Important Information
Investors should not base investment decisions on this content alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:
- Global X China Electric Vehicle and Battery ETF’s (the “Fund’s”) investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
- Electric vehicle companies invest heavily in research and development which may not necessarily lead to commercially successful products. In addition, the prospects of Electric vehicle companies may significantly be impacted by technological changes, changing governmental regulations and intense competition from competitors.
- China is an emerging market. The Fund invests in Chinese companies which may involve increased risks and special considerations not typically associated with investments in more developed markets, such as liquidity risk, currency risks, political risk, legal and taxation risks, and the likelihood of a high degree of volatility.
- The trading price of the Fund’s unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
- The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from realisation requests.
- Global X Hang Seng TECH ETF (the “Fund”) seeks to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Hang Seng TECH Index (the “Index”).
- The Fund’s investments are concentrated in companies with a technology theme. Technology companies are often characterised by relatively higher volatility in price performance. Companies in the technology sector also face intense competition, and there may also be substantial government intervention, which may have an adverse effect on profit margins. These companies are also subject to the risks of loss or impairment of intellectual property rights or licences, cyber security risks resulting in undesirable legal, financial, operational and reputational consequences.
- The Fund’s investments are concentrated in securities listed on the Stock Exchange of Hong Kong (the “SEHK”) of companies that are active in technology sector may result in greater volatility in the value of the Fund than more diverse portfolios which comprise broad-based global investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the technology sector.
- The Index is subject to concentration risk as a result of tracking the performance of securities incorporated in, or with majority of revenue derived from, or with a principal place of business in, the Greater China region. The Fund’s NAV is therefore likely to be more volatile than a broad-based fund.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from realisation requests.
- The trading price of the Fund unit (the “Unit”) on the SEHK is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
- Dividends may be paid from capital or effectively out of capital of the Fund, which may amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and result in an immediate reduction in the Net Asset Value per Unit of the Fund.
- Global X China Clean Energy ETF’s (the “Fund’s”) investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
- Many clean energy companies are involved in the development and commercialization of new technologies, which may be subject to delays resulting from budget constraints and technological difficulties. Obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants and general economic conditions also significantly affect the clean energy sector.
- China is an emerging market. The Fund invests in Chinese companies which may involve increased risks and special considerations not typically associated with investments in more developed markets, such as liquidity risk, currency risks, political risk, legal and taxation risks, and the likelihood of a high degree of volatility.
- The trading price of the Fund’s unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
- The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from realisation requests.
- Global X China Consumer Brand ETF’s (the “Fund’s”) investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
- The performance of companies in the consumer sector are correlated to the growth rate of the global market, individual income levels and their impact on levels of domestic consumer spending in the global markets, which in turn depend on the worldwide economic conditions, which have recently deteriorated significantly in many countries and regions and may remain depressed for the foreseeable future.
- China is an emerging market. The Fund invests in Chinese companies which may involve increased risks and special considerations not typically associated with investments in more developed markets, such as liquidity risk, currency risks, political risk, legal and taxation risks, and the likelihood of a high degree of volatility.
- The trading price of the Fund’s unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
- The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from realisation requests.
- Global X China Robotics and AI ETF’s (the “Fund’s”) investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
- Robotics and artificial intelligence sector is sensitive to risks including small or limited markets for such securities, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. These companies rely on significant spending on research and development and tend to be more volatile than securities of companies that do not rely heavily on technology.
- China is an emerging market. The Fund invests in Chinese companies which may involve increased risks and special considerations not typically associated with investments in more developed markets, such as liquidity risk, currency risks, political risk, legal and taxation risks, and the likelihood of a high degree of volatility.
- The trading price of the Fund’s unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
- The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from realisation requests.
- Global X China Little Giant ETF’s (the “Fund’s”) objective is to provide investment results that, before fees and expenses, closely correspond to the performance of the Solactive China Little Giant Index (the “Index”).
- The Index is a new index. The Index has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Fund may invest in small and/or mid-capitalisation companies which may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
- The Fund’s investments are concentrated in companies which are characterised by relatively higher volatility in price performance. The Sub-Fund may be exposed to risks associated with different sectors and themes including semiconductor, industrial, pharmaceutical, energy and technology. Fluctuations in the business for companies in these sectors or themes will have an adverse impact on the net asset value of the Sub-Fund. Some of the companies classified as the Little Giants have a relatively short operating history. Such companies also face intense competition and rapid changes could render the products and services offered by these companies obsolete, which may have an adverse effect on profit margins. They may be more susceptible to risks of loss or impairment of intellectual property rights or licences, cyber security risks resulting in undesirable legal, financial, operational and reputational consequences affecting those companies.
- The Mainland China is an emerging market. The Fund invests in Mainland Chinese companies which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risk, currency risks or control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. Securities exchanges in the Mainland Chinese markets typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Fund.
