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China’s tech firms place more slowly in June, quarterly growth in a weak demand

(Reuters) – China is the world’s top technology, e-commerce and consumer electronics companies are set to report a sharp slowdown in the growth rate of its earnings for the latest quarter, including a bruising trade war with the United States have weighed on the Chinese economy and hurt consumer spending.

FILE PHOTO: the logo of Alibaba Group is seen at an exhibition during the World Intelligence Congress in Tianjin, China-May 16, 2019 at the latest. REUTERS/Jason Lee

The income of a handful of China’s biggest tech companies, the expected growth rate of 26%, on average, for the quarter that ended on June 30, the lowest in six quarters, compared to the same period a year earlier, according to consensus estimates from Refinitiv. This includes the chinese e-commerce giant Alibaba Corporation (BABA).(K), and its smaller rival, JD.com (JD.).D), internet firm, Baidu Inc (BIDU.(O) and Tencent Holdings (0700.HK), the world’s largest gaming company.

The net income of these companies is expected to grow by 9% in comparison to a runaway increase of 50% in the previous year.

The working class has roiled the markets and global supply chains, and forced technology companies to re-think manufacturing, and marketing tactics. A lackluster June quarter, is expected to prompt companies to make the charges continue to shore up margins.

China’s economic growth slowed to 6.2% in the second quarter, the weakest pace in at least 27 years of age.

“In light of the slowing economy and the tightening of credit in China, and we expect this to be reflected in the … a variety of ways,” said a Taipei-based technology analyst, Sam Reynolds. For the business-to-consumer companies, and this will be reflected in slower spending by consumers, the business-to-business-to-business companies (such as Baidu), this will be reflected in less of an ad buy.” Listed below are a number of milestones for the companies that are scheduled to report their results in the coming weeks, based on the Refinitiv information:

* JD.com which is expected to report earnings on Tuesday, the manage in every with a small profit due to the reduction of the cost. However, with fewer consumers to buy household appliances and electronics, the online retailer, it is likely to post its slowest sales growth in at least the last five years.

* Alibaba’s profit is likely to grow by 27 percent, the fourth consecutive quarterly increase. Great promotions are expected to account for the movement of its turnover by 38%, but this will be the company’s slowest growth rate in 14 quarters.

* Tencent is expected to post earnings growth of 24%, compared to a 2% decline in the previous year, helped by the adoption of its christmas-themed video games, and cloud based services. The audio streaming unit to the back Tencent of Music playback TIME.(N) – on Monday, it missed sales estimates, as it reported the lowest rate of increase in a widely watched metric of growth since its debut in December this year.

* Alibaba, and Tencent, China’s largest publicly-traded companies have lost about $96 billion, the market value of which, as the revolution took a turn for the worse, it Can.

* Baidu’s profit probably fell by 71%, the third straight quarterly decline, as it has invested to keep up with the competition from the privately owned company ByteDance. The revenue is expected to decline by an average of 0.8%, the first decline in 10 quarters.

* Smartphone maker Xiaomi Corp’s (1810.HK$) revenue growth is expected to be the lowest since its initial public offering in July of last year.

* OLED-display-panel maker, BOE Technology (000725.SZ) under the China’s great efforts to counter AMERICAN technology, and is expected to post a 26% increase in revenue, its second consecutive quarter of growth in net profit after three consecutive quarters of decline.

(Figure: the Expected, the quarterly performance link: tmsnrt.rs/2YMioUo).

(Image: a Quarterly performance of China and the US is the tech link: tmsnrt.rs/2YR37BT).

Reporting Gaurav Dogra; additional reporting by Patturaja Murugaboopathy in Bengaluru; Editing by Sayantani Ghosh and Stephen Coates

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