Original link: https://www.latepost.com/news/dj_detail?id=1360
Huawei retains growth, mainly on the Chinese market
Huawei, which has re-focused on the Chinese market, continued to repair its operating performance.
On October 27, Huawei announced its operating results for the first three quarters. The revenue from July to September increased by 6% year-on-year to 144.2 billion yuan, and the growth rate turned positive for two consecutive quarters. At the same time, the net profit margin also rose to 8.4% from 5% in the first half of the year .
Xu Zhijun, the rotating chairman of Huawei, said that the downward trend of consumer business (mobile phone and other businesses) continued to slow down. In the first half of the year, revenue from the business fell 25% year-on-year. According to data obtained by LatePost, in the third quarter of this year, Huawei’s mobile phone sales in mainland China increased by 5% year-on-year. Due to the release of the Mate 50 series , the average selling price of Huawei’s mobile phones is also rising.
The auto business has also picked up. In the third quarter, Huawei Askjie sold a total of 27,000 vehicles, the most in the quarter after Huawei entered the auto market. According to the request of Huawei founder Ren Zhengfei, Huawei’s automotive business will “reduce the research budget and strengthen the business closed loop”.
Huawei’s information and communications technology (ICT) business, which sells software services and hardware equipment to companies, has seen “steady growth”. In the first half of the year, Huawei’s carrier business and enterprise services increased by 4% and 28% respectively. In order to gain more revenue in these sectors, Huawei has formed 18 “corps” , which put scientists in basic research and experts in charge of technology, products, engineering, sales, delivery and services into one team to improve business efficiency.
Huawei continues to emphasize “living with quality”. Ren Zhengfei said in an internal document in August this year that Huawei’s business goals should be shifted from “sales revenue” to “cash flow and real profits”. In addition to scaling down or closing businesses that cannot generate value and profits in the next few years, he also emphasized focusing on valuable market.
Ren Zhengfei said that Huawei used to embrace the ideal of globalization, but now it will abandon some countries and mobilize more personnel to “eat the fat”. In 2018, the Chinese market contributed half of Huawei’s revenue. Last year, the proportion increased to 65%, and this year may be more. (He Qianming)
How Intel revamped Mobileye
After lowering expectations, Intel Mobileye’s IPO didn’t look so bad, closing up 37.84% with a total market value of more than $23 billion.
Intel at least made money on paper. They nearly ran out of liquidity five years ago, buying partner Mobileye for $15.3 billion. After missing out on a major opportunity in the mobile era, Intel doesn’t want to make the same mistake in self-driving cars.
At that time, Nvidia had already developed automotive chips, and Qualcomm, which had already defeated Intel once, was preparing to acquire NXP, the world’s largest automotive chip supplier, for $47 billion (2016).
Existing public information makes it difficult to quantify Intel’s “transformation” of Mobileye. However, at a customer communication meeting in early 2020, Intel senior vice president, Mobileye founder and CEO Amnon Shashua said that Intel is leading the way with regulators, Peers and car manufacturers discussed the formulation of industry standards in the field of autonomous driving active safety.
At the end of last year, Intel CEO Pat Gelsinger said the company had convinced the market that investing in Mobileye was profitable by increasing production capacity and solving supply chain problems.
“Intel to solve Mobileye’s supply chain problem. We have that capability, nobody else has. If I call Jim Farley (Ford CEO), Mary Barra (GM CEO), Oliver Zipps ( BMW CEO) or someone like that saying ‘capacity is not an issue, we can do it’, and that’s a powerful statement for them who are planning for the future,” Gelsinger said.
Mobileye’s total revenue in 2021 is about $1.38 billion, four times what it was when it was acquired by Intel. The number of employees increased from about 750 at the time to nearly 3,000. Intel expects automotive to be one of the fastest growing areas of the semiconductor industry in the next few years, so it will continue to expand wafer casting capacity in the automotive sector,
According to third-party data, Mobileye’s vision-assisted driving systems have been integrated into 100 million vehicles. In the first half of this year, they shipped about 16 million units, with a backlog of about 37 million units. Customers include Audi, BMW, Volkswagen, Ford, Weilai, Ideal, Great Wall, and Jikr.
Legend: Technical capabilities and customer reserves of autonomous driving companies with different technical routes. Source: Soochow Securities
The biggest problem exposed by autonomous driving in the past two years is that there are too many promises and too little realization.
The day after Mobileye was spun off by Intel and listed on the market, Argo AI, which was invested by Ford and Volkswagen, collapsed. After 2,000 people burned at least $2.7 billion, there was still no hope of commercialization. Previously, the valuation of a group of autonomous driving startups including Aurora, Auve and others has shrunk by 80% in one year.
Ford said in a statement that “self-driving cars are still a long way from being profitable at scale, and we don’t necessarily have to do it ourselves,” said Doug Field, chief advanced product development and technology officer. Taxi ‘harder than sending people to the moon’
VW’s attitude is “to provide our customers with the most powerful features as early as possible and to develop them in the most cost-effective way possible,” and this month they announced a joint venture with Horizon and a controlling stake. (Gong Fangyi)
Oriental Selection achieves single-quarter profit
On the evening of October 26, New Oriental released its results for the first quarter of fiscal year 2023 (June 1-August 31, 2022). During the period, revenue was US$745 million, down 43.1%, but net profit increased by 9% year-on-year to US$66 million. After the release of the financial report, New Oriental’s stock price rose 28% overnight.
