Quhuo revenues increased by 12.6% from RMB348.7 million in the three months ended March 31, 2019 to RMB392.6 million (US$56.4 million) in the three months ended March 31, 2020, primarily due to the increase in revenues generated from our on-demand food delivery solutions as a result of their continued market penetration and expansion, partially offset by the impact of the recent COVID-19 pandemic.

Revenues from on-demand food delivery solutions increased by 13.4% from RMB343.2 million in the three months ended March 31, 2019 to RMB389.3 million (US$55.9 million) in the three months ended March 31, 2020.

The increase was primarily driven by the increase in the average monthly delivery orders fulfilled by delivery riders on the platform from approximately 13.9 million in the three months ended March 31, 2019 to approximately 16.9 million in the three months ended March 31, 2020.

Revenues from shared-bike maintenance solutions decreased by 48.9% from RMB4.3 million in the three months ended March 31, 2019 to RMB2.2 million (US$0.3 million) in the three months ended March 31, 2020.

Revenues from ride-hailing solutions decreased by 26.5% from RMB1.2 million in the three months ended March 31, 2019 to RMB0.9 million (US$0.1 million) in the three months ended March 31, 2020.

Revenues from housekeeping solutions and other services were nil and RMB0.2 million (US$36,000) in the three months ended March 31, 2019 and 2020, respectively.

Quhuo’s gross profit decreased by 52.4% from RMB23.3 million in Q1 2019 to RMB11.1 million (US$1.6 million) in Q1 2020. The gross profit margin decreased from 6.7%.

The operating loss decreased by 61.0% from RMB49.0 million in Q1 2019 to RMB19.1 million (US$2.7 million) in Q1 2020. Their net loss decreased by 53.5% from RMB46.4 million to RMB21.6 million (US$3.1 million) in Q1 2020.

Meituan in Q1 2020; total revenues down 12.6%

The total paying users of Momo’s live video service and value-added service, without double counting the overlap and including 4.2 million paying users of another app it acquired earlier Tantan, were 12.8 million for the first quarter of 2020, compared to 14.0 million for Q1 2019, which included 5.0 million paying users of Tantan.

Momo Financial Results in Q1 2020

Total net revenues were RMB3,594.1 million (US$507.6 million) in Q1 2020, a decrease of 3.5% from RMB3,722.9 million in Q1 2019.

Live video service revenues were RMB2,332.0 million (US$329.3 million) in Q1 2020, a decrease of 13% from RMB2,689.4 million during the same period of 2019, as a result of the impact of COVID-19 adversely affecting the sentiment of its paying users, especially among the top of the pyramid paying users.

Total value-added service revenues, mainly including virtual gift revenues and membership subscription revenues, were RMB1,175.8 million (US$166.0 million) in Q1 2020, an increase of 30% from RMB903.8 million in Q1 2019.

The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more functions launched and more paying scenarios introduced to enhance the social experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB57.2 million (US$8.1 million) in Q1 2020, a decrease of 29% from RMB80.7 million during the same period of 2019. The decrease in mobile marketing revenues was primarily caused by the decreased demand from its advertising and marketing customers as well as its strategy to underweight the line in terms of resource allocation.

Mobile games revenues were RMB12.7 million (US$1.8 million) in Q1 2020, a decrease of 67% from RMB39.0 million in Q1 2019. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Net revenues from Momo segment decreased from RMB3,419.2 million in Q1 2019 to RMB3,202.1 million (US$452.2 million) in Q1 2020, primarily driven by the decrease in net revenues from live video service, partially offset by the increase in net revenues from value-added service.

Net revenues from Tantan segment increased from RMB295.3 million in Q1 2019 to RMB381.7 million (US$53.9 million) in Q1 2020, which was mainly due to the increase in the average revenues per paying user resulting from more features launched.

Cost and expenses

Cost and expenses were RMB3,026.1 million (US$427.4 million) in Q1 2020, a decrease of 10% from RMB3,349.4 million in Q1 2019.

The decrease was primarily attributable to:

• a decrease in share-based compensation expenses due to the related expense from the options granted to Tantan’s founders amount of RMB466.9 million as the related share options vested in Q1 2019 when the necessary performance conditions were satisfied;
• a decrease in revenue sharing with broadcasters related to its live video service. The decrease was partially offset by an increase in marketing and promotional expenses to attract users on Momo and Tantan.

Non-GAAP cost and expenses (note 1) were RMB2,819.2 million (US$398.1 million) in Q1 2020, an increase of 4% from RMB2,719.2 million during the same period of 2019.

Income from operations

Income from operations was RMB594.1 million (US$83.9 million) in Q1 2020, compared to RMB384.4 million during the same period of 2019.

Income from operations of Momo segment was RMB770.3 million (US$108.8 million) in Q1 2020, decreasing from RMB998.6 million in Q1 2019. Loss from operations of Tantan segment was RMB171.9 million (US$24.3 million) in Q1 2020, compared to loss from operations of RMB604.6 million in Q1 2019.

Non-GAAP income from operations (note 1) was RMB801.0 million (US$113.1 million) in Q1 2020, compared to RMB1,014.7 million during the same period of 2019.

Non-GAAP income from operations of Momo segment was RMB903.1 million (US$127.5 million) in Q1 2020, decreasing from RMB1,098.9 million in Q1 2019. Non-GAAP loss from operations of Tantan segment was RMB100.4 million (US$14.2 million) in Q1 2020, compared to non-GAAP loss from operations of RMB77.1 million in Q1 2019.

