Although wish is a US listed company, the majority( more than 90%) of seller on the platform are from China. We will tag it as a heavy China concentrated stock. And let's have a closer look at it. Wish is another kind of 'PDD', they generally focus on middle to low level customers who cares more about 'Xingjiabi'(性价比), which means to purchase the quality products by spending relatively small amounts of money. Overview Wish has a mission —to bring an affordable and entertaining mobile shopping experience to billions of consumers around the world. Founded in 2010, Wish have become one of the largest and fastest growing global ecommerce platforms, connecting more than 100 million monthly active users in over 100 countries to over 500,000 merchants offering approximately 150 million items. Their platform combines technology and data science capabilities, an innovative and discovery-based mobile shopping experience, a comprehensive suite of indispensable merchant services, and a massive scale of users, merchants, and items. This combination has allowed wish to become the most downloaded global shopping app for each of the last three years according to a report from Sensor Tower. Wish are revolutionizing mobile with a user experience that is mobile-first, discovery-based, deeply-personalized and entertaining. Over 90% of Their user activity and purchases occur on Their mobile app. Their data science capabilities allow them to mirror how consumers have shopped for decades in brick-and-mortar stores by offering a discovery-based shopping experience on a mobile device. Their highly-personalized product feed enables Their users to discover products they want to purchase by simply scrolling through Their mobile app and browsing. Over 70% of the sales on Their platform do not involve a search query and instead come from personalized browsing. Wish users engage with Their app in a similar manner to how they engage with social media; scrolling through image-rich, highly-engaging, and interactive content. To enhance user engagement, Wish incorporate fresh gamified features, rich user-generated content including photos, videos, and reviews, and a wide range of relevant products to make shopping more entertaining. Their differentiated user experience has driven superior engagement with Wish users spending on average over nine minutes per day on their platform during the twelves months ended September 30, 2020. Wish also built to empower merchants around the world. Wish define a merchant as of a particular date as a unique merchant account on Their platform. Today, most of Their merchants are based in China. Wish initially grew Their platform focusing on merchants in China, the world’s largest exporter of goods for the last decade,16 due to these merchants’ strength in selling quality products at competitive prices. Wish continue to expand Their merchant base around the world. The number of merchants on Their platform in North America, Europe, and Latin America has grown approximately 234% since 2019. In particular, the number of merchants on Their platform in the U.S. has grown approximately 268% since 2019. Through Their diversified and global merchant base, Wish are able to offer greater depth and breadth of categories and products. Wish give Their merchants immediate access to Their global base of over 100 million monthly active users and a comprehensive suite of indispensable services, including demand generation and engagement, user-generated content creation, data intelligence, promotional and logistics capabilities, and business operations support, all in a cost-efficient manner. Wish have experienced substantial growth since Their founding in 2010. Wish grew Their revenue from $1.1 billion in 2017 to $1.9 billion in 2019 at a compound annual growth rate of 31% and from $1.3 billion for the nine months ended September 30, 2019 to $1.7 billion for the nine months ended September 30, 2020, an increase of 32%. Their revenue is diversified and global. In 2019, 93% of Their revenue was from marketplace services, 84% of which was from core marketplace revenue and 16% of which was from Their native advertising tool, ProductBoost, and 7% was from logistics services. ProductBoost is an advertising feature by which Their merchants can promote their listings within user feeds. For the nine months ended September 30, 2020, 82% of Their revenue was from marketplace services, 90% of which was from core marketplace revenue and 10% of which was from ProductBoost, and 18% was from logistics services. In terms of geographic diversification by users, for the nine months ended September 30, 2020, 43% of Their core marketplace revenue came from Europe, 42% from North America, 5% from South America, and 10% from the rest of the world. Their growth has been highly capital efficient. Wish have been able to achieve this massive growth and scale by having net cumulative cash flow from operations of $16 million from January 1, 2017 to September 30, 2020, aided by Their positive cash float, where Wish receive an upfront payment from a user, and remit payment to a merchant a number of Weeks later. In 2019, Wish generated a net loss of $129 million and Adjusted EBITDA of $(127) million, compared to a net loss of $208 million and Adjusted EBITDA of $(211) million in 2018, and a net loss of $207 million and Adjusted EBITDA of $(135) million in 2017. For the nine months ended September 30, 2020, Wish generated a net loss of $176 million and Adjusted EBITDA of $(99) million, compared to a net loss of $5 million and Adjusted EBITDA of $(11) million for the nine months ended September 30, 2019. Market Opportunity Global ecommerce is a massive and growing market. In 2019, global ecommerce was a $3.4 trillion market expected to nearly double to reach $6.3 trillion by 2024. Excluding China, the global ecommerce market was $1.6 trillion in 2019 and is expected to grow to $2.7 trillion by 2024. Within ecommerce, mobile is the clear dominant force, comprising 63% of global ecommerce in 2019, and is expected to grow to 71% by 2024. While the market is large and rapidly growing, modern ecommerce has not evolved to fit the expectations and affordability needs of the global population. Billions of Value-Conscious Consumers Are Underserved Value-conscious consumers represent a large and growing portion of the global consumer population, and they have been historically underserved by traditional ecommerce. For this segment of the global population, price is often the single most important determinant when making a purchase. Forty-four percent of U.S. consumers and 85% of European consumers have a household income of less than $75,000,25 and we estimate that there are over 1 billion households with income of less than $75,000 around the world, excluding China and India. Additionally, in the emerging economies of Africa, the Middle East, Latin America, and Eastern Europe, where the average household income is approximately $18,000, affordability will be the key element for users shopping online for the first time. We believe that the next billion ecommerce customers will be these value-conscious consumers. This value-conscious population has significant and highly resilient buying power which can be evidenced by the success of discount retailers. While traditional brick-and-mortar retail continues to face challenges, discount retailers remain resilient as bargain-hunting consumers continue to shop at value-focused stores. Between 2019 and 2021, the number of variety store retailer locations in the U.S. is expected to increase.26 Despite their sizable presence, these discount retailers have achieved limited success in moving their low-price point business models online. Traditional Ecommerce Does Not Meet Evolving Consumer Behavior Discovery is a foundational aspect of the brick-and-mortar shopping experience. Shopping in store allows consumers to browse and discover new products that they want, driving many consumers to purchase items beyond their planned purchases. This type of navigational browsing often creates purchase intent for new products. A study conducted in 2019 by First Insight, a provider of data analytics for the retail industry, found that 89% of women and 78% of men who visit physical stores frequently add additional items to their cart beyond their identified need.27 However, the largest ecommerce companies in the world were created on desktop, and their consumer experiences are predominantly search-driven rather than discovery-based. When porting that search-driven experience to mobile, consumers can shop for what they know they need, but struggle to browse, engage, and discover new products. On average, people spend 3 hours per day28 on their mobile device, primarily on social and video mobile apps.29 As consumers spend more and more of their time on mobile, they expect visually rich, engaging, and personalized experiences. Mobile has become an effective platform for discovery in other verticals outside of ecommerce such as social media, gaming, music, and video, but we believe that online shopping has lagged in offering mobile discovery. Merchants Around the World Lack Access to Global Consumers Ecommerce represents a massive opportunity for global merchants, but they often struggle to access and serve global ecommerce consumers. IDC estimates that there are approximately 348 million SMBs around the world as of 2019, and the success of these businesses is imperative to local, national, and global economies. SMBs make up over 90% of all enterprises globally and employ over 50% of the global workforce.Despite their scale and economic power collectively, individual SMBs are often challenged, as evidenced by approximately 20% of U.S. SMBs failing in their first year and approximately 50% failing after five years in business, according to 2019 data. For merchants around the world to grow their businesses, the ability to reach and target consumers at scale is critical. Value Proposition to Wish Users •Affordable.  