Dada Nexus' Q3 2021: Expansion ContinuesSome improvement in financials was accompanied by new product initiatives.
Amid the recurrent waves of COVID-19 restrictions in China, on-demand retailing, which combines online experience and offline channels, is acting as a stabilizer in the consumer goods industry. Once tried, more people are choosing to stick to O2O-based consumption. According to an iResearch report (link in Chinese), the total GMV of China's local on-demand retail market is estimated to be set to expand at a 62% CAGR between 2020 and 2024. In this transition era, some companies are seizing the emerging opportunities to create massive market value.
Dada Nexus (DADA:NASDAQ), a firm operating on-demand delivery and retail platforms in China, is one of them. According to its latest unaudited quarterly financial results, in Q3 2021, Dada continued rapid business expansion, while growing its customer base. This article analyzes the company's recent financials and provides a look into its key moves and initiatives.
Net revenue growth accelerates, with narrowing losses
In the three months preceding and continuing into September 2021, Dada's net revenue growth inched up from the previous quarter's +81.3%, recording an 86% year-on-year increase. (The company's revenue recognition model was changed in April 2021.)
JDDJ, Dada's local on-demand platform that connects retailers and brand owners directly with consumers, has been performing exceptionally so far in 2021. GMV of the platform grew by 74.6% year-on-year, while its user base experienced a steady increase, reaching over 50 million and almost doubling from Q1 2020.
In this quarter, Dada's non-GAAP net loss was CNY 450.10 million; yet the company has achieved the earlier set goal of narrowing down this figure – it declined by almost one-fifth from CNY 549.20 million in this year's second quarter. Meanwhile, the operating profit margin improved by more than 16% year-on-year (aligning Dada Now's last-mile delivery revenue to a comparable basis).
Dada Now and JDDJ: old and new developments
Dada Now, an open on-demand delivery platform serving merchants and individuals, has achieved a 90% growth in net revenue year-on-year, mainly driven by a shored-up order volume of intracity delivery services to chain merchants. As disclosed during the company's earnings call on November 23, Dada Now's merchants increased by 110%, and revenues from supermarket key accounts rose by over 90% year on year. The platform also managed to deliver a 90% growth in the number of active SME merchants.
While expanding its user base, the platform has also been making efforts to provide its merchants with tools to improve business efficiency and boost their online sales. For example, new geo-fencing functions were added to the on-demand delivery system, allowing merchants to determine the delivery area effectively with no additional costs. Besides, in November, the company launched logistics SaaS Dada Smart Delivery, a system assisting merchants and third-party delivery service providers with "managing orders, dispatching and routing for omnichannel on-demand orders," according to Dada's executives.
Empowered by strengthened cooperation with JD.com, a unified brand called Shop Now, or Xiaoshigou, was released. This is another attempt to allow users to access on-demand services via various channels within the JD ecosystem – it is considered by Dada as a way to increase its penetration rate among the e-commerce platform's vast user base.
During China's now-traditional 'Double 11' shopping festival, JDDJ achieved a 100% year-on-year boost in GMV on November 1-11, 2021. As a result, net revenues from this platform added up to CNY 1.10 billion, up by 84% from the last year. According to Beck Chen, the company's CFO, the uplift was caused by raised GMV and average order size, which hit CNY 194 this time. In this year, the platform has developed partnerships with multiple big names in various sectors. Specifically, in the supermarket segment, JDDJ has already partnered with 82 out of China's 100 largest supermarket chains; in the smartphone sector, cooperation was established with Samsung and Honor, while JDDJ's total sales figure on the launch day of the iPhone 13 was seven times higher than that on the iPhone 12's launch day.
The company's efforts also empower the industry, specifically in the online marketing space: in this quarter, a program named Super New Product Day was launched to assist retailers with product promotion.
Risks to watch
Dada's cross-functional cooperation with JD.com is highly beneficial to the idea of developing a leading national brand for on-demand services. Yet, it is not the only tech giant-backed O2O platform aiming to fulfill the growing demand in the industry. The competition is poised to further intensify, with e-commerce and local services companies leveraging their 2C prowess.
