Original link: https://www.latepost.com/news/dj_detail?id=1350
All the money Tencent made in the first half of the year was used to buy back
This year Tencent has several things that qualifies as a “first.” For example, the year-on-year decline in revenue in the second quarter was the first time since its listing, the game version number obtained in September was the first time in more than a year, and the market value lost to Moutai was the first time since April 2009.
This month, Tencent set another “new record”—repurchasing shares worth 12.8 billion yuan in 39 consecutive trading days—the longest continuous repurchase amount and span. Counting the other three rounds of repurchase launched in January, March and June, Tencent has repurchased a total of 21.1 billion yuan this year.
- From 2005 to 2021, Tencent “only” repurchased 7.6 billion yuan.
- In the first half of 2022, Tencent’s net profit after deducting non-attributable to the parent company was 14.478 billion yuan.
At a time when the scale of repurchases hit a record high, Tencent’s share price return during the year recorded a new low since its listing. As of October 19, Tencent’s stock price has fallen 44.7% this year. For the upcoming third quarterly report, the market generally expects that revenue and profit will still decline by single digits year-on-year.
Thomas Chong, head of China Internet research at investment bank Jefferies, expects Tencent’s third-quarter revenue to drop 3% year-on-year to 137.8 billion yuan. Among them, mobile game revenue is expected to decrease by 7%, online advertising revenue is expected to decrease by 11%, and fintech revenue is expected to increase by 5%. Net income likely fell 4% to $30.4 billion. (Gong Fangyi)
Hong Kong Stock Exchange pulls new, no income can also
The third-quarter net profit of the Hong Kong Stock Exchange fell 30% from the same period last year to HK$2.26 billion (about 2.081 billion yuan).
Trading and settlement business is the largest source of income for HKEx, accounting for more than 60% of the total. The second is the listing service, which accounts for about 10%. In the third quarter of this year, Hong Kong stock trading revenue fell by 19.8% to HK$880 million. Listing revenue fell 5.25% to HK$4.15.
Hong Kong stock market sentiment recovered briefly in May and June, and then the turnover decreased month by month to less than HK$2 trillion in September. The total turnover in the third quarter decreased by 18.38% month-on-month. Retail investors and institutional investors wait and see, and corporate buybacks have become an important support for the market.
To attract more investors and listed companies, the Hong Kong Stock Exchange plans to set up offices in New York and Europe to grab business from the New York Stock Exchange, Nasdaq or London Stock Exchange. Last month, the China Securities Regulatory Commission said that multinational companies listed in Hong Kong can be included in the Shanghai-Hong Kong Stock Connect if they meet certain conditions.
At an earnings conference on October 19, HKEX CEO Nicolas Aguzin said the exchange is considering attracting technology companies that do not have revenue and profits but meet certain conditions to list on the HKEx. These companies include:
- Companies in the fields of new generation information technology, advanced hardware, advanced materials, new energy, energy conservation and environmental protection, new food and agricultural technology.
- Has been engaged in R&D for at least 3 fiscal years.
- If the revenue in the latest fiscal year reaches HK$250 million, the listing valuation is not less than HK$8 billion, and R&D investment accounts for at least 15% of operating expenses;
- If there is no revenue, the listing valuation should be no less than HK$15 billion, and R&D investment should account for at least 50% of operating expenses.
HKEx has consulted the market on the rules until December 18. Eurogamer said the adjustments could help the Hong Kong exchange attract more overseas and technology companies. He is also optimistic that there are signs of recovery in the IPO market, “We are in a good position to wait for market sentiment to recover.” (Gong Fangyi)
The UAE does not lose to Singapore in attracting overseas billionaires
A wealthy Asian country with diplomatic neutrality, low tax rates, and low crime rates – that would be Singapore or the United Arab Emirates.
More than 4,000 millionaires will flock to the UAE this year, according to immigration consultancy Henley & Partners, putting it on par with Singapore in the race for global wealth.
Rich people mainly go to the UAE to buy houses. According to the annual wealth report released by real estate consulting firm Knight Fran, prices in 100 luxury residential markets around the world will generally rise in 2021. Among them, the price of luxury residential properties in Dubai in the United Arab Emirates soared 44.4% during the year, ranking first in the world. In the third quarter of this year, residential prices in prime areas of Dubai rose by 29%. At the end of September, 152 super-luxury homes priced above $10 million were sold, up from 93 in 2021.
