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Another Chance to Go Long Lufax – A Close Look at Q2 2021 ResultThe overall favorable financials and rather a low valuation of the Chinese fintech present a new investment opportunity. Lufax achieved positive year-over-year growth in key financials during the second quarter of 2021. Larger clients are cutting more shares in credit loan and asset management sectors. The stock repurchase plan is expected to boost Lufax's stock price – which has been decreasing for months to a level way below IPO price. Several problems, such as the shrinking business scale and decreasing income from the technology-based business, have become concerns for Lufax's long-term development. Lufax (LU:NYSE), founded in Shanghai in 2011, is a fintech affiliate of Ping An Group that provides personal financial services as an agency and dealmaker to help financial institutions connect to retail clients. Lufax launched its New York Stock Exchange public offering on October 30, 2020, raising USD 2.36 billion. On August 10, Lufax posted its financial results for the second quarter of 2021. Here, we dissect the released data, while constructing an investment message. Improving financials, with a better business structure During the three months through June, Lufax achieved revenue growth of 17.3% and its net income increased by 53.2% year-over-year. The total revenue and net income grew from CNY 12.64 billion and CNY 3.09 billion in the same period last year, to CNY 14.83 billion and CNY 4.73 billion in the second quarter of 2021, respectively. Since the third quarter of 2019, Lufax has been achieving positive year-on-year quarterly revenue growth, despite the COVID-19 outbreak. The net profit only showed a decrease from July to September in 2020, mainly affected by the pandemic, as the firm claims. Nevertheless, the overall business operation and profitability have been improving. What is more, consistent with its strategy in the retail credit field, the company has increased loans to small-to-medium businesses in recent years. During the second quarter of 2021, 77.6% of the new loans were issued to the small business owners who normally have somewhat large tickets, therefore reducing Lufax's costs associated with the borrowers. In the wealth management sector, contribution to total client assets from customers with investments of more than CNY 300,000 on the company's platform increased to 80.2% as of June 30, 2021, from 75.4% in the same period in 2020. Upward price momentum In May 2021, Lufax announced that the ADS worth USD 300 million would be repurchased over the following six months. Some of the company's top executives will also spend USD 5 million at most with personal funds on the ADS purchase. By the end of June 30, transactions accounting for USD 286 million had been closed, with USD 281 million from the company and 5 million from the management team. It is clear that the management is confident in Lufax's future, and trying to give the market positive signs, especially under the current low-valuation situation in the stock market. Lufax was certainly very high-profile in launching on the New York Stock Exchange on October 30, 2020 as the fourth largest unicorn globally, reaching its historical high record of USD 19.72 per share in the next month. However, since May 2021, partially because of the crackdown in valuation among all Chinese concept stocks, the stock price of Lufax has sunk – to USD 8.60 on August 17 of 2021, far below its IPO price. What is more, 13 over 16, which is 81.25% of the Wall St. analysts give bullish or very bullish ratings to Lufax. Along with the stock repurchase plan, we believe the stock price will be boosted, based on overall solid financial performances and below-expectation capital market recognition; thus, Lufax is considered a good investment now. What to be aware of The new loans facilitated during the second quarter of 2021 decreased by 11.4% from the previous quarter and the asset amount from wealth management clients only went up by 1% from the first quarter of 2021. Per the management, that was because of the change in company strategies, as Lufax has been focusing more on service quality instead of business expansion, which is backed by three principles: compliance operation, targeting SMB and affluent clients and technology improvement. However, the last principle, which lies upon the technological transformation, which Lufax has been emphasizing for years, has no embodiment. The largest revenue component – technology-based income – has been contributing less and less since the third quarter of 2019, the earliest financial records available. Compared with the other two Chinese fintech leaders, Ant Group and JD Digits, Lufax's R&D expenditure-over-revenue ratio ranked last since 2017. What is worse, the expense has been taking up a decreasing percentage of the total revenue since 2019. Furthermore, in the press release of the second quarter's financial results this year, Lufax announced that a new series of stock repurchases would be launched, with ADS worth around USD 700 million to be bought back within one year. The company will intake USD 10 million of ADS shares transferred from the market. This plan is strongly considered a positive sign on the underlying stock price. The company's maturity process can partly explain the recently decreasing month-over-month profitability and shrinking business scale. This, however, can affect the operation results. Although the 'LU' stock may provide a short-term investment opportunity, its long-term development is still unclear.