As of September 30, 2021, Dada's cash & equivalents figure was at CNY 1.55 billion. Adding up the firm's restricted cash and short-term investments, the total volume was around CNY 3 billion. This drop in the cash position was, among other factors, due to the USD 150 million repurchase program announced in June; the plan was almost completed as of October 31, 2021: USD 130.6 million in ADSs had been repurchased by that date.
At a glance
Dada Nexus has improved its operating and marketing efficiency, as the narrowed ratios of O&S and S&M costs over the net revenue suggest. Its revenue, meanwhile, keeps growing. Despite that China's overly competitive on-demand delivery and retail space might keep the company's margins below zero for another few quarters, the company's prospects look rather promising: after all, Dada is a growth-stage firm in a market that some projects will swell at high double digits in the following years.
For the full article with the charts, please visit the original link.
Chinastocks
Largest Layoff in iQIYI’s HistoryGong Yu, CEO of iQIYI, said, 'the focus now is to increase revenue and reduce expenditure, cut down inefficient businesses and projects, and increase and try new monetization opportunities.'
On December 1, iQIYI carried out a round of large-scale layoffs. According to many laid-off employees, almost all employees in some departments have been laid off, and even profit-making departments such as content and intelligent hardware.
According to the news, the details of iQIYI's layoffs are as follows:
1. The purpose of this layoff is said to accelerate the pace of profitability, focus on content, technology, cost management, and flat structure. Therefore, in this layoff, more middle-level (director level) were laid off.
2. Budget shrinks: Almost all employees without probation are among the layoffs. iQIYI Research Institute, iQIYI game center, and other departments have almost all been laid off. Short video products will be merged with other products, and only 40% of people can stay. Employees who are laid off will receive N+ 1 compensation and can leave after handing over their work.
3. iQIYI intelligence (including VR and other products) also has a layoff proportion, but it is relatively low compared with the spending department. The ratio of layoffs in the content department is about 30%. The principle is to retain only low-cost employees for positions with the same responsibilities.
4. Many senior employees call this layoff 'the largest layoff in iQIYI's history,' and this round of layoffs is not over. Many people will be laid off before and after the Spring Festival.
iQIYI's Q3 2021 financial report showed that the company achieved a revenue of CNY 7.6 billion during the reporting period, with a year-on-year growth rate of 6%; The net loss was CNY 1.7 billion, an increase of 42% year-on-year.
BYD Launches Flagship 'Han' EV in Costa RicaThe sedan also debuted in other Central American countries.
BYD announced today that it has launched its flagship sedan Han EV in Costa Rica, in partnership with local distributor Corimotors.
"This cooperation will drive down carbon emissions to reach Costa Rica’s net-zero emissions goal by 2050," said Pedro Dobles, the General Manager of Corimotors.
"As BYD's flagship NEV sedan, the HAN EV has incredible driving performance with safety guaranteed. In the future, more BYD new energy cars will be introduced to provide local consumers with more options," Dobles added.
BYD launched the Han models in China last July – including the Han EV, an all-electric version with an NEDC range of 605 kilometers, and the Han DM, a hybrid model with a range of 81 kilometers on pure electric power.
Figures released by the company earlier this month show that Han sold 11,087 units in China in October, up 47 percent year-on-year and up 8 percent from September.
The Han EV sold 8,287 units in October, up 63.9 percent year-on-year, and the Han DM sold 2,800 units, up 12.4 percent year-on-year.
Cumulative BYD Han sales in China have reached 131,679 units since deliveries began in July last year, according to CnEVPost.
Notably, BYD is already one of the biggest players in the Costa Rican NEV market.
Earlier this month, BYD delivered 29 YUAN Pro EVs to a local Walmart, making it the largest all-electric EV fleet in Costa Rica.
Since 2020, BYD has been the top-selling NEV brand in Costa Rica, with a 30 percent market share in the local EV market, according to the company.
This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
Xiaomi's Revenue Hits CNY 78 Billion in Q3 2021As of Q3 2021, Xiaomi has invested in more than 360 companies, with a book value of CNY 59.1 billion.
Xiaomi releases its Q3 earnings report for the period ended September 30, 2021, on November 23.
- Internet service revenue was CNY 7.3 billion, a 27.1% year-on-year increase, with 73.6 gross margin
- IoT and consumer products business revenue was CNY 20.9 billion.
- Net profit was CNY 5.2 billion, a 25.4% year-on-year increase.
