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XPeng Says Its Supercharging Stations Reach 400XPeng expects to expand its supercharging stations to dozens of cities, including Taiyuan, Tangshan, Nantong and Luoyang, within the next three months. XPeng Motors said Tuesday it put 102 new supercharging stations into operation in August, bringing the total to 400, covering 101 cities in China. Sixteen of those superchargers are located in highway service areas, bringing it to 27 superchargers in highway service areas, XPeng said. The company added 36 new destination charging stations in August, bringing the total to 81, it said. To date, the total number of XPeng-branded supercharging stations and third-party supercharging stations where users can enjoy a certain amount of free charging benefits is 1,596, the company said. In comparison, XPeng's local counterpart NIO put 87 new battery swap stations into operation in August. It also added 56 supercharging stations and 73 destination charging stations in August. In addition, NIO added one NIO House, 13 NIO Spaces, and three NIO Service Centers in August. As of September 13, NIO had 445 battery swap stations, 300 fast charging stations, and 502 destination charging stations, according to CnEVPost database. XPeng announced on July 12 that it is reducing the free charging allowance of 3,000 kWh per year offered to subscribers to 1,000 kWh per year as of August 1. As XPeng customers continue to expand, the reduction in the free charging allowance is to ensure that the XPeng supercharging system can provide better and sustainable replenishment services to customers, the company explained, as quoted by sznews.com. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NYSE:XPEV
by EqualOcean
Li Auto, XPeng, NIO Top Insurance RegistrationsThe NEV sales volume accounted for 17% of total new car sales in the month. Li Auto had the highest number of insurance registrations among China's new car makers in August, with 9,394 units, according to a table released Saturday by Sina Auto based on data from the China Automotive Technology and Research Center (CATARC). XPeng Motors came in second, with 6,945 insurance registrations in August, followed by NIO with 6,476. Earlier this month, Li Auto released figures showing it delivered a record 9,433 Li ONEs, the company's only model, in August, up 248 percent year-over-year and up 9.8 percent from July. XPeng said it delivered 7,214 vehicles in August, up 172 percent year-over-year but down 10 percent from July. NIO said it delivered 5,880 vehicles in August, up 48 percent year-over-year and down about 26 percent from July. The CATARC figures are based on insurance registrations for vehicles and are closer to true retail sales each month, as vehicles must have insurance in place and in effect before they can be licensed. Neta Automobile ranked fourth with 6,038 insurance registrations in August. The company previously said it delivered 6,613 vehicles in August. Leap Motor ranked fifth with 4,777 insurance registrations in August. The company previously said it delivered 4,488 vehicles in August. WM Motor had 3,144 insurance registrations in August, the CATARC data show. It has not yet released sales figures for August. Arcfox, the BAIC-owned EV brand, had 856 insurance registrations in August, compared with 642 for Seres, which sells cars in partnership with Huawei, 469 for HiPhi and 408 for Dongfeng Motor's premium EV brand Voyah. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NASDAQ:LI
by EqualOcean
Tesla Hikes Model Y Performance Price in China by USD 1,550The company's CEO Elon Musk said to roll out an entry model in 2023. Tesla announced on Weibo on Saturday that the starting price of the Model Y Performance in China has been raised by CNY 10,000 (USD 1,550) to CNY 387,900, with those who have previously reserved unaffected. The Securities Times quoted a Tesla China public relations source as saying that the price increase was mainly due to fluctuations in manufacturing costs. On January 1, Tesla announced the official launch of the China-made Model Y and the new Model 3. The Model Y Performance starts at CNY 369,900, down by CNY 165,100 from the previous price of CNY 535,000. The Model Y Performance has not been delivered, and Tesla's website previously showed the version was expected to begin deliveries in the third quarter of 2021. After Tesla raised the price today, the website shows deliveries are expected to begin in the fourth quarter. In May, the price of the Model Y Performance was raised from CNY 369,900 to CNY 377,900, and in August, the model went from pre-sale "pending regulatory approval" status to on-sale status. The China-made Model Y Standard Range and Long Range versions remain unchanged at CNY 276,000 and CNY 347,900 respectively. Interestingly, a Chinese Tesla owner said on social media Friday that his Model Y received a push from Tesla about a software package to improve acceleration performance. The updated information shows that the owner can shorten the vehicle's 0-100 km/h acceleration time from 5 seconds to 4.4 seconds by paying CNY 14,100 (USD 2,190). The owner did not specify which version of his Model Y is, but this should be the long-range version with dual-motor all-wheel drive, as Information on Tesla's website shows that only that version has a 0-100 km/h acceleration time of 5 seconds. In comparison, the Model Y Performance has a 0-100 km/h acceleration time of 3.7 seconds. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NASDAQ:TSLA
by EqualOcean
FITCH NEWS - TRADABLE MAINLAND REAL ESTATE INDEX - HKG - DAILYCool down on big news as we can see, by zooming out, that the increasing price have found strong resistance and started a durable wide range. The range is clear in this chart, the top is illustrated by the blue line and the bottom by the black line. The bleu line is a resistance tested multiple times , repeat failed attempts leading to a price fall and possibly weakening the uptrend chances believes. The red arrow shows probably where the biggest failure has happened. Mega high volumes and a nice wig. The black line represents a probably super strong support. Beware of fake breaks, it has happened in the past. The little dotted line shows possibly how the price is evolving trying to get out of the range. Fitch news has created an interest about what impact this could have globally. For the moment zooming out we can see that it is just lot of noise for not much as this level have been reached several times before and was expected. Now it is probably more convenient to observe this black line level and see what happen. High volumes involved would show a clear direction. Daily, Weekly, monthly : yes, but not to be observed in hourly. ______________________________________________________ Thanks for the like and shares, really appreciated! This idea is not a financial advice but just a sentiment.