Looking at other luxury housing markets around the world, Singapore’s luxury housing transaction volume increased by 29.7% year-on-year in the first eight months of this year. The US luxury housing market is experiencing the largest decline in 10 years, with a year-on-year decline of 28% in the third quarter, including a 44.3% drop in Los Angeles and an 11.8% drop in New York. 294 luxury homes valued at £5m and above were sold in London in the first half of the year, the same number as all of 2019.
The driving force behind the rise in luxury property prices in Dubai comes from a variety of factors. Geopolitics has magnified the region’s long-term diplomatic neutrality, with Russian billionaires buying about 60 percent more luxury homes in Dubai in the first half of this year. In addition, Dubai only needs to pay a 4% transfer fee to buy a house, and high-net-worth individuals who invest 2 million dirhams (about 545,000 US dollars) to buy real estate can get a 5-year golden visa. (Intern Zeng Xing)
Netflix will no longer provide subscriber growth forecasts starting next year
In the third quarter of this year, Netflix’s revenue increased 5.9% year-on-year to $7.926 billion, while net profit fell 3.5% to $1.398 billion. Operating margin fell to 19.3% from 23.5% last year.
After losing subscribers for two consecutive quarters, Netflix added 2.41 million subscribers in the third quarter, more than double the previously expected increase, but still lower than the 4.38 million in the same period last year. Nearly 60% of the new subscribers came from the Asia-Pacific region. The company expects to add 4.5 million net subscribers in the fourth quarter, down 46% from the 8.3 million added in the same period last year.
Netflix has decided not to provide subscriber growth guidance starting next year as Wall Street largely looks at Netflix’s subscriber growth deal, sending shares tumbling.
Currently, the total number of Netflix users is 223.09 million, and the number of unsubscribed users is expanding quarter by quarter. According to data from Antenna, a third-party statistics agency, the average monthly unsubscribe volume of US users increased from 1.4 million in the second quarter to 1.5 million in the third quarter, while the average monthly unsubscribe volume last year was only 835,000. Netflix will launch a $6.99-a-month ad subscription next month while cracking down harder on shared accounts. (Intern Zeng Xing)
CHART OF THE DAY丨Returns of major global stock indexes (2011-2022)
Legend: The U.S. is based on the S&P 500, mainland China is based on the MSCI China Index, and the CSI 300 is denominated in USD. The rest are dollar-denominated gains and losses for the MSCI regional index.
OTHER NEWS
New local cases “50+48” in Guangdong Province.
- On October 18, 204 new local confirmed cases and 630 asymptomatic infections were added.
- Beijing added 34 local confirmed cases and 8 asymptomatic infections.
- As of 15:00 on the 19th, there were 12 new cases of local positive infections.
- In Shanghai, 1 new local confirmed case and 14 asymptomatic infections were reported.
- Guangdong newly added local confirmed cases “50+48”, of which Guangzhou added local confirmed cases “21+31”, Shenzhen added local “11+9”.
- Shaanxi added 20 new local confirmed cases and 40 asymptomatic infections.
- Inner Mongolia newly added local confirmed cases “24+52”, of which Hohhot added “8+24” and Baotou added “5+3”.
- Officials said that the two transmission chains of the current round of epidemic in Baotou City have been clarified, namely Omicron BA.5.2 and BF.7 variants.
- “10+21” new local confirmed cases in Henan, involving Zhengzhou, Hebi, Puyang and other places.
- Qinghai Province has had no new cases for 12 consecutive days, and officials said that this round of epidemics has been “cleared”.
Li Ning apologized for the controversial new product design and styling.
Li Ning issued a statement on the 19th to apologize for the confusion caused by the design and shape of some products of the “Dream Walk” show, and explained that the design of the “Dream Walk” show products was based on the theme of “flying” and was drawn from pilot equipment. inspiration. Among them, the most discussed flight cap designs are derived from ancient Chinese helmets, outdoor protective caps and cotton caps. The products are presented in a variety of colors and styles. At present, the flight cap is not produced and sold, and Li Ning said that it will not be in the future.
The Hong Kong SAR government has increased the maximum number of people in public gatherings to 12.
The Hong Kong SAR government announced on the 18th to relax some social distancing restrictions. From October 20th, the maximum number of people gathered in public places will be increased from 4 to 12 people. He also stated that in the future, he will closely observe the changes in the epidemic situation and the latest trends, and review the feasibility of further adjusting social distancing measures in a 14-day cycle.