- Global shipments of smartphones were 43.9 million units, ranking third in the world, with a 13.5% market share.
- The number of users of devices (excluding smartphones, tablets and laptops) exceeds 8 million, with more than 400 million devices connecting to Xiaomi Group's AIoT platform.
- R&D investment was CNY 3.2 billion, a 39.5% year-on-year increase.
So far, the company has built the world's largest consumer IoT platform, connected to more than 100 million smart devices, and entered more than 100 countries and regions around the world.
Interesting Sityation The stock is approaching a strong support zone. Enter only on confirmation. At the moment the Chinese stock market is quite volatile, in particular the Alibaba Corporation itself. But securities of some Chinese companies are showing good growth right now
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Is it time to invest in China?KWEB is a China technology based ETF.
Top 10 holdings by weight:
Tencent Holdings ~ 10.62%
Alibaba Group Holding ~ 10.32%
JD.com ~ 7.21%
Meituan ~ 6.99%
Pinduoduo Inc ~ 6.97%
NetEase Inc ~ 4.71%
Baidu Inc ~ 4.27%
Bilibili Inc ~ 3.83%
Trip.com Group ~ 3.82%
JD Health International ~ 3.32%
Fundamental Analysis
China’s stock market pullback this year has been in line with the average annual drawdown (approximately 30%); historically, this volatility has tended to produce double-digit annualized gains.
In terms of seasonality, over the past 20 years, October has been amongst the strongest months for the Chinese stock market.
Technical Analysis
The 50sma has been tested as resistance 3 times before. A breakout above the 50sma could signal a significant change in trend.
The RSI has shown a positive divergence, as the last three times, we tested the horizontal line (blue arrow), in each case RSI is showing higher lows.
XPeng G9 First LookThe company will hold the third-quarter conference call on November 23.
XPeng Motors will unveil the G9 SUV, the company's fourth model and the first after its brand refresh, on November 19 at 11:00 a.m. Beijing time.
Photos of the model have already appeared in the XPeng app before the model was officially unveiled.
As previously reported by yiche.com, the new model will be based on the same Edward platform as XPeng's flagship sedan P7, which supports a wheelbase range of 2,800-3,100mm.
The model is expected to be priced at around CNY 300,000 (USD 47,000), equipped with a more advanced autonomous driving system with LiDAR and support for XPILOT 4.0, the report said.
Early last month, a Weibo user said that the XPeng G9 could be officially launched in the fourth quarter of 2022.
The car's wheelbase is between 3050-3100mm, which is longer than the NIO ES8 and Li Auto's Li ONE. But the car may be less than 5 meters long, possibly slightly shorter than the latter two, according to the blogger.
Its price may lie in the range of CNY 300,000 to 400,000, between the P7, which starts at CNY 229,900, and the P7 Wing edition, which costs CNY 409,900, the blogger said.
This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China
For the full article with the images, please visit the original link.
NetEase Releases Third Quarter 2021 Unaudited Financial Results"As an innovation-driven content creator, we will continue to deliver thoughtful premium content and products to our users across each of our carefully cultivated disciplines," said the CEO and director of NetEase, William Ding.
Third Quarter 2021 Financial Highlights
- Net revenues were CNY 22.20 billion (USD 3.4 billion), an increase of 18.9% compared with the third quarter of 2020.
- Online game services net revenues were CNY 15.9 billion (USD 2.5 billion), an increase of 14.7% compared with the third quarter of 2020.
- Youdao net revenues were CNY 1.4 billion (USD 215.3 million), an increase of 54.8% compared with the third quarter of 2020.
- Innovative businesses and other net revenues reached CNY 4.9 billion (USD 761.1 million), an increase of 25.7% compared with the third quarter of 2020.
- Gross profit was CNY 11.8 billion (USD 1.8 billion), an increase of 19.5% compared with the third quarter of 2020.
Total operating expenses were CNY 8 billion (USD 1.2 billion), an increase of 14.5% compared with the third quarter of 2020.
- Net income attributable to the Company's shareholders was CNY 3.2 billion (USD 493.8 million). Non-GAAP net income attributable to the Company's shareholders was CNY 3.9 billion (USD 598.7 million).
Basic net income per share was USD 0.15 (USD 0.74 per ADS). Non-GAAP basic net income per share was USD 0.18 (USD 0.90 per ADS).
