GMT EIGHT - General News

"Core Core" Thriving! A group of chip "top students" with doubled performance, main influencing factors exposed.

With the gradual recovery of the global semiconductor market, several A-share chip companies have released performance forecasts for 2024, expecting a significant increase in net profit. Based on the performance forecasts disclosed in the past two days, several chip companies have shown doubled growth in their 2024 performance. Among them, Hangzhou Changchuan Technology's performance forecast is the most eye-catching, expecting a maximum tenfold increase in net profit in 2024; Will Semiconductor, with a market value of one trillion and GigaDevice Semiconductor Inc., with a market value of 80 billion, are expected to have a year-on-year net profit growth of around 500%. Nexchip Semiconductor Corporation, Jiangsu Jiejie Microelectronics, and Ruixin Microelectronics, which disclosed their performance forecasts on Monday, also saw their performance increase by over 100% in the previous year. Additionally, Shanghai Belling Corp., Ltd. reported a turnaround in net profit. The main reasons for the forecasted increase in performance by the above companies are attributed to the recovery of the semiconductor industry and the rebound in market demand. Specifically, Hangzhou Changchuan Technology's performance forecast shows that it expects a net profit attributable to shareholders of listed companies of 400 million to 500 million yuan in 2024, a growth of 785.75% to 1007.18% compared to the same period last year. The net profit excluding non-recurring gains and losses attributable to shareholders of the listed company is expected to be 359 million to 459 million yuan, an increase of 568.93% to 699.55% compared to the same period last year. The company stated that the main reasons for the performance growth are the recovery of the global semiconductor market, the improvement in the company's market image, brand value, core competitiveness, significant growth in operating income, the manifestation of economies of scale, stabilization of expense ratios, and the impact of government subsidies. GigaDevice Semiconductor Inc. released its performance forecast, expecting a net profit attributable to shareholders of listed companies of around 1.09 billion yuan in 2024, a year-on-year growth of around 576.43%. The net profit after deducting non-recurring gains and losses attributable to shareholders of listed companies is expected to be around 1.03 billion yuan, an increase of around 3659.04% year-on-year. The main reasons cited by the company are the recovery in downstream market demand in the industry, significant growth in revenue and sales volume in consumer, networking, and computing sectors, increased investment in research and development and product iteration, optimization of product costs, enrichment of product matrices, and enhancement of competitiveness in multiple product lines. Additionally, asset impairment losses in 2024 decreased significantly compared to 2023. Will Semiconductor released its performance forecast, expecting a net profit of 3.155 billion to 3.355 billion yuan in 2024, an increase of 467.88% to 503.88% year-on-year. The company stated that during the reporting period, with the continuous penetration of image sensor products in the high-end smartphone market and automotive autonomous driving applications, the market share in related areas has steadily grown, and the company's operating income and gross profit margin achieved significant growth, setting a historical record for operating income; in addition, in response to the impact of industry fluctuations, the company actively promoted the optimization of product structure and supply chain structure, gradually restored product gross margins, and significantly improved overall performance. Nexchip Semiconductor Corporation reported its performance forecast, expecting annual operating income of 9.02 billion to 9.47 billion yuan in 2024, an increase of 24.52% to 30.74% year-on-year. It expects a net profit of 455 million to 590 million yuan attributable to the parent company's owners, an increase of 115.00% to 178.79% year-on-year. The company cited the main reasons as the recovery of industry sentiment during the reporting period, maintaining a high utilization rate of overall production capacity, improving operating income and product gross margins, continuous expansion into various application areas and development of high-end products, enhancing competitive advantages and diversification of products. In addition, the company continues to increase R&D investment and promote the mass production and development of new products. Jiangsu Jiejie Microelectronics released its performance forecast, expecting a net profit attributable to shareholders of listed companies of 438 million to 504 million yuan from January 1 to December 31, 2024, an increase of 100% to 130% year-on-year. The company stated that the reasons for the performance growth are the moderate recovery of the semiconductor industry during the reporting period, the increase in comprehensive production capacity, maintaining high utilization of production capacity, growth in operating income and net profit compared to the same period last year. Subsidiary Jiangsu Jiejie Microelectronics (Nantong) Technology Co., Ltd. saw improved profitability, with net profit significantly increasing compared to the same period last year. Shanghai Belling Corp., Ltd. released its performance forecast, expecting a net profit of 380 million to 400 million yuan in 2024, a turnaround year-on-year; and an adjusted net profit of 2.68 billion to 2.88 billion yuan, an increase of 58% to 69% year-on-year. The main reasons for the company's performance change are the partial recovery of the integrated circuit industry, the penetration of its products in the automotive electronics and industrial control fields, and a significant increase in revenue. In addition, changes in the fair value of shares held by Wuxi Nce Power Co., Ltd. and investment income of about 126 million yuan, increased by about 397 million yuan compared to the same period last year. Ruixin Microelectronics released its performance forecast on Monday, expecting an annual operating income of 3.1 billion to 3.15 billion yuan in 2024, an increase of 45.23% to 47.57% year-on-year; and expecting a net profit of 550 million to 630 million yuan, an increase of 307.75% to 367.06% year-on-year. The company stated that the performance growth is driven by the recovery of global demand in the electronics market, rapid development of AI technology, continuous expansion of application scenarios, and driving the company's AIo.The growth in various industries was comprehensive. During the reporting period, the company achieved rapid growth in automotive electronics, machine vision, industrial and industrial applications. At the same time, the company will continue to leverage its core technology, products, and scene advantages in AIoT, focusing on the development of automotive electronic products, industrial applications, machine vision, and AIoT product lines such as Siasun Robot and Automation.This article is reposted from Caixin, edited by GMTEight: Chen Wenfang.