Income tax expenses

Income tax expenses were RMB162.9 million (US$23.0 million) in Q1 2020, decreasing from RMB163.7 million in Q1 2019.

Net income

Net income was RMB537.7 million (US$75.9 million) in Q1 2020, compared to RMB286.6 million during the same period of 2019.

Net income from Momo segment was RMB707.1 million (US$99.9 million) in Q1 2020, decreasing from RMB893.9 million in Q1 2019. Net loss from Tantan segment was RMB165.1 million (US$23.3 million) in Q1 2020, compared to a net loss of RMB597.7 million in Q1 2019.

Non-GAAP net income (note 1) was RMB735.1 million (US$103.8 million) in Q1 2020, compared to RMB907.5 million during the same period of 2019.

Non-GAAP net income from Momo segment was RMB839.9 million (US$118.6 million) in Q1 2020, decreasing from RMB994.2 million in Q1 2019. Non-GAAP net loss of Tantan segment was RMB103.2 million (US$14.6 million) in Q1 2020, compared to non-GAAP net loss of RMB79.6 million in Q1 2019.

Net income attributable to Momo Inc. was RMB538.9 million (US$76.1 million) in Q1 2020, compared to RMB289.3 million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB736.3 million (US$104.0 million) in Q1 2020, compared to RMB910.3 million during the same period of 2019.

Diluted net income per ADS was RMB2.46 (US$0.35) in Q1 2020, compared to RMB1.36 in Q1 2019. Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47) in Q1 2020, compared to RMB4.15 in Q1 2019.

Cash and cash flow

As of March 31, 2020, Momo’s cash, cash equivalents and short-term deposits totaled RMB15,467.2 million (US$2,184.4 million), compared to RMB14,925.3 million as of December 31, 2019. Net cash provided by operating activities in Q1 2020 was RMB543.5 million (US$76.8 million), compared to RMB1,175.9 million in Q1 2019.

For the second quarter of 2020, Momo expects total net revenues to be between RMB3.8 billion to RMB3.9 billion, representing a decrease of 8.5% to 6.1% year over year.

The novel coronavirus outbreak has increased the demand for telecommuting and online education, which has led to an increase in demand for tablet computers. However, the factors such as lockdown, manpower, spare parts, logistics, and others have led to the difficulty in meeting the market demand from the factory capacity, and the mainstream brand products are in a shortage for a long time.

IDC believes that affected by the epidemic, telecommuting and online education will be further normalized in the future, and the demand for tablet computers will be significantly increased.

Affected by the epidemic, in the first quarter, the shipments of business tablet markets were significantly reduced, with only 620,000 units shipped, down 47.8% year on year.

Driven by the demand for online education of students, the performance of the consumer market is better than expected, but the production capacity still restricts the supply of products. The shipment volume is about 3.1 million units, down 24.6% year on year.

Huawei’s shipment volume ranks the first, about 1.5 million, with a year-on-year growth of 4.3%, accounting for 40.2% of the market share.

Apple’s followed closely, with 1.31 million units shipped, with a year-on-year drop of 42.5%, accounting for 35.1% of the market share.

Xiaomi’s third, with a year-on-year drop of 31.3%, accounting for 5.5% of the market share; Microsoft and Lenovo are in the fourth and fifth place with shipments of about 120,000 and 60,000 units respectively, with market shares of 3.2% and 1.7% respectively.

Read China’s tablet shipment in the latest quarter here.

Pinduoduo’s total revenues in Q1 2020 were 6,541.1 million yuan (US$923.8 million), an increase of 44% from 4,545.2 million yuan in Q1 2019.

Its average monthly active users in the quarter were 487.4 million, an increase of 68% from 289.7 million in Q1 2019.

The number of active buyers in the twelve-month period ended March 31, 2020 were 628.1 million, an increase of 42% from 443.3 million in the twelve-month period ended March 31, 2019.

Annual spending per active buyer in the twelve-month period ended March 31, 2020 was 1,842.4 yuan (US$260.2), an increase of 47% from 1,257.3 yuan in the twelve-month period ended March 31, 2019.

Pinduoduo was able to ship on average 50 million daily orders in March to meet its users’ needs.

Pinduoduo Financial Results in Q1 2020

Total revenues were 6,541.1 million yuan (US$923.8 million), an increase of 44% from 4,545.2 million yuan in Q1 2019. The increase was primarily due to an increase in revenues from online marketing services.

Revenues from online marketing services were 5,492.3 million yuan (US$775.7 million), an increase of 39% from 3,948.4 million yuan in Q1 2019.

Revenues from transaction services were 1,048.8 million yuan (US$148.1 million), an increase of 76% from 596.8 million yuan in Q1 2019.

Total costs of revenues were 1,830.2 million yuan (US$258.5 million), an increase of 110% from 873.3 million yuan in Q1 2019. The increase was mainly due to higher costs for cloud services, call center and merchant support services.

Total operating expenses were 9,108.0 million yuan (US$1,286.3 million), compared with 5,792.4 million yuan in Q1 2019.

Sales and marketing expenses were 7,296.6 million yuan (US$1,030.5 million), an increase of 49% from 4,889.3 million yuan in Q1 2019, mainly due to an increase in advertising expenses and promotion and coupon expenses.

