Original link: https://www.latepost.com/news/dj_detail?id=1771
At least 56 heads of private enterprises participated in a government symposium in July
For China’s private economy, there has always been a reference to “56789”, which is enough to explain its importance: it has contributed more than 50% of the Chinese economy’s tax revenue, more than 60% of GDP, more than 70% of technological innovation achievements, more than 80% of urban labor employment, and more than 90% of the number of enterprises.
However, in the first five months of this year, private industrial enterprises with an annual revenue of more than 20 million yuan were significantly weaker than state-owned enterprises and foreign capital in terms of profit margins, inventory pressure, and asset-liability ratio. Since the beginning of this year, the cumulative year-on-year growth rate of private fixed asset investment has continued to decline, and both May and June were lower than the same period last year.
The Politburo meeting held on July 24 pointed out the need to effectively optimize the environment for the development of private enterprises. And less than a week ago, China released the “Opinions on Promoting the Development and Growth of the Private Economy”, which put forward 31 opinions on promoting the private economy to become bigger, better and stronger.
This month alone, many ministries and commissions held symposiums with private enterprises, and mentioned the need to establish a normalized communication mechanism with enterprises. Anhui, Guangdong, Henan, Qinghai and other provinces and cities have also held symposiums with private enterprises. According to incomplete statistics from Wandian Finance, at least 56 heads or representatives of private enterprises participated in symposiums organized by the central or local governments this month:
Development and Reform Commission, Ministry of Industry and Information Technology
- On July 3, Zheng Shanjie, director of the National Development and Reform Commission, presided over a symposium with private entrepreneurs for the first time since assuming his new post. The heads of 5 private enterprises including Sany Group, Oaks, Yuantong, Bosideng, and Nongfu Spring attended the meeting;
- On July 10, Zheng Shanjie, director of the National Development and Reform Commission, presided over a symposium, Baidu, LONGi Green Energy, Jiminxin Pharmaceutical, Spring and Autumn Tourism, Donkey Meat Cao Catering and other enterprises participated in the symposium;
- On July 17, Zheng Shanjie, director of the National Development and Reform Commission, presided over a symposium, and the leaders of Transfar Group, Fangda Group, Feihe Dairy, Zhuoli Hanguang and other enterprises attended the meeting;
- On July 25, Cong Liang, deputy director of the National Development and Reform Commission, presided over a symposium, attended by 6 companies including Hengrui Medicine, NHU, NIO, Anta, TCL, and Jingye Group;
local government
- On July 9, the Anhui Provincial Development and Reform Commission held a symposium, attended by 6 heads of private enterprises including Huaqing High-Tech, Liv Bio, Zhongke Zhichi, Zhongke Puruisheng, Jitu Supply Chain, and Rongzhi Rixin;
- On July 10, Qinghai Provincial Development and Reform Commission held a symposium, attended by many private enterprises including Western Magnesium, Trina Solar, Kanghui International Travel Agency, Hillbilly Catering, 5369;
- On July 17, Liaoning held a breakfast meeting for representatives of private entrepreneurs in the province, and 25 private entrepreneurs attended the meeting;
- Guangdong and Hebei provinces also held symposiums for entrepreneurs this month, but did not mention the specific number of participating companies. (Lin Guangying)
Luxury Olympics, LVMH to sponsor the 2024 Paris Olympics
After months of discussions, LVMH announced on Monday that it has become the sixth local high-level partner of the Paris Olympic Games. The other five include Carrefour, pharmaceutical company Sanofi, and local banks, telecommunications companies, and power companies.
Antoine Arnault, the eldest son of LVMH chairman Bernard Arnault and director of the group’s public relations image, led the cooperation, “We don’t want to just provide sponsorship, we want to play a role in the hosting of the Olympic Games.”
