26.5 C
Vientiane
Friday, September 12, 2025
spot_img
Home Blog Page 776

Tuya Reports First Quarter 2025 Unaudited Financial Results

SANTA CLARA, Calif., May 21, 2025 /PRNewswire/ — Tuya Inc. (“Tuya” or the “Company”) (NYSE: TUYA; HKEX: 2391), a global leading cloud platform service provider, today announced its unaudited financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

  • Total revenue was US$74.7 million, up approximately 21.1% year-over-year (1Q2024: US$61.7 million).
  • IoT platform-as-a-service (“PaaS”) revenue was US$53.7 million, up approximately 17.9% year-over-year (1Q2024: US$45.6 million).
  • Software-as-a-service (“SaaS”) and others revenue was US$10.0 million, up approximately 15.5% year-over-year (1Q2024: US$8.6 million).
  • Smart solution revenue was US$11.0 million, up approximately 47.1% year-over-year (1Q2024: US$7.5 million).
  • Overall gross margin was 48.5%, up 0.7 percentage point year-over-year (1Q2024: 47.8%). Gross margin of IoT PaaS increased to 48.4%, up 2.0 percentage points year-over-year (1Q2024: 46.4%).
  • Operating margin was negative 1.9%, improved by 24.6 percentage points year-over-year (1Q2024: negative 26.5%). Non-GAAP operating margin was 9.1%, improved by 10.0 percentage points year-over-year (1Q2024: negative 0.9%).
  • Net margin was 14.8%, improved by 20.5 percentage points year-over-year (1Q2024: negative 5.7%). Non-GAAP net margin was 25.8%, improved by 5.9 percentage points year- over-year (1Q2024: 19.9%).
  • Net profits were US$11.0 million (1Q2024: negative US$3.5 million). Non-GAAP net profits were US$19.3 million, up approximately 57.2% year-over-year (1Q2024: US$12.3 million).
  • Net cash generated from operating activities was US$9.4 million (1Q2024: US$14.5 million).
  • Total cash and cash equivalents, time deposits and treasury securities recorded as short- term and long-term investments were US$1,023.7 million as of March 31, 2025, compared to US$1,016.7 million as of December 31, 2024.

For further information on the non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

First Quarter 2025 Operating Highlights

  • IoT PaaS customers1 for the first quarter of 2025 were approximately 2,000 (1Q2024: approximately 2,000). Total customers for the first quarter of 2025 were approximately 2,800 (1Q2024: 3,000). The Company’s key-account strategy has enabled it to focus on serving strategic customers.
  • Premium IoT PaaS customers2 for the trailing 12 months ended March 31, 2025 were 287 (1Q2024: 269). In the first quarter of 2025, the Company’s premium IoT PaaS customers contributed approximately 88.7% of its IoT PaaS revenue (1Q2024: approximately 85.1%).
  • Dollar-based net expansion rate (“DBNER”)3 of IoT PaaS for the trailing 12 months ended December 31, 2025 was 118% (1Q2024: 116%).
  • Registered IoT device and software developers were over 1,417,000 as of March 31, 2025, up 7.7% from approximately 1,316,000 developers as of December 31, 2024.
  1. The Company defines an IoT PaaS customer for a given period as a customer who has directly placed orders for IoT PaaS with the Company during that period.
  2. The Company defines a premium IoT PaaS customer as a customer as of a given date that contributed more than US$100,000 of IoT PaaS revenue during the immediately preceding 12-month period.
  3. The Company calculates DBNER of IoT PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those have placed at least one order for IoT PaaS during that period), and then calculating the quotient from dividing the IoT PaaS revenue generated from such customers in the current trailing 12-month period by the IoT PaaS revenue generated from the same group of customers in the prior 12-month period. The Company’s DBNER may change from period to period, due to a combination of various factors, including changes in the customers’ purchase cycles and amounts and the Company’s customer mix, among other things. DBNER indicates the Company’s ability to expand customer use of the Tuya platform over time and generate revenue growth from existing customers.

Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, “In the first quarter, typically a seasonally soft period, we delivered steady growth in GAAP net profit, driven by sustained revenue growth and healthy operating leverage under Tuya’s differentiated business model. Amid ongoing macroeconomic uncertainties and rapid AI evolution, we remain focused on building differentiated AIoT capabilities and empowering global developers. Tuya’s platform model continues to facilitate deeper integration of AI and smart devices, accelerating the intelligent transformation of the industry.”

Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, added, “We delivered solid financial results in the first quarter of 2025, with revenue increasing 21.1% year-over-year to US$74.7 million and gross margin remaining stable at 48.5%. Continued cost discipline and an optimized expense structure supported steady improvement in GAAP net profit, which reached US$11.0 million, nearly double the full-year total for 2024, with a GAAP net margin reached record high of 14.8%. We also generated positive operating cash flow for the eighth consecutive quarter and ended the period with a healthy net cash position. These results provide both a solid execution base and financial flexibility to support sustained investment in AI innovation and Smart Solution expansion, and to deliver long-term shareholder value across macro volatility.”

First Quarter 2025 Unaudited Financial Results

REVENUE

Total revenue in the first quarter of 2025 increased by 21.1% to US$74.7 million from US$61.7 million in the same period of 2024, mainly due to the increase in IoT PaaS revenue and smart solution revenue.

  • IoT PaaS revenue in the first quarter of 2025 increased by 17.9% to US$53.7 million from US$45.6 million in the same period of 2024, primarily due to increasing demand compared with the same period of 2024 and the Company’s strategic focus on customer needs and product enhancements. As a result, the Company’s DBNER of IoT PaaS for the trailing 12 months ended March 31, 2025 increased to 118% from 116% for the trailing 12 months ended March 31, 2024.
  • SaaS and others revenue in the first quarter of 2025 increased by 15.5% to US$10.0 million from US$8.6 million in the same period of 2024, primarily due to an increase in revenue from cloud software products. During the quarter, the Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers.
  • Smart solution revenue in the first quarter of 2025 increased by 47.1% to US$11.0 million from US$7.5 million in the same period of 2024, primarily due to the increasing customer demand for smart devices with integrated intelligent software capabilities the Company developed beyond IoT.

