GlobalFoundries sues TSMC for patent infringement, seeks ban on its products

Globalfoundries, though it has been setting up manufacturing facilities of its own in China, said in its trade commission complaint that TSMC recently …

Globalfoundries, though it has been setting up manufacturing facilities of its own in China, said in its trade commission complaint that TSMC recently completed construction on an advanced chip plant in that country that rides “the shift in global supply chains out of the U.S. and Europe into Greater China”.

The lawsuits include a suit at the US International Trade Commission requesting a ban on imports of infringing TSMC products in the US.

GlobalFoundries is suing a Taiwan semiconductor manufacturer for patent infringement- a move that could impact smartphone sales in the United States. Samsung and Globalfoundries had a chipmaking technology partnership.

GlobalFoundries has not been having a good run of late: After predicting it would be producing 7nm parts by 2018, the company switched chief executives before putting its 7nm plans on indefinite hold – forcing former owner AMD to switch to TSMC for its 7nm CPU and GPU production.

Globalfoundries (GF) has filed lawsuits in Germany and the USA against TSMC and 19 companies that rely on ICs being manufactured there, among which tech giants such as Apple, Google, Qualcomm and Samsung. TSMC does most of its manufacturing in Taiwan, though it has some plants in mainland China.

In a statement, GF highlighted how the suits are created to support investments in the U.S. and Europe. Given these processes are used to make more than half of TSMC’s chips, the firm is seeking “significant damages” which reports claim could reach billions of dollars. “TSMC has always respected intellectual property and we have developed all our technologies by ourselves”, she said. If the courts do issue the injunction requested by GlobalFoundries, products like the Apple iPhone and Apple iPad, and Android devices using Qualcomm’s Snapdragon chipsets could be banned from entering the U.S. As of past year, TSMC said that it is “manufacturing 10,436 different products using 261 distinct technologies for 481 different customers”. ‘For years, while we have been devoting billions of dollars to domestic research and development, TSMC has been unlawfully reaping the benefits of our investments.

In a move to focus on its funding in America amid an intensifying USA trade war with China over Beijing’s alleged unfair practices involving technology transfers and intellectual property, GlobalFoundries additionally mentioned the lawsuits are aimed at defending its US investment.

TSMC shares gained 0.60 percent to close at NT$250.00 (US$7.96) on the Taiwan Stock Exchange (TWSE), with 50.21 million shares changing hands on the local main board, where the benchmark weighted index ended up 0.32 percent at 10,387.23 points. The ITC in Washington, which protects USA markets from unfair trade practices, also has a reputation for speed, with investigations completed in 15 to 18 months. That means there will be an adequate supply of smartphones and other consumer electronics, it said in the court filings.

The Fab 8 plant in Malta, where GlobalFoundries has invested an estimated $12 billion since ground was broken in the Luther Forest Technology Campus a decade ago, employs about 3,000 people, in a facility GlobalFoundries says is making state-of-the-art chips.

Related Posts:

  • No Related Posts

Markets Live: Equity indices edge down, Sensex skids 160 points to 37291

RBL Bank has been the stock market darling ever since it hit the primary market in 2016. But the stock has come under severe pressure recently, …

12:25 pm

Oil prices drop on concern over US economy

Brent crude was up 64 cents, or about 1.1 per cent, at $59.28 a barrel at 0255 GMT. – Bloomberg

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of the US economy.

Brent crude was down 31 cents, or 0.5 per cent, at $60.18 a barrel by 0638 GMT, while US crude was down 18 cents, or 0.3 per cent, at $55.60 a barrel. Oil prices rose around 1.5 per cent in the previous session. Click here to read in full the global oil markets report.

12:15 pm

Indiabulls Housing Finance shares drop 8% on Nifty replacement

Shares of Indiabulls Housing Finance on Thursday dropped 8 per cent as Nestle India will replace the company in the benchmark Nifty 50 index from September 27.

The scrip tanked 7.97 per cent to Rs 420.80 on the NSE. Shares of Nestle India, however, rose 2.97 per cent to Rs 12,890.

Nestle India will replace Indiabulls Housing Finance in the benchmark Nifty 50 index from September 27, the National Stock Exchange (NSE) said on Wednesday.

“The replacement will also be applicable to Nifty 50 Equal Weight Index,” the bourse said in a release. – PTI

12:05 pm

Equities struggle on recession, Brexit fears

MSCI Asia-Pacific index up 1 per cent. File Photo – Reuters

Global bond yields flirted with record lows while stocks inched down on Thursday, as global recession worries from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.15 per cent, Singapore shares hit eight-month lows, while Japan’s Nikkei shed 0.07 per cent.

On Wall Street, the S&P 500 gained 0.65 per cent on Wednesday, due in part to gains in the energy sector following a rebound in oil prices. But US stock futures lost 0.2 per cent in Asia. Click here to read in full the Asian markets report.

11:55 am

USFDA nod bodes well for Unichem Labs

Unichem Laboratories has received ANDA approval from the USFDA for Solifenacin Succinate Tablets, 5-mg and 10-mg to market (a generic version of Vesicare tablets of Astellas Pharma US, Inc). The tablets are indicated for the treatment of overactive bladder with symptoms of urinary incontinence, urgency, and urinary frequency. Unichem will commercialise the product from its Goa plant. Shareholders of the company will closely monitor the execution.

11:45 am

Shell makes Series-B funding in PRESPL

Global energy major Shell, along with SBI Ventures Neev Fund has jointly made a Series-B funding of Rs 55 crore in Mumbai based bio-energy company- PRESPL.

This is the first investment of the Anglo-Dutch behemoth in Indian a bio-energy firm, and has been directly cleared by the Shell management in the Netherlands. Shell clocked $ 388.4 billion in revenues for 2018. Click here to read in full the report on Shell’s Series-B funding in PRESPL.

11:25 am

Govt sops boost sugar stocks

Stocks of sugar companies soared in an otherwise bearish market, with the Cabinet clearing fresh export concessions for sugar mills.

On Wednesday, the Cabinet approved incentives of Rs 6,268 crore ($876.74 million) to encourage cash-strapped mills to export 6 million tonnes of sugar in the sugar marketing year starting from October 1.

Shares of Bannari Amman Sugar rose two per cent to Rs 1,150, Dhampur Sugar Mills was up 0.15 per cent at Rs 151, Shashi Sugar rose 5 per cent at Rs 8, Dharani Sugar was up 17 per cent at Rs 8 and Bajaj Hindustan Sugar was up 4 per cent at Rs 6.

