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Tag: China

  • Tencent Cloud Teams Up With Acclivis to Bring Cloud and ICT Offerings in SE Asia, Mainland China and HK

    Tencent Cloud Teams Up With Acclivis to Bring Cloud and ICT Offerings in SE Asia, Mainland China and HK

    Tencent Cloud and technology services provider Acclivis Technologies and Solutions announced that they have signed a strategic partnership to bring private, public and hybrid cloud and ICT solutions to enterprises in Southeast Asia, mainland China and Hong Kong.

    Tapping Acclivis’ presence in Singapore, Malaysia, Indonesia, Thailand, Philippines and Hong Kong as well as Tencent Cloud’s expertise and experience in China, the collaboration primes both parties to be the go-to partners for Southeast Asian enterprises who want to access China as well as Chinese enterprises keen to expand in Southeast Asia.

    The combined platform will offer Tencent Cloud’s cloud computing services and industry solutions available for verticals including financial services, entertainment, gaming, media and entertainment, retail and more.

    Additionally, the collaboration also provides a one-stop ICT platform featuring the internet services, managed services and IT end-user support provided by Acclivis to address the diverse and interconnected needs of every enterprise’s digital transformation journey.

    This full-suite ICT platform will allow enterprises to enjoy a better customer experience through simplified IT management using AI and machine learning, and also reap cost savings from the synergies expected from the partnership.

    Further highlighting Tencent Cloud’s commitment to bringing only the best cloud solutions to every part of the world, Tencent Cloud said it is pleased to team up with Acclivis to serve Southeast Asian enterprises who want to expand their reach to China.

    Kenneth Siow, regional director for Southeast Asia and general manager of Singapore, Malaysia and Indonesia, Tencent Cloud International, said, “Enterprises all over Southeast Asia have clamored for cloud technology that would help them easily connect their businesses to China. We are pleased to enter this new agreement with Acclivis to help businesses and organizations expand their global footprints, whether they are from Southeast Asia or China.”

    Meanwhile, Marcus Cheng, CEO of Acclivis Technologies and Solutions, added, “Acclivis’ mission is to provide reliable and comprehensive ICT solutions to help organizations realize the power of digital transformation. Leveraging on our deep roots in Southeast Asia, our internet connectivity and managed services capabilities, and Tencent Cloud’s years of experience in providing cloud services to various industries, our new partnership will put us ahead of the curve to access greater opportunities in Southeast Asia and China.”

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  • Yum China applies to add primary listing in Hong Kong

    Yum China applies to add primary listing in Hong Kong

    YUM China Holdings said on Monday (Aug 15) it has applied for a primary listing in Hong Kong, as the company looks to circumvent a risk of delisting from the New York Stock Exchange amid tight regulatory scrutiny on Chinese companies.

    The move comes on the heels of an audit dispute between China and the United States, which is threatening to kick out hundreds of Chinese companies listed in New York.

    E-commerce giant Alibaba Group Holdings had also said last month it would convert its Hong Kong secondary listing into a dual primary listing.

    Five US-listed Chinese state-owned firms, including oil giant Sinopec, last week said they would voluntarily delist from the NYSE, after the Securities and Exchange Commission flagged more than 270 companies, including Yum China, for failing to meet US auditing standards.

    Yum China, which runs the KFC and Taco Bell chains in China, said the conversion from its current secondary listing status to primary listing is expected to be completed in October, subject to shareholder approval.

    The company will become dual primary listed on the NYSE and the Hong Kong Stock Exchange, it added.

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  • Secoo files for bankruptcy for the second time

    Secoo files for bankruptcy for the second time

    Secoo, once China’s top online luxury goods retailer, has filed a bankruptcy petition for the second time this year, showing how difficult it is for some companies to survive amid waning domestic consumption power in the country.

    Beijing Siku Shangmao Co, the corporate entity of the Nasdaq-listed company, filed a bankruptcy case with the First Intermediate People’s Court of Beijing Municipality, according to public records database Tianyancha on Wednesday.

    In January, after several domestic media outlets reported that Secoo had filed for bankruptcy in Beijing, the company retracted a petition to wind up, according to a notice on China’s bankruptcy disclosure platform.

