Wang Xing, Huang Zheng, and Lei Jun passively become “stock gods”
The infographic on the changes in the market value of the Chinese stock market made by “Golden Ten Data” has been widely circulated these days. The author pointed out that Apple’s $1.2 trillion two years ago was roughly equal to the combined market value of Alibaba, Tencent, Meituan, JD.com and Pinduoduo. Two years later, Apple’s market value is about 2.6 trillion US dollars, which is almost more than all the Chinese stocks (Hong Kong and US stocks) combined… Myself two years ago.
Investors often say that “it is better to sell than to buy”. Some Hong Kong and US stock companies sold stocks and raised huge sums of money before the market value fluctuated sharply. However, due to some subjective and objective factors, they restrained their investment, making the cash reserves at the moment equal to 1/3 of the listing value, passively becoming “stock gods”.
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If we only look at listed companies for the time being, the most daring to borrow money is probably Meituan. According to the statistics of “Waidian Finance”, between October 2020 and July 2021, Meituan raised more than 10 billion US dollars from the market by issuing senior notes, convertible bonds and rights issues:
- October 2020
- $7.5M Senior Notes, 2.125%, Due 2025
- $1.25 Billion Senior Notes, 3.05%, Due 2030
- April 2021
- $1,483.6M Convertible Bond, 0%, Due 2027
- $1.5 Billion Convertible Bond, 0%, Due 2028
- Placement of US$7 billion (Tencent subscribed for US$400 million)
When Meituan Dakai Dahe refinanced, it was also a window period for Chinese Internet companies to focus on overseas listings again. JD Logistics, Kuaishou, etc. debuted in Hong Kong stocks, and Bilibili, Xiaopeng, Baidu, etc. returned to Hong Kong for secondary listings.
Meituan had about $19 billion in cash and short-term investments at the end of 2021. It is now worth about $116.5 billion. They had planned to use the money to invest in community group buying, self-driving cars, drones and other projects.
Pinduoduo is also very good at timing, and its financing amount is smaller than that of Meituan, but it is aggressive. In October 2019, they successfully issued a 0% convertible bond with a scale of US$1 billion, due in 2024. In the following year, 0% convertible bonds and fixed increase will be issued. Just looking beyond 2020, the financing scale is about $7 billion:
- 2020.4
- $1.1 billion fixed increase
- 2020.11
- $2 Billion Convertible Bond, 0%, Due 2025
- $3.3 billion increase
- 2020.12
- A fixed increase of US$500 million.
The financing is for tens of billions of agricultural research projects. However, starting from the second quarter of 2021, Pinduoduo will shrink its marketing investment. R&D spending was limited, and in the last three months of last year, the trend of continuous growth in R&D investment for six consecutive quarters ended. At the end of 2021, Pinduoduo’s combined cash and short-term investments were about $14.5 billion. The market cap is now around $44 billion.
Both Meituan and Pinduoduo have raised a lot of money. When there is nowhere to spend, they will put it in the account or buy some relatively safe financial management. No repurchase, no dividends. And Xiaomi, which has also raised a lot of money, invested part of it in ecological chain companies, part of it to build cars, and a small part of it to buy back shares.
They issued $855 million in 0% convertible bonds (due 2027) in December 2020, and issued an additional $3.1 billion. In 2021, they increased the number of foreign investment enterprises by 80, and their R&D expenses increased by 45% to US$2.065 billion. In terms of repurchase, from March 2021 to April this year, Xiaomi has repurchased a total of about 7.7 billion Hong Kong dollars (about 980 million US dollars).
At the end of 2021, Xiaomi’s cash, financial assets and short-term investments totaled $14.2 billion. The market cap is now around $35.6 billion. (Gong Fangyi)
HKEx’s first-quarter IPO fundraising fell by 90% year-on-year
- The Hong Kong Stock Exchange posted a profit of HK$2.67 billion in the first quarter of this year, down 31% year-on-year, the biggest drop since 2016. The reason is a decrease in the number of IPOs and a drop in the volume of shares traded.