Price is the single most important determinant when making a purchase for a substantial portion of the global population, and we aim to serve the affordability needs of these consumers. According to our survey of 2,850 consumers in select countries, approximately 75% of those responding prioritize the price of an item over brand and delivery time. Additionally, 95% of the survey participants who shop on Wish stated that they find items on Wish to be at a discount to branded alternatives. The merchants on our platform offer primarily unbranded products that can be discounted in excess of 85% as compared to branded alternatives across a number of categories, such as wireless ear buds and air fryers. For example, based on our internal research, the average price of the top 20 wireless ear buds sold on Wish is approximately $20, compared to the online retail average price of a select set of recognized branded alternatives of approximately $165, and the average price of the top 20 air fryers sold on Wish is approximately $85, compared to approximately $173 on average for a select set of recognized branded alternatives.34 Wish have a number of policies which, in combination with robust user-generated content, promote higher quality merchants and products on our platform. This allows them to offer a vast selection of high-quality items at competitive prices, a value proposition that attracts more than 100 million monthly active users to their platform. •Accessible.  Making Wish open and accessible to everyone is core to their strategy. Within ecommerce, mobile is the clear dominant force, comprising 63% of global ecommerce in 2019, and is expected to grow to 71% by 2024.35 Wish was built to be mobile-first so any consumer around the world can easily access their shopping platform on a mobile device. They also do not have membership fees, understanding that millions of consumers are value-conscious and/or would not be able to afford such fees. •Everywhere. Since founded, they have continuously expanded global footprint, with the result that they have users in over 100 countries today. To better serve their global user base, they localize various features on their online platform and tailored our experience to each respective market through, for example, making it accessible in 40 different languages and providing country-specific payment methods. This localization improves the engagement of our large, diverse user base. In addition to connecting their users with online merchants, Wish started connecting users with local brick-and-mortar stores through Wish Local program. Wish Local allows users to shop online and also stop by almost 50,000 Wish Local partner stores to pick up products that they purchase through online platform. Users can support their local businesses through increased foot traffic, which drives additional sales. Wish Business & Financial Model Their business benefits from powerful network effects, fueled by Their data advantage and massive scale. As more users join Wish, attracted by Their affordable value proposition and shopping experience, they are able to increase revenue potential for Their merchants. As more merchants succeed on Wish, more merchants join the platform and grow their businesses with Wish, broadening Their product selection, which in turn improves user experience. By developing a strategy focused on users and merchants, they align user and merchant success with the success of Their financial model. The growth in users and merchants generates more data, further strengthens Their data advantage and creates an even better experience for everyone on Their platform, in turn attracting more users and high-quality merchants. Their model relies on cost-effectively adding new users, converting those users into buyers and improving engagement and monetization of those buyers on Wish over time as well as adding new merchants, delivering economic success for those merchants, and having those merchants use more of Their end-to-end platform. The following are key elements of Their financial model that drive Their growth: •Increase the scale and growth of Their user and buyer base. Attracting and engaging users have been Their key areas of focus since Their founding. They measure Their effectiveness in attracting and engaging users through metrics such as Their MAUs, which increased over 33% from the nine months ended September 30, 2019 and to the nine months ended September 30, 2020, as well as the average minutes spent per visit by user. These increases have primarily been driven by the growing popularity and recognition of Their brand and platform, the user preferences for Their differentiated mobile shopping experience, wide selection of attractively priced products, and the success of Their promotional and marketing campaigns. This growth has contributed to making Wish the most downloaded global shopping app for each of the last three years according to a report from Sensor Tower. As a result, They have experienced significant revenue growth in recent periods. They will need to continue to invest in Their marketing efforts to attract additional users and buyers and to enhance Their brand and drive user engagement, and over time They will need to do this cost-effectively in order to achieve profitability. •Invest in Their sales and marketing engine. They have made significant investments in Their data science which underpins all aspects of Their operations including marketing and user acquisition. By leveraging Their unique and scaled data set and algorithms, Their goal is to execute cost-effective and successful digital marketing strategies to acquire new users and re-engage existing users on the Wish platform. They consider Their user acquisition expertise a strong competitive advantage and have invested in this capability over time to continue to drive user and revenue growth. They will need to continue to invest in Their marketing efforts to attract new users and increase user engagement. •Increase the cumulative lifetime value of Their users. Their ability to successfully drive improvements in user engagement and monetization on the Wish platform will be an important driver in expanding the cumulative lifetime value of Their users and allow us to achieve profitability. They utilize data science to estimate lifetime value of users and accordingly adjust Their user acquisition strategies to maximize Their return on marketing investment. They also deploy dynamic pricing to drive effective monetization of Their user base. Dynamic pricing utilizes Their data to instantly adjust prices across products to optimize user conversion and has increased Their margins. •Continue to grow and diversify Their merchant base and product categories. As of September 30, 2020, They had over 500,000 merchants on Their platform. While most of Their merchants today are based in China and sell unbranded goods, They plan to continue to grow Their merchant base globally and diversify Their product categories. While They initially grew Their platform focusing on merchants in China due to their production strength, They have since started to diversify Their merchant base around the world; the number of merchants on Their platform in North America, Europe, and Latin America has grown approximately 234% since 2019. They believe the increase in the number and the diversity of merchants leads to more competitive pricing and broader product categories, which will in turn help us attract more users, generating powerful network effects. •Continue to innovate and expand Their platform. They generate revenue primarily from commissions earned on the sales by Their merchants on the Wish marketplace, as well as from fees from offering Their logistics platform to Their merchants. They aim to enhance the value of Their platform by broadening Their marketplace service offerings, expanding the size and engagement of Their user base, and improving data insights and services available to Their merchants across digital marketing, payments, logistics, user support, and operations. They believe that expanding Their platform will attract more merchants to Wish and drive Their revenue. In recent periods, Wish logistics and advertising offerings provided critical capabilities to Their merchants to improve their operations and sales, which has driven their success on Wish and in turn, their growth. They have been able to drive strong adoption of these merchant offerings and intend to continue to invest to increase this adoption. For example, approximately 30% of Their merchants have utilized ProductBoost in 