India is expected to produce 285 lakh tonnes of sugar in this sugar marketing year. With an inventory of 145 lakh tonnes, the total sugar supply is expected to be the highest ever at about 430 lakh tonnes, exerting huge pressure on prices. _ Our Bureau

11:10 am

Gold, silver open firm as rupee remains weak

Quick funds: With NBFCs turning cautions to lending, many customers are option for gold loans, say players. – iStock.com

Gold and silver prices opened with marginal gains in the futures market on Thursday as currency pressure prevailed.

On Thursday, the rupee weakened further to inch towards the Rs 72 levels against the dollar. The Indian rupee opened lower at Rs 71.90 and depreciated further to Rs 71.95 in the early trades.

This comes despite Wednesday’s Cabinet announcements triggering positive sentiment for the sugar industry and farmers for increased incomes in the coming days and better job prospects through the 100 per cent contract manufacturing decision. Click here to read in full the domestic gold market report.

11:00 am

Company News: Kalpataru Power Transmission

Kalpataru Power Transmission informed the exchanges on Wednesday that it received a notice from the World Bank alleging process violations in bids submitted by its transmission business on two projects in Africa more than 7 years ago. The company disagrees with the Bank’s position and intends to contest the proceedings vigorously, it added. Shares of Kalpataru Power slumped 6.95 per cent at ₹441.05 on the BSE on Wednesday.

10:45 am

Gold prices tick up on recession fears, trade uncertainty

Gold prices eked out gains on Thursday against the backdrop of recession fears, with traders tracking signs of progress on the US-China trade talks and global central banks for direction on interest rates.

Spot gold rose 0.2 per cent to $1,542.06 per ounce, as of 0331 GMT. On Wednesday, the bullion ended lower but remained around its over six-year peak of $1,554.56 hit on Monday. US gold futures were up 0.1 per cent at $1,550.80 an ounce. Click here to read in full the global gold report.

10:25 am

Rupee falls 17 paise against US dollar in early trade

Identification of currency notes is key to successful completion of cash-based transactions by visually impaired persons – FRANCIS MASCARENHAS

The rupee depreciated by 17 paise to 71.95 against the US dollar in early trade on Thursday, tracking a weak domestic equity market and persistent foreign fund outflows. Pessimism over US-China trade talks also put pressure on the domestic unit, forex dealers said.

However, a weak dollar against other major currencies overseas and softening crude prices restricted the rupee’s fall, they added. Click here to read in full the rupee report.

10:05 am

Sensex, Nifty trade on a weak note

The benchmark indices, the BSE Sensex and the NSE Nifty, were trading around 0.5 per cent lower in early session on Friday. The Sensex was at 37,291, down 160 points or 0.43 per cent lower, while the Nifty was at 11,003, down 42 points or 0.39 per cent weaker on its overnight close.

The top gainers on the Sensex were Sun Pharma, Vedanta, Tata Motors, Maruti and IndusInd Bank, while the laggards were YES Bank, ICICI Bank, HCL Tech, HDFC and Axis Bank.

The healthcare, metals, capital goods and auto sector shares rose between 0.3-0.55 per cent to prop up the BSE index, while the finance, capital goods, IT and technology sector shares weighed on the benchmark index, losing between 0.40-0.65 per cent during the session.

According to an agency report, the Sensex, which dropped over 250 points in early trade, was dragged by heavy selling in banking stocks ahead of the expiry of August derivatives amid weak cues from other Asian markets.

In the previous session, the BSE barometer settled 189.43 points, or 0.50 per cent, lower at 37,451.84. Similarly, the broader NSE Nifty fell 59.25 points, or 0.53 per cent, to 11,046.10.

During the day, investors can expect greater volatility in the market on the back of weekly and monthly expiration of the August futures and options (F&O) contracts, said Shrikant Chouhan, Head Technical Research, at Kotak Securities.

Foreign portfolio investors sold shares worth a net of Rs 935.27 crore on Wednesday, while domestic institutional investors purchased shares worth Rs 359.32 crore, provisional data showed.

The rupee, meanwhile, depreciated 18 paise against its previous close to trade at 71.95 in early session.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Korea and Japan were trading on a negative note in their respective late morning sessions.

Exchanges on Wall Street ended in the green on Wednesday.

Global oil benchmark Brent crude was trading 0.57per cent lower at 59.59 per barrel. (with inputs from PTI)

9:55 am

Oil prices pegged back by mounting concern over US economy

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of United States (US) economy. Click here to read in full the crude oil market report.

9:45 am

Yen on backfoot as returning confidence dulls safe-haven allure

The dollar held gains against the safe-haven yen on Thursday as ebbing recession worries soothed markets after earlier volatility although the pound nursed its losses as investors became increasingly worried about a hard Brexit. Click here to read in full the global forex markets report.

9:35 am

Why the stock of RBL Bank has fallen 40 per cent over the past month

RBL Bank has been the stock market darling ever since it hit the primary market in 2016. But the stock has come under severe pressure recently, losing about 40 per cent over the past month, since it announced its June quarter results. While the bank delivered strong performance, the management indicating possible deterioration in its asset quality in the next 2-3 quarters, had rattled investors. Click here to read in full the report on why the RBL stock has fallen 40 per cent over the past month.

9:25 am

Asian shares struggle on darkening global outlook

MSCI Asia-Pacific index up 1 per cent. File Photo – Reuters

Global bond yields flirted with record low levels while stocks struggled to recover on Thursday as economic turbulence from intensifying United States (US)-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours. Click here to read in full the global markets report.

9:15 am

Opening bell

The Sensex and the Nifty opened Thursday’s session in the red. The Sensex was at 37,283, down 168 points or 0.45 per cent lower, while the Nifty was at 10,988, down 57 points or 0.52 per cent weaker.

9.00 am

Today’s Pick: Tata Global Beverages (₹280): Buy

The stock of Tata Global Beverages jumped 5 per cent breaking above a key resistance at ₹270 on Wednesday. This rally has strengthened the short-term uptrend and also provides traders with a short-term horizon an opportunity to buy the stock at current levels.

The stock has been in an intermediate-term uptrend since early February 2019 low at ₹177. During the uptrend, the stock had decisively breached a key resistance at ₹220 in May and continued to trend upwards. Short-term trend is also up for the stock. Click here to read in full Today’s Pick on Tata Global Beverages.

Related Posts:

  • No Related Posts

Noah Holdings Limited Announces Unaudited Financial Results for the Second Quarter of 2019

Gopher Asset Management develops and manages private equity, real estate, public securities, credit and multi-strategy investments denominated in …

SHANGHAI, Aug. 28, 2019 /PRNewswire/ — Noah Holdings Limited (“Noah” or the “Company”) (NYSE: NOAH), a leading wealth and asset management service provider in China with a focus on global investment and asset allocation services for high net worth individuals and enterprises, today announced its unaudited financial results for the second quarter of 2019.

