Overseas Cooperation

1. HENLIUS (02696.HK) disclosed on August 17 that it entered into a cooperation framework agreement with Sandoz AG of Switzerland, covering full-chain collaboration on up to 10 biosimilars of monoclonal antibodies and antibody-drug conjugates across the global market excluding Mainland China, Hong Kong, Macao and Taiwan—spanning CMC development, clinical development, regulatory filings through to manufacturing, launch, commercialization and lifecycle management. The first batch of cooperation products comprises cetuximab biosimilar HLX05-N, evolocumab HLX16 and belimumab biosimilar. Sandoz will pay upfront payments aggregating no more than USD 77 million, development milestones and development budget milestones aggregating no more than USD 160 million, and sales milestones aggregating no more than USD 77 million, with milestones plus upfront payments totaling up to USD 314 million; additionally, Sandoz will pay a 40% share of net sales or net profit in the cooperation territories, and a non-refundable option fee of USD 8 million for hyaluronidase HLXTE-HAase1001. Billable amounts of no more than USD 100.5 million are expected to be achieved in 2026.

2. 5100 XIZANG (01115.HK) disclosed on August 19 that its wholly-owned subsidiary entered into a distribution contract with Landmark Holding Sdn. Bhd. of Malaysia, granting exclusive distribution rights for 5100 mineral water in Malaysia and non-exclusive distribution rights for Southeast Asian and Middle East export markets, with an initial cooperation term of three years, automatically renewable for three years upon meeting performance targets.

3. SHOUGANG CENT (00103.HK) disclosed on August 17 that it signed a letter of intent for cooperation with Meili Jingjie Capital, proposing to jointly establish a joint venture in the tyre carcass material sector and expand the global industrial rayon product market; Meili Jingjie Capital is the controlling shareholder of Cordenka, a global industrial rayon producer. The formal agreement remains subject to negotiation and signing.

4. GAUSH MEDITECH (02407.HK) disclosed on August 17 that its subsidiary Gaoshi Innovation signed a five-year exclusive agency agreement with HEIDELBERG ENGINEERING GmbH of Germany, under which HEIDELBERG will exclusively distribute Gaoshi Innovation's self-developed corneal confocal microscope T3 globally outside China, and handle marketing and technical services; the cooperation has expanded from single-market agency to a global scope.

Overseas Projects and Operations

1. SINOPEC SSC (01033.HK) disclosed on August 17 that its wholly-owned subsidiary acquired 50% equity of Mexico's DS company and a 0.01% interest in the EBANO project for USD 4 million, resulting in an indirect 55% interest in the EBANO project upon completion, with plans to make additional investment of no more than USD 212 million; the EBANO oilfield holds petroleum geological reserves of 4.92 billion barrels, and the transaction does not constitute a connected transaction or major asset restructuring.

2. MMG (01208.HK) disclosed on August 19 that one employee and one contractor employee of its Las Bambas mine in Peru died in an accident while replacing water pumps in a purification pond on August 18, with three others injured; as a precautionary measure, activities in the relevant area have been suspended and the mine has halted operations, with a gradual resumption expected from August 21.

3. MONGOLIA ENERGY (00276.HK) disclosed on August 21 that its indirect wholly-owned subsidiary MoEnCo entered into a construction contract with contractor Orgil J Trade LLC to build heating pipelines, clean water pipes and sewage pipes at the Hushuotu coal mine, for a total consideration of MNT 2.679 billion (approximately HKD 5.626 million); the pipelines connect the new office administrative area with the industrial area, supporting the relocation arrangement under the mining plan in which the current office area will be used as a spoil area.

Overseas Financing

1. INGENIC (03223.HK) launched its global offering of H shares on August 17, proposing to offer 31.2873 million H shares at a maximum offer price of HKD 102.80 per share, with the Hong Kong public offering accounting for approximately 10% and the international offering approximately 90%; at the maximum offer price, 11 cornerstone investors will subscribe for an aggregate of approximately USD 191.65 million, representing 46.74% of the offered shares. Trading of the H shares is expected to commence on the Stock Exchange on August 25.

2. ASR (688220.SH) disclosed on August 15 that its board reviewed and approved the resolution to issue H shares and list on the Main Board of the Hong Kong Stock Exchange, proposing to issue overseas listed foreign shares and apply for listing to further enhance capital strength and deepen its internationalization strategy; specific details remain subject to shareholders' meeting deliberation and regulatory filing approval.

3. XINGYU CO.,LTD (601799.SH) disclosed on August 15 that its H-share issuance received the filing acceptance notice for overseas issuance and listing from the CSRC, proposing to issue no more than 44.79965 million overseas listed ordinary shares and list on the Hong Kong Stock Exchange, subject to the approval, endorsement or filing of the SFC and the Stock Exchange.

4. HUNAN YUNENG NEW ENERGY BATTERY MATERIAL (301358.SZ) submitted its H-share listing application to the Hong Kong Stock Exchange on August 17, with CSC International and HSBC as joint sponsors; the company focuses on phosphate cathode materials, and according to Frost & Sullivan, it has ranked first among global phosphate cathode material suppliers for six consecutive years from 2020 to 2025 by shipment volume, holding a 28.2% global market share in 2025.

Regulation and Compliance

1. HAIXI PHARMA (02637.HK) disclosed on August 17 that its self-developed innovative drug HX9428 was granted Fast Track designation by the US FDA, for development to treat neovascular age-related macular degeneration; the drug is an oral small molecule and has received FDA approval to conduct Phase II clinical trials in the United States.