    Founded in 2008 by Chinese entrepreneur Richard Li Rixue, the retailer quickly gained backing from private equity firms. It grew from a second-hand handbag shop into China’s largest luxury goods exchange for individuals, with a 2017 initial public offering on Nasdaq raising US$140 million.

    Its stock fell to US$0.27 in New York trading on Wednesday, compared to a high of US$14.6 four years ago. Since late last year, Secoo’s shares have been trading below US$1.

    On December 17, 2021, the firm received a delisting warning after its closing bid price for 30 consecutive business days fell below US$1 per share, Nasdaq’s minimum bid price requirement.

    Under an initial 180-day grace period, which ended on June 15, Nasdaq said the company would be officially delisted if its closing bid price was not above US$1 per share for at least 10 consecutive business days.

    On June 17, the company said Nasdaq had granted it a second 180-day grace period, until December 12, 2022, to comply with the minimum bid price requirement.

    Analysts attributed the company’s problems to several factors. While it caught the early wave of luxury e-commerce business in China, it also made several business decisions that deviated from its original mission.

    For example, it invested heavily in live streaming, with a 7,000-square-metre facility and dedicated team, and also vowed to disrupt the luxury resale sector with a blockchain-empowered authentication service.

    Adding to Secoo’s internal missteps, demand for luxury goods has softened, with China’s total national retail sales only rising 3.1 per cent year on year in June.

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  • China Tourism seeks $2.16 billion in Hong Kong’s biggest listing this year

    China Tourism seeks $2.16 billion in Hong Kong’s biggest listing this year

    China Tourism Group Duty Free Corp is aiming to raise up to $2.16 billion through a new listing in Hong Kong, according to a term sheet reviewed by Reuters, in what will be the largest share sale in the city so far this year.

    Shanghai-listed China Tourism is planning to sell 102.76 million shares priced between HK$143.50 and HK$165.50 ($18.30 and $21.10) each, the term sheet said.

    The offer has already been fully subscribed, according to two people with direct knowledge of the matter. The sources spoke on condition of anonymity because they were not authorised to discuss the matter with media.

    China Tourism, which has built the largest duty-free retail network in China, did not respond to a request for comment on the deal’s launch or subscription rate.

    The launch of the deal comes as Hainan island, in China’s south where China Tourism has several major shopping outlets, remains under tight restrictions due to an outbreak of COVID-19.

    The price range represents a 29.3% to 38.7% discount to the stock’s 201.19 yuan closing price on Thursday in Shanghai. The Shanghai shares fell 3.1% on Friday after the Hong Kong deal was launched.

    Hong Kong share sales of Chinese-listed companies are typically offered at a discount to entice investors to buy the stock but the flagged discount of China Tourism is higher than normal. The rate was chosen to help ensure the stock trades positively in the secondary market, one of the sources with direct knowledge told Reuters.

    China Tourism’s Shanghai-listed shares have recovered most of their losses since lockdowns across Hainan began to be ordered last week. Its shares are down 11% year-to-date.

    China Tourism plans to set the final price next Thursday, the term sheet said, and the Hong Kong stock will start trading Aug. 25.

    Almost 40% of the stock on offer in the deal has been sold to cornerstone shareholders who will invest about $795 million, according to the term sheet.

    Sanya, a holiday city on the southern end of Hainan island at the centre of the COVID outbreak, reported 1,690 symptomatic and 1,504 asymptomatic cases from Aug. 1 through Aug. 10.

    The duty-free shop operator’s deal, if executed, would surpass Tianqi Lithium’s $1.71 billion deal, which opened in late June, to become the biggest share sale in Hong Kong in 2022.

    Tianqi’s Hong Kong shares were priced at a 50% discount to its Shenzhen stock and are trading only marginally higher since it debuted in mid-July.

    “After the tepid performance by Tianqi Lithium, the only way they could get away with the China Tourism deal was by offering it at a decent discount,” said Aequitas Research director Sumeet Singh, who publishes on Smartkarma.

    “If it does go well other deals should follow as the pipeline for Hong Kong deals is now fairly full and needs to get moving soon.”

    There has been $4.9 billion worth of initial public offerings and secondary share sales in the city this year compared to $34.7 billion at the same time last year, according to Dealogic data.

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  • Missfresh summonsed by Beijing consumer rights group after complaints

    Missfresh summonsed by Beijing consumer rights group after complaints

    A Beijing consumer rights group said on Tuesday it had asked Missfresh to work on plans to refund its customers and explain how it will rectify its business after receiving a number of complaints, adding to pressures facing the Tencent Holdings and Tiger Global-backed grocery startup.