NYSE:LULong
by EqualOcean
Li Auto Delivered Record 9,433 Vehicles in Aug, Up 248% YoYDeliveries of the new Li ONE began on June 1. Li Auto delivered a record 9,433 units of the Li ONE, the company's only model, in August, up 248 percent year-over-year and 9.8 percent from July. That number exceeded many expectations, considering the company gave conservative guidance for the third quarter in its earnings report released earlier this week. For the first eight months of 2021, Li Auto deliveries have totaled 48,176 units. The Li ONE's cumulative deliveries now stand at 81,773 units, the company announced Wednesday. As of August 31, 2021, Li Auto has 114 retail centers covering 69 cities, as well as 194 aftermarket repair centers and authorized sheet metal spray centers covering 143 cities. Notably, when Li Auto announced its second-quarter earnings on August 30, it said it expected deliveries of 25,000-26,000 units in the third quarter. Considering that the company previously said that September deliveries were expected to exceed 10,000 units and July deliveries were 8,589 units, many believe this implies that Li Auto's deliveries in August will be at most 7,400 units. The Li ONE is an electric vehicle with extended-range technology, having a three-cylinder engine as the range extender. The Li ONE became available in October 2019. On May 25 of this year, Li Auto announced the 2021 Li ONE with a starting price of CNY 10,000 (USD 1,560) higher than the previous version at CNY 338,000. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NASDAQ:LI
by EqualOcean
XPeng Delivered 7,214 Vehicles in Aug, Up 172% from a Year AgoXpeng P5 will officially go on sale on September 15, and deliveries will start at the end of October. XPeng Motors delivered 7,214 vehicles in August, up 172 percent year-over-year and down 10 percent from July. The company delivered 6,165 P7s and 1,049 G3s in July. 2021 year-to-date deliveries reached 45,992 vehicles, representing a 334 percent increase year-over-year. P7 deliveries continued to strengthen, achieving a record month in August and a 209 percent increase year-over-year. The production preparation and switching of G3i is expected to have an impact on G3 and G3i’s production and delivery for a few weeks, XPeng CEO He Xiaopeng said during the company's second-quarter earnings call. "We plan to start deliveries at the end of August and will increase delivery scale in the next quarter," He said. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NYSE:XPEV
by EqualOcean
NIO Delivered 5,880 Vehicles in Aug, Up 48% from a Year AgoThe company has begun allowing customers to test drive ES8 in Norway. NIO delivered 5,880 vehicles in August, up 48 percent year-over-year and down about 26 percent from July. The deliveries consisted of 1,738 ES8s, 2,342 ES6s, and 1,800 EC6s. Supply chain disruptions in Malaysia and Nanjing, China, caused by local pandemic outbreaks, significantly hampered production, NIO said. The supplier of the A/B pillar interior trims in Nanjing, China was affected in August, the company said, adding that the supplier has now resumed production. Orders in August grew to a new historic record, the company said. NIO cuts its deliveries guidance for the third quarter by 500-1,500 units. The new deliveries guidance for the third quarter is between 22,500 and 23,500 vehicles. NIO is confident about the delivery result for September, it said. NIO said internal calculations showed the Covid-19 in August affected the company's production of about 2,000 to 3,000 units for the month. The company hopes to try to make up for the August production lost in September by collaborating with supply chain partners and adjusting the production pace of its plants. But even so, there will still be an impact of about 1,000-2,000 units for the entire quarter. NIO said order performance remains strong, with new orders reaching a record high in August. If supply chain problems do not deteriorate further, September deliveries can set another monthly delivery record, it said. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NYSE:NIO
by EqualOcean
China is in trouble!When China decreased its RRR rate in mid-july, it signaled to the broader market that something was wrong in its domestic market. Once we looked at why the PBOC was selling UST short term bills, and combined it with the previous factor- one thing stood out- China is desperate for USD's. When the PBOC cuts its RRR back in 2015, it is was due to: EURODOLLARS vanishing from its domestic banking system, CNY devaluing, PBOC balance sheet contracting, and RMB constraint. So what caused this in 2015? The answer is: The outflow of USD at depositories by large commercial players (Banks, Funds, ETC.). Now if you remembered from one of my previous posts couple months back, China is trying to fight a monetary trilemma, which to this date is loosing. The trilemma is if you recall, to have control of its capital account, to have a fixed exchange rate, and more importantly have monetary autonomy. Now the problem here is, China for the past couple of decades has used tremendous amounts of credit and leverage to accelerate its economic progress. Now if you acknowledge that China relies heavily on exporting goods, it can not afford to have outflows! If China has problems getting USD's it faces a domestic credit crunch - domestic credit markets, especially in the real estate sector, will implode. If Foreign markets face deflationary conditions, China will face having to devalue its currency to offset tightening credit conditions. If China is forced to devalue its currency to quickly - then USD outflows by depository institutions will likely occur causing a domestic credit crunch. That's the problem here: China is fighting its reliance on the mighty dollar, but it can only fight is slowly because it risks destroying its credit markets. The other problem is that the FED is engaged in QE (WHICH IS DEFLATIONARY) and is engaged in yield control by tightening yield markets to bring down yields to spur lending growth. YES! QE is designed to lower yields by tightening financial conditions. (The FED does not PRINT dollars!) The solution: The PBOC is fighting tightening conditions by cutting its RRR rate and selling UST to devalue its currency. SHORT ASEAN currenciess!!
