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SF Holding’s Net Profit Drops by Nearly 70% in the 1st 3Q 2021The acquisition of Kerry Logistics assets reached CNY 200 billion. SF Holding released its Q3 earnings report for the period ended September 30, 2021, on October 28. · Operating income was CNY 47.5 billion, a 23.5% year-on-year increase. · Net income was CNY 1.0 billion, a 43.5% year-on-year decrease. · Gross margin decreased by 6.8%. · Completed 51.5% shares of Kerry Logistics, followed by a 71.4% increase in SF holding’s total asset The First three-quarter financial reports for the logistics firm are as below: · Operating income was CNY 135.9 billion, a 23.97% year-on-year increase. · Net income was CNY 1.8 billion, a 67.9% year-on-year decrease. · Shipments reached 7.7 billion in the first three quarters, with 36.39% growth. · The government subsidy included in the profit reached CNY 630 million. Through the acquisition of Kerry Logistics, the improvement of SF holding’s international business layout will continue to accelerate its operating capabilities for the foreseeable future. Therefore, the recovery of SF Holdings' profitability is expected to rise in the future.
SZSE:002352
by EqualOcean
Increase in Revenue with Decreasing Net Profit GM Motors Q3 2021The automaker has been expanding its global layout during the past quarter of 2021 and has entered the Egyptian, Bruneian and European markets. During the third quarter, Great Wall Motor announced its target of selling 1 million vehicles overseas in 2025. The revenue of the firm increased 10.13% year-on-year to CNY 28.86 billion. Operating income was CNY 28.86 billion, a year-on-year increase of 10.13%. Net profit was down 1.72% year-on-year to CNY 1.41 billion. From January to September 2021, the automaker achieved a total operating income of CNY 90.79 billion, a year-on-year increase of 46.11%, and a net profit of CNY 4.94 billion, up 91.13% year-on-year. For the first three quarters this year, Great Wall Motor added that the company witnessed a 29.9% increase in new car sales versus the previous year to 884,000 vehicles. From January to September, GWM sold 98,000 vehicles outside China, soaring 136.3% compared to a year ago, accounting for 11.1% of the company's total vehicle sales. Great Wall Motor's performance in the capital market has also improved significantly. As of the close of October 29, the company's A-share stock price has reached CNY 68, an increase of 82.65% from the closing price on December 31, 2020. The market value of the firm has reached CNY 628.1 billion, ranking second among Chinese automobile companies.
HKEX:2333
by EqualOcean
Midea Announces the First 3 Quarters' Financial Results for 2021For the first three quarters, the domestic revenue increased by 24.7% and the overseas revenue increased by 15.51% compared with the same period last year. According to Midea's financial results for the first three quarters of 2021: - The revenue increased by 20.57% to CNY 261.342 billion, and net income attributable to the parent company was CNY 23.455 billion, with an increase of 6.53% year-on-year. Among them, Q3 revenue achieved CNY 87,532 million (up 12.66% YoY), while the net profit attributable was CNY 8,446 million (up 4.4% YoY). - The company's domestic revenue increased by 17% in the third quarter of 2021, while overseas revenue increased by 6.4%. By the end of September, the company had added more than 36,000 overseas private label outlets for the whole year. - The net cash flow from operating activities was CNY 27,897 million, with an increase by 11.52% compared to the same period last year, while its own capital amounted to CNY 128.1 billion (up 2.4% YoY). - The company's research and development expenses amounted to CNY 8,765 million, showing a year-on-year increase of 30.51%. - The online and offline shares of the domestic air-conditioning market are 34.8% and 35.8%, respectively. - The online and offline shares of washing machines are 35.2% and 27.5%, respectively. - The online and offline shares of refrigerators are 18.6% and 14.5%, respectively. Founded in 1968, Midea is a global technology group covering five business sectors. It has about 200 subsidiaries with more than 60 overseas branches and 10 strategic business units, whose products and services benefit more than 200 countries and regions around the world for over 400 million users. It was listed on the Shenzhen Stock Exchange on September 18, 2013. As of the close of trading on October 29, 2021, the company's share price edged up by 0.95% to CNY 68.77, with a market capitalization of CNY 480.2 billion, ranking first in the domestic white home appliances industry.