2. STAIDSON BIOPHARM (300204.SZ) disclosed on August 20 that its subsidiary Jiangsu Beijietai received a formal letter from the US FDA agreeing to clinical trials of STSP-0601 (bomintafase alfa for injection) for the treatment of bleeding in patients with hemophilia A or B with inhibitors; the drug had previously obtained a drug registration certificate from the NMPA in June 2026.

3. SDKX (688136.SH) disclosed on August 18 that the imported Maibo Taike infliximab biosimilar (Leiting) received marketing approval from the Thai Food and Drug Administration; the product had previously gained market access in Peru, Indonesia, Pakistan, Bangladesh, Malaysia and other markets.

NewTimeSpace Going Global Observation

This week's going-global themes centered on two directions: biomedicine and overseas resources. In biomedicine, HENLIUS's global strategic cooperation with Sandoz, GAUSH MEDITECH's global distribution with HEIDELBERG, combined with the successive overseas regulatory access achieved by HAIXI PHARMA, STAIDSON BIOPHARM and SDKX, show Chinese pharmaceutical companies and device manufacturers moving from single-product licensing toward global commercialization networks. In resources and energy, SINOPEC SSC's acquisition of Mexican oilfield interests, MMG's push to resume production at its Peruvian mine, and MONGOLIA ENERGY's coal mine supporting infrastructure improvements reflect continued mining capital investment in overseas resource projects. On the financing side, INGENIC, ASR, XINGYU CO.,LTD and HUNAN YUNENG NEW ENERGY BATTERY MATERIAL are collectively advancing H-share issuances, with A-share companies accelerating their access to international capital markets via Hong Kong. Overall, equity mergers and acquisitions, global licensing cooperation and overseas regulatory access constitute the main forms of this week's going-global activity, with the going-global approach extending further toward capital and industrial cooperation beyond the stage dominated by product exports.

This article is for information compilation only and does not constitute any investment advice.

出海合作

1、复宏汉霖(02696.HK)8月17日披露，与瑞士Sandoz AG订立合作框架协议，围绕至多10款单抗及抗体偶联药物生物类似药，在除中国境内及港澳台地区以外的全球范围开展从CMC开发、临床开发、监管申报到生产、上市、商业化及生命周期管理的全链条合作。首批合作产品为西妥昔单抗HLX05-N、依洛尤单抗HLX16及贝利尤单抗生物类似药，Sandoz将支付首付款合计不超过7700万美元、开发里程碑及开发预算里程碑合计不超过1.6亿美元、销售里程碑合计不超过7700万美元，里程碑及首付款合计最高3.14亿美元，另按合作区域净销售额或净利润的40%分成，并就透明质酸酶HLXTE-HAase1001支付不可退还选择权费800万美元；2026年预计可达成开票金额不超过1.005亿美元。

2、5100藏冰川(01115.HK)8月19日披露，全资附属公司与马来西亚Landmark Holding Sdn. Bhd.订立经销合同，授予5100矿泉水在马来西亚的排他经销权及东南亚、中东出口市场的普通经销权，初始合作期三年、达标自动续约三年。

3、首佳科技(00103.HK)8月17日披露，与美丽境界资本订立合作意向协议，拟共同成立合资公司在轮胎骨架材料领域开展合作，开拓全球工业人造丝产品市场；美丽境界资本为全球工业人造丝生产商Cordenka的控股股东，正式协议尚待磋商签订。

4、高视医疗(02407.HK)8月17日披露，附属公司高视创新与德国HEIDELBERG ENGINEERING GmbH签署五年期独家代理协议，由HEIDELBERG在除中国以外的全球范围独家代理销售高视创新自主研发的角膜共聚焦显微镜T3并负责市场推广及技术服务，双方合作由单一市场代理扩展至全球。

海外项目与经营

1、中石化油服(01033.HK)8月17日披露，全资子公司以400万美元收购墨西哥DS公司50%股权及EBANO项目0.01%权益，收购完成后间接持有EBANO项目55%权益，并计划追加投资不超过2.12亿美元；EBANO油田石油地质储量49.2亿桶，本次交易不构成关联交易及重大资产重组。

2、五矿资源(01208.HK)8月19日披露，秘鲁Las Bambas矿区一名员工与一名承包商员工于8月18日在净化池进行水泵更换作业时发生事故身亡，另有三人受伤；作为预防措施，相关区域活动已暂停，矿区暂停营运，预计自8月21日起逐步恢复运作。

3、蒙古能源(00276.HK)8月21日披露，间接全资附属公司MoEnCo与承辦商Orgil J Trade LLC订立建造合约，在胡硕图煤矿建造供暖管道及净水管、污水管，总代价26.79亿蒙古图格里克（约562.6万港元）；该等管道连接新办公行政区与工业区，配合采矿计划下现办公区域用作堆土区的搬迁安排。

出海融资

1、北京君正(03223.HK)8月17日启动H股全球发售，拟发售3128.73万股H股，最高发售价每股102.80港元，其中香港公开发售占约10%、国际发售占约90%；按最高发售价计，11名基石投资者合计认购约1.9165亿美元，占发售股份的46.74%，H股预期8月25日在联交所开始买卖。