    The government-backed Beijing Consumer Association said in a statement on its website on Tuesday that a large number of Missfresh customers had complained about the platform’s “abnormal operations”.

    Missfresh did not immediately respond to a request for comment.

    The grocery delivery firm’s troubles come as China’s tech sector grapples with slowing growth amid COVID-19 lockdowns and tightening regulatory oversight.

    The company pioneered one-hour fresh food delivery services in China, a model that is extremely popular with consumers but is labour and capital intensive. It listed on the Nasdaq in June last year, raising $273 million.

    However, the company’s stock has lost 98% of its valuation since and in late July local media reported that it had abruptly laid off hundreds of employees and had not paid salaries, triggering labour arbitration complaints.

    Missfresh has cancelled its one-hour delivery service, changing it to a next-day model, and told local media that it had conducted layoffs due to business restructuring.

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  • China’s Luckin Plans Store Expansion, Remains Committed to USA Market

    China’s Luckin Plans Store Expansion, Remains Committed to USA Market

    Two years after it was forced to withdraw from the Nasdaq for an accounting fraud, China’s Luckin Coffee believes it has emerged from its “darkest moment”, and said it remains committed to U.S. capital markets as it expands its stores and sales.

    Luckin admitted in 2020 that about $310 million of its sales were fabricated in the previous three quarters, bringing the coffee maker to the brink of collapse after having blazed a trail as a homegrown challenger to U.S. coffee giant Starbucks.

    “That was Luckin’s darkest moment. The company was facing a huge crisis at the time”, David Li, chairman and chief executive of Chinese private equity firm Centurium Capital, told Reuters, referring to the accounting fraud.

    Luckin delisted from Nasdaq following the financial scandal, shocking Wall Street investors. After changes in ownership and top management, as well as paying hundreds of millions of dollars in fines, the company once again is flexing its muscles.

    A turnaround for Luckin would help vindicate the company’s top management and new owners, who have continued to push the chain to expand in China’s highly competitive coffee market.

    Luckin in May reported its first ever quarterly operating profit. On Monday, it reported a 72% jump in net revenue for the June quarter. In comparison, Starbucks said last week its third quarter comparable sales in China fell 44%.

    Centurium, a key early investor of the coffee chain, in January became the firm’s controlling shareholder after leading a consortium to acquire shares that used to be owned by two of Luckin’s founders for more than $400 million.

    Centurium dispatched seven of its professionals to work with Luckin’s management team for months in the aftermath of the fraud and in the following year poured $240 million into the business to finance its restructuring.

    It has also pushed Luckin to rebuild a more transparent and connected database to ensure there are no “data silos”, which Li blamed for the accounting scandal.

    Luckin plans to continue to open new stores, said Luckin’s chief executive Guo Jinyi, even as China’s stringent COVID-19 curbs have forced many catering chains to be more cautious about expansion in the near-term.

    He said Luckin would add more outlets across the country, including in the top-tier cities such as Beijing and Shanghai.

    Luckin, which was founded five years ago, currently has nearly 7,200 shops in China, compared with Starbucks’ 5,761 by early July.

    “We believe the potential of China market remains huge,” Guo said, adding that though Luckin has reached 230 Chinese cities, more than 5,000 of the stores are located in the 50 to 60 major cities.

    Ever after the Nasdaq delisting, Luckin remains tradable via pink sheet, off-exchange trading platform mainly involving penny-stock companies that do not meet the main exchanges’ listing standards.

    On Monday Reinout Hendrik Schakel, who relinquished his chief financial officer role but remains as chief strategy officer, told analysts the company remained committed to the U.S. markets.

    “We don’t have a specific timetable yet,” Guo said of a possible Nasdaq return. “But we will continue to pay attention to and focus on the U.S. capital market … So far, we haven’t considered (re-listing) in other markets.”

    Though Luckin is ahead of Starbucks in store numbers in China, the U.S. coffee chain is still the dominant player with 28.9% of the market in 2021, dropping slightly from previous year’s 31.2%, according to Euromonitor.

    Market share of Luckin rose to 7.8% last year from 6.3% in 2020.