SECOND QUARTER 2019 FINANCIAL HIGHLIGHTS

  • Net revenues for the second quarter of 2019 were RMB871.6 million (US$127.0 million), a 9.3% increase from the corresponding period in 2018.

(RMB millions,

except percentages)

Q2 2018

Q2 2019

YoY Change

Wealth management

556.5

625.6

12.4%

Asset management

195.5

171.1

(12.5%)

Lending and other businesses

45.6

74.9

64.1%

Total net revenues

797.6

871.6

9.3%

  • Income from operations for the second quarter of 2019 was RMB251.9 million (US$36.7 million), a 13.9% increase from the corresponding period in 2018.

(RMB millions,

except percentages)

Q2 2018

Q2 2019

YoY Change

Wealth management

135.7

129.9

(4.3%)

Asset management

100.7

86.8

(13.8%)

Lending and other businesses

(15.1)

35.2

N.A.

Total income from operations

221.3

251.9

13.9%

  • Net income attributable to Noah shareholders for the second quarter of 2019 was RMB250.2 million (US$36.4 million), a 39.4% increase from the corresponding period in 2018.
  • Non-GAAP[1]net income attributable to Noah shareholders for the second quarter of 2019 was RMB263.4 million (US$38.4 million), a 6.4% increase from the corresponding period in 2018.

[1] Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, fair value changes of equity securities (unrealized), adjustment for sale of equity securities and net of relevant tax impact, if any. See “Reconciliation of GAAP to Non-GAAP Results” at the end of this press release.

SECOND QUARTER 2019 OPERATIONAL UPDATES

Wealth Management Business

The Company’s wealth management business offers financial products and provides value-added services to high net worth clients in China and overseas. Noah primarily distributes credit, private equity, public securities and insurance products denominated in RMB and other currencies.

  • Total number of registered clients as of June 30, 2019 was 283,655, a 28.6% increase from June 30, 2018.
  • Total number of active clients[2]during the second quarter of 2019 was 5,882, a 31.9% increase from June 30, 2018.
  • Aggregate value of financial products distributed during the second quarter of 2019 was RMB24.4 billion (US$3.5 billion), a 16.2% decrease from the second quarter of 2018.

Three months ended June 30,

2018

2019

Product type

(RMB in billions, except percentages)

Credit products

19.3

66.3%

9.8

40.0%

Private equity products

6.3

21.6%

7.7

31.5%

Public securities[3] products

2.8

9.7%

6.0

24.7%

Other products

0.7

2.4%

0.9

3.8%

All products

29.1

100.0%

24.4

100.0%

  • Average transaction value per active client[4] for the second quarter of 2019 was RMB4.1 million (US$0.6 million), a 36.4% decrease from the corresponding period in 2018.
  • Coverage network in mainland China included 306 service centers covering 83 cities as of June 30, 2019, up from 287 service centers covering 81 cities as of June 30, 2018.
  • Number of relationship managers was 1,428 as of June 30, 2019, a 4.5% decrease from June 30, 2018.

[2] “Active clients” for a given period refers to registered high net worth clients who purchase financial products distributed or provided by Noah during that given period.

[3] “Public securities products” refer to the financial products that invest in publicly traded securities, including stocks and bonds. This was previously referred to as “secondary market equity” financial products. Starting in January 2019, we included the transaction value of mutual fund products in the total transaction value.

[4] “Average transaction value per active client” refers to the average value of financial products that were purchased by active clients during the period specified.

Asset Management Business

The Company’s asset management business, Gopher Asset Management Co., Ltd. (“Gopher Asset Management”), is a leading alternative multi-asset manager in China also with international offices in Hong Kong and the United States. Gopher Asset Management develops and manages private equity, real estate, public securities, credit and multi-strategy investments denominated in Renminbi and other currencies.

  • Total assets under management as of June 30, 2019 were RMB180.8 billion (US$26.3 billion), a 5.7% increase from March 31, 2019 and an 11.9% increase from June 30, 2018.

Investment type

As of

March 31,

2019



Growth



Distribution/

Redemption

As of

June 30,

2019

(RMB billions, except percentages)

Private equity

101.1

59.1%

4.7

1.4

104.4

57.7%

Credit

38.8

22.7%

3.7

1.9

40.6

22.5%

Real estate

17.4

10.2%

2.7

1.0

19.1

10.6%

Public securities

6.9

4.0%

2.2

0.9[5]

8.2

4.5%

Multi-strategies

6.9

4.0%

1.6

8.5

4.7%

All Investments

171.1

100.0%

14.9

5.2

180.8

100.0%

[5] The distribution/redemption of public securities also includes market appreciation or depreciation.

Lending and Other Businesses

The Company’s lending business utilizes an advanced risk-management system to assess and facilitate short-term loans to high quality borrowers, often secured with collateral. The total amount of loans originated during the second quarter of 2019 was RMB2.8 billion, a decrease of 12.5% from the corresponding period of 2018. Other businesses include an online financial advisory platform and payment technology services.

Mr. Yi Zhao, Group President of Noah, said, “We are facing a stringent macro-economic situation in 2019, with the downturn of China’s credit cycle coinciding with geo-political tensions. This has led to short-term headwinds in our business. These challenges further solidify our dedication to transforming our credit business to NAV-based portfolios and strengthening our investment capabilities. We remain confident in the growth potential of both the wealth management and asset management industries in China, and believe we will benefit by executing the Company’s long-term strategy of serving Chinese high net worth clients with high-quality financial products and comprehensive services globally.”

SECOND QUARTER 2019 FINANCIAL RESULTS

Net Revenues

Net revenues for the second quarter of 2019 were RMB871.6 million (US$127.0 million), a 9.3% increase from the corresponding period in 2018, primarily driven by increased one-time commissions and other service fees, and partially offset by decreased performance-based income.

Wealth Management Business

  • Net revenues from one-time commissions for the second quarter of 2019 were RMB293.2 million (US$42.7 million), a 25.9% increase from the corresponding period in 2018, primarily due to sales of products with higher one-time commission rates.
  • Net revenues from recurring service fees for the second quarter of 2019 were RMB268.7 million (US$39.1 million), a 5.5% decrease from the corresponding period in 2018, mainly due to the maturity of certain products previously distributed with higher recurring fee rates.
  • Net revenues from performance-based income for the second quarter of 2019 were RMB2.0 million (US$0.3 million), compared with RMB11.8 million in the corresponding period of 2018, primarily due to a decrease in performance-based income from public securities products.
  • Net revenues from other service fees for the second quarter of 2019 were RMB61.7 million (US$9.0 million), an increase from RMB27.5 million in the corresponding period in 2018, primarily due to the growth of various value-added services Noah offers to its high net worth clients.

