Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>981 HK/1347 HK: Semiconductor export growth remained robust in July (+/+)</li>
<li>1211 HK/LI US/NIO US/1810 HK/XPEV US: 2024 week 31 EV makers started to bifurate .(/////////)</li>
<li>1810 HK: Xiaomi’s smartphone unit volume sales in Japan grow triple-digit y-o-y in 2Q24 (+)</li>
</ul>


981 HK/1347 HK: Semiconductor export growth remained robust in July (+/+)
1211 HK/LI US/NIO US/1810 HK/XPEV US: 2024 week 31 EV makers started to bifurate .(/////////)
1810 HK: Xiaomi’s smartphone unit volume sales in Japan grow triple-digit y-o-y in 2Q24 (+)


[Blue Lotus Daily]:981 HK/1347 HK/1211 HK/LI US/NIO US/1810 HK/XPEV US/TCOM US/ATAT US/LKNCY US

Podcast On the Business of Semiconductors, The Circuit

The Circuit

Podcast On the Business of Semiconductors

A Podcast On the Business of Semiconductors. With Jay Goldberg and Ben Bajarin

<ul><li>High level macro themes include challenges of semiconductors in China and broader consumer trends</li><li>Overall sentiment in China remains relatively positive despite concerns in the semiconductor industry</li><li>Huawei's comeback and success in the semiconductor market is contributing to increasing optimism in the industry, especially in the electronics sector</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

High level macro themes include challenges of semiconductors in China and broader consumer trendsOverall sentiment in China remains relatively positive despite concerns in the semiconductor industryHuawei's comeback and success in the semiconductor market is contributing to increasing optimism in the industry, especially in the electronics sectorThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

<ul>
<li>LKNCY US:Luckin Coffee's Moutai Flavored Latte is Gradually Being Phased Out (-)</li>
<li>1519 HK/ZTO US: Weekly parcel volume grew ~33% y-o-y (+)</li>
<li>981 HK/1810 HK/AAPL US/NVDA US: SMIC’s upcoming N+3 process to narrow performance with TSMC’s 5nm (+/-/-/-)</li>
</ul>


LKNCY US:Luckin Coffee's Moutai Flavored Latte is Gradually Being Phased Out (-)
1519 HK/ZTO US: Weekly parcel volume grew ~33% y-o-y (+)
981 HK/1810 HK/AAPL US/NVDA US: SMIC’s upcoming N+3 process to narrow performance with TSMC’s 5nm (+/-/-/-)


[Blue Lotus Daily]:LKNCY US/1519 HK/ZTO US/981 HK/1810 HK/AAPL US/NVDA US/BEKE US

<ul>
<li>1810 HK/AAPL: Xiaomi’s China unit volume grew 17% yoy in 2Q (+/-)</li>
<li>1810 HK: Xiaomi acquires more land to build another EV factory (+)</li>
<li>981 HK/1810 HK: SMIC’s upcoming “5nm” process to feature significant efficiency improvement (+/-)</li>
</ul>


1810 HK/AAPL: Xiaomi’s China unit volume grew 17% yoy in 2Q (+/-)
1810 HK: Xiaomi acquires more land to build another EV factory (+)
981 HK/1810 HK: SMIC’s upcoming “5nm” process to feature significant efficiency improvement (+/-)


[Blue Lotus Daily]:1810 HK/AAPL/981 HK/LKNCY US/BZ US/LI US/1211 HK

China New Economy Equity Analyst, Blue Lotus Research Institute

Robert McKay

China New Economy Equity Analyst

<ul>
<li>US semiconductor restrictions are limiting China's access to advanced AI accelerators, causing a widening gap in AI compute. The US will expand its lead over China to ~7x by 2025.</li>
<li>Although China has domestic alternatives, bottlenecks due to separate US restrictions on semiconductor equipment are hindering yields and capacity expansions, effectively limiting China’s capacity to train state-of-the-art AI models.</li>
<li>To maximize AI compute, Huawei will likely curtail smartphone semiconductors in favor of AI accelerators. We expect manufacturers offering mid-end Android devices like <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> to benefit first.</li>
</ul>


US semiconductor restrictions are limiting China's access to advanced AI accelerators, causing a widening gap in AI compute. The US will expand its lead over China to ~7x by 2025.
Although China has domestic alternatives, bottlenecks due to separate US restrictions on semiconductor equipment are hindering yields and capacity expansions, effectively limiting China’s capacity to train state-of-the-art AI models.
To maximize AI compute, Huawei will likely curtail smartphone semiconductors in favor of AI accelerators. We expect manufacturers offering mid-end Android devices like Xiaomi Corp (1810 HK) to benefit first.


