FAST NEWS: Nayuki Swings to Loss as Covid Hits Tea Consumption

The latest: Premium tea chain operator Nayuki Holdings Ltd. (2150.HK) issued a profit warning on Friday, saying it expects to record an adjusted net loss of 230 million yuan to 270 million yuan ($34 million) in the first half of the year, reversing a profit in the first half of 2021. Looking up: Despite weak consumption in the first half of the year due to China’s Covid control measures, the company’s revenue declined only modestly by 2.63% to 4.98% to between 2.02 billion yuan to 2.07 billion yuan, Nayuki said. Take Note: The company…

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FAST NEWS: Hywin to Acquire Health Management Services Company

The latest: Wealth management services provider Hywin Holdings Ltd. (HYW.US) said on Friday it has agreed to buy a controlling interest in Beijing iLife3 Technology Co. Ltd., a provider of health management services, for 140 million yuan ($20.7 million). Looking Up: The acquisition will provide Hywin with a major new revenue source as it seeks to tap exploding demand for services in China’s healthcare services market. Take Note: The purchase is well outside Hywin’s core business of providing wealth management services, and thus would bring the company into unfamiliar territory.…

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No Good Times Here, as Gome Slashes ‘FUN’ E-Commerce Unit

Former retailing giant makes massive cuts at its recently launched service combining online shopping with social networking and entertainment Key Takeaways: Gome is scaling back its e-commerce push that was part of a drive to regain its former glory, making massive layoffs at its FUN online unit.  Company’s revenues stagnated last year as its transition to e-commerce stalled, similar to the fate of other older brick-and-mortar retailers like its former rival Suning By Trevor Mo In early 2021, former retailing magnate Huang Guangyu was unequivocal when asked about his next…

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Tumbling Profits Fail to Slow Jiumaojiu’s Appetite for Expansion

The restaurant chain known for its Tai Er brand of ‘sauerkraut fish’ said its profit fell 70% in the first half of the year on Covid disruptions and a rapid expansion Key Takeaways: Jiumaojiu warned its profit plummeted by 70.4% in the first half of the year due to pandemic disruptions and rising expenses from new store openings Company is valued much higher than its peers, reflecting investor optimism about its prospects By Tina Yip The past seven months have been a sour time for restaurants throughout China. Even investor…

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