Asset Management Business

  • Net revenues from recurring service fees for the second quarter of 2019 were RMB163.9 million (US$23.9 million), relatively flat compared with the corresponding period in 2018.
  • Net revenues from performance-based income for the second quarter of 2019 were RMB5.6 million (US$0.8 million), compared with RMB27.3 million in the corresponding period of 2018, primarily due to a decrease in performance-based income from real estate products.

Lending and Other Businesses

  • Net revenues for the second quarter of 2019 were RMB74.9 million (US$10.9 million), a 64.1% increase from the corresponding period in 2018. The increase was primarily due to the service fee income generated from loans originated in the previous periods.

Operating Costs and Expenses

Operating costs and expenses for the second quarter of 2019 were RMB619.7 million (US$90.3 million), a 7.5% increase from the corresponding period in 2018. Operating costs and expenses primarily consisted of compensation and benefits of RMB437.5 million (US$63.7 million), selling expenses of RMB79.6 million (US$11.6 million), general and administrative expenses of RMB84.2 million (US$12.3 million) and other operating expenses of RMB51.1 million (US$7.4 million).

  • Operating costs and expensesfor the wealth management business for the second quarter of 2019 were RMB495.8 million (US$72.2 million), a 17.8% increase from the corresponding period in 2018, primarily due to an increase in compensation and benefits and provision of doubtful accounts.
  • Operating costs and expensesfor the asset management business for the second quarter of 2019 were RMB84.3 million (US$12.3 million), an 11.2% decrease from the corresponding period in 2018, primarily due to a decrease in general and administrative expenses.
  • Operating costs and expensesfor the lending and other businesses for the second quarter of 2019 were RMB39.7 million (US$5.8 million), a 34.6% decrease from the corresponding period in 2018, primarily due to a decrease in compensation and benefits as employees under non-lending businesses were restructured since the beginning of 2019.

Operating Margin

Operating margin for the second quarter of 2019 was 28.9%, increased from 27.7% for the corresponding period in 2018.

  • Operating margin for the wealth management business for the second quarter of 2019 was 20.8%, compared with 24.4% for the corresponding period in 2018.
  • Operating marginfor the asset management business for the second quarter of 2019 was 50.8%, compared with 51.5% for the corresponding period in 2018.
  • Income from operation for the lending and other businesses for the second quarter of 2019 was RMB35.2 million (US$5.1 million), compared with an operating loss of RMB15.1 million for the corresponding period in 2018.

Investment Income

Investment income for the second quarter of 2019 was RMB11.8 million (US$1.7 million), compared with RMB16.8 million for the corresponding period in 2018.

Income Tax Expenses

Income tax expensesfor the second quarter of 2019 were RMB67.6 million (US$9.9 million), a 17.3% increase from the corresponding period in 2018, primarily due to higher taxable income.

Net Income

Net Income

  • Net income for the second quarter of 2019 was RMB254.4 million (US$37.1 million), a 36.5% increase from the corresponding period in 2018.
  • Net margin for the second quarter of 2019 was 29.2%, up from 23.4% for the corresponding period in 2018.
  • Net income attributable to Noah shareholders for the second quarter of 2019 was RMB250.2 million (US$36.4 million), a 39.4% increase from the corresponding period in 2018.
  • Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2019 was RMB4.09(US$0.60) and RMB4.04(US$0.59), respectively, up from RMB3.13 and RMB3.00 respectively, for the corresponding period in 2018.

Non-GAAP Net Income Attributable to Noah Shareholders

  • Non-GAAP net income attributable to Noah shareholders for the second quarter of 2019 was RMB263.4 million (US$38.4 million), a 6.4% increase from the corresponding period in 2018.
  • Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2019 was 30.2%, compared with 31.0% for the corresponding period in 2018.
  • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2019 was RMB4.25(US$0.62), up from RMB4.12 for the corresponding period in 2018.

Balance Sheet and Cash Flow

As of June 30, 2019, the Company had RMB2,873.7 million (US$418.6 million) in cash and cash equivalents, compared with RMB2,869.6 million as of March 31, 2019 and RMB2,094.8 million as of June 30, 2018.

Net cash inflow from the Company’s operating activities during the second quarter of 2019 was RMB72.6 million (US$10.6 million), driven by profit earned from normal business operations and partially offset by payment of employee annual bonuses in the second quarter.

Net cash outflow from the Company’s investing activities during the second quarter of 2019 was RMB370.6 million (US$54.0 million), primarily due to various short-term investments made in the second quarter.

Net cash inflow from the Company’s financing activities was RMB277.8 million (US$40.5 million) in the second quarter of 2019, primarily due to capital contributions from non-controlling shareholders of a consolidated subsidiary.

UPDATE ON CREDIT FUNDS

As previously announced on July 8, 2019, certain credit funds managed by an affiliate of Gopher Asset Management provided supply chain financing involving companies related to Camsing International Holding Limited (“Camsing”). It is suspected that fraud has been committed by certain counterparties involved in such financings. Media in China has reported that a number of individuals were arrested due to these suspected fraudulent activities. The relevant criminal investigation is ongoing. Gopher Asset Management is assisting police and other government authorities in their investigation, and is pursuing all available actions, including filing civil litigation against the relevant debtor and guarantors, to protect the interests of the Company’s fund investors and to recover assets.

2019 FORECAST

In consideration of the macro-economic conditions in China, ongoing geo-political tensions, as well as the expected short-term impact resulting from the Camsing incident, the Company is updating its full year 2019 guidance. The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2019 will be in the range of RMB1.0 billion to RMB1.1 billion, the mid-point of which representing an increase of 3.9% compared with the full year 2018. This updated forecast represents a change from the Company’s previous guidance of a full year non-GAAP net income attributable to Noah shareholders in the range of RMB1.13 billion to RMB1.18 billion, and reflects management’s current business outlook and is subject to further change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company’s second quarter 2019 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details

Date/Time:

Wednesday, Aug 28, 2019 at 8:00 p.m., U.S. Eastern Time

Thursday, Aug 29, 2019 at 8:00 a.m., Hong Kong Time

Dial in details:

– United States Toll Free

+1-866-311-7654

– Mainland China Toll Free

4001-201-203

– Hong Kong Toll Free

800-905-945

– International

+1-412-317-5227

Conference Title:

Noah Holdings Second Quarter 2019 Earnings Call

Participant Password:

Noah Holdings Limited

A telephone replay will be available starting one hour after the end of the conference call until September 4, 2019 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10134397.

A live and archived webcast of the conference call will be available at Noah’s investor relations website under the News & Events section at ir.noahgroup.com.

