I. Market Highlights

1. Baidu Radish Express plans to test run in Hong Kong

Baidu's driverless online car-hailing platform “Radish Run” is scheduled to be put into trial operation in Hong Kong. The first phase of testing will be carried out at the airport as soon as the end of this year. The Transport Department of the Hong Kong Special Administrative Region Government confirmed that Baidu submitted applications for pilot autonomous driving test licenses and automatic vehicle certificates last month. The Department will strictly control and promote autonomous vehicle testing in Hong Kong in an orderly and safe manner. According to Hong Kong Islands District Council documents, the first phase of testing will begin before the end of the year and will be conducted during off-peak hours. A local driver with more than 10 years of driving experience will be on board as a backup operator.

2. Li Jiachao: Guangdong and Hong Kong have reached 126 economic and trade cooperation projects, with a total value of over 100 billion yuan

Chief Executive Li Jiachao led a political and business delegation of about 80 people, including more than 60 representatives from large Hong Kong enterprises, financial institutions and chambers of commerce, to Guangzhou to attend the “Guangdong-Hong Kong Exchange Meeting on Deepening Economic, Trade and Investment Cooperation”. In his speech, Li Jiachao said that his Policy Address published last month proposed a series of reform and change measures to push Hong Kong to continue to actively participate in the construction of the Greater Bay Area. At today's exchange meeting, we will witness Guangdong and Hong Kong reaching 126 economic and trade cooperation projects with a total value of over 100 billion yuan, demonstrating the determination and investment of the two sides to deepen economic, trade and investment cooperation.

He said that among these economic and trade cooperation projects, 101 came from Hong Kong businessmen investing in Guangdong, with an investment amount of over 91 billion yuan, covering areas such as financial cooperation, modern logistics, intelligent manufacturing, biomedicine, artificial intelligence, etc., demonstrating the feelings and practical actions of Hong Kong entrepreneurs actively serving the development of Guangdong and the mainland.

3. The volume and price growth of the real estate market in Shenzhen stabilized in October compared with the sales price of newly built commercial residential homes for the first time in 18 months

Since Shenzhen's “9/29” new real estate policy, property market transactions have continued to rise, and the market has shown a steady trend of volume increase and price growth. According to data, from November 1 to 24, online sales of 7,800 newly built commercial residential units (0.7701 million square meters) in Shenzhen, an average daily increase of 201.3%, an average daily increase of 85.8%; online sales of second-hand residential units (0.5092 million square meters) increased 118.5% year-on-year and an average daily increase of 15.6%.

What is more noteworthy is that according to the housing price index of the National Bureau of Statistics, in October of this year, the sales price of newly built commercial residential homes in Shenzhen changed from a 1.0% month-on-month decline to a 0.1% increase, for the first time in nearly 18 months; second-hand residential sales prices changed from a 1.3% month-on-month decline to a 0.7% increase over the previous month, the first correction in nearly 13 months.

4. Guangzhou will issue 0.1 billion yuan government food and beverage vouchers

On November 25, Guangzhou held a press conference on “Fighting for Steady Economic Growth and Boosting Consumption”. Luo Zheng, deputy director of the Guangzhou Municipal Bureau of Commerce, revealed at the conference that in order to continue to do a good job of steady growth, promote consumption, and benefit people's livelihood, Guangzhou will implement a series of related measures at the end of the year, including issuing 0.1 billion yuan of “Eat in Guangzhou” government food and beverage vouchers.

II. Company News

1. Haidilao (06862), an overseas business of Tehai International (09658), announced that the net profit for the third quarter ended September 30 was 37.724 million yuan (US dollars, same below), with a loss of 1.39 million yuan and a profit of 6 cents per share for the same period last year. Revenue for the period was around 0.19 billion yuan, up 14.6%. No new stores were opened in the third quarter, and a restaurant in Southeast Asia was temporarily closed. It is planned to reopen it as a second-brand restaurant in the near future. As of September 30, the total number of Haidilao restaurants was 121, a net increase of 6 over the end of last year. The Group's overall average table turnover rate was 3.8 times, up 0.1 times from the same period last year. The total number of visitors exceeded 7.4 million, an increase of 4.2%. Same-store sales grew by 5.6%. Operating margin was 7.5%, up 1.8 percentage points.

2. Zhixing Auto Technology (01274) announced that it plans to place 4.427 million new H shares at HK$17.58 per share to no less than six undertakers, accounting for about 1.92% of the expanded company's share capital. The placement price is 13.19% off the company's closing price last day. The net capital raised in this placement was $73.28 million, which will mainly be used to enhance the development of advanced smart driving and integrated cockpit solutions and products; capital expenses related to improving R&D facilities and production facilities; expanding overseas sales and service networks; and working capital and general corporate purposes.

3. According to the Stock Exchange data, J.P. Morgan Chase reduced its holdings of Alibaba (09988) by 69.83 million shares last Tuesday (19th), with an average price of HK$85.467 per share, involving HK$5.968 billion. The latest shareholding volume fell to 6.85%.

4. According to the Stock Exchange data, J.P. Morgan Chase reduced its holdings of Bilibili (09626) by 1.82 million shares last Tuesday (19th), with an average price of HK$147.3373 per share, involving HK$0.268 billion. The latest shareholding volume dropped to 8.5%.

5. China Electric Power (02380) announced that, based on the company's preliminary statistics, the Group's total consolidated electricity sales volume in October 2024 was 9.7505 million megawatt-hours, an increase of 20.59% over the same period last year; while the consolidated total sales volume for the first ten months of 2024 was 0.108 billion megawatt-hours, an increase of 30.56% over the same period last year.

6. Youbao Online (02429) announced that on November 25, 2024, the company submitted a filing application to the China Securities Regulatory Commission on a proposal to implement full circulation of H shares, with a view to converting a total of 76.3197 million unlisted shares into H shares on a 1:1 basis.

7. Beijing Capital Finance International (01468) issued a profit warning. It is expected to record a net profit of not more than HK$2.5 million for the six months ending September 30, 2024, and a net profit of about HK$66.5 million for the same period last year. Net profit for the mid-2023 period was mainly due to a one-time fair value adjustment of the probable costs due in connection with the acquisition of FGA Holdings Limited and its subsidiaries, amounting to approximately HK$0.1177 billion. The adjustment did not occur during the mid-2024 period and was unrelated to the Group's operating activities. Without this adjustment, a net loss of approximately HK$51.2 million was recorded in the mid-2023 period.