China business report

Key Takeaways Analysts estimate adjusted EPS of RMB14.42 ($2.23) vs. RMB14.82 in Q1 FY 2021. Annual active consumers in China are expected to rise YOY. Revenue is expected to rise amid the Chinese government's crackdown on big tech. Alibaba Group Holding Ltd. ( BABA ) has not gone unscathed by the broad selloff in Chinese technology stocks. The sector shed hundreds of billions of dollars in market value in July amid a campaign by the Chinese government to rein in the power and influence of the country's tech giants. As part of the big tech crackdown, Alibaba was slapped with a fine worth $2.8 billion earlier this year for abusing its dominance over rivals and vendors on its e-commerce platforms. Investors will get a chance to focus on Alibaba's recent financial performance when it reports its Q1 FY 2022 earnings on August 3, 2021—the company's fiscal year ( FY ) ends in March. Analysts expect adjusted EPS to decline for the first time in at least four … [Read more...] about Alibaba Q1 FY 2022 Earnings Report Preview: What to Look For

- A + A KUALA LUMPUR (May 26): Sunway Bhd’s first quarter net profit ended March 31, 2022 (1QFY22) soared 140% to RM140.11 million from RM58.45 million in the same quarter last year on the back of higher revenue due to stronger operating performance from most business segments, except trading and manufacturing. As a result, earnings per share rose to 2.39 sen from 1.01 sen previously. Revenue grew 31.48% to RM1.11 billion from RM846.11 million a year earlier, Sunway’s bourse filing on Thursday (May 26) showed. Sunway’s property development segment reported a 13.2% year-on-year (yoy) increase in profit before tax (PBT) to RM23.41 million, due to higher progressive profit recognition from its Singapore private condominium projects, which offset lower profit contribution from local development projects. The property investment segment posted PBT of RM45 million from loss before tax of RM16.96 million in 1QFY21 on higher visitorship to the theme parks and higher … [Read more...] about Strong performance from business segments lifts Sunway’s 1Q earnings by 140% to RM140 mil

The listing transaction includes Lotus Technology. - A + A (May 26): ECARX Holdings Inc, the automotive tech firm backed by billionaire Li Shufu, agreed to go public through a merger with blank-check company COVA Acquisition Corp. in the largest Chinese listing in the US since Didi Global Inc. The deal values the combined company at about US$3.8 billion, according to a statement Thursday, which confirmed an earlier Bloomberg News report. The transaction includes a US$45 million investment from Li’s automobile giant Zhejiang Geely Holding Group Co, Luminar Technologies Inc and Lotus Technology. Geely is an existing investor in ECARX. ECARX would be the largest Chinese company to list in the US following Didi’s spectacular failure. The ride-hailing giant is set to delist from the New York Stock Exchange after proceeding with its IPO last June over Chinese regulators’ objections and becoming a victim of the country’s cybersecurity crackdown. Didi has lost about … [Read more...] about Tycoon SPAC deal to create China’s biggest US listing since Didi

The Chinese Embassy attempted to spin their concentration camps and genocide of Uyghurs and other ethnic minorities as progress after The Daily Caller News Foundation reported on hacked Xinjiang police files Wednesday. “The issue Xinjiang faces is not about ethnicity, religion or human rights,” Liu Pengyu, spokesperson for the Chinese Embassy, told TheDCNF. “Rather, it is about fighting violence, terrorism and separatism.” TheDCNF received an over 600-word email response from Liu after sending the Chinese Embassy questions related to the recently hacked documents found within Xinjiang police network computers obtained by Dr. Adrian Zenz , senior research fellow at the Victims of Communism Memorial Foundation. Without directly addressing China’s concentration camps, Liu defended China’s practices, saying that “[t]he people of Xinjiang have been working hard together and have achieved a historic transformation.” “Thanks to the preventive counter-terrorism and de-radicalization … [Read more...] about We Reported On Leaked Docs About China’s Genocide. The Chinese Embassy Sent Us An Eye-Opening Response

Jack Ma - A + A (May 26): Billionaire Jack Ma’s Ant Group Co. saw profit inch up in the three months to December, despite setbacks from regulatory overhauls taming the country’s fintech industry. The Hangzhou-based company contributed 7.28 billion yuan ($1.1 billion) to Alibaba Group Holding Ltd.’s earnings, a filing showed Thursday. Based on Alibaba’s one-third stake in Ant, that translates to an estimated 22.05 billion yuan in profit for Ant’s December quarter, or an 1.3% increase from a year earlier. Ant’s earnings lag a quarter behind Alibaba’s. Ant in March declared a dividend of about 3.9 billion yuan to its backers. But shareholders -- including scores of employees -- of two entities that held 50.52% of Ant pledged to keep the dividend within the firms to “better support the company as it moves forward with its business rectification and facilitate its long term sustainable development,” a company spokesperson said in an e-mailed response. Jack Ma … [Read more...] about Jack Ma’s Ant ekes out profit rise as fintech overhaul advances

