CLN
Q1 Earnings Reports
Trip.com
Trip.com (9961 HK, TCOM US) reported Q1 financial results after yesterday’s US market closed. The stock was off by -2.22% overnight despite lagging its internet peers and the Hong Kong market year to date (YTD). The lack of Q2 guidance weighed on sentiment.
- Revenue increased by +16% year-over-year (YoY) to RMB 13.8B ($1.9B) from RMB 11.9B and versus expectations of RMB 13.8B.
- Adjusted Net Income was RMB 4.2B ($579mm) from RMB 4.06B and versus expectations of RMB 3.84B.
- Adjusted EPS was RMB 5.96 ($0.82) from RMB 6 and versus expectations of RMB 5.66.
Bilibili
Online video community Bilibili (9626 HK, BILI US) reported Q1 financial results that exceeded expectations after the Hong Kong close today. Shares are higher in US pre-market trading.
- Revenue increased by +24% YoY to RMB 7B ($965mm) from RMB 5.66B and versus expectations of RMB 6.91B.
- Adjusted Net Income increased to RMB 361.5mm ($49.8mm) from a loss of RMB 455.9mm and versus expectations of RMB 247mm.
- Adjusted EPS was RMB 0.85 ($0.12) from a loss per share of RMB 1.06 and versus expectations of RMB 0.55.
- Active Daily Users increased to 106.7mm from 102.4mm.
Vipshop
Online discount retailer Vipshop (VIPS US) reported Q1 earnings before the US market opened this morning. The company’s plans to relist in Hong Kong are a big question for the earnings call. While the probability of an ADR delisting is low, policy errors do occur. The lack of a Hong Kong listing is a risk to the founders, management, employees, and shareholders, with a fairly simple solution available. Shares are lower in US pre-market trading.
- Revenue decreased to RMB 26.3B ($3.6B) from RMB 27.6B and versus expectations of RMB 26.33B.
- Adjusted Net Income fell to RMB 2.3B ($318mm) from RMB 2.6B and versus expectations of RMB 2.24B.
- Adjusted EPS fell to RMB 4.43 ($0.61) from RMB 4.66 and versus expectations of RMB 4.32.
- Active users fell to 41.3mm from 43.1mm.
- Total Orders fell to 167.2mm from 178.5mm.
- During the March 31, 2025, quarter, the Company repurchased US$16.9 million of its ADSs. The Company has fully utilized its US$1.0 billion share repurchase program adopted in March 2023. It has continued share repurchases of US$4.3 million under its current US$1.0 billion share repurchase program, effective 24 months through February 2027.
- For the second quarter of 2025, the Company expects its total net revenues to be between RMB25.5 billion and RMB26.9 billion, representing a YoY decrease of approximately 0% to 5%.
Key News
Asian equities delivered mixed performance overnight despite a stronger US dollar, as the yield on the Japanese 30-Year Government Bond rose to a record high of 3.1%. Hong Kong and Vietnam led gains in the region, while India and the Philippines underperformed.
The People’s Bank of China (PBOC) cut the 1-Year Loan Prime Rate (LPR) to 3.0% from 3.1% and the 5-Year LPR to 3.5% from 3.6%, as reported by Reuters. Chinese banks responded by lowering deposit rates, with lending rates expected to follow. The demand deposit rate fell to 0.05% from 0.1%, and the 1-Year deposit rate dropped below 1% for the first time, to 0.95%. Mainland media reported that banks in Beijing and Shanghai were adjusting mortgage rates, which are based on the 5-Year LPR. This move marked another step in China’s ongoing easing cycle, with further cuts anticipated.
China’s Ministry of Finance reported that national general public budget revenue declined by 0.4% year-over-year, while national government fund budget expenditure increased by 17.7% year-over-year. The Chinese government continues to stimulate the economy through both fiscal and monetary measures.
In equity markets, Contemporary Amperex Technology Co. Limited (CATL) surged 16.43% in its Hong Kong initial public offering, the largest globally so far this year. The robust IPO pipeline and rebounding trading volumes signal renewed strength in Hong Kong’s stock market.
3SBio Inc. gained 32.28% after announcing a licensing agreement with Pfizer for its cancer drug. The United States Food and Drug Administration (FDA) approved SSGJ-707 for the treatment of non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors, according to Bloomberg. Xiaomi rose 4.68% after announcing production of its “Xring 01” semiconductor chip.
Hong Kong’s rally was broad, as advancers outnumbered decliners by three to one. Sixty-eight companies reached 52-week highs, compared to 23 hitting 52-week lows. Mainland investors purchased a net $808 million of Hong Kong-listed stocks. Mainland China equities also moved higher on positive breadth, though trading volumes were slightly lower. The Hang Seng Index and Shanghai Composite Index have both cleared the Liberation Day gap, while the Shenzhen Component Index and Hang Seng Tech Index are just above this level. The positive momentum may continue if these trends persist.
Investor’s Business Daily recently published an article by Juan Carlos Arancibia, “Bon Voyage, Investors,” highlighting the strong performance of non-U.S. equity markets and examining catalysts across global regions as “U.S. exceptionalism falters.” It is a worthwhile read for those interested in the shift in global equity leadership.
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Last Night’s Performance
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Last Night’s Exchange Rates, Prices, & Yields
- CNY per USD 7.21 versus 7.21 yesterday
- CNY per EUR 8.12 versus 8.12 Friday
- Yield on 10-Year Government Bond 1.70% versus 1.69% Friday
- Yield on 10-Year China Development Bank Bond 1.70% versus 1.69% Friday
- Copper Price +0.15%
- Steel Price -0.42%