2020 to date. This has enabled Their logistics and advertising to reach approximately $607 million and $196 million, respectively, on an annual run-rate basis based on the three months ended September 30, 2020. They aim to continue to expand Their platform so that They can grow and diversify Their future revenue streams. •Capital efficiency of our business model. Wish operate an asset-light business model and have achieved substantial revenue growth with limited capital requirements. Their business model enables us to avoid the costs, risks and capital requirements associated with sourcing merchandise or holding inventory. As a result, their growth has been highly capital efficient. Wish have been able to achieve this massive growth and scale by having net cumulative cash flow from operations of $16 million from January 1, 2017 to September 30, 2020, aided by positive cash float. Financial Profile Monthly Active Users Wish define MAUs as the number of unique users that visited the Wish platform, either on our mobile app, mobile web, or on a desktop, during the month.18 MAUs for a given reporting period equal the average of the MAUs for that period. An active user is identified by a unique email-address; a single person can have multiple user accounts via multiple email addresses. The change in MAUs in a reported period captures both the inflow of new users as well as the outflow of existing users who did not visit the platform in a given month. We view the number of MAUs as key driver of revenue growth as well as a key indicator of user engagement and awareness of Wish brand. Revenue Their revenue consists of marketplace and logistics revenue. Marketplace revenue: Wish provide a mix of marketplace services to merchants. Wish provide merchants access to their marketplace where merchants display and sell their products to users. Wish also provide ProductBoost services to help merchants promote their products within their marketplace. Marketplace revenue includes commission fees collected in connection with users purchases of the merchants’ products. The commission fees vary depending on factors such as users location, demand, product type, and dynamic pricing. Wish recognize revenue when a user’s order is processed and the related order information has been made available to the merchant. Commission fees are recognized net of estimated refunds and chargebacks. Marketplace revenue also includes ProductBoost fees for displaying a merchant’s selected products in preferential locations within their marketplace. Wish recognize revenue when the merchants’ selected products are displayed. Wish refer to their marketplace revenue, excluding ProductBoost revenue, as their core marketplace revenue. Logistics revenue: Their logistics offering for merchants, introduced in 2018, is designed for direct end-to-end single order shipment from a merchant’s location to the users. Logistics services include transportation and delivery of the merchant’s products to the users. Merchants are required to prepay for logistics services on a per order basis. Wish recognize revenue over time as the merchant simultaneously receives and consumes the logistics services benefit as the services are performed. Wish theme an output method of progress based on days in transit as it best depicts their progress toward complete satisfaction of the performance obligation. Revenue increased $422 million, or 32%, to $1,747 million for the nine months ended September 30, 2020 as compared to $1,325 million for the nine months ended September 30, 2019. This increase was attributable to both increased marketplace and logistics revenue. Marketplace revenue increased $180 million to $1,438 million for the nine months ended September 30, 2020, as compared to $1,258 million for the nine months ended September 30, 2019. This increase was due to improved monetization of buyers through increased dynamic pricing, and to a lesser extent, an increase in transaction volume. This increase was partially offset by a decrease in merchant utilization of ProductBoost service, as the result of economic uncertainties related to the global pandemic. Logistics revenue increased $242 million to $309 million for the nine months ended September 30, 2020, as compared to $67 million for the nine months ended September 30, 2019. This increase was primarily due to the continued expansion of the logistics offerings around the world and significant expansion of A+ program to additional countries. Most notably, Wish launched A+ program in the United States in July 2020. Cost of Revenue and Operating Expenses Cost of revenue. Cost of revenue includes colocation and data center charges, interchange and other fees for credit card processing services, fraud and chargeback prevention service charges, costs of refunds and chargebacks made to Their users that Wish are not able to collect from Their merchants, depreciation and amortization of property and equipment, shipping charges, tracking costs, warehouse fees, and employee-related costs, including salaries, benefits, and stock-based compensation expense for Their infrastructure, merchant support, and logistics personnel. Cost of revenue also includes an allocation of general IT and facilities overhead expenses. Sales and marketing. Their sales and marketing expenses are primarily driven by the cost of acquiring and engaging users by targeting social media and search engine digital advertisements, outsourced user support services, sponsorships and local marketing campaigns, and employee-related costs, including salaries, benefits, and stock-based compensation, for Their employees involved in marketing, user support, and business development functions. Sales and marketing spend also includes an allocation of general IT and facilities overhead expenses as well as business development expenses for attracting merchants and conducting ongoing merchant education. Wish expect Their sales and marketing expenses to decrease as a percentage of Their revenue over the long term, although Their expenses may fluctuate from period to period due to the timing of expenses related to Their sales and marketing campaigns. Product development. Their product development expenses consist primarily of employee-related costs, including salaries, benefits, and stock-based compensation for Their engineers and other employees involved in product development activities. Product development costs have historically been expensed as incurred. Product development costs also include the cost of IT themed by the product development team as well as an allocation of general IT and facilities overhead expenses. Wish expect Their product development expenses to continue to increase in absolute dollars for the foreseeable future as Wish continue to invest in the development of Their marketplace and merchant offerings. General and administrative. Their general and administrative expenses consist primarily of employee-related costs, including salaries, benefits, and stock-based compensation for Their executives, finance, legal, information technology, human resources, and other administrative teams. General and administrative expenses also include outside consulting, legal, tax, and accounting services, and facilities and other supporting overhead costs. Wish expect Their general and administrative expenses to continue to increase in absolute dollars for the foreseeable future as Wish continue to invest in Their corporate infrastructure to support Their revenue growth. Further, Wish expect to incur additional general and administrative expenses in connection with Their becoming a public company. Key Factors Affecting Performance (Risks) Buyer Lifetime Value and Buyer Acquisition Cost Efficiency Wish success relies in part on the ability to engage users and convert them to buyers, while simultaneously optimizing Wish efficiency and marketing spend and efforts. Failure to effectively engage users and convert them to buyers on a cost-effective basis would adversely affect Wish revenue growth and operating results. Revenue from New Buyers and Existing Buyers Wish success also depends on the ability to increase engagement from existing buyers while simultaneously attracting and engaging new buyers. Therefore, we focus on increasing revenue from both new and existing buyers. If we are unable to increase engagement and revenue from existing buyers and attract new buyers to Wish platform, Wish revenue and results of operations will be negatively impacted. Average Revenue per Active Buyer Wish success also relies on the ability to continue to improve Wish platform and maintain and increase engagement from Wish active buyers. Therefore, we use average revenue per active buyer in a given cohort as an indicator of the level of engagement, the success of Wish discovery-based and personalized user experience, the quality of Wish products listed, and the overall scale and growth of Wish business. If we are unable to improve Wish platform, including, among other things, creating a positive user experience, ensuring that quality products are listed for sale, and otherwise increasing or maintaining engagement, then average revenue per active buyer may decline, which could lead to decreased revenue, which would have an adverse effect on Wish results of operations.

