Zhitong Hong Kong Stock Early Knowledge | Alibaba's AI investment increased by 220% year-on-year, and the State Council reviewed and approved the "Implementation Plan for Strengthening the Foundation of Medical and Health Services"

[Today's Headlines]

Alibaba (09988) Financial Report "Submitted" AI Investment Hits Record High

Alibaba's financial report for the first quarter of fiscal year 2026 (the second quarter of calendar year 2025), released on August 29, shows that excluding the impact of sold businesses, the group's overall revenue grew steadily by 10% year-on-year, and net profit increased by 76% year-on-year. Alibaba is firmly investing around two strategic focuses: AI + Cloud and large consumption. At the end of February this year, Alibaba announced an investment of 380 billion yuan over the next three years to build cloud and AI hardware infrastructure, and launched instant retail services at the end of April, announcing an investment of 50 billion yuan in the consumer sector in July.

In terms of AI + Cloud, the financial report shows that the group's Capex (capital expenditure) investment in AI + Cloud reached 38.6 billion yuan in this quarter, setting a record high. Alibaba Cloud's revenue growth continued to accelerate to 26%, reaching a three-year high, and revenue from AI-related products has achieved triple-digit year-on-year growth for eight consecutive quarters. Alibaba's financial report for the first quarter of fiscal year 2026 shows that the Capex (capital expenditure) investment in AI + Cloud reached 38.6 billion yuan, a year-on-year increase of 220%.

[Market Outlook]

All three major U.S. stock indices fell, spot gold approached historical highs again

Last weekend, at the close of the U.S. stock market, the Dow Jones Industrial Average fell by 92.02 points, a decrease of 0.20%, closing at 45,544.88 points; the Nasdaq fell by 249.61 points, a decrease of 1.15%, closing at 21,455.55 points; the S&P 500 index fell by 41.60 points, a decrease of 0.64%, closing at 6,460.26 points. Nvidia (NVDA.US) fell over 3.3%, Apple (AAPL.US) slightly declined, and Amazon (AMZN.US) fell over 1%. Most popular Chinese concept stocks rose, with the Nasdaq Golden Dragon China Index up 1.55%, down 0.1% for the week, and up 6.03% for August, marking four consecutive months of gains. Alibaba rose nearly 13%, achieving its best single-day performance since March 2023. COMEX gold futures rose by 1.19%, closing at $3,515.50 per ounce; spot gold rose by 0.94%, closing at $3,449.01 per ounce, approaching historical highs.

Recent disclosures from the Hong Kong Stock Exchange show that JP Morgan, Citigroup, and Morgan Stanley have recently increased their holdings in Contemporary Amperex Technology Co., Limited (03740), ZTE Corporation (00763), and WuXi AppTec (02359) among other H-shares. According to a recent report from Morgan Stanley, global hedge funds have increased their bets on Chinese stocks, with August expected to set the highest monthly buying scale since February.

Due to the U.S. Labor Day holiday, the U.S. stock market will be closed on September 1. Trading for precious metals and U.S. oil contracts under CME will end early at 02:30 Beijing time on the 2nd, and stock index futures trading will end early at 01:00 Beijing time on the 2nd; trading for Brent crude oil futures under ICE will end early at 01:30 Beijing time on the 2nd.

[Hot Topics Ahead]

State Council: Researching the implementation of pilot work for comprehensive reform of factor market-oriented allocation in some regions nationwide Premier Li Qiang presided over a State Council executive meeting on August 29 to study the implementation of pilot work for the market-oriented allocation of factors in some regions across the country, deploy the revitalization action for ordinary high schools in counties, and review and approve the "Implementation Plan for Strengthening Medical and Health Foundations." The meeting pointed out that deepening the market-oriented reform of factors is an important measure for constructing a high-level socialist market economic system and is a key component in promoting the construction of a unified national market.

Guangzhou Suspends Automobile "Replacement and Upgrade" Subsidies

The Guangzhou Municipal Bureau of Commerce announced that after research, it has decided to adjust the automobile "replacement and upgrade" policy for 2025. The automobile "replacement and upgrade" subsidy policy will be suspended from 12:00 AM on August 30, 2025. Dealers participating in the automobile "replacement and upgrade" activities should promptly and accurately inform consumers of the policy adjustments.

The U.S. Revokes VEU Exemptions for Samsung, SK Hynix, and Intel in China, Reopening the Window for Domestic Storage

On August 30, a reporter from China Business News learned from documents archived in the Federal Register on August 29, 2025, that the Trump administration has decided to revoke the "Validated End-User" (VEU) authorization for Samsung Electronics and SK Hynix's operations in China. This policy change will take effect 120 days after the announcement and aims to further restrict China's access to advanced chip manufacturing technology, potentially exacerbating tensions in the global semiconductor supply chain.

Huahong Semiconductor A Plans to Acquire 97.4988% Equity of Huali Micro, Resumes Trading on September 1

According to a report from Zhitong Finance APP, Huahong Semiconductor (688347.SH) announced that the company plans to purchase a total of 97.4988% equity of Shanghai Huali Microelectronics Co., Ltd. ("Huali Micro") from Huahong Group and three other trading parties through the issuance of shares and cash payment. The company also plans to issue stocks to no more than 35 qualified specific objects to raise matching funds. The company's stock will resume trading on September 1, 2025. This involves Hong Kong-listed Huahong Semiconductor (01347).

SMIC (00981) Plans to Acquire Minority Equity of SMIC North, A Shares to Be Suspended from September 1

According to a report from Zhitong Finance APP, SMIC (00981) announced that the company is planning to acquire minority equity in its controlling subsidiary, SMIC North Integrated Circuit Manufacturing (Beijing) Co., Ltd. (SMIC North), through the issuance of ordinary shares in RMB (A Shares).