Third Quarter 2021 and Recent Operational Highlights
- Expanded games portfolio with new games in more diverse genres, including:
Naraka: Bladepoint, which broke the sales record of buy-to-play games by Chinese developers and led the Steam top-sellers chart, remaining in the top 5 for weeks following its global launch in August.
Harry Potter: Magic Awakened, which led China's iOS top grossing chart and top download chart following its launch in September.
- Exciting new titles in China such as Ace Racer, Infinite Lagrange and Nightmare Breaker.
Launched The Lord of the Rings: Rise to War in Europe, the Americas, Oceania and Southeast Asia.
Extended solid popularity of franchise titles including the Fantasy Westward Journey and Westward Journey Online series.
- Enriched dynamic game development pipeline with exciting advancements to upcoming games including The Showbiz: Dream Chaser, the console version of Naraka: Bladepoint, Diablo® Immortal™, as well as Ghost World Chronicle, and Harry Potter: Magic Awakened in international markets.
- Progressed Youdao's capabilities as an education technology provider, with steady advancements in STEAM courses, adult learning and smart learning hardware devices.
- Expanded NetEase Cloud Music's content ecosystem and product innovation capabilities to strengthen its highly-engaged music-enteric community, delivering a solid financial performance.
Revenue Reaches CNY 31.9 Bn as Baidu Announces Q3 2021"Baidu Core delivered another solid quarter, powered by our AI cloud revenue growing 73% year over year," said Rong Luo, CFO of Baidu. "With a diversified AI portfolio, including cloud services, smart transportation, smart devices, self-driving, smart EV and robotaxi, we are well-positioned for long-term growth."
Total revenues were CNY 31.9 billion, increasing 13% year-on-year.
Revenue from Baidu Core was CNY 24.7 billion, increasing 15% year-on-year; online marketing revenue was CNY 19.5 billion up 6% year-on-year and non-online marketing revenue was CNY 5.2 billion, up 76% year-on-year, driven by cloud and other AI-powered businesses.
Revenue from iQIYI was CNY 7.6 billion, increasing 6% year-on-year.
Cost of revenues was CNY 16.1 billion, increasing 26% year-on-year, primarily due to an increase in traffic acquisition costs, content costs and cost of goods sold related to new AI business.
Research and development expense was CNY 6.2 billion increasing 35% year-on-year, primarily related to personnel-related expenses.
Operating income was CNY 2.3 billion. Baidu Core operating income was CNY 3.7 billion and Baidu Core operating margin was 15%. Non-GAAP operating income was CNY 4.7 billion. Baidu Core non-GAAP operating income was CNY 5.8 billion and Baidu Core non-GAAP operating margin was 24%.
For the fourth quarter of 2021, Baidu expects revenues to be between CNY 31.0 billion and CNY 34.0 billion, representing a growth rate of 2% to 12% year-on-year, which assumes that Baidu Core revenue will grow between 5% and 16% year-on-year.
The COVID-19 situation in China is evolving and business visibility is limited. The above forecast reflects Baidu's current and preliminary view, which is subject to substantial uncertainties.
iQIYI Releases Q3 2021 Financial ResultsMr.Yu Gong, founder, director, and CEO of iQIYI, commented the Q3 performance was a 'softer than expected top-line performance'.
According to iQIYI's financial announcement for the third quarter of 2021:
- The total revenues achieved CNY 7.6 billion (USD 1.2 billion), showing a 6% increase from the same period last year.
- The operating loss was CNY 1.4 billion (USD 212.3 million) and the operating loss margin was 18%.
- The net loss attributable to iQIYI was CNY 1.7 billion (USD 268.4 million), compared to CNY 1.2 billion in the same period last year.
- As of September 30, 2021, the total number of paid subscribers of iQIYI was 103.6 million, or 103.0 million excluding individuals with trial memberships.
- Membership service business continued to be the largest business pillar with the revenue increased by 8% and accounting for 57% of the total revenue.
- Online advertising revenue decreased 10% year-over-year to CNY 1.7 billion primarily due to less premium content launched during the quarter and the challenging macroeconomic environment in China.
- The content distribution revenue achieved a 68% growth on year over year basis to CNY 627.1 billion, which was primarily driven by more content distributed to other platforms during the quarter.
