【Today's Headlines】Tencent (00700) Q2 Financial Results: Revenue RMB 184.5 billion, Up 15% YoY

Tencent Holdings' second quarter results showed that AI technology and applications are accelerating their transformation into performance drivers. The company achieved revenue of RMB 184.5 billion in the quarter, up 15% year-on-year, with operating profit of RMB 69.25 billion, up 18% year-on-year. AI has been deeply integrated into Tencent's core businesses, significantly driving growth: Value-added services revenue increased 16% year-on-year to RMB 91.37 billion, gaming segment revenue grew 22% year-on-year, with international gaming market revenue up 35% year-on-year to RMB 18.8 billion, marking a new high for four consecutive quarters; Marketing services maintained high-speed growth driven by large model technology upgrades and increased WeChat ecosystem activity, with revenue up 20% year-on-year to RMB 35.76 billion; FinTech and enterprise services business showed significant profitability improvement, with revenue up 10% year-on-year to RMB 55.54 billion. While core businesses maintained solid growth, Tencent continued to increase AI strategic investment: R&D investment in the quarter increased 17% year-on-year to RMB 20.25 billion, and capital expenditure surged 119% year-on-year to RMB 19.11 billion. Overnight, Tencent Holding Ltd. ADR rose 7.4%.

【Market Outlook】Nasdaq Golden Dragon China Index Up 2.08%

Overnight US stocks closed with the Dow Jones up 463.66 points or 1.04% to 44,922.27 points; Nasdaq up 31.24 points or 0.14% to 21,713.14 points; S&P 500 up 20.82 points or 0.32% to 6,466.58 points. Bullish (BLSH.US) closed up 83.78% on its first trading day, Coreweave (CRWV.US) closed down 20.83%. Stablecoin giant Circle (CRCL.US) fell 6.15%. The Nasdaq Golden Dragon China Index rose 2.08%, with Bilibili (BILI.US) up 6.61% and iQiyi (IQ.US) up 5.41%. Hang Seng Index ADR rose, proportionally calculated to close at 25,756.36 points, up 142.69 points or 0.56% from Hong Kong's close. Hong Kong Monetary Authority bought HK$3.376 billion as the Hong Kong dollar touched the weak-side convertibility undertaking level of the trading range.

【Hot Topics Ahead】Some Enterprises in Yangtze River Delta Region Take Lead in Announcing Cement Price Increases

According to China Cement Market Information Center, since August, major clinker production enterprises in the Yangtze River Delta region have successively begun kiln shutdowns for about 15 days, reducing inventory pressure. Driven by this and considering that regional cement prices have generally fallen to their lowest levels with significant operational pressure on enterprises and strong willingness to raise prices, some enterprises in the Yangtze River Delta region took the lead in announcing clinker price increases of RMB 30/ton starting August 12. Currently, most enterprises are still observing. Possibly driven by clinker price increases, on the same day, some leading enterprises in northern Zhejiang and other areas began attempting to follow with notifications of high-grade bulk cement price increases of RMB 30/ton. Other peers are still observing, and the specific implementation remains to be tracked. Meanwhile, market feedback indicates that cement prices in Jiangsu region have fallen to low levels, with some enterprises suffering serious losses. To improve profitability, starting August 12, some enterprises in Jiangsu's Su-Xi-Chang areas took the lead in issuing price increase notices for high-grade cement by about RMB 30/ton. Overall, the market is still in the off-season with high temperatures and frequent typhoons, with no improvement in demand. Whether this round of price increases can be implemented remains to be observed.

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

The State Administration for Market Regulation is publicly soliciting opinions on the "Notice of the State Administration for Market Regulation and Ministry of Industry and Information Technology on Strengthening Product Recall, Production Consistency Supervision and Management, and Standardizing Publicity of Intelligent Connected New Energy Vehicles (Draft for Comments)". It proposes that enterprises should completely and accurately report key information such as combined driving assistance systems and energy storage device components in the motor vehicle certificate system, strictly implement classification management requirements for software over-the-air (OTA) upgrade activities, not conduct OTA upgrade activities without filing, not push software versions that have not undergone sufficient testing and verification to users, not conceal defects through OTA methods, ensure that produced intelligent connected new energy vehicle products equipped with combined driving assistance systems are consistent with approved products, and bear product safety responsibility.

Central Bank: M2 Balance at End of July RMB 329.94 Trillion, Up 8.8% YoY

According to Zhitong Finance APP, on August 13, the central bank released the July 2025 financial statistics report. Data showed that at the end of July, broad money (M2) balance was RMB 329.94 trillion, up 8.8% year-on-year. Narrow money (M1) balance was RMB 111.06 trillion, up 5.6% year-on-year. Currency in circulation (M0) balance was RMB 13.28 trillion, up 11.8% year-on-year. Net cash injection in the first seven months was RMB 465.1 billion.

