GMT EIGHT - Company

Tesla, Inc. (TSLA.US) is recalling over 370,000 vehicles in the United States due to a steering system malfunction.

Records released on the website of the National Highway Traffic Safety Administration (NHTSA) show that Tesla, Inc. (TSLA.US) is voluntarily recalling 376,241 vehicles in the United States to address an issue that could result in the power steering system failing. According to the safety recall report on the NHTSA website, the recall involves Model 3 and Model Y vehicles produced and sold in the US market between February 28, 2023, and October 11, 2023, equipped with a specific version of old software. The documents show that the printed circuit board in the steering system of the affected vehicles may be damaged due to overload, causing the power steering assist to fail when Tesla, Inc. vehicles accelerate from a standstill. Once the electronic power steering assist system fails, drivers will need to exert more force to control the steering wheel, increasing the risk of a collision. Tesla, Inc. has stated to regulators that they have not received any reports of collisions or injuries related to this issue. To address the problem, Tesla, Inc. will perform repairs through OTA (Over-the-Air) remote software updates, without the need for owners to visit service centers. It is worth noting that President Trump appointed Tesla, Inc. CEO Musk to lead a team that aims to reduce federal government staffing and regulatory agencies, with some cases even dismantling entire regulatory agencies. These cutbacks have affected NHTSA, an agency that Musk has long seen as a barrier to some of Tesla, Inc.'s technological advancements. Currently, NHTSA is still conducting ongoing safety investigations into Tesla, Inc.'s Autopilot assisted driving system and FSD. According to reports from foreign media, Musk's team has implemented significant layoffs at NHTSA, reducing the agency's workforce by around 10%, impacting its ability to investigate companies including Tesla, Inc. At the close of trading on Friday, Tesla, Inc. (TSLA.US) fell by 4.68%, to $337.8.

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The9 Ltd. Sponsored ADR(NCTY.US) has established a joint venture with Green Orange Network Technology to operate and distribute mobile games in China.

The9 Ltd. Sponsored ADR (NCTY.US) announced on Friday that its wholly-owned subsidiary, Shanghai The9 Ltd. Sponsored ADR Information Technology Co., Ltd., has entered into a joint venture agreement with Chengdu Qing Cheng Network Science and Technology Company, a mobile game operation and distribution company focused on servicing Chinese market gamers. The9 Ltd. Sponsored ADR will hold a 51% stake in the joint venture company, while Qing Cheng Network Science and Technology will hold a 49% stake. The joint venture company will become the flagship subsidiary of The9 Ltd. Sponsored ADR for operating and distributing mobile games in the Chinese market. Qing Cheng Network Science and Technology has committed to leveraging its unique distribution channel advantages in the lower-tier market to operate various mobile games for the joint venture company. Qing Cheng Network Science and Technology has committed that by 2025, the joint venture company's annual profit will exceed 80 million RMB (approximately 11 million USD), with profits growing by at least 50% annually in 2026 and 2027. The9 Ltd. Sponsored ADR has granted Qing Cheng Network Science and Technology 110.2 million restricted shares (equivalent to 367,442 American depositary shares). These restricted shares will be unlocked in stages based on the performance of the joint venture company.

21/02/2025

GlaxoSmithKline plc Sponsored ADR (GSK.US) has applied for approval to market a new drug for chronic obstructive pulmonary disease (COPD) in China.

On February 21st, GlaxoSmithKline plc Sponsored ADR (GSK.US) announced that the new drug application for IL-5 monoclonal antibody Nucala for the additional maintenance treatment of chronic obstructive pulmonary disease (COPD) patients with eosinophilic phenotype has been accepted by the National Medical Products Administration. If approved, Nucala will become the first biologic approved for monthly dosing in COPD patients. This application is based on the positive results of the Phase III MATINEE study. The study enrolled a broad range of COPD patients, including those with chronic bronchitis, emphysema, or a combination of both. The results showed that the rate of moderate or severe COPD exacerbations was significantly reduced in the Nucala group compared to the placebo group, with clinical significance. Currently, COPD is mainly treated symptomatically with options such as corticosteroids and bronchodilators, but this does not address the root cause. Dupilumab is currently the only biologic targeted therapy approved for treating COPD, with a dosing frequency of once every two weeks.