SZSE:000333
by EqualOcean
$NIO | WEEKLY WATCHLIST 11/1After an extremely frustrating and long corrective phase, I believe we are nearing the end of this. Looking for a dip to complete the wave 2 retracement and a very buyable zone from $35-37 as long as it holds. I see this as a major bottom and wave 3 to proceed with minimum target at $48.57. I still hold 2023 calls and will continue adding on dips (including this one if it plays out). My long term view of NIO is quite bullish and I believe it is lagging quite a bit against the rest of the EV sector. Don't be surprised to see this at new ATHs in 2022.
NYSE:NIOLong
by StonksSociety
1
Wuxi Apptec Embraces a More Health-Conscious ChinaAfter a booming year in 2018, Wuxi has yet to slow down. The following article analyzes the success of Wuxi and its shortcomings. China has released a number of new policies to help make the biopharma industry more transparent and efficient. By 2020, China had full coverage of medical service systems in rural and urban areas; 90% of residents in China can access the nearest medical point within 15 minutes. Wuxi Apptec has achieved consecutive quarter-over-quarter revenue growth for 13 quarters since the first beginning of 2018 (other than the first quarter of 2020 due to Covid-19). Wuxi PharmaTech, a contract research and manufacturing organization, was founded by Dr. Ge Li in 2000. The company changed its name to Wuxi Apptec after Wuxi acquired Apptec Laboratory Services Inc., a US-based medical device and biologics testing company. Wuxi was delisted from the NYSE after going private, with a valuation of USD 3.3 billion. The company has thrived under the leadership of Ge Li as Wuxi went from just 4 people in 2000 to over 28,000 employees in 2021. Ge Li claims that the company's main mission is to provide high-quality research services at a low cost. Wuxi has been growing rapidly since its inception, but we expect more imminent growth as China rolls out new healthcare-related policies and people become more health-conscious. Although the thriving healthcare market will inevitably attract new entrants that may evolve into strong competitors, Wuxi Apptec is highly likely to withstand the competition. Rising health awareness While brands like GNC and The Vitamin Shoppe helped raise healthcare awareness in the west, China was lackluster in this department and put little emphasis on personal well-being. Over the past decade, however, China's healthcare industry grew exponentially as society's attitude towards healthcare took a massive turn. The rising disposable income has led to the paradigm shift from being reactive consumers to proactive consumers. 84% of 3,000 respondents in China, in a survey conducted by Ipsos, reported that they are consciously making health-oriented decisions now. According to a report by McKinsey, the global wellness economy, accelerated by COVID-19, has an estimated market size of USD 1.5 trillion as of 2021 with 5% to 10% annual growth each year. China reported the highest share of wellness spending online out of the six countries, including Japan. Monosodium glutamate (MSG) is a controversial flavor-enhancing ingredient for its possible adverse effects after consuming more than 3 grams. Major MSG producer Henan Lotus is experiencing a steady decrease in sales as the Chinese population, once the largest consumer of MSG, is becoming more health-aware. Bain and Kantar Worldpanel also reported that sales of chewing gums have also decreased by 14% in the last two years, chocolate sales decreased by 6%, and confectionaries decreased by 4%. Favorable policies President Xi announced the initiation of the Health China 2030 (HC 2030) plan in October 2016. The main goals are to prioritize healthcare on a national level, spur innovations in the healthcare industry, promote scientific development, and bring equal access to public health services to all parts of China, especially the country's rural areas. HC 2030 also aims to establish and enhance social policies and institutional systems regarding health, cultivate a healthy environment and intensively promote the advancement of the healthcare industry. Companies in the healthcare industry have seen something of a boost in their revenue as the healthcare trend continues. By 2020, China had extended medical service coverage so thoroughly that 90% of residents could access the nearest medical point within 15 minutes. The medical cost growth was also curbed as 2020 marked the lowest proportion of residents' medical expenditure in 20 years, with 27.7%. Government policies have favored the development of the healthcare industry in China, especially that of Contract Research Organizations (CROs) and Contract Development and Manufacturing Organizations (CDMOs). In 2015, China