- A + A PETALING JAYA (May 26): Capital A Bhd reported a net loss of RM1.077 billion in the quarter ended March 31, 2022, which was a 10.35% larger loss compared with the corresponding quarter, despite its group-wide revenue more than doubling on a year-on-year basis. The larger losses were attributed to higher operation costs on fuel and maintenance, as well as a share of loss of RM143.1 million from an associate, following the completion of the restructuring and recapitalisation plan of the associate, the group stated in its financial result announcement on Thursday (May 26). Consolidated revenue of the group during 1Q2022 was RM812 million, which was 153% higher y-o-y, as aviation revenue grew 226% y-o-y to RM601 million off the back of the improved demand during the festive season together with the further easing of travel restrictions during the quarter. Capital A saw improvements in all of its businesses during the quarter under review on a y-o-y basis. Its … [Read more...] about Capital A’s net losses widen in 1QFY22 despite higher revenue

- A + A NEW YORK/BENGALURU (May 26): US stock indexes climbed in a broad-based rally on Thursday after upbeat annual forecasts from several retailers, while data confirmed the US economy contracted in the first quarter, easing concerns about aggressive interest rate hikes. All of the 11 major S&P sectors advanced, with consumer discretionaryup 4.1%, followed by a 1.9% rise in the financials sector. The small-cap Russell 200 index added 2.1%. Macy's Inc surged 16.2% after the department store raised its annual profit forecast, as party-wear demand rebounds. Dollar General Corp and Dollar Tree gained 11.7% and 18.4% respectively, after lifting their annual sales forecasts, as more Americans turn to discount store shopping with inflation at a four-decade high. Meanwhile, the Commerce Department's report showed US GDP fell at a 1.5% annualized rate last quarter, amid a record trade deficit and a sequential decline in the pace of inventory accumulation. The … [Read more...] about Wall Street surges on upbeat forecasts from retailers, Fed relief

- A + A (May 26): Alibaba Group Holding Ltd’s quarterly revenue rose a better-than-expected 9%, reassuring investors trying to come to grips with the economic cost of sweeping lockdowns intended to eradicate Covid-19. But China’s e-commerce leader also refrained from offering its usual outlook for the year, underscoring the unpredictable impact of a Covid Zero policy that’s already cast the country’s supply chains into disarray and hammered consumer sentiment. Alibaba — a barometer for Chinese consumer sentiment because of its dominance of Asia’s largest retail arena — is grappling with intensifying competition and mounting economic uncertainty at home. This week, Chinese Premier Li Keqiang warned of dire consequences if officials didn’t move decisively to safeguard the economy. Alibaba will play its part in helping shore up the economy, Chief Executive Officer Daniel Zhang told analysts on a post-earnings conference call. The company’s own revenues had slid by a … [Read more...] about Alibaba’s sales beat estimates, eases fears of Covid’s economic fallout

- A + A (May 26): Japan is set to allow in some package-tour tourists from overseas starting June 10, Prime Minister Fumio Kishida said Thursday, ending a ban that was introduced about two years ago as part of the country’s virus control programme. “Active exchanges between people are the foundation of the economy and society,” Kishida said in a speech at the Future of Asia conference in Tokyo. “From the 10th of next month we will restart the admission of tourists on guided package tours.” He added that preparations would begin to allow international flights to land at New Chitose airport in Hokkaido and Naha airport in Okinawa starting in June. Tourist numbers are likely to remain limited at first. Japan has already announced it will double its cap on arrivals from overseas to 20,000 a day starting next month, though this remains far below the levels seen before the pandemic. Kishida pledged in a London speech to make it as easy to enter Japan as other Group of … [Read more...] about Japan to start reopening to foreign tourists from June 10

The head of the World Bank Group issued a serious warning about the financial future of the globe Wednesday. World Bank Group President David Malpass said during a business event organized by the US Chamber of Commerce that he felt it was difficult to “see how we avoid a recession,” according to the BBC. (Disclosure: David Malpass is married to Daily Caller News Foundation President Adele Malpass). Several factors contributed to Malpass’s dire warning, including coronavirus lockdowns in China, dependence on Russian oil and gas, shortages in fertilizer, food and energy in the developing world, the BBC continued. “As we look at the global GDP [Gross Domestic Product] … it’s hard right now to see how we avoid a recession,” Malpass said, according to the BBC. GDP took an unexpected nosedive in April, shrinking for the first time since the start of the pandemic. ‘Put On Your Seat Belts On’: BlackRock President Warns Of Massive Shortages Due To Inflation https://t.co/ZbFkqFkrHm … [Read more...] about World Bank Boss David Malpass Gives Major Warning About Global Economy