COST OF REVENUE

Cost of revenue in the first quarter of 2025 increased by 19.5% to US$38.4 million from US$32.2 million in the same period of 2024, generally in line with the increase in the Company’s total revenue.

GROSS PROFIT AND GROSS MARGIN

Total gross profit in the first quarter of 2025 increased by 22.9% to US$36.3 million from US$29.5 million in the same period of 2024. The gross margin in the first quarter of 2025 was 48.5%, compared to 47.8% in the same period of 2024, reaching a record high since the establishment of the Company.

  • IoT PaaS gross margin in the first quarter of 2025 was 48.4%, compared to 46.4% in the same period of 2024.
  • SaaS and others gross margin in the first quarter of 2025 was 74.4%, compared to 72.3% in the same period of 2024.
  • Smart solution gross margin in the first quarter of 2025 was 25.7%, remained relatively steady sequentially, and compared to 28.3% in the same period of 2024.

Gross margin of each revenue stream increased or fluctuated primarily due to changes in products and solutions mix. As a developer platform with rich ecosystem of smart devices and applications, the Company is committed to focusing on software products with compelling value propositions while maintaining cost efficiency.

OPERATING EXPENSES

Operating expenses decreased by 17.8% to US$37.7 million in the first quarter of 2025 from US$45.9 million in the same period of 2024. Non-GAAP operating expenses decreased by 2.0% to US$29.4 million in the first quarter of 2025 from US$30.0 million in the same period of 2024. For further information on the non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

  • Research and development expenses in the first quarter of 2025 were US$22.8 million, down 2.8% from US$23.5 million in the same period of 2024, primarily because of (i) the lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized and (ii) partially offset by an increase in cloud services costs. Non-GAAP adjusted research and development expenses in the first quarter of 2025 were US$20.8 million, compared to US$20.0 million in the same period of 2024.
  • Sales and marketing expenses in the first quarter of 2025 were US$8.3 million, down 7.1% from US$9.0 million in the same period of 2024, primarily because of (i) the decrease in employee-related costs, (ii) the lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized, and (iii) partially offset by increased spending in marketing events compared to the same period of 2024. Non-GAAP adjusted sales and marketing expenses in the first quarter of 2025 were US$7.6 million, compared to US$7.6 million in the same period of 2024.
  • General and administrative expenses in the first quarter of 2025 were US$8.9 million, down 42.3% from US$15.5 million in the same period of 2024, primarily because of (i) the lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized and (ii) operational optimization. Non- GAAP adjusted general and administrative expenses in the first quarter of 2025 were US$3.4 million, compared to US$4.6 million in the same period of 2024.
  • Other operating income, net in the first quarter of 2025 was US$2.4 million, primarily due to the receipt of software value-added tax refunds and various general subsidies for enterprises.

LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGIN

Loss from operations in the first quarter of 2025 narrowed by 91.1% to US$1.5 million from US$16.4 million in the same period of 2024. The Company had a non-GAAP profit from operations of US$6.8 million in the first quarter of 2025, compared to a non-GAAP loss from operations of US$0.6 million in the same period of 2024, consistently achieving operating profitability on a non-GAAP basis.

Operating margin in the first quarter of 2025 was negative 1.9%, improved by 24.6 percentage points from negative 26.5% in the same period of 2024. Non-GAAP operating margin in the first quarter of 2025 was 9.1%, improved by 10.0 percentage points from negative 0.9% in the same period of 2024.

NET LOSS/PROFIT AND NET MARGIN

The Company had a net profit of US$11.0 million in the first quarter of 2025, compared to a net loss of US$3.5 million in the same period of 2024.

The difference between loss from operations and net profit in the first quarter of 2025 was primarily because of a US$12.4 million interest income achieved mainly due to well implemented treasury strategies on the Company’s cash, time deposits and treasury securities recorded as short-term and long-term investments.

The Company had a non-GAAP net profit of US$19.3 million in the first quarter of 2025, up 57.2% compared to US$12.3 million in the same period of 2024, demonstrating the Company’s ability to sustain strong profitability on a non-GAAP basis.

Net margin in the first quarter of 2025 was 14.8%, improving by 20.5 percentage points from negative 5.7% in the same period of 2024. Non-GAAP net margin in the first quarter of 2025 was 25.8%, improving by 5.9 percentage points from 19.9% in the same period of 2024.

BASIC AND DILUTED NET LOSS/PROFIT PER ADS

Basic and diluted net profit per ADS was US$0.02 in the first quarter of 2025, compared to basic and diluted net loss of US$0.01 in the same period of 2024. Each ADS represents one Class A ordinary share.

Non-GAAP basic and diluted net profit per ADS was US$0.03 in the first quarter of 2025, compared to non-GAAP basic and diluted net profit of US$0.02 in the same period of 2024.

CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS

Cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,023.7 million as of March 31, 2025, compared to US$1,016.7 million as of December 31, 2024, which the Company believes is sufficient to meet its current liquidity and working capital needs.

NET CASH GENERATED FROM OPERATING ACTIVITIES

Net cash generated from operating activities in the first quarter of 2025 was US$9.4 million, compared to US$14.5 million in the same period of 2024. The net cash generated from operating activities for the first quarter of 2025 mainly due to working capital changes in the ordinary course of business.

For further information on non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

Business Outlook

From the initial enthusiasm at the beginning of the year about the accelerated evolution of AI technologies, to the shift in sentiment and industry slowdown caused by global trade fluctuations under geopolitical policy influences in early April, the macro environment has undergone frequent and dramatic changes. These shifts have posed significant challenges to the cycles of the smart consumer electronics sector and its upstream and downstream supply chains. Although the external environment has shown some recent signs of improvement, uncertainties remain. We will continue to monitor developments in the entire business environment. Nonetheless, we remain positive on the long-term value that intelligent technologies can bring to all stakeholders. Therefore, with the effective implementation of the Company’s customer and product strategies, along with the utilization and innovation of emerging technologies like AI, the Company is confident in its long-term business prospects.