had a backlog of over 20,000 drug registrations pending review and approval. The National People's Congress (NPC) held a meeting to discuss the reformation of the drug registration system. As a result, China Food and Drug Administration (CFDA) regulators received more resources than in the past, and the government launched the Market Authorization Holder Program (MAH) to make it easier to bring new drugs to the market. Furthermore, the Review and Approve Process (RAP) was simplified and made more efficient. For example, high-quality generics for orphan conditions with robust bioequivalence data will be eligible for expedited review during the CFDA's regulatory process. As of July 2021, a rare disease database (Orphanet) has recognized over 6,000 diseases, propelling pharma companies to roll out more medicine that will undergo a newly implemented process. CROs and CDMOs benefit from these new policies as pharma companies look to increase their research output to develop and produce new drugs. The expedited RAP incentivizes companies to roll out new drugs to cope with the increasing number of orphan diseases recorded. The unique advantage Wuxi Apptec is a "fully integrated contract research development and manufacturing organization with the ability to provide one-stop services that offer its clients assistance in discovery, development and manufacturing service demands." The wide variety of services that Wuxi covers allows the company to embrace the soaring healthcare market in China. Wuxi Apptec expects to extend its impact further as the global new drug R&D outsourcing market snowballs. However, Wuxi must persist in its R&D investment to fare well against companies with more flexible cash flow and new entrants with newer technology. With a boom in customer demand, China's pharmaceutical R&D and manufacturing service market is expected to maintain its current high-speed growth. Wuxi's unique competitive advantage comes from its cost-efficient services. As of 2021, Wuxi has over 28,000 employees, most of whom are chemists, making Wuxi possibly the biggest employer of chemists in the world. Since the company has cheaper labor costs than the industry average, Wuxi can produce almost the same amount of research output for a fraction of the price (around 25% to 40% less than western companies' services). Additionally, policies such as the MAH, expedited reviews, and HC 2030 have encouraged pharmaceutical innovations in China. Wuxi can capture the rising demand from Chinese pharma companies with its rather high R&D efficiency. Although Wuxi may not have the financial strength of some significant pharma companies with in-house R&D departments, the company will retain its leading position as one of the most profitable R&D and manufacturing businesses in China. Financial metrics According to Wuxi's interim report this year, the company realized CNY 10.54 billion total revenue, a year-over-year growth of 45.70%. CNY 2.50 billion came from China, which represents year-over-year growth of 48%. This data showcases the company's ability to capture the rising healthcare tides and demands for research and innovations. 48% growth also marks the largest increase compared to the company's revenue growth in the US and Europe. Wuxi also has a 100% retention rate of its top 10 customers from 2015 to the interim of 2021. As of June 30, 2021, the company's new clients have contributed CNY 849 million in revenue. Frost & Sullivan published a market research report in June 2021, which ranked Wuxi Apptec first by market share in the China-based drug discovery CRO market, pre-clinical and clinical CRO market, and small molecule CDMO market. Bottom line The combined forces of new policies and rising healthcare awareness have put Wuxi Apptec in a prime position to consolidate its leadership in China. The company should remain profitable as long as it maintains below industry average labor cost, heavy investment in its R&D department and reasonable M&A strategies to help expand and improve Wuxi's services and operations. Given the recent regulatory crackdown on Chinese tech companies, Wuxi should tread carefully in its effort to capture a more significant share in the Chinese market. China's rapid growth in the healthcare industry bodes well for the nation, but what does it mean for its people? While the government poured resources into promoting innovations and development in the medical field, the affordability issue gained little attention. Although China has over 90% of residents with basic health insurance plans, it still poses a hefty paycheck for the average worker. Despite the rising wave of healthy living, China has to do more to provide sustainable healthcare. For the full article with the charts, please visit the original link.
