Latest news with #MainlandChina
Forbes
3 days ago
- Business
- Forbes
China Market Update: Fund Flows Highlight Curbed Enthusiasm
CLN KraneShares Asian equities had mixed performance overnight as the US dollar weakened and South Korea led gains in the region. Neither Hong Kong nor Mainland China managed to hold onto early morning gains, as both markets slid to post small losses. Hong Kong's decline was driven by PDD's significant financial results miss and large investments that weighed on the company's bottom line. Sell-side analysts' estimates were off by a wide margin; in their defense, the company has never broken out Temu's results from domestic China revenue, making transparency an ongoing issue. PDD's investment plans raised concerns about margin contraction and the potential for a price war, which weighed on E-Commerce stocks including Alibaba (-1.95%), Meituan (-0.53%), and Inc. (-1.4%). The downdraft was despite a Mainland China media report noting that early sales for the 618 (June 18th) shopping festival, similar to Singles Day, were up fourfold year-over-year (YoY), with 80,000 brands seeing double the turnover and 500 million orders already placed. The decline in Hong Kong largely matched the performance of US-listed China stocks, though not all internet stocks were down. Kuaishou Technology (+5.95%) rose after strong first-quarter results driven by its Kling artificial intelligence initiative. Other notable gainers included NetEase Inc. (+2.81%), Tencent Music Entertainment Group (+1.36%), Bilibili Inc. (+2.29%), and Group Limited (+1.48%). and other consumer-related stocks were higher on a government report estimating that 2.15 million people, an increase of 12.2% year-over-year, will travel overseas or visit China during the upcoming Dragon Boat Festival. Pop Mart International Group Limited (-7.12%) declined, though there was no clear catalyst aside from the stock's 141% year-to-date gain. Electric vehicles (EVs) and autos were mixed and continued to face pressure following reports that dealers sold new cars as old inventory to lower prices. BYD Company Limited (-2.68% in Hong Kong) refuted claims of an aggressive dealer buildout in Shandong Province that had attracted significant attention in Mainland China. In a weekend interview, Great Wall Motor Company Limited's Chairman Wei Jianjun stated, 'The 'Evergrande' in the automobile industry already exists, it just hasn't exploded yet.' Reports cited April car production at 2.23 million units versus 1.75 million in sales, with EV inventories rising to 850,000 units from 660,000 at year-end. Following a sharp rally, BYD appeared due for a pullback, though the 50-day moving average may act as support. Hong Kong saw relative strength in air freight, coal, beverages, restaurants, and oil and gas, while banks, Tencent, Alibaba, Meituan, and BYD weighed on the indices. In Mainland China, healthcare, precious metals, oil, coal, and transportation/ air freight outperformed. The Mainland China fund industry reached assets under management of RMB 33.12 trillion after an increase of RMB 900 billion in April. Most flows went into money market funds (RMB 664 billion), followed by fixed income (RMB 140 billion) and stock funds (RMB 112 billion), reflecting a lack of risk appetite. A Reuters article yesterday highlighted that 'Chinese savers decry falling deposit rates but still won't spend more,' noting that 'at the end of March, total household deposits surpassed 160 trillion yuan ($22.3 trillion), up 10.3% from a year before, and equivalent to 118% of last year's gross domestic product (GDP).' The ongoing decline in real estate prices and the absence of a social safety net remain key issues. The summit of the Association of Southeast Asian Nations (ASEAN), the Cooperation Council for the Arab States of the Gulf, and China concluded a joint summit in Kuala Lumpur overnight. While there may be headlines about China waiving visas, the joint statement focused on economic integration, connectivity, energy security, sustainability, digital transformation, innovation, agriculture, and people-to-people exchange. As I observed during my recent travels in Asia, there is a big world out there conducting business with one another, largely unconcerned with developments in Washington, DC. Upcoming Live Webinar Join us Friday, May 30, at 11 am EDT for:Innovation In Hedged Equity - With Hedgeye's CEO Keith McCullough Please click here to register New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 KraneShares Chart2 KraneShares Chart3 KraneShares Chart4 KraneShares Chart5 KraneShares Chart6 KraneShares
GSM Arena
3 days ago
- Business
- GSM Arena
Xiaomi posts record Q1 results on the back of solid growth across smartphones, AIoT and wearables