GAC Group (02238): GAC Aion Plans to Invest RMB 600 Million in Huawang Motors

According to Zhitong Finance APP, GAC Group (02238) announced that on August 13, 2025, the board of directors approved the "Proposal on GAC Aion's Investment in Huawang Motors". It agreed that the controlling subsidiary GAC Aion New Energy Automobile Co., Ltd. ("GAC Aion") would invest RMB 600 million in Huawang Motors Technology (Guangzhou) Co., Ltd. ("Huawang Motors"). After completing this capital increase, the company will directly hold 71.43% equity in Huawang Motors and indirectly hold 28.57% equity in Huawang Motors through GAC Aion.

China Daye Non-Ferrous Metals (00661): China Fifteenth Metallurgical Corporation 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 to implement the national important deployment on accelerating the optimization of state-owned economic layout and structural adjustment and the specific requirements of SASAC on professional integration of central enterprises, and further optimize internal resource allocation, the company's controlling shareholder Daye Non-ferrous Metals Group Holdings Co., Ltd. ("Parent Company") signed a letter of intent on August 11, 2025, with China Fifteenth Metallurgical Corporation ("China Fifteenth Metallurgical"), a wholly-owned subsidiary of China Nonferrous Metal Mining (Group) Co., Ltd. ("China Nonferrous Mining"), the controlling shareholder of the parent company and the company. Accordingly, China Fifteenth Metallurgical 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 possible disposal was approximately RMB 130 million. The consideration is expected to be determined by the company and China Fifteenth Metallurgical through fair negotiation in the final and legally binding formal agreement.

Samsonite (01910) Released Interim Results: Profit Attributable to Equity Holders USD 118 Million, Down 30.2% YoY

According to Zhitong Finance APP, Samsonite (01910) released results for the six months ended June 30, 2025, with net sales of USD 1.662 billion, down 6% year-on-year; profit attributable to equity holders of USD 118 million, down 30.2% year-on-year; basic earnings per share of USD 0.085.

Value Partners Group (00806) Released Interim Results: Profit Attributable to Shareholders HK$252 Million, Up 572.7% YoY

According to Zhitong Finance APP, Value Partners Group (00806) released results for the six months ended June 30, 2025, with total revenue of HK$221 million, down 6.3% year-on-year; profit attributable to owners of the company of HK$252 million, up 572.7% year-on-year; basic earnings per share of 13.8 HK cents.

CWT INT'L (00521) Issues Profit Alert: Expected Interim After-tax Profit of No Less Than HK$270 Million, Increase of No Less Than 99%

According to Zhitong Finance APP, CWT INT'L (00521) announced that the group expects to achieve after-tax profit of no less than HK$270 million for the six months ended June 30, 2025, representing an increase of no less than 99% compared to after-tax profit of approximately HK$136 million for the six months ended June 30, 2024.

Dragon Mining (01712) Issues Profit Alert: Expected Interim Profit Attributable to Shareholders of Approximately AUD 11.6-13.6 Million

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

NEXTEER (01316) Announced Interim Results: Profit Attributable to Equity Holders USD 63.48 Million, Up 304.46% YoY

According to Zhitong Finance APP, NEXTEER (01316) announced 2025 interim results with revenue of approximately USD 2.242 billion, up 6.8% year-on-year; profit attributable to company equity holders of USD 63.48 million, up 304.46% year-on-year; earnings per share of USD 0.025.

Yankuang Energy (01171) Issues Profit Warning: Expected First Half Net Profit Attributable to Parent of Approximately RMB 4.65 Billion, Down About 38% YoY

According to Zhitong Finance APP, Yankuang Energy (01171) announced that the company expects to achieve net profit attributable to listed company shareholders of approximately RMB 4.65 billion for the first half of 2025, a decrease of approximately RMB 2.9 billion compared to the same period last year, down about 38% year-on-year; expected to achieve net profit attributable to listed company shareholders excluding non-recurring gains and losses of approximately RMB 4.4 billion for the first half of 2025, a decrease of approximately RMB 2.9 billion compared to the same period last year, down about 39% year-on-year.

【Individual Stock Highlights】REMEGEN (09995): Telitacicept Treatment for Primary Sjögren's Syndrome Phase III Clinical Study Achieves Primary Endpoint

According to Zhitong Finance APP, REMEGEN (09995) announced that the company's independently developed BLyS/APRIL dual-target fusion protein innovative drug telitacicept (RC18, trade name: Taiprost®) for the treatment of primary Sjögren's syndrome (pSS) Phase III clinical study has achieved the primary endpoint designed in the protocol.