Floods Reach Beijing: Water Up to Waist Level, and the Sewer Under Lotus Bridge Becomes a Fountain

Floods reach Beijing, water up to waist level, and the sewer under Lotus Bridge becomes a fountain. The mainland's snack king sees profit plunge by 89%. Stock price falls below issue price. Young Chinese people have no money. Consumption plummets on Chinese Valentine's Day. Floods and heavy rains are sweeping through large areas of China. The heavy rainfall combined with dam breaks and reservoirs continuously releasing water day and night has worsened the flood situation in many places. Flood waters have swept away many villages and submerged numerous cities and plains. The loss of life and property is immeasurable. In recent days, the floods have reached Beijing, the political, economic, and financial center of China. Heavy rains in Beijing and surrounding areas have caused widespread flooding. Some parts of Beijing have accumulated significant amounts of water. Baoding and Yanjiao in Hebei are also flooded, and flash floods broke out in Jixian County, Tianjin. On August 9th, heavy rains hit Beijing and Hebei. Videos broadcast by Beijing Radio and Television Station showed that many areas in Beijing were flooded. Driving near Lianhua Bridge was akin to sailing, and at one sewer entrance, water gushed out like a fountain. Online videos also show that water in some low-lying areas of the city is over one meter deep. In one video, a man is seen standing in water that reaches his upper abdomen. The location is suspected to be outside the gate of Yuxin Jiayuan Community. Public records indicate that Yuxin Jiayuan is located on Yuxin Zhuang Road, Shanghai Town, Changping District, Beijing. Beijing's official media reported that from 8 a.m. on the 9th to 2 a.m. on the 10th, the average precipitation in the city was 101.7 mm, with the urban area averaging 101.5 mm, reaching the level of heavy rain. The maximum precipitation in the urban area occurred in Aerospace City, Haitian District, with 214.9 mm. The city's highest precipitation was recorded in Ximaguzhuang Daxing at 250.6. The maximum hourly precipitation intensity was in Yujiaotongzhou at 107.8 mm from 10 p.m. to 11 p.m. on the 9th. In addition to Beijing, videos show that Baoding City, Hebei Province, and Yanjiao, Hebei Province, close to Beijing, were also flooded due to heavy rain. Furthermore, on August 10, Jixian County, Tianjin, experienced heavy rain for two consecutive days, resulting in flash floods. After the flash floods passed through some villages and towns, the ground was covered in silt. Large trees were knocked down, vehicles were washed away, and some even fell into ditches. The mainland's snack king sees profit plunge by 89%. Stock price falls below issue price. The Chinese economy is in serious recession, with consumption plummeting. People have run out of money to spend and are saving every penny for essential living expenses. The consumer goods, restaurant, and entertainment sectors are witnessing a sharp decline in revenue and profits. This is an irreversible trend, and the case of the snack king bestore a typical example. Bestore, known as the snack king in China, saw its net profit fall by 88.91% in the first half of this year. Despite continuously improving its business strategy, Bestore has not achieved the desired results in the face of an ever-evolving market. According to the unaudited performance forecast for the first half of 2024 released by Bestore, the company's net profit in the first half of the year was between 21 million yuan and 30 million yuan. This is 159.31 million yuan to 168.31 million yuan less than the same period last year, marking a year-on-year decrease of 84.15% to 88.91%. Bestore's performance has been disappointing since 2022. Although the company made a significant price cut in December 2023, its performance has not improved. From 2020 to 2022, Bestore faced the dilemma of increasing revenue but declining profit. During this period, Bestore's revenue increased from 7.894 billion yuan to 9.490 billion yuan. Net profit attributable to the parent company decreased from 344 million yuan to 335 million yuan. In 2023, Bestore's revenue began to decline, and the semi-annual performance forecast released this year indicates that its net profit attributable to shareholders of listed companies may decrease by more than 80%. Amid this backdrop, Bestore has begun to suffer capital reduction. At the end of 2023, when Bestore announced a price cut, its stock price was 21.32 yuan per share. This was a significant drop from its peak of 86.52 yuan per share in July 2020, with its market value evaporating by 26 billion yuan. As of August 5th, Bestore's stock price had fallen to just 11.02 yuan per share, with a market value of 4.419 billion yuan, dropping below the issue price of 11.90 yuan per share. In response, one Tencent netizen remarked, It's mainly because I don't have money to spend. Another netizen, B, commented, It's too expensive to buy. Speechless added, I've forgotten how long it's been since I bought snacks. I don't even think about it when I see them. In this world, we need to save every penny. Netizen, Don't think about the past, don't fear the future, said, It's getting harder and harder to make money, so we can only save. Netizen Dongdong asked, Why is the performance so bad after listing, but it was soaring before? Young