4 h ago

Approval information for domestic online games in January was released, with a total of 123 games approved.

On January 21, the State Administration of Press and Publication released the approval information for domestic online games in January 2025. A total of 123 games were approved, including "Alien War" under Shenzhen Zqgame (300052.SZ).

21/01/2025

In January, licenses for the import of online games were issued, with a total of 13 games approved. Kingnet Network (002517.SZ) and NetEase (09999) are among them.

On January 21, the National News and Publication Administration released the approval information for imported online games for January, with a total of 13 games approved. Netease's "Frostpunk: The Last Haven" and Kingnet Network's "Blood and Jade: Return" were among the list of approved games.

21/01/2025

TrendForce: It is projected that the production output of the 210 series silicon wafers will account for nearly 60% by 2025.

TrendForce predicts that by 2025, the output of 210 series silicon wafers will account for nearly 60%, and will continue to grow in the coming years, while products of 182 and smaller sizes will fade out of the market. Nine out of the TOP10 component manufacturers have already established plans for the layout of 210/210R size components. The 210 technology has become a leading force in industry transformation, leading the photovoltaic industry towards a new phase of development, reshaping the industry landscape and future direction. By 2025, the output of 210 series silicon wafers will account for nearly 60%, marking the beginning of a new competitive landscape in the industry. Large-size silicon wafers have become the mainstream in the market, with the market share of 210 and 210R size silicon wafers continuously rising, driving the photovoltaic industry towards high power and low cost direction. In the second half of 2024, with the release of the production capacity of 210/210R TOPCon cells by top manufacturers such as Trina Solar Co., Ltd., Jinko Solar, and JA Solar Technology, the market share of 210 and 210R silicon wafer sizes rapidly increased. Additionally, specialized companies accelerated their upgrade from 182L to 210R or 210, reshaping the competitive landscape of the silicon wafer market. TrendForce estimates that with the large scale release of 210R N cells in Q2 of 2025 and the upgrade from 182L size, the penetration rate of 210 and 210R size products will continue to rise, reaching a combined market share of 58.4%, while the 182 camp, lacking power advantages, will decline significantly from 60.3% in 2024 to 41.7% in 2025. In the coming years, the market share of 210 and 210R silicon wafer production capacity will continue to increase, and is expected to exceed 90% by 2029, reaching 91.2%, while the market share of 182 size products will be lower than 10%, gradually phasing out of the market. The 210 series of silicon wafer production capacity is expected to exceed 85%, with the industry shipping nearly 380GW of 210 components. Currently, the mainstream companies are focusing on the layout of 210 and N-type technologies, with large-size production capacity exceeding 95% and the space for components sized 166 and below being squeezed. TrendForce predicts that by 2025, the production capacity of large-size components will reach 1351GW, with a market share of approximately 98%, of which 210 and 210R size components will account for 85.7%. Lead by N-type battery cells, the 210 series is paving the way for a new era of high efficiency in the photovoltaic industry. On the pathway to improving component efficiency, rectangular silicon wafers have become a breakthrough for companies. In 2022, Trina Solar Co., Ltd. was the first to release related products, initiating the "rectangular wave" in components. In July 2023, Trina Solar Co., Ltd. collaborated with 8 leading component companies to establish the 2382mm1134mm rectangular silicon wafer size standard, leading 210R components towards standardization. In 2024, at the SNEC exhibition fair, the 210R model was widely welcomed by the industry with nine of the TOP10 component giants entering the race for market entry.At the exhibition, 37 mainstream photovoltaic companies, represented by Trina Solar Co., Ltd., showcased 2382mm1134mm medium-sized standard size modules. Among them, 30 companies featured 210R size modules, with nine out of the top 10 module companies clearly specifying a rectangular layout for their 210R size modules. With the layout of rectangular silicon wafers, the power of mainstream manufacturers' medium-sized modules all exceeded 600W.TrendForce analyst stated that the emergence of rectangular silicon wafer modules indicates that the industry's long-standing dispute over the optimal photovoltaic size in the mid-size sector for nearly four years is coming to an end. Although there are still some niche rectangular silicon wafer sizes, the 182 and 210 are the two major camps that have reached a relatively common consensus on the use of 210R rectangular silicon wafers. Leading companies are quickly expanding their production and are expected to release their capacity in the second quarter of 2024. Market share of rectangular modules led by 210R is expected to significantly increase by 2025. Looking ahead, continuous iteration and upgrade of the 210 technology are expected to help the photovoltaic industry move towards a higher development stage. The deep integration of 210 technology with N-type technology will give rise to more competitive products and solutions, injecting new vitality into the industry.