In response to this evolving market environment, the Company will remain committed to continuously iterating and improving its products and services and further enhancing software and hardware capabilities, particularly by leveraging the AI capabilities, expanding key customer base, investing in innovations and new opportunities, diversifying revenue streams, and further optimizing operating efficiency. At the same time, the Company understands that future trajectories may encounter challenges, including shifting consumer spending patterns, regional economic disparities, inventory management, foreign exchange rate and interest rates volatility, the imposition of new tariffs, or adjustments in existing tariffs or trade barriers, and broader geopolitical uncertainties.

Conference Call Information

The Company’s management will hold a conference call at 08:30 P.M. U.S. Eastern Time on Tuesday, May 20, 2025 (08:30 A.M. Beijing Time on Wednesday, May 21, 2025) to discuss the financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this conference including a conference access code, a PIN number (personal access code), the dial-in number, and an e-mail with detailed instructions to join the conference call.

Online registration:
https://register-conf.media-server.com/register/BIe169304a39d646bcb658aa96f86ff680

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.tuya.com, and a replay of the webcast will be available following the session.

About Tuya Inc.

Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading AI cloud platform service provider with a mission to build an AIoT developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built AI cloud platform with cloud and generative AI capabilities that delivers a full suite of offerings, including Platform-as-a-Service, or PaaS, Software-as-a-Service, or SaaS, and smart solutions for developers of smart device, commercial applications, and industries. Through its AIoT developer platform, Tuya has activated a vibrant global developer community of brands, OEMs, AI agents, system integrators and independent software vendors to collectively strive for smart solutions ecosystem embodying the principles of green and low-carbon, security, high efficiency, agility, and openness.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP financial measures, such as non-GAAP operating expenses, non-GAAP (loss)/profit from operations (including non-GAAP operating margin), non-GAAP net profit (including non-GAAP net margin), and non-GAAP basic and diluted net profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses and credit-related impairment of long-term investments from the respective GAAP financial measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP financial measures facilitates investors’ assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company’s operations. Share-based compensation expenses and credit-related impairment of long-term investments have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP measures to the most directly comparable U.S. GAAP measures, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Tuya’s non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this press release.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statements. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof, and the Company disclaims any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

Investor Relations Contact

Tuya Inc.
Investor Relations 
Email: ir@tuya.com

The Blueshirt Group 
Gary Dvorchak, CFA
Phone: +1 (323) 240-5796
Email: gary@blueshirtgroup.co

HL Strategy
Haiyan LI-LABBE
Email: hl@hl-strategy.com

 

 

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2024 AND MARCH 31, 2025
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

As of
December 31,
2024

As of
March 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

653,334

763,788

Restricted cash

50

165

Short-term investments

194,536

89,985

Accounts receivable, net

7,592

9,591

Notes receivable, net

7,485

9,766

Inventories, net

23,840

21,583

Prepayments and other current assets, net

16,179

18,738

Total current assets

903,016

913,616

Non-current assets:

Property, equipment and software, net

6,619

8,557

Land use rights, net

8,825

8,793

Operating lease right-of-use assets, net

4,550

5,248

Long-term investments

180,092

181,875

Other non-current assets, net

678

314

Total non-current assets

200,764

204,787

Total assets

1,103,780

1,118,403

LIABILITIES AND SHAREHOLDERSEQUITY

Current liabilities:

Accounts payable

19,051

19,457

Advances from customers

31,346

27,145

Deferred revenue, current

7,525

7,797

Accruals and other current liabilities

32,257

67,806

Incomes tax payables

360

483

Lease liabilities, current

3,798

3,403

Total current liabilities

94,337

126,091

Non-current liabilities:

Lease liabilities, non-current

851

1,835

Deferred revenue, non-current

377

460

Other non-current liabilities

767

Total non-current liabilities

1,995

2,295

Total liabilities

96,332

128,386

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
AS OF DECEMBER 31, 2024 AND MARCH 31, 2025
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

As of
December 31, 2024

As of
March 31, 2025

Shareholdersequity:

Ordinary shares

Class A ordinary shares

25

27

Class B ordinary shares

4

4

Treasury stock

(15,726)

(1,050)

Additional paid-in capital

1,612,712

1,569,409

Accumulated other comprehensive loss

(19,716)

(19,539)

Accumulated deficit

(569,851)

(558,834)

Total shareholdersequity

1,007,448

990,017

Total liabilities and shareholdersequity

1,103,780

1,118,403

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS)/INCOME
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

For the Three Months Ended

March 31, 2024

March 31, 2025

Revenue

61,662

74,687

Cost of revenue

(32,177)

(38,436)

Gross profit

29,485

36,251

Operating expenses:

Research and development expenses

(23,474)

(22,810)

Sales and marketing expenses

(8,983)

(8,347)

General and administrative expenses

(15,474)

(8,929)

Other operating incomes, net

2,079

2,383

Total operating expenses

(45,852)

(37,703)

Loss from operations

(16,367)

(1,452)

Other income

Other non-operating income, net

778

767

Financial income, net

12,807

12,395

Foreign exchange (loss)/gain, net

(105)

44

(Loss)/profit before income tax expense

(2,887)

11,754

Income tax expense

(656)

(737)

Net (loss)/profit

(3,543)

11,017

Net (loss)/profit attributable to Tuya Inc.

(3,543)

11,017

Net (loss)/profit attribute to ordinary shareholders

(3,543)

11,017

Net (loss)/profit

(3,543)

11,017

Other comprehensive (loss)/income

Transfer out of fair value changes of long-term investments

(65)

Foreign currency translation

(428)

177

Total comprehensive (loss)/income attributable to Tuya Inc.

(4036)

11,194

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS)/INCOME (CONTINUED)
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

For the Three Months Ended

March 31, 2024

March 31, 2025

Net (loss)/profit attributable to Tuya Inc.