General and administrative expenses were 338.3 million yuan (US$47.8 million), an increase of 43% from 236.1 million yuan in Q1 2019, primarily due to an increase in headcount.

Research and development expenses were 1,473.2 million yuan (US$208.0 million), an increase of 121% from 667.1 million yuan in Q1 2019. The increase was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel and an increase in R&D-related cloud services expenses.

Operating loss was 4,397.2 million yuan (US$621.0 million), compared with operating loss of 2,120.5 million in Q1 2019. Non-GAAP operating loss6was 3,587.9 million yuan (US$506.7 million), compared with operating loss of 1,621.9 million yuan in Q1 2019.

Net loss attributable to ordinary shareholders was 4,119.3 million yuan (US$581.8 million), compared with 1,877.7 million in Q1 2019. Non-GAAP net loss attributable to ordinary shareholders was 3,169.6 million yuan (US$447.6 million), compared with 1,379.1 million in Q1 2019.

Basic and diluted net loss per ADS were 3.54 yuan (US$0.50), compared with 1.64 in Q1 2019. Non-GAAP basic and diluted net loss per ADS were 2.73 yuan (US$0.39), compared with 1.20 in Q1 2019.

Net cash used in operating activities was 567.1 million yuan (US$80.1 million), compared with 1,543.3 million yuan in Q1 2019, primarily due to an increase in online marketing services revenues.

Cash, cash equivalents, restricted cash and short-term investments were 69.5 billion yuan (US$9.8 billion) as of March 31, 2020, compared with 68.6 billion yuan as of December 31, 2019.

Compare with JD.com Q1 highlights

The net income attributable to HUYA Inc. was RMB171.2 million (US$24.2 million) for Q1 2020, representing an increase of 169.8% YoY from RMB63.5 million.

Non-GAAP net income attributable to Huya was RMB263.4 million (US$37.2 million) for Q1 2020, representing an increase of 100.7% YoY from RMB131.3 million.

The average mobile MAUs of Huya Live in the first quarter of 2020 reached 74.7 million, an increase of 38.6% YoY from 53.9 million. The average MAUs of Huya Live reached 151.3 million, an increase of 22.2% YoY.

The total number of paying users of Huya Live in Q1 2020 reached 6.1 million, an increase of 13.0% YoY from 5.4 million.

Since Tencent became its largest shareholder in April 2020, they have been strengthening their collaboration, especially in live streaming content and capabilities.

Huya Financial Results in Q1 2020

Total net revenues for the first quarter of 2020 increased by 47.8% to RMB2,411.9 million (US$340.6 million), from RMB1,631.5 million for the same period of 2019.

Live streaming revenues increased by 46.5% to RMB2,274.5 million (US$321.2 million) for the first quarter of 2020, from RMB1,552.5 million for the same period of 2019, primarily due to the increase in average spending per paying user and the number of paying users on Huya Live.

The increase in average spending per paying user was primarily driven by the enhancement of content attractiveness and the improvement in user experience. The increase in the number of paying users was primarily driven by the Company’s user growth.

Advertising and other revenues increased by 74.0% to RMB137.5 million (US$19.4 million) for the first quarter of 2020, from RMB79.0 million for the same period of 2019, primarily driven by the rising demand from an increasing number of advertisers, the advertising distribution platform launched by the Company in the third quarter of 2019 and strengthened recognition of Huya’s brand name in China’s online advertising market.

Cost of revenues increased by 42.6% to RMB1,937.1 million (US$273.6 million) for the first quarter of 2020 from RMB1,358.1 million for the same period of 2019, primarily attributable to the increase in revenue-sharing fees and content costs, bandwidth costs and personnel-related costs.

Revenue sharing fees and content costs increased by 37.7% to RMB1,532.6 million (US$216.4 million) for the first quarter of 2020 from RMB1,113.1 million for the same period of 2019, primarily due to the increase in virtual item revenue sharing fees in relation to higher live streaming revenues, and continued spending in content creators and e-sports content in both domestic and overseas markets.

The year-over-year increase was partially offset by benefits from economies of scale.

Bandwidth costs increased by 42.1% to RMB240.1 million (US$33.9 million) for the first quarter of 2020 from RMB169.0 million for the same period of 2019, primarily due to an increase in bandwidth usage as a result of the Company’s larger user base and enhanced live streaming video quality, partially offset by improved efficiency in bandwidth utilization through continued technology enhancement efforts.

Gross profit increased by 73.7% to RMB474.8 million (US$67.1 million) for the first quarter of 2020 from RMB273.4 million for the same period of 2019. The gross margin increased to 19.7% for the first quarter of 2020 from 16.8% for the same period of 2019.

Research and development expenses increased by 73.3% to RMB156.1 million (US$22.0million) for the first quarter of 2020 from RMB90.0 million for the same period of 2019, mainly attributable to increased personnel-related expenses.

Sales and marketing expenses increased by 36.3% to RMB106.5 million (US$15.0 million) for the first quarter of 2020 from RMB78.2 million for the same period of 2019. The increase was primarily attributable to the increased marketing expenses associated with the promotions for the Company’s products and brand name in both domestic and overseas markets, as well as increased personnel-related expenses.

General and administrative expenses increased by 5.1% to RMB90.2 million (US$12.7 million) for the first quarter of 2020 from RMB85.8 million for the same period of 2019, mainly due to the increased personnel-related expenses.

