FAST NEWS: Cosmetic Surgery Platform So-Young Gets Privatization Offer

The latest: Plastic surgery services platform So-Young International Inc. (SY.US) announced it has received an offer from a group led by its co-founder and Chairman Jin Xing to take the company private at a price of $5.30 per American depositary share (ADS). Looking Up: The price represents a 23% premium over the company’s last close of $4.32 before the Tuesday announcement. Such deals often have the best chance of success when they are led by top company managers, who often hold and control large blocks of the company’s shares. Take…

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FAST NEWS: Rise Education Hits All-Time Low After Auditor Resignation

The latest: Rise Education Cayman Ltd. (REDU.US) announced that Ernst & Young Hua Ming LLP (EY) resigned as its independent auditor effective Nov. 19. Looking up: EY’s resignation isn’t related to suspicions about accounting fraud, but rather to insufficient information. Rise Education has been caught up in China’s “Double Reduction” policy to reduce the burden on primary and secondary school students caused by extra-curricular tutoring, which has dealt a severe blow to Rise and many of its peers, who remain at risk of future additional measures. Take Note: Rise Education failed to…

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FinVolution Solidifies New Growth Path After Weathering Fintech Clampdown

Company’s latest quarterly results show it’s bouncing back strongly from regulatory overhaul for former P2P lenders Key takeaways: •      FinVolution’s user base increased sharply in the third quarter, leading to 41% revenue growth •      The company posted only a small net profit gain because of swelling costs By Warren Yang FinVolution Group (FINV.US) is making respectable strides as it rises from the ashes of its former life as a peer-to-peer (P2P) lender. The company is spending heavily to grow under a new business model as an online loan facilitator, following…

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360 DigiTech Earns ‘Survivor’ Title After Latest Regulatory Wave

After transforming from direct lender to loan facilitator, the fintech led by ‘internet bad boy’ Zhou Hongyi has found a way forward in the face of regulatory headwinds Key Takeaways: 360 DigiTech has reported strong third-quarter results, with both turnover and net income posting solid gains Investment banks are optimistic on the company, with Morgan Stanley raising its target price to $54 – nearly double the current share price By Fai Pui Following Beijing’s determination to clean up China’s fintech sector, “survival” has become the mantra for all companies in…

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FAST NEWS: CIMC Vehicles Surges, Then Fades After Citigroup Cuts Stakeholding

The latest: Citigroup cut its stake in China’s leading container truck maker CIMC Vehicles (Group) Co. Ltd. (1839.HK; 301039.SZ) by approximately 37.53 million shares on Nov. 12, leaving it with only 43,998 shares, according to a stock exchange announcement on Friday. Looking up: There was no immediate news on Monday about who may have bought the shares, since such a large equity transaction is difficult to conduct on the open market. CIMC Vehicles’ price gains after the Citigroup sale was disclosed means the shares might have been successfully transferred to one…

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Battered Autohome Sees Light at End of Tunnel

One of China’s oldest online car specialists posts 24% revenue decline in third quarter on reduced industry spending, but sees relief next year Key Takeaways: Leading Chinese online auto company Autohome says its revenue fell 24% in the third quarter, dragged down by a 50% decline in spending by car manufacturers Company sees global auto sector returning to more normal conditions in second half of next year as chip shortages ease By Doug Young The darkest hour is upon us, but light at the end of the tunnel is also…

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Dingdong Pulls Further Away From Old Opponent, But Profits Remain Far Off

Online grocery giant left its top rival Missfresh in the dust in terms of third-quarter revenue, but its losses keep growing as it pursues more customers Key points: Dingdong’s revenue doubled in the third quarter, but its loss grew even faster by 1.4 times as it become trapped in a cycle of ‘greater losses with more income’ The company’s management admitted returns on investment are still a long way off By Jony Ho Multiple Covid-19 outbreaks have made Chinese consumers increasingly accustomed to buying groceries online. The race for supremacy…

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FAST NEWS: Youdao Revenue Jumps 55% in Q3 Amid Diversification Drive

The latest: Online tutoring services provider Youdao Inc. (DAO.US) announced its revenue grew 54.8% year-on-year to 1.4 billion yuan ($215 million) in the third quarter. Meantime, its net loss narrowed sharply by 85.3% to 129 million yuan. Looking up: The company’s revenue from learning products grew 56% to 255 million yuan on strong growth for its smart learning hardware business. Revenue from its learning services also soared by 65.9% to 996 million yuan. Despite recording a loss for the quarter, the company’s loss margin from operations fell sharply to 9.3% from 99.8% in…

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DouYu Finds Itself in Unfamiliar Waters as Business Shrinks

Former livestream gaming highflyer reports contracting revenue, net loss in third quarter after recent series of setbacks Key Takeaways: DouYu has reported its revenue slipped 8% in the third quarter, while also reporting its fourth consecutive quarterly loss Company has faced multiple challenges recently, including collapse of its planned merger and regulator’s recent freeze on new game title approvals By Doug Young Once a big fish in China’s online game streaming sector, DouYu International Holdings Ltd. (DOYU.US) – whose Chinese name means “fighting fish” – is finding itself in increasingly…

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Xiaohongshu’s Soaring Valuation: a Final Tango Before Listing?

A new funding for the company sometimes called ‘China’s Instagram’ has valued it at $20 billion Key takeaways: Xiaohongshu has completed a new funding round that has doubled its value from just 3 months earlier Some analysts believe such aggressive valuation increases often come ahead of IPOs, though the company has yet to announce any such plans By Jony Ho Chinese online social and shopping platform Xiaohongshu has completed a new financing round, providing a major boost to its valuation. The funding announced last week has lifted the company’s market…

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