OTC:WUXIF
by EqualOcean
Tesla's Record in Q3 Reflective of China's Solid EV FoundationDespite a great Q3 overall, Tesla in China sees demand reduce as competitors begin to catch up. Share prices for Tesla have soared to all-time highs after earnings and amidst reports of a 100,000-car deal with car rental company Hertz. Demand has not been the main issue for Tesla outside of China seeing that orders have backlogged out as far as May and prices on models have been raised. The global supply crunch has been their biggest obstacle to navigate so far. Tesla in China though is in fact seeing an isolated demand crunch while domestic firms are pouncing to shift demand in their favor. We believe Tesla's record revenue of USD 13.76 billion in Q3 is not only reflective of Tesla's success but China's impactful support. The earnings report states, "For all of Q3, China remained our main export hub. Production has ramped well in China, and we are driving improvements to increase the production rate further." Not only are a significant amount of all Tesla models produced in Giga Shanghai, but Ningde-based CATL already has a contract to produce batteries for Tesla until 2025. CATL also signed a 10-year contract with Great Wall Motor in June of 2021. EV's are getting a foothold in China the way internal combustion engine vehicles were in Japan around the 90s. Domestic brands are gaining on Tesla's share of the Chinese EV market Sales in China leaped nearly 50% in August but only 20% in September for Tesla. Their market share of BEV sales has declined from 17% in April to 11% despite the steep price reduction for the Model Y SR+ and amidst intense media scrutiny. BYD is now atop them with 14% of BEV sales in China. The domestic brands are clearly gaining consumers' favor in China as of Q3 sales for BYD, Xpeng, and Li Auto nearly tripled and NIO's sales doubled all year-over-year(YoY). Going forward, Tesla still generally expects to “achieve 50% average annual growth in vehicle deliveries” over a multi-year horizon which is quite impressive. In the world's biggest EV market, however, it does seem demand for Tesla is declining at least relative to the competing rivals. Even if Tesla can recuperate some consumer appeal, investors should expect Chinese automotive firms to continue to gain ground assuming supply can keep up in scaling for 1.45 billion people. More players both new and old Nonetheless, as other emerging players begin to throw their hat in the ring like Xiaomi, Evergrande Auto, as well as international makers like Volkswagen and Toyota, there could be less room for Tesla to dominate demand. Especially if the market's fragmentation gets remedied and China solidifies its leaders of the industry, the winners of this race will be the Chinese investors. NIO has already started selling its ES8 electric SUV in Norway, challenging Tesla outside of China for the first time and has targeted Q4 of 2022 for launch in Germany. Tesla expects production up and running at Giga Berlin by the end of 2021. Legacy automakers will certainly be Tesla’s biggest global competitors because of high client adhesiveness as well as industry expertise. Within China, however, it is likely that there is only so much space in the EV market for successful international firms to squeeze in with the nationally favored domestic firms. Since Tesla has the technological prowess and resilience as a company to continue to spearhead the global EV market, it should end up in the long run as China’s premier foreign producer of EV’s. Though China isn't a completely autarkic environment, investors should still expect a sturdy path forward for Chinese EV’s to grow profitable and successful. Though there are limitations in the current global economic climate, those who can weather the storm will be rewarded. The bottom line Tesla has benefitted competing firms with good influence and transparency as well as a commitment to growing China's EV market. In 2021 though, Tesla's declining position could be attributable to issues with recalls to refine autopilot systems as well as other negative sentiments from the trade war. The US does claim China unfairly favors its domestic producers and contributes to accelerating the negative press. Investors should expect that regardless of legality in their execution, China will aggressively promote their EV makers at home and abroad. Even if Tesla overcomes these road bumps in navigating this massive foreign market, there should and likely will be enough room for the best EV firms in China to grow and flourish. After all, Tesla is likely to grow too big to ignore especially in the world's current hottest EV market. But China's more urban-oriented driving habits do favor domestic producers of mini EV's. With that being said, these infantile EV makers have a lot on their side and will cater directly to the needs and appeal of Chinese consumers. For the full article with the charts, please visit the original link.