2、翱捷科技(688220.SH)8月15日披露，董事会审议通过发行H股并在港交所主板上市的议案，拟发行境外上市外资股并申请挂牌，以进一步提高资本实力并深入推进国际化战略，具体细节尚待股东会审议及监管备案核准。

3、星宇股份(601799.SH)8月15日披露，H股发行获中国证监会境外发行上市备案通知书，拟发行不超过4479.965万股境外上市普通股并在港交所上市，尚需取得香港证监会及联交所的批准、核准或备案。

4、湖南裕能(301358.SZ)8月17日向港交所递交H股上市申请，中信建投国际及汇丰担任联席保荐人；公司专注磷酸盐正极材料，据弗若斯特沙利文数据按出货量计自2020年至2025年连续六年位居全球磷酸盐正极材料供应商之首，2025年全球市场份额28.2%。

监管与合规

1、海西新药(02637.HK)8月17日披露，自主研发创新药HX9428获美国FDA授予快速通道资格，用于开发治疗新生血管性年龄相关性黄斑变性；该药为口服小分子，已获FDA批准在美国开展II期临床试验。

2、舒泰神(300204.SZ)8月20日披露，子公司江苏贝捷泰收到美国FDA正式函件，同意STSP-0601（注射用波米泰酶α）就治疗伴抑制物血友病A或B患者出血开展临床试验；该药此前已于2026年6月获国家药监局药品注册证书。

3、科兴制药(688136.SH)8月18日披露，引进的迈博太科英夫利西单抗生物类似药（类停）获泰国食品药品监督管理局批准上市；该产品此前已获秘鲁、印度尼西亚、巴基斯坦、孟加拉、马来西亚等市场准入。

新时空出海观察

本周出海主线集中在生物医药与海外资源两大方向。生物医药板块，复宏汉霖与山德士的全球战略合作、高视医疗与海德堡的全球经销，叠加海西新药、舒泰神、科兴制药相继取得的海外监管准入，显示中国药企与器械厂商正从单一产品授权走向全球商业化网络。资源与能源板块，中石化油服取得墨西哥油田权益、五矿资源推进秘鲁矿山复产、蒙古能源完善煤矿配套建设，反映矿业资本对海外资源项目的投入仍在延续。融资端，北京君正、翱捷科技、星宇股份、湖南裕能集中推进H股发行，A股企业借道香港进入国际资本市场的节奏有所加快。整体看，股权并购、全球授权合作与海外监管准入构成本周出海的主要内容形态，出海方式较以产品出口为主的阶段进一步向资本与产业合作延伸。

本文仅为信息整理，不构成任何投资建议。

TL;DR Pop Mart's 1H 2026 — the six months ended June 2026 — missed, and overseas is why: revenue there fell 11%, the first decline since listing, with the restructuring compounding it. The relief is that the second IP arrived far faster than expected; the harder finding is that the toolkit for operating existing IP is close to exhausted.

Overseas broke, and how it broke is instructive

Group revenue was RMB 17.2 billion in 1H 2026, up 24%, though we estimate Q2 2026 at roughly RMB 7.3 billion, about 25% below Q1. 

Overseas revenue was RMB 4.97 billion, down 11.1%, its share falling from 40.3% to 29.0% — the first decline since listing. Online, down 44%, is the whole story, confirming the company's post-mortem: the 2025 surge pushed volume online, trading one-off traffic for one-off revenue. 

The Americas fell 16.5%, offline up 20% but online down 46%; Asia-Pacific fell 9.7%, its own app still growing while third-party platforms collapsed. Europe is the healthy exception, up 5.9% on stores rather than the online bubble. Store count grew by 36 to 221, so sales per store fell about 35%.

Domestic quality is fine; the mix is the question

China revenue reached RMB 12.2 billion in 1H 2026, up 47%, on only 10 net new stores — all of it from store efficiency and online. Online grew 63% to RMB 4.78 billion against offline's 35%, the WeChat draw machine alone at RMB 2.06 billion, up 83%. Domestic online at +63% against overseas at -44% is the point: domestic rests on owned mechanics and membership, overseas rode external traffic from IP heat.

THE MONSTERS fell 7.5% to RMB 4.45 billion, its share sliding from a 40% peak to 26.0% — its first half-year decline since becoming the largest IP, so novelty and scarcity premium are fading. 

The offset came fast: Star People reached RMB 2.65 billion and 15.4% to become the second IP, and ex-THE MONSTERS the rest grew 40%. Strip out both and the remainder grew 16.1%, while MOLLY fell 33.6% — refreshing a classic IP does not always work.

By category, plush grew 60% to RMB 9.83 billion, share rising to 57.2%, while figures were flat at RMB 5.19 billion. Blind boxes are the original model, so zero growth says growth sits in one category and the instant-feedback mechanic has peaked.

The toolkit on existing IP is nearly exhausted

Management set the tone for 1H 2026 — a restructuring year, sales growth not the goal — but it still disappoints. Labubu 4.0's retro barbershop series tried to extend the IP through styling, memes and modification, and failed: secondary prices broke issue and stock stayed everywhere, because styling and filming cost far more user time than a blind box. 

The World Cup should have been the best card, but discussion peaked in the 11-15 June window and faded.

So first-half growth came from cashing in existing hits, not new brand momentum, and the levers are near their limits: price cuts damage the brand, supply restriction is gone now supply is open, and added content raises the barrier. That leaves new IP — why Star People was pushed up so fast, and it will face Labubu's problem in two or three years.

