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Tesla Can Deal with Supply Chain Shortage Unlike Chinese PeersBYD is positioned well, too. The global automotive industry is facing a deepening supply chain crisis. For one, Toyota: it slashed 40% of its planned production in September. Another case is French carmaker Renault: it expects to cut production by 500,000 cars this year. Although many companies have been making decisive moves, they haven’t seen much relief so far. On the other hand, NEV leader Tesla (TSLA:NASDAQ) delivered another record quarter again. Why didn't the shortage bother Tesla much? When will this supply chain mess be over? What's the crisis' implication on EV stock valuations? This article will answer these three questions. As we argued in our latest research report, there are at least four major factors causing this component shortage: The capacity cycle in the semiconductor industry Lockdowns affecting key suppliers Fast-growing demand for electronics Climate hazards and natural events The first and third reasons reveal the long-term bottleneck in the chip industry. Among other implications, this means most OEMs now need to pay more to get essential components. With its great cost control and supply chain integration, Tesla is likely to remain the least affected EV brand. Among Chinese companies, BYD can resist surging costs – but to a smaller extent than Tesla. NIO, XPeng and Li Auto will have to spend more money to deliver cars on time. Li Auto, for example, is said to buy chips at 800 times the normal price. We'll start with the semiconductor chip-related reasons. An eventful year The semiconductor shortage is both accidental and inevitable. Auto chips only account for 10% of the global semiconductor capacity. But the mounting demand for auto chips occurred along with a trough in the semiconductor market cycle, which has significantly affected global chip production. Before this trough, the most commoditized types of integrated circuits, like DRAM, had seen their prices declining, which made the sector's largest players postpone capacity expansion. Meanwhile, the pandemic forced workers far away from their assembly lines. In Kuala Lumpur, for instance, testing and packaging plants had to shut down for almost three months since June this year. The pandemic also disordered the consuming patterns: demand for all electronics, especially PCs, smartphones and tablets surged during the outbreak. Lastly, the automotive semiconductor supply chain was also hit by a few climate change-caused black swans. In February, extreme weather in Texas caused widespread power outages, affecting manufacturing activities at Samsung, NXP and Infineon. Dawn in 2022 The crunch is likely to be relieved in 2022 but it will take years to fully meet the industry's needs. Predicting supply chain relief timing is hard, as most companies can only focus on a small segment within the whole sector. We found that most players believe the situation had improved by July but will remain an issue, at least until the end of 2021. Only a few CEOs have expressed longer-term worries. However, some have extended their auto industry recovery time estimations. IHS Markit's newest forecast indicates that the industry will not enter a recovery phase until 2023. The CEO of chipmaker STMicroelectronics, Jean-Marc Chery, claimed the shortage would likely last at least two years. "Things will improve in 2022 gradually," he said, "but we will return to a normal situation … not before the first half of 2023." Besides, capacity expansion is rather costly and slow. Auto IDMs don't want to invest heavily in exorbitant fabs, especially those for leading process nodes. But even if some chip designer wants to invest in such a project, it takes around two years to build a fabrication plant and start production. Recently, some Tier-1 companies are changing their asset-light strategies. Bosch, for example, plans to invest more than EUR 400 million in 2022 to expand its fabs in Dresden and Reutlingen, Germany, and its semiconductor testing center in Penang, Malaysia. Favored electric cars Albeit auto brands can't get components on time, many of them are now prioritizing EV production. This is quite unusual, given that EV model, on average, need more chips of various kinds; it's also surprising that at the moment consumers need to wait less time to get an EV: "Mercedes EQC, a recently launched EV, has a two-month delivery time, while a GLC, which features a traditional powertrain, has five months," according to IHS Markit. On the other hand, pure EV brands, like Tesla, NIO and Xpeng, keep delivering record sales. The former's fundamentals, however, differ significantly from those of its Chinese peers. Here's why: 1. Tesla's impressive growth is a key negotiation tool. Almost any supplier wants to do business with the one-trillion-dollar tech giant and doesn't want to miss Tesla's future orders. 2. Tesla is self-designing and producing more components than a typical EV brand. The company designs and produces key parts of its models such as electromotors, electronic control systems and battery management systems. What's more, Tesla now designs chips and 4680 batteries in-house. Via developing essential parts of the supply chain, the company has a better understanding of what can happen at other links. 3. Tesla's cars have fewer components. The company is known for decreasing the use of radars and other accessories. BYD is another 'partly crisis-proof' company in the sector. The Warren Buffet-backed car maker also designs, makes and sells EV batteries and chips, among other products. From January to September, BYD sold 337,579 new energy vehicles, up 204.29% year on year. But the company has reportedly suffered rising costs. According to its Q3 results, BYD achieved operating revenue of CNY 54.31 billion in the third quarter, a year-on-year increase of 21.98%; net profit excluding non-recurring gains and losses was CNY 518 million, down 67.17% year-on-year. More expensive raw materials contributed to the profit decline. NIO, XPeng and Li Auto are facing levitating cost pressure, and their stocks are likely to plateau after the Q3 results are posted.