SSE:H11143
by Diallo_Charts_Ideas
iQIYI Achieves Steady but Slow Growth in Q2 2021China's online entertainment service company iQIYI released its unaudited Q2 2021 financial results on August 12. The revenue growth was rather unimpressive, while the company has been implementing strategies around expanding market presence, diversifying content, and securing a larger user base in light of future growth. iQiyi (IQ:NASDAQ) is an online entertainment company in China, providing a variety of video streaming services and premium content to worldwide users. The company's deep-learning-based predictive algorithms utilize third-party content to build content libraries catering to the diverse tastes of its users. A glance at the Q2 2021 financials According to iQIYI's unaudited financial results, the company's revenues reached CNY 7.6 billion in the second quarter of 2021, a 3% YoY increase. In contrast, Tencent's total revenue achieved a year-over-year increase of 23% during the same quarter. Total subscribing members reflected a slow growth as well, increasing 106.2 million by June 30, 2021, up only 1.2% year-over-year. However, the company's operating loss and diluted net loss showed a decline from the previous year. Specifically, during this quarter, iQIYI's operating loss was CNY 1.1 billion and its operating loss margin was 15%, compared to CNY 1.3 billion and 17% in 2020, respectively. The decreased net loss partially resulted from iQIYI's diversified content and latest movie series, including theatrical, S-rated network, and original movies under the Premium Video On Demand (PVOD) model. For PVOD movies distributed through a paid subscription, the company earned 42% of revenue share despite other content providers. The content distribution revenue did not have positive financials compared to the other two revenue streams, this part dragged down 20% from the same period in 2020 due to fewer barter transactions and increased cash transactions that caused offsets. Barter transactions determine the value of content revenue estimated by the company's internal management. iQIYI's expenses also played a critical role in balancing the second quarter's financials. Specifically, the costs were flat compared with the same period in 2020. Unlike the first quarter of 2021, when the company's content costs had an 8% increase from the same period in 2020 due to the decline of licensed content cost, the second quarter returned to the flat level. The R&D and general expenses also had a slight year-over-year increase of approximately one-to-two percent in this quarter. The total other expenses were also driven higher by the increased interest expenses in various financing activities. Equipped with core competitiveness in the online entertainment industry, iQIYI is also empowered by proprietary technologies to curate captivating content for users and stimulate a large-scale paid content subscription business in China. In January 2021, iQIYI's VR division announced the completion of a Series B funding round led by Yitang Changhou Fund and Fresh Capital, setting the record for the largest single round of funding in China's VC sector since 2020. iQIYI's disciplined strategies Yu Gong, the Chief Executive Officer of iQIYI, explained that the second-quarter results were largely in line with the company's expectations. Although the growth was not significant, he stated that the increased number of subscribed members was driven by the hit original dramas launched during this second quarter, providing some positive operating metrics. Meanwhile, iQIYI launched its Lite app targeting lower-tier cities in China and overseas markets, including Southeast Asia. Overviewing China's Internet demographics, the emergence of live streaming and short-to-medium video platforms, like Douyin and Kuaishou, have cut a big share of the long video market. To encounter this challenge, the long-video streaming service, iQIYI, decided to increase the penetration rate of suburban users to develop new markets. In this way, the company aims to improve user retention by securing users with low-cost phones. Since launching this app in 2019, the company has seen rapid user growth. By the second quarter of 2021, this app's peak DAU exceeded 1.3 million, with over 1 million average weekly daily active users. The company's strategies have placed membership, online advertising, and content distribution services as three primary revenue streams. In that regard, member services revenue was CNY 4 billion, flat compared with the last year. Online advertising, on the other hand, had shown a 15% increase from the same period last year, driven by the sustained rebound of brand-advertising budgets amid the macroeconomic recovery after the coronavirus pandemic in China. With the increasing penetration rate of digital technology among Gen X and Gen Z populations in the country, the company is expected to see new consumers using its subscription services. In a nutshell iQIYI's 2021 Q2 financial results showed the company's ability to carry on growth momentum in attracting more users based on an expanded content portfolio and enlarging user base. The company's revenue growth and reduced year-over-year net loss have displayed a trend of slowly improving business performance.