According to the agreement, multiple brands under the group will be unveiled. LV, Dior, and high-end suit brand Berluti will participate in clothing design, jewelry brand Chaumet will be responsible for medal design, Moët Hennessy will provide champagne and wine for the event, and beauty retailer Sephora will cooperate with the torch relay. In addition, LVMH has finalized the sponsorship of French gold hopeful swimmer Léon Marchand.
It is reported that LVMH is expected to invest about 150 million euros for this, but has not yet received a response. Last year, LVMH’s global sales were 79.2 billion euros, its operating profit was 21.1 billion euros, and its advertising and marketing expenses were 9.5 billion euros.
Sporting events have a broad audience around the world. Moreover, the industry believes that, like luxury goods, sports actually advocate “rareness” and “excellence”, are good at telling stories, and can arouse people’s emotions.
LV has produced trophy boxes for the 4th World Cup in a row, and not long ago, it just signed the newly promoted Wimbledon champion Carlos Alcaraz as a brand ambassador. Tiffany created a Tiffany blue basketball for the NBA All-Star Game. Berluti, TAG Heuer, etc. have sponsored the F1 team. Dior designs uniforms for Paris Saint-Germain.
The cooperation between luxury brands and sports events has a long history. Rolex sponsors F1 teams, golf tournaments, and tennis tournaments. Watch brands Tudor and Panerai sponsor marine sports such as sailing. Dior, Fendi, Moncler collaborate with soccer teams. Gucci, Burberry, Loewes and others have all signed top athletes.
And top events like the Olympic Games are a good opportunity for brand marketing. It is rumored in the industry that the return on marketing investment in the Olympic Games is three times the daily level. In previous Olympic Games, lululemon, Ralph Lauren, Prada, Giorgio Armani and other big names designed team uniforms for their national athletes, which always sparked enough topic heat.
This time LVMH will go one step further. The industry believes that by officially sponsoring the Paris Olympic Games, LVMH will deepen its impression of France and distance itself from its competitors in terms of branding. Culture has always been a business card that France is proud of, and LVMH is a model of the combination of culture and business, and is currently the company with the highest market value in Europe. (Lin Guangying)
bye twitter
On July 24, local time in the United States, the Twitter website changed the iconic blue bird logo to “X”, which had been renamed “X” before.
Musk said the move was to reshape Twitter into a broad communications and financial transaction platform, a goal he described as a “universal app.” Twitter CEO Linda Yacarino also echoed that “X will include fintech features such as payments and banking.”
The market expects that Musk’s move is equivalent to overthrowing the brand equity accumulated by Twitter for more than a decade, which may cause the platform to lose 4 billion to 20 billion US dollars in brand value. Changing the logo also has potential copyright disputes. Meta has previously registered an “X” trademark in relation to “Online Social Networking Services” and “Social Networking Services in the Fields of Entertainment, Games and Application Development”. Meta’s “X” looks like two circular arrows, one white and one blue, while Twitter’s “X” is black and white.
Since the acquisition of Twitter last year, Musk has carried out a series of “suicidal” transformations on the originator of the social platform, including delisting from the New York Stock Exchange, retiring management, and large-scale layoffs.
Not long ago, Twitter announced that it would limit the number of private messages that users read each day, which undoubtedly plunged itself into a user crisis and scared away advertisers. Twitter’s ad revenue has dropped more than 50% since October.
Other platforms are trying to attract users who don’t want to be on Twitter. In addition to Zuckerberg-controlled Instagram doing Threads, TikTok has also begun testing the text-only posting function. However, according to the data provided by the data statistics platform Sensor Tower, the daily activity of Threads dropped by 70% in the second week of its launch. (Intern Chen Yutong)
Global capital market pending investment funds and unexited assets hit new highs
According to the latest report by the consulting firm Bain, in the first half of this year, the global M&A fund transaction scale was US$202 billion, a year-on-year decrease of nearly 60%.
The source of the lukewarm trading comes from a weak macro economy. Bain noted in the report that ongoing volatility and economic uncertainty has divided buyers and sellers over the true value of assets.
