China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>LI: Li Auto said to postpone the construction of Chongqing plant (-)</li>
<li>Akeso started Phase III head-to-head trial of its Cadonilimab BsAb against BeiGene's Tislelizumab mAb for first line treatment of NSCLC（/）</li>
<li>KE Holdings: New home sales remain weak in June, and existing home price trended down for two months, expecting more supportive policy on demand side of property market.</li>
</ul>


LI: Li Auto said to postpone the construction of Chongqing plant (-)
Akeso started Phase III head-to-head trial of its Cadonilimab BsAb against BeiGene's Tislelizumab mAb for first line treatment of NSCLC（/）
KE Holdings: New home sales remain weak in June, and existing home price trended down for two months, expecting more supportive policy on demand side of property market.


China TMT Update-LI AUTO/Akeso/BEKE-Delay Chongqing Plant/Trial of Cadonilimab BsAb/New Home Sales

<ul>
<li>In early July, Toyota announced a breakthrough in all-solid-state-battery (ASSB) delivering 745 miles per charge and &lt;10-minute charging time. </li>
<li>Currently lithium-ion battery (LIB) can reach 500 miles and 25 minutes; We, however, believe the migration of LIB to ASSB will be a continuous process. </li>
<li>ASSB is expensive to manufacture. Further, mineral reliance on China is unlikely to lessen.</li>
</ul>


In early July, Toyota announced a breakthrough in all-solid-state-battery (ASSB) delivering 745 miles per charge and &lt;10-minute charging time. 
Currently lithium-ion battery (LIB) can reach 500 miles and 25 minutes; We, however, believe the migration of LIB to ASSB will be a continuous process. 
ASSB is expensive to manufacture. Further, mineral reliance on China is unlikely to lessen.


[Blue Lotus EV Sector Update]: All Solid-State Battery Unlikely to Disrupt EV Market

Macroeconomics

<ul>
<li>Forty to sixty percent of the world’s carbon emission takes place in buildings. Energy efficiency job is the single largest component that balances the job loss</li>
<li>In traditional energy and job gain in renewable energy. China is materially behind the US in energy efficiency; We believe inclusion of energy efficiency in the upcoming stimulus package </li>
<li>Will be a sound choice to boost employment and GDP, and our listed companies in the new energy sector shall benefit from the trend.</li>
</ul>


Forty to sixty percent of the world’s carbon emission takes place in buildings. Energy efficiency job is the single largest component that balances the job loss
In traditional energy and job gain in renewable energy. China is materially behind the US in energy efficiency; We believe inclusion of energy efficiency in the upcoming stimulus package 
Will be a sound choice to boost employment and GDP, and our listed companies in the new energy sector shall benefit from the trend.


[Blue Lotus Macro]: A Job-Creating Stimulus that Also Saves the Real Estate

<ul>
<li>XPEV/NIO/LI/TSLA/1211HK: 16 major automakers pledge to jointly maintain order in China auto market (+/+/+/+/+)</li>
<li>XPEV: Xpeng G6's conversion rate exceeds 50%, outperforming the industry (+)</li>
<li>ZLAB：ZLAB’s FcRn Efgartigimod received NMPA approval. We expect 2023 revenue US$10mn (-)</li>
</ul>


XPEV/NIO/LI/TSLA/1211HK: 16 major automakers pledge to jointly maintain order in China auto market (+/+/+/+/+)
XPEV: Xpeng G6's conversion rate exceeds 50%, outperforming the industry (+)
ZLAB：ZLAB’s FcRn Efgartigimod received NMPA approval. We expect 2023 revenue US$10mn (-)


China TMT Update-XPEV/NIO/LI/TSLA/1211HK/ZLAB: 16 Automakers Pledge to Maintain Order;G6 Conversion

<ul>
<li>A collapse of real estate speculation destroyed the balance sheets of Chinese households, leading to downward spiral in consumptions. A tremendous stimulus package can reflate the economy, </li>
<li>But it doesn’t solve the structural problems; Unlike semiconductor and biotech, inputs to renewable energy are many and supply chains are long.  To stay ahead, Chinese companies must keep themselves </li>
<li>Cost competitive,  which means they can neither realize profits nor retaliate US containments. But their equities offer the long-term hope to replace real estate as nest eggs of Chinese retirees.</li>
</ul>


A collapse of real estate speculation destroyed the balance sheets of Chinese households, leading to downward spiral in consumptions. A tremendous stimulus package can reflate the economy, 
But it doesn’t solve the structural problems; Unlike semiconductor and biotech, inputs to renewable energy are many and supply chains are long.  To stay ahead, Chinese companies must keep themselves 
Cost competitive,  which means they can neither realize profits nor retaliate US containments. But their equities offer the long-term hope to replace real estate as nest eggs of Chinese retirees.


[Blue Lotus Macro]: Economic Stimulus Shouldn’t Be Pain Killers

China

Li Auto Inc. manufactures automobiles. The Company designs, develops, and sells smart new energy electric sport utility vehicles. Li Auto conducts businesses in China.

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Li Auto (LI US)

China TMT Update-LI AUTO/Akeso/BEKE-Delay Chongqing Plant/Trial of Cadonilimab BsAb/New Home Sales

LI: Li Auto said to postpone the construction of Chongqing plant (-);Akeso started Phase III head-to-head trial of its Cadonilimab BsAb;KE...

Blue Lotus Research Institute

[Blue Lotus EV Sector Update]: All Solid-State Battery Unlikely to Disrupt EV Market

We, however, believe the migration of LIB to ASSB will be a continuous process. ASSB is expensive to manufacture. Further, mineral reliance on...

Blue Lotus Research Institute

[Blue Lotus Macro]: A Job-Creating Stimulus that Also Saves the Real Estate

We believe inclusion of energy efficiency in the upcoming stimulus package will be a sound choice to boost employment and GDP, listed companies in...

Blue Lotus Research Institute

China TMT Update-XPEV/NIO/LI/TSLA/1211HK/ZLAB: 16 Automakers Pledge to Maintain Order;G6 Conversion

XPEV/NIO/LI/TSLA/1211HK: 16 major automakers pledge to jointly maintain order;XPEV: Xpeng G6's conversion rate exceeds 50% (+)ZLAB：ZLAB’s FcRn...

Blue Lotus Research Institute

[Blue Lotus Macro]: Economic Stimulus Shouldn’t Be Pain Killers

To stay ahead, Chinese companies must keep themselves cost competitive. But their equities offer the long-term hope to replace real estate as nest...

Blue Lotus Research Institute

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