DISCUSSION OF NON-GAAP MEASURES

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company’s earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation, fair value changes of equity investments (unrealized), adjustment for sale of equity securities and net of tax impact, if any. See “Reconciliation of GAAP to Non-GAAP Results” at the end of this press release.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measures used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies.

When evaluating the Company’s operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company’s management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.

ABOUT NOAH HOLDINGS LIMITED

Noah Holdings Limited (NYSE: NOAH) is a leading wealth and asset management service provider in China with a focus on high net worth individuals. In the first half of 2019, Noah distributed RMB52.4 billion (US$7.6 billion) of financial products. Through Gopher Asset Management, Noah had assets under management of RMB180.8 billion (US$26.3 billion) as of June 30, 2019.

Noah’s wealth management business primarily distributes credit, private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,428 relationship managers across 306 service centers in 83 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, United States, Canada, Australia and Singapore. The Company’s wealth management business had 283,655 registered clients as of June 30, 2019. As a leading alternative multi-asset manager in China, Gopher Asset Management manages private equity, real estate, public securities, credit and multi-strategy investments denominated in Renminbi and other currencies. The Company also provides lending services and other businesses, including online financial advisory platform and payment technology services.

For more information, please visit Noah at ir.noahgroup.com.

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the second quarter of 2019 ended June 30, 2019 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.8650 to US$1.00, the effective noon buying rate for June 28, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the outlook for 2019 and quotations from management in this announcement, as well as Noah’s strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah’s actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with financial products distributed to Noah’s investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; uncertainty regarding the outcome of the legal actions which are being or may be taken by the Company’s affiliates in connection with the Camsing situation, including its ability to recoup amounts extended as financing to third parties and the risk of potential claims by investors; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

— FINANCIAL AND OPERATIONAL TABLES FOLLOW —

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)

As of

March 31,

June 30,

June 30,

2019

2019

2019

RMB’000

RMB’000

USD’000

Assets

Current assets:

Cash and cash equivalents

2,869,638

2,873,740

418,607

Restricted cash

2,500

2,500

364

Short-term investments

501,646

747,710

108,916

Accounts receivable

330,770

292,971

42,676

Loans receivable

507,650

532,284

77,536

Amounts due from related parties

664,305

799,391

116,444

Loans receivable from factoring business

14,010

69,270

10,090

Other current assets

476,160

314,624

45,830

Total current assets

5,366,679

5,632,490

820,463

Long-term investments

1,056,387

1,141,506

166,279

Investment in affiliates

1,401,542

1,411,072

205,546

Property and equipment, net

332,570

315,788

46,000

Operating lease right-of-use assets, net

290,062

373,784

54,448

Non-current deferred tax assets

113,383

116,306

16,942

Other non-current assets

67,577

75,869

11,052

Total Assets

8,628,200

9,066,815

1,320,730

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses

727,796

461,099

67,167

Income tax payable

106,337

59,743

8,703

Deferred revenues

154,723

144,378

21,031

Other current liabilities

540,184

628,158

91,502

Total current liabilities

1,529,040

1,293,378

188,403

Operating lease liabilities, non-current

311,650

380,862

55,479

Non-current deferred tax liabilities

66,992

66,741

9,722

Other non-current liabilities

28,638

21,832

3,180

Total Liabilities

1,936,320

1,762,813

256,784

Equity

6,691,880

7,304,002

1,063,946

Total Liabilities and Equity

8,628,200

9,066,815

1,320,730

Noah Holdings Limited

Condensed Consolidated Income Statements

(In RMB’000, except for USD data, per ADS data and percentages)

(unaudited)

Three months ended

June 30,

June 30,

June 30,

Change

2018

2019

2019

Revenues:

RMB’000

RMB’000

USD’000

Revenues from others:

One-time commissions

161,791

193,937

28,250

19.9%

Recurring service fees

167,196

131,164

19,106

(21.6%)

Performance-based income

10,082

2,051

299

(79.7%)

Other service fees

76,883

139,940

20,385

82.0%

Total revenues from others

415,952

467,092

68,040

12.3%

Revenues from funds Gopher manages:

One-time commissions

72,805

101,104

14,727

38.9%

Recurring service fees

284,389

303,578

44,221

6.7%

Performance-based income

29,213

5,610

817

(80.8%)

Total revenues from funds Gopher manages

386,407

410,292

59,765

6.2%

Total revenues

802,359

877,384

127,805

9.4%

Less: VAT related surcharges

(4,757)

(5,786)

(843)

21.6%

Net revenues

797,602

871,598

126,962

9.3%

Operating costs and expenses:

Compensation and benefits

Relationship managers

(168,429)

(175,898)

(25,622)

4.4%

Others

(221,835)

(261,604)

(38,107)

17.9%

Total compensation and benefits

(390,264)

(437,502)

(63,729)

12.1%

Selling expenses

(120,472)

(79,557)

(11,589)

(34.0%)

General and administrative expenses

(68,510)

(84,203)

(12,266)

22.9%

Other operating expenses

(28,589)

(51,063)

(7,438)

78.6%

Government grants

31,432

32,587

4,747

3.7%

Total operating costs and expenses

(576,403)

(619,738)

(90,275)

7.5%

Income from operations

221,199

251,860

36,687

13.9%

Other income:

Interest income

18,633

29,225

4,257

56.8%

Interest expenses

(3,313)

(100.0%)

Investment income

16,754

11,847

1,726

(29.3%)

Other (expense) income

(21,357)

310

45

N.A.

Total other income

10,717

41,382

6,028

286.1%

Income before taxes and income from equity

in affiliates

231,916

293,242

42,715

26.4%

Income tax expense

(57,651)

(67,622)

(9,850)

17.3%

Income from equity in affiliates

12,087

28,829

4,199

138.5%

Net income

186,352

254,449

37,064

36.5%

Less: net income attributable to non-

controlling interests

6,867

4,266

621

(37.9%)

Net income attributable to Noah

shareholders

179,485

250,183

36,443

39.4%

Income per ADS, basic

3.13

4.09

0.60

30.7%

Income per ADS, diluted

3.00

4.04

0.59

34.7%

Margin analysis:

Operating margin

27.7%

28.9%

28.9%

Net margin

23.4%

29.2%

29.2%

Weighted average ADS equivalent[1]:

Basic

57,295,516

61,211,098

61,211,098

Diluted

60,747,298

61,966,245

61,966,245

ADS equivalent outstanding at end of period

58,498,187

61,259,417

61,259,417

[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs.