21/02/2025

Astrazeneca PLC Sponsored ADR (AZN.US) PD-L1+CTLA-4 combination applied for market approval in China for first-line treatment of NSCLC.

On February 21st, the CDE website showed that Astrazeneca PLC Sponsored ADR (AZN.US) has applied for a new indication for its PD-L1 monoclonal antibody durvalumab in China. According to the 2024 financial report of Astrazeneca PLC Sponsored ADR, the indication for this application is for first-line treatment of metastatic non-small cell lung cancer (NSCLC) in adult patients with no sensitizing epidermal growth factor receptor (EGFR) mutations or anaplastic lymphoma kinase (ALK) gene alterations in combination with pembrolizumab and standard therapy. This marketing application is based on the positive results of the Phase III POSEIDON study. The study evaluated the efficacy and safety of durvalumab (1500mg) + pembrolizumab (75mg) standard therapy (platinum-based chemotherapy) compared to standard therapy in 1013 patients with EGFR/ALK wild-type metastatic NSCLC.

21/02/2025

Preview of new US stocks | Hong Kong beauty product retailer Pitanium: net profit decreased by 13% year-on-year, industry recovery does not equal to strong performance.

Looking at the development overview of the beauty and personal care retail industry in Hong Kong in recent years, the two key words of "fluctuation" and "recovery" can be said to have been running through it all along. Affected by the epidemic, the sales of beauty and personal care products in the Hong Kong market experienced a decline in 2020 and 2021, but began to gradually recover after 2022. According to data from the Hong Kong Census and Statistics Department, the retail sales of cosmetics and personal care products in 2023 increased by about 15% compared to the previous year, indicating a return of consumer confidence. However, the recovery of consumer confidence may not necessarily mean that related companies will also see a "rebound" in performance. On February 14th, a beauty and consumer goods retailer in Hong Kong, Pitanium, submitted an initial public offering (IPO) application to the U.S. Securities and Exchange Commission. The company plans to issue 1.8 million shares of stock at a price of $4 to $5 per share, raising $8 million. Based on the midpoint of the proposed price range, Pitanium's market value will reach $102 million. Established in 2013, the company mainly sells skincare, personal care, and hair care products under the brands PITANIUM and BIG PI, primarily through six retail stores in Hong Kong and online sales. However, behind Pitanium's move to enter the secondary market, it also reveals the hidden pain of the company's operational performance. Net profit decline, significant liquidity pressure According to reports, the PITANIUM brand under Pitanium was mainly launched in 2019, initially providing high-end skincare and hair care solutions for Hong Kong spas. The brand "BIG PI" was mainly launched in 2023, providing a full range of products to retail customers using different product formulas. The company's skincare revenue mainly includes facial care products such as essence, facial cleansers, masks, and toners; hair care revenue mainly includes shampoos, conditioners, hair care, and hair masks; cosmetics revenue mainly includes sales of base makeup, compact powders, eyeliners, mascara, and lipsticks; revenue from other products mainly includes sales of body care products such as deodorants, makeup removers, and exfoliating oils, as well as sales of health supplements, laundry detergent, and dishwashing liquid. According to the prospectus data, as of the end of September 30, 2023 and the fiscal year ended September 30, 2024, the company's revenues were HK$69.196 million and HK$74.9304 million, respectively, a year-on-year increase of 9.87%. On the contrary, the company's net profit was in a declining state, with profits of HK$10.254 million and HK$8.8963 million, respectively, a year-on-year decrease of 13.25%. During the reporting period, Pitanium significantly increased the company's marketing and promotion expenses to increase consumer awareness of its brands and generate more sales. In the fiscal year ended September 30, 2024, the company's total sales and marketing promotion expenses amounted to HK$11.7978 million, an increase of 13.31% year-on-year, which may also be a major reason for squeezing the company's profit capacity. It is worth noting that the pressure of declining profitability has evidently transmitted to the company's liquidity. According to the prospectus disclosure, as of September 30, 2024, Pitanium had HK$16.945 million in cash, a decrease of 10.59% from the same period in 2023. During the period, the company's total current assets were HK$25.7311 million, while total current liabilities were HK$22.2678 million, indicating significant short-term liquidity pressure. Based on the above, it can be seen that even though consumer confidence in the beauty and personal