Xiaomi shared its Q1 2025 financial report, and the numbers show growth across all key divisions within the corporation. Revenues soared to CNY 111.3 billion ($15.4 billion), which represents a 47% year-on-year growth, while net profits grew by over 64% and reached $1.48 billion. Research and development expenses rose by over 30% and now amount to $930 million with Xiaomi's portfolio now boasting over 43,000 patents worldwide. Nearly half of all Xiaomi employees (47.7%) work in the R&D field. The smartphone and AIoT division, which is Xiaomi's big earner, brought in $12.8 billion in revenue - a 22% improvement on the yearly basis. Source: Canalys As of March 2025, Xiaomi has over 718.8 million global monthly active users (MAU) across the smartphone and tablet domains, which represents a 9.2% jump compared to last year. The brand retained its status as a top-3 company in terms of global smartphone shipments for 19 consecutive quarters and led the Chinese market in terms of total shipments. Xiaomi's global and Mainland China smartphone shipments Xiaomi also revealed that as of April, it invested over CNY 13.5 billion ($1.87 billion) in the development of its Xring O1 chipset, which made its debut on the Xiaomi 15S Pro and Pad 7 Ultra. The brand is reporting a growing presence in the flagship smartphone segment in China as it now holds a quarter of the premium device market. Xiaomi is now a top-three brand in the global tablet market with 3.1 million shipments in Q1 and an 8.3% market share. It also led the global wearables market for the January–March period. It is the second leading TWS player on the world stage and number one in China. Xiaomi wearables and TWS shipments rankings Xiaomi also disclosed 943.7 million connected IoT devices (not including smartphones, tablets and laptops) and added over 1000 new offline stores across mainland China. Revenues from the electric vehicle (EV) division grew to $2.5 billion. Xiaomi shipped over 75,000 SU7 series EVs in its home market during Q1 which brings the total SU7 shipments to over 250,000. Source
Yahoo
4 days ago
- Business
- Yahoo
Xiaomi Corp (XIACF) Q1 2025 Earnings Call Highlights: Record Revenue and Strategic Growth ...
Total Revenue: RMB111.3 billion, up 47% year-on-year. Adjusted Net Profit: RMB10.7 billion, up 64% year-on-year. Gross Margin: 22.8%, up 0.5 percentage points year-on-year. Smartphone Revenue: RMB50.6 billion, with global shipments of 41.8 million units. Smartphone ASP: RMB1,211, up 5.8% year-on-year. AIoT Revenue: RMB32.3 billion, up 59% year-on-year. Internet Service Revenue: RMB9.1 billion, up 12.8% year-on-year. Smart EV and AI Innovative Business Revenue: RMB18.6 billion. R&D Expenses: RMB6.7 billion, up 30% year-on-year. Operating Expenses: RMB15.4 billion, with core business operating expenses at RMB10.6 billion. Smartphone Market Share in Mainland China: 18.8%, with a 40% year-on-year growth in shipments. Global MAU: 719 million, up 9.2% year-on-year. Smart EV Deliveries: 76,000 units in Q1. Warning! GuruFocus has detected 6 Warning Signs with XIACF. Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Xiaomi Corp (XIACF) achieved record high total revenue of RMB111.3 billion in Q1 2025, marking a 47% year-on-year increase. The company returned to the number one position in smartphone shipments in Mainland China, with a market share increase to 18.8%. Xiaomi's AIoT revenue reached RMB32.3 billion, with a strong year-on-year growth of 59%, driven by advancements in technology and favorable national policies. The company's R&D investment is set to reach RMB30 billion in 2025, with a focus on core technologies like AI and chips. Xiaomi's gross margin reached a historical high of 22.8%, with a significant improvement in AIoT business gross margin to 25.2%. Despite strong performance, Xiaomi faces intense competition in the AIoT sector, with peers formulating strategies to target the company. Concerns were raised about potential price reductions in the EV segment to maintain sales momentum, which could impact profitability. The smartphone market in some regions, such as India, experienced a decline, affecting Xiaomi's market share. The company faces challenges in scaling its large home appliance business, with ongoing discussions about building new factories. Xiaomi's new business segment, including Smart EV and AI, reported an operating loss of RMB500 million, indicating ongoing financial challenges. Q: What strategies will Xiaomi implement to address the competitive landscape in the AIoT sector, and how will these differ between China and overseas markets? A: Lu Weibing, Partner and President, stated that Xiaomi is in a high growth stage with many products out of stock, indicating minimal impact from competitors. The company aims to be a value creator and promoter of industry improvement. For overseas markets, strategies will not differ significantly from those in China, although the competitive landscape may vary. Q: How will Xiaomi's smart factories and AIoT plans enhance efficiency and profitability, and what impact will standard configurations like LiDAR have on pricing and profitability? A: Lu Weibing explained that Xiaomi's smart manufacturing platform supports various factories, enhancing supply chain efficiency. The company focuses on strong product capabilities, which should ensure profitability despite standard configurations. Profit is seen as a result of strong products rather than a direct target. Q: What is Xiaomi's outlook for smartphone shipments and pricing in 2025, and how will the EV and AI new business segments impact gross margins and losses? A: Lu Weibing noted that while global smartphone growth may be slower than expected, Xiaomi will focus on improving product structure rather than volume. The EV segment's gross margin has steadily improved, driven by strong product capabilities and efficient management. The new business segment's operating loss is narrowing, with a current loss of around RMB500 million. Q: What are Xiaomi's plans for smartphone premiumization and