After the transformation of New Oriental, the most concerned is New Oriental Online, which is the core business of Oriental Selection. Although not explicitly mentioned in the financial report, the income attributable to New Oriental’s non-controlling interests was US$18.579 million. According to the shareholding ratio, the income of New Oriental Online in this quarter was about 302 million yuan.
Since its popularity in June, Dongfang Selection has ranked first on Douyin’s monthly live streaming list for four consecutive months. Cumulative sales from June to August were about 2.249 billion yuan. New Douyin data shows that as of October 26, Dongfang selected 27.278 million Douyin fans, and the sales of live broadcasts in the past 30 days were 500 million to 750 million yuan. During the earnings conference call, the management was confident in the development of Dongfang Selection and stated that it would increase investment in the agricultural supply chain.
In addition to the Dongfang selection live broadcast room, which is mainly engaged in agricultural products, New Oriental Online also has three live broadcast rooms under the Dongfang selection beautiful life, the Oriental selection of books, and the Oriental selection of self-operated products. Among them, “Oriental Selection of Beautiful Life”, which mainly focuses on beauty and home furnishing categories, has developed rapidly, with a single-day GMV of 70 million yuan on the 26th, and “Make friends and care for beauty” with similar positioning, with a monthly GMV of 10 million to 10 million yuan. About 25 million yuan.
Compared with the increase brought by Li Jiaqi’s 460 million views, making friends, Yuanwang, etc., moving to Taobao and Tmall this year, the live broadcast of Douyin has been affected to some extent. On the 24th, Taobao and Tmall launched the first day of the pre-sale of the big promotion. Among the anchors of Douyin, only Dongfang Selection exceeded 10 million views. Yu Minhong’s team has established a number of main accounts and vertical accounts on Taobao, including beauty, agricultural products, etc. Yu Minhong will also be on the Taobao live broadcast room of “New Oriental Xuncheng Education Franchise Store” on the evening of October 31st. (Intern Zeng Xing)
Haitian Flavor withdrew from 1,061 distributors in the first three quarters
Haitian Flavor Industry, the largest listed condiment company in China, recently announced its operating data for the third quarter. As of the end of September, the number of dealers had decreased by 1,061, a significant increase from the 463 decrease in the same period last year. There were also 784 new dealers added during the year.
During the online road show, an investor specifically asked the management of Haitian Flavoring why the number of dealers decreased and the number of dealers increased significantly year-on-year. The management said:
Affected by the epidemic, the business of dealers has also been greatly impacted, especially the smaller dealers, whose anti-risk ability is relatively weak, and the impact is greater. In order to reduce the pressure on dealers, the company actively Some optimization adjustments have been made to meet the needs of the current market development.
In the third quarter of this year, Haitian Flavor’s revenue and net profit both declined. The main revenue of soy sauce products was 2.9 billion yuan, down 8% year-on-year and 14.8% month-on-month; net profit in the first three quarters fell 0.86% year-on-year to 4.667 billion yuan, the first profit contraction in the same period in ten years. (Gong Fangyi)
Shanghai’s GDP returns to growth in the third quarter
According to data from the Shanghai Bureau of Statistics, Shanghai’s cumulative GDP in the first three quarters of this year was 3,095.665 billion yuan, a year-on-year decrease of 1.4% and a decrease of 4.3 percentage points from the previous month. The financial and information technology industries were the biggest drivers of Shanghai’s economic aggregate in the first three quarters.
- According to the cumulative data, Shanghai’s GDP in the third quarter was about 1,160.734 billion yuan, an increase of 7.83% over the same period last year.
Note: The cumulative year-on-year GDP data of Shanghai’s secondary and tertiary industries, the information technology and financial industries in the tertiary industry have achieved growth.
OTHER NEWS
The two cities fluctuated and closed down, with northbound funds buying a net 959 million yuan.
Today, the Shanghai Index, Shenzhen Component Index, and ChiNext Index closed down 0.55%, 0.63%, and 1.5%, respectively. Northbound funds bought a net 959 million yuan throughout the day; Hang Seng Index closed up 0.72%, and southbound funds bought a net 5.572 billion Hong Kong dollars. Kweichow Moutai, which was once highly sought after by both domestic and foreign investors, performed weak throughout the day, with its share price closing down 4.31% to 1,401 yuan.
Juewei Duck Neck expands investment for growth and loses 70% of its profits.
Juewei Food’s revenue in the third quarter increased by 4.77% year-on-year to 1.784 billion yuan, but its net profit fell sharply by 73.85% to 121 million yuan. The financial report shows that in the third quarter, most expenses such as raw material costs and marketing and promotion expenses increased. Among them, the increase in short-term bank loans led to an increase of about 202%, and interest expenses also increased.
The demand for new crown vaccination has decreased, and the net profit of Zhifei Bio has decreased by 30%.