21/01/2025

China Association of Automobile Manufacturers: The top ten sedan production companies in 2024 sold a total of 7.915 million vehicles.

According to the statistics and analysis of the China Association of Automobile Manufacturers, in 2024, the top ten sedan production companies sold a total of 7.915 million units, accounting for 68.7% of total sedan sales. Among the ten companies mentioned above, compared with the same period last year, BYD COMPANY (01211), GEELY AUTO (00175), SAIC-GM-Wuling, and China FAW all saw double-digit growth in sales, while Chery Automobile saw a slight increase in sales, and sales of other companies decreased to varying degrees.

21/01/2025

Cui Dongshu: In 2024, China's car imports of 700,000 units decreased by 12% year-on-year, marking three consecutive years of negative growth.

Cui Dongshu, secretary-general of the China Association of Automobile Manufacturers, stated that the import volume of cars in China has been decreasing by an average of around 8% per year since 2017, reaching only 80,000 units in 2023. In December 2024, car imports decreased by 12% year-on-year, with 70,000 units imported. In December 2024, there were 6,700 imported cars, a 16% decrease year-on-year but a 12% increase compared to November, making it an unusual and significant drop in December. With the rise of domestic cars and the acceleration of localization of international brands, car imports have been persistently low in recent years, experiencing negative growth for three consecutive years from January to December. There is greater pressure for growth in imported cars in December. The top 10 countries with the highest number of imports in December 2024 were Japan with 34,854 vehicles, Germany with 13,317 vehicles, the United States with 9,400 vehicles, the United Kingdom with 2,722 vehicles, Slovakia with 2,629 vehicles, Sweden with 1,644 vehicles, Mexico with 1,269 vehicles, Austria with 551 vehicles, Hungary with 419 vehicles, and South Korea with 241 vehicles. Japan saw the largest year-on-year increase in December, followed by Germany, Mexico, Poland, and Belgium. In January-December 2024, the countries with the highest number of imported cars were Japan with 227,870 vehicles, Germany with 192,648 vehicles, the United States with 109,356 vehicles, Slovakia with 62,412 vehicles, the United Kingdom with 45,078 vehicles, Sweden with 22,172 vehicles, Austria with 10,779 vehicles, Hungary with 8,062 vehicles, Mexico with 8,018 vehicles, and South Korea with 4,759 vehicles. The countries with the largest increase in imports this year were Japan, Hungary, China, Belgium, and France. As the Chinese automobile industry continues to grow stronger, the transformation to electrification is changing the market demand structure, leading to a continuous decline in demand for fuel cars, including imported fuel cars. With increasingly complex international relations, it is necessary to prepare for more complex import patterns to maintain a reasonable scale of imported cars. I. Overall trend of imported cars in China 1. Characteristics of car import growth After reaching a peak of 1.43 million units in 2014, imported cars began to decline. Import growth slightly stabilized and improved in 2016-2017 but has been declining since 2018. In 2023, the import volume sharply decreased, reaching only 800,000 units for the whole year, a 10% decrease year-on-year. Currently, the monthly import volume for 2024 remains around 50,000 units, showing a significant decline. In December 2024, 67,000 cars were imported, a 16% decrease year-on-year but a 12% increase compared to November, a rare and significant decline in December. From January to December, 700,000 cars were imported, a 12% decrease year-on-year. With the rise of domestic cars and the acceleration of localization of international brands, car imports have been continuously low in recent years, showing negative growth for three consecutive years from January to December, making it seven consecutive years of negative growth if fluctuations are smoothed out. The car import market stabilized in 2021, with a total import of 930,000 units, remaining stable year-on-year. In 2022, the import volume reached 880,000 units, a 5% decrease year-on-year, a significant decrease compared to 2020. In 2023, the import volume further decreased to 799,000 units, a 10% decrease year-on-year. In response to current complex international relations, the scale of car imports was increased in July and August to prevent risks, leading to a reduction in inventory pressure after reduced imports from September to December. 2. Monthly trend of whole vehicle imports The import of passenger cars has returned to a normal trend after the pandemic. Looking at the monthly trend, imports in recent years have shown a recovery and growth trend similar to that of domestic cars. In 2024, a normal seasonal trend was observed, with imports from January to April weaker than the same period in 2023. Imports rebounded in May, and from June to August, recovery was good. Imports from February to August in 2024 showed continued strength, but from September to December, there was a sharp decline, with significant pressure on high-end consumption. Many dealers are waiting for tax increases to reduce existing inventory. 3. Characteristics of the structure of whole vehicle imports The import car markets from 2017 to 2019 were relatively stable. In 2023, whole vehicle imports reached 800,000 units, showing a significant decline compared to 2022. From January to August 2024, the import of passenger cars slowed down, further reflecting pressure from September to December. Currently, the import of passenger cars in December is lower than demand, traditional truck imports are weaker, and the inventory reduction is evident. Passenger cars account for 98% of the structure of imported cars, with 305,000 sedans imported from January to December 2024, accounting for 44%; 226,000 imported four-wheel-drive SUVs, accounting for 33%; and 16,800 unlisted new energy vehicles, accounting for 2%. The performance of commercial vehicle imports in 2024 was average, especially with an increase in truck imports at the beginning of the year, but little strength in tractor trailers and medium-sized trucks from May to December. Passenger car imports account for 98% of all car imports, with pickups in the light truck category further increasing the proportion of passenger cars. This year, the import share of four-wheel-drive SUVs has increased. 