Difficulties in fundraising and tightening exit environment have intensified investment institutions’ emphasis on liquidity.
Based on the data of the first quarter, Bain predicts that syndicated loans for large-scale leveraged buyouts in 2023 will drop by 64% year-on-year; in the first half of this year, the funds raised by global private equity companies fell by 35% year-on-year to US$517 billion, and many of these funds were launched in the past two years when the environment was relatively loose. The current real financing environment will only get worse.
In addition to the record amount of unexited assets, the value of global M&A exits fell 65% year-on-year to $131 billion in the first half of this year. Generally speaking, private equity institutions will exit after holding a company’s shares for about 5 years, and now the assets that have been held for more than 6 years have accounted for nearly a quarter of the total.
One of the combined results of these factors is that companies need to have better profitability in order to get money from investors. In the past ten years, the strategy of using rapid growth in scale and income to increase its value has been difficult to work in the current market environment. (Qiu Hao)
“Pabpenheimer” breaks post-epidemic North American box office record
According to data from the box office tracking website Box Office Mojo, the total box office of the North American film market reached 311 million US dollars last weekend, setting a new post-epidemic record and ranking fourth in the entire film history (not considering inflation).
Among them, “Barbie” won the first weekend box office with 145 million US dollars, “Oppenheimer” gained 82.4 million US dollars, and “Mission: Impossible 7”, which was released for two weeks, ranked third with 21 million US dollars at the weekend box office. Fans of “Barbie” and “Oppenheimer” collectively referred to the two films with very different tones and styles as “Barbenheimer” on social media, and used AIGC tools such as Midjourney and Gen 2 to create posters, teasers and promotional videos that combined elements of the two.
Neither film is a Hollywood commercial blockbuster in the traditional sense. “Oppenheimer” is a biopic about the “father of the atomic bomb” Robente Oppenheimer, and it is classified as restricted (R) because it contains nude scenes; although “Barbie” was born out of the well-known IP “Barbie”, the core of the film is about serious “feminism” topics.
“Barbie” and “Oppenheimer” also rewrote the practice of a single blockbuster dominating the box office. For the first time, the North American film market did not rely on “Star Wars” or “Reunion” to earn more than 300 million US dollars at the weekend box office. (Qiu Hao)
Early IPO Know丨Hua Hong Company will apply for subscription today, the largest A-share IPO of the year
Two companies subscribed for A shares today:
- Hua Hong Company: The second largest wafer foundry in mainland China, second only to SMIC, has advantages in power devices, MCU and other subdivisions. It has been listed in Hong Kong before. Recently, there are market rumors that it will take over a 12-inch wafer foundry in Chengdu that has been shut down for five years. From 2020 to 2022, Huahong’s operating income will be 6.737 billion yuan, 10.630 billion yuan, and 16.786 billion yuan, respectively, and the corresponding net profits attributable to the parent after deducting non-existing expenses will be 181 million yuan, 1.083 billion yuan, and 2.570 billion yuan, respectively. The performance has maintained rapid growth. It plans to raise 21.203 billion yuan. The issue price is 52 yuan, corresponding to a price-earnings ratio of 34.71 times and a price-to-book ratio of 2.19 times.
- Minbo Optoelectronics: mainly engaged in the R&D, design, manufacture, sales and service of LED lighting products, and provides ODM products in the field of commercial lighting and industrial lighting. In 2020, 2021 and 2022, Minbao Optoelectronics will achieve operating income of approximately RMB 1.059 billion, RMB 1.497 billion and RMB 1.465 billion respectively. The company’s net profit is about 174 million yuan, 168 million yuan, and 245 million yuan respectively. It is planned to raise 1,335,978,500 yuan. The number of issued shares is 26.17 million shares, priced at RMB 51.05 per share, and the price-earnings ratio is 25.16 times.