(3,543)

11,017

Net (loss)/profit attributable to ordinary shareholders

(3,543)

11,017

Weighted average number of ordinary shares used in computing net (loss)/profit per share, basic and diluted

– Basic

559,133,184

606,308,258

– Diluted

559,133,184

608,490,640

Net (loss)/profit per share attributable to ordinary shareholders, basic and diluted

– Basic

(0.01)

0.02

– Diluted

(0.01)

0.02

Share-based compensation expenses were included in:

Research and development expenses

3,506

2,016

Sales and marketing expenses

1,385

738

General and administrative expenses

10,923

5,521

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

For the Three Months Ended

March 31, 2024

March 31, 2025

Net cash generated from operating activities

14,490

9,352

Net cash generated from investing activities

16,195

101,183

Net cash generated from financing activities

254

2

Effect of exchange rate changes on cash and cash equivalents, restricted cash

(126)

32

Net increase in cash and cash equivalents, restricted cash

30,813

110,569

Cash and cash equivalents, restricted cash at the beginning of period

498,688

653,384

Cash and cash equivalents, restricted cash at the end of period

529,501

763,953

TUYA INC.
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST
DIRECTLY COMPARABLE FINANCIAL MEASURES
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

For the Three Months Ended

March 31, 2024

March 31, 2025

Reconciliation of operating expenses to non-GAAP operating expenses                                                       

Research and development expenses           

(23,474)

(22,810)

Add: Share-based compensation expenses

3,506

2,016

Adjusted Research and development expenses

(19,968)

(20,794)

Sales and marketing expenses

(8,983)

(8,347)

Add: Share-based compensation expenses

1,385

738

Adjusted Sales and marketing expenses

(7,598)

(7,609)

General and administrative expenses

(15,474)

(8,929)

Add: Share-based compensation expenses

10,923

5,521

Adjusted General and administrative expenses

(4,551)

(3,408)

Reconciliation of loss from operations to non-GAAP (loss)/profit from operations

Loss from operations

(16,367)

(1,452)

Operating margin

(26.5) %

(1.9) %

Add: Share-based compensation expenses

15,814

8,275

Non-GAAP (loss)/profit from operations

(553)

6,823

Non-GAAP Operating margin

(0.9) %

9.1 %

For the Three Months Ended

March 31, 2024

March 31, 2025

Reconciliation of net (loss)/profit to non-GAAP net profit

Net (loss)/profit

(3,543)

11,017

Net margin

(5.7) %

14.8 %

Add: Share-based compensation expenses

15,814

8,275

Non-GAAP Net profit

12,271

19,292

Non-GAAP Net margin

19.9 %

25.8 %

Weighted average number of ordinary shares used in computing non-GAAP net profit per share

– Basic

559,133,184

606,308,258

– Diluted

591,737,410

608,490,640

Non-GAAP net profit per share attributable to ordinary shareholders

– Basic

0.02

0.03

– Diluted

0.02

0.03

 

 

 

 

Health In Tech to Participate as Gold Sponsor at American Trust Investment Services National Conference 2025

STUART, Fl., May 21, 2025 /PRNewswire/ — Health In Tech (Nasdaq: HIT), an Insurtech platform company backed by third-party AI technology, today announced that CEO Tim Johnson and CFO Julia Qian will represent the company as a Gold Sponsor at the American Trust Investment Services National Conference 2025, to be held June 16–18, 2025, at the Andaz Hotel in San Diego, California.

Hosted by American Trust Investment Services, this exclusive event will bring together registered representatives, advisors, and preferred sponsors for an immersive three-day conference focused on business growth, collaboration, and innovation in financial services. As a Gold Sponsor, Health In Tech will showcase its leading AI-backed underwriting technology and self-funded healthcare solutions designed for small and mid-sized businesses.

“We’re excited to join the 2025 American Trust National Conference as a Gold Sponsor,” said Tim Johnson, Chairman & CEO of Health In Tech. “This event provides a unique opportunity to connect with influential advisors and share how our platform is enhancing transparency, efficiency, and affordability in healthcare benefits.”

HIT will actively participate in one-on-one meetings, engage with attendees in the vendor room, and present its strategic vision to raise awareness of its platform and highlight its role in driving innovation across the healthcare industry.

About Health In Tech

Health In Tech (Nasdaq: “HIT”) is an Insurtech platform company backed by third-party AI technology, which offers a marketplace that aims to improve processes in the healthcare industry through vertical integration, process simplification, and automation. By removing friction and complexities, we streamline the underwriting, sales and service process for insurance companies, licensed brokers, and TPAs. Learn more at healthintech.com.

About American Trust Investment Services

American Trust Investment Services, Inc. (“ATIS”) is a privately owned boutique broker-dealer and investment advisory firm serving clients nationwide. ATIS offers a full range of traditional and alternative investment solutions, including wealth management, insurance consulting, and access to capital markets. With clearing services through RBC and custodial relationships with leading financial institutions, ATIS is committed to supporting advisors through integrity, flexibility, and personalized service. Learn more at https://www.amtruinvest.com/investment-services.

Use of ForwardLooking Statements

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech’s possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “should,” “design,” “target,” “aim,” “hope,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “project,” “potential,” “goal,” or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech’s actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech’s control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech’s operations, results of operations, growth strategy and liquidity.

Investor Contact
Investor Relations
ir@healthintech.com

MWX Announces World’s First Open, Decentralized AI Marketplace for SMEs, Launching Soon to Bring Enterprise-Grade AI to 400 Million Businesses Worldwide

Powered by the team behind Southeast Asia’s premier AI builders, MWX prepares to launch an agentic, self-serve AI marketplace, removing barriers and opening access to ready-to-use AI for the world’s 400 million SMEs

SINGAPORE, May 21, 2025 /PRNewswire/ — MWX today announced its upcoming global launch, introducing the world’s first decentralized, open-access AI marketplace designed to bring powerful, ready-to-use AI tools directly to SMEs, without intermediaries or gatekeepers. Targeting the world’s 400 million SMEs, MWX is positioned as a transformative platform that bridges AI access by enabling business owners to deploy enterprise-grade AI solutions with simplicity, transparency, and autonomy.

