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China Business News Thursday (2021-02-18)


1. Baidu publishes a positive annual report.

In 2020, Baidu had revenue of 107.1 billion yuan and a net profit of 22 billion yuan under non-USGAAP. The financial report shows that Baidu's revenue structure is changing. Non-advertisingrevenue increased by 52% year-on-year, which is also the first time the progress of chip progressis outlined. Announcements included the establishment of a smart car company and the acquisitionof YY's live broadcasting business.


2. New Horizon Health IPO in Hong Kong.

New Horizon Health (stock code: 6606. HK) was listed on the Hong Kong Stock Exchange todaywith an issue price of HK $26.66 and net proceeds of HK $1.9 billion. Horizon Health haslaunched various home cancer screening products to detect colorectal cancer, cervical cancer,stomach cancer, and lung cancer. Horizon Health's revenue in the first nine months of 2020 was35,309 million yuan with a loss of 534 million.


3. China's internet users approach 1 billion.

The 47th Statistical Report on China's Internet Development was recently released by theChina Internet Network Information Center (CNNIC). It shows that in December 2020, China'sinternet users reached 989 million, accounting for 1/5 of the world's internet users. Meanwhile,China's internet penetration rate has reached 70.4%. As of December 2020, the internetpenetration rate is 79.8% in urban areas and only 55.9% in rural areas.


4. iQiyi subscriber decline and misses analysts’ expectations.

The Chinese streaming video company said it lost subscribers year-on-year, causing its sharesto fall 8% in after-hours trading. IQiyi said it had 101.7 million subscribers at the end of thefourth quarter, down from 106.9 million in the year-ago period. Therefore, revenue fell 1% year-on-year to $1.1 billion. Operating loss was RMB1.3 billion (US$200.4 million), and operating lossmargin was 18%.


5. The founder of Gome Home Retail has been released from prison.

On 17 February, Gome Holdings Group released the news via the official Wechat account that"the parole period of Huang Guangyu, the founder of Gome Group, expired on 16 February 2021"and was officially released". At this point, 12 years and 3 months have passed since HuangGuangyu was investigated for the crime of share price manipulation on 19 November 2008.After the news, Gome retail (00493. HK) surged 34% on 16 February.


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