Today's Headlines

The Ministry of Finance and four other departments jointly issued a notice to improve the policy of downtown duty-free shops.

Recently, the Ministry of Finance, the Ministry of Commerce, the Ministry of Culture and Tourism, the General Administration of Customs, and the State Administration of Taxation issued the "Notice on Improving the Policy of Duty-Free Shops in the City", clearly stating that from October 1, 2024, the management of duty-free shops in the city will be regulated in accordance with the "Interim Measures for the Administration of Duty-Free Shops in the City" to promote the healthy and orderly development of duty-free shops in the city. According to the "Notice", the existing duty-free shops in Beijing, Shanghai, Qingdao, Dalian, Xiamen, and Sanya, with a total of 6, will be subject to the "Measures" from the date of the "Notice"; the existing 13 foreign exchange commodity duty-free shops in Beijing, Shanghai, Harbin, and others will transition to city duty-free shops within 3 months from the date of the "Notice", and will commence operations after passing the customs inspection. At the same time, 1 city duty-free shop will be established in Guangzhou, Chengdu, Shenzhen, Tianjin, Wuhan, Xi'an, Changsha, and Fuzhou, a total of 8 cities. According to the "Notice", if the 13 foreign exchange commodity duty-free shops can transition as scheduled and the 8 cities can establish shops smoothly, the number of city duty-free shops in China will increase from the current 6 to 27.

The "Measures" stipulate that the sales targets of city duty-free shops are passengers who will depart on air transportation or international cruises within 60 days. City duty-free shops operate by allowing passengers to make purchases in the city in advance, and then collect the purchased duty-free goods at the duty-free goods pick-up point located in the exit isolation area of the port. Passengers are required to carry the purchased duty-free goods out of the country in one go. City duty-free shops mainly sell consumer goods that are easy to carry, and encourage the sale of domestic trendy products. Also, characteristic products with independent brands that contribute to promoting excellent traditional Chinese culture are included in the business scope. The "Measures" also specify the management requirements for the establishment approval and determination of operating entities of city duty-free shops.

Outlook for the Future

The HSI ADR fell by 0.27%.

Overnight, the Dow Jones rose 9.98 points, up 0.02%, to 41,250.50; the Nasdaq rose 29.05 points, up 0.16%, to 17,754.82; the S&P 500 index rose 8.96 points, up 0.16%, to 5,625.80. Nvidia (NVDA.US) rose more than 1%.

The Nasdaq China Golden Dragon Index closed up 0.4%. Xpeng Motors (XPEV.US) rose 6.6%, JD.com (JD.US) rose more than 2%, Ctrip Group (TCOM.US) rose 8.5%. The Hang Seng Index ADR fell, closing at 17,825.73 points, down 48.94 points or 0.27% from the Hong Kong market close.

Hotspot Preview

Hong Kong Government Statistics Department: In July, Hong Kong’s overall export and import values ​​rose by 13.1% and 9.9% year-on-year, respectively.

According to the smart finance and economics APP, on August 27, the Hong Kong government's statistics department released statistics on foreign trade in goods. The data shows that in July 2024, Hong Kong's overall export and import values ​​both recorded a year-on-year increase, up 13.1% and 9.9% respectively. A spokesperson for the Hong Kong government stated that the export value of goods continued to grow at a double-digit rate in July 2024. Exports to the Mainland, the United States, and the European Union continued to expand significantly. At the same time, exports to other major Asian markets performed unevenly.

TCL Zhonghuan Silicon announced a price increase, with two major photovoltaic leaders also adjusting prices on the same day.

On August 27, market news stated that TCL Zhonghuan will increase the price of silicon wafers. After the adjustment, G10N will be priced at 1.15 yuan/piece, G12RN at 1.3 yuan/piece, and G12N at 1.5 yuan/piece. Earlier, Longi Green Energy confirmed to interface news that silicon wafers will increase in price, with N-G10L priced at 1.15 yuan/piece and N-G12R priced at 1.3 yuan/piece, with an average increase of 5 cents/piece.

JD Group (09618) announced a $5 billion share buyback plan.