MWX is the first decentralized AI marketplace for ready-to-use business solutions
MWX is the first decentralized AI marketplace for ready-to-use business solutions

MWX is built on the expertise and proven leadership of the same pioneers behind MediaWave, Indonesia’s most trusted digital intelligence platform. Over the past decade, the MediaWave team has delivered critical AI-powered platforms that supported nationwide projects and major corporations across Southeast Asia. Their track record includes innovations such as Indonesia’s first social media monitoring platform in 2010, Asia’s first political sentiment AI in 2012, the world’s first GenAI political dashboard Pemilu.AI in 2023, and the launch of Reporthink.AI in 2024, automating sustainability and annual reports.

MWX’s founding team brings together Southeast Asia’s leading AI, digital transformation, and Web3 leaders, including Nanda Ivens, former Tokocrypto CMO and APAC CEO of Mirum Agency, alongside Yose Rizal, the original builders behind MediaWave’s award-winning AI products. Together, they are applying their real-world enterprise experience to create an open, decentralized AI economy purpose-built for SMEs. Supported by global advisor Pandu Sastrowardoyo, the team is focused on removing the friction that has kept AI locked behind corporate firewalls.

Through MWX’s agentic AI marketplace, where next-generation AI agents are designed to act with autonomy, proactivity, and the ability to make decisions on behalf of users, SMEs will soon access self-serve AI services that automate key business functions through intuitive AI solutions and APIs. This empowers small business owners to deploy AI agents that can autonomously interact with other agents, services, and platforms. Built for interoperability, these AI solutions and APIs enable seamless integrations across tools and systems, creating connected, frictionless workflows that scale with business needs.

“At MWX, we are building on the legacy of AI that has served multinational corporations, but now we are doing it for the 400 million SMEs, which is the backbone of the world’s economy,” said Nanda Ivens, Co-Founder and CEO of MWX. “This is about opening the gates to technologies that were once inaccessible and making them work for real businesses, in their daily operations, at their pace. It’s not about buzzwords; it’s about bringing AI down to earth, letting SMEs own it, use it, and shape it. At the same time, we’re enabling AI startups across the region to access global markets, helping them scale their innovations and connect with businesses worldwide.”

Pandu Sastrowardoyo, Global Advisor at MWX, added, “MWX isn’t just riding the wave of generative AI. Instead, it’s built on over 15 years of real-world AI and machine learning tools that are already being used across industries. The platform we’re making allows businesses to not just use digital solutions; they also help shape and grow them. We aim to bridge the AI access gap and to lay the groundwork for any small business to adopt AI and ML in a right-sized way.”

With a roadmap that includes decentralized finance integrations, analytics dashboards, and business growth insights, MWX is setting itself apart as more than just a platform, it is positioning itself as the digital growth partner for SMEs worldwide, aiming to onboard 1,000,000 SME users and thousands AI startups across the region by 2028. MWX will open private beta access in the coming months, followed by community driven governance. To explore how MWX is building the future of decentralized AI for real-world business, visit mwxplatform.ai.

About MWX

MWX is the world’s first fully decentralized AI marketplace designed for ready-to-use business solutions, targeting the global SME market. Built by Southeast Asia’s leading AI and Web3 veterans, MWX brings together agentic AI services, DAO governance, and deflationary tokenomics into a unified ecosystem. The platform allows SMEs to access and transact AI solutions via fiat or crypto (MWXT), while embedding real economic value into its token economy through on-chain buyback and burn mechanisms. Backed by the team behind MediaWave and platforms like Pemilu.AI and Reporthink.AI, MWX merges enterprise-grade AI with Web3-native continuity and transparency. Learn more atmwxplatform.ai.

 

GATE Energy & HD Hyundai Heavy Industries Enter Strategic MOU for Offshore EPC & Commissioning Collaboration

HOUSTON, May 21, 2025 /PRNewswire/ — GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU) formalizing their intent to collaborate on offshore energy infrastructure projects, marking a strategic alignment between two leaders in engineering, procurement, construction, and commissioning (EPCC).

GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU).
GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU).

Under the MOU, the two companies will jointly pursue Engineering, Procurement, Construction, and Installation (EPCI) opportunities in the offshore oil and gas sector, targeting global markets. HHI and GATE Energy will work together as strategic partners, leveraging their respective strengths in EPC and commissioning to deliver seamless project execution, with roles defined according to project-specific needs.

Mark Myhre, President of Commissioning at GATE Energy, commented, “This MOU represents the next chapter in a strong and growing relationship between GATE and HHI. Our collaboration on the King’s Quay and Shenandoah projects demonstrated what’s possible when two organizations align in both technical expertise and delivery mindset. We’re proud to formalize our intent to pursue future opportunities together, delivering value to clients across the offshore landscape.”

Jung-Ho, Park, Vice President of HHI, commented: “This MOU represents the next step in an already strong partnership built on mutual respect, technical excellence, and shared success. Through landmark projects like King’s Quay, Shenandoah, and the ongoing Project, we have forged a collaborative framework that consistently delivers superior outcomes. Together with GATE Energy, we are committed to advancing the offshore energy sector by providing integrated solutions that enhance predictability and create lasting value for our clients worldwide.”

The agreement underscores a shared commitment to delivering turnkey solutions that enhance schedule predictability in complex offshore environments. Both organizations bring proven execution experience across floating production systems, with HHI’s strength in hull and topside EPC delivery complemented by GATE Energy’s commissioning and startup capabilities.

Lee Jordan, CEO at GATE Energy, commented, “This agreement further builds on the deep working relationship between HHI and GATE Energy and positions us to jointly and efficiently deliver the next generation of facilities to the offshore energy industry.

