Chinese Concept Stocks | NetEase Surges Over 14% as Nasdaq Golden Dragon Index Drops 2.37%

On May 15th, Eastern Standard Time (Thursday), the three major indices of U.S. stocks showed mixed results. The S&P 500 index rose by 0.41%, closing at 5916.93 points; the Dow Jones index increased by 0.65%, closing at 42322.75 points; the Nasdaq index dropped by 0.18%, closing at 19112.32 points.

On May 15th, the Nasdaq Golden Dragon China Index fell by 2.37%.

Regarding popular Chinese stocks, NetEase rose by 14.61%, Alibaba fell by 7.54%, JD.com decreased by 3.86%, Baidu dropped by 3.58%, NIO declined by 3.15%, Bilibili decreased by 2.64%, XPeng Motors fell by 1.39%, Pinduoduo dropped by 0.88%, and TSMC decreased by 0.26%.

Rising Chinese Stocks: Tianyan Pharmaceutical has risen by 1.99% for seven consecutive days with an increase of 11.32% during the cycle. RLX Technology increased by 0.52% for six consecutive days with a rise of 7.73%. Lotus Technology rose by 4.63% for six consecutive days with an increase of 22.83%. Gaotu increased by 2.89% for six consecutive days with a rise of 20.31%. Paiming Chip City rose by 11.50% for six consecutive days with an increase of 21.15%. Four Seasons Education increased by 2.22% for six consecutive days with a rise of 8.95%.

Falling Chinese Stocks: Ascentage Pharma dropped by 3.61% for five consecutive days with a decrease of 10.35% during the cycle. Jianzhi Education fell by 3.44% for five consecutive days with a decline of 35.74%. Fulong Group decreased by 3.36% for four consecutive days with a fall of 6.88%. Oriental Culture dropped by 17.07% for four consecutive days with a decrease of 24.44%. Cheche Technology fell by 0.01% for four consecutive days with a decline of 3.67%. Mogu Street decreased by 1.31% for four consecutive days with a fall of 6.22%. Xunbird Software dropped by 0.90% for four consecutive days with a decrease of 27.15%. China Natural Resources fell by 2.33% for four consecutive days with a decline of 6.48%. Zhongbei Energy dropped by 18.46% for four consecutive days with a decrease of 30.84%.

Nasdaq Golden Dragon China Index closed down by 2.37%, NetEase rose over 14% nearing historical high
Most popular Chinese stocks fell, with the Nasdaq Golden Dragon China Index closing down by 2.37%. Rongke fell over 8%, Alibaba and WeRide dropped over 7%, Futu Holdings decreased over 5%, JD.com, Baidu, and NIO fell over 3%. With Q1 revenue exceeding expectations, NetEase surged over 14%, its stock price nearing historical highs.

Tiger Global increased holdings in Pinduoduo and others, major holdings include Meta, Microsoft, Google A, Amazon
The 13F report shows Tiger Global took positions in AppLovin, Zillow (Class C + Class A), GE Vernova, Block in Q1. Increased holdings in Veeva, Pinduoduo, Korean e-commerce Coupang, Eli Lilly, Microsoft. Exited Qualcomm, Datadog (DDOG), Atlassian (TEAM), OKLO, and ARM. Reduced holdings in Apollo Global and Uber. Major holdings include Meta, Microsoft, Sea Ltd., Google's parent company Alphabet, and Amazon.

JD Logistics: "Warehouse Distribution 211" service coverage increased by 60%
It was reported that JD Logistics upgraded the "Warehouse Distribution 211" efficiency plan, providing merchants with integrated warehouse distribution 211 timed delivery and next-day delivery services, with coverage increasing by 60% and 35%, respectively.

Agency: TSMC's advanced process capacity utilization remains strong, 2nm sets commercialization record
Counterpoint released a report indicating that TSMC, a leader in the global wafer foundry market, has further consolidated its industry dominance after inventory adjustments at the end of 2022. Advanced process capacity utilization remains high, demonstrating the company's technological leadership. The 3nm process achieved full capacity utilization in the fifth quarter post-mass production, driven by huge demand for Apple's A17 Pro/A18 Pro chips, x86 PC processors, and other application processor chips (AP SoC), setting a new record for early market demand for advanced processes.

Alibaba CEO Wu Yongming: Large enterprises' AI applications are penetrating user scenarios, more SMEs actively using AI
On the evening of May 15, during Alibaba's 2025 fiscal year fourth-quarter and full-year earnings analyst conference call, Alibaba Group CEO Wu Yongming stated that the "user first, AI-driven" strategy continued to deliver results over the past fiscal year, with core business growth accelerating. The group has basically formed a development pattern of AI+ cloud, e-commerce, and other internet platform businesses. Wu Yongming said, "This quarter, our AI product industry penetration is rapidly expanding. In addition to industries that quickly use AI products such as the internet, smart cars, finance, and online education, many traditional industries, like agriculture and traditional manufacturing, are also actively exploring AI applications, with demand growing significantly." During the call, Wu Yongming also shared two latest trends in AI: firstly, in large and medium-sized enterprises, AI applications are starting to penetrate from internal systems to user-side scenarios; secondly, the customers actively using AI products are expanding from large and medium-sized enterprises to many SMEs. Wu Yongming said, "In the 2026 fiscal year, we will continue to focus on core business growth in e-commerce and AI+ cloud, shaping a second growth curve driven by technology in the medium to long term."