JD Group announced on the evening of August 27th in the Hong Kong Stock Exchange that its board of directors has approved a new share buyback plan, which will take effect from September 2024. Under the new share buyback plan, the company can repurchase shares worth no more than 5 billion US dollars (including ADRs) within the next 36 months until the end of August 2027. The proposed share buyback by the company will be carried out based on market conditions, applicable rules and regulations, and may be conducted from time to time on the open market at the prevailing market price, through private negotiations, block trades, and/or other legally permissible means. The board of directors will review the share buyback plan on a regular basis and may authorize adjustments to its terms and scale.

China Circ (01763) completed the first domestic introduction and landing of the emerging therapeutic nuclide terbium-161.

As an emerging therapeutic medical radionuclide, Tb-161 has attracted the attention of researchers in the global field of nuclear medicine due to its appropriate half-life (T1/2 = 6.89 days) and good anti-tumor effect. Compared with the current star radionuclide in the field of nuclear medicine, Lutetium-177 (Lu-177), Tb-161 not only emits β-rays and γ-rays with suitable energy, but also emits Auger and Conversion electrons that exceed Lu-177 by 16 times. Due to the short range of these electrons in physiological tissues (0.5-30μm), it produces higher linear energy transfer (LET), resulting in three times higher cell absorbed dose than Lu-177, which makes it have a good anti-tumor effect on primary lesions and micro-metastatic lesions.

Xpeng Motors (09868): Successfully developed AI chips in-house, comparable to 3 mainstream autonomous driving chips.

On August 27th, Xpeng Motors announced that its self-developed Turing chip has successfully entered the production phase and can be applied to AI vehicles, AI robots, and flying cars. The company's disclosed information shows that the chip has two independent image signal processors (ISPs), and when applied to Level 4 autonomous driving vehicles, one Turing chip can achieve performance comparable to three mainstream intelligent driving chips currently available in the market.

Genscript Bio (01548): The new drug application for cilta-cel has been approved.

Genscript Bio (01548) announced that on August 27, 2024, the China NMPA has approved the New Drug Application (NDA) for Xidajialunsi (cilta-cel) submitted by its non-wholly owned subsidiary, Nanjing Legend Biotech Co., Ltd. The product has been approved for the treatment of adult patients with relapsed or refractory multiple myeloma who meet certain conditions.

CNOOC Oilfield Services (02883) reports its interim performance: shareholders' net income is 1.592 billion yuan, an increase of 18.9% year-on-year.

China Oilfield Services (02883) released its six-month performance report as of June 30, 2024, with operating income of 22.497 billion yuan, a year-on-year increase of 19.3%; the company's net profit attributable to owners was 1.592 billion yuan, a year-on-year increase of 18.9%; and earnings per share were 33.37 cents.

Pharmaron (03759): The net income for the first half of the year was 1.113 billion yuan, a year-on-year increase of 41.64%.

Pharmaron released its 2024 semi-annual report, achieving revenue of 5.604 billion yuan in the first half of the year, a year-on-year decrease of 0.63%; net income attributable to shareholders of listed companies was 1.113 billion yuan, a year-on-year increase of 41.64%. In the first half of the year, the company provided services to over 2,200 global clients.

nongfu spring (09633) announced its interim performance, with shareholders' attributable surplus of 6.24 billion yuan, an increase of 8.04% year-on-year. The growth of tea beverage products continues to maintain a high speed.

Nongfu Spring (09633) released its six-month performance report as of June 30, 2024, with revenue of 22.173 billion yuan, a year-on-year increase of 8.36%; the net profit attributable to owners of the parent company was 6.24 billion yuan, a year-on-year increase of 8.04%; and earnings per share were 0.55 yuan.

Haidilao (06862) announced its interim results with a net profit attributable to owners of approximately 2.038 billion yuan, a year-on-year decrease of 9.74%.

Haidilao (06862) announced its interim performance for 2024, with revenue of approximately 21.491 billion yuan, a year-on-year increase of 13.79%; the net profit attributable to owners of the company was approximately 2.038 billion yuan, a year-on-year decrease of 9.74%; and earnings per share were 0.38 yuan, with an interim dividend of 0.391 Hong Kong dollars per share.