- Listed companies on the ChiNext market and/or STAR Board are subject to higher fluctuation on stock prices and liquidity risk, over-valuation risk, less stringent regulation risk, delisting risk and concentration risk.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from redemption requests.
- The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Fund.
- The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the Fund’s Net Asset Value.
- Payments of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Share of the Fund and will reduce the capital available for future investment.
Monthly Commentary
China Thematic ETFs – May 2025
Global X China Electric Vehicle and Battery ETF (2845)
Industry Update
- Strong April EV Sales: According to CPCA estimates, April NEV wholesale sales volume was 1.14mn, +42% YoY. By individual brand, BYD reported April NEV PV sales of 380k units, +21% YoY and +1% MoM. Overseas sales remain the bright spot with record high 79k units (+9% MoM), with YTD overseas sales reaching 285k units, more than double YoY. Xpeng recorded strong YoY sales growth of +273% YoY, XPeng’s new X9 has been gaining traction, and other new models could drive continued sequential volume growth. Li Auto sold 33.9k units in the month, +32% YoY. Xiaomi delivered over 28k units in April, and the company is confident to achieve its full year sales target of 350k units. (for reference only, abovementioned stocks are not necessarily in the constituent list of the ETF).
- Shanghai Auto Show commenced on 23 April, featuring over 100 new model launches. The show demonstrated a clear trend of localization by leading global brands through cooperation with Chinese suppliers and expanding localized R&D teams. Automakers take a relatively conservative tone regarding intelligent driving functions with more emphasis on safety, as regulators tightened autonomous driving regulations after the fatal crash that caused wide discussion in March.
- Continued battery technology breakthrough by leading Chinese players should propel industry advancement. CATL unveiled several key battery products on its first ‘Super Tech Day’ held on 21 April, featuring technology across sodium-ion battery, superfast charging technology, and dual-power architecture. Continued battery technology breakthrough highlights CATL’s R&D capabilities and operational strength, which should help solidifies CATL’s leading position in global battery industry. Additionally, BYD also launched ‘Super E-Platform’ in March, offering “10C” superfast charging capability that adds 400 km of range with just a five-minute charge.
- Battery material costs remained low: Battery grade lithium carbonate price was Rmb70.1k/ton, -2.6% wow, -35%/-14%/-9%/-8% vs. average of 2Q24/3Q24/4Q24/1Q25. (Goldman Sachs, April 2025) Battery materials prices have decreased by over 80% from its peak in 2022, supporting the continued cost optimization for battery makers and EV manufacturers.
Stock Comments
- Shenzhen Inovance recorded +5% return in April, a key contributor to the ETF performance. The company reported solid 4Q24 & 1Q25 results at end-April, with 1Q25 NP better than expectation at +63% YoY, supported by solid top-line growth, lower SG&A expense ratio, as well as increased investment gain. Management sees high potential in its humanoid robot business and plans continued investments in the field in the coming years.
- Fuyao Glass recorded -1% return in April, a positive contributor to the ETF performance. The company reported solid 1Q25 results, with earnings rose 46% YoY to Rmb2bn, above market expectations, due to USD appreciation against CNY. Though tariff, global EV sales and competition uncertainty persists, Fuyao Glass demonstrated solid fundamentals with ongoing global share gains.
Preview
We remain positive on the long term growth potential for EV and battery value chain, along with the upward EV penetration trajectory. Domestic old car replacement demand, as stimulated by scaled-up auto trade-in program (which has been extended in 2025), together with export sales, should support China’s resilient auto momentum and benefit leading domestic brands. We expect the China auto market to stay competitive with strong new product line-up and technology innovations from leading EV and battery brands, and new entrants such as Xiaomi. BYD’s launch of God’s Eye ADAS in mass market model should accelerate smart driving adoption in China. Geopolitical tensions remain the key risks, but China EV models will still remain competitive under new tariff landscape thanks to its cost advantages. Localized production will be the longer term solution for Chinese brands.
Global X Hang Seng TECH ETF (2837)
Industry Update
Global X Hang Seng TECH ETF (2837) recorded loss in April. Hang Seng TECH Index saw massive decline in early April after higher-than-expected US tariff announcement, but subsequently partially recovered losses as driven by hopes for supports from China regulators. AI theme continues to gain traction in Hong Kong market, with key players like Alibaba continue updating its AI initiatives. Major cloud providers are benefiting from increasing AI related demand, with Alibaba and Baidu both recorded accelerated cloud revenue growth, further supporting positive sentiments. We see more AI models emphasising cost efficiency, which should accelerate AI adoption and benefit software and internet companies. US tariff and escalating US-China geopolitical tensions under Trump presidency and policy supports for domestic chip development continue to drive the elevated sentiments on China semiconductor sector, leading to outperformance of leading domestic players like SMIC. With a clear change in policymaker stance, the gradual rollout of stimulus policies could support a revived consumer sentiments that will benefit sectors including ecommerce, advertising, EV, and 3C electronics. Online gaming sector remains less macro-dependent and continued to record solid revenue supported by high quality games.