Inspur Digital Enterprise (00596) Releases Mid-Year Results, Shareholders' Profit Attributable to Owners Reaches 183 Million Yuan, Up 73.3% Year-on-Year

According to a report from Zhitong Finance APP, Inspur Digital Enterprise (00596) released its mid-year results for 2025, with a revenue of 4.343 billion yuan (RMB, the same below), an increase of 4.9% year-on-year; profit attributable to the company's owners reached 183 million yuan, up 73.3% year-on-year; basic earnings per share were 16.04 cents.

BYD Company (01211) Reports 13.79% Year-on-Year Growth in Profit Attributable to Parent Company in the First Half of the Year, Reaching 15.511 Billion Yuan, with Automotive Business Expanding Globally and Achieving Leapfrog Growth According to the Zhitong Finance APP, BYD Company Limited (01211) announced its mid-term results for 2025, with revenue of 371.281 billion yuan, a year-on-year increase of 23.3%; gross profit of 66.866 billion yuan, a year-on-year increase of 18.24%; profit attributable to equity holders of the parent company of 15.511 billion yuan, a year-on-year increase of 13.79%; earnings per share of 1.71 yuan.

Midea Group (00300) released mid-term results, with net profit attributable to the parent increasing by 25.04% to 26.014 billion yuan

According to the Zhitong Finance APP, Midea Group (00300) released its mid-term results for the six months ending June 30, 2025, with revenue of 252.331 billion yuan, a year-on-year increase of 15.68%; profit attributable to equity holders of the company of 26.014 billion yuan, a year-on-year increase of 25.04%; and a proposed interim dividend of 5 yuan for every 10 shares.

UBTECH (09880) secures a $1 billion strategic financing credit line, plans to build a super factory in the Middle East

On August 31, UBTECH Robotics announced that it has officially signed a $1 billion strategic partnership cooperation agreement with international investment institution Infini Capital. According to the cooperation agreement, the high-tech fund under Infini Capital will provide UBTECH with a total strategic financing credit line of $1 billion, with financing methods including participation in placements, subscription of convertible bonds, and granting cash withdrawal rights. The two parties also reached several strategic cooperation agreements in the industry: Infini Capital plans to increase its stake in UBTECH at an appropriate time, aiming to become a significant shareholder with no more than a 5% stake; both parties will jointly invest in the upstream and downstream industrial chain of humanoid robots; and will assist UBTECH in exploring the Middle Eastern market, establishing a joint venture in the Middle East, and planning to build a super factory and R&D center as well as a headquarters in the Middle East.

Huaxin Cement (06655): Plans to spin off overseas subsidiary for listing

Huaxin Cement (06655) announced that the company plans to integrate all its actual overseas production and operation assets into an overseas subsidiary to be established by Huaxin Cement or its subsidiaries, and plans to apply for the listing of this subsidiary on an overseas stock exchange. This spin-off listing will not affect Huaxin Cement's control over the relevant overseas assets, and the spun-off subsidiary will still be a controlled subsidiary within the consolidated financial statements of Huaxin Cement. The purpose of this spin-off listing is to further broaden financing channels, open up and integrate resources, enhance operational capabilities, increase the company's influence in the global cement production and sales industry, and implement the company's long-term strategic goal of "building a globally leading multinational building materials enterprise." The specific plan is still under verification and advancement.

Zoomlion Heavy Industry Science and Technology Co., Ltd. (01157) released mid-term results with profit attributable to shareholders of 2.753 billion yuan, a year-on-year increase of 20.69%, and an interim dividend of 0.2 yuan per share

According to the Zhitong Finance APP, Zoomlion Heavy Industry Science and Technology Co., Ltd. (01157) released its mid-term results for the six months ending June 30, 2025, with total assets of 129.262 billion yuan, an increase of 5.550 billion yuan (or 4.49%) compared to December 31, 2024; revenue of 24.855 billion yuan, an increase of 320 million yuan (or 1.30%) compared to the same period in 2024; The profit attributable to shareholders of the company is RMB 2.753 billion, an increase of RMB 472 million (or 20.69%) compared to the same period in 2024; earnings per share are RMB 0.32; the interim dividend is RMB 0.2 per share.

【Stock Highlights】

Tongguan Gold (00340): Benefiting from the Continuous Rise in Gold Prices

Tongguan Gold announced its interim results for 2025, with a revenue of approximately HKD 1.029 billion, a year-on-year increase of 21%. The profit attributable to owners of the company is approximately HKD 343 million, a year-on-year increase of 273%; basic earnings per share are HKD 0.0817. The announcement stated that the increase in revenue and profit is mainly due to the increase in gold production and sales volume, as well as the rise in the average selling price of gold. The average selling price of gold increased from RMB 499 per gram in the same period of 2024 to RMB 666 per gram during the interim period; and the sales volume of gold increased from approximately 1.19 tons in the same period of 2024 to approximately 1.44 tons during the interim period.

It is worth mentioning that Tongguan Gold previously announced that it has been included in the MSCI Global Small Cap Index constituents. The board believes that being included in the MSCI Global Small Cap Index constituents will help enhance the company's market liquidity and realize its investment value. Minsheng Securities pointed out that in April 2025, the company achieved a "equity + metal flow" dual binding model with Zijin Mining, and it is expected to continuously improve the company's operational performance with the support of Zijin. The firm believes that as the company's gold production is expected to grow year by year in the future, coupled with the favorable gold price environment, the company's performance is expected to continue the strong performance of 2024 and enter a rapid growth phase. The company's gold mining business has entered a new development stage, with strong internal momentum in both mines, and gold production is expected to continue to increase