Chinese people have no money. Consumption plummets on Chinese Valentine's Day. The seventh day of the seventh month of the Chinese lunar calendar is the Qiqi Festival, also known as Chinese Valentine's Day. Today, August 10th, the topic Chinese Valentine's Day consumption plummets. Do young people have to pay a love tax? Has been trending, sparking heated discussions. Many people responded, The economic situation is bad. The unemployment rate is high and money is hard to come by. How can there be spare money for romance? Every Chinese Valentine's Day, flowers, movies, travel, gifts, hotels, 99 roses, 999 roses have become rituals for young couples. However, with the recession of China's economy, the romance of Chinese Valentine's Day is no longer a priority for young people. The plummeting consumption on this day shows that young people are unwilling to spend on it. On social platforms, many flower shop owners are puzzled. What's going on? Why is no one sending flowers on Chinese Valentine's Day anymore? It's not just Chinese Valentine's Day. Many industries related to love and marriage are also facing a difficult period. Diamond imports fell by 29.55% year on year, and by 39.6% compared to 2021, almost returning to 2017 levels. On August 2nd this year, the Ministry of Civil Affairs of the Chinese Communist Party released data showing that 3.43 million couples registered for marriage nationwide in the first half of 2024. This is 498,000 fewer than last year, setting a new low in recent years. Since 2014, the marriage rate has entered a declining decade. Data from the first half of this year show that men and women of marriageable age no longer want to get married. Reports indicate that because young people are not giving wedding gifts, the candy industry has lost a significant portion of its market. Since young people are not holding wedding banquets, the liquor industry has also taken a hit with sales dropping by half. The decline in the romantic economy during the Qiqi Festival is just a small part of this broader trend. Against the backdrop of economic downturn, the topic was trending on the Qiqi Festival, resonating with many. Some people said, Things are different now. The current economic situation is bad. You still need money to celebrate holidays. With consumption so high now, you just can't afford expensive things. To put it bluntly, the economy is bad. The economy of pleasing others is getting worse. When you have no money, the first thing you cut is the part you give to others. It's likely that gift consumption will generally downgrade. People are increasingly inclined to use the little money they have to please themselves. Why is this happening? Because everyone has no money. Wallets are getting thinner, and it will be harder and harder to make money in the future. So many people are rationally choosing to save money in revenge. In recent years, the economy has been down. It is hard to find a job, and the unemployment rate is high. How can there be a sense of ritual when you have no money? The reality is that it is difficult to make money. And there is no extra money on hand. Because I can't find a job, and I don't feel like dating, so consumption plummeted. It's not just because of the bad economy. If you have money, you spend it. If you don't have money, you can't spend it. It's that simple. I'm unemployed and have no money. I don't even want to date anyone, let alone celebrate Valentine's Day. I just want to support myself. Let the young people go. Young people are no longer buying houses, getting married, having children, consuming. Young people are tired. Currently, China's economic outlook is bleak, and the youth unemployment rate remains high. Due to difficulties in starting businesses, finding jobs, paying mortgages and car loans, and dealing with high prices, people are hesitant to spend money. Many young people are on the verge of anxiety and collapse, and are forced to lie flat. China's attraction of foreign investment weakens hidden unemployment rate, empty restaurants. In China, the workforce is facing unprecedented challenges amidst a steep economic downturn, resulting in slashed wages, widespread job losses, soaring unemployment rates, and a surge in poverty. These hardships are not confined to the unskilled labor force. Even the middle class is grappling with financial instability. The distressing sight of migrant workers, once gainfully employed, now relegated to sleeping rough on urban streets, has become a distressingly common occurrence. Furthermore, poignant tales of intellectuals and middle-class citizens facing bankruptcy, compelled to sell their homes due to job losses or drastic pay cuts, are stirring deep concerns across the nation. Social media platforms are abuzz with discussions surrounding this pressing issue. Do you guys feel like we're back to the era of $484 monthly wages from 10 years ago? In third-tier small cities, the average salary is just over $400, with many not even reaching that amount. Some jobs don't even offer the basic five social insurance and one housing fund benefits. Despite searching the entire city, they couldn't find many jobs that provide these benefits. The current job market has specific preferences and restrictions. They avoid candidates with low qualifications, no experience for fresh graduates, or individuals over 30. They also hesitate to hire