Top News
Nvidia posts strong profit despite no sales to China, data center revenue misses estimates
Nvidia, the world's most valuable company, said second-quarter net income rose 59 percent from a year earlier to US$26.4 billion on a 56 percent increase in revenue to US$46.7 billion. The US company, caught in the crossfire of a US-China trade war, said it sold no advanced chips to China in the quarter, causing write-downs of US$4.5 billion. Revenue from its data center business, which sells advanced chips used in AI technologies and accounts for 88 percent of total sales, soared 56 percent to US$41.1 billion, but missed estimates. Nvidia shares fell slightly in after-hours trading in New York as investors parsed the results to get some perspective on the outlook for continued strong growth in the AI industry.
Nvidia said it expects third-quarter revenue of US$54 billion, give or take 2 percent, with no sales to China factored into the outlook. The US has resumed export licenses for Nvidia's H20 chips for China in exchange for a 15 percent cut of sales. The return of the chips has met lukewarm response in China, which Nvidia Chief Executive Jensen Huang said is a "US$50 billion market of opportunity for us if we address it with competitive products." He concluded a call with analysts by saying, "The opportunity ahead is immense. A new industrial revolution has started. The AI race is on!"
Trump holds White House meeting to discuss post-war Gaza
President Donald Trump chaired a White House meeting with administration officials, Israeli representatives and interested parties that included former UK Prime Minister Tony Blair and Trump son-in-law Jared Kushner, to discuss a "comprehensive" post-war plan for Gaza, even as the war there continues unabated. The meeting comes amid global outrage over back-to-back Israeli strikes on a hospital in southern Gaza that killed 22, including journalists, emergency responders and others. Israel is engaged in a new offensive aimed at occupying the whole coastal enclave. No details of the White House meeting were immediately available, but Trump said earlier this year he could envision the Gaza of the future as a Mideast Riviera.
Denmark concerned by report of US covert operation in Greenland
At least three individuals connected to US President Donald Trump have been on the ground in Greenland in a covert operation to try to sway public opinion to support secession of the semi-autonomous Danish territory. Trump said earlier this year that the US should take over the island, which is rich in mineral resources and is strategically located in the Arctic region. Copenhagen summoned the US envoy to Denmark for talks after the report broke. "Any attempt to interfere in the internal affairs of the kingdom will be unacceptable," said Danish Foreign Minister Løkke Rasmussen.
Top Business
Meituan reports 89 percent profit plunge on fast-food delivery price war
Meituan, China's biggest food-delivery service, reported an 89 percent plunge in second-quarter adjusted net profit to 1.5 billion yuan (US$208 million) amid fierce competition with Alibaba and JD.com in the new fast-food delivery market. Revenue jumped 12 percent to 91.8 billion yuan, but operating margin declined 19 percentage points to 5.7 percent. The results missed market forecasts. The Beijing-based company, which also has business interests in travel bookings, restaurant reviews, bike and power-bank sharing, drones and self-driving delivery vehicles, said hot competition in fast-food delivery makes it impossible to forecast earnings for the rest of the year.
Hong Kong-listed Meituan, which launched its 30-minute food delivery service in April, has splashed out huge sums of money on customer discounts, merchant subsidies and enhancements for deliverymen to try to hold on to its estimated 70 percent of the delivery market. It said "irrational competition" that started in the second quarter resulted in a 1.9 billion operating loss in its "new initiatives segment."
Satellite boost planned
China's Ministry of Industry and Information Technology issued guidance to boost the country's satellite communications sector, targeting widespread adoption by 2030. The plan aims to improve regulatory frameworks, expand infrastructure, foster innovation and integrate satellite connectivity into everyday applications, including direct-to-phone services. The ministry expects the number of satellite communication users to exceed 10 million within the next decade. Analysts say this could spur growth for telecom operators, device makers and space-tech companies while positioning China as a leader in commercial satellite applications in Asia and beyond.
Smaller Chinese companies show growth in cross-border payments
An index of purchasing managers in business e-commerce exports showed that cross-border payments related to small and medium-sized businesses in July stood at 52, indicating expansion. The index is compiled by payments platform XTransfer. Its Chief Executive Bill Deng said foreign trade in that segment is now exploring business opportunities outside of European and US markets. Shanghai-based XTransfer's global client base surpassed 700,000.
Economy & Markets
China industrial profits pare declines, high tech the best performer
High-technology companies were star performers in the July report on China's industrial profits. Though overall profits in the month slipped 1.5 percent from a year earlier after several months of steeper declines, overall high tech profits surged 19 percent, the National Bureau of Statistics reported. Profits in the semiconductor industry soared 176 percent in the month, and the aerospace and aviation sector rose 41 percent. In the first seven months of the year, profits at major industries fell 1.7 percent, with state companies declining 7.5 percent and businesses with foreign investment rising 1.8 percent. Profit in mining companies decreased 32 percent.
Chinese used-car market suffers from low profit margins
A price war in China's new vehicle market has spilled over into used car sales. Yicai reported that dealers are experiencing lower sales values. One dealer gave the example of a BYD electric car model that sold for about 340,000 yuan (US$47,540) two years ago and is now in the used-car market at an asking price of 150,000 yuan. Almost 90 percent of businesses listed in China's Top 100 Used Car Dealers this year had gross profit margins of less than 6 percent per vehicle, according to the China Automobile Dealers Association.