NASDAQ:TSLA
by EqualOcean
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.
NYSE:NIOLong
by GringoRiley
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.
NASDAQ:WB
by EqualOcean
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%.
OTC:TCEHY
by EqualOcean
US CPI number so hot, it made gold jump resistanceGold had the largest reaction to a US CPI release in a long time. The price reached a temporary high of $1860s before calming down. It's important to note that GOLD has had several head fakes in the past two years and this move could reverse. Technically, it's the smart thing to wait for a retest of the $1835 level before buying... Fundamentally, inflation is going to remain persistent as a result of supply bottlenecks. China PPI is at the highest level since the 1990s. High energy prices & Covid19 cases flaring up in the country have contributed to this. Since China is the global manufacturing hub, I expect the price rises to be transferred to importers & consumers around the world. To summarize, Gold is going to have an amazing 2022.
FOREXCOM:XAUUSDLong
by GrizzlyBearBee
6
NIO's Q3 Earnings Call: Here's Everything You Need to KnowThe company is considering IPO in Hong Kong. NIO reported its third-quarter earnings on Wednesday morning Beijing Time and held an analyst conference call afterward to address the most important concerns of investors. Here's a summary from CnEVPost, and there's also a live text of our transcript of the call at the end of the article. Vehicle Deliveries Current NIO deliveries are primarily affected by supply chain volatility and are expected to reach 23,500 to 25,500 units in the fourth quarter, said William Li, founder, chairman, and CEO of NIO. NIO's new orders continue to grow, with a record high of new orders in October, he said. Chip supply is now better than the worst of the third quarter, but still faces challenges. The good thing is that NIO has adapted to the situation and always finds some solutions when possible, Li said. Compared to the automotive industry as a whole, NIO has a relatively small share of sales, so it faces fewer difficulties compared to established car companies, he said. Many of NIO's domain controllers are developed by itself, so it has some advantages in finding alternative chips. Power battery giant CATL is trying to ensure the supply of batteries to NIO, but this is still the ceiling of NIO's delivery volume. The JAC NIO plant will have a few more upgrades to follow, but they won't have as big an impact as they did in October. New NIO models will be built in the new plant, and there will be a capacity creep, but it won't have an impact on the production of existing models, Li said. ET7 and New Models NIO plans to have the ET7 available in showrooms around the Chinese New Year, which comes on February 1, according to Li. The release of the ET7's assisted driving capabilities will be a long-term process, and NIO will consider a number of factors, including regulations, safety and reliability, and will not deliberately make demonstrations of autonomous driving. NIO's 150 kWh battery is moving forward on schedule, with availability scheduled for the fourth quarter of next year, and is still on track. Development of NIO's NAD hardware and software systems is well underway, and in addition to the ET7, development of two other new models based on the NT2.0 platform is on schedule, with deliveries to customers expected to begin in the second half of next year, Li said. With the growth in scale, NIO's long-term target for the margin of vehicles based on NT2 models is 25 percent. NIO will reach that goal if it reaches 300,000 units of annual production capacity. NIO's current models will be upgraded to the NT2 platform, but it will manage the pace carefully. The development work for the upgrade is already underway. Many of NIO's new models are being developed in parallel, and the costs will be reflected in the financial statements over time. NIO will offer some hardware upgrades to existing models next year when they become available. The company has considered the possibility of upgrades in the design of its products. New Plant and Capacity Growth In addition to the upgrade of the JAC NIO plant, the construction of NIO's second plant in NeoPark is proceeding on schedule. Construction of the plant started on April 29 and the main structure was topped out on August 26. Equipment installation will start at the end of November and the plant will be officially put into operation in the third quarter of next year. With the completion of NIO's second plant, the two plants can reach a maximum annual capacity of 600,000 units with double shifts, which can meet the needs in the short term. About Norway and European Expansion NIO's work in Norway has met expectations, with a quarter of the test drive customers placing orders, much more efficiently than in China. NIO ES8 orders in Norway exceeded expectations, with 92 percent of consumers choosing the battery rental service BaaS, Li said. NIO hopes to establish an after-sales service system in Norway before aggressively pushing sales. The company's low deliveries in Norway in