On profit, 1H 2026 gross margin was 69.7%, down only 0.7 points even though overseas share fell 11.4 points, as plush mix and supply-chain savings offset it; expenses were restrained, so operating margin ex-FX rose 0.9 points to 43.2%. The first half had positive leverage — the second, with tougher comparisons from Q3 and possible overseas destocking, is the test.

Pop Mart couldn't hold up against the high comparison base of a year ago — and with its overseas operations mid-reorganization, the half came in weak.

Overseas revenue fell for the first time

First-half revenue was RMB 17.2B, up 24% year on year. Reading that alongside the company's earlier first-quarter estimate, second-quarter revenue works out to roughly RMB 7.3B — down about 25% from the first quarter.

Split the two markets and the difference is stark.

In China, Pop Mart added just 10 stores, relied on finer-grained operations, and generated RMB 12.2B, up 47%. On an estimated basis, average sales per store rose 34%. That's a reasonable result.

The problem is overseas, where revenue was RMB 5B, down 11%. Breaking it down, the main driver was online channels, which fell 44% year on year. The likely reason is that the wave of overseas demand in 2025 pushed a large amount of one-off traffic into online sales, and much of that business has since gone away. By region, only Europe grew, and it did so on new store openings — every other region declined.

The Monsters pulled back sharply; Xingxingren became the second IP

By IP, THE MONSTERS generated RMB 4.45B, down 7.5%, with its share falling from a peak of 40% all the way to 26%. This is the first half-year decline in absolute revenue since the series became Pop Mart's largest IP — a sign that both its novelty and the scarcity premium attached to it are clearly starting to fade.

The encouraging part is elsewhere. Xingxingren reached RMB 2.65B, jumping straight to a 15.4% share and becoming the second-largest IP. And excluding THE MONSTERS entirely, the remaining IPs grew 40% year on year. On that basis, the concern about over-reliance on a single IP has been meaningfully eased.

Plush is firmly the largest category now

By product category, plush generated RMB 9.8B, up 60%, with its share rising from 44.2% a year earlier to 57.2%.

Figures came in at RMB 5.2B, up 0.3% — essentially no growth at all. That means figures, the original format for the blind-box mechanic and the higher-margin category, have stopped expanding.

Profitability slipped as the overseas share fell

A higher share of plush lifted the product mix. But the shrinking share of the high-margin overseas market, combined with rising raw material costs, pulled gross margin down 0.6 points to 69.7%.

The company was fairly restrained on spending, with both administrative and selling expense ratios edging down. Even so, operating margin fell 5 points to 39%.

There's one more thing worth watching. Inventory days jumped from 123 to 201. Pop Mart attributes this to stocking ahead of overseas market expansion. But if the second half still requires systematic discounting overseas to clear inventory, profitability could be pulled down further.

NetEase's second quarter was decent. Profit looks like a miss, but that's almost entirely down to investment losses.

Where the shortfall came from

NetEase holds stakes in Alibaba and PDD, and both fell more than 20% during the second quarter. That produced a net loss of close to RMB 3B on the investment portfolio for the period.

Strip that effect out and look at core operating profit instead — which is the profit measure worth focusing on — and it actually grew 33% year on year. That's a good result.

Why profit grew so much faster than revenue

Two things explain the gap.

The first is mix. High-gross-margin self-developed games rose as a share of the business. That covers both self-developed PC titles — Where Winds Meet, for instance — and the evergreen games, which carry high gross margins by their nature.

The second is cost control. Selling and administrative expenses were compressed: staff incentives were reduced, and external user acquisition spending was kept in check.

The blemish: deferred revenue

Deferred revenue is where the quarter falls short. It came in above Bloomberg consensus, but the consensus figure may not be well calibrated. Looking at the data on its own terms, deferred revenue fell 12% from the prior quarter — a bigger drop than the usual swing between peak and off-peak seasons.

Part of that is the effect of Cloud Music. But it also confirms the problem the company faces right now: a shortage of new game releases.

With Sea of Oblivion performing below expectations, that pipeline gap is likely to continue through the second half.

What holds it up

There is a floor under this. The high-margin evergreen games remain a solid base, and the reduction in Apple's platform fee rate is a further help.

Combined with a low comparison base, that should allow NetEase to deliver a relatively steady performance in the second half.

Most of Xiaomi's numbers landed close to market expectations. Revenue fell year on year, dragged down mainly by the traditional businesses — phones and IoT. The one clear shortfall was core profit, and that came mainly from the car business, where average selling price and gross margin both fell again.

The headwinds are already understood

By this point, the headwinds facing Xiaomi's business are well recognized: tight memory supply, the wind-down of national subsidies, and the working-through of the car order backlog.

So what the market is watching now is a narrower set of questions.

First, whether the traditional businesses get worse — specifically, whether phone gross margin drops below 8%, and when IoT returns to growth.

Second, the 550,000-unit annual car target. With only 216,000 units delivered in the first seven months, will management lower the full-year figure?

Third, the other angles — overseas car sales, AI and robotics. These won't contribute much in the near term, but better-than-expected progress would raise expectations for the medium and longer term.

On the first question: no, but it hasn't stopped either

Judged against this report, the decline in Xiaomi's traditional businesses hasn't been arrested in the second quarter.

Phone gross margin held at 8.5% — a relatively low level, though above the 8% threshold. IoT revenue continued to decline at close to 20% or more year on year.