- According to Wind data, according to the listing date, a total of 16 companies were listed on the Hong Kong Stock Exchange in the first quarter of this year, compared to 32 in the same period last year; The quarterly transaction value was approximately HK$8.9 trillion, a year-on-year decrease of 34.7%.
- In the past ten years, HKEx has been actively connecting the Chinese mainland market. On the one hand, it is to continuously restructure to attract mainland companies to list in Hong Kong and embrace the return of Chinese stocks.
- High-quality companies attract more capital, and abundant capital in turn attracts more companies to go public. In the first quarter of last year, the Hong Kong Stock Exchange ushered in the most glorious moment. In the new stock market, Chinese concept stocks such as Baidu, Kuaishou, and Station B have returned to Hong Kong for listing. Investors also believe that these companies can bring returns, and the secondary market transaction volume has reached a new high. (Lin Guangying)
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New Oriental’s adult domestic test preparation business revenue in the first three quarters increased by 59% year-on-year
- In the third quarter of fiscal 2022 (December 2021 to February 2022), New Oriental’s net revenue was US$610 million, down 48% year-on-year.
- Among them, the net revenue of education programs and services was US$506 million, a year-on-year decrease of 54.1%.
- Quarterly operating costs and expenses were US$755 million, a year-on-year decrease of 30.6%; among which, the cost of revenue (faculty, venues, teaching materials, teaching equipment, etc.) decreased by 30.9% year-on-year to US$373 million.
- As of February 28, the total number of schools and learning centers was 847, compared with 1,625 a year earlier;
- Yu Minhong mentioned at the beginning of the year that 60,000 employees were fired last year.
- For the first nine months of fiscal 2022, total revenue was US$2.581 billion, a year-on-year decrease of 15.8%; operating loss was US$877 million, compared with a profit of US$220 million in the same period last year, mainly due to multiple one-time losses due to lease closures and layoffs.
- Yu Minhong, chairman and founder of New Oriental, said that the company is in the stage of business restructuring, and the prospects for the remaining major businesses are bright. For the first nine months of fiscal 2022:
- Revenue from domestic test preparation business for adults and college students increased by 59% year-on-year;
- Revenue from overseas test preparation and overseas consulting business increased by 15% year-on-year;
- Other new businesses under exploration include: non-disciplinary tutoring, study tours and research camps, college entrance exams, intelligent learning software and hardware, etc.
- Yu Minhong also posted today that New Oriental has a four-star hotel in Yanqing District, Beijing. It was originally bought as a training center for teachers and managers, and now it has begun to receive individual tourists. Earlier, it was regarded by relevant departments as a special hotel for the Winter Olympics. (Lin Guangying)
China’s cities and towns added 2.85 million jobs in the first quarter
- Lu Aihong, a spokesman for the Ministry of Human Resources and Social Security, said on April 27 that 2.85 million new jobs were created in cities and towns across the country in the first quarter.
- A year-on-year decrease of 4.04%.
- Converted to monthly, from January to March, 750,000, 880,000 and 1.22 million were added respectively. The gap between this year and last year is mainly reflected in March. 1.49 million were added last year. (Gong Fangyi)
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OTHER NEWS
The revenue of “Yuan Shen” is approaching 18 billion yuan.
Genshin Impact is an open-world role-playing game owned by Mihayou. It was released in September 2020. In the 18 months after its release, the mobile version has received 115 million downloads on the iOS app store and Google Play. According to data.ai estimates, since the launch of Genshin Impact, its global user spending has approached $2.7 billion, with China, the United States, Japan, South Korea and Germany being the largest markets for user spending.
Tencent Music and NetEase Cloud Music once again lead the battle due to copyright issues.