NASDAQ:TSLA
by EqualOcean
Luckin Coffee Settles USD 175 Mn Class Action Lawsuit Over FraudLuckin denied wrongdoing in agreeing to settle while its U.S.-based lawyer did not immediately respond to media requests for comment on Tuesday. After their founding in 2017, Luckin Coffee's hype and share price peaked around early 2020 as they broke out to rival global coffee icon Starbucks. Then Muddy Waters Research dropped a bombshell claim of falsified revenue on behalf of the company to inflate share prices. The internal probe found that its chief operating officer and other staff fabricated about USD 310 million of sales in 2019, or about 40% of annual sales projected by analysts. The SEC stated that Luckin raised more than USD 864 million from equity and debt investors while the fraud was taking place. The Securities and Exchange Commission consequentially delivered accounting fraud civil charges and fined Luckin USD 180 million last December. Then came the fall from grace. Within two months their share price sank more than 80%. Shares are now trading around USD 15 as the stock is up an impressive 220% in the past year. Their unaudited financials for the first half of 2021 show that they achieved a 16% store-level profit margin and that net revenues increased over 106% resulting from higher net selling prices and an increase in items sold. They've still managed to achieve positive revenue growth amidst all of the settlement fees and negative publicity. Luckin Coffee also still manages to operate around 5,259 stores in China maintaining a firm presence. Things should be looking up for Luckin as the clouds clear while investors can capitalize on their refocus.
OTC:LKNCY
by EqualOcean
XPeng to Launch 800v, 480kW Overcharge... and Super Energy Storage Station. The CEO of XPeng Inc. predicted that the penetration rate of new energy vehicles would reach 50% in 2025. On October 24, Xiaopeng He, CEO of XPeng Motors, said that XPeng hopes to be the first 800V high-voltage platform equipped with silicon carbide chips in mass production, aiming to achieve the endurance of 200 kilometers after charging for 5 minutes. Meanwhile, XPeng will also launch the supporting 480kW high-pressure overcharge pile. The energy storage station designed by XPeng can meet the overcharge of 30 vehicles at the same time. In other words, XPeng will launch three schemes in terms of energy supplement, that is, 800V, 480kW overcharge and Super Energy Storage Station, respectively. In addition, XPeng also announced its exploration progress in electrification and intelligence. It is reported that it's Xpilot 2.5 accounts for 89.74%, and the activation rate of version 3.0 with high-speed NGP is 59.29%. He pointed that intelligent-assisted driving is not automatic driving, where man-machine driving will be an inevitable choice for a long time. It is worth noting that Xinzhou Wu, vice president of XPeng's auto-driving business, said that the urban NGP function is expected to be launched in the first half of 2022 and will be tested on some roads in the first batch of cities. In January 2021, XPeng's NGP was officially opened to users. Users can realize automatic navigation-assisted driving from point A to point B based on the set navigation route. The high-speed NGP function realized by XPeng P7 can cover most domestic expressways and some urban expressways. Apart from the functions of ACC adaptive cruise, LCC lane-centering assistance, ALC automatic lane change assistance, some other functions include but are not limited to automatic lane change, automatic speed limit adjustment, overtaking at night, ramping in, and out.
