[Today's focus]

Meitu (01357.HK) plans to buy the entire share capital of Ku.com for 39.6405 million US dollars

Meitu (01357.HK) announced that on February 2, 2024, the buyer Meitu Investment Ltd (a wholly-owned subsidiary of the company), the seller, the founder, the former founder and Zhanku.com Group entered into a sales agreement. According to this, the seller has agreed to sell and the buyer has agreed to buy the shares to be sold (equivalent to all of the issued share capital of Zanku.com). The total cost is US$39.6405 million, of which US$17.784 million will be paid for the allocation and issuance of 52,992,166 shares, and the balance is approximately $21.856 million will be paid in cash.

Furthermore, according to the ESOP cost arrangement, all website cool network options granted to ESOP holders under the ESOP program will be cancelled upon completion. The total ESOP costs that will be payable to ESOP holders are US$2.142,500 as the cost of cancelling Cool Network options on these websites.

Upon completion, consideration shares and ESOP compensation shares will be distributed and issued separately to the relevant consideration share holders and Meitu Trust (with the ESOP holder as the beneficiary) at an issue price of USD 0.3356 (equivalent to approximately HK$2.6237) per share under the general mandate within 1 business day after the completion date. Once issued, the price shares and ESOP price shares will together account for about 1.26% of the company's issued share capital after the allocation and issuance of consideration shares and ESOP compensation shares. However, it is assumed that there will be no change in the company's issued share capital other than the allotted and issued consideration shares and ESOP compensation shares.

After joining the group, Zhanku.com Group will have a huge synergy effect on the development of Meitu's imaging and design product business, especially the construction of the Miracle Vision large visual model ecosystem and moat:

a) Increase the exposure and use of Miracle Vision in domestic design and creative groups. As designers' usage of Miracle Vision increases, the company believes that more designers will share their experiences and discussions about Miracle Vision in the Zhanku.com Group's designer community and other social media, such as displaying generation effects, evaluating visual models, and sharing user tutorials. This high-quality content, produced by professional design and creative groups, will serve as a benchmark, help spread Miracle Vision to the company's core target user “evangelists” and lower the threshold for using Miracle Vision.

b) Improve the quality and iteration speed of Miracle Vision. As more designers use Miracle Vision as their creative tool, the company will get more professional feedback data. On the one hand, the company will carefully receive their demands and iterate Miracle Vision products, and on the other hand, it will also add this feedback data to the company's training to improve the speed and quality of Miracle Vision's iteration.

c) Expand high-quality training materials and resources. After the acquisition, Meitu will fully support the development of Cool Heluo, a platform owned by the Zhanku.com Group, through its huge user base and image and design product brand advantages, and help the website Cool Heluo further enhance the size of its copyright gallery and video library. This is a win-win partnership: in addition to the company's own development, users of the company's video products will also be able to upload high-quality images and videos created by them to Cool Heluo for monetization, and the company's Miracle Vision will also have more high-quality creative materials for training.

d) Accelerate the development of the Miracle Vision model store and build a moat. As more designers train their past creative styles into exclusive style models at Miracle Vision, users can use these different style models for a fee to further assist in generating ideas. This will not only provide users with more choices, but will also further expand the differences with other visual models.

[Financial results]

China Starch (03838.HK) Profit Alert: Annual profit before tax is expected to drop sharply by about 70%

Junsi Group (01412.HK): Expected annual profit of about HK$77 million to HK$85 million

IGG (00799.HK) Profit: Expected annual net profit of around HK$70 million

Xinxing Printing (01975.HK) Profit Alert: Mid-term profit is expected to decrease by no less than 90%

Jianbao International (00675.HK) Profit Alert: The estimated consolidated net loss for 2023 is not more than HK$27 million

Feishang Anthracite (01738.HK) Profit Alert: It is expected that in 2023 it will record a comprehensive loss due to the owner of the parent company from continuing operations

Lam Shun (Hong Kong) (00411.HK) Yingxi: Expected net profit of HK$120 million to HK$140 million for the medium term

Feishang Anthracite (01738.HK): The year is expected to record a comprehensive loss due to the owner of the parent company from continuing operations

[Operational data]

Zhengrong Real Estate (06158.HK)'s cumulative contract sales amount in January was about 619 million yuan

[Pharmaceutical Innovation]

Kangzhe Pharmaceutical (00867.HK) signs replacement agreement with VFMCRP and Weijian Investment (Hong Kong) for sucrose iron hydroxide chewable tablets Viverui

Cansino Biologics (06185.HK) lost control of the drug Cansino

[Acquisition and sale]

Jinhui Group (00137.HK) subsidiary spent US$30.95 million to acquire ships

NATIONAL ELEC H (00213.HK) plans to sell Canadian property for $1.8 million

AJB Leasing (01496.HK) spent approximately HK$8.98 million to purchase small crawler cranes

Hong Kong Chaoshang Group (02322.HK): Further sale of a total of 15.465,900 shares of Rende Resources Holdings

[Equity Incentives]

Jingneng Clean Energy (00579.HK) granted a total of 103 million share appreciation rights to 113 incentive recipients

[Issuance of additional shares]

Tianji Holdings (01520.HK) plans to distribute a total of 800 million shares at a discount of about 23.66%

[Repurchase Cancellation]

AIA (01299.HK) spent HK$181 million to repurchase 3 million shares on February 2

HSBC Holdings (00005.HK) spent HK$128 million to repurchase 2.1 million shares on February 1

Xiaomi Group-W (01810.HK) spent HK$49.42 million to buy back 4 million shares on February 2

Kuaishou-W (01024.HK) spent HK$39.9976 million to buy back 99,600 shares on February 2

Hisense Home Appliances (00921.HK) spent 26.21,900 yuan to buy back 1.045 million A-shares on February 2

Haitong Securities (06837.HK) spent 25.185,800 yuan to buy back 3 million A shares on February 2

COSCO Marine Holdings (01919.HK) spent HK$15.595 million to repurchase 1.908,000 shares on February 2

Jinshan Software (03888.HK) spent HK$10 million to buy back 521,000 shares on February 2

Swire Group A (00019.HK) spent HK$6.94 million to buy back 112,500 shares on February 2

Shanghai Petrochemical Co., Ltd. (00338.HK) spent HK$5.940,900 to buy back 5.636 million shares on February 2

Fosun International (00656.HK) spent HK$5.86 million to buy back 1.44,000 shares on February 2

Haohai Biotechnology (06826.HK) spent 4.94 million yuan to buy back 54,800 A shares on February 2

China Wangwang (00151.HK) spent HK$3,3293 million to buy back 769,000 shares on February 2

Jinke Services (09666.HK) cancelled 15.657 million shares on February 2