Noah Holdings Limited

Condensed Consolidated Income Statements

(In RMB’000, except for USD data, per ADS data and percentages)

(unaudited)

Six months ended

June 30,

June 30,

June 30,

Change

2018

2019

2019

Revenues:

RMB’000

RMB’000

USD’000

Revenues from others:

One-time commissions

381,332

410,580

59,808

7.7%

Recurring service fees

311,128

263,640

38,403

(15.3%)

Performance-based income

30,739

3,145

458

(89.8%)

Other service fees

136,872

285,317

41,561

108.5%

Total revenues from others

860,071

962,682

140,230

11.9%

Revenues from funds Gopher

manages:

One-time commissions

171,189

209,012

30,446

22.1%

Recurring service fees

538,456

591,734

86,196

9.9%

Performance-based income

68,261

9,368

1,365

(86.3%)

Total revenues from funds

Gopher manages

777,906

810,114

118,007

4.1%

Total revenues

1,637,977

1,772,796

258,237

8.2%

Less: VAT related surcharges

(9,456)

(11,314)

(1,648)

19.6%

Net revenues

1,628,521

1,761,482

256,589

8.2%

Operating costs and expenses:

Compensation and benefits

Relationship managers

(327,130)

(343,166)

(49,988)

4.9%

Others

(423,847)

(498,641)

(72,635)

17.6%

Total compensation and

benefits

(750,977)

(841,807)

(122,623)

12.1%

Selling expenses

(226,731)

(170,013)

(24,765)

(25.0%)

General and administrative

expenses

(124,439)

(142,753)

(20,794)

14.7%

Other operating expenses

(66,552)

(101,891)

(14,842)

53.1%

Government grants

35,920

49,367

7,191

37.4%

Total operating costs and

expenses

(1,132,779)

(1,207,097)

(175,833)

6.6%

Income from operations

495,742

554,385

80,756

11.8%

Other income:

Interest income

41,500

52,348

7,625

26.1%

Interest expenses

(10,182)

(430)

(63)

(95.8%)

Investment income

58,886

37,510

5,464

(36.3%)

Other expense

(20,194)

(1,618)

(236)

(92.0%)

Total other income

70,010

87,810

12,790

25.4%

Income before taxes and income

from equity in affiliates

565,752

642,195

93,546

13.5%

Income tax expense

(131,313)

(147,114)

(21,430)

12.0%

Income from equity in affiliates

12,739

46,952

6,839

268.6%

Net income

447,178

542,033

78,955

21.2%

Less: net (loss) income

attributable to non-controlling

interests

(772)

7,273

1,059

N.A.

Net income attributable to

Noah shareholders

447,950

534,760

77,896

19.4%

Income per ADS, basic

7.82

8.78

1.28

12.3%

Income per ADS, diluted

7.37

8.65

1.26

17.4%

Margin analysis:

Operating margin

30.4%

31.5%

31.5%

Net margin

27.5%

30.8%

30.8%

Weighted average ADS equivalent[1]:

Basic

57,295,516

60,892,670

60,892,670

Diluted

60,747,298

61,933,765

61,933,765

ADS equivalent outstanding at

end of period

58,498,187

61,259,417

61,259,417

[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents

two ADSs.

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

Three months ended

June 30,

June 30,

June 30,

Change

2018

2019

2019

RMB’000

RMB’000

USD’000

Net income

186,352

254,449

37,065

36.5%

Other comprehensive income, net of tax:

Foreign currency translation adjustments

52,539

54,495

7,938

3.7%

Fair value fluctuation of available for sale

Investment (after tax)

(2,469)

2,339

341

N.A.

Comprehensive income

236,422

311,283

45,344

31.7%

Less: Comprehensive income attributable

to non-controlling interests

6,835

4,199

612

(38.6%)

Comprehensive income attributable to

Noah
shareholders

229,587

307,084

44,732

33.8%

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

Six months ended

June 30,

June 30,

June 30,

Change

2018

2019

2019

RMB’000

RMB’000

USD’000

Net income

447,178

542,033

78,955

21.2%

Other comprehensive income, net of tax:

Foreign currency translation adjustments

17,676

23,637

3,443

33.7%

Fair value fluctuation of available for sale

Investment (after tax)

(1,093)

2,387

348

N.A.

Comprehensive income

463,761

568,057

82,746

22.5%

Less: Comprehensive (loss) income

attributable to non-controlling interests

(744)

7,416

1,080

N.A.

Comprehensive income attributable to

Noah
shareholders

464,505

560,641

81,666

20.7%

Noah Holdings Limited

Supplemental Information

(unaudited)

As of

June 30,

2018

June 30,

2019

Change

Number of registered clients

220,601

283,655

28.6%

Number of relationship managers

1,495

1,428

(4.5%)

Number of cities in mainland China under coverage

81

83

2.5%

Three months ended

June 30,

2018

June 30,

2019

Change

(in millions of RMB, except number of active clients and

percentages)

Number of active clients

4,461

5,882

31.9%

Transaction value:

Credit products

19,252

9,750

(49.4%)

Private equity products

6,287

7,658

21.8%

Public securities products

2,835

6,021

112.4%

Other products

678

934

37.7%

Total transaction value

29,052

24,363

(16.1%)

Average transaction value per active client

6.51

4.14

(36.4%)

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended June 30, 2019

Wealth

Asset

Lending and

Total

Management

Management

Other

Business

Business

Businesses

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Revenues from others

One-time commissions

193,567

370

193,937

Recurring service fees

129,698

1,466

131,164

Performance-based income

1,984

67

2,051

Other service fees

62,032

1,193

76,715

139,940

Total revenues from others

387,281

3,096

76,715

467,092

Revenues from funds Gopher

manages

One-time commissions

101,104

101,104

Recurring service fees

140,316

163,262

303,578

Performance-based income

5,610

5,610

Total revenues from funds

Gopher manages

241,420

168,872

410,292

Total revenues

628,701

171,968

76,715

877,384

Less: VAT related surcharges

(3,070)

(877)

(1,839)

(5,786)

Net revenues

625,631

171,091

74,876

871,598

Operating costs and expenses:

Compensation and benefits

Relationship managers

(175,851)

(47)

(175,898)

Others

(162,491)

(72,697)

(26,416)

(261,604)

Total compensation and

benefits

(338,342)

(72,697)

(26,463)

(437,502)

Selling expenses

(70,838)

(4,344)

(4,375)

(79,557)

General and administrative

expenses

(63,236)

(13,778)

(7,189)

(84,203)

Other operating expenses

(32,179)

(2,575)

(16,309)

(51,063)

Government grants

8,821

9,144

14,622

32,587

Total operating costs and

expenses

(495,774)

(84,250)

(39,714)

(619,738)