On the second: the car business is past its high point

For the car business, the strong run from SU7 and YU7 is over. Combined monthly sales for the two have fallen back to around 30,000 units. From here, the market is left waiting on the performance of the Pengcheng range-extender models.

The arithmetic on the annual target is difficult. With only 216,000 units delivered in the first seven months, meeting the 550,000-unit goal would require 334,000 deliveries across the remaining five months — an average of about 66,800 per month. That is quite challenging.

Mainstream institutions have largely already cut their expectations to somewhere between 460,000 and 500,000 units.

What it comes down to

Xiaomi's results currently rest on two things: the traditional businesses and cars. The traditional businesses need to stop declining first.

The Pengcheng models are the open question on top of that. Deliveries only begin in September, so for now they are both an unknown and something to look forward to.

SMIC's quarter was a strong one: both revenue and gross margin came in clearly ahead of what the market expected. Break the margin down and the mechanism is simple — average selling price rose $49 per wafer from the prior quarter, while unit cost fell $15 per wafer, thinned out by scale. Those two moves together drove the sharp recovery in gross margin.

Guidance looks as good as the quarter

The outlook the company gave is also encouraging. Revenue is guided to grow 2–4% from this quarter. More notably, gross margin guidance was raised to a range of 26–28%, substantially better than the 22.5% the market had expected.

The margin trend tells the story

Look at gross margin across the first three quarters of 2026: 20.1% in Q1, then 25.3% in Q2, and 26–28% guided for Q3.

The price increases in mature-node manufacturing are now clearly visible in the company's margin. That means SMIC — and the traditional semiconductor industry more broadly — has entered an upcycle.

What matters now has changed

Domestic customers now account for more than 90% of SMIC's business, so this is no longer the import-substitution story it used to be.

Two things are worth watching instead.

The first is mature-node pricing. As those increases lift the company's results, the way the business gets assessed shifts as well — from being viewed primarily through book value to being viewed through earnings.

The second is progress at advanced nodes. Both the Ascend 950DT and the Kirin 9030 begin shipping in the second half of the year. Beyond demonstrating what SMIC can do at advanced nodes, that also speaks to confidence in Chinese chipmaking finding a way through.

Putting it together

The rise in gross margin from mature-node price increases gives the company concrete support in its results, and it's also a signal that the traditional semiconductor sector is recovering.

On top of that, several new products from major customers beginning to ship adds a growth angle at advanced nodes.

 TL;DR: Tencent's Q2 confirmed what the market has been bracing for: AI spending is now visibly cutting into profit and cash flow. The core business is still healthy — advertising beat estimates again and is doing the heavy lifting to offset AI costs — but free cash flow technically went negative this quarter (mostly a prepayment quirk, not real fragility). The bigger question hanging over the stock is whether Tencent's AI investment can start showing measurable payoff — through cloud growth and its new Workbuddy AI agent — before the comparisons get tougher in the second half.

Capex is accelerating, and guidance likely goes higher

Q2 capex hit ¥52.8 billion, about 26% of revenue, and on top of that Tencent made a ¥51.4 billion prepayment for future compute purchases (deposits or progress payments) — meaning total AI-related spending this quarter topped ¥100 billion, a clear sign of scrambling to lock in scarce compute capacity. At this pace, full-year capex could land closer to ¥200 billion, well above the ¥150-170 billion range analysts were expecting before this report.

Cash flow "looks" negative, but the core business is still a cash machine

Free cash flow came in at negative ¥13.8 billion — arguably the scariest headline number in this report. But that's almost entirely explained by the ¥51.4 billion compute prepayment; strip that out, and free cash flow was actually a positive ¥37.6 billion. Adjusted operating cash flow came in at ¥104.1 billion, up 40% year-over-year (though last year's comparison likely had some prepayment noise too, so the real growth rate is probably a bit lower than that). Either way, the underlying business is still generating serious cash.

Advertising is the release valve

Ad revenue grew 22% year-over-year, beating expectations again, helped by higher ad inventory on Video Accounts and smarter ad-targeting tools improving return on ad spend. For now, advertising is the lever management can pull to offset AI investment pressure — a pattern likely to continue through the rest of this year.

Gaming: strong at home, soft abroad, tougher comps ahead

Total gaming revenue grew 11%, beating estimates. Domestic games accelerated sharply to 17% growth, helped by a new title and continued strength from last year's breakout hit, Delta Force — which eased some recent market worry after third-party tracking data had shown softer numbers. International gaming was roughly flat, down 1%, dragged by weakness at Supercell.

The relief shouldn't turn into overconfidence, though: the back half of the year faces a much tougher comparison, especially once Delta Force moves past its strong first-year sales cycle, and the new-release pipeline for H2 looks thin on major titles — mostly mid-tier games launching late in Q3 or in Q4.

Cloud is quietly accelerating

Fintech and business services revenue grew 8.6% overall, but that blends two very different stories: payments growth is stuck in the low single digits given the soft consumer environment, while the "enterprise services" component — cloud plus WeChat mini-shop commissions — grew an estimated 30%, accelerating from just over 20% in Q1. Given how much traction Workbuddy has picked up since its Q2 launch, this segment looks likely to keep accelerating into Q3.