- For the fourth quarter of 2021, iQIYI expects total net revenues to be between CNY 7.08 billion and CNY 7.53 billion, representing a 5% decrease to 1% increase year-over-year.
TAL Education Says Goodbye to K9 Academic AST ServicesTAL Education will explore quality-oriented education from multiple aspects.
On November 13, Zhang Bangxin, CEO of TAL (TAL:NYSE) issued an internal letter to all employees, indicating the new strategic direction for the future and the personnel adjustments made in accordance with the new direction.
According to the announcement, TAL plans to cease offering academic subjects to students from kindergarten through grade nine ('K9 Academic AST Services') in the mainland of China by the end of December 2021. Any course services users have signed up for would be guaranteed.
Zhang expressed that the company's business focus will be transferred from the subject training to quality-oriented training, aiming to cultivate the ability that will bring children lifelong benefit. Several trials have been made: on one hand, humanities and aesthetic education, scientific puzzles, programming and other subjects; on the other hand, it may actively explore music, sports, art and other categories.
The internal letter also mentioned that TAL will further increase investment in research and development for education technology, referring to science and technology to promote educational progress. Besides, TAL will promote overseas business with great patience, continuing to build overseas business models, brand awareness and operational capabilities in the next five to ten years or even more. Finally, TAL will continue to incubate new business, regarding it as a driving force for new organizational capacity. It said that the company would do more in digital content publishing, education hardware, hosting services and other aspects to be well-prepared for the future.
Zhang said that, although the main business has experienced huge changes, the unchanged initial motivation of education, the core management stability, the solid research and development accumulation and deep-rooted brand consciousness should help the company to locate its own position. It will continue to create value for customers, employees and the whole society.
BIMI time for a big breakoutBIMI had a run and left many gaps opened , now its time to fill out those gaps and fly in the sky .
This is a very risky trade
High risk / high reward.
Don’t enter if you can’t manage your trade
Trade Safe
The inflation is taking TBLT to the moonKeep it easy simple and safe
Enter at current price
TP1 0.72 (42% gain)
TP2 0.89 (74% gain)
TP3 1$+
SL 0.49 (4% loss )
Safe trade , trade safe ><><
NIO Setting Up + Upcoming Catalyst NIO DAYNIO, the electric vehicle company is setting up again after being on a serious downtrend since its surge in January. This surge was the result of lots of "hype" around the name, the rise of Tesla, and its upcoming NIO day which happened on January 9th, 2021. We saw a massive run up the month before, around 60%.
This year, NIO day is happening on Dec 18th, 2021. This should cause an influx of volume and talk about the name. Keep an eye on this one.
In order to confirm the Elliot waves, we still need to create the (E) section of the triangle. Once this is confirmed, I believe we can start rising. However, with NIO day approaching soon, there is the possibility of NIO ripping before the set up completes. I will be watching for any signs of a pullback and be entering calls and shares around the 38-40$ mark.
Definitely keep this one on watch because we know from previous bullish runs, that this thing can RUN. The upside potential is very high here.
Weibo Announces Q3 2021 Financial ReportThe leading social media in China, Weibo (NASDAQ: WB), released its unaudited financial results for the third quarter of 2021.
According to the Q3 performance report for 2021:
- The revenue totaled USD 607 million (CNY 3,882 million), increasing 30% year-on-year. As of September 30, 2021, the total cash, cash equivalents and short-term investments amounted to USD 2.71 billion (CNY 17.333 billion).
- The operating profit was USD 213 million (CNY 1,477 million), showing an upward trend of 32%, while the net profit was USD 182 million (CNY 1,164 million), growing 438% from the same period last year.
- The advertising and marketing revenue increased by 29% to USD 538 million (CNY 3,441 million), which was mainly due to stronger demand for advertising from key industries.
- Revenue from value-added services was USD 69.8 million (CNY 446 million yuan), up 42% year-on-year.
- The revenue cost was USD 394 million (CNY 2.520 billion), which was mainly related to increased staff-related costs and marketing expenses. Specifically, revenue costs, marketing costs, product development and administrative expenses were USD 103 million (CNY 659 million), USD 141 million (CNY 902 million), USD 119 million (CNY 761 million) and USD 31.75 million (CNY 238 million), respectively.