Income from operations

129,857

86,841

35,162

251,860

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended June 30, 2018

Wealth

Management

Business

Asset

Management

Business

Lending and

Other

Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Revenues from others

One-time commissions

161,421

370

161,791

Recurring service fees

158,469

8,727

167,196

Performance-based income

10,082

10,082

Other service fees

27,613

2,735

46,535

76,883

Total revenues from others

357,585

11,832

46,535

415,952

Revenues from funds Gopher manages

One-time commissions

72,805

72,805

Recurring service fees

127,264

157,125

284,389

Performance-based income

1,739

27,474

29,213

Total revenues from funds Gopher

manages

201,808

184,599

386,407

Total revenues

559,393

196,431

46,535

802,359

Less: VAT related surcharges

(2,932)

(924)

(901)

(4,757)

Net revenues

556,461

195,507

45,634

797,602

Operating costs and expenses:

Compensation and benefits

Relationship managers

(167,533)

(896)

(168,429)

Others

(121,290)

(68,923)

(31,622)

(221,835)

Total compensation and benefits

(288,823)

(68,923)

(32,518)

(390,264)

Selling expenses

(110,686)

(5,361)

(4,425)

(120,472)

General and administrative expenses

(41,550)

(19,235)

(7,725)

(68,510)

Other operating expenses

(7,745)

(4,725)

(16,119)

(28,589)

Government grants

27,994

3,418

20

31,432

Total operating costs and expenses

(420,810)

(94,826)

(60,767)

(576,403)

Income (loss) from operations

135,651

100,681

(15,133)

221,199

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)

Three months ended June 30, 2019

Wealth

Management

Business

Asset

Management

Business

Lending

and Other

Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Mainland China

420,540

145,992

76,715

643,247

Hong Kong

178,002

23,705

201,707

Others

30,159

2,271

32,430

Total revenues

628,701

171,968

76,715

877,384

Three months ended June 30, 2018

Wealth

Management

Business

Asset

Management

Business

Lending

and Other

Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Mainland China

441,408

146,322

46,535

634,265

Hong Kong

117,985

50,109

168,094

Total revenues

559,393

196,431

46,535

802,359

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In RMB, except for per ADS data and percentages)

(unaudited)[6]

Three months ended

June 30,

June 30,

Change

2018

2019

RMB’000

RMB’000

Net income attributable to Noah shareholders

179,485

250,183

39.4%

Adjustment for share-based compensation

20,241

22,994

13.6%

Less: gains (loss) from fair value changes of equity

securities (unrealized)

(49,063)

10,755

N.A.

Add: gains from sales of equity securities (realized)

3,338

4,951

48.3%

Less: tax effect of adjustments

4,520

3,977

(12.0%)

Adjusted net income attributable to Noah shareholders

(non-GAAP)

247,607

263,376

6.4%

Net margin attributable to Noah shareholders

22.5%

28.7%

Non-GAAP net margin attributable to Noah shareholders

31.0%

30.2%

Net income attributable to Noah shareholders per ADS,

diluted

3.00

4.04

34.7%

Non-GAAP net income attributable to Noah shareholders

per ADS, diluted

4.12

4.25

3.2%

[6] Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the

effects of all forms of share-based compensation, fair value changes of equity securities (unrealized),

adjustment for sale of equity securities and net of tax impact, if any.

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In RMB, except for per ADS data and percentages)

(unaudited)

Six months ended

June 30,

June 30,

Change

2018

2019

RMB’000

RMB’000

Net income attributable to Noah shareholders

447,950

534,760

19.4%

Adjustment for share-based compensation

42,942

52,610

22.5%

Less: gains (loss) from fair value changes of equity

securities (unrealized)

(14,275)

19,517

N.A

Add: gains from sales of equity securities (realized)

3,338

9,836

194.7%

Less: tax effect of adjustments

6,803

9,691

42.5%

Adjusted net income attributable to Noah shareholders

(non-GAAP)

501,702

567,998

13.2%

Net margin attributable to Noah shareholders

27.5%

30.4%

Non-GAAP net margin attributable to Noah shareholders

30.8%

32.2%

Net income attributable to Noah shareholders per ADS,

diluted

7.49

8.65

15.5%

Non-GAAP net income attributable to Noah shareholders

per ADS, diluted

8.37

9.18

9.7%

SOURCE Noah Holdings Limited

Related Links

http://ir.noahgroup.com

Related Posts:

  • No Related Posts

Why Greenland is really about China

The data from these projects also add “fuel” to Chinese artificial Intelligence objectives, since such technology requires large amounts of new data to …

President TrumpDonald John TrumpOur justice system must reward successFormer Biden economic adviser: ‘I really like a lot of’ Warren’s tax proposalsRoy Moore calls for Omar to go back from ‘whence she came’MORE raised eyebrows and set off a few alarms when he recently expressed interest in purchasing Greenland. But the real story underlying this interest is that China has long understood the relationship between commercial infrastructure projects and global power, and it has weaponized many of its commercial relationships. Washington has yet to develop a strategy to counter Beijing. President Trump reportedly became concerned when he learned about the extent of Chinese investments in this strategic island, which lies at a critical juncture in the North Atlantic, contains rare earth mineral deposits, and is home to a United States Air Force base that is central to American homeland defense architecture.

China has recognized the importance of Greenland since at least 2015, when its state enterprises began to invest in mining companies there. China has invested in at least four key mining operations in Greenland, adding to its dominant position in the rare earth element market. Rare earth elements have unique properties essential to high technology products. They are vital in critical defense applications like fighter jet engines, missile guidance systems, as well as satellite communications systems, not to mention mobile phone and electric car motors. While the United States could once rely on its own resources for rare earth minerals, it is now almost fully dependent on imports, mainly from China.

Chinese rare earth investments are just one example, close to American shores, of the broader Belt and Road Initiative announced in 2013. This trillion dollar effort is a sophisticated land and sea strategy designed to use physical projects such as railroads, ports, and mines to the advantage of Chinese business and military interests. These physical lodgments in turn will generate political advantages. The provision of loans, capital, equipment, and technical expertise shapes local politics and creates dependencies. The data generated from these projects adds “fuel” to Chinese artificial Intelligence objectives, since such technology requires large amounts of new data to refine its capabilities and applications such as facial recognition, which allows for greater social control.

ADVERTISEMENT

Moreover, funding, building, and operating large infrastructure projects allows China to set standards that other international players must follow. Chinese acquisitions of commercial ports have shifted the development of global supply chains in favor of the mega ships operated by Chinese companies. Chinese infrastructure investments in Greenland and around the world are the equivalent of its technology investment strategies. For decades, China has implemented a technology transfer strategy that includes targeting American companies working on areas key to military applications like artificial intelligence and robotics. China combines this “venture investing” with an aggressive industrial espionage apparatus.

