Zhitong Hong Kong Stocks Early Insights | Tencent Q2 revenue increased by 15% year-on-year, M2 balance increased by 8.8% year-on-year at the end of July

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Tencent (00700) Q2 Financial Report: Revenue of 184.5 billion yuan, a year-on-year increase of 15%

Tencent Holdings' Q2 report shows that AI technology and applications are accelerating into performance momentum. During the quarter, Tencent achieved revenue of 184.5 billion yuan, a year-on-year increase of 15%, and operating profit of 69.25 billion yuan, a year-on-year increase of 18%.

AI is deeply integrated into Tencent's core business, significantly driving growth: revenue from value-added services increased by 16% year-on-year to 91.37 billion yuan, revenue from the gaming sector increased by 22% year-on-year, with international gaming market revenue increasing by 35% year-on-year to 18.8 billion yuan, reaching a new high for four consecutive quarters; marketing services maintained rapid growth driven by large model technology upgrades and increased activity in the WeChat ecosystem, with revenue increasing by 20% year-on-year to 35.76 billion yuan; financial technology and enterprise services saw significant improvement in profitability, with revenue increasing by 10% year-on-year to 55.54 billion yuan. While core business growth remains solid, Tencent continues to increase investment in its AI strategy: R&D investment increased by 17% year-on-year to 20.25 billion yuan, and capital expenditure increased by 119% year-on-year to 19.11 billion yuan.

Overnight, Tencent Holdings ADR surged 7.4%.

[Market Outlook]

Nasdaq China Golden Dragon Index up 2.08%

Overnight, U.S. stocks closed with the Dow Jones up 463.66 points, an increase of 1.04%, closing at 44,922.27 points; the Nasdaq rose 31.24 points, an increase of 0.14%, closing at 21,713.14 points; the S&P 500 index rose 20.82 points, an increase of 0.32%, closing at 6,466.58 points. Bullish (BLSH.US) closed up 83.78% on its first day of trading, while Coreweave (CRWV.US) closed down 20.83%. Stablecoin giant Circle (CRCL.US) fell 6.15%.

The Nasdaq China Golden Dragon Index rose 2.08%, with Bilibili (BILI.US) up 6.61% and iQIYI (IQ.US) up 5.41%. The Hang Seng Index ADR rose, closing at 25,756.36 points, up 142.69 points or 0.56% from the Hong Kong close.

The Hong Kong Monetary Authority bought 3.376 billion Hong Kong dollars as the Hong Kong dollar reached the weak end of the trading range guarantee level.

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Some companies in the Yangtze River Delta region take the lead in announcing cement price increases

According to the China Cement Market Center, starting in August, major clinker line companies in the Yangtze River Delta region have begun to stop production for about 15 days, reducing inventory pressure. Driven by this, and as regional cement prices have generally fallen to a low point, companies are under significant operational pressure and have a strong willingness to raise prices. Starting from August 12, some companies in the Yangtze River Delta region took the lead in announcing a price increase of 30 yuan/ton for clinker. Currently, most companies are still observing. On the same day, some leading companies in northern Zhejiang and other areas began to attempt to follow up with notifications to raise the price of high-standard bulk cement by 30 yuan/ton. Other peers are still observing, and the specific implementation situation remains to be tracked. Meanwhile, market feedback indicates that cement prices in the Jiangsu region have fallen to a low level, with some companies suffering significant losses. To improve profitability, starting from August 12, some companies in Jiangsu, Suzhou, and Changzhou have taken the lead in announcing a price increase of about 30 yuan/ton for high-standard cement Overall, the market is still in the off-season of high temperatures and frequent typhoons, with no improvement in demand. Whether this round of price increases can be implemented remains to be seen.

Two Departments: New Energy Vehicle Companies Must Not Conduct OTA Upgrade Activities Without Filing

The State Administration for Market Regulation has publicly solicited opinions on the "Notice on Strengthening the Recall, Production Consistency Supervision and Management, and Standardized Promotion of Intelligent Connected New Energy Vehicle Products (Draft for Comments)" issued by the Ministry of Industry and Information Technology. It states that companies should accurately and completely report key information such as the combined driving assistance system and energy storage device units in the motor vehicle qualification certificate system, and strictly implement the classified management requirements for software online upgrades (hereinafter referred to as OTA upgrades). OTA upgrade activities must not be conducted without filing, untested software versions must not be pushed to users, and defects must not be concealed through OTA methods, ensuring that the intelligent connected new energy vehicle products equipped with combined driving assistance systems are consistent with the approved products and that product safety responsibilities are assumed.

Central Bank: M2 Balance Reached 329.94 Trillion Yuan at the End of July, Up 8.8% Year-on-Year

According to Zhitong Finance APP, on August 13, the central bank released the financial statistics report for July 2025. The data shows that at the end of July, the balance of broad money (M2) was 329.94 trillion yuan, an increase of 8.8% year-on-year. The balance of narrow money (M1) was 111.06 trillion yuan, up 5.6% year-on-year. The balance of currency in circulation (M0) was 13.28 trillion yuan, an increase of 11.8% year-on-year. A net cash injection of 465.1 billion yuan occurred in the first seven months.

