8/4/2021 Financial News: Ant Group’s Performance During the Rectification Period Declined; Manufacturing Industry Suffers From “Out of Stock + Price Increase”

Image source
  1. Caixin China’s Service Industry PMI Rebounded to 54.9 in July

The July Caixin China General Service Industry Operating Activity Index (Service Industry PMI) announced on August 4 recorded 54.9, a sharp increase of 4.6 percentage points from the 14-month low in June, indicating that the summer vacation and the end of the Pearl River Delta epidemic The service industry rebounded rapidly. The investigation time is between the two epidemics in Guangdong and Jiangsu. The recent rebound of the epidemic in many places has a negative impact on the PMI of the service industry in August. The previously announced July Caixin China Manufacturing PMI fell by 1 percentage point to 50.3, the lowest since May 2020. Experts said: The epidemic in some areas at the end of July is expected to have a negative impact on PMI in August. At present, the foundation for the recovery of the national economy is not stable, the downward pressure on the economy is still great, and the confidence of entrepreneurs also needs to be protected.

2.July Auto Industry Sales Are Estimated to Be 1.82 Million Units, Down 13.8% Year-on-Year

According to the statistics of the China Association of Automobile Manufacturers, the sales of key enterprises in the past ten days are estimated to be 1.82 million in July 2021, a decrease of 9.7% from the previous month and 13.8% from the same period last year. A decrease of 11.2%, and commercial vehicle sales decreased by 27.1% year-on-year. From January to July, the cumulative sales of the automobile industry are estimated to be 14.71 million, a year-on-year increase of 19%; in terms of major categories, passenger vehicle sales increased by 20.5% year-on-year, and commercial vehicle sales increased by 13.3% year-on-year.

3. Changes in Market Prices of Important Means of Production in the Circulation Field in Late July 2021

Disclosure By the National Bureau of Statistics, according to the monitoring of the market prices of 50 important means of production in 9 categories in the national circulation field, in late July 2021, compared with mid-July, the prices of 31 products increased, 18 decreased, and 1 remained the same. Among them, the price of live pigs (external three yuan) was 15.5 yuan/kg, down 0.6% month-on-month.

4. Ant Group’s Performance During the Rectification Period Declined

During the rectification period, Ant Financial’s first-quarter earnings data surfaced. On August 3, Alibaba released its financial report for the first quarter of fiscal year 2022 as of June 30, 2021. The data showed that Alibaba’s first-quarter revenue was 205.74 billion yuan, a year-on-year increase of 34%. Not in accordance with US GAAP, net profit was RMB 43.441 billion, a year-on-year increase of 10%.

From Ali’s financial report, we can see the performance of Ant Group in the first quarter. According to data, from January to March 2021, Alibaba Group’s investment income from Ant Group was 4.494 billion yuan, a decrease of 37% from the 7.182 billion yuan in the fourth quarter of 2020, due to Alibaba’s 33% stake in Ant Group. Based on this calculation, the net profit of Ant Group in the first quarter of 2021 will be approximately 13.618 billion yuan, a decrease of 37% from the fourth quarter of 2020.

5. Manufacturing Industry Suffers From “Out of Stock + Price Increase”

Price increase is a high-frequency vocabulary that appears in the manufacturing industry this year. As the country began to regulate, the prices of some raw materials showed signs of falling, but the shortage of chips and the high price of electronic components caused by hoarding and roasting stocks are becoming the biggest problems that plague enterprises. Recently, a reporter from the Securities Times interviewed a number of manufacturing companies in the Pearl River Delta, and felt the pain points of the industry on the spot.

“I have been purchasing for more than ten years, and it has never been so difficult as this year.” Xie Ling (pseudonym), the purchasing manager of a medium-sized electronics factory in Shajing, Shenzhen, complained to reporters. “Do you know what our biggest problem is now? It’s that there is no way to order electronic components in accordance with the normal process. You can only buy them with a substantial increase.” said Mr. Li, the person in charge of an automation equipment manufacturer in Futian, Shenzhen.

6. The Number of Instant Refund Applications at 8 O’clock Today Exceeds That of the 2021 Spring Festival

Recently, as clusters of epidemics have occurred in many places in China, the railway department and the Civil Aviation Administration have successively issued refund and reform policies, and the number of refund applications on the online travel platform has also reached a peak. Qunar data from the online travel platform shows that at around 8 o’clock on August 4, the platform’s instant refund application volume has reached more than 10 times the usual amount, exceeding the Spring Festival travel season in 2021.