NASDAQ:IQ
by EqualOcean
Tencent Responds as CCTV Exposes the Account Renting ProblemSo far, the gaming giant has sued or sent letters to more than 20 account trading platforms and several e-commerce platforms, demanding them to stop all relevant services. The rates for account renting services for Honor of Kings – which usually cost CNY 33 per two hours – have been emerging on the Internet and, in response, Tencent Game, the gaming sector under the tech giant Tencent – developer of the MOBA game Honor of Kings – claimed that account leasing and selling seriously damaged the game's real name system and protection mechanism for minors. By far, having sued or sent out letters to more than 20 platforms, it demanded a full stop of all relevant services. On August 30, 2021, the National Press and Publication Administration issued a 'notice' to prevent minors from falling addicted to online games. The 'notice' states that all online gaming enterprises can provide minors, on Friday, Saturday, Sunday and legal holidays only, with one-hour services max (specifically from 20:00 to 21:00) and offering online gaming services to minors in any form at any other time is prohibited. Yet, on the evening of September 6, CCTV, the state-controlled outlet, outlined in its news broadcast how a grey industrial chain has emerged on the Internet that rents and sells game accounts, which enables the minors to play online games without restrictions. On the account renting platforms, users can trade accounts of a variety of popular games including Honor of Kings and PUBG. So far, the owner of Honor of Kings has called on relevant departments to issue corresponding laws and regulations to strictly control the account leasing and selling problem. Despite the issuing of the 'notice', according to surveys, the policy did not have a material impact on the revenue of gaming companies. Previously, Tencent disclosed in the 2021 interim report that players under 16 accounted for only 2.6% of the total game revenue, of which only 0.3% came from players under 12. Analysts from Jefferies Group predicted that about 5% of Tencent's game revenue came from minors under the age of 18. In other words, if the game business accounts for about 60% of the gaming tycoon's total revenue, the new regulation's impact would be barely 3%.
OTC:TCEHY
by EqualOcean
Dada Posts Strong Q2 2021 Results The Chinese local on-demand delivery and retail platform has announced its unaudited financial results for the second quarter, maintaining the strong growth momentum. – In the second quarter of 2021, Dada Nexus' (DADA:NASDAQ) total net revenues increased to CNY 1.47 billion, which is above the Street's consensus expectation of CNY 1.41 billion and the company's high-end guidance of CNY 1.45 billion. Aligning the revenue recognition method of Dada Now last-mile delivery services to net basis, pro forma revenue growth would have been 81.3% year-over-year. Dada also reported a quarterly non-GAAP net loss of CNY 549 million, against the Street's expectation of CNY 615 million. Dada has continued to win Chinese consumers' trust by providing "timely, efficient and high-quality services." The number of trailing-twelve-month active consumers on JDDJ increased by around 60% year-on-year to 51.3 million as of June 30. The company will continue to execute its in-depth cooperation with JD, to better serve the omni-channel and on-demand needs of JD's over 530 million active users. GMV of JDDJ for the twelve months ended June 30, was CNY 32.3 billion, an increase of 77% year-over-year. "Dada Group has long served the real economy and is growing together with brick-and-mortar retailers as well as our brand partners. We welcome the stepping up of regulations and firmly believe it will be good for the long-term sustainable development of the industry. There is enormous potential in the on-demand retail industry for us to explore," said Mr. Philip Kuai, Chairman and Chief Executive Officer of Dada Group. "Through the deepening cooperation with JD, we continue to build strong partnerships with our retail and brand partners, working together to create value to consumers. Our partners will continue to benefit from our technology platform and high levels of innovation. Together, with Dada's commitment to bring people everything on demand, we will continue to focus on long-term value creation to the benefit of enterprises and consumers around China." JDDJ has maintained a top position in the supermarket category and partnered with 80 of the top 100 supermarket chains, including 9 of the top 10. Meanwhile, it established direct partnerships with smartphone brands, including Apple and vivo, and has newly partnered with Microsoft, ASUS, Dell and Alienware, gradually moving their offline stores online. As a SaaS product that enables retailers to drive O2O sales while streamlining operations, Dada's Haibo System has been adopted by more than 4,300 retail chain stores as of the end of August, covering over 40% of the top 100 supermarket chains. As a platform that connects consumers and merchants with crowdsource-based delivery services, Dada Now provides a large number of flexible employment opportunities to society, and at the same time, it is committed to protecting the rights and interests of gig economy workers. During the second quarter, Dada Now's on-demand delivery service to chain merchants continued to see explosive growth, with year-over-year revenue growth accelerating to over 140%. In July, it officially launched the Dada Autonomous Delivery Open Platform, which is open to autonomous vehicle companies, such as JD Logistics and aims to accelerate the commercial use of autonomous delivery.
