Core Viewpoint - Meitu has signed a $250 million convertible bond agreement with Alibaba, aiming to enhance its capital structure and cash reserves for operational flexibility and acquisitions in AI-driven imaging and design products [1][2] Group 1: Convertible Bond Agreement - The convertible bond agreement has a three-year term with an annual interest rate of 1% [1] - Alibaba can convert the bonds into Meitu shares at a price of HKD 6.00 per share, potentially acquiring up to 336 million shares, representing 6.85% of Meitu's expanded total issued shares [1] Group 2: Strategic Cooperation - The collaboration focuses on restructuring the e-commerce content production chain, with Alibaba prioritizing the promotion of Meitu's AI e-commerce tools on its platforms [1] - Alibaba will assist Meitu in developing data-driven e-commerce tools and features, as well as collaborating on various foundational models and vertical large language models in the AI technology sector [1][2] Group 3: Financial Performance and Growth - Meitu has committed to purchasing a total of RMB 560 million in cloud services from Alibaba over the next 36 months [2] - In 2023, Meitu achieved a record net profit of RMB 5.86 billion, with revenue of RMB 3.34 billion, reflecting a year-on-year growth of 23.9% [2] - The integration of AI technology into Meitu's products has significantly boosted high-margin subscription revenue, with paid subscription users reaching approximately 12.61 million, a year-on-year increase of 38.4% [2]