FAST NEWS: Huazhu Loss Doubles in Q1, Sees Q2 Revenue Contraction

The latest: Hotel operator Huazhu Group Ltd. (HTHT.US, 1179.HK) reported its net loss widened by 154% to 630 million yuan ($94 million) in the first quarter from a year earlier, despite a 16.4% increase in hotel turnover to 9.5 billion yuan, according to its latest results published on Monday. Looking up: The company’s own first-quarter revenue grew 15.2% to 2.68 billion yuan, slightly outperforming its previously announced guidance for 11% to 15% growth, mainly due to a 17.5% increase in leased and owned hotel revenue to 1.64 billion yuan. Take Note: The wider loss…

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YSB’s B2B Pharma Platform: Sexier Than the SOEs, But Stodgier Than B2Cs

The drug distributor for pharmacies and community-level medical institutions has filed for a Hong Kong listing, boasting strong revenue growth but also massive losses Key Takeaways: YSB has filed for a Hong Kong listing, operating a B2B drug-selling business model with lower margins than B2C platforms Company operates a drug-trading platform and its own proprietary business, with a P/S ratio lower than B2C platforms but higher than traditional drug distributors By Molly Wen While selling to consumers can generate big user numbers for e-commerce companies, it also generates big pressure…

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ATRenew Starts the Year Off Strong, Braces for Covid Impact

The smartphone recycler’s revenue rose 45.7% in the first quarter, but it forecast a slowdown in the second due to pandemic-related disruptions before a gradual recovery later in the year Key Takeaways: ATRenew‘s revenue rose 45.7% in the first quarter to 2.2 billion yuan as both product and service revenues recorded strong gains   Company could benefit over the longer term from the rollout of China’s first guidelines for used electronics refurbishment by the city of Shenzhen in April By Doug Young Leading smartphone recycler ATRenew Inc. (RERE.US) has posted…

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FAST NEWS: Maturing Pinduoduo Posts Single-Digit Revenue, User Growth

The latest: E-commerce company Pinduoduo Inc. (PDD.US) said on Friday its revenue rose 7% year-on-year to 23.8 billion yuan ($3.6 billion) in the first quarter. The company, which specializes in sales to China’s smaller cities, reported a first-quarter profit of 2.6 billion yuan, compared with a 2.9 billion yuan loss a year earlier. Looking Up: Excluding merchandise sales, which fell 99% during the quarter, the company’s revenue rose 39% in the first quarter to 23.7 billion yuan. Take Note: The company’s average monthly active users (MAUs) rose just 4% year-on-year to 751.3 million during the…

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‘Chinese WeWork’ UCommune Reports Huge Losses, Sees Dark Days Ahead

Falling demand for office spaces during Covid-19 and massive goodwill depreciation lead to record-breaking losses for the coworking operator Key Takeaways: UCommune breaks new net-loss record in 2021 and has burned through 4 billion yuan in the past four years Huge losses indicate the company still has a long way to go in terms of asset-light transition By Wang Chuan Co-working operator UCommune International Ltd. (UK.US), dubbed the “the Chinese WeWork,” recorded a massive loss of 2.13 billion yuan ($333.7 million) for 2021, the company said earlier this month. Most of the loss – $258…

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In Search of Profits, Q&A Site Zhihu Finds New Answer in Vocational Education

Company often called the ‘Quora of China’ reported a huge jump in vocational training revenue in the first quarter, even as its overall losses widened Key Takeaways: Zhihu’s revenue grew 55.4% in the first quarter, but its adjusted net loss grew by an even bigger 89.8% Company’s vocational education services could be a major new growth engine, as China encourages private sector investment in the area By Christina Meng In the ongoing game of “yes” and “no” being played by leading Q&A site Zhihu Inc. (ZH.US; 2390.HK), the answer on…

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Living in TikTok’s Shadow, Kuaishou Bleeds Red Ink and Cash

The short-video platform’s loss narrowed by 34% in the first quarter, as investors worry about how long its cash can last Key Takeaways: Kuaishou’s adjusted net loss narrowed in the first quarter, but its ad revenue came under pressure during China’s latest Covid containment measures The company’s user base is almost half as large as that for TikTok parent ByteDance, even though its operating revenue and gross profit are just one-third as big By Ken Lo  Shares of Kuaishou Technology (1024.HK) have come a long way since their trading debut in Hong Kong last…

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FAST NEWS: Baozun’s Profit Plunges as Alibaba Reliance Eases

The latest: E-commerce software as a service (SaaS) provider Baozun Inc. (BZUN.US; 9991.HK) said its revenue fell 1.8% year-on-year in the first quarter to 1.98 billion yuan ($294 million), while its non-GAAP operating profit fell 93.8% to 4.7 million yuan, according to its latest results published on Thursday. Looking up: The company’s gross merchandise value (GMV) for the period reached 17 billion yuan, an increase of 28.4%, mainly benefiting from an 86.1% jump in GMV for its service fee model. Take Note: Electronics and appliance sales slowed as the company optimized its distribution business,…

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Miniso Rides Into China Covid Storm With Forecast for First-Ever Revenue Contraction

Retailer known for its small, brightly lit stores posted 5% revenue growth in the first three months of 2022, but said the figure is likely to decline around 9% in the current quarter Key Takeaways: Miniso said it expects its revenue to decline around 9% in the current quarter as many of its China stores have been forced to shut down during recent citywide lockdowns Company said nearly one-tenth of its China stores were closed in March, even as its smaller international operations continued to rebound By Doug Young Fasten…

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CanSino’s Covid Vaccine Gets WHO Nod. But Is It Too Little, Too Late?

The company’s Convidecia has received emergency-use authorization from the World Health Organization, becoming the third Chinese vaccine to get that nod Key Takeaways: CanSino’s Covid-19 vaccine Convidecia will be admitted to the global Covax program following its approval by the WHO The approval could have limited benefits for the company as the pandemic fades and other products are widely available By Jony Ho As the Covid-19 pandemic recedes and countries start to reopen, the World Health Organization (WHO) has just granted an emergency-use license to yet another Chinese vaccine. But…

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