MEITU (01357) saw its shares rise more than 6% during the afternoon session. As of the time of writing, the stock was up 5.53%, trading at HKD 7.83, with a turnover of HKD 379 million. On December 31st, MEITU announced it had issued USD 250 million in convertible bonds to Alibaba. Morgan Stanley released a research report stating that if all the convertible bonds are fully converted, Alibaba would hold a 6.82% stake in MEITU, becoming its third-largest shareholder. The institution views this development as positive news, anticipating a further deepening of cooperation between MEITU and Alibaba, particularly expecting strong synergistic effects in the field of e-commerce design. Notably, MEITU's CEO Wu Xinhong previously revealed that the company is returning to a startup team model, establishing AI innovation studios for internal "horse racing" competitions, conducting product innovation on a six-month cycle, and providing RMB 10 million in "venture capital" funding. Wu Xinhong believes the fiercest future competition may come from emerging startup teams, necessitating that the company benchmark its efficiency against that of a startup.