Mass Layoffs at ‘China’s Instagram’: Tough Times or Primping for IPO?

Xiaohongshu confirms cutting 9% of its staff amid similar layoffs at other big internet companies. But some suspect the move may be aimed at improving its financials for an IPO Key takeaways: Xiaohongshu’s recent major layoffs could reflect a tough advertising market, even as it framed the move as normal workforce turnover Others reportedly laying off large numbers of workers include top livestream gaming platforms Huya and DouYu, whose planned merger was nixed by regulators last year By Ken Lo China’s internet realm has become the land of massive layoffs…

Read More »

JinkoSolar Stumbles on Covid Challenges, But Longer-Term Future Remains Bright

Solar panel maker said its revenue fell sequentially from the fourth quarter to the first, but noted the war in Ukraine is speeding a global drive to reduce dependence on fossil fuels Key Takeaways: JinkoSolar blamed Covid disruptions for a 10% sequential decline in its first-quarter revenue, but added such challenges should be ‘short-term and manageable’ Company forecast it will sell 35 GW to 40 GW of capacity this year, implying it is taking market share from rivals By Doug Young Quite a few messages are emanating from two new…

Read More »

FAST NEWS: Covid Vaccine Boosts CanSino to Profitability

The latest: CanSino Biologics Inc. (6185.HK; 688185.SH) said late Thursday its revenue rose 7% year-on-year to about 500 million yuan ($75.5 million) in the first quarter of this year, as it turned from a loss to a profit of 121 yuan million for the period. Looking up: The return to profitability was mainly due to the continued commercialization of products, most notably the company’s updated Covid-19 vaccine. Take Note: The company’s net cash flow from operating activities decreased 25.9% to 159 million yuan in the first quarter, mainly due to…

Read More »

China New Higher Education Thrives on Strong Record, Government Support

Vocational educator placed 98% of its graduates last year, giving it leverage to raise tuitions that powered a 31% revenue jump in its latest financial report Key Takeaways: China New Higher Education placed 98% of its graduates last year, much higher than the industry average, allowing it to raise tuitions Company should benefit from a slew of government policies supporting the sector, including continued involvement by private players By Fai Pui It’s graduation season again, which means a record 10 million students will be hitting the Chinese workforce this year,…

Read More »

FAST NEWS: CIMC Vehicles Slumps as Pandemic Slams Brakes on Truck Demand

The latest: Container truck manufacturer CIMC Vehicles (Group) Co. Ltd. (1839.HK; 301039.SZ) announced its revenue fell 25.3% to 5.13 billion yuan ($782 million) in this year’s first quarter, while its profit also fell 38.7% to 124 million yuan. Looking up: The company’s North America revenue jumped 108.8% as demand for semi-trailers continued to rebound in that market with the receding pandemic. Take Note: The company said continued weakness in China due to Covid-19 disruptions, together with a slowdown in infrastructure construction, led to a decline in the sale of special purpose…

Read More »

Video-Minded Vobile Nears Major Purchase to Boost Growing China Business

Video monetization and copyright protection specialist’s revenue could rise 50% with its new $127 million purchase of Hangzhou-based Particle Technology Key Takeaways: Video services company Vobile said it has secured funding for its $127 million purchase of China-based Particle Technology Company’s stock trades at a premium to peers due to its strong profitability and deepening focus on the fast-growing China market By Christina Meng China’s ongoing regulatory crackdowns may be hitting big tech hard, putting a major damper on growth and forcing many to lay off thousands of workers. But…

Read More »

Yuanxin Tempts Investors With One-Stop Medical Formula in Hong Kong IPO

The internet healthcare company filed its listing application to the Hong Kong Stock Exchange last week, trumpeting its comprehensive approach to medical services Key takeaways: Yuanxin Technology has filed for a Hong Kong IPO a second time, aiming to set itself apart from rivals with its wide range of medical services The company’s revenue grew 65% last year, but its losses are growing even more quickly By Li Yaoyao Once verboten for many medical companies due to listing rules that banned money-losing applicants, Hong Kong has welcomed such high-growth firms…

Read More »

FAST NEWS: Xinjiang Goldwind Posts Strong Profit Growth, But Revenue Decline, in First Quarter

The latest: Wind power equipment maker Xinjiang Goldwind Science & Technology Co. Ltd. (2208.HK; 002202.SZ) said late Tuesday its revenue fell 8.3% in the first quarter of 2022 to 6.4 billion yuan ($962 million). But its profit for the period rose 15.3% to 1.3 billion yuan. Looking Up: Despite the year-on-year revenue decline, the company’s cash flow from the sale of goods and services rose by 8.4% to 8.2 billion yuan from 7.6 billion yuan in the first quarter of 2021. Take Note: The profit increase may have come largely…

Read More »

FAST NEWS: New Oriental Education Sees New Business Revenue Coming Soon

The latest: New Oriental Education & Technology Group Inc. (EDU.US; 9901.US) reported a 48% revenue decline to $614 million and a $122 million loss during its fiscal third quarter through February, according to its latest quarterly report released late Tuesday. Looking up: Founder and Chairman Yu Minhong said revenue from its overseas test preparation and overseas study consulting business – the remaining key business from its core education services – rose by 15% year-on-year. Its domestic test preparation business targeting adults and university students posted even stronger 59% year-on-year growth. Take…

Read More »

Vaping Leader RLX Gets Doused by Latest Regulatory Wave

China has unveiled new rules banning flavored vapes and taken steps to standardize e-cigarettes in new efforts to bring more order to the sector Key Takeaways: Shares of RLX and its peers fell sharply last month after China’s tobacco regulator announced a new ban on flavored vapes starting in May The group got a small boost earlier this month after the country’s market regulator announced new national standards for e-cigarettes By Judy Yang Life isn’t getting any easier lately for China’s vibrant field of vaping companies, which are facing a…

Read More »