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.

Last Night's Performance

Country / Index	Ticker	1-Day Change
China (Hong Kong)	HSI Index	1.5%
Hang Seng Tech	HSTECH Index	1.2%
Hong Kong Turnover	HKTurn Index	11.4%
Hong Kong Short Sale Turnover	HKSST Index	10.5%
Short Turnover as a % of Hong Kong Turnover	N/A	14.8%
Southbound Stock Connect Net Buy/Sell (US $ Millions)	N/A	259.5
China (Shanghai)	SHCOMP Index	0.4%
China (Shenzhen)	SZCOMP Index	0.8%
China (STAR Board)	Star50 Index	0.2%
Mainland Turnover	.chturn Index	7.7%
Nouthbound Stock Connect Net Buy/Sell (US $ Millions)	N/A	Not Available
Jing Daily China Global Luxury Index	CHINALUX Index	0.5%
Japan	NKY Index	0.1%
India	SENSEX Index	-1.1%
Indonesia	JCI Index	-0.7%
Malaysia	FBMKLCI Index	-0.5%
Pakistan	KSE100 Index	-0.5%
Philippines	PCOMP Index	-1.9%
South Korea	KOSPI Index	-0.1%
Taiwan	TWSE Index	0%
Thailand	SET Index	0.2%
Singapore	STI Index	0.2%
Australia	AS51 Index	0.6%
Vietnam	VNINDEX Index	1.5%

Indicator	Hong Kong	Mainland China
Today's Volume % of 1-Year Average	1.11	0.94
Advancing Stocks	327	3340
Declining Stocks	134	1588
Outperforming Factors	Quality, Dividend, Large Caps	Liquidity, Quality, Growth
Underperforming Factors	Growth, Buybacks, Low Volatility	Low Volatility, Value, Dividend Yield
Top Sectors	Tech, Healthcare, Utilities	Discretionary, Healthcare, Communication
Bottom Sectors		Energy, Real Estate
Top Subsectors	Electrical Equipment, Household/Personal Products, Consumer Services
Bottom Subsectors	National Defense
Southbound Connect Buys	Meituan (Large), Akeso (Moderate), SMIC (Small)
Southbound Connect Sells	Tencent, Xiaomi (Small), Alibaba (Very Small)

MSCI China All Shares Index	# of Stocks	Average 1-Day Change (%)
Hong Kong Listed	151	1.18
Communication Services	9	0.58
Consumer Discretionary	28	1.34
Consumer Staples	13	0.55
Energy	7	1.38
Financials	23	0.93
Health Care	13	2.18
Industrials	20	0.14
Information Technology	10	3.47
Materials	10	0.76
Real Estate	6	0.3
Utilities	12	1.76
Mainland China Listed	404	0.46
Communication Services	6	0.99
Consumer Discretionary	31	1.54
Consumer Staples	24	0.33
Energy	13	-0.37
Financials	64	0.17
Health Care	31	1.45
Industrials	64	0.41
Information Technology	91	0.35
Materials	58	0.21
Real Estate	6	-0.23
Utilities	16	0.89

US & Hong Kong Dually Listed	Ticker	1-Day Change (%)
Tencent HK	700 HK Equity	0.6
Alibaba HK	9988 HK Equity	2.1
JD.com HK	9618 HK Equity	2.4
NetEase HK	9999 HK Equity	1.5
Yum China HK	9987 HK Equity	0.3
Baozun HK	9991 HK Equity	3.8
Baidu HK	9888 HK Equity	1.6
Autohome HK	2518 HK Equity	-0.5
Bilibili HK	9626 HK Equity	-2
Trip.com HK	9961 HK Equity	-2.2
EDU HK	9901 HK Equity	-0.5
Xpeng HK	9868 HK Equity	-0.1
Weibo HK	9898 HK Equity	-0.3
Li Auto HK	2015 HK Equity	1.3
Nio Auto HK	9866 HK Equity	-1.3
Zhihu HK	2390 HK Equity	2.3
KE HK	2423 HK Equity	-1.7
Tencent Music Entertainment HK	1698 HK Equity	1.7
Meituan HK	3690 HK Equity	1.5

Hong Kong's Most Heavily Traded by Value	1-Day Change (%)
XIAOMI CORP-CLASS B	4.7
TENCENT HOLDINGS LTD	0.6
ALIBABA GROUP HOLDING LTD	2.1
MEITUAN-CLASS B	1.5
3SBIO INC	32.3
BYD CO LTD-H	2.5
AKESO INC	-1.4
HSBC HOLDINGS PLC	1.4
AIA GROUP LTD	1.9
CHINA CONSTRUCTION BANK-H	1.2

Shanghai and Shenzhen's Most Heavily Traded by Value	1-Day Change (%)
CONTEMPORARY AMPEREX TECHN-A	1.2
BYD CO LTD -A	3.1
AVIC CHENGDU AIRCRAFT CO L-A	-7.9
OFILM GROUP CO LTD-A	10
SICHUAN CHENGFEI INTEGRAT -A	7.6
EAST MONEY INFORMATION CO-A	0.1
GUANGZHOU HAIGE COMMUNICAT-A	1
VICTORY GIANT TECHNOLOGY -A	5.2
JIANGSU HENGRUI PHARMACEUT-A	1.9
TALKWEB INFORMATION SYSTEM-A	-0.9

Last Night's Exchange Rates, Prices, & Yields

• CNY per USD 7.21 versus 7.21 yesterday
• CNY per EUR 8.12 versus 8.12 yesterday
• Yield on 10-Year Government Bond 1.70% versus 1.69% yesterday
• Yield on 10-Year China Development Bank Bond 1.70% versus 1.69% yesterday
• Copper Price +0.15%
• Steel Price -0.42%