September and October were not due to a lack of orders, but rather a controlled pace, and NIO's deliveries in Norway will increase significantly in November. NIO will enter at least five additional European countries next year, all offering NT2-based products. The ES8, based on the first-generation platform, will only be available in Norway. Regulatory Credits and Subsidy Withdrawal Most of NIO's sales of regulatory credits materialized in the third quarter, earlier than last year. Li said NEV penetration has risen quickly this year, as has the price of regulatory credits, and expects that next year the price of regulatory credits may be lower than it is now. In response to a question about China's subsidy rollback for NEVs, Li said the average selling price of NIO vehicles is high and the expected subsidy rollback won't have much of an impact on it. The following is the text of CnEVPost's live report of the conference call: NIO's new orders continue to grow, with a record high of new orders in October, said William Li, founder, chairman, and CEO of NIO. Current NIO deliveries are mainly affected by supply fluctuations, and total deliveries are expected to reach 23,500 to 25,500 units in the fourth quarter of 2021. Development of NIO's NAD hardware and software systems is well underway, and in addition to the ET7, development of two other new models based on the NT2.0 platform is on schedule for delivery to customers starting in the second half of next year, Li said. In addition to the upgrade of the JAC NIO plant, NIO's second plant in NeoPark will start installing equipment at the end of November and will be officially put into operation in the third quarter of next year, said Li. NIO ES8 orders in Norway exceeded expectations, with 92 percent of consumers opting for the company's battery rental service BaaS, Li said. The JAC NIO plant will have small amount of renovations to follow, but they won't have as big an impact as they did in October. New NIO models will be built in the new plant and there will be a capacity creep, but it won't have an impact on the production of existing models, Li said. Most of the sales of regulatory credits occurred in the third quarter, earlier than last year. With the growth in scale, NIO's long-term target for vehicle margin based on the NT2 platform is 25 percent. NIO plans to have the ET7 available in showrooms around Chinese New Year, which arrives on February 1, Li said. The current chip supply is better than the worst third quarter, but still faces challenges. The good thing is that NIO has adapted to the situation and always finds some solutions as much as possible. Compared to the whole automotive industry, NIO's sales account for a relatively small percentage, so the difficulties it faces are also relatively smaller than those of established car companies. Many domain controllers are developed by NIO itself, so it has some advantages in finding alternative chips. CATL is trying its best to ensure the supply of batteries to NIO, but it is still the ceiling of NIO's delivery volume. The average selling price of NIO vehicles is high, and the expected subsidy withdrawal will not have much impact on it. The release of ET7's assisted driving capability will be a long-term process, and NIO will consider a number of factors including regulations, safety, and reliability, and will not deliberately go for autonomous driving demonstrations. NIO's 150 kWh battery is advancing on schedule, with plans to deliver in the fourth quarter of next year, and is still on track. If NIO reaches an annual capacity of 300,000 vehicles, it will be able to achieve a 25% vehicle gross margin. NIO's current models will be upgraded to the NT2 platform, but NIO will manage the pace carefully. R&D work for the upgrade is already underway. NEV penetration has risen rapidly this year, as has the price of regulatory credits, and next year the price of regulatory credits may be lower than it is now. NIO's work in Norway has met expectations, with a quarter of the test drive users placing orders, much more efficiently than in China. NIO hopes to establish an after-sales service system in Norway before aggressively pushing sales. The company did not deliver much in Norway in September and October, not because there were not enough orders, but because it was controlling the pace. NIO's deliveries in Norway will increase significantly in November. NIO will enter at least five additional European countries next year, all offering NT2-based products. The ES8, based on the first-generation platform, will only be offered in Norway. Many of NIO's new models are being developed in parallel, and the costs will be reflected in the financial statements over time. With the completion of NIO's second plant, the two plants can reach a maximum annual capacity of 600,000 units with double shifts. NIO will offer some hardware upgrades to existing models next year when the time comes. The company has considered the possibility of upgrades in the design of its products. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NYSE:NIO
by EqualOcean
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.
