Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back on the 19th July, online Q&amp;A play <a href="https://www.smartkarma.com/entities/zhihu-inc" target="_blank" data-smartkarma-citation="entities:36660:1" rel="noopener">Zhihu (2390 HK/</a><a href="https://www.smartkarma.com/entities/zhihu-technology-ltd" target="_blank" data-smartkarma-citation="entities:32185:1" rel="noopener">ZH US)</a> announced the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0719/2024071901181.pdf" target="_blank" rel="noopener">buyback</a> of 46.92mn ordinary A shares (15.9% of shares out) at HK$9.11/share (US$3.50/ADS). </li>
<li>Assuming the buyback is fully taken up, chairman Yuan Zhou's stake will increase to 44.4% from 42.9% currently (held via A shares and the weighted-voting B shares). </li>
<li>The key condition is a simple majority vote from independent shareholders. Zhihu is sitting on  net cash of US$764mn. A significantly larger buyback, or higher price, could have been initiated. </li>
</ul>


Back on the 19th July, online Q&amp;A play Zhihu (2390 HK/ZH US) announced the buyback of 46.92mn ordinary A shares (15.9% of shares out) at HK$9.11/share (US$3.50/ADS). 
Assuming the buyback is fully taken up, chairman Yuan Zhou's stake will increase to 44.4% from 42.9% currently (held via A shares and the weighted-voting B shares). 
The key condition is a simple majority vote from independent shareholders. Zhihu is sitting on  net cash of US$764mn. A significantly larger buyback, or higher price, could have been initiated. 


Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet 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>DeepSeek's (DS) own traffic declined as rivals launching white-label DS service but DS published research paper showing unmatched profit margin of 85%;</li>
<li>JD's take out initiative update: We think JD is serious but its effort will be in vain. We think JD.com knows it too.</li>
<li>Shopee and Lazada colluded to raise commission in SE Asia, benefiting both with no loss of market share.</li>
</ul>


DeepSeek's (DS) own traffic declined as rivals launching white-label DS service but DS published research paper showing unmatched profit margin of 85%;
JD's take out initiative update: We think JD is serious but its effort will be in vain. We think JD.com knows it too.
Shopee and Lazada colluded to raise commission in SE Asia, benefiting both with no loss of market share.


[Blue Lotus Non-US Internet Weekly, 9/52]: DeepSeek (DS) New Research Paper Showed 85% Profit Margin

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Debt / In Depth: China’s multitrillion-dollar salve for local government hidden debt</li><li>Argentina /: Argentinian President’s ‘chainsaw’ economic reforms catch Elon Musk’s eye</li><li>Jobless /: Hong Kong to require unpaid work for jobless welfare recipients</li></ul>

Debt / In Depth: China’s multitrillion-dollar salve for local government hidden debtArgentina /: Argentinian President’s ‘chainsaw’ economic reforms catch Elon Musk’s eyeJobless /: Hong Kong to require unpaid work for jobless welfare recipients

CX Daily: China’s Multitrillion-Dollar Salve for Local Government Hidden Debt 

<ul>
<li>
In Depth: As mass Covid testing becomes China’s new normal, debate grows over who pays.
</li>
<li>
Climate issues shouldn’t bear political labels, U.S. envoy says.
</li>
<li>
China’s premier puts greater emphasis on growth.
</li>
</ul>



In Depth: As mass Covid testing becomes China’s new normal, debate grows over who pays.


Climate issues shouldn’t bear political labels, U.S. envoy says.


China’s premier puts greater emphasis on growth.



CX Daily: As Mass Covid Testing Becomes China’s New Normal, Debate Grows Over Who Pays

<ul><li>In Depth: China’s plan to overhaul its $3.7 trillion mutual fund industry</li><li>Exclusive: Davos photo used by U.S. Congressman to criticize China didn’t show anyone Chinese</li><li>China pours on billions of dollars more in tax relief</li></ul>

In Depth: China’s plan to overhaul its $3.7 trillion mutual fund industryExclusive: Davos photo used by U.S. Congressman to criticize China didn’t show anyone ChineseChina pours on billions of dollars more in tax relief

CX Daily: China’s Plan to Overhaul Its $3.7 Trillion Mutual Fund Industry

China

Zhihu Inc. operates as an online share knowledge community. The Company provides a socialized website for questions and answers which enables users to obtain information through questions that provoke the opinions and views from answerers as individuals. Zhihu conducts businesses in China.

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Zhihu Technology (ZH US)

Zhihu (2390 HK/ZH US)'s Cheeky Buyback

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David Blennerhassett

[Blue Lotus Non-US Internet Weekly, 9/52]: DeepSeek (DS) New Research Paper Showed 85% Profit Margin

DeepSeek claimed profit margin of 85%, JD's take out initiative doubted, Shopee and Lazada collude to raise commission in SE Asia.

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CX Daily: As Mass Covid Testing Becomes China’s New Normal, Debate Grows Over Who Pays

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Caixin Global

CX Daily: China’s Plan to Overhaul Its $3.7 Trillion Mutual Fund Industry

In Depth: China’s plan to overhaul its $3.7 trillion mutual fund industry. Exclusive: Davos photo used by U.S. Congressman to criticize China...

Caixin Global

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