care retail market in Hong Kong is recovering, the performance of Pitanium, with declining net profit and tight liquidity, clearly reveals the company's poor performance. Industry gradually recovering, internal operational weaknesses to be resolved The retail industry has always been a key industry in Hong Kong, contributing more than 3% of the overall GDP in the past five years. In 2023, the online retail sales of beauty and personal care products reached HK$2.7169 billion, with a compound annual growth rate of 13.6% from 2018 to 2023. This can be attributed to the emergence of direct-to-consumer and market platform sales of related products in the early 2010s, and the market is expected to reach HK$3.4198 billion by 2028, with a compound annual growth rate of 8.9% from 2024 to 2028. The offline retail sales of beauty and personal care products in Hong Kong decreased from HK$33.321 billion in 2018 to HK$19.4206 billion in 2023, with a compound annual growth rate of -10.2%. The decline in 2019 and 2020 was attributed to a decrease in the number of tourists and the closure of offline retail stores due to the outbreak of the epidemic. With the reopening of borders and the recovery of the tourism industry, the offline retail sales of beauty and personal care products in Hong Kong increased from HK$13.0592 billion in 2022 to HK$194.206 billion in 2023. Consistent with the overall retail market, the future outlook for offline retail sales of beauty and personal care products in Hong Kong remains optimistic, with an expected market size of HK$26.57 billion by 2028 and a compound annual growth rate of 6.0% from 2024 to 2028. Furthermore, the beauty and personal care products market in Hong Kong also reflects two major trends: consumers are increasingly inclined towards high-end, functionally segmented (such as anti-allergy, natural ingredients), and convenient products (such as travel sizes, online shopping). Secondly, KOL marketing and social media (Instagram, Xiaohongshu) are becoming increasingly influential in purchasing decisions. In addition, the beauty and personal care products market in Hong Kong is highly fragmented. In 2023, there were about 5000 brands, which can be categorized into two main types based on their operational coverage: large multinational companies and local small and medium-sized brands. In 2024, Pitanium, along with two other major leading companies in the Hong Kong beauty and personal care product industry, together accounted for only 0.04% of the total retail value of beauty and personal care products in Hong Kong. Given the above, it is easy to see that, under the dual effect of external factors and internal weaknesses, Pitanium's performance not only cannot follow the industry's "recovery," but also seems not incidental. Specifically, there are certain internal operational weaknesses within Pitanium at present: on one hand, the company.The product structure is aging, while local consumers are increasingly paying attention to health, sustainability (such as Clean Beauty), and personalized products. If Pitanium fails to timely launch segmented categories that fit these trends, such as Clean Beauty and men's skincare, it may lose favor with young consumers. On the other hand, the company's channel strategy is also stagnant, with high rental costs and poor sales efficiency for offline stores, and a lag in online transformation (such as lack of live e-commerce layout and user experience inferior to DTC brands).It is worth mentioning that, although the decline in Pitanium's profits is a result of external shocks and internal shortcomings, its core competitiveness still has the potential to be reshaped. The key is believed to lie in its ability to clearly differentiate its positioning, avoid generic competition; accelerate digitalization and omnichannel integration, reduce operational costs; bind local culture and sustainable trends, and build emotional identification. Furthermore, if it can form a closed loop in product innovation, experiential scenarios, and membership operations, it may regain market initiative. Pitanium has clearly realized the above growth points - in its prospectus, it disclosed the company's future growth strategy, planning to develop its business by upgrading its existing business in Hong Kong and expanding its business to markets beyond Hong Kong through the following business strategies; planning to enhance customer experience by launching a mobile application; developing a new product line specifically for home therapy; expanding its product portfolio and exploring new suppliers. Additionally, the company also plans to further strengthen its marketing strategy. Overall, under the dual effects of external factors and internal shortcomings, Pitanium's intention to list on the secondary market is clear. Whether the company can turn the unfavorable situation around through its own growth strategy and it remains to be seen and verified over time.