4. Characteristics of the structure of imported new energy vehicles In recent years, imported new energy passenger cars have shown continuous high growth, but in 2024, there was a sharp decline. In December, imports of pure electric passenger cars decreased by 48% to 795 units, and plug-in hybrids decreased by 73% to 561 units. From January to December, imports of pure electric passenger cars decreased by 48% to 16,768 units, while plug-in hybrids decreased by 73% to 10,149 units, indicating weak performance for imported new energy passenger cars. The traditional fuel market for passenger cars experienced a significant decline, with diesel trucks making a comeback in the truck category while the proportion of gasoline trucks decreased in line with traction vehicle demand. Imports of high-end gasoline pickups in 2024 showed slow performance. Recently, the market for new energy passenger cars has shown relatively strong performance, with the market for imported pure electric vehicles also performing relatively well. In December, the share of imported new energy vehicles reached 2%, and from January to December, the import share of new energy passenger cars reached 3%, with a slight decrease in pure electric cars compared to last year, indicating that fuel passenger cars continue to dominate. Gasoline cars account for a high proportion in the truck category, with diesel trucks performing well. 5. Characteristics of imported passenger cars by engine displacement Imported passenger cars are concentrated in the 2-liter and below gasoline models, with good resilience in the 3-4 liter displacement category. Imported passenger cars are concentrated in the 2-liter and below gasoline models, accounting for 66% of the total imported gasoline cars in December. In recent years, the import of 2-liter displacement cars has... Sedans have become the absolute main force. The sales of large-displacement imported cars with a strong trend in the early stage of 2.5-3 liters have decreased, and the decline in the fourth quarter of this year is significant. The proportion of 2-2.5 liters has noticeably rebounded, and the market's trend towards high-end is not strong.6-8 months, large displacement vehicles of 4 liters or more have temporarily increased, with import tariffs being a noticeable factor for risk hedging. However, demand is weak, and imports of large displacement vehicles are expected to fall in 9-12 months. II. Automobile Import Market Pattern 1. Import characteristics by country The main countries for imported passenger cars in China are still Japan, Germany, and the United States. Recently, imports from Slovakia have seen a significant decline. 2. Monthly trend of whole vehicle imports Pressure on imported cars in December is significant. The top 10 countries with the highest imports in December 2024 were Japan with 34,854 vehicles, Germany with 13,317 vehicles, the United States with 9,400 vehicles, the United Kingdom with 2,722 vehicles, Slovakia with 2,629 vehicles, Sweden with 1,644 vehicles, Mexico with 1,269 vehicles, Austria with 551 vehicles, Hungary with 419 vehicles, and South Korea with 241 vehicles. The countries with the highest year-on-year increases in December compared to the previous year were Japan with 1,141 vehicles, Germany with 782 vehicles, Mexico with 508 vehicles, Poland with 107 vehicles, and Belgium with 37 vehicles. From January to December 2024, the countries with the highest import of vehicles were Japan with 227,870 vehicles, Germany with 192,648 vehicles, the United States with 109,356 vehicles, Slovakia with 62,412 vehicles, the United Kingdom with 45,078 vehicles, Sweden with 22,172 vehicles, Austria with 10,779 vehicles, Hungary with 8,062 vehicles, Mexico with 8,018 vehicles, and South Korea with 4,759 vehicles. The countries with the highest import increases this year were Japan with 4,172 vehicles, Hungary with 2,809 vehicles, China with 2,683 vehicles, Belgium with 661 vehicles, and France with 311 vehicles. 3. Characteristics of new energy vehicle imports Before 2019, the import volume of new energy vehicles was high, but in 2021, the decline in pure electric vehicles due to the production of Tesla domestically was significant. The decline in pure electric vehicles in 2021 due to the production of Tesla domestically was significant. However, in 2022-2023, the development of new energy vehicles was good, leading to more companies importing new energy vehicles. The import of new energy vehicles from main countries in 2024 has significantly slowed down, and domestically produced vehicles are more competitive. The trend of importing new energy passenger cars from Italy this year is strong. III. Automobile Market Sales Pattern 1. Overall sales of imported vehicles Due to the strong presence of Chinese domestic car companies, the performance of imported car sales has been consistently weaker, and they have performed weaker than the trend of domestic luxury car markets. In 2021, import car sales reached 940,000 units, a 6% decrease compared to 2020. In 2022, the sales of imported cars were 840,000 units, a large decrease of 10% compared to 2021, and relatively weaker than the performance of domestic cars. Finally, in 2023, sales started to grow positively, reaching 910,000 units, an 8% increase. From January to December 2024, the number of compulsory insurance data for imported cars was 800,000 units, a 12% decrease compared to the previous year. Due to the promotion of the low base, the retail sales of imported cars in January-December this year are generally normal, but the future pressure remains significant. The sales trend of imported cars has drastically declined, recently dropping to 80,000 units. 2. Characteristics of imported car brands In recent years, the sales of ultra-luxury imported cars have been continuously growing, but there was a significant 12% decline from 2023, accelerating in January-December 2024. Bentley's performance is relatively strong. The overall trend of Maserati and Rolls-Royce has been sluggish, and the overall weakness of ultra-luxury cars reflects the temporary slowdown in purchasing power of the super high-end consumer group. However, high-end brands such as Ferrari and Lamborghini performed well in December. Currently, imported cars are mainly supported by the demand for luxury cars, while non-luxury imported cars have shrunk dramatically. The proportion of luxury cars among imported cars has significantly increased. Lexus's import retail sales in 2024 increased by 0%, showing good performance. BMW, Audi, and Land Rover performed relatively well, while Porsche's recent performance was weak. Joint venture brand imported cars are rapidly shrinking, with brands like Toyota, Volkswagen, and Subaru experiencing drastic declines in imported cars. 3. Characteristics of regional changes in imported ultra-luxury car brands Overall, the demand in the imported car market is weak, with pressure on regions like Shanghai, Shenzhen, Beijing, and Chengdu, which are traditional affluent areas, having higher pressure in the ultra-luxury imported car market. New energy cars have little impact on ultra-luxury cars, as the affluent want to reflect their status. Due to the special business and identity characteristics of ultra-luxury cars, the overall market demand is not good. 4. Characteristics of regional changes in luxury cars Overall, the demand for luxury cars in both domestic and imported markets is weak, with traditional affluent areas like Shanghai, Shenzhen, Beijing, Hangzhou, and Tianjin facing greater pressure in the luxury car market.