Skyworth Group (00751) released its interim performance report, with the net profit attributable to shareholders at 0.384 billion yuan, a year-on-year increase of 27.2%.

Skyworth Group (00751) released its interim performance for the six months ending June 30, 2024. The group achieved a total revenue of RMB 30.153 billion, a decrease of 6.6% compared to the same period last year. The net profit attributable to equity shareholders increased by 27.2% to RMB 0.384 billion, and the earnings per share were 16.31 cents.

Flat Glass (06865) has released its interim performance, with a net income attributable to the parent of 1.499 billion yuan, a year-on-year increase of 38.14%.

Flat Glass (06865) released its interim performance for the six months ending June 30, 2024. The group achieved a total revenue of RMB 10.696 billion, an increase of 10.51% compared to the same period last year. The net profit attributable to the parent company increased by 38.14% to RMB 1.499 billion, and the basic earnings per share were RMB 0.64. The interim dividend per share is expected to be RMB 0.13.

Hansoh Pharma (03692) announced its interim performance. Shareholders' attributable net profit increased by 2.726 billion yuan, a year-on-year increase of 111.47%.

Hansoh Pharma (03692) released its interim performance for the six months ending June 30, 2024. The group achieved a revenue of RMB 6.506 billion, an increase of 44.21% compared to the same period last year. The net profit attributable to the parent company increased by 111.47% to RMB 2.726 billion, and the basic earnings per share were RMB 0.46. The interim dividend per share is expected to be HKD 20.1.

Anta Sports (02020) released its interim performance, achieving revenue of 337.35 million yuan, a year-on-year increase of 13.8%, further consolidating its leading position in the Chinese sports brand.

ANTA Sports (02020) released its interim performance for the six months ending June 30, 2024. The group achieved a revenue of RMB 33.735 billion, an increase of 13.8% compared to the same period last year. The gross profit was RMB 21.618 billion, an increase of 15.3%. The net profit attributable to shareholders, excluding the impact of joint ventures, was RMB 6.161 billion, an increase of 17%. Including the impact of joint ventures, the net profit attributable to shareholders was RMB 7.721 billion, an increase of 62.6%. The basic earnings per share were RMB 2.75. The interim dividend per share is expected to be HKD 118.

ANTA Sports (02020) announced that the board of directors has decided to use up to HKD 10 billion to repurchase shares in the open market over a period of 18 months starting from the date of this announcement, depending on market conditions. The company will fund the share repurchase plan with its existing available cash reserves, and any repurchased shares will be cancelled.

China res land (01109) achieved a comprehensive revenue of 79.13 billion yuan in the first half of the year, an 8.4% year-on-year increase. It maintains a green rating for all three red lines and maintains the industry's highest international credit rating.

China Res Land (01109) announced its mid-term performance for 2024, with a comprehensive turnover of RMB 79.13 billion, an increase of 8.4% year-on-year. Shareholders' attributable surplus amounted to RMB 10.25 billion, and the core net profit was RMB 10.74 billion, of which the recurring core net profit was RMB 5.52 billion, a year-on-year increase of 14.4%, and the core net profit accounted for 51.4%. Earnings per share was RMB 1.44, with a mid-term dividend of RMB 0.20 per share.

Stocks are clearing up.

China Tobacco Hong Kong (06055) announces interim results, with shareholder's net profit of HKD 0.643 billion, a year-on-year growth of 41%.

According to the financial results for the six months ending June 30, 2024 released by China Tobacco Hong Kong (06055), the company's revenue was HKD 8.704 billion, a year-on-year increase of 12%. The net profit attributable to equity holders of the company was HKD 0.643 billion, a year-on-year increase of 41%. The basic earnings per share was HKD 0.93, and a interim dividend of HKD 0.15 per share is proposed.

The increase in profit and the increase in net profit attributable to equity holders of the company during the period were mainly driven by the growth of imported tobacco products, cigarette export business, and tobacco product export business.