    Asked how Luckin plans to restore investors’ confidence, Guo said: “We can only rely on Luckin’s business performance, rely on issuing (strong) quarterly, annual reports to restore their confidence. It takes time.”

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  • Chinese Property Worries Trigger Surprise Trust Audit

    Chinese Property Worries Trigger Surprise Trust Audit

    China’s national auditor is making surprise checks in the nation’s $3 trillion trust industry which is also feeling the ripples of the ongoing property crisis.

    China’s National Audit Office has been inspecting the books of at least 20 trust firms in the last month – including the industry’s top five – according to a report citing unnamed sources.

    The firms are being asked to report on risky loans to developers as well as any plans for the disposal of such assets. The audit office is expected to submit its conclusions to policymakers in Beijing who could decide on future reforms for the sector. The inspection is still in progress and no conclusions have been made thus far.

    China’s trust sector is the most unconstrained funding channel in the financial industry with loans and investments across stocks, bonds, commodities, real estate and more. The sector was once a popular source of property funding with related investment products that were viewed as safe bets by wealthy Chinese individuals and institutions.

    The sector holds a combined 20.2 trillion yuan in assets ($3 trillion), as of end-March, according to the China Trustee Association.

    The surprise audit with a focus on real estate-linked risk occurs in the midst of an ongoing property crisis that has been headlined by mortgage boycotts over unfinished housing projects by cash-strapped developers. In addition to the trust audit, authorities have responded by offering grace periods for mortgage payments and the establishment of a fund by the People’s Bank of China to support developers to finish building homes.

    This year, trust firms have defaulted on about 58 billion yuan of property-linked investment products, according to data tracker Use Trust, which are popularly sold to wealthy Chinese.

  • China Now Has More Than 1.85 Million 5G Base Stations

    China Now Has More Than 1.85 Million 5G Base Stations

    China’s Ministry of Industry and Information Technology said that the country has now deployed more than 1.85 million 5G base stations nationwide as it pushes for its target of a total of 3.64 million by the end of 2025.

    According to the government website, fixed asset investment in the telecommunications industry has also increased by almost 25% year-on-year, now reaching 189.4 billion yuan during the first six months of the year.

    Data from the industry regulator shows that as of June, the country has deployed more than 1.85 million 5G base stations, and the number of 5G mobile users was at 455 million.

    The spokesman and chief engineer of the Ministry of Industry and Information Technology, Tian Yulong, stressed that initiatives should be undertaken to immediately begin a series of crucial projects in 5G, gigabit optical networks, the industrial internet and other new information infrastructure to both broaden investment and boost consumption.

    Officials also said that China is seeking to add 600,000 5G base stations this year and speed up their upgrade of the industrial internet.

  • Maybelline to shut all stores in China

    Maybelline to shut all stores in China

    The L’Oréal-owned American cosmetic brand Maybelline is gradually shuttering all of its physical stores across China as it aims to shift its focus in the market to online, the brand confirmed Wednesday.

    In a statement sent to local media, the brand said, “In response to changes in the market and consumer demand, Maybelline New York has been gradually strategically transforming its traditional offline channels since 2020 to achieve a cohesive online and offline shopping experience and to bring consumers a more diverse beauty shopping experience.”

    Customer service from the brand further revealed that the timeline for store closures is not clear so far, but counters within the drugstore chain Watson’s will continue to operate.

    The century-old beauty brand, acquired by L’Oréal in 1996, entered the Chinese market in 1997 and soon became a popular choice for a large number of women who moved from the countryside to big cities in pursuit of an office job as the nation was shifting to a service industry-led economy at the time.

    Maybelline was a key player in the affordable cosmetic sector through brick-and-mortar channels such as supermarkets and department stores, but the brand in recent years failed to catch up with local competitors and adapt to the disruptive Chinese e-commerce model.

    The brand withdrew from the supermarket channel in 2018 and began to leave department stores in 2020.

    This shift coincides with the rise of C-beauty brands, as well as L’Oréal gradually pivoting its focus toward the prestige category.

    Data from market researcher Qianzhan Industry Research Institute shows that Maybelline’s market share in the Chinese market fell to 4.9 percent last year from 10.7 percent in 2018, while Florasis and Perfect Diary became two of the most popular brands, taking market shares of 6.8 percent and 6.4 percent, respectively.

