源足以支持股份購買同時維持穩健的財務狀況。 董事會將不時審查並全權酌情決定Three D Partners Limited進行任何進一步股份 購買的適當時機，或根本不進行任何購買。 承董事會命 赤子城科技有限公司 董事會主席 劉春河 北京，2025年12月17日 自願公告 根據受限制股份單位獎勵計劃購買股份 茲提述赤子城科技有限公司（「本公司」）於2023年4月27日就其有意向受限制股份 單位受託人及Three ...