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China Business News Tuesday (2021-03-02)


1 China's chipmaker could be the winner in the semiconductor shortage.

According to the analysts, Chinese chipmaker SMIC could be a beneficiary of the global chip

shortage, giving the company some respite from some of the adverse effects of US sanctions. Its

technology is far behind its rivals, such as Taiwan's TSMC and South Korea's Samsung, which is

why at the moment, SMIC is only able to produce semiconductors based on older technology. This could be to its advantage because cars and other products don't need cutting-edge chips right now.

Source: ·

2. Didi (Chinese Uber) has plans to go public soon.

After they made a net profit of about USD 1 billion in 2020, market sources say that Didi plans to

go public in the second half of this year, and its market value could reach USD 100 billion. In

August 2016, Didi acquired Uber China, after which it has pretty much monopolized the Chinese

online taxi-hailing market. Didi has a taxi brokerage business, leasing business, financial

services business, and bicycle leasing business.


3. NIO wants to double its R & D investment in the next two years.

Li Bin, CEO of NIO, said at the Q4 financial report conference that NIO aims to significantly

increase its R & D investment. As a result, the R & D investment of the company is expected to

double by about RMB 5 billion in 2021. In this regard, NIO is focusing on a strategy of

technological leadership.


4. Huawei wants to build electric cars in 2021.

According to a Reuter's report, Huawei talks with several automakers in China to help build its

cars. The company wants to launch several electric cars, and "some models" could be launched

as early as later this year. The report said that the company has already started working on the

designs and is approaching state-owned carmakers such as Changan Automobile and BAIC

Group's BluePark New Energy Technology etc., achieving its goal.


5. Famous hot-pot chain Haidilao records a net profit drop of 90%.

Haidilao (06862. HK) announced that its net profit dropped by about 90% in 2020. The reason

for the profit slump is said to be the restrictions imposed by the COVID-19 control measures on

consumption premises. The restaurant industry faces significant challenges due to COVID, and

even the national hot-pot giant cannot afford to make much money. Despite these losses,

Haidilao's stocks rose by 120% last year.


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