MEITU (01357) rose nearly 13% again. As of the time of writing, the stock was up 12.61%, trading at HK$8.93, with a turnover of HK$896 million.

On the news front, on December 31, MEITU announced it had issued US$250 million in convertible bonds to Alibaba.

Morgan Stanley released a research report stating that if all convertible bonds are fully converted, Alibaba will hold a 6.82% stake in MEITU, becoming its third-largest shareholder.

The firm views this development as positive news, anticipating that the cooperation between MEITU and Alibaba will deepen further, potentially generating strong synergistic effects, particularly in the e-commerce design sector.

Kaiyuan Securities published a research report noting that MEITU plans to establish an internal venture capital plan worth tens of millions to incentivize employee entrepreneurship, signaling a return to a "horse racing" mechanism in the AI era and a comprehensive transformation into an AI Agent.

MEITU's total number of paying subscribers reached 15.4 million in the first half of 2025, a year-on-year increase of 42.6%, yet the paying ratio was only 5.5%, indicating significant room for improvement.

The company's adjusted net profit for the first half of 2025 was RMB 470 million, representing a robust year-on-year growth of 71.3%.