NASDAQ:DADALong
by EqualOcean
LTC Long @ 176.57Yesterday's inaugural post flagged a bullish valuation signal on Litecoin (spot ref 176.57). Some additional colour. RETINA™ provides machine generated signals based on macro factors. Yes, any asset - especially crypto - can be driven by a host of things. Regulatory risk is clearly a very real threat. But ultimately, financial assets reflect their macro environment - where we are in the growth cycle, is inflation rising / falling, are financial conditions easing or tightening, where is risk appetite etc? Quant Insight's algorithms capture all these & distil it all down into a macro-warranted fair model value. The difference between spot price & fair value = a Fair Value Gap. Essentially a way to track dislocations in markets between the price of crypto, FX, cmdties etc & their fundamental environment. RETINA™ then pushes these signals out. Litecoin's macro fair value is currently 236. The biggest driver is global inflation expectations. Higher global bond yields & steeper yield curves are also consistent with higher XLCUSD. A "risk on" environment also helps. Note that includes events in China. China stress features as a top driver via sovereign CDS spreads. One word of caution therefore to LTC longs - if the Ever Grande story bleeds into the banking sector & beyond, that's bad news & a risk scenario that requires careful monitoring. All-in-all, Litecoin wants a reflationary, risk on backdrop & offers a useful inflation hedge.
COINBASE:LTCUSDLong
by UnknownUnicorn25542523
CQQQ going up!AMEX:CQQQ At 4H, they broke through the 100MA and buried themselves in the additional resistance level = 74. A local rollback is possible, but after that the growth will continue. Or it will reach 100MA on 1D and the first target and then retest the level 74, unloading local indicators to continue to grow on the rest of the targets. Having also reached the second goal, the chart will break through the resistance of 100MA 1D and change the trend. Target: 77.25, 80.34, 86.63
AMEX:CQQQLong
by DirectorTradinga
Technical analysis update: HSI (7th September 2021)Hang Seng index declined over 20% from its peak on 18th February 2021. Then it made lows on 27th July 2021 (at 24 748.84 HKD) and on 20th August 2021 (at 24 851.60 HKD). We are bullish on Hang Sang index and we think current price is very attractive for long entry. Because of that we would like to set medium term price target for HSI to 28 000 HKD. Technical analysis RSI is bullish. Stochastic is also bullish. MACD is bullish too, however, it is still in the bearish zone below 0 points. Though, we expect it to cross above 0 which will further bolster bullish case for HSI. ADX is leveling down suggesting that neutral trend is present at the moment. Closest supports can be drawn by extending horizontal line from recent lows (at 24 748.84 HKD and at 24 851.60 HKD). Closest resistance is at 26 822.47 HKD. We will observe HSI over the coming few weeks. We will watch out for breakout above resistance. We expect this phenomenon to support bullish thesis for HSI similarly like MACD crossover. Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
TVC:HSILong
by Tradersweekly
2
Cango's Recent Moves Show Its Business ResilienceThe company generated CNY 558 million in net profit in Q2 2021, up 695% from a year ago. Cango facilitates transactions through a technology-enabled service platform in China's automotive industry. The country's auto market is reviving and is set to be in a growth trajectory for quite some time. The company has expanded its upstream business, entering the flourishing NEV market. Though the local NEV leaders are prone to sell cars directly, dealers will keep playing an important role in the Chinese market, especially in the lower-tier cities. Cango's stock looks cheap now. The relieved travel restrictions have revived trading activity in China's passenger vehicle market, the world's largest in terms of both demand and supply. Cango (CANG:NYSE), a company aimed at disrupting the auto value chain in China, has presented solid Q2 2021 results. This article will introduce Cango, its strategy and future development outlook. Introduction In 2010, Cango was founded by a group of veterans in China's auto financing industry with the idea of making auto transactions "simpler, easier and more pleasant." There was a certain degree of demand for such a platform in China's vast but underserved lower-tier cities' markets. Started with auto loan services, the company's scope later stretched to the vehicle sales business upstream and after-market services downstream. By the end of 2020, Cango had built a network consisting of 47,740 auto dealers, accumulatively serving more than 1.9 million car buyers. The company currently covers more than 1/3 of China's total new car dealers, and over 75% of dealers in Cango's network are located in tier 3-5 cities. Over the past ten years, the company has established a technology-driven platform that connects various participants along the auto value chain, including dozens of large and mid-sized commercial banks, insurance firms, as well as major gasoline vehicle OEMs and high-tech new energy vehicle (NEV) OEMs. China's auto market is back on a growth trajectory Cango's business is rooted in the flourishing auto trading activities in China. Although the pandemic has hammered buying cars in brick-and-mortar stores, the total transactions have shown resilience. According to CPCA, the Chinese light vehicle sales hit 19 million in 2020, down 6.8% year-on-year. However, the outlook for future sales is rather encouraging: CAAM expects the market to grow by 10% in 2021. Moreover, the organization forecasts that the 2025 sales will reach 30 million, with a CAGR of 4.6% from 2021 to 2025. The driving force of surging future sales will be the rise of per capita ownership of cars. Based on the World Bank's data, China's car ownership was 283 units per thousand inhabitants in 2019. At the same time, China's population density was 149 people per kilometer squared, GDP per capita was USD 10,276. By comparison, Japan and South Korea are more densely populated, have higher GDP and car ownership rates per capita. Thus, China's auto market sees great potential. Lower-tier cities are showing strong momentum in the rise of the car ownership rate. There are several catalysts. One is the policy of 'sending cars to the countryside' under which people who live in rural places receive subsidies when buying cars. Electric vehicles have been added into the list in recent years. Second, lower-tier cities in China often have no restrictions on getting vehicle plates, further stimulating car sales. Third, citizens in lower-tier cities have less debt burden on housing so that they can potentially spend more money buying cars. Cango's next big move Following the big trend, Cango also stepped up its efforts in the