Operating income increased by 372.5% to RMB133.3 million (US$18.8 million) for the first quarter of 2020 from RMB28.2 million for the same period of 2019. The operating margin increased to 5.5% for the first quarter of 2020 from 1.7% for the same period of 2019.

Non-GAAP operating income, which excludes share-based compensation expenses, increased by 136.5% to RMB227.2 million (US$32.1 million) for the first quarter of 2020 from RMB96.0 million for the same period of 2019. Non-GAAP operating margin increased to 9.4% for the first quarter of 2020 from 5.9% for the same period of 2019.

Income tax expenses increased by 98.0% to RMB37.6 million (US$5.3 million) for the first quarter of 2020 from RMB19.0 million for the same period of 2019.

Net income attributable to HUYA Inc. for the first quarter of 2020 increased by 169.8% to RMB171.2 million (US$24.2 million), from RMB63.5 million for the same period of 2019.

Non-GAAP net income attributable to HUYA Inc. for the first quarter of 2020, which excludes share-based compensation expenses, gain on fair value change of investments, and income tax effects on non-GAAP adjustments, increased by 100.7% to RMB263.4 million (US$37.2 million), from RMB131.3 million for the same period of 2019.

Diluted net income per American depositary share (“ADS”) was RMB0.73 (US$0.10) for the first quarter of 2020, compared with RMB0.29 for the same period of 2019. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP diluted net income per ADS was RMB1.12 (US$0.16) for the first quarter of 2020, compared with RMB0.59 for the same period of 2019.

As of March 31, 2020, the Company had cash and cash equivalents, short-term deposits and short-term investments of RMB10,316.7 million (US$1,457.0 million), compared with RMB6,329.1 million as of March 31, 2019.

Net cash provided by operating activities decreased to RMB135.1 million (US$19.1 million) for the first quarter of 2020, from RMB501.7 million for the same period of 2019. The decrease was primarily attributable to the increase of annual cash bonuses paid to its employees, the increase of fees paid to broadcasters and the increase of licensing fees paid for broadcasting e-sports tournaments.

For the second quarter of 2020, Huya currently expects total net revenues to be in the range of RMB2,600 million to RMB2,630 million, representing a year-over-year growth of between 29.3% and 30.8%.

Benefiting from the continued expansion in its global smartphone market share, the monthly active users (“MAU”) of MIUI increased to 330.7 million, an increase of 26.7% year-over-year.

As of March 31, 2020, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi IoT platform reached 252.0 million, an increase of 42.6% year-over-year.

Xiaomi AI assistant Xiao Ai had 70.5 million MAU in March 2020, an increase of 54.9% year-over-year.

Revenue from its internet services segment in Q1 2020 increased by 38.6% year-over-year to RMB5.9 billion, accounting for a record high of 11.9% of its total revenue. Revenue from overseas markets in Q1 2020 totaled RMB24.8 billion, an increase of 47.8% year-over-year, for the first time, accounting for half of its total revenue.

According to Canalys, Xiaomi smartphone shipments in Western Europe increased by 79.3% year-over-year and it attained the largest market share in Spain for the first time.

Xiaomi Smartphone

In Q1 2020, revenue from Xiaomi’s smartphone segment totaled RMB30.3 billion, an increase of 12.3% year-over-year. It shipped 29.2 million units of smartphones in Q1 2020, an increase of 4.7% year-over-year.

According to Canalys, in the first quarter of 2020, Xiaomi ranked 4th globally in terms of smartphone shipments, and Xiaomi’s market share rose to 11.1%. Xiaomi was one of only two of the top five smartphone companies worldwide to maintain year-over-year growth in shipments.

In February 2020, Xiaomi launched Mi 10 and Mi 10 Pro. Shipments of Mi 10 and Mi 10 Pro exceeded 1 million units two months after their launch, enabling the Xiaomi brand to further strengthen its position in the premium smartphone market.

Mi 10 and Mi 10 Pro were launched overseas in late March with prices starting at €799 and €999, respectively. Boosted by Xiaomi’s premium smartphone models, the average selling price (“ASP”) of Xiaomi’s smartphones increased by 7.2% year-over-year in Q1 2020.

The ASP of Xiaomi’s smartphones in mainland China and overseas markets increased by 18.7% and 13.7% year-over-year respectively.

In April 2020, Xiaomi launched Mi 10 Lite Zoom Edition to target the younger consumer segments. With prices starting at RMB2,099, it features a 50x periscope telephoto lens camera and other advanced technologies. Mi 10 Lite 5G was launched in March 2020 in overseas markets, with prices starting at €349.

The Redmi brand continued to introduce highly competitive products at different price points. In March 2020, Redmi launched its flagship K series Redmi K30 Pro and Redmi K30 Pro Zoom Edition, sporting premium features including the Snapdragon 865 processor, LPDDR5, and UFS 3.1, while also featuring a pop-up camera, allowing Xiaomi’s customers to enjoy a full flagship experience at a reasonable price.

On the back of the highly popular Redmi Note 8 series, the second best-selling smartphone model globally in Q1 2020 according to Canalys, Xiaomi launched Redmi Note 9S and Redmi Note 9 Pro in overseas markets, carrying on the ultimate price-performance value proposition of the Redmi brand.