those who frequently change jobs, preferring stability. Local candidates with drive are preferred, but they are wary of those demanding high salaries, whether it's $5,000 or $10,000. Marital status also plays a role, with concerns about wedding or maternity leaves. The reluctance to hire individuals over 35 stems from the perception of lower energy levels and increased family responsibilities. Ultimately, many jobs require basic skills, leading to a preference for hiring younger candidates, who can be paid less. Gucci faces headwinds in Chinese market. Where does the luxury industry go from here? As China's economy faces challenges and consumers tighten their belts, concerns about slowed growth in the Chinese market are rising among luxury brands. Last week, iconic fashion luxury brand Gucci encountered headwinds in China, prompting further considerations for luxury businesses about their future direction. These business insights indicate that the expected surge in consumption from wealthy individuals in China following the end of the Chinese Communist Party's zero-tolerance policy has not materialized. Rising unemployment rates and a sluggish real estate market have dampened consumer confidence, while deflationary pressures have intensified concerns about growth in the Chinese consumer market, ultimately forcing luxury brands, including Kering SA, to reconsider how they conduct business in China. The bar for attracting Chinese consumers has also been raised, with some consumers disapproving of Gucci's new designs. A source familiar with the matter, who requested anonymity due to discussing sensitive issues, told Bloomberg that Gucci's online sales in China have significantly declined in recent months, including sales on its official website and the Tmall e-commerce platform. Tonight, I don't know what's going on, but business is slow, and there's nobody around. I just went out for a stroll, checked out some other shops, but they were all empty too. Then I looked at Meituan, and every nearby place was offering group discounts, except for mine. Managed to do a few orders in the afternoon, relying on lunchtime business. Where did everyone go? Maybe I should offer group discounts too? Just went out for another walk, and guess what? Rui Xing has closed so early. Where have all the people of this bustling Shanghai gone? The restaurant market environment in Shanghai feels like it couldn't get any worse. How's your place holding up? Regardless of severity, China's economic slowdown is impacting brands beyond Gucci. A knowledgeable source informed Bloomberg that while top luxury brands like Rolex, Hermes, Chanel, and Louis Vuitton saw double-digit growth in popular destinations for Chinese shoppers such as Hong Kong in 2023, their sales began to slow down as early as October last year, with prices of second-hand luxury watches dropping by 40 percent compared to the same period last year. Back in the new century shopping plaza, there used to be so many people. It was bustling and crowded. But now, it's desolate. In addition to disappointing results in the Chinese market, luxury brands, led by Erwin Ramborg, a luxury goods analyst at HSBC Bank, stated in a report on Friday that the demand situation in China proves to be quite challenging. They further wrote that there is also a disappointing downturn in Hong Kong, Macau, and Singapore, as Chinese tourists, though numerous, seem to spend less. Some brands may be forced to find ways to reduce their reliance on China. A report by consulting firm Bain & Company predicts that the growth of luxury goods sales in China will slow to single digits this year, compared to a growth of 12 percent in 2023. Bruno Lanz, co-author of the Bain report, said that during uncertain times, Chinese consumers tend to prefer luxury goods that are easier to retain value. He said this is why brands owning such products outperform those launching seasonal brands. It's hard to believe unless you see it with your own eyes. Suzhou, once known for being bustling with economic strength and considered a paradise for laborers, is not as vibrant as it used to be. Despite its previous reputation, the number of people coming to Suzhou for work has decreased significantly in recent years. The streets are eerily quiet, with few people out and about, even for shopping. Normally, at this time of year, there would be crowds of people everywhere, dragging their luggage around. The area around job agencies used to be packed, but now there are more people looking to hire than those seeking jobs. The loss of migrant workers is severe, and the physical retail sector has taken a nosedive. It's really tough to deal with. What does the hotpot tourism reflect? The rise of hotpot tourism in Tianchui reflects the challenges faced by China's economy, particularly subdued consumption. Encouraging consumer spending, especially amid high unemployment rates, has long been a challenge for the authorities. The trend was ignited by online videos in early February, such as Tianchui Streetside Gansu Spicy Hot Pot, which gained significant traction. However, similar to the previous popularity of Zibo BBQ, which led to individuals borrowing money to start their own businesses, the hotpot trend may face a similar fate, with a decline in tourists and closures of establishments after a short-lived period of success. Even as a small restaurant owner, I