Short
by LuisLizama
Futu Releases Q2 2021 Financial ReportAs a global technology-based securities firm, Futu Holdings Limited (Futu:NASDAQ) is committed to driving innovation with science and technology to provide more convenient and ultimate financial science and technology services for major markets around the world. According to Futu's released performance report for the second quarter of 2021: - The total revenue reached USD 200 million (about CNY 1.29 billion), with a year-on-year increase of 129%. It presents a triple-digit growth for six consecutive quarters. - The net profit under non-GAAP was USD 70.9 million (about CNY 458 million), showing a year-on-year increase of 127%. - The trading commission and fees increased by 95% to USD 100 million, where interest income increased by 194% to USD 78.6 million (about CNY 508 million), and other income (including wealth management and enterprise service business) increased by 141% to USD 21.7 million (about CNY 140 million). - As of June 30, 2021, the number of registered users has officially exceeded 15.5 million, with a year-on-year increase of 67%. The number of customers opening accounts reached 2.32 million (up 143%) and the number of customers with assets achieved a 2.3 times increase to over 1 million. - The customer retention rate reached 98% in the first half of 2021. - It achieved a net increase of 211,000 customers with assets in Q2 2021, more than three times that of the same period of 2020. By the end of the reporting period, the assets had exceeded USD 64.8 billion (about CNY 418.74 billion), showing a year-on-year increase of 254%, and the average assets of customers with assets had reached USD 65.000 (about CNY 420,000). - The total transaction volume totaled USD 169.4 billion (about CNY 109 million) in Q2 2021, representing a year-on-year increase of 104%. - Customers' average daily revenue transactions (DARTs) increased 105%, reaching 541,000. -As of June 30, 2021, the AUM of Futu Money Plus reached USD 1.77 billion (about CNY 11.44 billion), achieving a year-on-year increase of 59%. Futu Money Plus has connected with about 50 global well-known fund company partners (7 new partners in Q2 2021), including Goldman Sachs Asset Management, Hanya Investment, UBS asset management, etc. - As of June 30, 2021, Futu had provided IPO distribution and IR services to 186 enterprises. - There are 26 enterprises in Futu's '10 Billion Club' (subscribed over HKD 10 billion), of which JD Logistics (002618:HK), Angelalign (006699:HK), Nayuki (002150:HK), Carsgen (002171:HK) and other enterprises were added in the second quarter of 2021. - By the end of the reporting period, more than 600 new economic enterprises had settled in Futu Niuniu community. - In addition, Futuie has signed with 263 ESOP option management customers, with a year-on-year increase of 189% in Q2 2021. Customers include leading enterprises in medical and health, consumer retail, cutting-edge technology and other industries, such as Yidu Tech Group (002159:HK), Simcere (002096:HK), Popmart (009992:HK), Nayuki (002150:HK), etc. - Futu was officially included in the MSCI Hong Kong Index in Q2 2021. At the same time, it was awarded BBB - by S&P Global Ratings.
NASDAQ:FUTU
by EqualOcean
Meituan Achieves a 77% YoY Revenue Growth in Q2 2021The platform earned CNY 43.80 billion in Q2 2021 while reducing its monthly operating loss to CNY 3.25 billion. According to survey data, 60% of full-time riders have a monthly income of more than CNY 5,000. - On August 30, 2021, Meituan, the Chinese life service e-commerce platform, released its Q2 financial report. The report shows that the company earned a quarterly revenue of CNY 43.80 billion, with a year-on-year increase of 77%, and the monthly operating loss was reduced to CNY 3.25 billion. - In terms of businesses, the platform's revenue of takeout food was CNY 23.10 billion, accounting for 52.74% of the total; earnings from hoteling were CNY 8.60 billion, covering 19.63% of the total. As indicated by the firm, its retail business continued to build its core infrastructures and has begun to establish nationwide cold-chain logistics, while promoting the growth of high-quality agricultural products across the country. - Wang Xing, CEO of Meituan, said that their businesses continued to maintain steady growth in Q2 2021, thanks to the continuous and stable recovery of China's economy and the company's deep integration of digitization with the real economy and service economy. He also mentioned the company's firm determination to implement relevant national policies, play a proactive role in social responsibilities, and utilize the power of technology to propel China's economic development. - As for expenditure, Meituan's R&D investment in Q2 2021 reached CNY 3.90 billion, with a year-on-year increase of over 60%. At the same time, the cost of the riders reached CNY 15.50 billion, a year-on-year increase of 53%. - In terms of data, the number of users trading on the platform annually was 630 million and its active businesses up to 7.7 million until Q2 2021, both reaching a record high; the average per capita number of transactions was 32.8 annually, a year-on-year increase of 27.8%. - In June 2021, the firm launched the 'takeout housekeeper service' to help digitalize the operation of high-quality but small- and medium-sized businesses. As the first phase of special subsidies, CNY 150 million was invested by the platform to provide 30,000 small and medium-sized businesses with three-month online operation services free of charge. Until now, 6000 businesses from 25 pilot cities have participated, driving up the average transaction volume of takeout restaurants by over 50%. - In terms of riders, the report shows that, before H1 2021, the number of daily active riders of Meituan has exceeded one million. According to survey data, 60% of full-time riders have a monthly income of more than CNY 5,000. - In July 2021, the company founded a service department to ensure riders' safety and improve their work experience. Besides, the firm has been responding to the national call and actively participated in the pilot programs to prevent and resolve the risk of occupational injury. In addition, Meituan also launched the 'Webmaster Training Program' and has been cooperating with vocational and community schools. - The platform stated that in the future, it will provide a more comprehensive protection system for riders' rights and interests according to relevant policies and promote the high-quality and healthy development of the industry. - Founded in Beijing in 2011, Meituan is China's leading e-commerce platform for life services. Its products include public reviews net, Meituan takeout and others. Its services cover more than 200 categories, such as catering, takeout, fresh retail, ride-hailing, bike-sharing, hotel tourism, film, and leisure & entertainment, and its operation covers 2800 counties, regions, and cities across China. - On June 22, 2018, the platform was listed on the Hong Kong Stock Exchange. As of the close on August 30, 2021, its share price was HKD 228.40 (CNY 189.73), with a market value of about HKD 1.40 trillion (CNY 1.16 trillion).