21/02/2025

Faraday Future Intelligent Electric, Inc. (FFIE.US) shares rise in pre-market trading, with the first two FX 6 prototype cars to be transported to the US headquarters.

Faraday Future Intelligent Electric, Inc. (FFIE.US) announced on Friday that its subsidiary, FF China, has sent two disguised prototype test cars of the FX 6 to customs, ready to be shipped to the US headquarters. Faraday Future Intelligent Electric, Inc. stated that the FX 6 is part of a broader FX product strategy aimed at providing advanced intelligent electric vehicles to the mass market. The FX brand is targeted at the mass market and plans to launch three models: the AI-MPV model FX Super One, FX 5 (with a target price range of $20,000 to $30,000), and FX 6 (with a target price range of $30,000 to $50,000). Faraday Future Intelligent Electric, Inc. will announce the latest developments in the FX 6 series and FX strategy in March. As of the time of publication, Faraday Future Intelligent Electric, Inc. rose 3.01% in pre-market trading, reaching $1.71.

21/02/2025

UnitedHealth Group Incorporated (UNH.US) fell sharply in pre-market trading, with reports that the US Department of Justice is investigating its medical insurance billing practices.

According to foreign media reports on Friday, the U.S. Department of Justice has launched an investigation into the medical insurance billing practices of UnitedHealth Group Incorporated (UNH.US) in recent months. In response to this news, the company's stock price fell significantly by 11% in pre-market trading, dropping to $444.32 per share. The report also pointed out that this new civil fraud investigation focuses on the way in which UnitedHealth Group Incorporated records diagnosis results, which can trigger additional payments under its Medicare Advantage plan. The investigation includes the physician groups under this insurance giant. Media outlets have reached out to the U.S. Department of Justice and UnitedHealth Group Incorporated for comment on this matter, but both parties have not immediately responded.

21/02/2025

Rivian (RIVN.US) recalls 17,260 vehicles in the US due to headlight issues.

The US National Highway Traffic Safety Administration said on Friday that Rivian Automotive (RIVN.US) is recalling 17,260 vehicles in the United States due to a headlight issue that could reduce visibility. After the news came out, the company's stock price dropped over 6% in pre-market trading at one point, and as of the time of writing, the stock was down 3.45% at $13.14. The National Highway Traffic Safety Administration said in a statement, "The recall includes certain 2025 models of the R1T and R1S, which may have headlights that do not meet current production standards due to an incorrect component configuration provided by a supplier." The statement noted that the issue may only occur when starting the vehicle in low temperatures, at which point a message will appear on the driver display screen saying, "Low beam not working, service low beam soon," reminding the driver that the lights are not on. According to regulatory reports, Rivian will replace the headlight control module free of charge to address this issue. In addition, Rivian Automotive unexpectedly lowered its electric vehicle delivery estimates for the year on Thursday, with expected deliveries ranging from 46,000 to 51,000 vehicles. However, the company anticipates moderate gross profit as it has significantly reduced raw material and supply chain costs in the process of improving efficiency. The company also anticipates that President Donald Trump's plans to impose tariffs on Mexico and Canada will lead to increased costs. CEO RJ Scaringe said, "Our supply chain has a footprint in Mexico and Canada, so imposing high tariffs will only bring us higher costs," "The uncertainty is so high that it will ultimately affect consumer behavior and revenue."

