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>Real Estate Industry Update: Housing bureaus in China’s first tier cities pledge to draft supportive policy on home purchase（+）</li>
<li>2150HK: Nayuki teahouse average store revenue remains flattish YoY in July 2023（/）</li>
<li>LI/NIO/XPEV: Li Auto, NIO and Xpeng update August vehicle delivery results (+/+//)</li>
</ul>


Real Estate Industry Update: Housing bureaus in China’s first tier cities pledge to draft supportive policy on home purchase（+）
2150HK: Nayuki teahouse average store revenue remains flattish YoY in July 2023（/）
LI/NIO/XPEV: Li Auto, NIO and Xpeng update August vehicle delivery results (+/+//)


China TMT Update-BEKE/2150.HK/LI/NIO/XPEV-Supportive Policy on Home Purchase;August Vehicle Delivery

<ul>
<li>NIO: NIO to offer single-motor model in sub-brand codenamed Alps (+)</li>
<li>BEKE: Political Bureau of the Central Committee shifted tone on real estate regulation（+）</li>
<li>LEGN: Janssen reported CARVYKTI sales US$117mn, lower than our expectation (-)</li>
</ul>


NIO: NIO to offer single-motor model in sub-brand codenamed Alps (+)
BEKE: Political Bureau of the Central Committee shifted tone on real estate regulation（+）
LEGN: Janssen reported CARVYKTI sales US$117mn, lower than our expectation (-)


China TMT Update-NIO/BEKE/LEGN-NIO to Offer Single-Motor Model;Political Bureau Shifted Tone

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

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul>
<li>We summarize the Jun 2023 leading indicators as below, including number of leads, customer flows, and new orders generated, for Tesla, NIO, Li Auto, Xpeng, BYD and Aion.</li>
<li>Note that such data are based on a sample size of 96 stores (15- 18 stores for each brand) in 15 major cities in China.</li>
<li>We are of the view that Tesla is still resilient, while NIO’s key metrics in Jun were below our expectation.</li>
</ul>
<p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>


We summarize the Jun 2023 leading indicators as below, including number of leads, customer flows, and new orders generated, for Tesla, NIO, Li Auto, Xpeng, BYD and Aion.
Note that such data are based on a sample size of 96 stores (15- 18 stores for each brand) in 15 major cities in China.
We are of the view that Tesla is still resilient, while NIO’s key metrics in Jun were below our expectation.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Auto Sector – Jun leading indicators: NIO weaker than expected

China

NIO designs, develops, manufactures, and sells smart electric vehicles, including sedans and SUVs under its NIO, ONVO, and FIREFLY brands. The company also offers innovative power solutions such as battery swapping services and various charging options. NIO was founded in November 2014 and is headquartered in Shanghai, China.

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NIO (9866 HK)

China TMT Update-BEKE/2150.HK/LI/NIO/XPEV-Supportive Policy on Home Purchase;August Vehicle Delivery

China’s first tier cities draft supportive policy on home purchase;Nayuki teahouse average store revenue remains flattish YoY;LI/NIO/XPEV: Li Auto,...

Blue Lotus Research Institute

China TMT Update-NIO/BEKE/LEGN-NIO to Offer Single-Motor Model;Political Bureau Shifted Tone

NIO: NIO to offer single-motor model ;BEKE: Political Bureau of the Central Committee shifted tone on real estate regulation;LEGN: Janssen reported...

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

China Auto Sector – Jun leading indicators: NIO weaker than expected

We summarize the Jun 2023 leading indicators as below, including number of leads, customer flows, and new orders generated, for Tesla, NIO, Li...

CMB International

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