GAC Group (02238): GAC Aion Plans to Increase Investment in Huawang Automobile by 600 Million Yuan

According to Zhitong Finance APP, GAC Group (02238) announced that on August 13, 2025, the board of directors approved the proposal regarding GAC Aion's investment in Huawang Automobile. It agreed that its subsidiary GAC Aion New Energy Automobile Co., Ltd. (referred to as "GAC Aion") would increase its investment in Huawang Automobile Technology (Guangzhou) Co., Ltd. (referred to as "Huawang Automobile") by 600 million yuan. After this capital increase, the company will directly hold 71.43% of Huawang Automobile's equity and indirectly hold 28.57% of Huawang Automobile's equity through GAC Aion.

China Daye Non-Ferrous Metals (00661): China Nonferrous Metal Industry's 15th Metallurgical Construction Group Plans to Acquire 100% Equity of Daye Non-Ferrous Design Research Institute Co., Ltd.

According to Zhitong Finance APP, China Daye Non-Ferrous Metals (00661) announced that the company learned that in order to implement the national important deployment on accelerating the optimization of state-owned economic layout and structural adjustment, as well as the specific requirements of the State-owned Assets Supervision and Administration Commission of the State Council on the professional integration of central enterprises, and to further optimize internal resource allocation, the company's controlling shareholder Daye Non-Ferrous Metals Group Holding Co., Ltd. (hereinafter referred to as "the parent company") signed a letter of intent on August 11, 2025, with its parent company and the controlling shareholder of the company, China Nonferrous Metal Mining Group Co., Ltd. (hereinafter referred to as "China Nonferrous Mining"), through its wholly-owned subsidiary China 15th Metallurgical Construction Group Co., Ltd. (hereinafter referred to as "China Nonferrous 15th Metallurgy"). According to this, China Nonferrous 15th Metallurgy will acquire 100% equity of the company's non-wholly-owned subsidiary Daye Non-Ferrous Design Research Institute Co., Ltd. As of July 31, 2025, the total asset value involved in the potential sale is approximately 130 million yuan The expected costs will be determined by the company after fair negotiations with China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. in the final and legally binding formal agreement.

Samsonite (01910) releases interim results: Profit attributable to equity holders is $118 million, a decrease of 30.2% year-on-year

According to Zhitong Finance APP, Samsonite (01910) released its performance for the six months ending June 30, 2025, with net sales of $1.662 billion, a year-on-year decrease of 6%; profit attributable to equity holders is $118 million, a year-on-year decrease of 30.2%; basic earnings per share are $0.085.

Value Partners Group (00806) releases interim results: Profit attributable to shareholders is HKD 252 million, a year-on-year increase of 572.7%

According to Zhitong Finance APP, Value Partners Group (00806) released its performance for the six months ending June 30, 2025, with total revenue of HKD 221 million, a year-on-year decrease of 6.3%; profit attributable to the company's owners is HKD 252 million, a year-on-year increase of 572.7%; basic earnings per share are HKD 0.138.

CWT INT'L (00521) issues profit warning: Expected interim profit after tax not less than HKD 270 million, an increase of not less than 99%

According to Zhitong Finance APP, CWT INT'L (00521) announced that it expects the group to achieve an after-tax profit of not less than HKD 270 million for the six months ending June 30, 2025, an increase of not less than 99% compared to approximately HKD 136 million after-tax profit for the six months ending June 30, 2024.

Dragon Resources (01712) issues profit warning: Expected interim profit attributable to shareholders is approximately AUD 11.6 million to AUD 13.6 million

According to Zhitong Finance APP, Dragon Resources (01712) announced that it expects the group to record a profit attributable to shareholders of approximately AUD 11.6 million to AUD 13.6 million for the period ending June 30, 2025, compared to a profit attributable to shareholders of AUD 1.97 million for the period ending June 30, 2024. The accounts have not been audited and/or reviewed by the company's auditors and/or the audit and risk management committee.

Nexteer Automotive (01316) announces interim results: Profit attributable to equity holders is $63.48 million, a year-on-year increase of 304.46%

According to Zhitong Finance APP, Nexteer Automotive (01316) announced its interim results for 2025, with revenue of approximately $2.242 billion, a year-on-year increase of 6.8%; profit attributable to equity holders is $63.48 million, a year-on-year increase of 304.46%; earnings per share are $0.025.

Yankuang Energy (01171) issues profit warning: Expected net profit attributable to parent company for the first half of the year is approximately RMB 4.65 billion, a year-on-year decrease of about 38%

According to Zhitong Finance APP, Yankuang Energy (01171) announced that the company expects to achieve a net profit attributable to the listed company's shareholders of approximately RMB 4.65 billion for the first half of 2025, a decrease of about RMB 2.9 billion compared to the same period last year, representing a year-on-year decrease of about 38%; it is expected that the net profit attributable to the listed company's shareholders after deducting non-recurring gains and losses will be approximately RMB 4.4 billion for the first half of 2025, a decrease of about RMB 2.9 billion compared to the same period last year, representing a year-on-year decrease of about 39% [Stock Highlights]

Rongchang Biologics (09995): Taitasip achieves primary endpoint in Phase III clinical study for treating primary Sjögren's syndrome

According to Zhitong Finance APP, Rongchang Biologics (09995) announced that its self-developed BLyS/APRIL dual-target fusion protein innovative drug Taitasip (RC18, brand name: Tai'ai®) has achieved the primary endpoint of the clinical trial as designed in the Phase III clinical study for treating primary Sjögren's syndrome (pSS)