Demand for AI Chips Might Cut Huawei's Smartphone Semiconductor Short

China

Semiconductor Manufacturing International Corporation operates a semiconductor foundry. The Company provides integrated circuit foundry and technology services including the testing, development, design, manufacturing, packaging, and sale of integrated circuits. Semiconductor Manufacturing International offers its products and services around the world.

Semiconductor Manufacturing International Corp (SMIC) (981 HK)

Semiconductor Manufacturing International Corp (SMIC)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Semiconductor Manufacturing International Corp (SMIC) (981 HK)

[Blue Lotus Daily]:981 HK/1347 HK/1211 HK/LI US/NIO US/1810 HK/XPEV US/TCOM US/ATAT US/LKNCY US

Semiconductor exports strong in July, EV makers diverge in 2024, Xiaomi's smartphone sales surge in Japan.Active Users on the Luckin Coffee App...

Blue Lotus Research Institute

Episode 77: Asia Semis Tour

The semiconductor industry in China is facing challenges in acquiring leading technology, but overall economic sentiment and optimism in the tech...

The Circuit

[Blue Lotus Daily]:LKNCY US/1519 HK/ZTO US/981 HK/1810 HK/AAPL US/NVDA US/BEKE US

Luckin Coffee is phasing out Moutai Flavored Latte, parcel volume is growing, and SMIC's new process will compete with TSMC's 5nm.

Blue Lotus Research Institute

[Blue Lotus Daily]:1810 HK/AAPL/981 HK/LKNCY US/BZ US/LI US/1211 HK

Xiaomi's China unit sees growth, acquires land for new EV factory, while SMIC's upcoming "5nm" process promises efficiency boost.

Blue Lotus Research Institute

Demand for AI Chips Might Cut Huawei's Smartphone Semiconductor Short

US AI accelerator and wafer equipment restrictions are widening the US/China AI compute gap. Expect Huawei to curtail smartphone IC in favor of AI...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily]:981 HK/1347 HK/1211 HK/LI US/NIO US/1810 HK/XPEV US/TCOM US/ATAT US/LKNCY US

​Semiconductor exports strong in July, EV makers diverge in 2024, Xiaomi's smartphone sales surge in Japan.Active Users on the Luckin Coffee App...

Blue Lotus Research Institute

Episode 77: Asia Semis Tour

The semiconductor industry in China is facing challenges in acquiring leading technology, but overall economic sentiment and optimism in the tech...

The Circuit

[Blue Lotus Daily]:LKNCY US/1519 HK/ZTO US/981 HK/1810 HK/AAPL US/NVDA US/BEKE US

​Luckin Coffee is phasing out Moutai Flavored Latte, parcel volume is growing, and SMIC's new process will compete with TSMC's 5nm.

Blue Lotus Research Institute

[Blue Lotus Daily]:1810 HK/AAPL/981 HK/LKNCY US/BZ US/LI US/1211 HK

​Xiaomi's China unit sees growth, acquires land for new EV factory, while SMIC's upcoming "5nm" process promises efficiency boost.

Blue Lotus Research Institute

Demand for AI Chips Might Cut Huawei's Smartphone Semiconductor Short

​US AI accelerator and wafer equipment restrictions are widening the US/China AI compute gap. Expect Huawei to curtail smartphone IC in favor of AI...

Blue Lotus Research Institute

Semiconductor exports strong in July, EV makers diverge in 2024, Xiaomi's smartphone sales surge in Japan.Active Users on the Luckin Coffee App...

Luckin Coffee is phasing out Moutai Flavored Latte, parcel volume is growing, and SMIC's new process will compete with TSMC's 5nm.

Xiaomi's China unit sees growth, acquires land for new EV factory, while SMIC's upcoming "5nm" process promises efficiency boost.

US AI accelerator and wafer equipment restrictions are widening the US/China AI compute gap. Expect Huawei to curtail smartphone IC in favor of AI...