OTC:MPNGF
by EqualOcean
NIO Begins Allowing Customers to Test Drive ES8 in NorwayNio will enter the German market in 2021 at the earliest. NIO has started allowing Norwegian users to test-drive its ES8 SUV, marking its latest step in entering the international market. NIO Norway User Head An Ho shared the news on the NIO App, saying that the test drives opened on August 30 and nearly 300 spots were filled within three days of application. On the first day of the test drive, about 60 Norwegian users got to experience the ES8 first-hand, Ho said. At the performance experience area on the runway at Eggemoen Airport near Oslo, test drivers experienced the ES8's acceleration, as well as its handling performance. At the local Heen Grustak off-road track, test drivers experienced the vehicle's performance in off-road scenarios. NIO built a Mini version of the NIO House in Eggemoen Airport, where users can enjoy drinks from the NIO Café, according to Ho. In addition, NIO transported an NIO EP9 supercar from the UK to the test drive venue, allowing users in Norway to get up close with the car. This is NIO's latest move in the Norwegian market. The company's app for Norwegian users was made available on the local App Store and Google Play Store on August 16. The launch of the app means that local users are starting to have an exclusive online community, which NIO says "Shape a Joyful Lifestyle, is a vision we are pursuing together." The app currently offers Discover, This Moment, a personal account management page, and NIO Life, meaning the company is bringing its lifestyle brand to Norway as well. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NYSE:NIOLong
by EqualOcean
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Midea Group Releases H1 2021 Financial ReportThe income from home appliances and electrical appliances accounts for more than 80%; the proportion of new businesses such as robots has increased. According to the interim performance report for 2021: - The operating revenue increased by 24.98%, reaching CNY 173.8 billion. - The net profit attributable to the parent company increased 7.76%, reaching CNY 15 billion. - The revenue of HVAC was CNY 76.4 billion (up 19.33%), accounting for 43.96% of the revenue. - The revenue of consumer electrical appliances was CNY 64.96 billion (up 22.4%), accounting for 37.38% of the revenue. - The revenue of robots, automation systems, and other manufacturing industries was CNY 12.69 billion (up 33.28%), accounting for the rest 7.3% of the revenue. - The gross profit margins of HVAC and consumer appliances were 20.85% (down 3.35%) and 29.6% (down 2%) respectively; while the that of robots, automation systems, and other manufacturing industries was 22.94%, achieving an increase of 3.94%. - The domestic revenue, which takes 57.45% of the total revenue, was CNY 99.85 billion, showing a year-on-year increase of 29.28%. - The revenue for the foreign market was CNY 73.96 billion, representing an increase of 19.6%, accounting for 42.55% of revenue.