Two A-share companies listed today:
- Gangtong Medical: As of today’s close, Gangtong Medical reported 41.14 yuan, an increase of 32.03%, with a turnover of 673 million yuan, an amplitude of 36.39%, a turnover rate of 70.59%, and a total market value of 4.114 billion yuan.
- Foster: As of today’s close, Foster reported 40.58 yuan, an increase of 27.25%, with a turnover of 673 million yuan, an amplitude of 14.02%, a turnover rate of 65.89%, and a total market value of 3.246 billion yuan. (Intern Chen Yutong)
OTHER NEWS
CATL doubled its profit in the first half of the year, and its battery capacity utilization rate was 60.5%.
Ningde Times released its semi-annual report today. In the first half of the year, its revenue and profit were 189.246 billion yuan and 21.473 billion yuan, a year-on-year increase of 67% and 122%, respectively. Converted, the revenue and profit in the second quarter were 100.2 billion yuan and 11.393 billion yuan, a year-on-year increase of 55.86% and 48.06%. In addition, CATL battery production in the first half of the year was 154 GWh, corresponding to a capacity utilization rate of about 60.5%.
The three major A-share stock indexes rose sharply at the opening, and the offshore RMB rose above 7.15 against the US dollar.
Today, the offshore RMB rose above 7.15 against the U.S. dollar, rising nearly 400 points within the day, setting a new high for more than a week. The three major A-share stock indexes opened sharply, with the Prev Index up 1.18%, the Shenzhen Component Index up 1.50%, and the ChiNext Index up 1.68%. A shares continued to move higher after opening higher, closing up 2.13%.
China concept stocks and Hong Kong real estate stocks increased their market value by US$40 billion and HK$200 billion respectively.
Overnight, Chinese stocks collectively rose sharply. The Nasdaq China Golden Dragon Index rose by about 4.27%, the largest increase in nearly 6 months, but it still fell 60% from the highest point. In terms of Hong Kong stocks, the Hang Seng Index closed up 4.10%. Among them, 20 stocks including China property stocks Country Garden, China Resources Land, and Vanke Enterprises all rose by more than 10%. Yesterday, the meeting of the Political Bureau of the Central Committee mentioned the need to “adapt to the new situation of major changes in the supply and demand of my country’s real estate market, adjust and optimize real estate policies in a timely manner, and make good use of the policy toolbox for city-specific policies.”
Large-displacement vehicles continued to sell well, and General Motors’ second-quarter results exceeded expectations, raising its annual profit target.
In the second quarter of this year, GM achieved revenue of US$44.7 billion and net profit of US$2.5 billion, both better than analysts expected. The traditional business in traditional regions — large-displacement SUVs and pickups in the U.S. market — continued to sell well and was the biggest driver of GM’s quarterly revenue and earnings beat. In the second quarter, GM’s North American vehicle sales increased by 25% year-on-year, while other regions decreased by 5% year-on-year. GM expects full-year net profit to be between US$9.3 billion and US$10.7 billion, compared with the previous range of US$8.4 billion to US$9.9 billion.
The Passenger Association expects retail sales of passenger vehicles to drop 4.8% YoY in July.
The Passenger Association said that under the influence of last month’s sales sprint and the high base in the same period last year, the national retail sales of passenger vehicles in the narrow sense in July this year are expected to decrease by 4.8% year-on-year to 1.73 million units. Among them, new energy vehicles are expected to retail around 620,000 units, a year-on-year increase of 27.5%.
Jiumaojiu expects to make a profit of 220 million yuan in the first half of the year, a sharp turnaround from the same period last year.
Jiumaojiu, the parent company of restaurant chains such as “Jiumaojiu” and “Taier Sauerkraut Fish”, expects to make a net profit of 220 million yuan in the first half of this year, a year-on-year increase of about 281%. The announcement also believes that the group’s business has recovered from the epidemic, saying that the number of operating stores has increased from 475 in the same period last year to the current 621.