can sense that there's an issue with consumer spending in the market. People are reluctant to spend money. I don't know where everyone has gone in the past couple of years. Three sales reps came by early this morning to show me some liquor for my restaurant. I told them that as a small eatery, I don't need much. They should go to the supermarkets instead. One of them said the supermarkets were out of stock, so they had to come to me. Even the supermarket shelves are empty, and things aren't moving. I suggested they reduce their trips and come to our town instead. They said that if they don't meet their targets, their basic salary will be in jeopardy. It's tough to deal with them. I explained to them that my restaurant sells fewer items, unlike supermarkets. Also, I've been struggling to make sales lately. Not just them, even I feel like I'm spending less. People are avoiding unnecessary expenses and saving whatever they can. The harder it is to earn money, the more cautious they become about spending it. Before, I never used to shop on Pinduoduo, but now I find it quite convenient. Previously, my partner would drive to buy groceries, but now I insist they use an electric bike. We used to spend over a thousand yuan on clothes during seasonal changes, but now anything over 500 feels extravagant. We used to consider brand names when buying cosmetics, but now we're hunting for discounts and live streams. Before, we'd take taxis everywhere, but now we calculate which bus stop is closer to our destination. They say this phenomenon is called consumption downgrading. Chinese Pig Farming Enterprises Continue to Incur Losses After three years of the pandemic, Chinese pig farming enterprises continue to incur losses. With last year's subdued consumption, pork prices have plummeted, leading to significant losses reported in recent performance reports by several pig farming giants. Additionally, several pig enterprises have proposed restructuring plans, potentially facing bankruptcy. Jixingnongmu reported a net loss of $99.7 million last year. According to reports from China Securities Journal and Xinjiang Bao, on March 22, Jixingnongmu released its 2023 annual report, revealing a net loss of $99.7 million last year, a decrease of 508.18% compared to the previous year. The main reason for the performance loss was attributed to an increase in the number of slaughtered pigs last year compared to the same period of the previous year, coupled with a decrease in the selling price of pigs, resulting in operating income growth being lower than operating cost growth. Further analysis of the annual report shows that in 2023, Jixingnongmu's gross profit margin was minus 0.37%, a decrease of 14.97 percentage points year-on-year, net profit margin was minus 15.98%, a decrease of 20.05 percentage points from the previous year. Wensfood recorded a net loss of $980 million last year. According to a report by Securities Times, on February 27, Wensfood released its 2023 performance report, revealing a net loss of $980 million last year, compared to a net profit of $8.24 billion in the same period last year. The report indicated that in 2023, Wensfood sold 26.26 million pigs, a year-on-year increase of 46.65%, reaching a historical high. However, due to a significant year-on-year decline in the selling price of live pigs, the company's pig farming business suffered deep losses in profitability. In addition, in the chicken farming business, Wensfood sold 1.183 billion chickens last year, a year-on-year increase of 9.51%. However, due to a decrease in the average selling price of broilers, profitability in the chicken farming business also declined. Wensfood is expected to incur a net loss of up to $713.7 million last year. According to a performance forecast released by Wensfood, the main reason for the loss in 2023 was attributed to a significant decrease in pig prices, compared to the previous year. Xinxiang predicted a non-gap net loss of $6.99 billion last year. According to reports from the paper, Xinxiang Six Harmony Company Limited released a performance forecast showing that in 2023, the net profit attributable to shareholders of listed companies is expected to be $46.58 million. However, after deducting non-recurring gains and losses, the net profit is expected to be a loss of $6.99 billion. Moreover, from 2021 to September 30, 2023, Xinxiang has accumulated losses of $2.318 billion, which offset the total profits from 2017 to 2020. Tianbang Food is facing bankruptcy due to inability to repay debts. On March 19, Tianbang Food, a listed pig farming company, announced its intention to apply to the court for company restructuring and pre-restructuring. The company stated that it is currently unable to repay its maturing debts and lacks solvency. However, the company believes it has restructuring value, aiming to increase capacity utilization and reduce the debt ratio through restructuring. Prior to Tianbang Food, other pig farming companies such as Jingbang Technology and Aeon On Biology have also proposed restructuring plans. According to Jingbang Technology's performance forecast, the net profit after deducting non-recurring gains and losses for 2023 is expected to be a loss of $776 million to $1.09 billion. Aeon On Biology's performance forecast shows that the company is expected to incur a net loss of $465 million to $558 million in 2023.