SZSE:000333
by EqualOcean
Bilibili: Q2 2021 Results Surpass ExpectationsThe popular video platform has released its quarterly financial and operating results – which show a stellar performance. Bilibili maintained a high growth rate in Q2 and gained over USD 1 billion in the first half of 2021, which exceeded its expectations. The company has attracted a large number of active creators and increased its user numbers through diversified content and business model optimization. The company might set its orientation in innovative advertising and self-developed games for the next quarter, while the uncertainty of its new business and the problem of banned events will pose the main risks. On August 19, 2021, Bilibili held the Q2 2021 earnings call that revealed positive financial results beyond its best predictions. However, with negative impacts from the recent changes in the United States and China's listing-related policies, such outstanding financials have not boosted the stock price. Beating expectations Bilibili's second-quarter results topped the expectations of the market. During that period, the company achieved a revenue of CNY 4.50 billion, up 72% year over year. It is the first time the company has achieved over USD 1 billion in revenue (about CNY 6.5 billion) in half a year. However, its quarterly loss from the operation has expanded to CNY 1.52 billion, up 47.5% quarter over quarter and 149.3% year over year mainly due to the increasing sales and marketing expenses (from CNY 1 billion to CNY 1.40 billion). Though Bilibili received a higher investment income this quarter, its net loss increased to CNY 1.12 billion, up 23.9% quarter on quarter. Following 2020, the company's mobile game revenue has tended to be stable, with weak growth. However, its e-commerce, advertising and 'value-added services' (VAS) businesses have started to pick up and helped the company maintain momentum. This is good news for Bilibili as it has stabilized its profit model and improved its anti-risk abilities in light of fierce competition. Nevertheless, we think the company is still in a critical period of increasing accessible users. We believe that the company will maintain a relatively aggressive marketing strategy to improve brand awareness based on the increasing marketing expenses. At the same time, Bilibili has been further enriching content categories and broadening differential-age groups to achieve its user growth goals. The company has a sticky and loyal user base that allows it to maintain a high growth rate during this quarter. By the end of June 30, 2021, the average monthly active users (MAUs) of Bilibili reached 237.1 million, up 38% year on year, while its average daily active users (DAUs) reached 62.7 million, up 24% year on year. The average user time spent on its website and app rose to 81 minutes per user per day, setting a historical record. For the paid subscribers, this group grew to 20.9 million users, surging 62% compared with the level of June 30, 2020, which indicates users' increasing engagement. Diversifying businesses Over the past decade, Bilibili has continuously expanded its content coverage and improved its user experience. This platform has become one of the most popular online communities in China and attracted a large number of stable and active UGC creators and users with high stickiness. These features equip the company with high competitiveness in the video entertainment domain. By the end of the second quarter, the company had attracted 121 million official members, up 35% year over year, and its 12-month retention rates remained around 80%. In the second quarter, Bilibili incubated 2.4 million content creators, up 25% year over year. Video submission grew to 8.4 million in the period, up 41% year over year. Also, the number of content creators with more than 10,000 followers increased by 47% year-over-year. Starting in 2020, the company's mobile game revenue began to turn stable, but this segment's growth has been weak in the past years. However, its e-commerce, advertising and value-added services (VAS) business growth has started to pick up and help the company maintain steady growth. This may be a good thing for Bilibili, that is, it has changed from a single profit model to a more balanced one, improving its business agility and thus hedging against risks. Nevertheless, we think it is still in a critical period of expanding the range of accessible users. We believe that the company will maintain relatively aggressive marketing methods to improve brand awareness, the increasing marketing expenses can testify to this point. At the same time, further enriching content categories and broadening differential-age groups may help Bilibili achieve its user growth goals. For the business segments, we think Bilibili has two obvious developing directions: innovative advertising and self-developed games. On the one hand, according to the call, Bilibili said it will continue to explore new advertisement formats in areas like video advertising and embedded advertising. These new streams will contribute to the boom of its advertising revenue. As for the mobile game segment, the company announced in the earnings call's Q&A session that Bilibili will focus more on self-developed games in the second half of 2021. It has over 1,000 team members and multiple self-developed projects have been progressing. Considering the unbalanced nature of the demand and supply chains, we think Bilibili's mobile game business is approaching a turning point. However, it is hard to develop games that resonate with the company's unique community culture and user characteristics – other than ACG-related ones. Hence, we have some reservations about its effect on the near-future performance of the company. Valuation and bottom line Since Bilibili is yet to make a profit, we used the EV/revenue ratio and chose IQ, HUYA and DOYU as its competitors. From the chart, it is obvious that the ratio jumped compared with its competitors since Q4 2019, owing to its continuous high growth. Based on its current financial performance, momentum and competitive landscape, we think 17x is an appropriate valuation for Bilibili in 12 months, which corresponds to a target price of USD 98.90 apiece. Risks 1. The largest risk in the next quarter comes from the company's gaming business. Factors such as the slow development and the wayward demand for new games may lead to the slow growth of the mobile game segment in the next quarter. 2. Another risk comes from the ban of uploaders publishing inappropriate content. In 2021, two of the most popular uploaders in Bilibili, LexBurner and Dangmei (link in Chinese), were banned for such a reason, having repercussions for the whole community. Events of this kind normally hurt the platform's reputation in China, with users migrating to its alternatives. For the full article with the charts, please visit the original link.