Johnson & Johnson cuts full-year revenue guidance and considers layoffs.
Johnson & Johnson’s latest performance report shows that in the third quarter, revenue was US$23.791 billion, a year-on-year increase of 1.9%; net profit was 4.458 billion yuan, a year-on-year increase of 21.6%. The company also lowered its full-year revenue guidance as a stronger dollar and higher labor costs dented results. Johnson & Johnson is considering some layoffs as it faces economic pressures and plans to spin off its consumer products business. Earlier, Johnson & Johnson announced that it would split the consumer goods business, which is mainly engaged in maternal and child care and skin care, into a new listed company. Its brands include Neutrogena, Aveno, Johnson & Johnson Baby, and Bondi.
Yakult in Japan increased by 10%.
According to media reports, due to rising raw material and logistics costs such as sugar and fuel costs, coupled with the depreciation of the yen, Yakult announced that it will increase the prices of 48 soft drinks in Japan from next month, an increase of 5% to 10%.
Brazilian beauty group Natura plans to spin off Aesop.
Natura said the group plans to IPO in the United States or spin off the Aesop brand to raise funds for new expansion. Whether it’s an IPO or a spin-off, Aesop will continue to be led by current CEO Michael O’Keeffe. In the second quarter of this year, Natura’s revenue fell 8.6% year-on-year to $1.6 billion, with a net loss of $146 million.
SHEIN launched a second-hand platform.
Recently, SHEIN cooperated with resale technology platform Treet to launch SHEIN Exchange, which is used to buy and sell SHEIN’s second-hand goods. Users can access it through the SHEIN app and official website. This platform has opened up the previous purchase records of SHEIN users, and sellers can “one-click resell” products. Currently only available to U.S. customers, it plans to expand to other markets around the world next year.
Apple is cutting iPhone 14 Plus production.
The Information said that less than two weeks after the release of the iPhone 14 Plus, Apple began to cut its production, and has notified at least one Chinese manufacturer to immediately stop production of iPhone 14 Plus parts, and the procurement team will re-evaluate the demand for this product.
Danish police say a strong explosion caused the Nord Stream pipeline to leak.
Half a month after the investigation of the “North Stream” pipeline incident was launched, the Danish police said on the 18th that preliminary investigations showed that the North Stream pipeline leak was caused by a violent explosion. On the same day, the Swedish media released the video for the first time showing the situation of the leak point of the “North Stream No. 1” pipeline. At least 50 meters of the pipeline disappeared, and there were still traces of large-scale impact on the seabed around the pipeline.
United’s third-quarter profit nearly doubled as travel demand rebounded strongly.
United Airlines’ third-quarter revenue increased by 66.15% year-on-year to $12.877 billion, and its net profit was $942 million, a year-on-year increase of 99.1%. This was the best quarterly performance since the third quarter of 2019, when passenger traffic recovered to 90% of the same period in 2019. Delta Air Lines, which previously released results, recorded a quarterly high of nearly $14 billion in revenue in the third quarter.
Hollywood actress Anna May Wong became the first Chinese-American face to appear on U.S. currency.
According to media reports, on October 25 this year, the U.S. Mint will release a 25-cent coin featuring the portrait of Chinese-American actress Anna May Wong, paying tribute to her pioneering career in Hollywood racism, which is expected to be Issued more than 300 million pieces. She is one of five American women to be posthumously awarded the honor and will be the first Chinese-American face to appear on U.S. currency. As the first Chinese-American actress in Hollywood, she starred in dozens of films such as “Shanghai Express”, “Life” and “The Dead Sea”.
A rare pink diamond in Japan sold for about 24.21 million yuan.
According to media reports, the depreciation of the yen has attracted overseas investors to pay attention to Japanese gemstones. In mid-September, a 6.11-carat pink diamond sold for 530 million yen (about 24.21 million yuan) at the jewelry and watch auction hosted by the Daily Auctions. ) fell under the hammer, setting a record high for similar diamonds in Japan.
Foxconn’s long-term goal is to produce nearly half of the world’s electric new cars in the future.
On October 18, on the Hon Hai Technology Day, Foxconn released two electric new cars, Model V and Model B. Not only “hit the name” Tesla, but also the chairman of Hon Hai Group, Liu Yangwei, expressed his hope to have the opportunity to work for Tesla. Foxconn also said at the event that the company’s long-term goal is to produce nearly half of the electric vehicles sold globally in the future, and it will expand electric vehicle production in Thailand and the United States.
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