Chinese stocks in the U.S. have been having wild volatility recently due to audit issues and Beijing’s relationship with Kremlin. With the audit issues giving rise to delisting concerns and more stock being added for delisting consideration, Chinese stocks have had a rough time. Despite such tumulus times for the stock, sudden outbursts have also been known to take place over the slightest news of positive news lending a shoulder. Issues over the U.S. requiring a regulatory audit of Chinese companies by its own authorities have been ongoing for quite some time now.
On Thursday, March 30, 2022, news was reported that a further five Chinese stocks have been added to the list of equities under consideration for delisting. While the news gave rise to further fears, another report eased the situation. According to South China Morning Post’s report, China is leaning toward a compromise. China is considering a new approach and the audit data is expected to be vetted for state secrets before being handed over for review by U.S. auditors. Shining a bright light of hope on the gloomy investors, the news resulted in a bullish trend in Chinese stocks.
Bilibili Inc. (BILI)
China’s youth’s online entertainment brand, Bilibili Inc. (BILI) is also enjoying good rebound energy on the positive trend in the market. Starting its bullishness on Friday, the stock has continued its positive momentum into today’s premarket; April 4, 2022. At the last check, BILI was trending at a value of $30.52 in the premarket after adding 10.50%. The stock had closed the previous trading session at a price of $27.62 with an increase of 7.97%.
The current rise in the stock follows a downfall of over 40% YTD, while the year-ago’s decline stood at almost 75%.
Latest Financials Analysis
The so-called YouTube of China, Bilibili recently reported its fiscal 2021 results. More than doubling compared to 2020, BILI’s Q4 2021 net revenues were RMB5,780.8 million (+51% YOY). The most noticeable among the various segments of revenue was Advertising with YOY growth of a mammoth 120%.
Moreover, the company also improved its gross profit in the quarter with an increase of 16% YOY to RMB1,097.8.
While the net loss was RMB2,095.8 million, the adjusted value resulted in RMB1,659.8 million. Comparatively, the year-ago quarter’s adjusted net loss was RMB691.5 million.
Thus, the quarter’s basic and diluted loss per share expanded to RMB5.34 in comparison to RMB2.34 in Q4 2020.
At the end of the quarter, BILI’s cash, cash equivalents, time deposits, and short-term investments totaled RMB30.2 billion.