NEV market. NEV manufacturers, which usually adopt the direct operation and sales model, are actively seeking traffic in the lower-tier markets and professional traffic operation support. Cango's strong foothold in the lower-tier markets and service capabilities in auto transaction puts it in an ideal position to meet its needs. Although some in the industry argue that NEVs' direct sales won't need dealers and related service providers like Cango, we believe, however, that dealers will continue to play an important role in the new segment's development. Inspired by Tesla, China's NEV market was initially driven mainly by direct sales. This model was soon adopted by other EV players, including NIO, Xpeng and Li Auto. Intuitively, direct sales skip dealers so that ensures better customer services and more profit to OEMs however incurs large front costs of opening new stores. Currently, all the public EV companies' valuations are very sensitive to the vehicle delivery numbers. The relationship between electric car brands and dealers is dialectical. In 2018 and 2019, some brands like NIO and Xpeng needed funds to open new stores. After raising enough funds through IPOs, NIO and Xpeng both decided to lower the number of franchised stores. So far, EV brands have accumulated a lot of orders, but short-term deliveries are restricted to their production capacity. As production ramps up, same-store sales will touch the ceiling, especially in the lower-tier cities. By that time, these brands are likely to reconstruct the dealer network. Besides, not all NEV brands have enough capital to open and run offline stores independently. This makes incorporations with dealers almost inevitable. Meanwhile, NEV brands try to minimize their sales and marketing costs through an offline-to-online mode, which considers experiencing a vehicle offline, then buying it on a digital platform. High efficiency will be difficult to achieve with such a method. First of all, for most families, especially those living in lower-tier cities, a car purchase is an important event requiring both time and capital. If there is no physical store nearby, the customer experience will be downgraded. Second, brand variety is essential in the auto sector. OEMs' products face millions of requirements from picky buyers, and a few car brands are unlikely to satisfy all requirements. Besides, as the US and Japan's history has shown, dealers aren't likely to be pushed out of the market. The United States' long automotive history has proven how important dealerships are in a large and populous country. China shares similar attributes. According to iiMedia, there are currently 287 million cars in China, with 72 cities having more than one million cars, 33 cities having more than two million cars. What's more, car buyers across the country have different consumption behavior patterns. For example, lower-tier cities' dwellers prefer domestic brands' full-size vehicles. In the Eastern regions, buyers have a higher acceptance of electric cars than their inland peers. In short, for NEV players, it's hard to adopt a standard promotion strategy in such a diverse market. Distributors and adjacent service providers like Cango can coordinate resources, making the process more resilient. Being a middleman Apart from stepping into NEV business. Cango is striving to expand the business upstream including B2B and B2C. By the end of Q2 2021, the company has CNY 1.5 billion cash on hand, enough to support this new asset-light business. For example, owing to its relationship with registered dealers, Cango can provide demand-side insights from dealers to OEMs and vice versa. Cango helps dealers get vehicles they want. For B2C, Cango helps prospective car buyers find suitable cars in its dealer network. All of these are processed through their massive network on a tech-enabled platform. In its Q2 2021 earnings results, the company reported over 50% of total revenues generated from its auto trading business segment. This figure looks significant, considering that Cango's expansion into the sector started in H1 2020. Though this part of the business currently posted a lower gross margin (being positive, meanwhile), we believe it is necessary, even critical, for Cango to expand to upstream segments. By doing so, it will synergize the auto financing business and reduce single business risk. More importantly, with the integration of car sources, financing, insurance and other after-market services, the company gets to strengthen the bond with its dealership network. We can find similar stories in the history of all the large car servicing companies. For example, US firm CarMax integrated auto financing and used car business. It has been facing competition from online used car platforms in recent years. To address the problem, CarMax rolled out its 'omnichannel platform,' which is aimed at allowing customers to buy a car online, in-store, or through any combination of the two. Cango's new business is similar to that of CarMax, getting through the information asymmetry between buyers and sellers. Chinese dealers are also adjusting their strategies to acquire larger chunks of the auto value chain. Zhongsheng Group, a high-end vehicle dealer, is concentrating on the used car business. Another dealership brand China Grand Automotive's business model consists of related businesses like auto financing. Risks We consider Cango's expansion to upstream business risky. As per above, large Chinese dealerships have been expanding their business scope and they may have the same addressable market. But luckily, Cango is deeply rooted in lower-tier cities, which are less attractive for large competitors. Most overseas-listed Chinese stocks are currently facing a number of regulatory risks. However, as we stated in our previous NIO analysis, the government is targeting tech giants, as well as education and gaming businesses. In other words, sectors that directly influence the social sphere. Auto dealerships are less likely to suffer from the crackdown. Summary Cango has decided to expand its business to new energy and other upstream business segments. This strategic orientation is well-weighted and mainly based on two points. The separation of NEV OEMs and dealers will come and go, with the two models coexisting for a long time. Based on global examples, business diversity is necessary for a small car servicing company to grow. In addition, Cango's business is highly dependent on the auto trading activity in China, which is back on a growth trajectory and will contribute to the company's growth. Notwithstanding, the tumultuous summer of 2021 saw Cango decline to a historical low. This has triggered the company to launch a share buy-back program. We consider Cango an interesting investment opportunity at these levels. For the full article with the charts, please visit the original link.