On the 27th, NetEase Cloud Music announced that it had formally sued Tencent, saying that Tencent’s products infringed copyright, and demanded that Tencent Music immediately stop unfair competition. Tencent responded that it will not fight and believes in the justice of the law. Previously, Tencent sued NetEase Cloud Music for a loss of 850,000 yuan due to the copyright issue of Jay Chou’s music. Last year, Tencent Music was punished for being suspected of monopoly. In July, it announced that it would officially give up its exclusive copyright. Netease Cloud Music CEO Ding Lei once publicly shouted to Tencent: “We saw the announcement of Tencent Music giving up exclusive music copyright, We are looking forward to it, This is It is a sincere and sincere decision that does not contain any positive or negative .”
Douban said that face recognition is only required in situations such as creating groups.
Douban has recently updated its personal information protection policy. There are reports that this means “Douban has opened the real-name registration system.” Douban responded that this update mainly affects overseas users; under normal circumstances, domestic users only need to bind their mobile phone numbers to register, and face recognition is only required when creating groups, etc. The purpose is to strengthen the main responsibility according to the law. , and stressed that the platform will not store face information. Half a month ago, Douban officially announced the suspension of seven question groups.
Meituan Maiyao launched “Find Medicines in the City” in Shanghai.
Users can click “Meituan Buying Medicine” on the Meituan/Meituan Takeaway App to find the medicines they need. According to the announcement, “Find Medicines in the City” has expanded the search range of conventional medicines from the past 3-5 kilometers to the 16 districts of Shanghai. If it is close to the merchant, it can be delivered directly; if it is displayed at the store, it will evoke the errand service. Meituan said the new features have yet to be perfected, and some orders may not be delivered in the same time as in the past.
Unexplained childhood hepatitis spread to Japan and Canada.
Unexplained acute hepatitis in children has occurred in Japan and Canada. To date, a total of 190 cases have been reported worldwide, of which 17 were severe requiring liver transplantation and 1 died; most of the infected were children under the age of 10. The Beijing Health and Health Commission also recently issued the “Notice on Strengthening the Treatment of Children with Pneumonia of Unknown Cause”, which caused speculation; the Health and Health Commission responded that there were no cases in Beijing, and the purpose was to remind relevant medical institutions to be more vigilant.
In the first quarter, the profits of industrial enterprises above designated size increased by 8.5% year-on-year, mainly due to the mining industry.
According to the National Bureau of Statistics, from January to March this year, the profits of industrial enterprises above designated size were 1,955.57 billion yuan, an increase of 8.5% year-on-year. Among them, the most upstream mining industry has a total profit of 383.5 billion yuan, a year-on-year increase of 148%; electricity, heat, gas and water production and supply industry is 98.25 billion yuan, down 30.3%; the manufacturing industry has a total profit of 1,473.81 billion yuan, a year-on-year decrease of 2.1%.
LG New Energy currently has a backlog of battery orders of 240 billion US dollars, and its share may catch up with the CATL era.
LG New Energy expects revenue of $3.44 billion from January to March this year, down 2.2% month-on-month; partly because of the priority to replace and recall batteries; in addition, many car companies have reduced production due to chip shortages, supply chain disruptions and other factors, which also reduced battery output. goods; however, strong demand from Tesla offset some of the impact. The management said that the current battery backlog reached 300 trillion won (about 240 billion US dollars), and it plans to invest 5.55 billion US dollars this year to build factories in the United States and China to further expand electric vehicle battery production capacity.
GM and Mercedes-Benz overcome supply chain problems by raising prices.
GM and Mercedes-Benz continued to face problems such as chip shortages, supply chain disruptions, and rising costs in the first quarter of this year, but both achieved performance growth by increasing prices and selling more expensive models. Mercedes-Benz’s first-quarter deliveries decreased by 10%, and adjusted EBIT increased by 11% year-on-year to 5.54 billion euros; GM’s net income increased, and net profit fell 2.7% year-on-year to $2.94 billion, still significantly higher than market expectations of $2.45 billion .
Toyota’s global production hit a record monthly high in March.