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  • % Arabica China franchisee raising funds at $1.2 billion valuation

    % Arabica China franchisee raising funds at $1.2 billion valuation

    The China operator of coffee chain % Arabica is weighing a new funding round and could seek a valuation for its business in the country of as much as $1.2 billion, according to people familiar with the matter.

    Lucky Ace International Ltd., which holds the exclusive franchise of the Japanese coffee retailer in Greater China, is looking to raise about $300 million to bankroll its expansion and has reached out to potential investors for the round, the people said. Lucky Ace was valued at about $800 million to $900 million in its last funding round, said the people, who asked not to be identified as the information is private.

    Deliberations are ongoing and the proposed funding size and valuation could still change, the people said. A representative for PAG declined to comment, while % Arabica didn’t immediately respond to requests for comment via email and its website.

    Founded in Kyoto in 2014, the gourmet coffee brand entered China in 2017 with the opening of two Hong Kong stores, and launched in Shanghai the following year, according to the operator’s website. There are 61 locations across the country, the parent’s website shows. Private equity investors PAG and General Atlantic are among the chain’s backers.

    China’s coffee market is growing, though it remains a niche beverage in a nation of tea drinkers, Bloomberg Intelligence analysts Angela Hanlee and Kai Lin Choo wrote in April. Annual consumption is just 5.3 cups per capita versus 51.1 cups elsewhere in Asia Pacific. Starbucks Corp. and Luckin Coffee. have increased coffee awareness in the country, with their more than 5,000 and 6,000 stores in China respectively.

    Shanghai-based Manner Coffee, which counts ByteDance Ltd. and a venture arm of food delivery giant Meituan as backers, is considering an initial public offering in Hong Kong that could raise at least $300 million.

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  • Luxury bakery chain Lady M shuts stores in Mainland China

    Luxury bakery chain Lady M shuts stores in Mainland China

    Luxury confections brand Lady M will close all outlets on the Chinese mainland by September 10 but plans to return with a new business strategy later.

    The New York-based patisserie brand has 27 licensed stores in Chinese cities including Shanghai, Beijing, Shenzhen and Xiamen, as well as three food-processing plants.

    Customers who own prepaid cards and vouchers can still use them to make offline and online purchases before September 10.

    They can also claim a refund between September 1 and September 15 through its mini-program on WeChat mini program.

    The company announced earlier this month that it plans to pursue a direct company-owned strategy in China to strengthen business and drive growth.

    Lady M did not renew the license agreement with Shun Lee Shanghai Commercial Management Co for five provinces, which expired on April 9.

    “We have built up a significant business presence in the past five years and regret any inconvenience caused by the closing of the license stores,” Shanghai Muxin Catering Service Management Co, a wholly unit of Shun Lee, said in an announcement on Wednesday.

    Lady M’s stores at high-end shopping malls and popular areas always attract large crowds, with people queuing up for a taste of its handmade multi-layered crêpe cakes and gourmet desserts.

    The first Lady M boutique store in China was launched at the IFC Mall in the Lujiazui area of ​​​​Shanghai in September 2017.

    Microblog user “Lovley Butter” has been ordering birthday cakes from Lady M for the last few years as an avid lover of its signature multi-layered crêpes.

    But new bakery and dessert stores have continued to emerge in recent years, which have done better at catering to local tastes and providing seasonal offerings.

    Lady M said it is looking forward to taking a direct role in elevating the China business, a market that is pivotal to its growth strategy, said CEO of Lady M, Ken Romaniszyn, in a press release on July 14.

    It plans to focus on developing the China market with new concept boutiques and innovative product offerings, allowing the company to maintain the highest quality and consistency for its customers.

  • China scraps Covid bans on Vietnamese seafood

    China scraps Covid bans on Vietnamese seafood

    Chinese authorities will no longer penalize Vietnamese seafood exporters with a temporary ban if their containers are found contaminated with Covid-19, that country’s embassy in Hanoi has said.

    Exporters used to face a seven-day ban for every container of theirs found contaminated with the coronavirus. A seafood exporter who was once banned for three weeks said shipments have returned to normal.

    “China is trying to reduce the damage caused by its zero Covid strategy, and so exporting to the country has now become easier.”

    Dozens of Vietnamese exporters suffered from the ban, some for weeks and even months due to the large number of containers infected.