Overview BGNE is a global commercial-stage biotechnology company focused on developing and commercializing innovative molecularly-targeted and immuno-oncology cancer therapeutics. BGNE started as a research and development company in Beijing in 2010. Over the last ten years, they have developed into a fully-integrated global biotechnology company, with significant commercial, manufacturing, and research and development capabilities. BGNE have built substantial commercial capabilities in the People's Republic of China ("PRC" or "China") and the United States, and are currently marketing two internally-developed drugs and three in-licensed drugs. BGNE also anticipate introducing five more in-licensed drugs into the China market in the next one to two years. In the United States, BGNE market BRUKINSA™ (zanubrutinib) for adult patients with mantle cell lymphoma ("MCL") who have received at least one prior therapy and in China, BGNE have received marketing approval and are in the process of launching tislelizumab for patients with classical Hodgkin’s Lymphoma ("cHL") who have received at least two prior therapies. BGNE have filed four additional supplementary new drug applications ("sNDA") for regulatory approvals in China and are planning for launches in these additional indications in 2020. Their in-licensed portfolio includes ABRAXANE®, REVLIMID® and VIDAZA®, which BGNE have been marketing in China since 2017 under a license from Celgene Logistics Sàrl, a Bristol-Myers Squibb company ("BMS"). BGNE plan on launching additional in-licensed products in China from our collaborations, including XGEVA® (denosumab), KYPROLIS® (carfilzomib) and BLINCYTO® (blinatumomab) from Amgen Inc. ("Amgen"), and SYLVANT® (siltuximab) and QARZIBA® ▼ (dinutuximab beta), from EUSA Pharma ("EUSA"). BGNE have built deep clinical development capabilities, including a more than 1,100-person global clinical development team that is running over 60 ongoing or planned clinical trials that have enrolled over 7,500 patients and healthy subjects. BGNE are conducting late-stage clinical trials of BRUKINSA and tislelizumab, including 26 registration or registration-enabling trials in 15 discrete cancer indications. Their internal research capabilities have yielded another late-stage asset, pamiparib, and five other internally-developed drug candidates are currently in early-stage clinical development. In addition, BGNE have been able to leverage Their capabilities and China’s rising importance as a clinical science center to expand Their clinical and pre-clinical portfolio with in-licensed drug candidates. BGNE are also working with high-quality contract manufacturing organizations ("CMOs") to manufacture Their internally-developed commercial and clinical products in China and globally and have built state-of-the-art small molecule and biologic manufacturing facilities in China to support the launches and potential future demand of Their internally-developed products. Based on the strength of Their China-inclusive global development and commercial capabilities, BGNE have entered into collaborations with leading pharmaceutical and biotechnology companies to develop and commercialize innovative medicines in China and the Asia-Pacific region. In October 2019, BGNE entered into a strategic collaboration with Amgen pursuant to which BGNE have agreed to collaborate on the commercialization of Amgen’s oncology products XGEVA, KYPROLIS, and BLINCYTO in China, and the global development and future commercialization in China of up to 20 of Amgen's clinical- and late pre-clinical-stage pipeline products, including AMG 510, Amgen’s first-in-class investigational KRAS G12C inhibitor. Prodcuts: Pipeline: Operating Results Revenue: BGNE began generating product revenue in September 2017 through Their in-license agreement with BMS to distribute the approved cancer therapies ABRAXANE, REVLIMID and VIDAZA in China. Following FDA approval on November 14, 2019, BGNE launched Their first internally developed drug, BRUKINSA, in the United States. Revenues from product sales are recognized when there is a transfer of control from the Company to the customer. The Company determines transfer of control based on when the product is delivered, and title passes to the customer. Revenues from product sales are recognized net of variable consideration resulting from rebates, chargebacks, trade discounts and allowances, sales returns allowances and other incentives. Provisions for estimated reductions to revenue are provided for in the same period the related sales are recorded and are based on contractual terms, historical experience and trend analysis. BGNE expect revenue from product sales to increase in 2020 as BGNE launch Their internally developed drugs, BRUKINSA and tislelizumab, and launch additional in-licensed products from Their collaborations with Amgen and EUSA and continue to expand Their efforts to promote Their existing commercial products. In January 2020, BGNE BGNEre notified that Their tender offer for ABRAXANE was one of the winning tenders in China’s centralized procurement process, with a reduction from the current pricing, which is expected to take effect in the second quarter of 2020. Once ABRAXANE is included in the centralized procurement process, BGNE anticipate that demand will increase significantly, although at a significantly loBGNEr price than BGNE have been charging during 2019 and into 2020, which could have a material impact on Their commercialization efforts and results of operations. To date, BGNE have also recorded revenue from Their 2017 collaboration and license agreement with BMS for tislelizumab, which was terminated in June 2019. Under this agreement, BGNE received an upfront payment related to the license fee, which was recognized upon the delivery of the license right. Additionally, the portion of the upfront payment related to the reimbursement of undelivered research and development services was deferred and recognized over the performance period of the collaboration arrangement. BGNE recognized the remainder of the deferred research and development services revenue balance upon termination of the collaboration agreement. BGNE also received research and development reimbursement revenue for the basket study trials that BMS opted into through the termination of the collaboration agreement. Pursuant to the terms of the termination agreement, BGNE received a one-time payment of $150 million in June 2019. The entire payment was recognized in the period the termination occurred, as BGNE had no further performance obligations under the collaboration. BGNE also recognized revenue for upfront license fees and milestone payments from a prior collaboration agreement with Merck KGaA, Darmstadt Germany during the years ended December 31, 2017 and 2018, respectively. Expense: Cost of Sales Cost of sales includes the acquisition costs of Their commercial products that have been sold during the period. To date, cost of sales has consisted of the cost of products purchased from BMS and distributed in the People's Republic of China ("PRC" or "China"). Costs to manufacture inventory in preparation for commercial launch of a product incurred prior to regulatory approval are expensed to research and development expense as incurred. Cost of sales for newly launched products will not be recorded until the initial pre-launch inventory is depleted and additional inventory is manufactured. Research and Development Expenses Research and development expenses consist of the costs associated with Their research and development activities, conducting preclinical studies and clinical trials and activities related to regulatory filings. Their research and development expenses consist of: •expenses incurred under agreements with contract research organizations, or