- As of September 2021, Weibo has 573 million monthly active users, and 94% of them are mobile users. In September 2021, the average daily active number of Weibo users reached 248 million. Affected by events such as the Olympics, its user base and traffic re-peaked in July and August after the outbreak since March 2020, reaching 302 million once.
Tencent's Profit Down 2% YoY for the First Time in 10 YearsThe drop was a result of regulatory crackdowns on media and restrictions on teenagers' gaming time.
Despite enhancing its parental control policy and constrained gaming time for teenagers (from 6.4% in Q3 2020 to 0.7% in Q3 2021), Tencent saw its domestic gaming service revenue increase by 5% and 20% for the overseas markets. However, Tencent's top moneymaker – mobile gaming – has seen its growth slow down for three consecutive quarters.
A series of media crackdowns in China has been influential on Tencent's advertising income. The YoY revenue grew only 5% due to the political impact on industries, such as education and insurance. In addition to the latest regulatory change, media advertising revenue primarily from the Tencent news app has dropped 4%.
Meanwhile, Tencent's free cash flow decreased by 14%.
TSMC To Produce Chips In Japan By 2024 In Deal With SonyThe deal worth USD 7 bn establishes joint venture company Japan Advanced Semiconductor Manufacturing.
TSMC's board of directors officially approved plans to build a chip factory in Kumamoto Prefecture, its first-ever Japanese plant. Sony is set to invest USD 500 million and will hold no more than a 20% stake in the joint company, according to a statement released on Tuesday. The project will be Japan’s largest financially supported endeavor for a foreign-controlled company with billions of Japanese Yen in subsidies. It will create 1,500 high-tech professional jobs in Japan with the construction of the chip plant scheduled to begin in 2022 and production slated to begin in 2024. TSMC already has a plant in Nanjing and is currently constructing a plant in Arizona in the U.S. with considerations to build a new chip facility in Germany.
The semiconductor industry has been a top priority for many nations grappling with recent supply chain shortages. Japan’s response to the crunch is a framework for subsidies that allows companies to build chip factories in the nation. The conditionality is that firms must respond to requests for increased production and prioritize supply to domestic companies should supplies of semiconductors become tight. Sony specifically is TSMC’s biggest client in Japan making the deal quite worthwhile for both ends. The plant will produce state-of-the-art 7-nanometer chips as well as less advanced but versatile 22- to 28-nanometer chips.
TSMC was founded in February 1987 by Zhang Zhongmou and is headquartered in Taiwan. It is a professional integrated circuit manufacturing server with the world's most advanced semiconductor technology.
NIO Q3 Earnings: What to ExpectWill the chip shortage affect Nio's Q3 results?
NIO will report unaudited third-quarter earnings on November 9 after the US market closes. So what can investors expect?
NIO has already released data showing that it delivered 24,439 vehicles in the third quarter, up 100 percent year-on-year and 11.6 percent from the second quarter. Of those, 5,418 ES8s, 11,271 ES6s, and 7,750 EC6s were delivered.
In a research note sent to investors on November 3, Deutsche Bank analyst Edison Yu's team said the delivery figures were largely in line with their latest forecast.
The team expects NIO's revenue to be CNY 9.33 billion in the third quarter, representing a 106.1 percent year-on-year increase and a 10.4 percent increase from the second quarter.
Yu's team expects NIO to report a gross margin of 17.0 percent in the third quarter and a vehicle margin of 18.6 percent. As a comparison, the company had a gross margin of 18.6 percent and a vehicle margin of 20.3 percent in the second quarter.
The team attributed their lower gross margin forecast to higher depreciation amortization.
Based on these figures, the team expects NIO to report a loss of CNY 0.82 per ADS in the third quarter. This compares with a figure of CNY 0.21 in the second quarter.
For the fourth-quarter outlook, Yu's team expects NIO's management to likely give guidance of 24,000-25,000 deliveries, considering that October's downtime resulted in only 3,667 deliveries for the month.
NIO's management has hinted that their order book has exceeded 10,000 units for several months in a row, so Yu's team expects NIO's deliveries in November and December to improve back to more than 10,000 units, and expects the company's guidance for fourth-quarter revenue may be in the CNY 9.5 billion-10 billion range.
