New World's Distress Worsens After Shock Delay on Bond Interest
New World, which is grappling with HK$210.9 billion ($26.9 billion) of liabilities, said in a filing late Friday that it's planning the deferment for coupons on four perpetual notes. In total, that means it's postponing $77.2 million of debt obligations, according to Bloomberg calculations.
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Yahoo
19 minutes ago
- Yahoo
Analysis-Trump call to oust Intel CEO Tan could sidetrack chipmaker's turnaround
By Arsheeya Bajwa (Reuters) -Intel CEO Lip-Bu Tan is already facing an uphill battle in turning around the ailing chipmaker. Now, U.S. President Donald Trump's demand that Tan resign over his ties to Chinese firms will only distract him from that task, two investors and a former senior employee said. Trump said on Thursday that Tan was "highly conflicted" due to his Chinese connections. Reuters reported exclusively in April that Tan had invested in hundreds of Chinese firms, some of which were linked to the Chinese military. Tan may now have to mount an effort to reassure Trump that he remains the right person to revive the storied American chipmaker, pulling his focus away from the cost cuts he's trying to implement. "It is distracting," said Ryuta Makino, analyst at Intel investor Gabelli Funds, which, according to LSEG data, owns more than 200,000 shares in Intel. "I think Trump will make goals for Intel to spend more, and I don't think Intel has the capabilities to spend more, like what Apple and Nvidia are doing." AI chip market leader Nvidia and iPhone-maker Apple have committed hundreds of billions of dollars to expand domestic manufacturing, which, according to Trump, will bring jobs back home. Until recently, Intel had emerged as one of the biggest beneficiaries of the 2022 CHIPS Act, as former CEO Pat Gelsinger laid out plans to build advanced chipmaking factories. Tan, however, has significantly pared back such ambitions, as the company's goal of rivaling Taiwanese chipmaker TSMC's contract manufacturing chops have fallen short. Tan said last month that he would slow construction work on new factories in Ohio and planned to build factories only when he saw demand for Intel's chips, a move that is likely to further strain relations with Trump. The company, its board and Tan were making significant investments aligned with Trump's America First agenda, Intel said in a statement on Thursday, without any mention of Trump's demand. The statement was "bland", said David Wagner, a portfolio manager at Intel shareholder Aptus Capital Advisors, which owns Intel stock through index funds. "Either defend your leader, which will be the beginning of a difficult road ahead, or consider making a change," Wagner said. Having this play out over a few months is not something that Intel can afford, he said. Tan himself released a statement late on Thursday. "The United States has been my home for more than 40 years. I love this country and am profoundly grateful for the opportunities it has given me. I also love this company," he said, adding that the board was "fully supportive of the work we are doing to transform our company." "BUILT ON TRUST" Tan, a chip industry veteran, took the helm at Intel about six months ago, after the board ousted previous boss Pat Gelsinger over years of missteps and burgeoning losses. The company's shares are largely flat this year after losing nearly two-thirds of their value last year. Tan was the CEO of chip-design software maker Cadence Design from 2008 through December 2021. Cadence last month agreed to plead guilty and pay more than $140 million to resolve charges for selling its products to a Chinese military university believed to be involved in simulating nuclear blasts, Reuters reported. The sales to Chinese entities occurred under his leadership. Reuters reported on Wednesday that U.S. Republican Senator Tom Cotton sent a letter to Intel's board chair with questions about Tan's ties to Chinese firms and the criminal case involving Cadence. "There has been a lot of misinformation circulating about my past roles," Tan said in his statement on Thursday. "I have always operated within the highest legal and ethical standards. My reputation has been built on trust," he said. It is not illegal for U.S. citizens to hold stakes in Chinese companies unless those companies have been added to the U.S. Treasury's Chinese Military-Industrial Complex Companies List, which explicitly bans such investments. Reuters in April had found no evidence that Tan at the time was invested directly in any company on that list. But Trump's remarks have now forced the limelight on an issue that could erode investor confidence. "If you add in another layer of government scrutiny, and everybody looking into how the company is doing whatever it's doing ... that just makes it harder," said a former senior executive at Intel, who was familiar with the company's strategy under Gelsinger. The source, who declined to be named, was let go as part of Gelsinger's workforce reduction drive last year. Tan's strategy is to "get rid of all of the non-productive parts of the company and really focus on a key few products," the person said. "If (Tan) leaves, it's going to just prolong whatever Intel has to do and needs to do really quickly."
Yahoo
19 minutes ago
- Yahoo
ATA Creativity Global (AACG) Q2 2025 Earnings Call Highlights: Revenue Growth Amid Enrollment ...
Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points ATA Creativity Global (NASDAQ:AACG) reported a year-over-year increase in net revenues and gross profits for the second quarter of 2025. The company saw a significant 54.2% growth in revenues from research-based learning, overseas study counseling, and other educational services. Operating expenses decreased by 9.4% compared to the second quarter of 2024, contributing to improved financial performance. AACG's project-based programs saw a 25.7% increase in credit hours delivered, highlighting the popularity and flexibility of these offerings. The company successfully expanded its international partnership network, enhancing its global reach and student opportunities. Negative Points Total student enrollment decreased by 3.1% in the second quarter of 2025 compared to the prior year period. Despite revenue growth, AACG reported a net loss of RMB10.8 million for the second quarter of 2025. The decrease in student enrollment was attributed to normalized demand following a rebound in previous years. Time-based programs saw a decrease in credit hours delivered, as more students opted for project-based tracks. The company faces intensified competition in the creative arts education market, which could impact future growth. Q & A Highlights Warning! GuruFocus has detected 6 Warning Signs with AACG. Q: Can you provide an overview of the financial performance for the second quarter of 2025? A: ATA Creativity Global CFO, Mr. Roba Sima, reported a year-over-year increase in net revenues and gross profits for the second quarter of 2025. Net revenues were RMB 55.9 million, an 8% increase from the previous year, primarily driven by overseas study counseling services and other educational services. Gross profit increased by 10.2% to RMB 28.3 million, with improved gross margins of 50.6%. Operating expenses decreased by 9.4%, leading to a narrowed net loss of RMB 10.8 million compared to RMB 16.8 million in the prior year. Q: What were the key drivers of revenue growth during this period? A: The primary drivers of revenue growth were the increased contributions from research-based learning, overseas study counseling, and other educational services. These areas saw a 54.2% growth compared to the previous year, with significant revenue growth in overseas study counseling services due to more services delivered and a high number of student admissions to prestigious institutions. Q: How did student enrollment trends impact the company's performance? A: Total student enrollment for the second quarter of 2025 was 1,050, a decrease of 3.1% from the prior year. This decline was attributed to normalized demand compared to the rebound in 2023 and the first half of 2024. Despite this, project-based programs saw a 25.7% increase in credit hours delivered, indicating a shift in student preference towards more flexible and customizable learning tracks. Q: What are the expectations for the full year 2025? A: The company expects total net revenues for the full year 2025 to be between RMB 276 million and RMB 281 million, representing a year-over-year increase of 3% to 5%. Portfolio training is anticipated to remain the main revenue pillar, with increased contributions from other business lines as the company continues to enhance its offerings and introduce new programs. Q: What strategic initiatives are being implemented to support long-term growth? A: ATA Creativity Global is focusing on organic expansion across all business lines, enhancing cost discipline, and improving efficiency to boost bottom-line results. The company is expanding its international partnership network and introducing new research-based learning projects and travel programs to diversify offerings and enhance student experiences. Additionally, cost-conscious methods such as maintaining a lean sales team and utilizing online marketing are being implemented to reduce operating expenses. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
21 minutes ago
- New York Post
Why Trump is starting ‘not to give a crap' if TikTok goes dark — at least briefly
President Trump is starting 'not to give a crap' if TikTok briefly goes dark as the end to the latest ban extension looms, On The Money has learned. Trump has tired of China dangling TikTok as a carrot to gain an advantage in ongoing trade talks over tariffs, people with knowledge of the discussions said. The two sides have been close to a trade deal, Trump and Treasury Secretary Scott Bessent have said in recent days, ahead of next Tuesday's deadline for an agreement. 3 There's a 50-50 shot TikTok fades to black come the Sept. 17 deadline for a deal – at least for a while until both Trump and Chinese President Xi Jinping settle on a trade pact that includes keeping the app live. Donald Pearsall / NY Post Design But those talks could also stretch into the fall as they hammer out the final details, Bessent has suggested. That's why the betting inside the TikTok deal pool is that there's a 50-50 shot it fades to black come the Sept. 17 deadline for a TikTok deal – at least for a while until both Trump and Chinese President Xi Jinping settle on a trade pact that includes keeping the app live. You might be thinking that Trump just might kick the can down the road with another executive order extension, right? Well not so fast, I am told, including by one person close to the TikTok talks who relayed the lack of 'crap' Trump feels if the video-sharing app is briefly yanked. The deal only works if US investors are ready to put up tens of billions of dollars to buy the app from the Chinese company ByteDance, and if the Chinese are willing to give up enough control to satisfy the ban law. 3 The deal only works if US investors are ready to put up tens of billions of dollars to buy the app from the Chinese company ByteDance, and if the Chinese are willing to give up enough control to satisfy the ban law. AFP via Getty Images Investors, however, are getting nervous over the multiple extensions by Trump that appear to be circumventing established law. They fear there might come a point when Congress says enough. Also, China wants to retain a minority stake in the company and ownership of the all-important app that keeps users engaged by offering them a nonstop supply of preferred videos. Investors are hearing from China-hawks in Congress — those who really believe the app's user data is used by the Chinese surveillance state for spy-craft purposes — that even a minority stake by the Chinese might violate the law. 3 TikTok supporters in 2023 protesting against a ban. Getty Images If so, and if they agreed to a deal, these investors could be on the hook for hundreds of billions of dollars of liability if let's say a less deal-friendly DOJ after Trump leaves office brings a case given the way the ban law is written. Some private investors are demanding indemnification or their out. Trump may also be losing patience with the whole TikTok saga. He has touted that he has multiple buyers to create what is essentially a new US company to keep it alive, but people involved in the deal doubt that he will allow Xi to use it as a bargaining chip in the broader trade deal, I am told. He isn't going to give up a lot just to keep TikTok alive, they predict. A White House spokesman had no comment. TikTok and its estimated 170 million US users got a new lease on life after its once fiercest critic, Trump, pulled a major U-turn. He wanted it banned when he was president the first time, believing it was used by the Chinese surveillance state for nefarious purposes. More recently, he wanted it saved after he came to believe pro-Trump messaging on the app helped him win in 2024 by turning a swath of TikTok's youngish users into die-hard MAGA supporters. Just hours into his second term, Trump overruled bipartisan legislation signed into law by President Biden and upheld by the Trump-friendly Supreme Court that banned the app unless it divested from the Chinese by Jan. 19. Through executive orders he has extended the life of the app several times since.