NYSE:CANGLong
by EqualOcean
Alibaba: A Bad Investment with Brilliant TechnicalsThe recent news about Alibaba's "donation" to the CCP agenda machine has sent the $BABA worshipers into full defensive mode. YouTube videos and Seeking Alpha articles on the equity have exploded in popularity and volume. Long term, investing in Chinese equities is a gamble but, if you're on the right side of the trade, you can certainly make a lot of money. This may or may not be the case with Alibaba. Present retail sentiment may likely force the stock upward but I think this will be taken as an opportunity by smart money to sell into strength. The retail money will be left holding a bag of CCP garbage. I'm (cautiously) short.
NYSE:BABAShort
by forever_green
Another Chance to Go Long Lufax – A Close Look at Q2 2021 ResultThe overall favorable financials and rather a low valuation of the Chinese fintech present a new investment opportunity. Lufax achieved positive year-over-year growth in key financials during the second quarter of 2021. Larger clients are cutting more shares in credit loan and asset management sectors. The stock repurchase plan is expected to boost Lufax's stock price – which has been decreasing for months to a level way below IPO price. Several problems, such as the shrinking business scale and decreasing income from the technology-based business, have become concerns for Lufax's long-term development. Lufax (LU:NYSE), founded in Shanghai in 2011, is a fintech affiliate of Ping An Group that provides personal financial services as an agency and dealmaker to help financial institutions connect to retail clients. Lufax launched its New York Stock Exchange public offering on October 30, 2020, raising USD 2.36 billion. On August 10, Lufax posted its financial results for the second quarter of 2021. Here, we dissect the released data, while constructing an investment message. Improving financials, with a better business structure During the three months through June, Lufax achieved revenue growth of 17.3% and its net income increased by 53.2% year-over-year. The total revenue and net income grew from CNY 12.64 billion and CNY 3.09 billion in the same period last year, to CNY 14.83 billion and CNY 4.73 billion in the second quarter of 2021, respectively. Since the third quarter of 2019, Lufax has been achieving positive year-on-year quarterly revenue growth, despite the COVID-19 outbreak. The net profit only showed a decrease from July to September in 2020, mainly affected by the pandemic, as the firm claims. Nevertheless, the overall business operation and profitability have been improving. What is more, consistent with its strategy in the retail credit field, the company has increased loans to small-to-medium businesses in recent years. During the second quarter of 2021, 77.6% of the new loans were issued to the small business owners who normally have somewhat large tickets, therefore reducing Lufax's costs associated with the borrowers. In the wealth management sector, contribution to total client assets from customers with investments of more than CNY 300,000 on the company's platform increased to 80.2% as of June 30, 2021, from 75.4% in the same period in 2020. Upward price momentum In May 2021, Lufax announced that the ADS worth USD 300 million would be repurchased over the following six months. Some of the company's top executives will also spend USD 5 million at most with personal funds on the ADS purchase. By the end of June 30, transactions accounting for USD 286 million had been closed, with USD 281 million from the company and 5 million from the management team. It is clear that the management is confident in Lufax's future, and trying to give the market positive signs, especially under the current low-valuation situation in the stock market. Lufax was certainly very high-profile in launching on the New York Stock Exchange on October 30, 2020 as the fourth largest unicorn globally, reaching its historical high record of USD 19.72 per share in the next month. However, since May 2021, partially because of the crackdown in valuation among all Chinese concept stocks, the stock price of Lufax has sunk – to USD 8.60 on August 17 of 2021, far below its IPO price. What is more, 13 over 16, which is 81.25% of the Wall St. analysts give bullish or very bullish ratings to Lufax. Along with the stock repurchase plan, we believe the stock price will be boosted, based on overall solid financial performances and below-expectation capital market recognition; thus, Lufax is considered a good investment now. What to be aware of The new loans facilitated during the second quarter of 2021 decreased by 11.4% from the previous quarter and the asset amount from wealth management clients only went up by 1% from the first quarter of 2021. Per the management, that was because of the change in company strategies, as Lufax has been focusing more on service quality instead of business expansion, which is backed by three principles: compliance operation, targeting SMB and affluent clients and technology improvement. However, the last principle, which lies upon the technological transformation, which Lufax has been emphasizing for years, has no embodiment. The largest revenue component – technology-based income – has been contributing less and less since the third quarter of 2019, the earliest financial records available. Compared with the other two Chinese fintech leaders, Ant Group and JD Digits, Lufax's R&D expenditure-over-revenue ratio ranked last since 2017. What is worse, the expense has been taking up a decreasing percentage of the total revenue since 2019. Furthermore, in the press release of the second quarter's financial results this year, Lufax announced that a new series of stock repurchases would be launched, with ADS worth around USD 700 million to be bought back within one year. The company will intake USD 10 million of ADS shares transferred from the market. This plan is strongly considered a positive sign on the underlying stock price. The company's maturity process can partly explain the recently decreasing month-over-month profitability and shrinking business scale. This, however, can affect the operation results. Although the 'LU' stock may provide a short-term investment opportunity, its long-term development is still unclear.
