[Today's headlines]

Ministry of Commerce: Accelerate the issuance of policy documents to promote the initial economy

Ministry of Commerce spokesman He Yongqian said at the Ministry of Commerce's regular press conference on December 19 that the Ministry of Commerce will implement policy documents to promote high-quality development of service consumption, continuously enrich the supply of service consumption, and innovate diversified consumption scenarios. Cultivate and expand new types of consumption, speed up the issuance of policy documents to promote the initial economy, develop the snow and ice economy, and promote digital consumption, green consumption, and healthy consumption.

[General outlook]

US technology stocks had mixed ups and downs, and Micron Technology (MU.US)'s performance guidelines fell below expectations and fell more than 16%

Overnight, the Dow Jones Industrial Average rose 15.37 points to close at 42342.24 points, or 0.04%; the S&P 500 stock index fell 5.08 points to close at 5867.08 points, or 0.09%; and the Nasdaq Composite Index fell 19.92 points, to close at 19372.77 points, or 0.10%. Major technology stocks had mixed ups and downs. Nvidia (NVDA.US), Netflix (NFLX.US), and Amazon (AMZN.US) rose more than 1%, Google (GOOGL.US) and Apple (AAPL.US) rose slightly; Intel (INTC.US) fell more than 1%, and Tesla (TSLA.US), Microsoft (MSFT.US), and Meta (META.US) fell slightly. Micron Technology (MU.US) fell more than 16%, and guidance for the second fiscal quarter fell short of expectations. Popular Chinese securities had mixed ups and downs, and the Nasdaq China Golden Dragon Index fell 0.06%. Fangduoduo (DUO.US) fell more than 3%, while Ideal Auto (LI.US) and New Oriental (EDU.US) rose more than 2%. The Hang Seng Index ADR declined. On a pro rata basis, it closed at 19638.95, down 113.56 points or 0.57% from the Hong Kong closing.

[Hot Topics Preview]

National Energy Administration: The electricity consumption of the whole society increased 2.8% year-on-year in November

In November, the electricity consumption of the entire society was 784.9 billion kilowatt-hours, an increase of 2.8% over the previous year. Looking at electricity consumption by industry, electricity consumption in the primary sector was 10.4 billion kilowatt-hours, up 7.6% year on year; electricity consumption in the secondary sector was 539.9 billion kilowatt-hours, up 2.2% year on year; electricity consumption in the tertiary sector was 138.3 billion kilowatt-hours, up 4.7% year on year; and electricity consumption of urban and rural residents was 96.3 billion kilowatt-hours, up 2.9% year on year.

The Ministry of Finance issued the “Administrative Measures on the Domestic Business Activities of Overseas Accounting Organizations” to clarify the requirements relating to the filing of temporary activities of overseas accounting organizations

Zhitong Finance App learned that recently, the Ministry of Finance issued the “Administrative Measures on Domestic Business Activities of Overseas Accounting Organizations” (Accounting (2024) No. 23, hereinafter referred to as the “Administrative Measures”), which took effect from the date of publication. Relevant officials in charge of the Ministry of Finance answered questions from reporters on the “Administrative Measures”. The person in charge said that since 2020, 7 overseas accounting organizations have set up 11 representative offices in the country, and the Ministry of Finance has agreed to be the competent unit for their business. In line with the practice of managing the domestic business activities of overseas accounting organizations in recent years, the “Administrative Measures” have upgraded the operating guidelines into institutional regulations, further refined the procedures for handling matters such as the establishment and change of representative offices, and clarified the requirements relating to the filing of temporary activities of overseas accounting organizations, which helps to better protect the legitimate rights and interests of overseas accounting organizations and their representative agencies and promote exchanges and cooperation.

Hong Kong Stock Exchange (00388): Sole directors cannot simultaneously serve as directors of more than six Hong Kong listed issuers with a three-year transition period

Zhitong Finance App learned that on December 19, the Hong Kong Stock Exchange, a wholly-owned subsidiary of the Hong Kong Stock Exchange (00388), published a consultation summary on its consultation document reviewing the provisions of the Corporate Governance Code and related “Listing Rules”. The Hong Kong Stock Exchange received a total of 261 responses from various sectors of the market. All suggestions were supported by a majority of respondents. After considering the comments of the respondents, the Hong Kong Stock Exchange will adopt the consultation suggestions after making certain amendments or clarifications. The new regulations will take effect on July 1, 2025.

The Ministry of Commerce responds to the US considering banning the sale of TPLink routers

The Ministry of Commerce held a regular press conference on the afternoon of December 19. Reporter: According to reports, the US government has launched a national security investigation against Chinese router manufacturer TP-Link. What comments does the Ministry of Commerce have on this investigation? Ministry of Commerce spokesman He Yongqian: The Chinese side has taken note of the relevant reports. What I want to emphasize is that China has always opposed the US suppressing Chinese companies under the guise of national security. The relevant investigation by the US side should be objective and rational, rather than being born out of nothing to make a presumption of guilt.