NASDAQ:BILILong
by EqualOcean
Nayuki Announces H1 2021 Financial ResultsNayuki turned losses into profits in the first half of 2021 and its stock price rose 10% following the opening on August 26. As of the noon break, the tea maker was priced at HKD 11.1 per share. According to the firm's mid-term performance report for 2021: - The revenue reached CNY 2.13 billion, achieving a year-on-year increase of 80.2%. - The adjusted net profit reached CNY 48.20 million, compared with a loss of CNY 63.50 million in the same period last year. - In terms of business, the revenue of Nayuki was CNY 2 billion (up 0.4%), accounting for 94.4% of the total revenue; the revenue of Tai Gai, another business under the company, was CNY 77.53 million (down 1.7%), accounting for 3.6% of the total revenue; and revenue of other businesses was CNY 41.89 million (up 1.3%), accounting for the remaining 2.0%. - As of June 30, 2021, Nayuki has up to 578 stores. During the first half-year, 93 new stores were opened, with 65.6% of them situated in Tier 1 and new Tier 1 cities. - In terms of the type of stores, within the first half-year, 49 new PRO stores based in shopping malls were opened, adding up to 20 in total; 29 office-building PRO stores have appeared up to a total of 12; standard stores have reached a total of 492 in number with an increase of 9. - As of June 30, 2021, the number of members had reached 36.5 million, representing a year-on-year increase of more than 30%. The repurchase rate reached 30.3% in Q2 2021, compared with 25.6% in 2019 and 29.8% in Q4 2020 respectively, all above the industry average.
HKEX:2150
by EqualOcean
360 DigiTech Announces Q2 2021 Financial ResultsDuring the six months through June, 360 DigiTech's (QFIN:NASDAQ) net profit was CNY 1.548 billion, representing an increase of 76.6% year-on-year. According to the performance report for Q2 2021: - The revenue was CNY 4.002 billion (up 19.8%). - The net profit was CNY 1.548 billion (up 76.6%) and the net profit margin was 38.7%. - The net income of credit driven services was CNY 2.441 billion, representing a year-on-year decrease of 20.8%. - The net income from platform services reached CNY 1.597 billion, achieving a year-on-year increase of 516.6%. - The financing income was CNY 488 million, showing a decrease of 22.3%. - The guaranteed debt release rose by 25.5%, with revenue reaching CNY 1.352 billion. - As of June 30, 2021, the 360 DigiTech's platform has connected with 108 financial institutions and 176 million consumers with potential credit demand, with a year-on-year increase of 18.1%. - The cumulative users of approved credit lines were 34.7 million (up 25.3%). The cumulative number of borrowers including repeat borrowers was 22.3 million (up 25.3%). In Q2, among the loans issued by the company's financial institutions, the contribution of duplicate borrowers was 88.7%. - The financial institution partners issued more than 27.71 million loans through the platform, with a total loan of CNY 88.452 billion, representing a year-on-year increase of 50.2%. Among them, the balance of loans for light capital and other technical solutions was CNY 58.187 billion (up 186.4%); the credit lines to small and micro enterprises was CNY 7.1 billion (up 22.4%). - The weighted average term of loans granted by financial institutions on 360 DigiTech's platform was about 10.66 months, compared with 9.57 months in the same period last year. - As of June 30, 2021, the 90 days+ default rate was 1.19%. - The total operating costs and expenses were CNY 2.148 billion, which shows a year-on-year decrease of 8.4% and a month on month increase of 5.2%. According to QFIN, the growth trend in the first half of the year will continue in the following part of the year. Therefore, the total amount of loan facilitation and issuance of the company in 2021 is expected to reach CNY 340 billion to CNY 350 billion, achieving a year-on-year increase of 38% to 42%.
NASDAQ:QFINLong
by EqualOcean
Kuaishou Announces Q2 2021 Financial ResultsIn Q2 2021, the company generated CNY 19.1 billion in revenue, with a year-on-year increase of 48.8%. According to Kuaishou's Q2 2021 financial announcement: - Revenue rose by 48.8%, reaching CNY 19.1 billion. - Gross profit hit CNY 8.4 billion, representing an 89% growth. - The company's operating loss recorded CNY 7.2 billion, compared with CNY 2.5 billion in the same period of 2020. - Net loss was CNY 4.8 billion, showing an increase of 146.2%. - In Q2 2021, the average daily active user reached 293 million, with 506 million monthly active users. - The cumulative number of interrelated users of the app recorded 12.6 billion, representing an increase of 60%. - Among its major businesses, its online marketing revenue recorded CNY 10.0 billion (up 156.2%), accounting for 52.1% of total revenue; the revenue for its live streaming business was CNY 7.2 billion (down 13.7%), taking up 37.6% of total revenue; and its other businesses generated CNY 2.0 billion, making up 10.3 of total revenue. - Moreover, its e-commerce business reached a total of CNY 145.4 billion in transactions, twice as much as in the same period last year. - In terms of overseas business, Kuaishou announced that the company focused on developing markets in South America, Southeast Asia and the Middle East, with active investment in user acquisition and user activity. During the reporting period, the firm had over 180 million active users in overseas markets.