NYSE:XPEV
by EqualOcean
BYD Reportedly to Raise Battery Prices by Over 20% Next MonthBYD's reasoning is that the raw materials for lithium batteries have been rising due to market changes, power restrictions, and production limitations. BYD, China's largest new energy vehicle company, is also the second-largest local supplier of power batteries after CATL. As costs rise, the company is said to be raising the price of its batteries. BYD will raise the unit prices of its battery products, including CO8M, by no less than 20 percent from November 1, the Securities Times said Tuesday, citing a document. BYD argues that the raw materials for lithium batteries in 2021 continue to rise with the price of cathode material LiCoO2 rising by more than 200 percent and electrolyte prices rising by more than 150 percent. Material supply continues to be tight, resulting in a significant increase in comprehensive costs, according to the Securities Times. Since November 1, BYD and its customers will sign new contracts for new orders and implement new prices, and orders for old contracts that have not been completed will be closed and canceled, according to the report. Local media cls.cn then quoted BYD insiders as saying that the information is currently being verified. It's unclear whether CO8M batteries are power cells used in new energy vehicles, and public sources can't find an explanation of the term. BYD is also one of the world's largest suppliers of batteries for cell phones and ranks second in China's power battery market. Data released earlier this month by the China Automotive Battery Innovation Alliance showed that BYD's installed power battery capacity in China was 14.73 GWh from January to September this year, with a 16 percent market share. CATL's installed capacity from January to September was 46.79 GWh, ranking first with a 50.8% market share. It is worth noting that BYD's power cells are mainly supplied to itself and have been used in some other brands' new energy logistics vehicles since 2018. This year Ford Mustang Mach-E and some FAW Hongqi models started using BYD's power cells. In May, the Digi Times reported that with the price increase of China-made Tesla Model 3, rumors said CATL might follow with a 10 percent price increase. The report mentioned that LFP raw material prices have jumped 50 percent this year, but battery suppliers have taken on the pressure of the price hike themselves for fear it would lead to lost orders. Citing sources, the report said most LFP battery makers want CATL to take the lead in raising prices in response to the steep rise in LFP material costs, making it easy for the industry to follow suit. CATL later responded that the report that its LFP battery offer would be raised was not true. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
OTC:BYDDY
by EqualOcean
Alibaba Sheds USD 344 Bn Since October 2020Following the exile of Jack Ma, shares of BABA tumbled down from all-time highs a year ago. No company has incurred more of a loss in market capitalization than Alibaba in the last year. None have come close to the large figure. Ever since Ma publicly expressed forthright discontent with the financial system of China, investor sentiment around the successful giant has dwindled. The price of shares consequently halved into late September and are still fairly dormant improving to USD 173. Jack Ma has recently been photographed in the Netherlands browsing agriculture tech after his public reappearance in Spain a week ago. Shares have rallied around 7% ever since. The company's presentation of a new server chip on October 18 has further helped improve share price. The chip is based on advanced 5-nanometer technology designed to support the company's growing cloud computing business. Alibaba will likely report earnings on November 4th where investors can expect strong business growth, and another revenue beat. Though there are still considerable risks that investors should not ignore, Alibaba should still be a solid pick for the coming years.
NYSE:BABA
by EqualOcean
USA. Taxes. China. Crisis. Electricity. Europe. BitcoinThe world leaders have begun to create a synthetic crisis. This crisis is far scarier - the energy crisis. It is not an accident that coal-fired power plants in Great Britain were not just shut down or canned. They exploded it without any chance to rebuild. It gave the island 44% of its generation in 2012. Britain is developing a plan to build a 3,800 km long transmission line off the coast of Morocco. There will build wind farms. They will be able to meet as much as 5% of Britain's electricity needs. By the way, they will lose up to 30% of the generated electricity in the submarine cables. All countries in whose territorial waters the cable runs will have to pay a constant fee. There has never been a more costly energy project on the planet. Last year, in 2020, China permanently abandoned imports of coal from Australia, which covered 25% of the Celestial Empire's electricity generation. Most interestingly, China has not sent proposals to, for example, the Russian Ministry of Energy to organize coal exports. It simply increased its consumption of liquefied gas. The result was not long in coming. The largest factories all over China receive a schedule of power outages. The schemes include 2 in 2 or 1 in 3 days. The most extensive electricity consumers are the industrial companies. They will work only 3 or 4 days a week. Orders from major technology companies are in jeopardy. It is the most trivial issue we have. The fact is that almost all manufacturers in the world in mechanical engineering, electronics, pharmaceuticals, light industry, and the food industry are dependent on component supplies from China. They couldn't invent anything better than an energy crisis in China to disrupt global supply chains, production processes and provoke mass unemployment and hunger. There are two global dangers in the world right now. The first is the bankruptcy of the Chinese mega-developer Evergrande, which threatens to bankrupt dozens of businesses in China and even more investment funds in the United States. The second is a default by the U.S. federal government, which could occur soon. So far, there is not a hint of consensus among congressmen (Democrats and Republicans) about the issue of raising the limit of the federal budget borrowing by $3.5 trillion. Such a decision would automatically be associated with a bill to change the taxation rules in the United States. Biden signs a government funding bill to prevent a shutdown. So-called unrealized gains will now be taxed. For example, you own a house for $400,000, and last year it went up in value to $600,000. In that case, you immediately owe $60,000 to $100,000 in taxes. So if you don't currently have that money, you will need to sell your house to pay your taxes. The same goes for cryptocurrency owners. Let's suppose that you have Bitcoin in your portfolio, and it has grown in value by 300% during a year. You don't want to sell it. You are waiting for the price of $300k per BTC. In case of this law is passed, you have to pay taxes and have to sell half of your bitcoins to pay taxes.
