Zhong Guo Ji Jin Bao·2025-05-21 06:20Core Viewpoint - Meitu Inc. has signed a $250 million convertible bond agreement with Alibaba, with a three-year term and an annual interest rate of 1%, aiming to enhance capital structure and operational flexibility [2][4]. Group 1: Convertible Bond Agreement - The convertible bond issuance will allow Meitu to optimize its capital structure and increase cash reserves for general operational purposes [4]. - If Alibaba converts the bonds, it could acquire up to 336 million shares of Meitu, representing 6.85% of the expanded total issued shares [4][5]. Group 2: Strategic Cooperation - Meitu and Alibaba will collaborate in several areas, including e-commerce, AI technology, and cloud computing [2][8]. - Alibaba will prioritize promoting Meitu's AI e-commerce tools on its global platforms, assisting in the development of data-driven e-commerce tools [4][6]. - The companies will jointly develop various foundational models and vertical large language models, including video and image generation models [6]. - Meitu commits to purchasing a total of 560 million RMB in cloud services from Alibaba over the next 36 months [7]. - Both companies will explore innovative initiatives to create differentiated experiences and opportunities for their platform participants [8]. Group 3: Market Impact - The announcement led to a significant increase in Meitu's stock price, which rose nearly 18% initially and closed up 12.20% at HKD 6.62 per share, with a market capitalization of HKD 30.2 billion [2]. - The low financing cost of the convertible bond is expected to alleviate Meitu's financial pressure and enhance market confidence [8].