AI integration, and how will these strategies evolve over the next five years? A: Lu Weibing highlighted Xiaomi's commitment to premiumization, focusing on high-end products and expanding from China to overseas markets. The company plans to integrate AI deeply into its products, leveraging its large user base and data to enhance user experience. Q: How will Xiaomi's self-developed XRING chips impact its smartphone business and overall gross margins, and what is the competitive landscape in overseas markets like India and Africa? A: Lu Weibing stated that the XRING chips are part of a long-term strategy for high-end growth, with initial focus on flagship products. In overseas markets, Xiaomi is adjusting strategies based on local conditions, with a focus on improving product structure in India and expanding market share in Africa. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
5 days ago
- Business
- Yahoo
Miniso achieves 18.9% revenue surge in March quarter 2025
Chinese lifestyle products retailer Miniso has reported revenue of 4.43bn yuan ($610.1m) in the March quarter of 2025, increasing 18.9% compared to the same period in the previous year. The company has credited the rise mainly to a 16.5% growth in the average number of stores year-over-year. During this quarter, revenue from the Miniso brand itself rose by 16.5%, bolstered by a 9.1% rise within mainland China and a significant 30.3% surge in international markets. Additionally, revenue from the TOP TOY brand soared by 58.9% to 339.9m yuan, largely due to an expansion in store count. Miniso founder, chairman and CEO Guofu Ye said: "We delivered a solid March Quarter to kick off 2025 and are pleased to see our revenue grow by 18.9% year over year. Our revenue growth was mainly attributable to a 9.1% revenue growth in MINISO mainland China, an acceleration from September and December quarter last year, powered by a solid recovery in same-store sales. Through our steady progress in product mix optimization and strategical store network refinement, we are confident in achieving sustainable and high-quality growth.' Despite these increases, operating profit for the quarter saw a decline to 709.79m yuan from 743.29m yuan recorded during the same timeframe last year. The quarter's gross profit for the group stood at 1.96bn yuan, up by 21.1% from the previous year's figure of 1.62bn yuan. The company's gross margin also improved slightly by 0.8 percentage points to reach 44.2%, driven by strong revenue of Miniso brand in overseas markets and gross margin of TOP TOY brand. MINISO CFO Eason Zhang said: "Gross margin for March Quarter reached 44.2%, which was the highest for the past March quarters ever, thanks to our solid performance from overseas markets and TOP TOY.' The group's selling and distribution expenses witnessed a significant jump of 46.7% compared to the previous year, totalling 1.02bn yuan. However, profit of Miniso for the period fell to 416.46m yuan from last year's 585.95m yuan during the same quarter. Its earnings per share on a diluted basis for ordinary shares also decreased to 1.36 yuan for the March quarter, down from 1.88 yuan in the corresponding quarter of the previous year. "Entering into 2025, we are facing an increasingly volatile macroeconomic environment. Yet, with over ten years' experience of globalization, unparalleled scale and diversified footprint, we will stay resilient and agile in order to deliver long-term profitable growth." Guofu Ye added. As of 31 March 2025, Miniso operated of 7,768 stores, including 7,488 Miniso brand 280 TOP TOY brand stores. In September last year, MINISO signed agreements to acquire a 29.4% stake in Chinese retailer Yonghui for 6.3bn yuan. "Miniso achieves 18.9% revenue surge in March quarter 2025" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
24-05-2025
- Business
- Yahoo
BofA Reiterates Buy on Baidu (BIDU), Lowers PT
On May 22, Bank of America Securities analyst Miranda Zhuang reiterated a Buy rating on Baidu Inc. (NASDAQ:BIDU). However, she reduced the price target to $100 from $104 due to lower profit estimates for the ad business. A modern internet space with a person using Baidu services on a laptop. She also notes that its robotaxi division has achieved fully autonomous operations in Mainland China, which has already become a highly competitive market. Additionally, the company has its eyes set on international markets, and a successful entry into more overseas markets will result in significant growth, according to the analyst. The analyst also touched upon the company's advertising business, which has recently been under revenue growth pressure. However, she believes Baidu's AI dominance should enable it to reinvigorate growth in this segment through its core AI-powered search business or by innovating ad formats and enhancing user experience. To top it all, the company's strong financial position, share buybacks, and relatively cheaper valuation support her optimistic view. Baidu Inc. (NASDAQ:BIDU) is a Chinese technology company specializing in Internet services and AI. While its search engine has a dominant market position, it has diversified into several high-growth areas, such as autonomous driving and smart consumer electronics. While we acknowledge the potential of BIDU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BIDU and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