CROs, contract manufacturing organizations, and consultants that conduct and support Their clinical trials and preclinical studies; •costs of comparator drugs in certain of Their clinical trials; •manufacturing costs related to pre-commercial activities; •costs associated with preclinical activities and development activities; •costs associated with regulatory operations; •employee‑related expenses, including salaries, benefits, travel and share‑based compensation expense for research and development personnel; •in-process research and development costs expensed as part of collaboration agreements entered into; •other expenses, which include direct and allocated expenses for rent and maintenance of facilities, insurance and other supplies used in research and development activities.Their current research and development activities mainly relate to the clinical advancement of Their internally-developed drug candidates: •zanubrutinib, an investigational small molecule inhibitor of BTK; •tislelizumab, an investigational humanized monoclonal antibody against PD‑1; •pamiparib, an investigational small molecule inhibitor of PARP1 and PARP2; •lifirafenib, a novel small molecule inhibitor of both the monomer and dimer forms of BRAF; •BGB-A333, an investigational humanized monoclonal antibody against PD-L1; •BGB-A425, an investigational humanized monoclonal antibody against TIM-3; •BGB-A1217, an investigational humanized monoclonal antibody against TIGIT; and •BGB-11417, an investigational small molecular inhibitor of Bcl-2. Research and development activities also include costs associated with in-licensed drug candidates, including: •sitravatinib, an investigational, spectrum-selective kinase inhibitor in clinical development by Mirati Therapeutics, Inc. ("Mirati"); •ZW25 and ZW49, two bispecific antibody-based product candidates targeting HER2, under development by Zymeworks Inc.; and •BA3071, an investigational CAB-CTLA-4 antibody, under development by BioAtla LLC. BGNE expense research and development costs when BGNE incur them. BGNE record costs for certain development activities, such as clinical trials, based on an evaluation of the progress to completion of specific tasks using data such as subject enrollment, clinical site activations or information Their vendors provide to them. Revenue Breakdown: Total revenue increased by $230.0 million to $428.2 million for the year ended December 31, 2019, from $198.2 million for the year ended December 31, 2018. The following table summarizes the components of our revenue for the year ended December 31, 2019 and 2018, respectively: Net product revenue was $222.6 million for the year ended December 31, 2019, which related primarily to sales of ABRAXANE, REVLIMID and VIDAZA in China. They began recognizing product revenue with sales to our distributors in China, beginning in September 2017 following the closing of our strategic collaboration with BMS. For the year ended December 31, 2019, ABRAXANE, REVLIMID and VIDAZA represented 50%, 36% and 14%, respectively, of net product revenue for their marketed products in China. Following FDA approval on November 14, 2019, BGNE launched our first internally developed drug, BRUKINSA, in the United States. BGNE had $130.9 million product revenue for the year ended December 31, 2018. Collaboration revenue totaled $205.6 million for the year ended December 31, 2019, and was comprised primarily of a $150.0 million payment received upon termination of the collaboration agreement with BMS for tislelizumab, as well as the revenue recognition of previously deferred amounts. Additionally, BGNE recognized $27.6 million for the reimbursement of research and development costs for the clinical trials that BMS had opted into prior to the agreement being terminated. Cost of Sales: Cost of sales increased to $71.2 million for the year ended December 31, 2019 from $28.7 million for the year ended December 31, 2018, primarily due to increased volume of sales compared to the prior year. Cost of sales for the year ended December 31, 2019 consisted entirely of the cost of products purchased from BMS and distributed in the PRC. Research and Development Expense: Research and development expense increased by $248.3 million, or 36.6%, to $927.3 million for the year ended December 31, 2019, from $679.0 million for the year ended December 31, 2018. The following table summarizes external clinical, external non-clinical and internal research and development expense for the year ended December 31, 2019 and 2018:

Lufax positioned itself as a leading technology-empowered personal financial services platform. Their mission is to make retail borrowing and wealth management easier, safer and more efficient. China has the second largest financial system globally, both by retail credit lending volume in 2019 and by the total amount of investable assets as of December 31, 2019. The estimated demand for small business financing in China was RMB89.7 trillion (US$12.7 trillion) in 2019, of which RMB46.6 trillion (US$6.6 trillion) was unmet. In addition, the current outstanding balance of consumer loans in China is estimated to be RMB12.7 trillion (US$1.8 trillion) as of December 31, 2019. As of the same date, China’s personal investable assets reached RMB192 trillion (US$27 trillion), making it the second largest personal wealth management market globally, and only RMB49 trillion (US$7 trillion) or 26% has been placed in wealth management products. Business 1.Retail Credit Facilitation 2.Wealth Management Lu primarily address the large unmet demand for personal lending among small business owners as well as salaried workers in China, and provide tailor-made wealth management solutions to China’s fast growing middle class and affluent population. As of June 30, 2020, Lu's total balance of retail credit facilitated reached RMB519.4 billion (US$73.5 billion), and the total client assets generated through their online wealth management platform reached RMB374.7 billion (US$53.0 billion), ranking number two and number three, respectively, among non-traditional financial service providers in China such as fintech companies, online-only TechFin companies and online lending platforms, according to Oliver Wyman. Lu is well positioned to capture markets which have been underserved by traditional financial institutions and online-only TechFin platforms backed by major internet companies, such as Ant Financial, WeBank and Tencent Licaitong. Many traditional financial institutions do not have the necessary skills, data and technology to fully address these customer needs, while online-only TechFin platforms, which provide financial services but are operated by tech companies rather than financial institutions, generally lack the financial data and financial services capability to price credit risk appropriately for borrowers and provide suitable products to investors. Lu's business is built on: •Unique capital-light, hub-and-spoke business model: Lu operates a scalable capital-light business model focusing on large, underserved, yet highly attractive segments. Their platform has two “hubs”, connecting hundreds of financial institution “spokes,” to facilitate lending and wealth management products tailored to individual customers’ needs and risk appetites. Their hubs are tied to an integrated account which accumulates users’ data to drive ongoing personalization of services. •Proven technology applications: Lu's distinctiveness is founded on their ability to develop purpose-built technology, combine it with their financial expertise, and embed these solutions throughout business. With proprietary data accumulated over 15 years, they have created cutting-edge capabilities in know your product (KYP), know your business (KYB), and know your customer (KYC) to effectively assess risk and facilitate