The MOU provides a general framework for future cooperation and information sharing, with the flexibility to align on specific tenders as opportunities arise. It also includes provisions for joint planning, resource integration, and the potential development of execution models tailored to developer requirements.

About GATE Energy

GATE Energy is a 100% employee-owned, global project delivery firm, with a mission to improve project certainty in an uncertain world. They help developers successfully deliver projects —from front-end due diligence and owner’s engineering through construction management, turnkey commissioning, and initial startup. With a global footprint spanning North America, Asia, and Latin America—and decades of experience delivering both large and small projects—GATE Energy combines the scale of a multinational with the agility of a specialized partner that enables predictable project outcomes and safeguards project investments.

For more information on GATE Energy, visit www.gate.energy

About HD Hyundai Heavy Industries

HD Hyundai Heavy Industries (HHI) is a global leader in shipbuilding and EPC with extensive expertise across offshore platforms, FPSOs, FPUs, naval vessels, and large-scale energy infrastructure. Over its 50-year history, HHI has built a strong reputation for delivering complex projects with precision and reliability. Offshore & Energy Business Unit plays a pivotal role in advancing next-generation energy solutions. In addition to its proven capabilities in oil and gas, HHI is expanding its portfolio into eco-friendly energy, including offshore wind power, small modular reactors (SMRs), and carbon capture and storage (CCS) systems. Through these initiatives, HHI supports the global transition toward a low-carbon future.

For more information on HHI, visit https://english.hhi.co.kr

GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU).
GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU).

 

 

Strong Support for Governing Coalition Ahead of Key MPP Congress Vote

LONDON, May 20, 2025 /PRNewswire/ — On the eve of the Mongolian People’s Party Congress vote on whether to maintain the current governing coalition, new polling shows that the alliance between MPP, DP, and HUN continues to enjoy strong support among the Mongolian electorate.

The nationally representative poll, conducted by international research firm Sancrox Political Advisory from 16 to 23 April, shows that 42% of Mongolian voters approve of the decision to form a coalition between MAH, AH, and HUN, compared to 36% who disapprove and 19% who neither approve nor disapprove. This includes:

  • 57% of 2024 MPP voters who approve the decision to form a coalition and 29% who disapprove
  • 51% of 2024 DP voters who approve and 30% who disapprove
  • 45% of 2024 HUN voters who approve and 29% who disapprove

These figures show that the coalition retains a solid base of support among its founding parties. As the MPP Congress prepares to vote, public opinion remains in favour of continuity.

Strong Support for Governing Coalition Ahead of Key MPP Congress Vote
Strong Support for Governing Coalition Ahead of Key MPP Congress Vote

Sancrox Political Advisory is a leading international polling and strategy firm, providing political insight and public opinion research across the globe.

 

XREAL Unveils ‘Project Aura’ at Google I/O — An Optical See-Through XR Device for Android XR

MOUNTAIN VIEW, Calif., May 21, 2025 /PRNewswire/ — XREAL today announced a strategic partnership with Google to expand the ecosystem of spatial computing devices built on Android XR. As part of this collaboration, XREAL unveiled Project Aura at the Google I/O developer conference — XREAL’s next-generation extended reality (XR) device designed specifically for the Android XR platform.

Introducing Project Aura -- XREAL’s next-generation extended reality device designed specifically for the Android XR platform
Introducing Project Aura — XREAL’s next-generation extended reality device designed specifically for the Android XR platform

Project Aura is the second official device announced for Android XR and marks a major milestone for the platform: the introduction of an optical see-through (OST) XR device. A lightweight and tethered, cinematic, and Gemini AI-powered device, Project Aura brings a large field-of-view experience to the Android XR family — setting a new standard for immersive, wearable computing.

This collaboration also includes Qualcomm Technologies, Inc., bringing together leading innovation across hardware, silicon, and software to build the next wave of XR experiences. Project Aura uses XREAL’s proven track record in lightweight XR hardware, the Android XR software stack, and Qualcomm Technologies’ Snapdragon® XR chipsets optimized for spatial computing.

“Google is thrilled to welcome XREAL to the Android XR family and to build great XR experiences on Project Aura,” said Shahram Izadi, General Manager and Vice President of XR at Google. “Android XR is the first Android platform built in the Gemini era, and it will support a rich ecosystem of immersive devices, both Virtual see-through (VST) and Optical see-through (OST). By combining our platform with XREAL’s leadership in portable XR hardware, we’re expanding spatial experiences to OST form-factors that are truly intuitive and accessible, representing a pivotal moment in our ecosystem.”

“At XREAL, we’ve always pushed the boundaries of what XR hardware can do — combining performance, comfort, and design into something people can wear every day,” said Chi Xu, Co-founder and CEO of XREAL. “Partnering with Google on Android XR takes this vision to the next level. Project Aura reflects the power of this collaboration — merging a robust platform with advanced chipsets and our expertise in optical systems. We believe this is a breakthrough moment for real-world XR.”

“Qualcomm Technologies is excited to have Snapdragon play a significant role in XREAL’s new Android XR solution,” said Ziad Asghar, Senior Vice President and General Manager of XR at Qualcomm Technologies, Inc. “This collaboration marks a significant step forward in the expansion of the Android XR ecosystem. Working with XREAL, Snapdragon allows amazing immersive experiences to come to life in a unique optical see-through product. We are thrilled to see immersive experiences coming to more verticals opening up new possibilities for both consumers and developers.”

The unveiling of Project Aura marks a call-to-action for developers. XREAL, Google, and Qualcomm Technologies invite the developer community to begin envisioning new applications and use cases for this next generation of XR. Developers already building for headsets on the platform will be able to easily bring their apps to Project Aura.

While Project Aura makes its public debut today, further details will be announced at Augmented World Expo (AWE) in June 2025, and later this year.

To learn more about Project Aura and stay updated, please visit: xreal.com/aura.