OANDA:SPX500USD
by EXCAVO
34
Volkswagen's EVs Taking Off, May Surpass NIO's Market Share Volkswagen's EVs Are Taking Off in China, May Soon Surpass NIO's Market Share On October 22, SAIC Volkswagen ID.3 was launched in the country at CNY 159,888 to CNY 173,888 per vehicle. Volkswagen China achieved a milestone of 10,000 EV sales in September 2021. We dissect Volkswagen's EV sales through three perspectives: product, production and marketing. A solid EV lineup, concrete production capacity and improved marketing have made VW one of the fastest legacy brands shifting to an EV company status. We expect VW to surpass NIO and Xpeng's market share very soon but remain shy of Tesla or BYD. The global chip shortage has hurt the auto industry, with companies at the risk of cutting more production. Electric vehicles built on more technology attributes that need more chips should have been hit badly. However, Volkswagen China delivered stellar EV sales in Q3, which grew from 3,415 units in June to 10,126 units in September, eclipsing NIO and Xpeng's growth rates in the same period. As an EV brand once underrated by some Chinese consumers, how did the company lift its sales so quickly? This article will rewind Volkswagen's EV story in China and give it an outlook. Entering the mainland market Before entering China, in 2020, Volkswagen Group sold 56,500 ID.3 in Europe during the final four months, which proved ID's strong product power. One year later, VW started to consider launching and manufacturing special ID models in China. According to an official announcement, Volkswagen Group (China) rolled out two new IDs based on MEB's innovative modular electric drive platform at the end of 2020, including pure electric models FAW-Volkswagen ID.4 CROZZ and SAIC Volkswagen ID.4 X. The two models are larger than ID.3 and tailored to Chinese consumers. They had started production in Foshan and Anting factories, and the products would be launched in early 2021. These two plants have a total annual production capacity of 600,000 vehicles. So, Volkswagen is one of the earliest legacy car makers that put EVs into production in the Chinese market. With a concrete production line, the company began to pre-order ID.4 in China at the beginning of 2021. Compared with Tesla, Xpeng and NIO's lineup, some argued ID series were uncompetitive for shorter driving ranges, lacking intelligent features. But VW China has refreshed people's minds with spectacular sales growth. In the beginning stage of selling, ID didn't perform well. The auto insurance data showed April saw 2,140 units sales of ID.4, which is tiny for the auto behemoth. Later on, VW adjusted its policy with the dealership network to stimulate them to sell more EVs, set a new team to deal with NEV sales and trained a special EV sales team to find the momentum. Another critical initiative Volkswagen made is an omnichannel selling strategy. ID models are sold in the existing 4S stores and shopping malls. The shopping mall stores are invested and built by existing dealers, and there is no directly operated shop of OEMs. The company learned new retailing strategies from Tesla and NIO's success using multi-channels to acquire traffic. Volkswagen is opening EV-only stores in more malls, namely through ID. Stores. There are dozens of stores in Shanghai. It is also expanding into other megacities. Following more ID models exhibited in shopping malls and 4S stores, ID saw a surprising increase in sales, which broke 10,000 monthly sales six months after delivery. By comparison, it cost NIO and Xpeng two years. Will VW keep growing sales fast in the future? We expect VW to acquire a larger market share in the following period. We judge the future delivery range of an NEV company from a perspective of the product, production capacity and marketing. ID models' product has won EU consumers' acceptance and should be accepted by the Chinese. The production capacity may be a problem, but Volkswagen has a one-million-global-EV-sales target this year, which was set when the firm was well aware of the supply issues. It ought to prioritize new energy vehicles production, and the inventory purchased at the end of 2020 can be used for some time. So, sales should continue to rise, but supply chain issues will impact