products to customers. These three areas leverage extensive data, AI applications, machine learning, and blockchain solutions to price credit and manage suitability-related risks effectively, and to deliver sophisticated digital customer services efficiently. •Deep financial services expertise: Lu's relationship with Ping An Group, a top 2 Fortune Global 500 financial institution by 2019 revenue, provides Lu with valuable access to its ecosystem. Through commercial relationships across the Ping An ecosystem, Lu benefit from potential access to Ping An Group’s approximately 210 million financial services customers, a proportion of which are small business owners and middle class and affluent investors. Lu also have collaboration with Ping An businesses, distribution channels, and product capabilities spanning insurance, investment, banking, and analytics. •Strong offline-to-online channel integration: Lu's deep integration across channels allows them to better meet the borrowing and wealth management needs of small business owners and middle class and affluent investors through a superior online customer experience complemented with the option of offline assistance. Combining large direct salesforce of over 56,000 members and online telemarketing team of over 4,000 personnel, with Lu's collaboration across the Ping An ecosystem, empowers them to provide more sophisticated services to small business owners and middle class and affluent investors more effectively than online-only TechFin platforms. •Through-the-cycle track record: Their strong performance through credit cycles demonstrates the benefit of our superior financial data and our ability to price and manage risk effectively relative to Lu's online-only peers, as well as their ability to respond quickly and adjust their business effectively to regulatory changes. Moreover, they have delivered stable operating results through cycles. Over the three years from 2017 through 2019, their total balance of loans facilitated grew at a CAGR of 26.6%, while Lu's total wealth management client assets, excluding legacy products, grew at a CAGR of 39.4%. Over the three years from 2017 through 2019, Lu total balance of loans facilitated grew at a CAGR of 26.6%, while total wealth management client assets, excluding legacy products, grew at a CAGR of 39.4%. Total income increased from RMB27.8 billion to RMB47.8 billion (US$6.8 billion), representing a CAGR of 31.1%, and net profit increased from RMB6.0 billion to RMB13.3 billion (US$1.9 billion), representing a CAGR of 48.6%, during the same period. Lu had a total income of RMB25.7 billion (US$3.6 billion) and net profit of RMB7.3 billion (US$1.0 billion) for the first six months of 2020. As Lu have become increasingly capital-light, their income contribution from technology platform services grew from 61.9% in 2017 to 87.7% in 2019, while the net margin increased from 21.7% to 27.8% during the same period. For the first six months of 2020, their income contribution from technology platform services was 83.5% and our net margin was 28.3%. Competitive Strengths •Leading platform in a sizable and attractive market. Lu ranked number 2 in retail credit facilitation and number 3 in wealth management, in each case among non-traditional financial service providers in China as of June 30, 2020, according to Oliver Wyman. •Customer-centric product offerings and offline-to-online channels. Lu's end-to-end technology platform integrates with offline-to-online capabilities, combining elegance, scalability and flexibility with deep customer relationships and effective risk management. •Technology-enabled customer experience and services. Lu integrate cutting-edge technologies with their product and service offerings to enable a seamless and personalized experience throughout the customer journey. •Cutting-edge data-driven risk management. Lu embed advanced AI, big data, blockchain technology and analytics into business processes resulting in a highly sophisticated, holistic and adaptable risk management system. •Scalable capital-light business model. Lu have implemented a capital-light business model that has allowed them to grow rapidly with minimal constraints from capital demands and scale rapidly with lower costs. •Innovation and synergies within the Ping An ecosystem. Lu have benefited immensely from the relationship with Ping An Group while maintaining a high degree of self-sufficiency. Market Opportunities The retail credit market in China primarily consists of small business loans and individual consumer loans. In 2019, the outstanding balance of small business loans in China reached RMB43.1 trillion (US$6.1 trillion), representing a five-year CAGR of 14.3% between 2014 and 2019, and is expected to grow to RMB76.6 trillion in 2024, at a five-year CAGR of 12.2%, according to the Oliver Wyman Report. Small businesses serve as the backbone of the Chinese economy with significant contributions to China’s GDP, employment, tax revenues and innovation. The total demand for small business loans in 2019 was estimated to be RMB89.7 trillion (US$12.7 trillion), indicating that approximately 52% of demand (or RMB46.6 trillion) remained unserved. Such unserved demand is forecast to reach RMB50.0 trillion by 2024. The funding gap is primarily due to the enormous difficulties faced by small businesses, which typically do not have an established operating history or substantial assets to be used as collateral in obtaining sufficient credit at a reasonable cost. In addition, traditional financial institutions and large online-only TechFin companies are often less well equipped to meet small businesses’ specific needs for a streamlined online application process, face-to-face collateral evaluation consultations, large ticket size and longer-tenured operating loans, choices of both secured and unsecured loans and prompt response to urgent funding requests. In comparison, technology-enabled large fintech players with strong technology and data capabilities and effective offline-to-online models are presented with great opportunities in addressing this unserved market. China’s wealth management market has been growing rapidly, driven by the fast growth of the middle class and affluent population and their increasing demand for personalized investment. Total assets under management of the wealth management market reached RMB49.4 trillion (US$7.0 trillion) in 2019 and are expected to grow to RMB118.0 trillion by the end of 2024, representing a five-year CAGR of 19%. In particular, wealth management players who can leverage advanced technology, offer efficient processing time and maintain low distribution costs are experiencing significant growth. The online non-traditional financial service provider wealth management market had assets under management of RMB7.6 trillion (US$1.1 trillion) in 2019, which is expected to grow at a five-year CAGR of 29% to reach RMB27.5 trillion by the end of 2024, and the online penetration rate of wealth management services in China by total assets under management was 29% in 2019, compared with 43% in the U.S., and is expected to reach 42% in 2024. Financial Statements: Risks 1.A credit crisis or a prolonged downturn in the credit markets may materially and adversely impact their reputation, business, results of operations and financial position. 2.The total fees Lu charge for retail credit facilitation service may be deemed to be in excess of interest rate limits imposed by laws or regulatory bodies. As a result, part of the interests and fees may not be valid or enforceable through the PRC judicial system. 3.The wealth management products displayed on platform involve various risks, and failure to identify or fully appreciate such risks will negatively affect reputation, client relationships, operations and prospects.

