Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

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>BZ US: Age 16-24 unemployment rate decreased month-on-month for two consecutive periods.(+)</li>
<li>ACMR US/LRCX US/8035 JP/7735 JP: Congressmen put forward bill to block purchase of certain China made semiconductor equipment by US subsidy recipients (-/+/+/+)</li>
<li>LI US/XPEV US/NIO US/1810 HK: New energy vehicles LI continues to lead in the 24th week of 2024 (///////)</li>
</ul>


BZ US: Age 16-24 unemployment rate decreased month-on-month for two consecutive periods.(+)
ACMR US/LRCX US/8035 JP/7735 JP: Congressmen put forward bill to block purchase of certain China made semiconductor equipment by US subsidy recipients (-/+/+/+)
LI US/XPEV US/NIO US/1810 HK: New energy vehicles LI continues to lead in the 24th week of 2024 (///////)


[Blue Lotus Daily]:BZ US/ACMR US/LRCX US/8035 JP/7735 JP/LI US/XPEV US/NIO US/1810 HK

<ul>
<li>About a year ago, we started collating battery investments in the European Union. At the time we conclude between 1/4 to a 1/3 were originated from China;</li>
<li>A year later, we revisited and found the ratio has increased. With the latest EU tariff on China-made EV's, we expect Chinese capacity buildups to quicken;</li>
<li>A total of 1,742 GWh of projects are supposed to go online in EU countries, representing investment of US$150bn, among which China related GWh and investment is ~25%. </li>
</ul>


About a year ago, we started collating battery investments in the European Union. At the time we conclude between 1/4 to a 1/3 were originated from China;
A year later, we revisited and found the ratio has increased. With the latest EU tariff on China-made EV's, we expect Chinese capacity buildups to quicken;
A total of 1,742 GWh of projects are supposed to go online in EU countries, representing investment of US$150bn, among which China related GWh and investment is ~25%. 


EU's Battery and Solar Investments, One Year After, Part I

<ul>
<li>300750 SZ: US lawmakers called to ban CATL and Gotion batteries to US.(+)</li>
<li>1211 HK/XPEV US/NIO US/1810 HK:BYD's two models equipped with DM-5 exceeded 80,000 pre-order in two weeks.(//-/-/-)</li>
<li>LI US/XPEV US/NIO US/1810 HK: /In the 23rd week of 2024, LI's electric vehicle deliveries is leading the way, but most of them have fallen back.(///////)</li>
</ul>


300750 SZ: US lawmakers called to ban CATL and Gotion batteries to US.(+)
1211 HK/XPEV US/NIO US/1810 HK:BYD's two models equipped with DM-5 exceeded 80,000 pre-order in two weeks.(//-/-/-)
LI US/XPEV US/NIO US/1810 HK: /In the 23rd week of 2024, LI's electric vehicle deliveries is leading the way, but most of them have fallen back.(///////)


[Blue Lotus Daily]:300750 SZ/1211 HK/XPEV US/NIO US/1810 HK/LI US

<ul>
<li>NIO US: NIO’s losses expanded in the first quarter of 2024, and C2Q likely will see better numbers.(/)</li>
<li>NIO US:  Nio plans to launch the 3rd brand in December to target low end market.(/)</li>
<li>LI US: LI L6 production capacity ramps up and delivery cycle shortens(+)</li>
</ul>


NIO US: NIO’s losses expanded in the first quarter of 2024, and C2Q likely will see better numbers.(/)
NIO US:  Nio plans to launch the 3rd brand in December to target low end market.(/)
LI US: LI L6 production capacity ramps up and delivery cycle shortens(+)


[Blue Lotus Daily]:NIO US/LI US/XPEV US/1211 HK/1810 HK

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 May 2024 price discounts at dealers for major automakers in this report.</li><li>Note that such discounts for each automaker are calculated based on the weighted average of Apr 2024 retail sales volume for each model, as May 2024 retail sales volume data have not been released yet.</li><li>The industrywide average discounts widened by 0.6ppt MoM in May based on our calculations, the largest MoM increase YTD, mainly driven by German and Japanese brands. </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 May 2024 price discounts at dealers for major automakers in this report.Note that such discounts for each automaker are calculated based on the weighted average of Apr 2024 retail sales volume for each model, as May 2024 retail sales volume data have not been released yet.The industrywide average discounts widened by 0.6ppt MoM in May based on our calculations, the largest MoM increase YTD, mainly driven by German and Japanese brands. 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.

