Chinese Economic Weekly Review - Jul.9~Jul.15
The must-see weekly hotspots of China's economy, all here for you!
KEEP goes public in Hong Kong with an IPO offering price of HKD 28.92 per share
On July 12th, after three attempts, sports technology company Keep successfully debuted on the Main Board of the Hong Kong Stock Exchange with an initial public offering (IPO) price of HKD 28.92 per share. The stock opened at a 4.77% increase over the IPO price on the first day of trading, reaching a market capitalization of approximately HKD 15.9 billion. At one point during the trading session, the stock surged over 10% to HKD 32 per share. By the close of the market, Keep's shares settled at HKD 29, corresponding to a market capitalization of HKD 15.24 billion, equivalent to approximately RMB 13.993 billion.
As a highly anticipated unicorn company in the primary market, Keep has received substantial support from various domestic and international venture capital and private equity firms, including BAI Capital, GGV Capital, Five Capital, Tencent Investment, Coatue Management, and SoftBank Vision Fund.
MJ Comment: In my opinion, it is advisable to approach vertical-sector companies like Keep with caution. While they may gain a significant market share in the fitness industry in the future, their revenue structure model is not particularly favored by the capital market. After all, there is a difference between the Hong Kong stock market and Nasdaq.
Samsung Electronics may experience a rebound after hitting bottom
According to Samsung Electronics' financial report, the company's operating profit for the second quarter of this year is expected to be KRW 6 trillion (approximately CNY 1 equals KRW 179), a year-on-year decrease of 95.74%. During the same period, the sales revenue amounted to KRW 60 trillion, representing a decrease of 22.28%. In the persistently sluggish semiconductor industry, Samsung Electronics has witnessed a sharp decline in revenue, marking its lowest record since the fourth quarter of 2008.
However, surprisingly, Samsung Electronics' performance exceeded market expectations. According to financial information company FnGuide, industry analysts speculated that Samsung Electronics' sales revenue and operating profit for the second quarter were KRW 61.86 trillion and KRW 2.818 trillion, respectively. Based on these figures, although Samsung Electronics' second-quarter sales revenue fell short of expectations, its operating profit exceeded market expectations by twice the anticipated value. The general opinion in the Korean securities industry is that the semiconductor industry's downturn in the first half of the year has become a certainty, and Samsung Electronics' performance has fully met the expectations of the securities market.
MJ Comment: It remains to be seen whether the prices of flash memory will rise after Samsung leads the production cut. Chinese consumers have enjoyed the benefits of significantly reduced prices for solid-state drives in the first half of this year.
Honor Magic V2 Series Officially Released, Redefining the Foldable Flagship Standard
Honor has officially launched its new generation of foldable flagship, the Honor Magic V2. Honor CEO, Zhao Ming, stated, "Through technological innovation that breaks through conventional thinking, Honor has provided a new design concept for the foldable screen category, breaking the boundaries between flat-panel and foldable devices."
In terms of product specifications, the Honor Magic V2 brings foldable screen thickness into the "millimeter era," with a thickness of only 9.9mm when closed and 4.7mm when unfolded. It weighs merely 231g, providing a portable experience comparable to non-foldable devices.
Regarding the future foldable smartphone market, Zhao Ming expressed that the global smartphone market size is around 1.2 billion units, and China's smartphone market size last year was around 270 million units. It is highly likely to remain relatively stable this year. For the future, he hopes to transform foldable smartphones from a new track into a mainstream one.
MJ Comment: I am astonished that a foldable screen smartphone can achieve a weight of only 231g, and it has achieved this without sacrificing wireless fast charging... I'm truly amazed.
State Council Meeting: China is in a Critical Phase of Economic Recovery, Energy and Power Supply Must be Ensured
According to Caixin, Premier Li Keqiang presided over an executive meeting of the State Council to listen to a report on the energy and power supply security during the peak summer period. The meeting emphasized that ensuring a stable and secure energy and power supply is a matter of national importance and people's livelihoods. Currently, China is in a critical phase of economic recovery and industrial upgrading. All relevant parties should fulfill their responsibilities and work together to ensure energy and power supply with a sense of responsibility to provide reassurance at all times.
MJ Comment: The power rationing during the past two summers was a significant concession made for carbon emissions. Now that the pandemic is receding, it is time to seize every opportunity to boost the economy!
Beijing Launches Commercial Pilot of "Driverless" Autonomous Driving
On July 7th, at the opening ceremony of the 2023 "Collaborative Future" Autonomous Driving Future City Carnival in Beijing, the Beijing Autonomous Driving Demonstration Zone Office officially announced the launch of a commercial pilot for "driverless" intelligent connected vehicles in Beijing. Based on the newly revised industry policies, companies that meet the corresponding requirements will be able to provide regular autonomous driving pay-per-use services to the public in the demonstration zone.
MJ Comment: I believe this is a significant signal regarding the release of autonomous driving. Although it is uncertain whether it is related to Elon Musk's visit to China earlier, I expect that the areas where autonomous driving is allowed in China will become increasingly widespread within the next five years.