capacity. Besides, the popularity of Volkswagen electric cars is increasing as more shops are built. By the end of this year, monthly sales are very likely to set a new record again. To discuss the sales 'ceiling' of ID, we have to benchmark it to the industry leaders such as Tesla and BYD. After one year of mass delivery in China, Tesla gained its EV market share between 10-15%. BYD is shifting towards a full-EV brand and takes around 20% of China's NEV market. We believe Volkswagen is far from catching up with these two companies for being a legacy player but can surpass NIO and Xpeng's respective market shares in a year based on recent sales momentum. In a nutshell VW's solid EV product, concrete production capacity and omnichannel sales system made it one of the fastest legacy brands to complete an 'EV shift.' The sales momentum hints its future delivery will keep jumping. Although we don't think the company will quickly transform into an EV leader like Tesla in the premium segment or BYD in the lower price bands, it is very likely to grow its market share to overtake NIO or Xpeng's in the short run. For the full article with the charts, please visit the original link.
OTC:VWAGYLong
by EqualOcean
Alibaba Group Looks like on the daily timeframe, we are on the top side of the MAcd which entails that we may be at a level to although on the weekly we are oversold, the daily looks like there "may" and i mean "MAY" be a small pullback to the previous low (38%) before it continues to the upside. BABA won't and can't be held back for long before it reaches its previous high up to 38 -61% of that previous high on the weekly time frame. This the Google of China and Munger believes in them heavily. I'll follow! He's my mentor
NYSE:BABALong
by Redimere_91
PKK to $17-18 in NovemberFollowing a rocky start after an uplisting and delisting from NASDAQ, PKK has been checking all the boxes in every other metric and has been hitting it's bull flag targets since the first run from 35 cents. Despite the pullback after losing the NASDAQ listing, we retraced only a little more than the historical 57% after every bull run and the hit we took after the de-listing ended up basically just printing another flag. Golden cross on daily two days ago as well as crossing over the 200MA on hourly timeframe since the beginning of the pullback and yesterday and today we are testing the top of the band with uplisting news expected today. Looking for $17-18 by end of November.
CSE:PKKLong
by Keeegs
1
Alibaba Cloud to Launch New Data Center and AI-Powered AssistantAn exciting day arrived for Alibaba Cloud as the company unveiled its new meeting assistant AI and announced the launch of a new data center planned for next year in South Korea. The company is trying to end the year strong as it continues to roll out more innovations and future plans. Alibaba Cloud announced the launch of its first data center in South Korea in the first half of 2022. The new data center will offer its clients in South Korea more reliable and secure cloud services as well as highlight the company's effort in its commitment to empowering South Korean businesses' digitalization. Unique Song, the regional general manager of Japan and South Korea, said that "South Korea is a strategic market for Alibaba Cloud and we are building the new data center to address the increasing demand for cloud infrastructure services from local clients. Together with our global data network, we will continue to help our South Korean customers heighten their pace of digital transformation and global expansion through the latest cloud computing technologies and ecosystem support". Alibaba Cloud also unveiled the brand-new AI-powered meeting assistant, Tingwu, and a new version of the company's cloud computing. These new enterprise solutions aim at the growing popularity and surging demand of working remotely. Tingwu was developed by the global research initiative Speech Lab of Alibaba DAMO Academy. The meeting assistant is able to convert spoken words during a meeting into writing with 98% accuracy. Tingwu can also distinguish up to 10 meeting participants' voices and can handle English, Mandarin and 14 other Chinese dialects as well as generate meeting summaries and highlights.
NYSE:BABA
by EqualOcean