On August 3, the China National Railway Group announced that passengers will not be charged any refund fees when they process valid ticket refunds for all trains purchased before 24:00 on August 3, 2021 through various channels such as the station and the 12306 website. The Civil Aviation Administration announced that passengers who have purchased domestic air tickets with flight dates between August 4 and August 31 before 0:00 on August 4, 2021, can refund their tickets free of charge from 0:00 on August 4 to before flight departure. The company and its aviation sales agents shall not charge fees. Qunar data shows that as of 11:00 on August 4, nearly 30 airlines including Air China, China Eastern Airlines, China Southern Airlines, and China Hainan Airlines have issued relevant refund policies.

7. The Flight Test of the Hyperbola-1 Rocket Failed to Achieve the Expected Goal, and The Relevant Details Are Announced

Beijing Interstellar Glory Space Technology Co., Ltd. released the “Explanation on the Flight Test Mission of the Hyperbolic One Yaowu Carrier Rocket” on its official Weibo on August 4th:

At 15:39:30 on August 3, 2021, the Hyperbolic No. 1 Yaowu carrier rocket ignited and lifted off at the Jiuquan Satellite Launch Center of my country. After analysis and interpretation of telemetry data, the rocket’s first, second, third, and fourth-level solid engines, The liquid attitude and orbit control power, navigation guidance and control work normally, the attitude is stable throughout, the separation between all levels and the separation of stars and arrows are normal, and the flight sequence is basically the same as the theoretical sequence. Because the fairing was not properly separated, the satellite could not be sent into the 500-kilometer SSO orbit, and the flight test failed to achieve the expected goal.

This launch further verified the correctness of the overall plan of the Hyperbola-1 rocket, obtained effective flight data, and accumulated valuable experience and lessons.

8. Including the Tax Rate for the Purchase of a House Deed is Determined By Each Province

The new deed tax law was implemented on September 1, and various regions have successively determined the tax rate for the purchase of house deeds to be 3%, but the deed tax preferential tax rate policy as low as 1% to 2% will continue to be implemented. A reporter from China Business News combed through the data and found that provinces including Guangdong, Beijing, Jiangxi, Guangxi, Shanxi, Liaoning, Fujian, Henan, Yunnan, and Hainan have recently determined the deed tax rate after September 1. Among them, the tax rate on the deed of property purchase that has attracted much attention is set at the lowest level of 3% in each province.

On August 4, the relevant person in charge of the Tax Administration Department of the Zhejiang Provincial Department of Finance responded via the official website that Article 6 of the “Deed Tax Law” clearly stated that in accordance with the needs of the national economy and social development, the State Council will guarantee the housing needs of residents, enterprise restructuring and restructuring, and post-disaster reconstruction. Such circumstances may provide for exemption or reduction of deed tax, and report to the Standing Committee of the National People’s Congress for the record. It can be seen that after the “Deed Tax Law” is formally implemented, the State Council can still formulate preferential tax reduction and exemption policies for the protection of residential housing needs. At the same time, the state’s preferential tax rate policies regarding residents’ purchase of the first and second suites, fund-raising housing construction, affordable housing, resettlement housing, public rental housing, etc. are still valid within the statutory period.

By【G Translators- Financial Team】
Author: 和理非

1 Comment
Inline Feedbacks
View all comments
QIN
QIN
1 month ago

AUGUST 9TH, 2021 @ 5:09 AM   EMPRESS QIN MINGTAO: SUPREME MILITARY SPIRITUAL LEADER FOR THE WAR AGAINST THE SNAKE GOD OF INDIA AND THE WHITE SNAKES WHO WOULD TRY AND DESTROY ME. FOR OVER 2,000 YEARS.   THE ONLY TRUMP CARD THAT SNAKE HAD WAS BANKING ON ME TO TITLE HIM WORLD EMPEROR AND USE OF IMPERIAL CHINA MILITARY ON THE PRETEXT HE NEEDED EXTRA TROOPS TO ARREST THE PEDOPHILES. HE LIED, AND THAT IS WHY HIS ENERGY GOT MORE-DENSE AND HE SANK FUTHER TOWARD HELL. AND IT WAS NOT QIN WHO GAVE HIM THAT TITLE, IT WAS HIS LOVER MARY… Read more »