Summer torrents leave China's roads in disrepair
Extreme summer rains and flooding in China caused 16 billion yuan (US$2 billion) in road damage, the Ministry of Transport said. A ministry spokesperson said the damage occurred in about two-thirds of the nation's administrative jurisdictions. The central government to date has allocated 540 million yuan in emergency road repair subsidies to local authorities.
Global sea freight rates show regional disparities
European and US shipping routes since June have experienced declining sea freight rates amid weak demand, but Middle East and Australian routes showed gains. US sea routes are suffering from the effects of import tariffs, while demand in the EU is on a slow recovery. The Shanghai Containerized Freight Index tumbled 3.1 percent on August. 22 from the week earlier, Yicai reported, citing the Shanghai Shipping Exchange.
Corporate
Fosun Pharma posts 39 percent rise in half-year profit
Shanghai-based drugmaker Fosun Pharma reported first-half net profit rose 39 percent from a year earlier to 1.7 billion yuan (US$238 million), though revenue fell 5 percent to 19.5 billion yuan. Earnings from innovative drugs exceeded 4 billion yuan. Research and development investment in the six months totaled 2.6 billion yuan, with a focus on therapeutics that include solid tumors and immune-inflammatory disorders. The Shanghai-listed company said it is expanding its pipeline into chronic cardiovascular and kidney diseases, and has granted overseas rights to a drug in development to UK biotech company Sitala Bio for a total consideration of up to US$675 million.
Gold miner Zijin hits record profit
China's Zijin Mining, a major producer of gold, copper and zinc, posted record first-half net profit of 23.3 billion yuan (US$3.3 billion), up 54 percent from a year earlier and surpassing 2023 full-year profit of 21 billion yuan. Revenue rose 11.5 percent to 167.7 billion yuan, driven by higher metals prices. Gold surged globally on geopolitical tensions. Despite the strong performance, Zijin warned that intensifying global competition for critical minerals and rising nationalism enveloping natural resources could challenge overseas projects. The company also flagged potential headwinds from rising costs, trade disruptions and regional regulatory disparities.
Earnings show tentative recovery in China's property slump
Developer China Resources Land reported half-year profit rose 16 percent from a year earlier to 12 billion yuan (US$1.7 billion) on a 20 percent gain in revenue to 95 billion yuan. Developer Sino Land said net profit in the first six months fell slightly to HK$4 billion (US$514 million) on a one-time loss of HK$1 billion from a re-evaluation of its investment properties. Revenue rose 22 percent to HK$11 billion. Sunac, one of China's largest private developers, reported its half-year loss narrowed to 12.8 billion yuan. China's property market has been in a slump for four years after developer debt defaults.
'Ne Zha 2' film producer Enlight posts 372 percent surge in profit
China's Enlight Media, producer of the hit animation movie "Ne Zha 2," said first-half net profit surged 372 percent to 2.2 billion (US$308 million) from a year earlier, equal to its combined earnings in the past seven years, Yicai reported. Operating revenue soared 143 percent to 3.2 billion yuan. The film, based on Chinese mythology and now available in an English-language version, has broken box office records this year, with global receipts to date exceeding 16 billion yuan. Enlight didn't disclose its cut of revenues.
JD Property said to form a Singapore real estate investment trust
JD Property, the investment arm of Chinese e-commerce giant JD.com, and two partners plan to launched a real estate investment trust to list on the Singapore exchange, with assets as high as US$1 billion dollars, Reuters reported. The partners are Swiss-based Partners Group and Singapore-based EZA Hill Property. So-called REITs are companies that own, operate or finances income-producing real estate and give investors access to dividend-based income. The JD-led group purchased four logistics-related properties in Southeast Asia for US$239 million this month and owns industrial property acquired from Singapore-based diversified real estate firm CapitaLand.
Data intelligence firm Baiwang turns to profit on AI
Hong Kong-listed Baiwang, a Chinese company that provides data intelligence services to clients covering finance, manufacturing, energy and logistics, turned to a first-half profit of 3.6 million yuan (US$503 million) from a year-earlier loss on growth in artificial intelligence technologies and ongoing global expansion. Revenue totaled 347.6 million yuan. A key driver of the turnaround was the AI sector, which generated 60.9 million yuan, or 17.5 percent of the total revenue for the period.
Honor releases new foldable phone model
Honor, a Chinese smartphone maker seeking an initial public offering, released a new foldable phone model called Magic V Flip 2, with a starting price of 5,499 yuan (US$760). The device, designed in collaboration with fashion guru Jimmy Choo, features a focus on photography with a 200-mega-pixel camera and enhanced artificial intelligence capabilities. Rival Huawei will release its new foldable model next month in what is a growing segment of the phone market.
Giant profit increase on hit new game
Shenzhen-listed game firm Giant Network said half-year net profit rose 8.3 percent to 777 million yuan (US$108 million), after the January debut of its popular game "Supernatural Action Team." Revenue grew 16 percent to 1.7 billion yuan from a year earlier. In July, "Supernatural Action Team" hit a major milestone, exceeding 1 million concurrent players, and has consistently ranked in the Top 5 on Apple's iOS free game charts.