NIO has previously said it aims to deliver three models next year, including its flagship sedan ET7, Yu's team noted, adding that they don't think NIO's management will do a complete refresh of its current models next year, as it believes they can remain competitive with the most competing German luxury models with minor updates.
Yu's team raised NIO's delivery forecast for next year from 150k to 160k and for 2023 from 245k to 285k.
Based on the latest delivery forecast, the team raised its price target on NIO by USD10 to USD70, still based on 8x 2023E EV/sales.
In a separate report sent to investors on November 4, Yu's team noted that NIO's stock has significantly underperformed its local peers over the past three months, but that could change soon.
The team believes that there are 2-3 potential catalysts that could help change the narrative on the stock next. Here's what they say:
1) 3Q21 earnings on 11/9: management will provide 4Q guidance that shows large step-up in volume recovery for Nov/Dec and while official consensus is likely too high, we believe buy-side expectations have already been reset.
2) November monthly deliveries: likely reported on 12/1 and should confirm robust demand for existing models despite greater competition.
3) NIO Day: will be held on 12/18 and we expect new models/technology to be unveiled that should boost both investor and consumer sentiment.
Notably, the team also cautioned that risks including further constraints from the supply chain, a sudden shift in EV investor sentiment and poor initial acceptance of new products could also invalidate these judgments.
NIO shares are up about 10 percent so far this month and up about 20 percent in the past month.
This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
Haier Founder Zhang Ruimin Steps Down as ChairmanZhang volunteered not to participate in the nomination of new directors. Zhou Yunjie was elected as the new chairman of the board and appointed as CEO. Liang Haishan was appointed as president.
During Zhang’s 37-year stint at Haier, the firm has grown from a Qingdao refrigerator factory with a sale revenue of only CNY 3.48 million but a deficit of CNY 1.47 million in 1984 to a global enterprise with a worldwide sale of more than CNY 300 billion and a pre-tax profit of more than CNY 40 billion in 2020.
According to the Qingdao-based firm, Zhang proposed a management model called Rendanheyi in 2005, which has 'become a trend during the era of Internet of things.'
As a legend in China's household appliance industry, Zhang, known as the 'godfather of Chinese management,' has been selected as one of the 50 most influential global management philosophers. In September 2021, Zhang and Eric Cornell, president of the European management development foundation, jointly signed the first international certification of innovative management, signifying that the Chinese enterprises have created the first international standard of management mode.
Consequently, Haier pioneered a new inheritance mechanism, enabling the company to keep evolving after transforming from its bureaucratic model into a self-driven enterprise.
Zhang was also among the 100 Chinese who were awarded the medals of reform pioneers during a grand gathering in December 2018 to mark the 40th anniversary of the country's reform and opening-up.
Lenovo Group's Net Profit Reached CNY 222.5 Bn in 2021 H1Hong Kong stocks of Lenovo Group fell by 0.35% to HKD 8.47/share, with a total market value of HKD 102 billion.
Lenovo Group has three major business groups, namely the intelligent equipment business group (IDG), the infrastructure solution business group (ISG), and the solution service business group (SSG).
The 2021 H1 financial reports for the Lenovo group are as follows:
- Revenue was USD 34.8 billion, a 24.87% year-on-year increase.
- Net income was USD 978 million, an 87% year-on-year increase.
- IDG's revenue reached USD 30 billion, an increase of 24.14% year-on-year, with USD 2.3 billion in net profit.
- ISG's revenue was USD 3.8 billion, an increase of 23.57% year-on-year, with USD 16.9 billion in net loss.
- SSG's revenue recorded USD 2.5 billion, an increase of 33.39% year-on-year, with USD 548 million in net profit.
The six months performance period ended September 20, 2021, are as follows:
- R&D expense was USD 948 million, accounting for 2.72% of revenue.
- SG&A expense was USD 3.3 billion, accounting for 9.44% of revenue.
The 2021 Q2 performance are as below:
- Revenue was USD 17.9 billion, a 23.07% year-on-year increase.
- Net income was USD 512 million, a 65.16% year-on-year increase.
TuSimple Releases 2021 Q3 Finanical ReportBank of America reiterated TuSimple at a 'buy' rating, with a target price of USD 60. The bank said TuSimple had plenty of liquidity despite still losing money in the third quarter.