About XREAL

XREAL is a global leader in augmented reality, creating lightweight AR glasses and spatial computing platforms that blend the digital and physical worlds. Known for its XREAL Air series and Nebula interface, the company is expanding into enterprise and AI-powered experiences — backed by collaborations with Google, Qualcomm Technologies, and a global developer ecosystem.

For Media

Contact: Ralph.Jodice@XREAL.com or press@google.com

Snapdragon is a trademark or registered trademark of Qualcomm Incorporated. Snapdragon is a product of Qualcomm Technologies, Inc. and/or its subsidiaries. 

The GrowHub Partners with Business Engineers Asia to Deliver its Traceability Solution

SINGAPORE, May 21, 2025 /PRNewswire/ — THE GROWHUB LIMITED (“The GrowHub” or the “Company”), a Singapore-based company leveraging blockchain technology to enhance product traceability and authenticity, partners with Business Engineers Asia (“BEA”) to deliver its flagship Traceability Solution to BEA’s partners.

Business Engineers Asia are market entry specialists dedicated to helping companies successfully navigate and de-risk the complexities of entering Singapore’s retail market. BEA supports clients in maximizing profits, minimizing costs, and strategically planning for regional growth. As the longest supporting partner to Singapore’s largest e-grocer, RedMart, and a key third-party logistics partner for NTUC Online, BEA has introduced more than 5,000 SKUs from over 30 countries into the local market. Currently, BEA serves more than 70 partners and actively collaborates with organizations such as Enterprise Singapore, the Singapore Business Federation, as well as various embassies and trade agencies in Singapore.

Through this partnership, BEA will adopt The GrowHub Traceability Solution and offer it to its clients. As a result, the increased adoption of the Company’s traceability solution by BEA’s customers is expected to drive platform user base growth. In turn, BEA positions itself as one of the pioneering logistics service providers to implement traceability as a core offering. With the latest upgrade to the traceability platform, BEA and its clients can look forward to a sleeker, more intuitive user interface and a powerful new analytics dashboard that together delivers a smarter, more seamless user experience across the board. Both parties are also exploring further opportunities for incremental collaboration.

“I am pleased to announce our new partnership with BEA as we expand the reach of our traceability solutions across Singapore,” said Company COO Alec Ngo. “This collaboration presents valuable cross-selling opportunities, allowing us to introduce our solutions to BEA’s strong client network, which includes some of the country’s leading e-grocers. These opportunities will be instrumental in scaling our customer base and further promoting and deploying our traceability solution. We look forward to working closely with BEA and continuing discussions as we explore additional avenues for collaboration.”

About THE GROWHUB LIMITED

The GrowHub Limited is a Singapore-based company specializing in enhancing product traceability and authenticity within supply chains through its proprietary blockchain technology platform. The GrowHub offers solutions such as blockchain traceability, anti-counterfeit measures, AI driven data analytics, and carbon management to promote transparency and sustainability. The GrowHub’s business comprises three main divisions: the GrowHub Platform, a revolutionary traceability blockchain technology solution, product trading facilitation offering, and IT professional services. The GrowHub has offices in Singapore, Malaysia, Japan, Australia, and Vietnam. For more information, visit https://thegrowhub.co/.

Investor Relations
John Yi and Steven Shinmachi
Gateway Group, Inc.
949-574-3860
TGHL@gateway-grp.com 

Global Times: From ‘sweet potato economy’ theory to private sector promotion law – understanding the growth path of China’s economy

BEIJING, May 21, 2025 /PRNewswire/ — As China’s first fundamental law specifically focusing on promoting the private economy, the Private Sector Promotion Law took effect on Tuesday, marking a milestone in the history of the development of the private economy in the country. 

The rule of law plays a crucial role in laying solid foundations, ensuring stable expectations, and delivering long-term benefits. The Private Sector Promotion Law serves not only as the foundational law governing the private economy, but also a law to promote the development of and ensure fairness for the private economy. 

Providing a solid legal foundation for the sustained, healthy, and high-quality development of the private economy is a vivid reflection of law-based governance, the basic way for the Communist Party of China (CPC) to lead the people in governing the country.

China’s private economy has flourished alongside the great course of reform and opening-up and under the guidance of the Party and the state’s principles and policies.

More than 20 years ago, as the Party secretary of East China’s Zhejiang Province, Xi Jinping scientifically explained the theory of “sweet potato economy,” symbolizing Zhejiang’s growth strategy, with local investments spreading globally like sweet potato vines, enhancing international engagement and strengthening the local economy.

This innovative theory has not only guided Zhejiang in continuously making breakthroughs and achieving greater development, but also elevates to an important part of the new development philosophy in the new era, leading China to address the issue of internal and external coordination in development through opening-up, while forging new advantage of a higher-level open economy.

In March, the first volume of selected works of Xi, now general secretary of the CPC Central Committee, on economy was published. This important work scientifically summarizes the valuable experiences of economic development in the new era, and systematically expounds the rich connotations, scientific systems and original contributions of Xi Jinping Thought on Economy.

From Xi Jinping Thought on Economy to Xi Jinping Thought on the Rule of Law, grasping the origin, essence, and core principles of the CPC’s innovative theories, and understanding the CPC’s leadership, thinking, and work methods in advancing economic governance, ensure accurate understanding of the times and trends, dangers and opportunities, scientifically resolve various contradictions and problems in economic and social development, and firmly seize the initiative and fight proactively.

Over the past 40-plus years of reform and opening-up, China’s private economy has expanded and strengthened to become an indispensable force in the country’s development and a new force in promoting Chinese modernization. By the end of March, the number of registered private enterprises surpassed 57 million, accounting for 92.3 percent of all businesses nationwide, and the number of registered individual businesses had reached 125 million nationwide. 

Why are the CPC’s innovative theories able to guide China’s development journey through trials and triumphs in the new era? From the “sweet potato economy” theory to the Private Sector Promotion Law, the answer lies in the practice of private economy development.

From practice to theory 
The CPC’s innovative theories originate from practice and also provide strong guidance for future practice. Under the guidance of the “sweet potato economy” theory, many private enterprises in Zhejiang have achieved greater development in a broader space.