These are some examples of operating concepts central to the global commercial approach that Beijing has taken. Once implemented, these actions provide a foundation for Chinese influence and control below the level of overt military power. It is a form of 21st century strategic depth. The United States must do a much better job of integrating its capabilities to succeed in this competitive geopolitical landscape. We must develop our own strategic operating concepts and new models to counter authoritarian states that use their national resources to the advantage of their state enterprises, which then compete unfairly against Western businesses that must generate market returns for investors, and report on their activities under transparent legal and regulatory regimes.

In response, the White House should consider forming a “connect the dots” task force of business and government leaders to identify the key strategic opportunities around the world, from infrastructure to energy to seaports, and ensure that information is shared among agencies to target opportunities before they are lost, and identify areas where we could recover losses quickly. As a start, we might focus on operating concepts to regain control over rare earth minerals, ensure that access to seaports remains open to American and other Western interests, and defend our advantage in foundational technologies such as 5G cellular networks.

Some nascent efforts that could contribute to these new American operating concepts exist. These include the new Development Finance Institution that will modernize development finance, and the Defense Department using trusted sources of capital to invest in important emerging technologies. But in order to have strategic effects, these specific initiatives must be part of integrated operating concepts.

Such a task force need not take months and months. The fact is that the knowledge is out there, embedded in various government agencies and across the business community. It is simply not being pulled together and coordinated. As a result, the United States is failing to maximize all of its considerable economic and political strengths. The time to start is now.

Nadia Schadlow is a senior fellow at the Hudson Institute in Washington and a former White House deputy national security adviser for strategy.

Related Posts:

  • No Related Posts

5G Infrastructure Market Size, Share, Business Growth, Applications, Competitive Landscape …

According to international research report on 5G Infrastructure Market provides an deep analysis on market-size, shares supply-demand analysis, …

According to international research report on 5G Infrastructure Market provides an deep analysis on market-size, shares supply-demand analysis, sales value and volume study of different industries combined with division study, with respect to important topographical regions. This report also consists of the current evolution in the global industry and crucial elements that affects the overall growth of the 5G Infrastructure market. The 5G Infrastructure market has also been categorized depending upon various sections. The important sections are also further divided into 5G Infrastructure sub-sections which provided the better understanding of the whole international market and assist to make a conclusive discernment on 5G Infrastructure business.

Company provides detailed analysis of market and future aspects of 5G Infrastructure Market. It focuses on critical and significant data which makes the research a very important tool for experts, analysts and managers to get ready-to-access analysis. Report provides inclusive analysis of 5G Infrastructure market size development forecast from 2019-2024.

Get Sample Copy of Business Report now @ https://www.reportsintellect.com/sample-request/607605

The report Global 5G Infrastructure Market intends to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyses the emerging trends along with major drivers, challenges and opportunities in the global Disinfectant Gels market. The report about the Disinfectant Gels industry covered the markets by analyzing the top players participating in the market. To make this report an exceptional one, several parameters are models are used which include SWOT analysis; Porters five force model, and pestle analysis.

Top Key Players in 5G Infrastructure Market:

• Analog Devices Inc.

• Cavium

• Cisco Systems Inc.

• Ericsson

• Fujitsu

• Huawei Technologies

• Intel Corporation.

The report covers market dynamics affecting the market during the forecast period. Moreover, the report analyses the competitive situation, geographic trends, and opportunities within the markets with regard to all geographic regions. The report conjointly includes the detailed company profiles of the key players in the market beside their market strategies. The report additionally provides pest analysis of all five regions along with the SWOT analysis for all company profiled in the report.

Market section by Type:

 Software Defined Networking

 Network Function Virtualization

 Mobile Edge Computing

 Fog Computing

Market section by Applications:

 Medical Alert System

 Access Control & Management Solution

 Intruder Alarm Solution

 Intercom System

 Video Surveillance Solutions

 Fire Protection System

 Integrated Security Solution

Get Special DISCOUNT on Report @ https://www.reportsintellect.com/discount-request/607605

Table of Contents

1 5G Infrastructure Market Overview

1.1 Product Overview and Scope of 5G Infrastructure

1.2 Classification of 5G Infrastructure by Types

1.2.1 Global 5G Infrastructure Revenue Comparison by Types (2017-2023)

1.2.2 Global 5G Infrastructure Revenue Market Share by Types in 2017

1.2.3 Physiological Biometrics

1.2.4 Behavioral Biometrics

1.3 Global 5G Infrastructure Market by Application

1.3.1 Global 5G Infrastructure Market Size and Market Share Comparison by Applications (2013-2023)

1.3.2 IT And Telecom

1.3.3 BFSI

1.3.4 Automotive

1.3.5 Healthcare

1.3.6 Education

1.3.7 Others

1.4 Global 5G Infrastructure Market by Regions

1.4.1 Global 5G Infrastructure Market Size (Million USD) Comparison by Regions (2013-2023)

1.4.1 North America (USA, Canada and Mexico) 5G Infrastructure Status and Prospect (2013-2023)

1.4.2 Europe (Germany, France, UK, Russia and Italy) 5G Infrastructure Status and Prospect (2013-2023)

1.4.3 Asia-Pacific (China, Japan, Korea, India and Southeast Asia) 5G Infrastructure Status and Prospect (2013-2023)

1.4.4 South America (Brazil, Argentina, Colombia) 5G Infrastructure Status and Prospect (2013-2023)

1.4.5 Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa) 5G Infrastructure Status and Prospect (2013-2023)

1.5 Global Market Size of 5G Infrastructure (2013-2023)

Reasons to Purchase the Report:

  • To gain insightful analyses of the market and have comprehensive understanding of the global market and its commercial landscape.
  • Assess the production processes, major issues, and solutions to mitigate the development risk.
  • To understand the most affecting driving and restraining forces in the market and its impact in the global market.
  • Learn about the market strategies that are being adopted by leading respective organizations.
  • To understand the future outlook and prospects for the market.
  • Besides the standard structure reports, we also provide custom research according to specific requirements.

About Us:

Reports Intellect is your one-stop resolution for everything associated with research and market intelligence. We’ve got a bent to understand the importance of market intelligence and it’s want in today’s competitive world.

Our skilled team works laborious to fetch the foremost authentic analysis reports backed with impeccable info figures that guarantee outstanding results on each occasion for you.

So whether or not or not it’s the most recent report from the researchers or a custom demand, our team is here to assist you within the very best technique.

Contact Us:

Sales@reportsintellect.com

PH – + 1-706-996-2486

US Address:

225 Peachtree Street NE,

Suite 400,

Atlanta, GA 30303

Related Posts:

  • No Related Posts