NYSE:LULong
by EqualOcean
Li Auto Delivered Record 9,433 Vehicles in Aug, Up 248% YoYDeliveries of the new Li ONE began on June 1. Li Auto delivered a record 9,433 units of the Li ONE, the company's only model, in August, up 248 percent year-over-year and 9.8 percent from July. That number exceeded many expectations, considering the company gave conservative guidance for the third quarter in its earnings report released earlier this week. For the first eight months of 2021, Li Auto deliveries have totaled 48,176 units. The Li ONE's cumulative deliveries now stand at 81,773 units, the company announced Wednesday. As of August 31, 2021, Li Auto has 114 retail centers covering 69 cities, as well as 194 aftermarket repair centers and authorized sheet metal spray centers covering 143 cities. Notably, when Li Auto announced its second-quarter earnings on August 30, it said it expected deliveries of 25,000-26,000 units in the third quarter. Considering that the company previously said that September deliveries were expected to exceed 10,000 units and July deliveries were 8,589 units, many believe this implies that Li Auto's deliveries in August will be at most 7,400 units. The Li ONE is an electric vehicle with extended-range technology, having a three-cylinder engine as the range extender. The Li ONE became available in October 2019. On May 25 of this year, Li Auto announced the 2021 Li ONE with a starting price of CNY 10,000 (USD 1,560) higher than the previous version at CNY 338,000. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NASDAQ:LI
by EqualOcean
XPeng Delivered 7,214 Vehicles in Aug, Up 172% from a Year AgoXpeng P5 will officially go on sale on September 15, and deliveries will start at the end of October. XPeng Motors delivered 7,214 vehicles in August, up 172 percent year-over-year and down 10 percent from July. The company delivered 6,165 P7s and 1,049 G3s in July. 2021 year-to-date deliveries reached 45,992 vehicles, representing a 334 percent increase year-over-year. P7 deliveries continued to strengthen, achieving a record month in August and a 209 percent increase year-over-year. The production preparation and switching of G3i is expected to have an impact on G3 and G3i’s production and delivery for a few weeks, XPeng CEO He Xiaopeng said during the company's second-quarter earnings call. "We plan to start deliveries at the end of August and will increase delivery scale in the next quarter," He said. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NYSE:XPEV
by EqualOcean
NIO Delivered 5,880 Vehicles in Aug, Up 48% from a Year AgoThe company has begun allowing customers to test drive ES8 in Norway. NIO delivered 5,880 vehicles in August, up 48 percent year-over-year and down about 26 percent from July. The deliveries consisted of 1,738 ES8s, 2,342 ES6s, and 1,800 EC6s. Supply chain disruptions in Malaysia and Nanjing, China, caused by local pandemic outbreaks, significantly hampered production, NIO said. The supplier of the A/B pillar interior trims in Nanjing, China was affected in August, the company said, adding that the supplier has now resumed production. Orders in August grew to a new historic record, the company said. NIO cuts its deliveries guidance for the third quarter by 500-1,500 units. The new deliveries guidance for the third quarter is between 22,500 and 23,500 vehicles. NIO is confident about the delivery result for September, it said. NIO said internal calculations showed the Covid-19 in August affected the company's production of about 2,000 to 3,000 units for the month. The company hopes to try to make up for the August production lost in September by collaborating with supply chain partners and adjusting the production pace of its plants. But even so, there will still be an impact of about 1,000-2,000 units for the entire quarter. NIO said order performance remains strong, with new orders reaching a record high in August. If supply chain problems do not deteriorate further, September deliveries can set another monthly delivery record, it said. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NYSE:NIO
by EqualOcean