HKEX:1024
by EqualOcean
Great R/R for BABA short term, but could fall another 10-20%.Hey friends. One of my friends (and 100% a 'boomer in the making') was looking for some info on BABA. His strategy is always "BTFD" , and he holds very the long term. Looking at $BABA through a bullish perspective, it's in a decent oversold condition with a defined risk/reward. The weekly candle is a bullish reversal 'doji', and we're below the forming descending wedge (a typical "wave e"), plus the RSI is crazy oversold (weekly RSi has only been this low once or twice). Depending on what happens on Monday morning, you can buy at market open around 161 (likely no higher than 164), with a defined stop below the low of 152.39. Looking at $BABA through a bearish perspective, you can see that China's S&P equivalent (the CSI 300 Index, bottom chart) is also weak, which means China ain't so hot right now. We're below all major moving averages, and our MACD is showing no sign of a reversal. Keltner channels are all trending down. From a macro perspective, there's a lot of leftover tension from the trade war, and long term they're looking to do CNYUSD currency swaps (that is, swap all reserves and holdings from global USD to Chinese CNY, which will ease their reliance and dependency on playing nice with the US). I'm no expert, but they'll likely be selling USD and buying CNY, forcing the CNY up from increased demand. Therefore, because most of the CSI 300 companies 'holders' are denominated in CNY (I can't imagine many foreign holders of these companies), the companies will lose relative 'share value' to CNY. A temporary drop in China's stock market is a small price to pay for international autonomy and a shot at being the global reserve currency. Long term, they're looking to replace all trade partners with domestic solutions, so maybe my boomer-buddy has the best BTFD moment in history! There's actually a great Market Huddle Episode on China-USA Trade relations and the Triffin Paradox here Below, here's the CNYUSD. Does that look bullish? If it does, their stock market is about to take a wee-plunge. Good Luck!
NYSE:BABA
by TMoneyBidness
1
Kingsoft Cloud Announces Q2 2021 Financial ResultsIn Q2 2021, the company generated CNY 2.2 billion in revenue, with a year-on-year increase of 41.6%. According to Kingsoft Cloud's Q2 2021 financial announcement: - Revenue rose by 41.6%, reaching CNY 2.2 billion. - Gross profit hit CNY 119 million, representing a 46.8% growth. - The gross profit margin was 5.5%, compared with 5.3% in the same period of 2020. - Among the company's major businesses, its public cloud services recorded CNY 1.6 billion in revenue, reporting an increase of 20.5%; the revenue for its enterprise cloud was CNY 622 million, which extended 152.8%; and other businesses generated CNY 800,000. - During the reporting period, Kingsoft Cloud's cost was CNY 2.1 billion, showing a growth of 41.3%; IDC cost hit CNY 1.3 billion, representing an increase of 28.3%; and the depreciation and amortization cost recorded CNY 183 million, which was a decline by 15.8%. - Moreover, the firm's sales and marketing expenses reached CNY 96.1 million, with a decrease of 12.5%; its administrative expenditure was CNY 111 million, showing a decline of 35.1%; and its R&D expense recorded CNY 232.3 million. - Healthcare field: the company adopted a customized project strategy in the Hubei Healthcare Data Center and Public Health Emergency Management Platform – a sub-project for constructing a healthcare data center and application support. - Financial field: Kingsoft Cloud assisted in constructing Shandong Provincial Supply Chain Financial Platform 'Taifuxin.' At present, the firm has served nearly half of the large state-owned banks, accounting for 60% of the top 10 banks in China. - Public services: the company successfully won the selection project to prepare the top-level design for the housing and urban-rural construction information center, helping it improve its information technology and business operating system.
NASDAQ:KC
by EqualOcean
Country Garden Announces H1 2021 Financial ResultsDuring the six months through June, the company generated CNY 234.9 billion in revenue, with a year-on-year increase of 27%. According to Country Garden's H1 2021 financial announcement: - Revenue rose by 27%, reaching CNY 234.9 billion. - Gross profit hit CNY 46.3 billion (up 3.1%), and the gross profit margin was 19.7%. - Net profit was about CNY 22.4 billion, with a year-on-year growth of 2.3%. - Among the company's major businesses, its sale of properties recorded CNY 227.9 billion in revenue, reporting an increase of 26.6% and accounting for 97% of total revenue. The revenue from providing construction services was CNY 4.1 billion, made of 3% of total revenue; rental income hit CNY 374 million and other income was CNY 2.5 billion. - During the reporting period, the sales amount of the company's equity contract was about CNY 303.1 billion, showing an increase of 14%; the area of contracted sales of equity properties hit approximately 34.5 million square meters, representing a growth of 8%. - As of June 30, the firm covered 31 provinces, 296 prefecture-level administrative regions and 1,408 districts and counties in China, with a total of 3,127 projects.