21/01/2025

Pingtung Consulting: Preliminary assessment shows that the 0121 earthquake did not cause significant damage to the Tainan wafer factory, but it may worsen the tight supply of TV panels in the first quarter of 2025.

According to TrendForce's survey on the impact of the 6.4 magnitude earthquake in Chiayi on January 21 on nearby wafer foundries and panel factories, TSMC (Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR) (TSM.US) and UMC (United Microelectronics Corp. Sponsored ADR) (UMC.US) factory in Tainan were affected as the intensity of the earthquake reached above level 4. Personnel were evacuated and operations were halted for inspection, but no major damage to the equipment was reported, only some inevitable fragmentations in the furnaces. Tainan is also an important panel production area, and the actual impact on manufacturers is yet to be confirmed, but the earthquake may exacerbate the supply pressure for TV panels in the first quarter of 2025. TrendForce stated that TSMC has an 8-inch factory and two 12-inch wafer factories in Tainan, producing from mature processes to the latest 5/4nm and 3nm processes. UMC operates a 12-inch factory in the area, including processes from 90nm to 14nm. The affected facilities have gradually resumed normal operations since the morning of the 21st, and the impact on actual production is within a controllable range. Although the products manufactured by the wafer foundries in Tainan are diverse, the overall capacity utilization of mature processes is around 70% to 80% due to the traditional off-peak season for various components. There is still significant room for adjustment on the production line. As for advanced processes, TrendForce expects that the current production is mainly stockpile preparation, so the impact of temporary shutdowns or minor fragmentations can be easily compensated, and it is not expected to cause significant disruptions. In the panel industry, Tainan is the main base for display giant Innolux. Their factories in Tainan are Fab2, Fab3, Fab5, Fab6, Fab7, while the nearby factories in Kaohsiung are Fab8, Fab8b, and T6. Due to the historical nature of the facilities and the intensity of the earthquake, some machines in Tainan factories were temporarily shut down, and the extent of the damage is still being assessed. It is estimated that this earthquake will put some pressure on the already tight supply of TV panels in the first quarter.

21/01/2025

In December 2024, the overall sales volume of heavy-duty trucks of Shanxi Guoxin Energy Corporation reached a new high, with electric heavy-duty trucks sales increasing by 235% year-on-year.