In April 2020, Xiaomi released MIUI 12, the latest version of Xiaomi’s smartphone operating system. Equipped with Xiaomi’s proprietary Mi Light Cone Animation Framework, MIUI 12 offers remarkable animation and a stunning visualized user interface.

In addition, MIUI 12 has introduced a privacy and data protection framework, which enables users to have full visibility of sensitive data retrieval, take control over app permissions, and mask their identity information to remain incognito. MIUI 12 is the world’s first mobile operating system to pass the TÜV Rheinland “Enhanced Privacy Protection for Android Systems” test.

Xiaomi IoT

In Q1 2020, revenue from Xiaomi’s IoT and lifestyle products segment was RMB13.0 billion, increase of 7.8%. Xiaomi’s smart TV business continued to maintain its leading position in both mainland China and overseas markets.

In Q1 2020, despite the overall decline in TV shipments globally due to the pandemic, Xiaomi’s global shipments of smart TVs still increased by 3.0% year-over-year to 2.7 million units.

According to All View Cloud (“AVC”), in Q1 2020, Xiaomi’s TV shipments in mainland China ranked 1st for five consecutive quarters and its global TV shipments ranked among the top five.

In March 2020, Xiaomi launched Redmi Smart TV Max 98”, priced from RMB19,999 (about US$2,815), significantly lower than other ultra-large TVs, bringing high-end TVs to the mass market.

In Q1 2020, Xiaomi continued to expand Xiaomi’s IoT product portfolio and promote the interconnectivity of Xiaomi’s AIoT platform.

In February 2020, Xiaomi introduced Mi AIoT Router AX3600, a WiFi 6 enabled AIoT router, which greatly improves upstream and downstream network speeds, making Xiaomi the first brand in China to support WiFi 6 technology from terminals to routers.

In addition, Xiaomi also launched Mi 65W Fast Charger with GaN Tech, Redmi Smart Display 8” and Mi Bluetooth Speaker with Wireless Charging, all of which enjoyed widespread popularity.

The sales of Xiaomi’s routers increased by 124.0% year-over-year in Q1 2020 and according to AVC, ranked 2nd in mainland China in terms of online router shipments. Sales of Xiaomi’s Xiaomi TWS Earphones, Mi Band, Mi Electric Scooter and Mi Robot Vacuum Cleaner increased by 619.6%, 56.0%, 40.7% and 40.0% year-over-year, respectively.

According to Canalys, Xiaomi ranked 1st in terms of wearable band shipments and 3rd in terms of True Wireless Stereo (“TWS”) earbuds shipments globally in 2019. According to iResearch, Xiaomi also ranked 1st in terms of electric scooter shipments globally in 2019.

Xiaomi Internet Services

In Q1 2020, revenue from Xiaomi’s internet services segment reached RMB5.9 billion, representing an increase of 38.6% year-over-year, accounting for a record high of 11.9% of Xiaomi’s total revenue.

User activity and time spent on Xiaomi’s devices increased in Q1 2020. In March 2020, the MAU of MIUI increased by 26.7% year-over-year to 330.7 million, while the mainland China MAU of MIUI reached 111.5 million.

In Q1 2020, advertising revenue was RMB2.7 billion, an increase of 16.6% year-over-year.

In Q1 2020, online gaming revenue increased by 80.5% year-over-year to RMB1.5 billion, mainly due to the fast-growing online gaming market in mainland China and higher online gaming average revenue per user from Xiaomi’s premium smartphone users.

In Q1 2020, internet services revenue outside of advertising and gaming from mainland China smartphones, including those generated from the Youpin e-commerce platform, fintech business, TV internet services and overseas internet services, increased by 71.5% year-over-year and accounted for 38.1% of Xiaomi’s total internet services revenue.

Xiaomi’s Youpin e-commerce platform continued to broaden its offerings and provide uninterrupted services to customers. The number of new users increased significantly in Q1 2020, laying a strong foundation for further expansion.

In March 2020, MAU of Xiaomi’s smart TVs and Mi Box reached 30.4 million, representing an increase of 46.8% year-over-year. As of March 31, 2020, the number of paid subscribers increased by 53.7% year-over-year to 4.3 million.

In Q1 2020, the MAU of Mi Browser on Xiaomi smartphones in the aggregated overseas market ranked 1st among all browsers. These initiatives increased Xiaomi’s average revenue per user in the overseas market.

Introduction to Xiaomi’s e-commerce platform Youpin

Weibo’s average daily active users were 241 million in March 2020, a net addition of approximately 38 million users on year over year basis. WeChat MAU up 8% to 1.2 billion.

Weibo Financial Results in Q1 2020

For Q1 2020, Weibo’s total net revenues were $323.4 million, a decrease of 19% compared to $399.2 million for Q1 2019.

• Advertising and marketing revenues for Q1 2020 were $275.4 million, a decrease of 19% compared to $341.1 million for Q1 2019.
  • Advertising and marketing revenues from key accounts (“KAs”) and small & medium-sized enterprises (“SMEs”) were $247.9 million, a decrease of 24% compared to $324.5 million for Q1 2019.
• VAS revenues for Q1 2020 were $48.0 million, a decrease of 17% year-over-year compared to $58.0 million for Q1 2019, primarily due to the decrease of revenues from live streaming business and was partially offset by the increase of membership revenues

Costs and expenses for Q1 2020 totaled $265.4 million, compared to $276.1 million for Q1 2019. Non-GAAP costs and expenses were $249.3 million, compared to $262.4 million for Q1 2019.

