In recent months, Yingcosmos (03700.HK) has emerged as one of the most talked-about names in the Hong Kong stock market. With its share price more than doubling year-to-date and reaching multi-year highs, investors are asking: What’s behind this sudden momentum? The answer lies at the intersection of strategic foresight, technological innovation, and a rapidly evolving digital entertainment landscape.
This article explores how Yingcosmos transformed from a live-streaming pioneer into a forward-looking tech and entertainment hybrid — leveraging cryptocurrency investments, short-form video dominance, AI integration, and global expansion to redefine its growth trajectory.
Strategic Cryptocurrency Investment Fuels Investor Confidence
One of the most significant catalysts behind Yingcosmos’ stock surge was its bold $100 million commitment to purchase digital assets over five years, announced in March 2024. This move positioned the company not just as a passive beneficiary of crypto market trends but as an active participant with long-term conviction in blockchain technology and Web3.0.
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The planned allocation — approximately $60 million for Bitcoin (BTC), $20 million for Ethereum (ETH), and $10 million each for stablecoins USDT and USDC — reflects a balanced approach to risk diversification while capturing upside potential across multiple layers of the crypto ecosystem.
This decision aligns with growing institutional confidence in digital assets. Following geopolitical shifts such as the U.S. presidential election outcome, Bitcoin surged past $89,000, with major financial institutions like Standard Chartered and VanEck forecasting prices between $125,000 and $300,000 by 2025. Yingcosmos’ early positioning allows it to benefit directly from this macro tailwind.
Beyond financial returns, the investment signals a deeper strategic shift: Yingcosmos views blockchain as foundational to the future of digital ownership, content monetization, and decentralized user engagement — key pillars for next-generation social platforms.
Core Business Strength: Live Streaming Still Powers Growth
While crypto grabs headlines, Yingcosmos’ foundation remains its dominant live-streaming business. Since launching Inke Live in 2015, the company has maintained leadership in China’s interactive social platform space.
Despite a 14.4% year-on-year decline in monthly active users (MAU) to 24.05 million in H1 2024, the company demonstrated improved monetization efficiency. Average revenue per user (ARPU) rose 32.1% to RMB 24.5, driving total revenue up 13% to RMB 3.53 billion. Of this, value-added services contributed RMB 2.6 billion, up 12.4%.
This resilience highlights a crucial insight: even in mature markets, user engagement quality can outweigh sheer volume. By refining its ecosystem and enhancing content personalization through AI-driven tools, Yingcosmos continues to extract greater value from its existing audience.
Short-Form Video Takes Center Stage
Yingcosmos is no longer just a live-streaming platform — it's evolving into a diversified digital entertainment powerhouse, with short-form video now serving as a major growth engine.
As of August 2024, the company had produced over 600 micro-dramas, reaching more than 400 million users. It ranked fourth on DataEye’s 2024 mid-year short-form video platform leaderboard. More impressively, it generated over 70 blockbusters with individual revenues exceeding RMB 10 million.
In H1 2024 alone, short-form video revenue reached RMB 643 million — a 36% increase year-on-year — accounting for 18.2% of total income. According to iResearch, China’s micro-drama market is projected to hit RMB 48.5 billion in 2024 and exceed RMB 100 billion within five years. The overseas market could reach $36 billion long-term.
Yingcosmos is actively exploring synergies between short-form content and real-world experiences, including文旅 (cultural tourism) integrations, aiming to produce premium productions that blend storytelling with commercial viability.
Global Expansion Through Redshort and Reelbox
International growth is another critical pillar of Yingcosmos’ strategy. Through two dedicated short-video apps — Redshort and Reelbox — the company has successfully entered North America and Southeast Asia.
These platforms focus on localized content creation and community building, ensuring cultural relevance while maintaining operational efficiency. With global audiences increasingly consuming mobile-first video content, Yingcosmos is well-positioned to capture international demand.
Moreover, the upcoming launch of SkyReels, an AI-powered short-form video platform by Kunlun Tech (a key partner), set for December 10 in the U.S., could amplify cross-border synergies. This collaboration may accelerate AI-driven content production and open new monetization channels abroad.
Embracing AI and AIGC for Future Innovation
Yingcosmos isn’t merely adapting to technological change — it’s helping shape it. The company is investing heavily in AIGC (Artificial Intelligence Generated Content) to transform how entertainment is created and delivered.
By integrating GPT-3.5 Turbo and collaborating with Kunlun Tech, Yingcosmos is developing applications across:
- AI-generated scripts
- Interactive social experiences
- AI music composition
- Digital human live streaming
- Intelligent user operations
These innovations aim to reduce production costs, speed up content cycles, and enhance personalization — all essential for sustaining competitiveness in fast-moving digital markets.
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Valuation Still Attractive Amid Strong Fundamentals
Despite its stock doubling in value, Yingcosmos trades at a modest P/E ratio (TTM) of 7.59 and a price-to-book ratio of just 0.56 — suggesting potential undervaluation given its diversified revenue streams and growth outlook.
Major shareholder Kunlun Group Limited has reinforced confidence by steadily increasing its stake, including a purchase of 2.5 million shares at HK$1.021 per share on October 29. Post-acquisition, its holding stands at 194 million shares, or 10.02%, signaling strong insider belief in long-term value creation.
Frequently Asked Questions (FAQ)
Q: Why did Yingcosmos invest in cryptocurrency?
A: The $100 million investment reflects a strategic bet on Web3.0 and blockchain’s long-term potential. It also serves as a diversified asset allocation tool amid global economic uncertainty.
Q: Is Yingcosmos only focused on the Chinese market?
A: No. While China remains core, the company is expanding globally via apps like Redshort and Reelbox, targeting North America and Southeast Asia with localized short-form content.
Q: How significant is the short-form video business?
A: Very. Micro-drama revenue hit RMB 643 million in H1 2024, growing 36% YoY. With over 600 titles produced and 70+ blockbusters, it's now a key profit driver.
Q: What role does AI play in Yingcosmos’ strategy?
A: AI powers content creation (scripts, music), enhances user interaction, enables digital human streaming, and improves operational efficiency through automation.
Q: Is the stock still undervalued?
A: With a P/E below 8 and P/B under 0.6, many analysts believe Yingcosmos remains attractively priced relative to its innovation pipeline and growth trajectory.
Q: How does Yingcosmos plan to grow internationally?
A: Through localized apps, AI-generated content tailored to regional tastes, partnerships like SkyReels, and integration with文旅 themes for deeper audience engagement.
Looking Ahead: A Multi-Layered Growth Story
Yingcosmos’ rise is not a speculative bubble — it’s the result of deliberate strategy across multiple fronts:
- Crypto investment for future-proofing and capital appreciation
- Short-form video leadership driving near-term revenue growth
- AI integration enabling scalable innovation
- Global expansion unlocking new markets
Together, these elements form a compelling narrative of transformation — from a legacy live-streaming brand to a next-generation digital entertainment ecosystem built on technology, creativity, and global vision.
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As Web3.0 adoption accelerates and AI reshapes content creation, Yingcosmos appears poised to remain at the forefront — not just riding the trends, but helping define them.
Core Keywords: Yingcosmos stock, cryptocurrency investment, short-form video, micro-drama market, AI content generation, Web3.0 strategy, global expansion