Challenges Facing China's NEV Market China is both the largest passenger vehicle market and the largest NEV market in the world as measured by sales volume. China's NEV market is currently skewed towards BEVs(battery electric passenger vehicles), as 81.3% of the NEVs sold in China in 2019 were BEVs, according to the CIC Report. We believe that smart electric vehicles represent the future of the automotive industry. However, the development of NEVs in China is currently facing two fundamental challenges as follows. Inadequate Charging Infrastructure         Charging infrastructure is currently a bottleneck of China's NEV market. The inconvenience of, and lengthy time needed for, BEVs' charging solutions cause range anxiety, which limits use cases and impedes the wider acceptance of BEVs in China.         China faces a problem of inadequate private and public fast charging infrastructure. The development of private charging infrastructure is affected by factors such as limited residential parking space in cities with high population density, low percentages of residential parking space suitable for installing home charging stalls, and power grid capacity limits in aged residential areas. As of December 31, 2019, fewer than 25% of families in first-tier cities in China had parking space suitable for installing home charging stalls, compared with over 70% of families in the United States, according to the CIC Report. As a result, a substantial number of BEV owners in China have to rely on public charging infrastructure. As of December 31, 2019, the ratio of NEV parc to public fast charging stalls was 17.7 to 1, according to the CIC Report. This demonstrates the insufficient number of public fast charging stalls in China to support the growth of BEVs. Exceedingly Higher Costs Compared to ICE Vehicles         The current costs of manufacturing NEVs, especially BEVs, far exceed those of comparable ICE (internal combustion engine) vehicles. While government subsidies and other favorable incentives used to enable automakers to price NEVs competitively, the phase-out of subsidies makes it difficult for automakers to price NEVs at levels that are attractive for consumers while still generating appropriate profit for themselves.         The higher costs of NEVs to automakers are primarily attributable to the current level of battery technology. Lithium-ion batteries, which are widely used in BEVs, are costly and were priced at approximately US$166 per kilowatt-hour in 2019, according to the CIC Report. The incremental cost of battery, electric motor, and electric controller replacing the ICE powertrain could contribute to an extra 30% to 35% of BOM cost for a large battery electric SUV, compared with a large ICE SUV. In addition, BEVs generally use a higher percentage of lightweight materials such as aluminum for the vehicle body and suspension system in order to balance the heavy weight and accommodate the large size of battery packs. To address the challenges facing China's NEV market, Li Auto have developed EREV technology and applied it to Li ONE.  An EREV is purely electric-driven by its electric motors, but its energy source and power come from both its battery pack and range extension system. A range extension system generates electricity with a dedicated ICE designed with high fuel consumption efficiency, an electric generator, and a speed reducer to connect them.Li ONE electric propulsion system consists of a 140-kilowatt rear-drive electric motor, a 100-kilowatt front-drive electric motor, and a 40.5-kilowatt-hour battery pack, which supports an electrically powered New European Driving Cycle, or NEDC, range of 180 kilometers. Li ONE's range extension system consists of a 1.2-liter turbo-charged engine configured and fine-tuned for EREV purposes, a 100-kilowatt electric generator, and a 45-liter fuel tank. With its integrated powertrain system, Li ONE delivers a total NEDC range of 800 kilometers, acceleration from zero to 100 kilometers per hour in 6.5 seconds, and energy efficiency of 6.8 liters per 100 kilometers or 20.2 kilowatt-hours per 100 kilometers, depending on its driving mode. Li ONE's energy can be replenished by slow charging, fast charging, and refueling. Li ONE can operate even when customers have no access to charging infrastructure, thereby completely eliminating range anxiety. To offer the same driving range as BEVs of a similar class, Li ONE requires much less battery capacity. A smaller battery pack not only is less costly, but also contributes to a more cost-efficient body structure design, which results in less usage of costly aluminum parts for the vehicle body and suspension system. As a result, the BOM cost of Li ONE is close to that of an ICE vehicle and is much lower than that of a BEV of a similar class. Benefiting from its all-electric-driven propulsion, Li ONE offers a similarly high quality driving experience to that of BEVs, such as smooth acceleration, and superior noise, vibration, and harshness performance, or NVH performance. The overall energy consumption level of Li ONE is much lower than that of ICE vehicles in a similar class, as a result of its high energy efficiency range extension system. Li ONE customers enjoy lower total running costs compared with ICE vehicle owners, including lower aftermarket service costs and energy consumption costs. In addition, our Li ONE customers can also benefit from vehicle-related tax exemptions in China and local government policies in favor of NEVs in certain cities in China, such as no quota limitations for vehicle license plate application and exemption from traffic restrictions. Financial Statements Income statements: CFS: Potential Risks: 1.limited operating history and face significant challenges as a new entrant into this industry. 2.The ability to develop, manufacture, and deliver automobiles of high quality and appeal to customers, on schedule, and on a large scale is unproven and still evolving. 3. currently depend on revenues generated from a single model of vehicle and in the foreseeable future from a limited number of models. 4. unable to adequately control the costs associated with our operations. According to the prospectus, the IPO proceeds will be used as followings: • approximately 30% for research and development of next-generation electric vehicle technologies, including high-voltage platform, high C-rate battery, and ultra-fast charging; • approximately 20% for research and development of the next BEV platform and future car models; • approximately 20% for research and development of autonomous driving technologies and solutions; and • the balance for general corporate purposes. Overview of China's Passenger Vehicle Market    China has been the world's largest passenger vehicle market as measured by sales volume since 2009. Driven by economic growth and increasing urbanization, China's passenger vehicle sales volume reached 22.1 million units in 2019. Nevertheless, according to the CIC Report, private car penetration in China was only 18.0% in 2019, compared to 61.0% in the United States in 2019. Despite a slowdown in 2018 and 2019, China's passenger vehicle market is expected to grow at a CAGR of 2.6% from 2020 to 2024, higher than the expected CAGR of 1.0% for the world's passenger vehicle market over the same time period, according to the CIC Report. The Premium Vehicle Segment         China has continued to experience strong growth in consumption power in recent years. As of December 31, 2019, China's well-off and affluent population, whose average consumption power is similar to that of consumers in developed economies, has exceeded 500 million. With continued urbanization in China, an increasing number of low-tier cities and their surrounding townships have achieved faster economic growth than major metropolises, resulting in more well-off and affluent families with rising consumption power.   The China passenger vehicle market can be categorized into entry, medium, and premium vehicle segments based on brand classification. Despite a slowdown in overall passenger vehicle sales in China since 2018, the premium vehicle segment had continued to grow rapidly at a CAGR of 13.6% from 2016 to 2019 driven by the rising well-off and affluent population. In particular, the growth of non-first-time buyers who generally prefer premium vehicles significantly contributes to the development of this segment. According to the CIC Report, the premium vehicle segment is expected to continue to outperform other segments of China's passenger vehicle market, growing at a CAGR of 10.4% from 2020 to 2024, and is expected to eventually represent 20.6% of the total passenger vehicle sales volume in China by 2024. The SUV Segment         The China passenger vehicle market can also be categorized into sedan, SUV, and MPV segments based on vehicle type. The SUV segment is expected to become the largest segment by 2020 as measured by sales volume. It also has become, and is expected to continue to be, the fastest-growing segment of the China passenger vehicle market. According to the CIC Report, SUV sales volume has increased at a CAGR, of 1.5% from 2016 to 2019, with a penetration rate increasing from 38.9% to 45.4%. The SUV sales volume is expected to continue to grow at a CAGR of 3.9% from 2020 to 2024, achieving