The media said that TikTok intends to follow the example of Shein and Temu and launch cross-border e-commerce in the United States.
The source said that TikTok will go live in August at the earliest, and one of the purposes is to “replicate the success of Shein and Temu in the United States.” TikTok is likely to adopt the model of Amazon’s global store opening, providing one-stop services such as storage, transportation, marketing, trading, and after-sales.
Beijing Mayor Yin Yong had a discussion with Xiaomi Lei Jun, Ali Zhang Yong and others.
According to “Beijing Daily”, Yin Yong, Mayor of Beijing, had discussions with Xiaomi Lei Jun, Ali Zhang Yong, and Pony Zhixing Peng Jun respectively. Yin Yong said that he hopes that the majority of private technology companies will actively integrate into the construction of Beijing International Science and Technology Innovation Center, and deploy high-tech projects in combination with the capital’s functional positioning and needs.
GAC Toyota responded to the “layoffs” and said it was a normal phased adjustment that did not involve regular employees.
According to media reports, GAC Toyota recently laid off about 1,000 employees. The industry believes that this move confirms that Toyota is facing pressure from price wars and new energy vehicles in China. Toyota responded that the decision was made based on changes in the market situation and after careful consideration. The target of the layoffs is some labor dispatch employees. It has negotiated with the labor dispatch company to ensure timely and full compensation, and cooperated to recommend reemployment for the affected employees. Toyota’s sales in China fell 2.8% year-on-year in the first half of this year.
China is about to resume 15-day visa-free entry for citizens of Singapore and Brunei.
The Chinese embassies in Singapore and Brunei respectively announced that China will resume the unilateral visa-free policy for citizens of Singapore and Brunei on July 26. China once granted unilateral visa-free entry to these two countries and Japan, but this was stopped after March 2020 due to the COVID-19 pandemic. In addition, on July 24, the Politburo meeting of the CPC Central Committee mentioned that “increase international flights to ensure the stability and smooth flow of China-Europe trains.”
Altman’s “inclusive” cryptocurrency project Worldcoin was officially released.
On July 24 local time, Worldcoin, a cryptocurrency project co-founded by OpenAI CEO Altman, was officially launched, and the price of the currency rose by 111% on the first day. Worldcoin is an experimental project launched by Altman three years ago to allow ordinary people to share in the huge wealth created by AI. When users download and register Worldcoin, they can get a certain amount of digital currency WLD for free, but it can only be activated offline through iris scanning authentication (in order to confirm that the user is human and not AI). More than 2 million users have passed the verification on the day of launch.
Apple lowered its new iPhone shipment target, and the price of Pro models may increase.
According to media reports citing people familiar with the matter, Apple asked suppliers to produce about 85 million iPhone 15 series phones this year, slightly lower than the 90 million target in the previous two years. However, due to the lack of cores in 2021 and the interruption of production at the Zhengzhou factory in 2022, Apple did not complete the plan in the first two years. Against the background of the downward trend of the mobile phone market, Apple is still expected to continue to increase its market share this year. In addition, Apple is also considering raising the price of Pro models, so the overall revenue of the iPhone 15 series may be higher.
Vietnam’s macro data is hot, but some business owners said that “the economic situation is even more severe than the Lehman crisis in 2008.”
According to media reports, the Vietnamese government released macro data such as GDP and tourist arrivals in the second quarter showing signs of improvement, but the business community was skeptical. Some front-line enterprises reported that the economic situation is deteriorating, and there is a situation where “the numerical value makes people feel inconsistent with the situation”. Some analysts believe that Vietnam’s GDP data is habitually overestimated. Earlier, Vietnam’s General Statistics Office released GDP growth of 4.14% in April-June, faster than the 3.28% increase in the first quarter. According to Standard Chartered forecast, Vietnam’s April-June GDP growth rate is about 1.5%.
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