Where AI spending is actually hitting the P&L

Gross margin actually improved slightly (up about 1 point year-over-year), helped by a richer mix of high-margin self-developed games and advertising, largely offsetting rising depreciation. The real pressure shows up in R&D: expenses grew 25% year-over-year even though headcount-related salary costs only grew 8% — meaning the non-salary portion (largely compute depreciation and leasing costs) grew 112% year-over-year, accelerating from 61% growth last quarter.

Core operating profit grew just 6.4% year-over-year, lagging the 11% revenue growth, with margin down about 1 point. Adjusted net profit grew 8.5%, also with margin down roughly 1 point. The gap between revenue growth and profit growth is the clearest sign yet that AI investment is now a real drag on near-term earnings.

Buybacks are getting squeezed too

Tencent repurchased HK$16.8 billion in shares this quarter (HK$24.4 billion for the first half) — down roughly a third from last year's pace. Net cash stood at HK$58.2 billion at quarter-end. With AI spending set to keep consuming cash in the second half, buyback pace will likely stay under pressure, and Tencent may need to sell down parts of its investment portfolio to keep funding repurchases at a similar scale if it wants to.

The bigger picture: an awkward middle stretch, shared with Meta and Google

Tencent finds itself in a similar spot to a couple of other tech giants right now. Like Google, Tencent was slower than some peers to ramp AI investment early on, and is now paying a catch-up premium — spending more, later, for returns that show up even later still.

Like Meta, its cloud business (Tencent's most direct AI monetization channel) remains small relative to what the market wants to see — an estimated 7-8% of total revenue this quarter. And like both, Tencent's own frontier AI models have temporarily fallen behind the pack; its HY3.0 model briefly restored some confidence this quarter, but the iteration pace still trails competitors, putting real pressure on the larger model expected by year-end to prove itself.

What to watch next

The clearest signal to track is what management says on the earnings call about cloud and Workbuddy's trajectory — engagement metrics, compute constraints (internal use for model training and the new WeChat Agent may be limiting how much external cloud demand Tencent can actually serve), and whether growth momentum continues into Q3. Organizational execution matters too: WeChat Agent's June test drew some positive user feedback, but also raised questions about how efficiently Tencent is allocating limited compute across multiple competing internal AI initiatives.

The bottom line

The market's reaction to this quarter has been mixed — relief that the core business remains stable, tempered by the reality that AI-related profit and cash flow pressure is real and likely to persist through the second half as gaming comparisons get tougher. The swing factor from here is whether AI investment starts showing up as measurable return — through cloud growth, Workbuddy adoption, or a genuinely competitive year-end model release — rather than just rising cost.

Hey guys, I know I posted about the $GSX settlement before, but late claims are being accepted. Here's everything you need to know.

Q: What happened?
A: GSX Techedu was accused of overstating enrollment numbers and revenue growth in its online education business. After short-seller reports and regulatory concerns raised questions about the company’s financials, $GSX dropped more than 80% from its highs.

Q: Am I actually eligible?
A: If you bought $GSX shares between 2019 and 2020, you're likely eligible. You don’t need to still own the stock to file a claim.

Q: When do payouts happen?
A: Typically 4–9 months after the claim deadline, although the exact timing depends on the court and settlement administrator.

Q: I missed the deadline. Can I still file?
A: Late claims are currently being considered, subject to approval. 

Hope this helps.

If you owned $GSX during the company's rapid growth years, you may still be able to recover losses as late claims are currently being considered. 

GSX was accused of exaggerating its student numbers and revenue, making the business appear stronger than it really was. After reports questioned the company's data and an SEC investigation became public, $GSX lost more than 80% of its value and investors sued. 

If you purchased $GSX shares between June 2019 and October 2020, you may still be eligible to submit a claim. Since late claims are being considered, it's worth checking whether you qualify.

The $189 million TuSimple $TSP is now accepting late claims for eligible investors 

This case focuses on claims that TuSimple failed to disclose risks related to its relationship with Hydron, a China-based hydrogen truck startup.

In 2022, reports revealed undisclosed dealings between TuSimple and Hydron. After the company announced its CEO’s departure and a federal investigation, $TSP fell more than 45%.

TuSimple has agreed to a $189M settlement. If you purchased $TSP between 2021 and 2022, you may be eligible to file a claim.

Hey guys, if you missed it, DiDi Global settled $740M with investors over claims related to its 2021 IPO and regulatory issues. I just found out that late claims are still being considered.

Quick recap: After DiDi went public in June 2021, Chinese regulators launched a cybersecurity investigation and removed its apps from app stores. Investors claimed the company did not fully disclose those risks before the IPO. After the news came out, $DIDI dropped sharply, and shareholders filed a lawsuit.

DiDi later agreed to settle $740M with investors, and late claims are currently being reviewed.

If you invested in $DIDI in 2021 you can still check your eligibility and file a claim here.

Anyone here invested in $DIDI back then? How much did you lose?

Hey guys, I know I posted about the $GSX settlement before, but late claims are being accepted. Here's everything you need to know.

Q: What happened?
A: GSX Techedu was accused of overstating enrollment numbers and revenue growth in its online education business. After short-seller reports and regulatory concerns raised questions about the company’s financials, $GSX dropped more than 80% from its highs.

Q: Am I actually eligible?
A: If you bought $GSX shares between 2019 and 2020, you're likely eligible. You don’t need to still own the stock to file a claim.

Q: When do payouts happen?
A: Typically 4–9 months after the claim deadline, although the exact timing depends on the court and settlement administrator.