According to TuSimple's financial announcement for the third quarter of 2021:
- The revenue was USD 1.80 million, increasing by 205.65% compared with the same period last year.
- The net loss was USD 115 million, increasing by 28.56% compared with the same period last year.
- The research and development expenditure increased by 40.75% to USD 84.51 million.
- The revenue cost was USD 3.49 million.
- The sales and marketing expenses were USD 910,000.
- The general and administrative expenses were USD 28.83 million.
- TuSimple holds USD 1,41 million in cash and cash equivalents as of September, 30.
- At the end of the reporting period, TuSimple's road mileage was 5.4 million miles (about 8.69 million kilometers), showing an upward trend of 17% compared with last month. Among them, the fully automated truck bookings totaled 6,875, 100 more than that in the second quarter; and map mapping miles totaled 9,900 miles, growing 16% from last quarter.
- TuSimple expects the full-year revenue would be USD 5 million to USD 7 million, with USD 200 million to USD 220 million investments in research and development.
NIO: Added Over 10k Orders in Oct, No Chip Shortage for OctNIO said in an announcement on its website yesterday that it delivered 3,667 vehicles in October, including 218 ES8s, 2,528 ES6s and 921 EC6s. That delivery volume fell 27 percent year-on-year and was 65.5 percent lower than in September.
After a short explanation of the dip in October deliveries on the NIO App yesterday, NIO co-founder and president Qin Lihong gave more details in an interview.
NIO's factory in Hefei ran at full capacity for only 10 days in October, so deliveries were low, but sales in October were excellent and reached a record high, local auto media Chedongxi said, citing an interview with Qin today.
Qin said he could not disclose the number of new orders, but said "it's definitely over 10,000, and we've been over 10,000 for several months in a row."
Chedongxi reports that their visits to NIO stores also confirm Qin's claims. A salesperson at an NIO store in Beijing's Wukesong said the store sold more than 100 units in October, a good month for the year.
"Because loan rates are going to be raised in November, 1,400 cars were sold across Beijing on October 31 alone," the salesperson said.
The company attributed this to lower production volumes due to production line restructuring and upgrades and preparations for new product introductions between September 28 and October 15, as well as certain supply chain fluctuations, but did not provide more details.
In the latest interview, Qin said NIO began a revamp of the JAC NIO manufacturing site in April and May this year to allow the ET7 to be produced and delivered in the first quarter of next year and to expand the plant's capacity.
The renovation was carried out in several phases so as not to affect the production of NIO's existing models, with the latest upgrade, which began at the end of September, being a very important phase, Qin said.
One of the tasks was the expansion of the body welding line, with more than 100 new robots alone. "After the equipment goes in and is commissioned, there's another week of complementing the line and capacity creep," Qin said.
As some car companies continue to blame the chip shortage for the decline in deliveries, Qin was also asked by Chedongxi if the decline in NIO deliveries was related to that, and Qin answered in the negative.
NIO's factory was open for just 10 days, and that little production wasn't enough to be affected by the chip shortage, he said.
Separately, according to Beijing News, Qin said NIO's current production pace is normal and orders in the clog will soon be cleared.
Consumers who order NIO vehicles now can get deliveries in six weeks at most, Qin said, adding that NIO deliveries will get back on track in November and December.
This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
Tencent Meeting Held 4 Bn Meetings in 2020, Hit 200 Mn UsersThe outbreak of COVID-19 in 2020 damaged many sectors. The videoconferencing market was among the winners.
Tencent Meeting (global version – VooV Meeting) took its second mover advantage and tightly followed its global counterpart – Zoom. Released in late December of 2019, Tencent Meeting, although coming out seven years later than Zoom, has now become the most used video conferencing app in China. According to Tencent's vice president Yuepeng Qiu, Tencent Meeting now attains (source in Chinese) 200 million users and held more than 4 billion meetings in 2020.
At the time Tencent Meeting was presented, no one could predict its future impact in China. From its bare-bone functionalities and dated UI in earlier versions (even today 26% of its user ratings are 1-star), we could speculate that this app initially wasn't the tech giant's top priority.
Resulting from its unexcepted success, Tencent Meeting now joins the Tencent enterprise services ecosystem. The following months will see more integration between Tencent Meeting and Enterprise WeChat.