NYSE:TSM
by EqualOcean
Tencent Music Sees Rise in Revenue - Q3 2021 Financials ReleasedOnline music paying users jumped 37.7% to 71.2 million from a year earlier, while the figure increased by 5 million from the prior quarter. The total revenue of Tencent music in the third quarter was CNY 7.81 billion, an increase of 3.0% over the same period. The net profit was CNY 1.06 billion, a decrease of about 35% over the same period. The financial report also pointed out that in the first three quarters of 2021, the total revenue of the firm was CNY 23.63 billion, an increase of about 13.5% over the same period last year. The revenue from online music services was CNY 2.89 billion, a year-on-year increase of 24.3%. The revenue from music subscription services was CNY 1.9 billion, a year-on-year increase of 30.2%. This growth was due to the record number of online music paying users, reaching 71.2 million, a year-on-year increase of 37.7%. The revenue from social entertainment services and other businesses was CNY 4.92 billion, a year-on-year decrease of 6.4%. Tencent music said that this was due to the temporary loss of some mild users to other pan entertainment platforms, resulting in a year-on-year decrease in the company's online music and social entertainment Mau. The results come amid a regulatory crackdown in China on sectors from tech to education and property. The company's parent, Tencent Holdings, said in August it had ended all exclusive music copyright agreements after regulators barred it from such deals.
OTC:TCEHY
by EqualOcean
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.
NYSE:NIO
by EqualOcean
ALIBABA $BABA gift to you$BABA has been in a downtrend all year 2021. while this has being disappointing to investors, its also the one in 4 years opportunity to buy into this Chinese retail leader at these prices. I mean 140 $ -160 is your buy zone. it will never be this cheap for a long time. HARD SUPPORT is at I40$ and that represents the new foundation for this moon shoot. This is a long term play so allocate capital judiciously. TAKE PROFIT zones should be about 210-220 and 260- 280. GOODLUCK!!
NYSE:BABALong
by lexcel
What's preventing AUSSIE from climbing further ?Current RISK ON mood in the markets should likely propel AUDUSD higher as the economies around the globe try to recover. As china is dependent heavily on Australia on trade matters, we have every reason to believe that the AUSSIE will likely gain ground as the recovery in the Chinese exports continue. So from technical point of view, the question that arises is: what is stopping the AUDUSD from climbing further? Just have a look at the main chart to understand the clear picture. Aussie seems to be supported by a ascending trendline and until this breaks, we are still in an uptrend. Now for this uptrend to resume we need to see clear breakout of the price outside its triangle (descending trendline) to target the next resistance at 0.77700. Lets see how this all plays out! EXTRA: have a look at the related link section. there is an active SHORT SWING EURGBP WEEKLY TRADE. The entry price is at an excellent level. enter at your own risk if you wish. the analysis is also present behind this trade THIS JUST REPRESENTS MY ANALYSIS ON THIS PAIR AND ITS NOT A TRADE SIGNAL. I HAVE MANY PAIRS THAT I MONITOR AND ALL OF MY TRADES ARE ON W, D , 4H TIMEFRAME (SWING TRADES). ITS NOT POSSIBLE TO POST ALL OF MY ANALYSIS HERE, HOWEVER I POST TRADE SIGNALS WHEN THE CRITERIA IS MET ON THE FX PAIRS I MONITOR. FOLLOW & LIKE TO RECEIVE FREE FX SWING TRADE SIGNALS CHEERS
Long
by FX618Analysis
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.
HKEX:6690
by EqualOcean
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.
HKEX:992
by EqualOcean
1
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.
T
by EqualOcean
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.
NYSE:NIO
by EqualOcean
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.
OTC:TCEHY
by EqualOcean
$BABA: It's time, load up the truck...I think $BABA likely bottoms around here, the 14 week down trend signal that predicted this decline reached its final week and price will gap down into long term support from the all time 25% speed line for the whole advance from the bottom to the top. Sentiment had reached critical levels for equities last week already, and there's a path out of this mess with Evergrande possibly under control and most investors liquidated out of this stock, reaching lows not seen since 2019. Valuation is interesting now, so, it seems like a good play to try and knife catch this one. I once tried with the $KWEB etf which had completed a similar down trend recently, which led to a rapid rebound rally but that rally was faded after I took profits, and prices retraced back near the bottom on the back $BABA's continued weakness. The time is likely now, to try and fade this largely hyped fall, after most people trying to catch the bottom gave up already. Let's roll! I risk 1 average true range down, below this support level here, I will then monitor daily charts for a bullish trend signal after basing, to accumulate more shares and trail my stop loss higher. Cheers, Ivan Labrie.
NYSE:BABALong
by IvanLabrie
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