SF Holdings (06936): November revenue increased 6.73% year-on-year

SF Holdings (06936) announced that in November 2024, the total revenue from the company's express logistics business and supply chain and international business was 25.196 billion yuan, an increase of 6.73% over 23.608 billion yuan in the same period in 2023. Among them, express logistics business revenue was 18.802 billion yuan, up 2.45% year on year, business volume was 1.277 billion tickets, up 8.68% year on year, and single ticket revenue decreased 5.76%. Supply chain and international business revenue was $6.394 billion, up 21.65% year over year. Due to the advance of the e-commerce platform's Double Eleven promotion cycle, the peak express delivery business season this year was brought forward to October, leading to a relatively stable growth rate in November.

The Kuaishou-W (01024) Keling 1.6 model is online, and the video effect has been further improved

Kuaishou Keling AI announced a further upgrade of the base model and launched the Keling 1.6 model for video generation. The effect was greatly improved. According to our understanding, the 1.6 model has improved markedly in terms of text responsiveness, responding better to text descriptions such as motion, timing movements, and camera movement; the dynamic quality has been further enhanced: movement is more reasonable, and character expressions are more natural; at the same time, the picture quality of the 1.6 model has also evolved again: color, light, shadow, and detailed performance have all improved markedly. According to the data, in the half year since Keling AI was released, it has had more than 6 million users and has generated more than 65 million videos and over 0.175 billion images.

Goldwind Technology (02208) subsidiary plans to transfer 100% of the shares of Muniushan Holdings

According to Zhitong Finance App, Goldwind Technology (02208) issued an announcement. On December 17, 2024, the 29th meeting of the 8th board of directors of the company deliberated and passed the “Proposal on the Transfer of 100% Shares of Mu Niushan Holdings Company from Jinfeng Mu Niushan Hong Kong Company to Atmos Australia”. The transaction price was 99.3 million Australian dollars.

Fu Hong Han Lin (02696) signed a cooperation agreement with Palleon to develop novel immunotherapy products

Fu Hong Hanlin (02696) issued an announcement announcing the signing of a cooperation and licensing agreement with Palleon Pharmaceuticals Inc. Under the agreement, the two sides will co-develop and commercialize E-602 and combination therapies on a global scale. The company will receive Palleon's exclusive license in China, while Palleon will license the product in other regions of the world.

The partnership does not involve a down payment, but the company is required to pay Palleon up to $52.8 million in development milestones and up to $42.5 million in sales milestones. Additionally, the company is required to pay royalties of 8% to 12% based on annual net sales. E-602 is a novel sialidase fusion protein designed to improve the interaction between immune cells and tumor cells. Through this cooperation, the company hopes to enhance the effectiveness of treating lupus nephritis in combination with its existing Hanlikang drugs.

[Individual stock prices are clear]

Weimeng Group (02013): WeChat small store tests “send gifts” function

Recently, WeChat quietly launched a new feature — the WeChat Store's “Send a Gift” feature. With the exception of jewelry, education and training categories, and products with an original price above 0.01 million yuan, the “send a gift” function will be supported by default.

According to industry insiders, the ingenious design of the WeChat store's “gift delivery” function can link social networking and e-commerce, but it remains to be seen whether it can replicate the previous WeChat red envelopes to drive the huge growth of WeChat Pay, and whether the WeChat small store can quickly penetrate among users.

After the last time WeChat social media strongly promoted the success of WeChat Pay through WeChat Red Envelopes, this time the WeChat Small Store “Send Gifts” once again linked social networking with e-commerce. Industry insiders believe that this may be the WeChat Red Envelope 2.0 version, a test of the WeChat Small Store's “send gifts” function, which is conducive to boosting the development of WeChat e-commerce through social networking.

At the end of October this year, at the first “Technology Open Day and AI Product Launch” of Weimeng Group (02013), Weimeng successfully built 15 AIAgent matrices, covering a total of 58 business scenarios from store construction to private domain operations, and launched Weime's three intelligent solutions. At the same time, Weimeng's WaiPro marketing version has helped Weimeng achieve an average operational efficiency improvement of 20% to 30% in multiple marketing scenarios.

Tianfeng Securities analysts Kong Rong and Wang Mengkai's team analyzed that the WeChat ecosystem has a wide range of user scenarios and traffic channel advantages. WeChat stores naturally combine with video accounts, community fission, and search to form models such as live e-commerce, social e-commerce, and shelf e-commerce. With the improvement of basic transaction components and the development of short videos, the closed loop of the WeChat e-commerce ecosystem has been completed, and the long-term potential is strong. This time, the WeChat store's new “gift delivery” function resonates with its own social advantages, reflecting WeChat's leading ability to open up C-side scenarios and meet demand under WeChat's product-oriented mindset.

Tianfeng Securities said it is optimistic that the gift delivery function of WeChat's small stores will significantly speed up the entry of merchants and the development of user consumption habits. The optimistic situation may be expected to repeat the story of WeChat red envelopes driving changes in the payment market pattern. After late December, key holidays are concentrated, and WeChat e-commerce is expected to usher in major catalysis.

In August of this year, WeChat upgraded the Video Store to a “WeChat Small Store”, providing multi-entry traffic support within the WeChat ecosystem, and launched the “WeChat Small Store Assistant”, an independent app store tool, thus completing a closed loop of transactions. At the relevant earnings conference, the WeChat store was mentioned three times. It can be seen that high expectations were placed on it. “We are now very excited about the long-term potential of the entire e-commerce ecosystem. Tencent is upgrading its entire e-commerce strategy around WeChat stores, hoping to build a larger e-commerce foundation through the entire WeChat ecosystem.” A Tencent executive said.