The First Commercial Vehicle Network reported that in December 2024, the overall sales of heavy trucks from Shanxi Guoxin Energy Corporation reached a new record high of 15,200 units. As the most outstanding segment in the new energy heavy truck market in 2024, the performance of electric heavy trucks in December was still very impressive, with actual sales of 8,942 units, a year-on-year increase of 235%, breaking the record for highest monthly sales once again. In December, actual sales of 8,942 units increased by 235%, breaking the record for highest monthly sales again In December 2024, a total of 15,200 units of new energy heavy trucks were sold in the domestic market (note: the data in this article is based on the actual sales data from compulsory insurance and does not include exports and military vehicles, the same below). This represented a 51% increase from November, with a year-on-year increase of 146%. In December, pure electric heavy trucks (including battery-swapping and charging heavy trucks) sold 14,500 units, accounting for 95.57%, a slight increase from the previous month (94.18%). Among them, sales of charging heavy trucks reached 8,942 units, a 38% increase from the previous month and a 235% year-on-year increase, surpassing the growth rate of the previous month (+190%). In 2024 as a whole, the charging heavy truck market achieved a "12-month growth streak," with year-on-year growth rates exceeding 100% in all 12 months, averaging at 213% per month. In December, the 235% year-on-year growth of charging heavy trucks continued to outperform the overall new energy heavy truck market. This marked the 16th consecutive month that charging heavy trucks outperformed the overall new energy heavy truck market. In December, charging heavy trucks accounted for 61.56% of pure electric heavy truck sales, a decrease from the previous month (68.52%). According to the observations of the First Commercial Vehicle Network, the proportion of charging heavy trucks in the sales of pure electric heavy trucks has shown a clear upward trend since 2023, which continued into 2024. By the end of 2024, charging heavy trucks accounted for 62.76% of the sales of pure electric heavy trucks for the whole year, an increase of over 11 percentage points compared to 2023 (51.56%) and a significant increase of nearly 18 percentage points compared to 2022 (45.16%). Looking at the trend of monthly sales of charging heavy trucks from 2020 to 2024, it can be seen that prior to 2024, monthly sales of charging heavy trucks had never exceeded 3,000 units. However, in 2024, there were 7 months with sales exceeding 3,000 units, with 6 months exceeding 4,000 units (June, September, and October), sales surpassing 6,000 units in November, and reaching nearly 9,000 units in December, setting a new high for monthly sales. It is worth noting that after June 2024, the cumulative sales of charging heavy trucks exceeded the total sales for the whole year of 2023. By the end of 2024, a total of 48,400 charging heavy trucks had been sold, roughly 3.1 times the total sales of 2023. In terms of specific vehicle types, the charging heavy trucks that were introduced in 2024 were mainly tractor trucks, dump trucks, and concrete mixers, reaching 30,100, 7,647, and 6,294 units respectively, accounting for 62.26%, 15.81%, and 13.01%. Additionally, street washing trucks, cleaning trucks, and other sanitation vehicles were also important segments for charging heavy trucks, accounting for a total of 8.51%. Throughout 2024, new energy heavy trucks were registered in all 31 provinces (cities, regions) in China, and charging heavy trucks entered all 31 provinces (cities, regions). Specifically, due to the promotion of pure electric sanitation vehicles (with charging models as the main force) nationwide, by the end of 2024, a total of 295 cities had registered charging heavy trucks in China (and 256 cities had registered battery-swapping heavy trucks), with 91 cities registering over a hundred units. Cities with registrations exceeding 1,000 units include Shenzhen, Changsha, Shijiazhuang, Chengdu, Shanghai, Zhengzhou, Changzhi, Handan, Tangshan, Xuzhou, Tianjin, and Xi'an. Sany tops the monthly list with over 2,000 units, Jiefang sees significant increase in market share for the whole year In December 2024, the actual sales of charging heavy trucks reached 8,942 units, a 235% increase compared to the same month the previous year, with mainstream enterprises maintaining high levels of performance. Among them, Sany led the monthly ranking with 2,507 units of sales, while XCMG and Jiefang ranked 2nd and 3rd, both with sales exceeding 1,000 units, reaching 1,517 and 1,191 units respectively. Dongfeng, Shaanxi Automobile, and FAW ranked 4th to 6th with 882, 643, and 624 units respectively. Yutong and Foton also had sales exceeding 300 units, reaching 476 and 311 units respectively, ranking 7th and 8th on the monthly list. Youngman and JAC ranked 9th and 10th with 276 and 213 units respectively, and the differences between neighboring enterprises were not significant. As shown in the chart above, compared to the same period the previous year, in December 2024, the top ten enterprises in charging heavy truck sales saw 9 increases and 1 decrease, with most enterprises doubling their sales and at least doubling by 2. Sany, Jiefang, Dongfeng, Shaanxi Automobile, Foton, and JAC all saw increases of at least three times, with Foton and JAC increasing by 1381% and 21,200% respectively, reaching explosive levels of growth. For the whole year of 2024, a total of 48,400 charging heavy trucks were sold in China, a 209% increase compared to the previous year, which was 5 percentage points higher than