“Vaccine Mao” Zhifei Bio continued to increase revenue but not profit in the third quarter, with revenue of 9.47 billion yuan, a year-on-year increase of 9.38%, and net profit of 1.878 billion yuan, a year-on-year decrease of over 30%. Market analysis believes that the main reason for the decline in profits is that the demand for new crown vaccines has decreased with widespread vaccination. Zhifei Bio is currently the exclusive agent for Merck to import HPV vaccine. Affected by the HPV vaccine clinical consultation draft that may promote the listing of domestic vaccines, Zhifei Bio closed down 10% today, and once fell more than 17% during the session.
Changed the location of Musk’s Twitter personal page to Twitter headquarters.
On October 26, Musk appeared at Twitter headquarters and told employees that he did not plan to lay off 75% of the workforce after taking over the company. He changed his Twitter account profile to “Chief Twit”, targeting Twitter headquarters. Musk may follow through on a planned full $44 billion acquisition by Friday’s deadline. One condition of his proposed re-acquisition of Twitter in early October was access to bank financing debt, which seven banks, led by Morgan Stanley, are now ready to fund. Musk has promised to help the bank market the product after the deal closes, the people said.
One year after Facebook changed its name to Meta, its market value fell by $550 billion.
Due to the impact of Apple’s privacy regulations, the decline of Meta’s advertising business is not unexpected. Net profit in the third quarter was US$4.394 billion, which was halved from the same period last year. But the Metaverse’s huge losses still make investors uneasy. The Meta Metaverse lost $3.672 billion in the third quarter, with a cumulative loss of $9.4 billion this year. Shares in the company tumbled 24% after the earnings report.
Zuckerberg’s rebranding of Facebook last year as Meta, a sign of his commitment to the cause, came at the cost of the company’s market value dropping by about $550 billion a year. Zuckerberg said that in 2023, the loss of the Metaverse will expand, but it will still increase investment in it, focusing on priority projects.
Legend: Meta’s market capitalization fell from $900 billion on October 29 last year to $348.8 billion today.
Boeing munitions lost $2.8 billion amid turmoil.
Boeing’s third-quarter revenue was $15.956 billion, a year-on-year increase of 4.44%; a net loss of $3.275 billion was much higher than the $109 million in the same period last year, mainly due to a loss of $2.8 billion in the military business of the modified aerial tanker KC-46 and Air Force One projects. . Commercial aircraft revenue rose 40% year-over-year thanks to the resumption of deliveries of the 787 and 737. In addition, Boeing cut 737 MAX deliveries for the second time this year as supply chain disruptions and labor shortages impacted engine deliveries.
The privatization of Tod’s Group failed, but the founding family has not given up.
According to media reports, the privatization application of the founder family of Italian luxury goods group Tod’s failed. In August this year, the Della Valle family, which held 64.5% of the shares, proposed to buy back 25.55% of the shares at 40 euros per share, but the purchase price per share was too low to meet the 90% shareholding threshold required for privatization. The latest plan is to delist Tod’s by merging it into family firm DeVa Finance within six months of the closing of the takeover offer.
Samsung is one of the few semiconductor companies that has stuck to its established capital spending plans.
Dragged down by weak demand for memory chips, Samsung Electronics’ third-quarter net profit was 9.39 trillion won (about 46.34 billion yuan), down 23.6% year-on-year. Even so, Samsung is currently one of the few chip manufacturers that seems to be expanding against the trend. The company said that it does not consider artificially reducing production or reducing capital expenditures in order to balance supply and demand in the short term. Perhaps in order to better cope with the current harsh environment, at the board meeting where the third quarterly report was released, Lee Jae-yong unexpectedly took office as chairman of Samsung Electronics ahead of schedule. He was jailed for bribing former South Korean President Park Geun-hye before being pardoned by the Yoon Seok-hye government in August.
Meiman Electronics lays off staff in China.
According to a report from Jiwei.com, Marvell, the world’s sixth-largest chip design company, will lay off staff in China. Previously, Meiman Electronics had nearly 1,000 employees in China, and its Shanghai R&D center was the third largest in the world after the Silicon Valley headquarters and Israel. This will be the third overseas chip manufacturer to lay off large-scale layoffs in China this year after Micron and Texas Instruments. In addition, South Korean chip giant SK Hynix also said this week that it would not rule out the worst plan to sell its Chinese factories in the future.
German chemical giant BASF has announced permanent cuts in European investments.
BASF announced that by 2024, it will reduce European expenses by 500 million euros every year through layoffs and other means. In the first nine months of this year, BASF’s European site costs reached 2.2 billion euros. Given that European spot natural gas prices are currently five to six times more expensive than in the United States, and that a return to previous levels is unlikely in the short term, BASF has been forced to adjust its production focus.
US GDP grew at an annualized rate of 2.6% in the third quarter.
According to data released by the US Department of Commerce, the US GDP in the third quarter was about 2.6% year-on-year (calculated based on the assumption that the growth rate of this quarter is maintained throughout the year). According to the “year-on-year” concept that China is used to, the US economy grew by 1.77% in the third quarter.
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