China is in trouble!When China decreased its RRR rate in mid-july, it signaled to the broader market that something was wrong in its domestic market. Once we looked at why the PBOC was selling UST short term bills, and combined it with the previous factor- one thing stood out- China is desperate for USD's. When the PBOC cuts its RRR back in 2015, it is was due to: EURODOLLARS vanishing from its domestic banking system, CNY devaluing, PBOC balance sheet contracting, and RMB constraint. So what caused this in 2015? The answer is: The outflow of USD at depositories by large commercial players (Banks, Funds, ETC.). Now if you remembered from one of my previous posts couple months back, China is trying to fight a monetary trilemma, which to this date is loosing. The trilemma is if you recall, to have control of its capital account, to have a fixed exchange rate, and more importantly have monetary autonomy. Now the problem here is, China for the past couple of decades has used tremendous amounts of credit and leverage to accelerate its economic progress. Now if you acknowledge that China relies heavily on exporting goods, it can not afford to have outflows! If China has problems getting USD's it faces a domestic credit crunch - domestic credit markets, especially in the real estate sector, will implode. If Foreign markets face deflationary conditions, China will face having to devalue its currency to offset tightening credit conditions. If China is forced to devalue its currency to quickly - then USD outflows by depository institutions will likely occur causing a domestic credit crunch. That's the problem here: China is fighting its reliance on the mighty dollar, but it can only fight is slowly because it risks destroying its credit markets. The other problem is that the FED is engaged in QE (WHICH IS DEFLATIONARY) and is engaged in yield control by tightening yield markets to bring down yields to spur lending growth. YES! QE is designed to lower yields by tightening financial conditions. (The FED does not PRINT dollars!) The solution: The PBOC is fighting tightening conditions by cutting its RRR rate and selling UST to devalue its currency. SHORT ASEAN currenciess!!
Short
by LuisLizama
Futu Releases Q2 2021 Financial ReportAs a global technology-based securities firm, Futu Holdings Limited (Futu:NASDAQ) is committed to driving innovation with science and technology to provide more convenient and ultimate financial science and technology services for major markets around the world. According to Futu's released performance report for the second quarter of 2021: - The total revenue reached USD 200 million (about CNY 1.29 billion), with a year-on-year increase of 129%. It presents a triple-digit growth for six consecutive quarters. - The net profit under non-GAAP was USD 70.9 million (about CNY 458 million), showing a year-on-year increase of 127%. - The trading commission and fees increased by 95% to USD 100 million, where interest income increased by 194% to USD 78.6 million (about CNY 508 million), and other income (including wealth management and enterprise service business) increased by 141% to USD 21.7 million (about CNY 140 million). - As of June 30, 2021, the number of registered users has officially exceeded 15.5 million, with a year-on-year increase of 67%. The number of customers opening accounts reached 2.32 million (up 143%) and the number of customers with assets achieved a 2.3 times increase to over 1 million. - The customer retention rate reached 98% in the first half of 2021. - It achieved a net increase of 211,000 customers with assets in Q2 2021, more than three times that of the same period of 2020. By the end of the reporting period, the assets had exceeded USD 64.8 billion (about CNY 418.74 billion), showing a year-on-year increase of 254%, and the average assets of customers with assets had reached USD 65.000 (about CNY 420,000). - The total transaction volume totaled USD 169.4 billion (about CNY 109 million) in Q2 2021, representing a year-on-year increase of 104%. - Customers' average daily revenue transactions (DARTs) increased 105%, reaching 541,000. -As of June 30, 2021, the AUM of Futu Money Plus reached USD 1.77 billion (about CNY 11.44 billion), achieving a year-on-year increase of 59%. Futu Money Plus has connected with about 50 global well-known fund company partners (7 new partners in Q2 2021), including Goldman Sachs Asset Management, Hanya Investment, UBS asset management, etc. - As of June 30, 2021, Futu had provided IPO distribution and IR services to 186 enterprises. - There are 26 enterprises in Futu's '10 Billion Club' (subscribed over HKD 10 billion), of which JD Logistics (002618:HK), Angelalign (006699:HK), Nayuki (002150:HK), Carsgen (002171:HK) and other enterprises were added in the second quarter of 2021. - By the end of the reporting period, more than 600 new economic enterprises had settled in Futu Niuniu community. - In addition, Futuie has signed with 263 ESOP option management customers, with a year-on-year increase of 189% in Q2 2021. Customers include leading enterprises in medical and health, consumer retail, cutting-edge technology and other industries, such as Yidu Tech Group (002159:HK), Simcere (002096:HK), Popmart (009992:HK), Nayuki (002150:HK), etc. - Futu was officially included in the MSCI Hong Kong Index in Q2 2021. At the same time, it was awarded BBB - by S&P Global Ratings.
NASDAQ:FUTU
by EqualOcean