Income from operations for Q1 2020 was $58.0 million, compared to $123.1 million for Q1 2019. Non-GAAP income from operations was $74.1 million, compared to $136.8 million for Q1 2019.

Non-operating income for Q1 2020 was $10.0 million, compared to $48.6 million for Q1 2019. Non-operating income for Q1 2020 mainly included

• a $12.9 million net interest and other income;
• a $2.9 million net loss on the sale of investments and fair value changes on investments, which is excluded under non-GAAP measures.

Income tax expenses were $15.9 million, compared to $21.1 million for Q1 2019. The decrease was primarily resulted from reduced earnings and was partially offset by the estimated increase of effective tax rate for China operations primarily due to the expiration of the preferential tax treatment of one of the Weibo’s PRC subsidiaries in 2020.

Net income attributable to Weibo for Q1 2020 was $52.1 million, compared to $150.4 million for Q1 2019. Diluted net income per share attributable to Weibo for Q1 2020 was $0.23, compared to $0.66 for Q1 2019.

Non-GAAP net income attributable to Weibo for Q1 2020 was $67.4 million, compared to $128.5 million for Q1 2019. Non-GAAP diluted net income per share attributable to Weibo for Q1 2020 was $0.30, compared to $0.56 for Q1 2019.

As of March 31, 2020, Weibo’s cash, cash equivalents, and short-term investments totaled $2.35 billion. for Q1 2020, cash provided by operating activities was $63.6 million, capital expenditures totaled $7.3 million, and depreciation and amortization expenses amounted to $6.8 million.

For the second quarter of 2020, Weibo estimates its net revenues to decrease by 7% to 12% year-over-year on a constant currency basis. This forecast reflects Weibo’s current and preliminary view, which is subject to change.

Xiaohongshu community trends 2020

The huge increase in GSX’s revenues was mainly driven by the growth in paid course enrollments for K-12 courses.

Cost of revenues rose 245.5% to RMB283.3 million from RMB82.0 million in Q1 2019. The increase was mainly due to the increase in compensation for instructors and tutors, learning materials, as well as the extra costs paid for supporting our services offered for free during the COVID-19 outbreak.

GSX’s gross profit increased by 442.1% to RMB1,014.3 million from RMB187.1 million in the first quarter of 2019. Gross profit margin increased to 78.2% from 69.5% in the same period of 2019, primarily as a result of economies of scale.

Non-GAAP gross profit increased 448.4% to RMB1,028.2 million from RMB187.5 million in the same period of 2019. Non-GAAP gross profit margin increased to 79.2% from 69.7% in the same period of 2019.

Operating expenses were RMB922.4 million, increasing from RMB144.4 million in the first quarter of 2019.

Selling expenses increased to RMB757.2 million from RMB99.5 million in the first quarter of 2019. The increase was primarily a result of higher marketing expenses to expand the user base and enhance our brands, an increase in compensation to sales and marketing staff, as well as free course promotional expenses to acquire traffic during the COVID-19 outbreak.

Research and development expenses increased by 227.0% to RMB99.4 million, from RMB30.4 million in the first quarter of 2019. The increase was primarily due to an increase in the number of course professionals and technology development personnel, as well as an increase in compensation for such staff.

General and administrative expenses increased to RMB65.8 million from RMB14.4 million in the first quarter of 2019. The increase in general and administrative expenses was mainly due to an increase in the number of general and administrative personnel and an increase in compensation paid to general and administrative staff.

Income from operations was RMB91.9 million, compared with RMB42.7 million in the first quarter of 2019. Non-GAAP income from operations increased to RMB134.7 million, from RMB46.5 million in the first quarter of 2019.

Aggregation of interest income and realized gains from investments this quarter, representing the income received from cash, cash equivalents, short-term and long-term investments, increased 1,045.5% to RMB12.6 million, from RMB1.1 million in the first quarter of 2019. This resulted from an increase of cash, cash equivalents, short-term and long-term investments.

Other income increased to RMB61.9 million, from RMB533 thousand in the first quarter of 2019. The increase was primarily due to the value-added tax exemption offered by the government, partially offset by the related cost, during the COVID-19 outbreak, which amounted to RMB53.2 million, as well as government subsidies of RMB8.2 million received in the first quarter of 2020.

Net income increased to RMB148.0 million, from RMB33.9 million in the first quarter of 2019.

Non-GAAP net income increased to RMB190.7 million, from RMB37.7 million in the first quarter of 2019.

Net operating cash inflow for the first quarter of 2020 was RMB117.7 million, an 82.2% increase from RMB64.6 million in the first quarter of 2019.

Basic and diluted net income per ADS were RMB0.62 and RMB0.59, respectively, in the first quarter of 2020.

Non-GAAP basic and diluted net income per ADS, were RMB0.80 and RMB0.76, respectively, in the first quarter of 2020.

As of March 31, 2020, GSX had 159,165,833 ordinary shares outstanding.

As of March 31, 2020, GSX had RMB565.2 million of cash and cash equivalents, RMB1,003.1 million of short-term investments and RMB1,169.0 million of long-term investments, compared with RMB74.0 million of cash and cash equivalents, RMB1,473.5 million of short-term investments and RMB1,188.3 million of long-term investments as of December 31, 2019.

The increasing of cash and cash equivalents is mainly due to the maturity of short-term wealth management investments in the first quarter of 2020.