Stock Comments
- JD recorded loss of 18% in April, a detractor to the ETF. JD increased investments on its food delivery, announcing Rmb10bn subsidy for its food delivery business on 11 April, driving a sharp daily order increase for JD’s food delivery business. Meituan and JD share price declined sharply as the market fears intensified competition in the food delivery sector. JD’s subsidy also caused uncertainty around the company’s earnings outlook.
- BYD Electronic recorded loss of 20% in April, a detractor to the ETF. The company reported soft 1Q25 results, with generally flattish YoY revenue/net profit growth, and gross margin decline due to weaker consumer electronic components sales. Tariff uncertainty remains a key macro overhang to the company.
Preview
Hang Seng Technology Index constituents are well positioned to benefit from the policy stimulus by central government. We see unique positioning of Hang Seng Tech thanks to its attractive valuation, ongoing margin expansion, and continued ramp up in shareholder returns. With well-established ecosystem containing large user base and leading technology in place, we see further upside potential for these leading technology companies coming from the rapid development of structural growth themes such as EV, Semiconductor and AI in China.
Global X China Clean Energy ETF (2809)
Industry Update
In 1Q25, China solar installation remained strong of 45.74GW capacity addition, +35.9%yoy, while wind installation was 14.62GW, -6%yoy. However, solar materials prices remained weak since April due to the high inventory accumulated in the low season of CNY. Investment in power grid was further accelerating to Rmb95.6bn in 1Q25, +24.8%yoy. Government expect the overall power consumption to grow by 6% in 2025, 1% higher than GDP growth target. The new addition power generation capacity will exceed 450GW, in which 300GW are renewables.
The US updated the AD/CVD tariff rate on the Chinese-owned solar cell/panel capacities in the ASEAN countries on April 21st. Since it was already high and China module exports to the US was very limited, the impact was not meaningful.
Stock Comments
- NAURA Technology Group Co Ltd Class A: As the leading semiconductor equipment company in China, NAURA is the key beneficiary from semiconductor import substitution in the coming decade.
- China Yangtze Power Co., Ltd. Class A: Sector rotation to play defensive amid the uncertainties of US tariff.
- LONGi Green Energy Technology Co., Ltd. Class A: Supply side reform are not yet to work given soft prices along solar value chain. We didn’t see the inflection point in the near term, though demand remains strong.
Preview
China solar power installation is stronger than expectation, partially owing to front loading before June 2025. We expect a modest growth rate for the European solar power market, mainly because the residential solar demand slowed down for the decreasing ROI as electricity prices normalized and the impacts of the energy crisis faded. China’s supply-side policies on solar may take more time to play out, despite the worst time behind. We are constructive on China’s wind equipment exporting for better profitability from exporting. We remain constructive on the global clean energy growth and the trend of energy transition, just staying cautious about the near-term broad mismatch between supply and demand.
Global X China Consumer Brand ETF (2806)
Industry Update
Consumption trends tend to bottom out, with 1Q25 NBS retail sales growth rising to +4.6% YoY. Overall earnings growth in China consumer space during the quarter also showed continued improvement compared to 4Q24, and growth during the Labor Day holiday period accelerated. However, a notable rebound in demand has yet to materialize, and companies remain cautious about the outlook due to lingering tariff risk. Meanwhile, “new consumption” names continue to deliver strong performance on structural growth opportunities.
Stock Comments
- Pop Mart (9992 HK): Pop Mart achieved 24% return in April. The company reported 165-170% sales growth YoY in 1Q25, with Greater China/overseas +95-100%/+475-480%. The acceleration in 1Q growth indicates a robust sales momentum, which is mainly driven by store productivity improvement and online sales growth, despite limited store openings during the quarter. Additionally, company’s IP-product ecosystem continues to gain momentum, generating a halo effect that enhances fan loyalty and promotes cross-selling among IPs and products.
- ANTA (2020 HK): ANTA recorded 8% return in April. ANTA delivered mid-teens sales growth in 1Q25. By brands, ANTA main brand sales were in-line, while FILA and niche brands beat. Additionally, the company announced the acquisition of Jack Wolfskin, a prominent German outdoor brand. This move aligns with ANTA’s strategic focus on M&A to support sustainable growth.
- Yum China (YUMC US): Yum China experienced 17% loss in April. The company maintains its full-year system sales growth target of mid-single digits, despite 1Q system sales increasing by only 2% (excluding FX), which is slightly below the full-year outlook. 1Q margin was stronger than expected, with a 1ppt YoY expansion in restaurant margins, reflecting the effectiveness of YUMC’s key initiatives, “Project Fresh Eye” and “Project Red Eye.” Overall sales momentum during April and Labor Day holiday aligns with the company’s expectations.
