May 20 – Meitu Company (Stock Code: 1357.HK) announced that it has entered into a USD 250 million convertible bond agreement with Alibaba. The two companies will also establish a strategic collaboration spanning e-commerce platforms, AI technology, and cloud computing.

According to the announcement, Alibaba will invest in Meitu through convertible bonds with a total principal amount of USD 250 million (net proceeds of approximately USD 249.6 million). The bonds will have a term of three years and carry an annual interest rate of 1%. Alibaba may exercise its conversion rights from the issuance date until five business days before maturity, converting the bonds into Meitu shares at a price of HKD 6.00 per share.

The announcement further states that Meitu and Alibaba will engage in in-depth cooperation within the e-commerce and model development sectors. Alibaba will prioritize the promotion of Meitu's AI e-commerce tools on its e-commerce platforms. Concurrently, it will assist Meitu in developing new data-driven tools and features for generating images and videos, aimed at enhancing the marketing and operational efficiency of merchants on Alibaba's e-commerce platforms.

Alibaba will provide technical support for Meitu's core businesses, meeting the computing power needs for inference, training, and other requirements of Meitu's AI products. Meitu has committed to purchasing no less than 560 million RMB worth of cloud services from its strategic investor, Alibaba, over the next three years.

Furthermore, the two parties will explore more differentiated and innovative projects to create unique experiences for their respective platform users.

Both parties have signed the investment agreement. Final closing is subject to relevant government approvals and other customary conditions, including, but not limited to, the Hong Kong Stock Exchange's approval for the listing of the converted shares and approval from the National Development and Reform Commission for the bond issuance.