the increase after November (+204%), continuing to significantly outperform the overall growth of the new energy heavy truck market in 2024 (+140%), as well as the cumulative growth of pure electric heavy trucks (+154%). Charging Heavy Truck Enterprise Sales in January-December 2024 (unit: units) As shown in the table above, in 2024, most enterprises saw growth in charging heavy truck sales compared to the previous year, with 10 out of the top 12 enterprises achieving double-digit growth. Sany, Jiefang, FAW, Shaanqi, Foton, Unifinished Heavy Truck, and JAC saw increases of 220%, 662%, 402%, 322%, 441%, 528%, and 1906% respectively, surpassing the overall growth of the charging heavy truck market of 209%, outperforming the charging heavy truck market. The "big picture"; XCMG, Yutong, and Dongfeng also saw significant increases of 191%, 121%, and 126% respectively, while Youngman achieved double-digit growth. In terms of market share, in 2024, the charging heavy truck market saw 3 companies with a significant market share. (Continued in next message)More than 10%, with the top-ranking Sany accumulated sales of electric heavy-duty trucks reaching 12,200 units, with a market share of 25.14%, Sany also became the first enterprise to sell over 10,000 electric heavy-duty trucks annually; Xugong ranked second, with accumulated sales of 7,154 electric heavy-duty trucks in 2024, and a market share of 14.79%; Jiefang ranked third with accumulated sales of 6,021 vehicles, reaching a market share of 12.45%, a significant increase of 7.4 percentage points from 2023; Yutong, FAW, and Dongfeng ranked fourth to sixth with sales exceeding 4,000 units each, reaching 4,711 units, 4,349 units, and 4,057 units respectively, with market shares of 9.74%, 8.99%, and 8.39%, respectively. FAW's market share increased by 3.45 percentage points compared to 2023; Shaanxi and Foton, ranking seventh and eighth, sold over 2,000 units in 2024, with market shares of 6.90% and 5.65%, respectively. Both Shaanxi and Foton saw an increase in market share compared to 2023; Yuchai, ranking ninth, sold 1,640 units, with a market share of 3.39%, while other companies sold less than 500 units each, with market shares below 1%.Tractor sales increased by 340%, dump trucks by 201%, Sany tops sales According to data from the First Commercial Vehicle Network, in 2024, a total of 48,400 electric heavy-duty trucks were sold in the market, with tractors and dump trucks accounting for 62.26% and 15.81% respectively. Compared to the previous year, the proportion of tractors has increased while the proportion of dump trucks has decreased (in 2023, electric tractors and dump trucks accounted for 43.75% and 16.27% of total sales of electric heavy-duty trucks). As the most important segment of electric heavy-duty trucks, electric tractors saw a significant increase in sales in 2024, reaching a total of 30,100 units, a 340% year-on-year increase. This growth rate far exceeds the overall market growth rate (+209%) and the 195% growth rate of the new energy tractor market, surpassing the 140% growth rate of the new energy heavy-duty truck market as well. In 2024, Sany Heavy Truck ranked first in sales with a total of 7,890 electric tractors sold, capturing a market share of 26.21%. XCMG and FAW ranked second and third with 4,814 and 4,746 units sold respectively, with market shares of 15.99% and 15.76%. The difference in sales between the two companies was very small, with only 68 units separating them. FAW and Yutong, ranking fourth and fifth, both sold more than 2,000 units, reaching 2,372 and 2,354 units respectively, with market shares of 7.88% and 7.82%. Foton, Shaanqi, and Dongfeng ranked sixth to eighth in sales of electric tractors, with sales of 1,841, 1,837, and 1,835 units respectively, and market shares of 6.11%, 6.10%, and 6.09%. The difference between these three companies was very small, all within single digits. Yugong and BeiBen ranked ninth and tenth with 888 and 425 units sold, and market shares of 2.95% and 1.41% respectively. In comparison to electric tractors which outperformed various "big players," electric dump trucks, another important segment of electric heavy-duty trucks, did not perform as well. In 2024, a total of 7,647 electric dump trucks were sold, with a 201% year-on-year increase, lower than the overall market growth rate of 209%. However, this growth rate was higher than that of the new energy dump truck market (+98%) and the new energy heavy-duty truck market overall. In 2024, only 18 companies achieved sales in the electric dump truck market, with only 9 companies selling more than one hundred units. Sany ranked first with sales exceeding 2,000 units, reaching 2,027 units, capturing a market share of 26.51%. FAW, XCMG, and Yutong ranked second to fourth, with sales exceeding 1,000 units each, reaching 1,483, 1,076, and 1,052 units respectively, with market shares of 19.39%, 14.07%, and 13.76%. FAW, Foton, Shaanqi, Dongfeng, and Yugong also sold more than 200 units, ranking fifth to ninth with market shares of 6.42%, 4.16%, 4.00%, 3.37%, and 3.35%. In 2024, both the electric heavy-duty truck and battery-swapping heavy-duty truck markets achieved a "12 consecutive increase." Compared to the former, the electric heavy-duty truck market stands out, with double-digit growth every month, an average monthly growth rate of 213%, and continuously outperforming the new energy heavy-duty truck market for 16 consecutive months. In 2024, the electric heavy-duty truck market delivered a year-end performance with cumulative sales of 48,400 units, a significant 209% increase year-on-year, making it one of the most outstanding submarkets of new energy heavy-duty trucks.