Auto - Foreign Brands’ Pricing System Has Faltered

China

XPeng Inc. designs, produces, and distributes electric vehicles. The Company designs, develops, manufactures and markets smart smart electric vehicles, as well as finance, parts, and maintenance services. XPeng serves customers in China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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Dividend (Yield)	0.00

XPeng (XPEV US)

[Blue Lotus Daily]:BZ US/ACMR US/LRCX US/8035 JP/7735 JP/LI US/XPEV US/NIO US/1810 HK

US youth unemployment rate is decreasing, Congressmen propose bill to block purchase of China-made semiconductor equipment by US subsidy...

Blue Lotus Research Institute

EU's Battery and Solar Investments, One Year After, Part I

Chinese companies accounted for a quarter of battery investments in EU. This ratio has increased materially over the past 12 months and will...

Blue Lotus Research Institute

[Blue Lotus Daily]:300750 SZ/1211 HK/XPEV US/NIO US/1810 HK/LI US

US lawmakers urged to ban CATL and Gotion batteries, BYD's DM-5 models exceed 80,000 pre-orders, LI leads in EV deliveries but falls back in 2024.

Blue Lotus Research Institute

[Blue Lotus Daily]:NIO US/LI US/XPEV US/1211 HK/1810 HK

NIO US reports increased losses in Q1 2024 but expects improvement in Q2; plans to launch 3rd brand for low-end market. LI sees production...

Blue Lotus Research Institute

Auto - Foreign Brands’ Pricing System Has Faltered

The industrywide average discounts widened by 0.6ppt MoM in May based on our calculations, the largest MoM increase YTD, mainly driven by German...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily]:BZ US/ACMR US/LRCX US/8035 JP/7735 JP/LI US/XPEV US/NIO US/1810 HK

​US youth unemployment rate is decreasing, Congressmen propose bill to block purchase of China-made semiconductor equipment by US subsidy...

Blue Lotus Research Institute

EU's Battery and Solar Investments, One Year After, Part I

Chinese companies accounted for a quarter of battery investments in EU. This ratio has increased materially over the past 12 months and will...

Blue Lotus Research Institute

[Blue Lotus Daily]:300750 SZ/1211 HK/XPEV US/NIO US/1810 HK/LI US

​US lawmakers urged to ban CATL and Gotion batteries, BYD's DM-5 models exceed 80,000 pre-orders, LI leads in EV deliveries but falls back in 2024.

Blue Lotus Research Institute

[Blue Lotus Daily]:NIO US/LI US/XPEV US/1211 HK/1810 HK

​NIO US reports increased losses in Q1 2024 but expects improvement in Q2; plans to launch 3rd brand for low-end market. LI sees production...

Blue Lotus Research Institute

Auto - Foreign Brands’ Pricing System Has Faltered

The industrywide average discounts widened by 0.6ppt MoM in May based on our calculations, the largest MoM increase YTD, mainly driven by German...

CMB International

US youth unemployment rate is decreasing, Congressmen propose bill to block purchase of China-made semiconductor equipment by US subsidy...

US lawmakers urged to ban CATL and Gotion batteries, BYD's DM-5 models exceed 80,000 pre-orders, LI leads in EV deliveries but falls back in 2024.

NIO US reports increased losses in Q1 2024 but expects improvement in Q2; plans to launch 3rd brand for low-end market. LI sees production...