a penetration rate of 49.2% in 2024. The rapid growth reflects Chinese customers' preference for larger vehicle cabin imam and superior driving experiences under different road conditions. The SUVs can be categorized into small, compact, mid-size, large, and full-size SUVs in order of ascending size. Mid-size and larger SUVs, which include mid-size, large, and full-size SUVs, represent the fastest sales volume growth from 2016 to 2019. The sales volume of mid-size and larger SUVs as a whole increased at a CAGR of 11.2% from 2016 to 2019 and is estimated to increase at a CAGR of 13.5% from 2020 to 2024, significantly higher than the sales volume growth of other SUVs. The rising demand of mid-size and larger SUVs is primarily driven by the expanding average family size and the pursuit of better riding experiences in China. The lifting of the one-child policy is expected to boost average family size in China, hence driving the demand for larger vehicles with more seats. In addition, due to limited parking space in urban areas, a majority of families prefer to choose a car that can address multiple mobility needs. As automobiles have become an extension of home for families, mid-size and larger SUVs are best positioned to offer quality riding experiences to all family members. Mid-size and larger SUVs are preferred by non-first-time buyers, and half of China's passenger vehicle sales volume in 2019 was attributable to non-first-time buyers looking for a second or replacement car. China's NEV Market High Growth Potential         China has become the world's largest NEV market. In recent years, the PRC government has provided great support and implemented various favorable policies to drive the development of the NEV market. In addition, with the rapid advancement of NEV technology, growing environmental awareness of consumers, and increasing acceptance of NEVs, the growth of NEV sales volume has surpassed that of the ICE vehicles in China. According to the CIC Report, the NEV sales volume in China increased from 0.3 million units in 2016 to 1.1 million units in 2019, representing a CAGR of 54.6%.         In 2019, the NEV sales volume only accounted for 5.0% of the total passenger vehicle sales volume, indicating massive future growth potential. The draft New Energy Vehicle Industry Development Plan (2021-2035) issued by the MIIT in December 2019 has set China's target sales volume of NEV to be 25% of total vehicle sales volume by 2025. The NEV sales volume is expected to continue to grow at a CAGR of 34.5% from 2020 to 2024. Challenges to Wide Adoption of BEVs         NEVs in China primarily include BEVs, EREVs, and PHEVs, according to the Guiding Opinions on Accelerating the Promotion and Application of New Energy Vehicles issued by the General Office of the State Council and the classification standard in the current market. Among these NEVs, BEVs have been granted the most favorable government policies over the past few years and have become the largest segment within the NEV market, accounting for 81.3% of total NEV sales volume in 2019.         Wide adoption of BEVs in China faces various challenges. Inadequate charging infrastructure is a key constraint for BEV development. The development of the private charging infrastructure is affected by limited residential parking space in cities with high population density, low percentage of residential parking space suitable for installing home charging stalls, and power grid capacity limits in aged residential areas. As of December 31, 2019, the ratio of car parc to residential parking space was below 2 to 1 in first-tier cities in China, and fewer than 25% of the families in first-tier cities in China had parking space suitable for installing home charging stalls, compared with over 70% in the United States. As a result, a substantial number of BEV owners in China have to rely on public charging infrastructure. As of December 31, 2019, the ratio of NEV parc to public charging stalls is 7.4 to 1. As of December 31, 2019, fast charging stalls only accounted for 41.6% of total public charging stalls, and the ratio of NEV parc to public fast charging stalls was 17.7 to 1. Most charging stalls require over 30 minutes for waiting and charging, which is longer than consumers' expectation.   In addition, the range anxiety typically associated with BEVs currently remains largely unsolved. The typical range of a BEV available in the China market is currently 300 to 500 kilometers, while the typical range of an ICE vehicle is 700 to 800 kilometers. The relatively shorter driving range of BEVs compared to ICE vehicles limits the driving scenarios for BEVs. Competitive Landscape of Premium Mid-Size and Larger SUV Segment         The competition in the China premium mid-size and larger SUV segment is currently dominated by leading global automakers and Chinese NEV startups. Compared to imported SUVs, domestically manufactured SUVs possess a price advantage because they are not subject to tariffs imposed on imported vehicles. In addition, purchasers of domestically manufactured new energy SUVs are exempt from vehicle purchase tax, while most of the imported SUVs are ICE vehicles which subject purchasers to vehicle purchase tax. Most domestically manufactured new energy SUVs are BEVs constrained by the challenges facing BEVs. Li ONE, as the first successfully commercialized large extended-range electric SUV, possesses the advantages of unique EREV technology and market positioning, to offer a superior product at a competitive price.

Chinese small banks soared up recently, due to the macro economies recovered in China.

Foshan Haitian Flavouring & Food (603288.SH) is a cash cow and golden stock in Flavouring & Food Industry, just like Kweichow Moutai (600519.SH) in Liquor. Haitian is the largest condiment producer in China, with revenue mainly consist of three parts, soy source, oyster source, and table source contributed 60%, 17%, and 13% respectively. We initiated Haitian on 2019 April 1st, with px CNY87. And our key investment thesis is: Mkt underestimates the company's unique competitive advantage in a huge and growing market Mkt underestimates its outstanding profitability The condiments sector is the best in class sector under the consumer industry, first, condiments belong to the non-cyclical industry, the sector still grows moderate, with an estimated 12% CAGR over 2017-2020, will reach to 420bn yuan in 2020. Second, the company's long-term ASP hike capacity only next to the liquor industry, can reach 3.5% per year. Third, the market concentration still very low, where the top five players only accounts for 21% market share. Haitian is the leader in the condiments industry, especially in the soy sauce market, which represents 60% of the total condiment market share. Haitian has 17% and 50% in soy sauce and oyster sauce mkt respective. Haitian's main driver and competitive advantage is the production capacity, in 2018, Haitian’s production reached to 2.7mil ton, and 98% of production has sold out. Haitian has achieved a nearly 100% production-sold out ratio in many years, which means the larger production, the larger the sales revenue. The revenue is directly linked with its production in this industry. Haitian production is far larger than the sum of the rest top-five player in the market. The second player Jonjee (600872) only got 550 Kiloton production in 2018, and I expect continuous industry consolidation. The biggest single driver is the price per ton, if the price per ton increase 1% yoy, the implied share price will increase by 6% according to our model. Haitian also got the geographic advantage as producing seasoned condiments requires perfect weather conditions with ample sunlight exposure. Guangdong province, which sits in special latitude, can provide such condition and effectively limits competition from the rest of China. Haitian has a high gross margin, around 50% in most fiscal years, and also high net margin, around 25%, compared with peers 9-20%, and I estimated the company's net margin will keep growth above 20% CAGR in the next five years. ROE of the company has keep above 33% in the last several years and reached a new high at 34% in 2018, and with the production improves, I estimated the ROE will reach 42% in 2023, reflecting the company’s superior operating margin. In addition, Haitian’s legacy of management buyout has incubated a strong culture of equity ownership among management/board, a group of 58 individuals owns 85% of Haitian. I think all of these will warrant its long term profitability. Our DCF valuation based on May 10 price tgt to the year end of 2019 is CNY110, with 20% upside, we derived 7.45% wacc for Haitian, and assuming 3.3% risk-free rate, 6% risk premium, with terminal growth rate 2.5%. This implies a 39x PE and 36x EV/EBITDA in 2020, higher than the global peers and local peers. For catalysts, we estimated there are 1. potential product category expansion and M&A as Haitian has acquired a vinegar company in 2017 and the company has more ambition in product expansion as the condiment industry has a very low concentration. 2. Potential ASP hikes, our model test if the soy sauce price per ton increase 2.5%, the implied share price will soar to CNY138 *Members have full access to our models and reports. AntPWM