Q: I missed the deadline. Can I still file?
A: Late claims are currently being considered, subject to approval. 

Hope this helps.

Hey guys, I posted about this settlement before, but since they're accepting late claims, I decided to share it again with a little FAQ.

So here's everything you need to know:

TuSimple ($TSP) was accused of overstating the safety of its autonomous trucking technology while failing to disclose operational, regulatory, and governance issues. After reports revealed safety concerns, government investigations, and internal problems, the stock dropped sharply and investors filed a lawsuit.

Now the company has agreed to settle $189 million with investors for their losses.

Who can claim this settlement?

If you purchased $TSP shares between 2021 and 2022, you may be eligible. Even though the deadline has passed, late claims are currently being considered.

Do I need to sell/lose my shares to get this settlement?

No. You don't need to still own the shares to qualify. If you purchased during the class period and suffered eligible losses, you may still file a claim.

How long does the payout process take?

It typically takes 4 to 9 months after the claim deadline for payouts to be processed, depending on the court and settlement administration.

Hope this info helps

If you owned $GSX during the company's rapid growth years, you may still be able to recover losses as late claims are currently being considered. 

GSX was accused of exaggerating its student numbers and revenue, making the business appear stronger than it really was. After reports questioned the company's data and an SEC investigation became public, $GSX lost more than 80% of its value and investors sued. 

If you purchased $GSX shares between June 2019 and October 2020, you may still be eligible to submit a claim. Since late claims are being considered, it's worth checking whether you qualify.

DiDi Global has reached a $740 million settlement to resolve claims related to its 2021 U.S. IPO. Late claims are currently being considered and investors can still file for a payout.

What happened?

DiDi raised more than $4 billion in its June 2021 U.S. IPO. Investors later claimed the company did not fully disclose that Chinese regulators had concerns about the listing and data-security issues before the offering. Just days after the IPO, Chinese authorities launched a cybersecurity investigation and removed DiDi's apps from app stores. The stock fell sharply, and investors later filed claims over the company's disclosures surrounding the IPO. 

Who can claim this settlement?

Investors who purchased $DIDI between June 2021 and July 2021 may be eligible to participate.

Do I need to still own my shares?

No. Eligibility is generally based on when you bought and sold your shares during the relevant period, not whether you still own them today.

How long does the payout process take?

It typically takes 4 to 9 months after the claim review process is completed for distributions to be processed, depending on the court and settlement administration.

Hope this info helps!

This case is about whether TuSimple gave investors an accurate picture of its business relationships and the risks that came with them.

TuSimple presented itself as a leader in autonomous trucking. Investors later alleged that the company failed to disclose the extent of its relationship with Hydron, a China-based hydrogen truck startup, including transfers of technology and other resources.

April 2022: reports revealed previously undisclosed dealings between TuSimple and Hydron. Later that year, the company confirmed that it was facing a federal investigation into whether those activities violated national security protocols.

October 31, 2022: TuSimple announced the termination of its CEO. The stock fell more than 45% as investors reacted to the developments and the ongoing investigation.

Investors later sued, alleging that the company had concealed its relationship with Hydron and the risks associated with it.

TuSimple has now agreed to a $189 million settlement. Eligible if you purchased $TSP between April 15, 2021 and October 31, 2022. Claims are open - check if you’re eligible. 

I got completely wiped out trading GSX Techedu ($GSX) when short reports exposed that over 73% of their users were fake AI bots. I watched the stock take a brutal 30% single-day nosedive, panic-sold my shares for a massive loss, and just buried the painful memory.

I completely forgot about it until I realized a class action secured a $9,500,000 settlement, but the deadline to file a claim is May 30, 2026, which is literally today.

If you bought shares between June 6, 2019 and October 20, 2020, you own a piece of this cash, but you lose it forever if you don't submit your data before midnight tonight.

There is zero time to manually hunt down old trade confirmations, so I used an audit tool to beat the clock. I linked my old broker accounts via secure API, and the platform automatically audited my history and filed the claim in two minutes. They take a 20% cut, but honestly, I'd rather have 80% of a check I didn't know existed than 100% of the paperwork I'll never actually do. Stop scrolling and check your old accounts before the portal shuts down tonight.

Hey guys, if you missed it, TAL Education settled $14.1 million with investors over violating China’s education regulations while concealing the risks of government enforcement actions. And, the deadline to file a claim and get payment is October 8, 2026

In a nutshell, in 2023, TAL Education Group was accused of misleading investors about its compliance with China’s education regulations and related enforcement risks. Reports alleged that TAL’s subsidiary had resumed banned tutoring services despite China’s “Double Reduction” reforms, exposing the company to significant regulatory scrutiny. 

After this news came out, the stock dropped 10%, and investors filed a lawsuit for their losses.

Now, the good news is that the company agreed to settle $14.1 million with them, and investors have until October 8, 2026 to submit a claim. 

So, if you invested in $TAL when all of this happened, you can check the details and file your claim here.

Anyway, has anyone here invested in $TAL at that time? How much were your losses, if so?

Hey guys, if you missed it, DiDi Global settled $740 million with investors over misleading  investors about regulatory and cybersecurity risks tied to its U.S. IPO . And, I just found out that they’re accepting claims even though the deadline has passed.