Henry Group: Signed strategic cooperation agreement with AI Innovator and DingTalk
Henry Group announced that on May 15, 2025, it signed a strategic cooperation agreement with AI Innovator and DingTalk. According to the agreement, the three parties will deepen collaboration in various fields with mutual benefit as the core, including co-creation of financial industry solutions, expansion into overseas markets, innovation in organizational business models, pipeline cooperation and empowerment, and investment in technology fields, focusing on the digital and intelligent transformation of the financial industry. AI Innovator is China's rapidly growing enterprise-level AI solution provider, while DingTalk is the enterprise-level intelligent mobile office platform created by Alibaba Group. The strategic cooperation agreement does not constitute a transaction that needs to be disclosed, nor does it constitute a connected transaction.

Alibaba: Entertainment Group's revenue increased by 12% year-on-year in the fourth fiscal quarter
Alibaba Group's financial report shows that for the quarter ended March 31, 2025, the Entertainment Group's revenue was 5.554 billion RMB (765 million USD), a year-on-year increase of 12%, mainly driven by the strong performance of film and entertainment businesses and the growth of Youku's advertising revenue. This quarter, the Entertainment Group's adjusted EBITA turned positive, mainly driven by Youku's profitability.

Beike: Q1 2025 net income was 23.3 billion RMB, up 42.4% year-on-year
Beike reported that its net income for Q1 2025 was 23.3 billion RMB, up 42.4% year-on-year. Beike's adjusted net profit attributable to ordinary shareholders for Q1 was 1.393 billion RMB, compared to 1.392 billion RMB in the same period last year.

Alibaba: Q4 revenue growth accelerated to 18%
Alibaba announced its March 2025 quarterly and fiscal year results, showing that the "user first, AI-driven" strategy continued to be effective, with core business growth accelerating. Driven by strong AI demand, Alibaba Cloud's quarterly revenue growth accelerated to 18%, with AI-related product revenue achieving triple-digit growth for seven consecutive quarters. Taotian Group's customer management income increased by 12% year-on-year, reflecting the effectiveness of investments in user experience and commercialization initiatives. AI+ cloud is becoming a new growth engine for Alibaba's long-term development.

Alibaba: Revenue for the quarter ended March 31 reached 236.45 billion RMB, up 7% year-on-year
Alibaba Group announced its fourth-quarter and full-year results for the 2025 fiscal year. The fourth fiscal quarter (quarter ended March 31) revenue was 236.45 billion RMB, up 7% year-on-year, with an estimated revenue of 237.91 billion RMB; fourth-quarter adjusted earnings per ADS were 12.52 RMB, compared to 10.14 RMB in the same period last year, with an estimated earnings of 12.71 RMB; adjusted EBITDA before interest, tax, depreciation, and amortization was 41.78 billion RMB, up 36% year-on-year, with an estimated EBITDA of 41.23 billion RMB. The adjusted net profit for the quarter was 29.85 billion RMB, up 22% year-on-year, with an estimated net profit of 29.39 billion RMB.

Youdao Q1 financial report: Operating profit of 104 million, exceeding market expectations, setting a historical high for the first quarter
NetEase Youdao released its unaudited financial report for the first quarter of 2025. The report shows that Youdao achieved a net income of 1.3 billion RMB in Q1 2025, with an operating profit of 104 million RMB, setting a historical high for the first quarter, up 247.7% year-on-year; the net outflow of operating cash narrowed by 34.7% year-on-year, significantly improving financial efficiency. In Q1 2025, Youdao continued to promote the deep application of AI technology in the learning service field, driving product intelligence upgrades based on the "Ziyue" large model. The learning service's net income for the first quarter reached 602 million RMB. In addition, Youdao AI subscription services also achieved strong growth, with sales reaching nearly 70 million RMB in the first quarter, up more than 40% year-on-year.

NetEase: Q1 2025 revenue was 28.8 billion RMB, up 7.4% year-on-year
NetEase released its financial report for the first quarter of 2025. The report shows NetEase's Q1 net income was 28.8 billion RMB, up 7.4% year-on-year; the previous year's Q1 income was 26.9 billion RMB. Under non-GAAP, the net profit attributable to the company's shareholders was 11.2 billion RMB. NetEase Inc.'s first-quarter gross profit was 18.5 billion RMB, with an estimated 17.57 billion RMB.

JD 618 will start on May 31, offering foreign trade goods and billion yuan subsidies
On May 15, it was learned that this year's JD 618 will officially start on May 31. In terms of products, JD.com launched the "200 billion export-to-domestic sales support plan," with thousands of enterprises entering substantial procurement discussions. During this year's JD 618, more foreign trade goods will be available on JD.com. In addition, the