Disclosure NewswireTMiCrowdNewswire - Nov 3, 2017
Foreign investors’ interests in Chinese stocks have increased in the recent months. According to an article from Reuters, China’s central bank data showed that foreign holdings of Chinese shares surpassed 1 trillion yuan ($151.1 billion) for the first time in September. The foreign holding now accounted for 1.7 percent of China’s $9 trillion stock market capitalization. Bin Shi, head of China Equities at UBS Asset Management (Hong Kong) Ltd, said: “Overseas investors are attracted to A-share companies that cannot be bought elsewhere, such as Moutai, or Wuliangye.” Shineco Inc (NASDAQ: TYHT), Alibaba Group Holding Ltd (NYSE: BABA), JD.Com Inc (NASDAQ: JD), Xunlei Ltd (NASDAQ: XNET), Baidu Inc (NASDAQ: BIDU)
Chinese companies that are listed in other stock markets also had strong performances this year. Hong Kong stock market is one of the best performing stock markets in the world. The Hang Seng Index has gained nearly 30 percent this year, while Chinese mainland companies had contributed to the gains, U.S.-listed Chinese company stocks also surged this year. Shares of e-commerce giant Alibaba have more doubled in the last 11 months, while Baidu and JD.com have nearly 50 percent gains in stock price. “When you think about the growth runway still available to these Chinese technology companies, and the amount of revenue they’re still growing every year, then they really aren’t that ridiculously priced,” says Joseph Lai, portfolio manager of Platinum’s Asia fund.
Shineco Inc (NASDAQ: TYHT) recently announced breaking news this week, “on process of establishing an Apocynum Industrial Park in Xinjiang, China. Shineco has worked on the development of the apocynum industrialization since 1997, and has overcome two out of three technical obstacles in the past, which were “Steam Explosion Degumming” and “Blending of Multiple Apocynum Fibers.” The Company also collaborates with the Chinese Academy of Sciences and more than 20 research institutes, hospitals and textile mills.
Through the cooperation with Fucheng Air Source Precision Machinery Parts Co., Ltd, Shineco has successfully developed the apocynum straw separation machine, making apocynum industrialization possible. This breakthrough technology has ended a 50-year history of artificial separation process of apocynum, boosted the production efficiency by more than 200 times as well as lowed the cost of apocynum production for as much as 70%, As such, this marked a milestone that Shineco has overcome all of the three technical difficulties in apocynum industrialization. This new machine will be widely used in Apocynum Industrial Park in Xinjiang, China.
Apocynum is a special kind of Chinese herbal, which can be used to extract a unique fiber from its straw. Such fiber not only shares the similar characteristics of cotton, linen and silk, but also has a natural far infrared function and traditional Chinese medicine function. Therefore, many pharmaceutical company in the world are interested in developing the technologies that utilizes this attractive and profitable fibers. However, apocynum separation is a difficult process, mainly because the straw of the apocynum contains 25% gelatine, which makes processing apocynum very costly. A worker can separate only 2 kilograms apocynum a day, even after the apocynum has been prepared for processing, which requires being soaked in water for more than a month. As such, the high labor cost and the low production efficiency has been a significant obstacle to apocynum industrialization for a long time.”
Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, stated “We are very proud of achieving breakthrough in apocynum straw separation technology. Adding the generation of apocynum production with this proprietary technology undoubtedly positions ingenious to boost efficiency dramatically. We believe that the apocynum industry will be very excited about the robustness of this technology and quality of the production generated as well as the labor cost saved. We expected to harvest and separate 100,000 tons of apocynum by this winter and next spring, which will increase Shineco’s revenue for about 300 million RMBin 2018. In the meantime, encouraged by the China’s preferential tax policy for the agricultural products, we expected our net profit margin can reach 35% in the following year.”
Alibaba Group Holding Ltd (NYSE: BABA) announced yesterday its financial results for the quarter ended September 30, 2017. Net income was RMB17,408 million (US$2,616 million), income from operations was RMB16,584 million (US$2,493 million) and adjusted EBITDA was RMB25,031 million (US$3,762 million). Operating margin was 30%, adjusted EBITDA margin was 45% and adjusted EBITA margin for core commerce was 57%. “We had an outstanding quarter. Our consumer insights and technology innovation were the key drivers behind our customer value proposition across the Alibaba economy,” said Daniel Zhang, Chief Executive Officer of Alibaba Group. “We are seeing the early results from our efforts to integrate online and offline with our New Retail strategy, and consumers have benefited from access to high quality products, improved customer experience and the tremendous convenience of shopping anytime, anywhere.”
JD.Com Inc (NASDAQ: JD) announced that together with Tencent (00700.HK), a leading provider of internet services in China, the expansion of their partnership with the launch of the JD-Tencent Retail Marketing Solution. The initiative integrates insights on consumer behavior from Tencent’s social platforms with online and offline shopping data from JD and its brand partners. The two companies will develop a secure database of shopping data that will give brands the ability to better understand user preferences and target potential consumers. Consumers can benefit through the partnership of JD, Tencent and offline stores, giving them access to sales promotions, coupons and preferred discounts, regardless of whether they choose to shop online or in-store. Tencent Corporate Vice President Davis Lin said, “This expanded partnership ensures that consumers will see only the marketing most relevant to them, which increases engagement and creates tremendous efficiencies for both brands and shoppers.”
Xunlei Ltd (NASDAQ: XNET) announced recently its unaudited financial results for the second quarter ended June 30, 2017. Total revenues were US$41.5 million, an 8.9% increase from the corresponding period of last year and up 4.9% from the previous quarter. Mr. Lei Chen, Chief Executive Officer of Xunlei, commented: “We are pleased to deliver solid progress in the second quarter, particularly in cloud computing and mobile advertising. In addition, our receipt of a value added telecommunications services license additionally covering CDN services issued by the Ministry of Industry and Information Technology of the People’s Republic of China is a further testimony of the potential viability of our technology and regulatory support. We are committed to continue our endeavor in cloud computing technology as a cornerstone strategy to grow our business.”
Baidu Inc (NASDAQ: BIDU) announced earlier in August that an investor consortium led by the Company had entered into a share purchase agreement with China United Network Communication Limited (SHA: 600050), one of the largest telecommunications companies in China. The Buyer Group will invest RMB7.0 billion in exchange for privately issued shares of China Unicom. In connection with the investment, Baidu has entered into a business cooperation agreement with China Unicom. The investment is part of China Unicom’s mixed-ownership reform pilot-run plan.
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