    Vietnam exported US$427.6 million worth of seafood to China in the first six months, up 107 percent year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

    VASEP expects exports to China to boom in the second half of this year following the easing of the draconian safety measures.

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  • China Now Has More Than 1.85 Million 5G Base Stations

    China Now Has More Than 1.85 Million 5G Base Stations

    China’s Ministry of Industry and Information Technology said that the country has now deployed more than 1.85 million 5G base stations nationwide as it pushes for its target of a total of 3.64 million by the end of 2025.

    According to the government website, fixed asset investment in the telecommunications industry has also increased by almost 25% year-on-year, now reaching 189.4 billion yuan during the first six months of the year.

    Data from the industry regulator shows that as of June, the country has deployed more than 1.85 million 5G base stations, and the number of 5G mobile users was at 455 million.

    The spokesman and chief engineer of the Ministry of Industry and Information Technology, Tian Yulong, stressed that initiatives should be undertaken to immediately begin a series of crucial projects in 5G, gigabit optical networks, the industrial internet and other new information infrastructure to both broaden investment and boost consumption.

    Officials also said that China is seeking to add 600,000 5G base stations this year and speed up their upgrade of the industrial internet.

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  • ZTE Signs Partnership with Two Philippine Universities

    ZTE Signs Partnership with Two Philippine Universities

    ZTE announced that it has entered strategic partnerships with two well-known universities in the Philippines as it aims to cultivate young talents in the telecom industry under its program called the “Ultimate Service, Leading Ecosystem”.

    The global telecommunications giant has signed an agreement with the University of Santo Tomas (UST) and Polytechnic University of the Philippines (PUP).

    In a press release, ZTE said that this cooperation involved a wide range of programs including internships, faculty immersion, career consultancy and campus recruitment, online seminars and forums, training camps, a scholarship program and joint research exploration in emerging technology fields, among others.

    UST’s President and Rector, Richard G. Ang said that they look forward to this partnership with ZTE as it fits in line with the university’s future development. He added, “We hope that our partnership will set up a new model for the Industry-Academe Linkage Program.”

    Meanwhile, PUP’s President, Dr. Muhi said, “I am very happy that PUP is the first university in the Philippines to sign a strategic cooperation with ZTE. This can enhance the accessibility to the telecommunication knowledge for our college students and provide them with financial support to continue their studies.”

    ZTE said that this collaboration with the two Philippine universities serves as an essential component in the company’s ecosystem plan in the country, and can also allow the company to broaden this ecosystem and boost its competitiveness with its partners in the industry to deliver better services and products.

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  • Burberry held back by China lockdowns and US weakness

    Burberry held back by China lockdowns and US weakness

    Luxury brand Burberry was hurt by lockdowns in its biggest market China and an abrupt reversal in fortunes in the Americas, limiting its first-quarter sales rise to 1 per cent.

    The British brand, known for its red, black and camel check and TB monogram, saw comparable sales in mainland China plunge 35 per cent as Covid-19 lockdowns disrupted stores and distribution.

    All its stores were open by the end of June, Chief Financial Officer Julie Brown said, and the company was “encouraged” by how they were performing, but testing requirements were holding back the return of some shoppers.

    Luxury rival Richemont also felt the shortfall in mainland China, where its sales were 37 per cent lower for the quarter.

    Outside China, Burberry reported a 16 per cent rise in comparable store sales, with Europe up 47 per cent, helped by store ranges tailored to local demand rather than to still absent tourists from Asia.

    But the Americas, Burberry’s best performing region last year, went into reverse, with comparable store sales down 4 per cent.

    Brown said leather bags and outerwear were selling well, but “sneakers and slides – the shoe business – and the small leather goods category (were) somewhat weaker.”

    “I think this is largely because people have changed from staying in and wearing casual wear to be going out a lot more now than they were before,” she said.

    Shares in Burberry, which are down 20 per cent over the last 12 months, fell 7 per cent in early deals on Friday.

    Brown said Burberry was facing increases in transportation, commodity and labour costs, but it was managing them by focusing on procurement efficiencies.

    “We’re also very conscious of the pressure on the people and communities,” she said. “But in terms of business overall, we’ve not seen a major pressure on younger consumers at this point in time.”

    Burberry said its medium-term target of high-single digit revenue growth and 20% margins was unchanged.