For example, CHINT Group’s subsidiary CHINT New Energy Technology Co announced recently that it will build a new factory in Turkey, achieving full localization of battery cell and component production. Starting from a factory producing switches in 1984 in Zhejiang, the firm has expanded from the province to the global market, with business operations in more than 140 countries and regions.

To date, there are over 6 million Zhejiang entrepreneurs across the country and over 2 million Zhejiang entrepreneurs across the world. On the list of top 500 Chinese private enterprises, the number of Zhejiang firms has ranked first for 26 consecutive years. The private economy has become the most distinctive feature, the most important resource, and the greatest advantage of Zhejiang’s economy.

The “sweet potato economy” theory demonstrates powerful intellectual force because it adheres to a problem-oriented approach, focusing on new issues encountered in practice and proposing new concepts, ideas, and methods to genuinely address these problems. From adhering to a problem-oriented approach, to embracing a systematic perspective, to maintaining a global vision, the “sweet potato economy” theory vividly reflects the stance, viewpoints, and methods of the Party’s innovative theories, becoming a vital source of inspiration for the new development philosophy.

Today, the tide of an open economy is surging forward in China. By promoting high-quality development through high-level opening-up, the private sector, while remains rooted in the domestic market, is expanding globally, efficiently utilizing both domestic and international markets and resources. Through open collaboration as well as global competition, they continuously foster new competitive advantages.

Addressing and guiding the resolution of problems is the fundamental task of theory.

When problems arise from government-business relations being either too “close” or too “distant,” the Party emphasized cultivating a cordial and clean relationship between government and business, leading a change to development ecosystem. When erroneous assertions such as “private enterprises exiting the stage” and “new public-private partnership theory” cause disruptions, it is stressed that “our country’s private sector should only grow stronger instead of being weakened and march toward a broader stage,” and all private companies and private entrepreneurs should feel totally reassured and devote themselves to seeking development. 

“I have always supported private enterprises,” said Xi, who has worked for more than 20 years in the provinces of Fujian and Zhejiang, both known for the vibrant private sector. He has always attached great importance to the private economy and private enterprises, and has creatively put forward a series of new concepts, new ideas and new strategies to guide the private economy to continue to grow and develop while solving development problems.

From policy guidance to legal protection
Implementing policy promotion and legislative promotion is not only a requirement for developing a socialist market economy, but also a requirement for realizing the modernization of the national governance system and governance capabilities.

On April 16, a new version of the country’s market access negative list was released, the fourth revision since the launch of the first such list in 2018, cutting the number of items on the list from 151 to 106. The shorter list means that market access restrictions for many industries have been eased, which reflects the intensity of China’s market reform, and carries profound significance for businesses, especially private enterprises.

The Hangzhou-Taizhou High Speed Railway in Zhejiang is the country’s first privately-controlled high-speed railway. It was funded by a public-private partnership, with the private sector having a holding status with 51 percent stake. This means that the voice of private enterprises has increased, further boosting the advantages and vitality of private capital.

From the introduction of the market access negative list – which allows market entry for all sectors not explicitly restricted – to the rollout of a guideline for building a unified national market and the cancellation of over 4,200 policy measures that hinder the development of a unified national market and fair competition, China is dismantling hidden barriers and breaking down obstacles that hinder private sector growth. All of these reflect the strength and precision of policy efforts, underscoring the modernization of governance capability.

“The comprehensive advancement of law-based governance has been a profound revolution in China’s governance,” the report to the 20th National Congress of the CPC stated, noting that “we must give better play to the role of the rule of law in consolidating foundations, ensuring stable expectations, and delivering long-term benefits, and we must strive to build a modern socialist country in all respects under the rule of law.”

Closely aligned with demands of the era, the Private Sector Promotion Law actively responds to the concerns of private enterprise by making targeted policies in areas such as fair market competition, equal access to production elements and equal legal protection. Some private entrepreneurs said that the law enhances their confidence in the rule of law and sense of security, as it helps create a stable, fair, transparent, and predictable development environment for private businesses.

From management to service
At the 2024 Central Economic Work Conference, Xi summarized the conclusion of “five coordinations.” Among them, the first is coordinating the relationship between an efficient market and an effective government to form an economic order that is both dynamic and well-regulated.

In Hangzhou, private enterprises like DeepSeek and Unitree Robotics have made remarkable breakthroughs, driving the rapid growth of new quality productive forces through technological innovation. Why a wave of cutting-edge companies known as “Six Little Dragons” emerge in Hangzhou?

“Responsive when needed, undisturbed when not.” The local government has established a full-life cycle government service system that integrates “one-window acceptance of demand”, “one-stop service delivery” and “end-to-end support.” In addition, the local government actively conducts policy outreach and provide tailored guidance for businesses. 

A service-oriented government is inherently a law-based one. The greater the legitimacy and standardization of government actions, the lower the governance costs and the higher the market efficiency will be.

In July 2023, the CPC Central Committee and the State Council jointly issued a guideline on boosting the growth of the private economy and made a series of arrangements aimed at improving the business environment.

Further transforming government functions, improving service quality and standards, and advancing the synergy between an efficient market and a proactive government serve as the overarching theme of this effort. The establishment of a private economy development bureau under the National Development and Reform Commission is aimed at strengthening the coordination of private sector development work so as to provide a better environment for their development.

“The private sector enjoys broad prospects and great potential on the new journey in the new era. It is the prime time for private enterprises and entrepreneurs to give full play to their capabilities,” Xi said in February.

From practice to theory, from policy guidance to legal protection, and from a management-oriented government to a service-oriented one, Xi Jinping Thought on Economy has guided China’s private economy to achieve legendary development and present a grand scene of vibrant competition, vividly showcasing the surging momentum of the Chinese economic juggernaut and profoundly highlighting the powerful guiding force of the CPC’s innovative theories.

This is why “we always grow in the wind and rain, and we get stronger through hard times.” 

https://www.globaltimes.cn/page/202505/1334521.shtml