21/02/2025

Qianhe Technology (QHT.US) plans to go public in the US. The China Securities Regulatory Commission requires additional clarification on the establishment of the equity structure and the compliance of the reverse merger.

On February 21st, the China Securities Regulatory Commission (CSRC) announced the "Supplementary Materials Requirements for Overseas Issuance and Listing (February 14th, 2025 - February 20th, 2025)," with the CSRC International Department issuing supplementary material requirements for 6 companies. Among them, QHT Technology was required to provide supplementary explanations on the legality of its equity structure construction and reverse mergers, as well as the specific plan for this issuance and listing. It is reported that QHT Technology (QHT.US) is preparing to list on the NASDAQ in the United States, with plans to issue 1.3 million shares at a price range of $5 to $6 per share, raising $7 million. At the midpoint of the proposed range, the international market value of QHT Technology will reach $95 million. Please provide supplementary explanations on the following matters, have them reviewed by lawyers, and provide clear legal opinions: 1. Regarding the legality of the equity structure construction and reverse mergers. (1) Please provide conclusive opinions on the legality and compliance of offshore structure construction and reverse investment involving foreign investment regulatory procedures, and explain whether the reporting obligations stipulated in the "Administrative Measures for Foreign Investment Information Reporting" have been fulfilled. (2) Please explain the pricing basis and fairness of the equity transfer price in the process of acquiring domestic operating entity shares, the payment situation, tax payment situation, and whether it complies with the provisions of "Foreign Investors Acquiring Domestic Enterprises." 2. Regarding the issuance plan. Please explain the specific plan for this issuance and listing, including the number of shares to be issued under the condition of not exercising or exercising the over-allotment option, the percentage of total equity capital after issuance, a list of changes in equity structure before and after issuance, the expected amount of funds raised, the specific uses of the funds raised, and the corresponding proportions. It is reported that QHT Technology was founded in 2002 and is headquartered in Wuhu, Anhui province. The company operates its domestic subsidiary Wuhu QHT Technology Co., Ltd., producing and selling components and parts for passenger cars, trucks, and train carriages in China. One of the company's most successful products to date is the liquefied natural gas cylinders for trucks, which are lightweight, easy to install and unload, and cost-effective. In 2019 alone, QHT produced over 28,000 liquefied natural gas cylinder frames. According to an F&S report, as of 2023, the company is the largest supplier in the Chinese liquefied natural gas cylinder frame market, holding a 22.7% market share.

21/02/2025

Weimi Holdings (MJID.US) plans to list on the US stock market. The China Securities Regulatory Commission has requested additional information on the fulfillment of the commitments made during the previous filing.

On February 21st, the China Securities Regulatory Commission (CSRC) publicized the "Supplementary Material Requirements for Overseas Issuance and Listing Registration (February 14, 2025February 20, 2025)", and the CSRC International Department issued supplementary material requirements for 6 enterprises. Among them, MAJESTIC IDEAL HOLDINGS LTD (hereinafter referred to as "Majestic Ideal Holdings") was required to provide information on the fulfillment of commitments made during the previous filing. The company plans to list on NASDAQ with the stock code "MJID". The CSRC requested the company to provide supplementary explanations on the following matters and requested lawyers to verify and provide clear legal opinions: 1. The situation and reasons for not completing the overseas issuance and listing within 12 months of the previous filing notice. 2. The fulfillment of commitments made during the previous filing. Information shows that Majestic Ideal Holdings provides supply chain management services for the Chinese clothing industry, with a focus on yarn products and ready-to-wear apparel. The company offers a full range of services in the clothing supply chain, including market trend analysis, product design and development, raw material procurement, etc., with clients including brand owners, textile manufacturers, clothing procurement agents, online fashion and clothing retailers.

21/02/2025

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