Preview
We believe policy stimulus remains key to enhancing consumer sentiment and bolstering stock performance for China consumer in 2025. During the Two Sessions, consumption was reaffirmed as a primary policy focus, and the introduction of the Special Action Plan to boost consumption underscores this commitment. Amid escalating trade tensions, China government may accelerate the pace and scale of these policies. We expect that macroeconomic recovery, supported by policies and the stabilization of the property market, presents the largest upside potential for China consumer sector in 2025. Among subsector, we favour those that are directly targeted by stimulus policies, such as home appliance and EV under extended consumer goods trade-in programs, as well as sectors sensitive to macroeconomic changes, such as Baijiu, catering and beverage.
Global X China Robotics and AI ETF (2807)
Industry Update
As early data showed the recovery of China automation sector YTD, the major Chinese robotics and automation companies’ earnings results confirmed the trend recently. Inovance’s industrial automation saw strong rebound in 1Q25 and electric vehicle related revenue increased significantly thanks to demand growth, market share gain and structural changes in product mix. Other OEM automation demand also recorded improvement QoQ and YoY.
Humanoid robot supply chain is another spotlight this year. A dozen of companies are cooperating with Tesla, including Sanhua intelligent, Shuanghuan, Hengli hydraulic, LHDS, etc, and expect Tesla’s robots production volume at 2,000~5,000 units in 2025.
Thu US tariff may negatively hurt people’s confidence in general investment and global trades, indirectly affecting automation demand in a longer period of time. In the near term, China FA cycle is largely immune from the direct impact of US tariff hikes as most of the business are domestic play with limited exposure to the US. Roborock has roughly 20% revenue exposure to the US, which may not be fully passed through to the end-users.
Stock Comments
- Shenzhen Inovance Technology Co., Ltd Class A: The company delivered stronger-than-expected 1Q25 results and 2025 guidance, driven by electric vehicles, battery and traditional industries.
- UBTECH ROBOTICS CORP LTD Class H: The company announced they have made great progress in their humanoid robots development and signed meaningful sales contract for industrial robot Walker S1 and humanoid robot Walker C.
- Beijing Roborock Technology Co. Ltd. Class A: The company has 21% revenue exposure to the US, which is unlikely to fully pass through US tariff to end-consumers
Preview
China’s FAI in advanced manufacturing and technology have been strong despite the overall economy slowdown. Robotics, AI and automation are one of the key beneficiaries from both the government’s stimulus measures in the near term and the economy transition goal in the long run. China automation companies are largely immune from the direct impact of US tariff hikes as most of the business are domestic play with limited exposure to the US.
Global X China Little Giant ETF (2815)
Market Update
Global X China Little Giant ETF experienced a loss in April, mainly impacted by escalating tariff war. We expect tariff tensions between US and China may strengthen policy support to enhancing supply chain upgrades and achieving self-sufficiency. We still expect promoting emerging industries to climb up technology tree and supporting domestic substitution remain policies priorities in 2025. Therefore, these specialized and sophisticated SMEs play a crucial role in China’s transition to high quality development.
As a high-quality, small-cap fund, Global X China Little Giant ETF is likely to benefit from government’s supportive policies on tech innovation and may outperform large-cap funds if the economy turns to strong recovery in 2025
Stock Comments
Novosense is a leading analog chip provider in China. As a fabless company, Company offers a comprehensive portfolio of high-performance and reliable products and solutions for application sectors such as (i) automotive electronics, (ii) energy and industrial automation and (iii) consumer electronics. Company’s three core product categories: sensor products, signal chain chips and power management chips, form a complete chain that covers (i) sensing, (ii) signal processing and (iii) system power supply and power drive. These products play a critical role in enabling the connection and interaction between the physical and digital worlds. Leveraging the continued R&D and understanding of market demands, Company’s products have been widely applied across various application sectors such as automotive electronics, energy and industrial automation, consumer electronics, and certain emerging sectors.
US tariff and China’s retaliation in April attracted market attention in China domestic MCU, where Novosense is very strong at both auto and industrials. Along with overall sector bottoming out, triggered a strong rerating in the last week.
Joinn lab share price was partly due to weak 1Q results, as soft 2024 orders were gradually booked in 1H25. Though new order seems stabilized a bit but total backlog remain stressed on YoY basis. No guidance was given in 2025 due to macro uncertainty.
The FDA proposal to phase out animal testing also affected growth look. The reduction/replacement of animal tests is more likely a long-term industry shift given that 1) drug safety and quality is always the top priority for the FDA and drug development scientific activities, and 2) many non-animal alternatives are still not mature enough for large-scale replacement. The FDA is still investigating the applicable scope and transition period through a road map.