As of March 31, 2020, ITS deferred revenue balance was RMB1,338.8 million, largely flat from RMB1,337.6 million as of December 31, 2019. Deferred revenue primarily consisted of tuition collected in advance.

GSX’s board of directors authorized a share repurchase program under which it may repurchase up to US$150 million of its shares, effective until May 6, 2022.

Kaplan Fox & Kilsheimer LLP is investigating claims on behalf of investors of GSX. A complaint has been filed against GSX on behalf of investors that purchased GSX securities.

On June 6, 2019, GSX conducted its initial public offering (“IPO”) by issuing 19.8 million ADSs at $10.50 per share.

According to the complaint, on February 25, 2020, Grizzly Research LLC (“Grizzly”) published a report highlighting multiple alleged issues with GSX’s business and financial operations (the “Grizzly Report”).

Specifically, the Grizzly Report alleged, among other issues, that GSX “has been drastically overstating its profitability in its US public filings, especially for 2018″; Grizzly “found multiple strong indications of past and current order ‘brushing,'” which are “essentially fake student enrollments to boost student count”; “many of GSX’s reported students do not actually exist”; and “[w]hile [GSX] touts its high-quality teacher recruitment mechanism, [Grizzly] found a sign-up website that was not functional, multiple allegations of GSX hiring teachers right out of college with no prior experience, and fabricated teachers profiles.”

Following the publication of the Grizzly Report, the price of GSX’s ADSs fell $1.33 per share, or 2.93%, to close at $44.09 per ADS on February 25, 2020.

Then, according to the complaint, on April 14, 2020, Citron Research published a report highlighting additional alleged issues with GSX’s business and financial operations (the “Citron Report”), including, among other issues, that GSX’s “2019 revenue was overstated by 70%,” that “sales revenues are largely exaggerated,” and that GSX’s “filings are riddled with suspicious transactions.”

Following the publication of the Citron Report, the price of GSX’s ADSs fell $0.20 per share, or 0.64%, to close at $31.20 per share on April 14, 2020, 31.3% lower that the closing price prior to the issuance of the Grizzly Report and the Citron Report.

Revenues from mobile gaming rose 37.6% QoQ to 55.4 billion yuan (US$7.80 bn), accounting for 75.6% of total gaming revenues in the Chinese market. Revenues from computer-based games fell 1.1% QoQ.

Domestic market revenues from Chinese game developers increased by 29.7% QoQ to 62.4 billion yuan while overseas market revenues rose 31.2% to US$3.8 billion. The US, Japan, and South Korea are the main revenue sources, accounting for 67.6% of total overseas revenues.

The number of gaming users in China grew to 654 million in Q1 2020, an addition of 2 million from Q4 2019. Female gaming users increased by 17.05% QoQ in Q1 2020 with 19.24 billion yuan revenues. E-sports gaming users grew by 8.31% with total revenues of 39.1 billion yuan in Q1 2020.

China per capita income down 3.9% in Q1 2020, expenditure down 12.5%

By industry, the value added of the primary industry was 1,018.6 billion yuan, down by 3.2%; that of the secondary industry was 7,363.8 billion yuan, down by 9.6%; and that of the tertiary industry was 12,268.0 billion yuan, down by 5.2%.

Overall Agricultural Production

In Q1 2020, the value added of agriculture (crop farming) grew by 3.5% year on year.

By the end of March, the sown area of grade Ⅰ and grade Ⅱ seedling of winter wheat accounted for 87.2% of the total, 3.5 percentage points higher than that of the same period last year.

In Q1 2020, the output of eggs grew by 4.3%, and that of milk grew by 4.6 percent. The output of pork, beef, mutton and poultry was 18.13 million tons. The pig production capacity continued to get recovered.

By the end of Q1 2020, 321.20 million pigs were registered in stock, up by 3.5% over the end of the Q4 2019, among which 33.81 million were breeding sows, up by 9.8%.

Industrial Production Dropped

In Q1 2020, the total value added of the industrial enterprises above the designated size went down by 8.4% year on year.

Specifically, in March, the total value added of the industrial enterprises above the designated size went down by 1.1% year on year, or 12.4 percentage points lower than the decline of the first two months, while the month-on-month growth was 32.13%, with the industrial output approaching the level of the same period last year.

An analysis by types of ownership showed that the value added of the state holding enterprises dropped by 6.0% year on year; that of share-holding enterprises down by 8.4 percent; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan down by 14.5 percent; and that of private enterprises down by 11.3 percent.

In terms of sector:

• the value added of mining went down by 1.7%
• manufacturing down by 10.2%
• the production and supply of electricity, thermal power, gas and water down by 5.2 percent.
• The output of natural gas, non-woven fabrics, chemical medicine materials, crude oil, ten kinds of nonferrous metal, ethylene and crude steel went up by 9.1%, 6.1%, 4.5%, 2.4%, 2.1%, 1.3% and 1.2% respectively.
• The output of automatic vending and ticket machines, electronic components, integrated circuits, urban rail vehicles, and solar cells went up by 35.3%, 16.2%, 16.0%, 13.1% and 3.4% respectively.

In March, the high-tech manufacturing went up by 8.9% year on year, among which, the manufacturing of computers, communication equipment, and other electronic equipment went up by 9.9 percent.

The output of industrial robots and power generation equipment went up by 12.9% and 20.0% respectively.