21/01/2025

LSEG: The total global stock financing amount for mainland Chinese companies will reach $59.55 billion in 2024, a 54% decrease year-on-year.

Recently, LSEG released the 2024 "China Capital Market Report and Underwriters & Legal Advisers Ranking". The report shows that Chinese mainland companies raised a total of approximately $59.55 billion in equity and equity-linked transactions in the global capital markets in 2024, a decrease of 54% year-on-year and an increase of 18% quarter-on-quarter. The number of issuances decreased by 50% compared to the same period in 2023, totaling 414 transactions, with a 36% increase in the fourth quarter compared to the third quarter. In 2024, CITIC SEC ranked first in the list of underwriters for Chinese stocks and equity-linked transactions, participating in a total of 70 deals and accounting for 12.2% of the market with a total fundraising amount of $7.28 billion. In terms of the number of transactions, Guo Hao Law Firm ranked first in the list of legal advisers to issuers in Chinese stocks and equity-linked transactions; and in the list of underwriters' legal advisers, Jingtian & Gongcheng Law Firm ranked first. In the bond market, the issuance amount in the RMB bond market increased by 12% compared to the same period in 2023; and decreased by 12% quarter-on-quarter in the fourth quarter of 2024 compared to the third quarter. The total issuance amount in the RMB bond market in 2024 was approximately RMB 25.6 trillion, an increase of 12% year-on-year; with a 12% decrease in the total issuance amount in the fourth quarter compared to the third quarter. The issuance amount of Panda bonds increased by 55% in 2024 compared to the same period in 2023; and decreased by 19% quarter-on-quarter in the fourth quarter of 2024 compared to the third quarter. The total issuance amount in the Panda bond market in 2024 was approximately RMB 153.4 billion, an increase of 55% year-on-year, with a 19% decrease quarter-on-quarter. CITIC led the RMB and China G3 currency bond underwriters; Bank Of China ranked first in the Panda bond and Dim Sum bond underwriters. 01 Chinese stocks and equity-linked Market Overview The total amount of initial public offerings (IPOs) reached $14.42 billion, a decrease of 71% year-on-year and an increase of 125% quarter-on-quarter. The total amount of additional offerings reached $23.46 billion, a decrease of 61% year-on-year and an increase of 11% quarter-on-quarter. The total issuance of convertible bonds and equity-linked shares in China amounted to $21.66 billion, an increase of 5% year-on-year and a decrease of 24% quarter-on-quarter. The industrial sector led other industries with a market share of 24.5%, raising a total amount of $14.59 billion, a 54% decrease compared to last year. Financial Advisers Ranking Legal Advisers Ranking 02 Chinese bonds Market Overview Issuer Legal Advisers: Jingtian & Gongcheng Law Firm leads the RMB bond business ranking, while AllBright Law Offices tops the G3 currency bond business ranking. Underwriter Legal Advisers: AllBright Law Offices leads the RMB bond business ranking and ranks first in the G3 currency bond business ranking. Financial Advisers Ranking Legal Advisers Ranking 03 Chinese Syndicated Loans Financial Advisers Ranking

21/01/2025

Counterpoint Research: Chinese smartphone sales in Q4 decreased by 3.2% year-on-year, the only quarter to see a year-on-year decline in 2024.

According to Counterpoint's monthly report on mobile phone sales, in the fourth quarter of 2024, China's smartphone sales decreased by 3.2% year-on-year, becoming the only quarter in 2024 to experience a year-on-year decline. In the fourth quarter, Huawei ranked first in market share, followed by Xiaomi (01810) and Apple Inc. (AAPL.US). Counterpoint's Deputy Director Ethan Qi commented: "The smartphone market rebounded in the first three quarters of this year, with year-on-year growth in each quarter. However, due to cautious consumer behavior, the growth momentum in the fourth quarter began to slow down." Market share of Chinese smartphone sales, Q4 2023 vs Q4 2024 Regarding the performance of major smartphone manufacturers, Counterpoint's Senior Research Analyst Mengmeng Zhang stated: "In the fourth quarter of 2024, Huawei surged to the top with a market share of 18.1%. This is the first time Huawei has regained market leadership since the U.S. ban. Huawei's sales increased by 15.5% year-on-year, mainly driven by the release of the mid-range Nova 13 series and the high-end Mate 70 series." Xiaomi held steady in second place in the fourth quarter of 2024 with a market share of 17.2%, benefiting from strong performance from the third quarter to the fourth quarter. The flagship Mi 15 series released by Xiaomi in October was a major driver of growth. Xiaomi has made significant progress in the high-end market this year. In addition, the success of Xiaomi's electric vehicles (EV) has further enhanced the brand image and boosted smartphone sales. Facing intense competition in the high-end market from Huawei and other Chinese smartphone brands, Apple Inc. ranked third in the fourth quarter of 2024 with a market share of 17.1%. Looking at the whole year, Chinese smartphone sales increased by 1.5% year-on-year, rebounding from a 1.4% year-on-year decline in 2023. vivo ranked first with a market share of 17.8%, followed closely by Huawei at 16.3%, and Xiaomi in third place with a market share of 15.7%. Market share of Chinese smartphone sales, 2023 vs 2024 Looking ahead to 2025, Counterpoint predicts that the Chinese smartphone market will continue to maintain a low single-digit growth trend. The recently announced nationwide smartphone subsidy program will be implemented from January, expected to become a catalyst for sales growth in the first quarter of 2025. Counterpoint maintains a cautiously optimistic outlook for the Chinese smartphone market in 2025.

21/01/2025

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