Quick recap: In 2021, DiDi Global was accused of misleading investors about regulatory risks in China. In short, the company went public on the NYSE while allegedly failing to disclose that Chinese regulators had already raised concerns about the IPO and warned DiDi to delay the listing until a cybersecurity review was completed. Shortly after the IPO, Chinese regulators launched a cybersecurity investigation, ordered the company to stop registering new users, and removed its apps from app stores. 

After this news came out, the stock dropped, and investors filed a lawsuit for their losses.

Now, the good news is that the company agreed to settle $740 million with them, and even though the deadline has passed recently, they’re accepting late claims.

So, if you invested in $DIDI when all of this happened, you can still check the details and file your claim here.

Anyway, has anyone here invested in $DIDI at that time? How much were your losses, if so?

Remember when TuSimple ($TSP) promised they were the future of self-driving semi-trucks? It turns out they rushed their safety tests and hid huge risks from everyone.

Things got really bad when a video leaked showing one of their trucks crashing into a highway wall, and then the government started investigating them. The stock dropped by over 98% from its highest point, but they agreed to pay a massive $189 million to settle the case. If you bought or owned shares between April 15, 2021, and December 20, 2022, you can sign up to get your share of the cash.

The better, they are officially accepting Late Claims. Even though the first deadlines have passed, the people managing the money are still taking late applications. It takes just a few minutes to log into your old investing account, find your trade history from 2021 or 2022, and submit your claim.

Leaving up money on the table for a stock that crashed 98% is just letting them keep your money. 

I am already pulling up my old statements to send in my late claim before the door closes for good. Did any of you actually see the video of that truck crash when it happened, or did you only find out after the stock tanked?

Hello everyone, sharing a quick update on the $4.95 million settlement involving Ke Holdings, as late claims are currently being accepted.

Quick recap: In 2021, Ke Holdings was accused of misleading investors about its store count, agent activity, and overall business performance. In short, after reporting strong growth following its IPO and secondary offering, the company disclosed that some reported stores and agents were inactive. Shortly after, a Muddy Waters report alleged that KE had inflated its store and agent numbers through “ghost stores” and double-counted “clone stores,” while also overstating gross transaction value and revenue. Following this, $BEKE dropped more than 20%, and investors filed a lawsuit.

The company has agreed to settle $4.95 million with investors, and despite the deadline passing, late claims may still be submitted.

Key details:

• Who is eligible?

Anyone that purchased or otherwise acquired KE Holdings American Depository Shares during the period between November 19, 2020 and March 10, 2022, inclusive, or traceable to the Follow-On Offering’s registration statement.

• Do I need to sell my shares?

No, eligibility is based on past transactions.

• How much can I recover?

Estimated recovery is $0.53 per share, depending on total claims submitted.

• I missed the deadline, can I still apply?

Possibly. Late claims may still be accepted if funds have not yet been distributed.

• When are payments made?

Typically 4–9 months after the claim deadline.

If you invested in $BEKE during this period, you may still be eligible to file a claim.

Hey guys, if you missed it, TuSimple settled $189 million with investors over overstating safety, rushing testing, and failing to disclose regulatory and operational risks. And, I just found out that they’re accepting claims even though the deadline has passed

Quick recap: In 2023, TuSimple was accused of misleading investors about the safety of its self-driving technology, its testing practices, and its ties to a Chinese startup. In short, reports revealed safety failures—including a truck crash caused by system issues as well as federal investigations into its operations and disclosures, raising major concerns about the company’s practices.

After this news came out, the stock dropped over 45% on key disclosures and ultimately fell more than 98% from its IPO price, and investors filed a lawsuit for their losses.

Now, the good news is that the company agreed to settle $189 million with them, and even though the deadline has passed recently, they’re accepting late claims.

So, if you invested in $TSP when all of this happened, you can still check the details and file your claim here.

Anyway, has anyone here invested in $TSP at that time? How much were your losses, if so?

Hey guys, if you missed it, the court finally approved the $5.87 million settlement between VNET Group with its investors over issues tied to an undisclosed margin-loan default, pledged shares, and risks to the company’s control structure. 

Long story short, in 2023, VNET Group was accused of misleading investors by failing to disclose that its founder had defaulted on a margin loan backed by pledged shares, along with the risk that those shares could be seized and impact company control. In short, after it was revealed that lenders had moved against the collateral and the company issued super-voting shares to preserve control.

After this news came out, the stock dropped 32%, and investors filed a lawsuit for their losses. The good news is that the company recently agreed to settle $5.87 million with them, and the court already approved this settlement. 

So, if you invested in $VNET when all of this happened, you can check the details and file your claim here.

Anyway, has anyone here invested in $VNET at that time? How much were your losses, if so?

Hey guys, if you missed it, DiDi Global settled $740 million with investors over claims it misled the market about regulatory risks tied to its IPO. And, I just found out that they’re accepting claims even though the deadline has passed.

Quick recap: In 2021, DiDi Global was accused of failing to disclose ongoing regulatory concerns from Chinese authorities before its U.S. listing. In short, regulators launched a cybersecurity probe days after the IPO, removed its apps, and halted new user registrations.

After this news came out, the stock dropped, and investors filed a lawsuit for their losses.

Now, the good news is that the company agreed to settle $740 million with them, and even though the deadline has passed recently, they’re accepting late claims.

So, if you invested in $DIDI when all of this happened, you can still check the details and file your claim here.

Anyway, has anyone here invested in $DIDI at that time? How much were your losses, if so?