Toyota released a report that in March global production increased by 2.8% year-on-year to 866,000 units, setting a new monthly high. However, Toyota’s domestic production in Japan fell 16% to 262,000 vehicles. Toyota said it was due to weak domestic consumption in Japan, coupled with plant shutdowns that month due to cyberattacks on suppliers.
American luxury electric car company Lucid has won an order from the Saudi government for up to 100,000 electric cars.
Lucid said the Saudi government has agreed to purchase at least 50,000 electric vehicles over the next 10 years, and possibly up to 100,000. Orders are traded at market prices, and delivery is expected to start next year at the latest; Lucid expects to produce 12,000-14,000 electric vehicles this year, and the current flagship Lucid Air sells for $169,000 each. The Saudi sovereign wealth fund holds a 62% stake in Lucid, and Lucid also plans to build its first overseas factory in Saudi Arabia, with an estimated annual output of 150,000 units.
Tesla lost 3 Twitters a day.
Tesla shares fell 12 percent on Tuesday after Musk and Twitter announced a deal, wiping roughly $125 billion off its market value. In addition to the overall market downturn, the market is also concerned that Twitter will distract Musk. Since Musk disclosed that he has become Twitter’s largest shareholder in early April, Tesla’s stock price has fallen by 19%, and Twitter’s stock price has risen by 26.4%. The latest market value is $905.8 billion and $37.9 billion, respectively.
The slump in A-shares and H-shares pushed 81,000 wealthy Hong Kongers out of the multi-millionaire ranks.
According to a Citibank report, in 2021, there will be 433,000 millionaires in Hong Kong with net assets exceeding HK$10 million, 81,000 less than the same period last year. The report explained that it was affected by objective factors such as the sharp fluctuations in Hong Kong stocks and A-shares last year; more than 30% of the respondents said that stocks were the main source of losses in their investment portfolios.
Cross-border consumption rebounded, and Visa, the world’s largest credit card company, saw a surge in quarterly revenue.
From January to March this year, Visa’s revenue increased by 25% year-on-year to $7.2 billion, and cross-border transaction volume increased by 38% year-on-year. Among them, regions outside Europe increased by 47% year-on-year, becoming the main force driving revenue growth. The reason is that with the relaxation of epidemic prevention and the reduction of confirmed cases in the United States, consumers are more willing to travel abroad for shopping. Management expects the Eastern European event to cost 4% of full-year revenue, but has yet to see a material impact on cross-border travel in the rest of Europe.
Growth has slowed, and well-known retail brokerage Robinhood plans to cut 9% of its workforce.
Robinhood said the company has experienced rapid growth and large-scale hiring over the past two years, with the number of employees growing to 3,800 from 700 in 2019, resulting in overlapping jobs and reduced efficiency; it plans to lay off 9% of its workforce. Robinhood has attracted many small accounts to sign up to trade with its zero-commission strategy in the past, with a median customer balance of just $240 as of last year. U.S. retail investors have seen a marked decline in stock trading volumes this year.
American toy maker Mattel is considering a sale.
According to media reports, Mattel is considering a sale and has held talks with private equity firms Apollo Global and L Catterton, respectively, but both are at an early stage and may not reach an agreement. Mattel said at the beginning of the year that it had completed the transformation, including laying off 1/3 of its employees, transforming the supply chain, and regaining the authorization of the Disney Princess IP. Last year, its performance resumed growth, but the stock price remained unchanged. Mattel was valued at about $8 billion as of Tuesday.
Heatwave in India reduced wheat production.
Some key wheat-producing regions in northern and central India are expected to see temperatures of up to 38-48 degrees Celsius this week, and if the wheat is in “grain filling” (the final stage of growth), yields will be severely affected. Local research institutes estimate a 15%-20% reduction in production in various production areas, and some farmers even reported a 60% reduction in production. India, the world’s second-biggest wheat producer, had previously forecast a bumper harvest this year that could cushion wheat losses in Russia and Ukraine.
The above newsletter is provided by Lin Guangying and intern Yi Silin
This article is reprinted from: https://www.latepost.com/news/dj_detail?id=1121
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