Service Production Dropped

In Q1 2020, the total value added of the tertiary industry dropped year on year, while that of the information transmission, software and information technology services and that of financial intermediation went up by 13.2% and 6.0% respectively.

In March, the Index of Services Production dropped by 9.1%, 3.9 percentage points lower than the decline of the first two months.

In the first two months, the business revenue of service enterprises above the designated size dropped by 12.2%, among which, that of internet and related services and that of software and information technology services went up by 10.1% and 0.7% respectively.

In March, the Business Activity Index for services was 51.8%, 21.7 percentage points higher than last month.

Specifically, the Business Activity Index for transportation, storage and post, retail trades and monetary and financial services was relatively high, reaching 59.3%, 60.6% and 62.9% respectively.

In terms of market expectation, the Business Activities Expectation Index for service was 56.8%, 17.1 percentage points higher than last month, showing greater confidence of enterprises for market development.

Investment Growth Slowed

In Q1 2020, the investment in fixed assets (excluding rural households) reached 8,414.5 billion yuan, down by 16.1% year on year, 8.4 percentage points lower than the decline of the first two months.

Specifically, the investment in infrastructure, manufacturing, and real estate development declined by 19.7%, 25.2%, and 7.7% respectively, 10.6 percentage points, 6.3 percentage points and 8.6 percentage points lower than the decline of the first two months.

The floor space of commercial buildings sold reached 219.78 million square meters, down by 26.3 percent; and the total sales of commercial buildings were 2,036.5 billion yuan, down by 24.7%, the decline of which was narrowed by 13.6 percentage points and 11.2 percentage points compared to that of the first two months respectively.

By industry, the investment in the primary industry went down by 13.8 percent; the secondary industry down by 21.9 percent; the tertiary industry down by 13.5 percent; and the private investment reached 4,780.4 billion yuan, down by 18.8 percent.

The decline was narrowed by 11.8 percentage points, 6.3 percentage points, 9.5 percentage points and 7.6 percentage points respectively compared to that of the first two months.

The investment in the high-tech industry declined by 12.1%, 4.0 percentage points lower than that of the total investment.

Of the total, the investment in high-tech manufacturing and high-tech services went down by 13.5% and 9.0% respectively. In terms of high-tech manufacturing, the investment in manufacturing of computer and office equipment grew by 3.2 percent.

In terms of high-tech services, the investment in e-commerce services went up by 39.6%, that in professional technical services up by 36.7%, and that in services for commercialization of research findings up by 17.4%.

The investment in social sectors went down by 8.8%, among which, the investment in health sector dropped by 0.9%, or 15.2 percentage points lower than the decline of the total investment.

Investment in the manufacturing of biological medicines and products and other anti-epidemic related industries maintained growth, and construction of key projects for epidemic prevention accelerated.

In March 2020, the investment in fixed assets (excluding rural households) grew by 6.05% month on month.

Imports and Exports of Goods Slowed Down

In Q1 2020, the total value of imports and exports of goods was 6,574.2 billion yuan, down by 6.4% year on year.

In March, the total value of imports and exports was 2,445.9 billion yuan, down by 0.8% year on year, a decline slowed by 8.7 percentage points compared to that of the first two months.

Of the total, the value of exports was 1,292.7 billion yuan, down by 3.5 percent; the value of imports was 1,153.2 billion yuan, up by 2.4%, with import of general trade growing by 4.0 percent.

In Q1 2020, the total value of exports was 3,336.3 billion yuan, down by 11.45%; the total value of imports was 3,238.0 billion yuan, down by 0.75%.

The trade balance was 98.3 billion yuan in surplus. The import and export of general trade accounted for 60.0% of the total value of the imports and exports, an increase of 0.4 percentage points compared with the same period last year.

In Q1 2020, the export delivery value of industrial enterprises above the designated size reached 2,408.2 billion yuan, down by 10.3% year on year, 8.8 percentage points lower than the decline of the first two months.

In March, the export delivery value of industrial enterprises above the designated size reached 1,030.7 billion yuan, up by 3.1 percent.

Growth of Consumer Price Declined

In Q1 2020, China CPI went up by 4.9% year on year. Check out details here.

In Q1 2020, the producer prices for industrial products went down by 0.6% year on year.

Specifically, the prices in March dropped by 1.5% year on year, 1.1 percentage points faster than the year-on-year decline in the first two months, or down by 1.0% month on month.

In Q1 2020, the purchasing prices for industrial producers went down by 0.8% year on year; specifically in March, the prices dropped by 1.6% year on year, or down by 1.1% month on month.

Surveyed Unemployment Rate in Urban Areas Dropped

In Q1 2020, the newly increased employed people in urban areas totaled 2.29 million according to NBS.

In March, the surveyed unemployment rate in urban areas was 5.9%, 0.3 percentage points lower than that of February.

Specifically, the surveyed unemployment rate of population aged from 25 to 59 was 5.4%, 0.5 percentage points lower than the surveyed unemployment rate in urban areas, 0.2 percentage points lower than that of last month.

The urban unemployment rate in 31 major cities was 5.7%, the same as the previous month. In March, the employees of enterprises worked averagely 44.8 hours per week, 4.6 hours more than last month. By the end of February, the number of rural migrant workers reached 122.51 million.

China per capita income down 3.9% in Q1 2020; and, retail sales down 19%.