HKEX:2007
by EqualOcean
Kingsoft Office Announces H1 2021 Financial ResultsDuring the six months through June, the company generated CNY 1.6 billion in revenue, with a year-on-year growth of 70.9%. According to Kingsoft Office's H1 2021 financial announcement: - Revenue rose by 70.9%, reaching CNY 1.6 billion. - Net profit hit CNY 549 million, representing a 53.5% increase. - Among the company's major businesses, its software licensing business recorded CNY 640 million in revenue, reporting an increase of 199.8%; the revenue for its office service subscription business was CNY 735 million, which extended 37.9%; its internet advertising promotion and other business generated CNY 190 million, with a growth of 12.2%. - During the reporting period, the cumulative number of paid individual members was 21.9 million, showing an increase of 30.2%. - As of June 30, the monthly active users reached 501 million, representing a growth of 10.4%. - In H1 2021, the firm expanded its personal cloud space from 1GB to 5GB, uploading a total of 108.5 billion files to the cloud through the public cloud, with a growth rate of 57%. - Moreover, the total number of R&D staff exceeded 2,188, accounting for over 60% of the company's total headcount, and its R&D investment was CNY 439 million.
SSE:688111
by EqualOcean
Haidilao Releases H1 2021 Financial ResultsIn the first half of 2021, Haidilao's revenue increased by 105.9% year-on-year, and its net profit turned from loss to profit. According to the interim performance report of 2021: - The operating revenue was CNY 20.094 billion (up 105.9% year-on-year). - The net profit was CNY 96.5 million, compared with a net loss of 965 million yuan in the same period last year. - Customers' per capita consumption decreased from CNY 112.8 in the first half of 2020 to CNY 107.3 in the same period in 2021, close to the level in 2019 before the epidemic. - The operating revenue of Haidilao restaurant in H1 2021 reached CNY 19.419 billion, achieving an increase of 112.2%. It accounted for 96.6% of the total revenue from 93.7% in the same period last year. The proportion of takeout business decreased to 1.7% from 4.2% accordingly. - As of June 30, 2021, Haidilao had 1597 global stores. - The average turnover rate of Haidilao in the first half of 2021 was only 3.0 times per day. - The number of members was 85 million, accounting for over 80% of the total turnover. - Up to now, Haidilao has built and renovated more than 100 new technology restaurants. The intelligent boiler dispenser has been applied in more than 70 stores, the vegetable delivery robot has been deployed in more than 1000 stores, and the intelligent exhaust equipment has been deployed in more than 600 stores. In order to strengthen internal management and operation, Haidilao adjusted its organizational structure in the first half of 2021. Besides, it also enriches customers' dining experience through diversified products, and hands over the power to launch more new products to regions themselves. Meanwhile, Haidilao also announced the changes in the members of the board of directors, adding seven executive directors Yang Lijuan and two independent non-executive directors, so as to further realize the rejuvenation of the enterprise management team.
HKEX:6862
by EqualOcean
iFLYTEK Announces H1 2021 Financial ResultsDuring the six months through June, the company generated CNY 6.3 billion in revenue, with a year-on-year increase of 45.3%. According to iFLYTEK's H1 2021 financial announcement: - Revenue rose by 45.3%, reaching CNY 6.3 billion. - Net profit hit CNY 419 million, representing a growth of 62.1%. - In H1 2021, the revenue of software and information technology service business was CNY 6.2 billion (up 45.8%), accounting for 98.0% of total revenue; its education and teaching business generated CNY 106 million (up 32.3%), taking up 1.7%; income from other businesses reached CNY 19.4 million (down 8.4%), making up 0.3%. - Among the firm's major businesses, consumer business accounted for the highest proportion of revenue (29.8%), following by education (29.1%). - For its education business, the revenue of education products and services recorded CNY 1.7 billion, showing a growth of 31.5%. - For its smart medical business, the revenue of medical business hit CNY 99.9 million, representing an increase of 34.1%. - For its smart cities business, the revenue of information engineering reached CNY 974 million, with a year-on-year growth of 3.9%; smart political and law industry applications generated CNY 288 million, indicating an increase of 30.5%; revenue from digital government-industry application recorded CNY 267 million, showing a rise of 74.7%. - At the same time, iFLYTEK's operating costs reached CNY 3.6 billion, showing an increase of 53.3%; its sales expenditure hit CNY 996 million, with a rise of 22.1%; the company's administrative expenses were CNY 415 million, indicating a growth of 28.3%; its R&D expenditure was CNY 1.2 billion, representing an increase of 27.4%.
SZSE:002230
by EqualOcean
ridethepig | CNH Market Commentary 22.08.2021Buyers position marks (5) as a soft and temporary floor. Other events can cause the base to appear a lot stronger than it does, so the transfer of the attack from one direction to the other can be subtle, although not a matter of pure chance. It has been a relatively straight forward flow, but one that has not seen much light thrown on the subject thanks to noisy explanations. As can be seen in the charts below, @ridethepig was concerned at the highs. The said possibility of a temporary floor is much rather a natural profit taking move in the struggle against sentiment. A considered judgement about the perverse signally from PBOC and Xi ought to look something like; base at 6.35xx is strong support (after the powerful legs lower it is very sensitive). That is the real truth, we are inside a multi-year decline that could go a lot. lot lower, for now, we shall have to content ourselves with limiting adding short positions till we are back above (4) highs at 6.587x for another test of the lows in our current range (6.58x - 6.40x).
Long
by ridethepig
2