Kanzhun Weathers Covid Storm, Silent on Data Security Review

China’s leading online recruitment company reported its revenue rose 43% in the first quarter, but forecast a decline in the second quarter due to Covid disruptions Key Takeaways: Kanzhun reported strong first-quarter revenue growth, but predicted it would record its first-ever revenue contraction in the second quarter due to Covid disruptions No updates were provided on a government data security review that is reportedly nearing completion and has prevented the company from registering new users for nearly a year By Doug Young The latest earnings report from Kanzhun Ltd. (BZ.US)…

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Golden Sun Education Shines Brightly in New York Trading Debut

The foreign language educator’s shares quadrupled on their New York debut on Wednesday, and continued to climb on their second day Key Takeaways: Golden Sun Education’s shares quadrupled in their first two trading days in New York, reflecting returning investor confidence to U.S.-listed Chinese stocks Company sold off several schools after last year’s Chinese crackdown on private education providers, and now focuses on foreign language tutoring services By Doug Young Is the sun finally set to shine again on new U.S. listings by Chinese companies? The answer appears to be…

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ClouDr Suffers Chronic Losses but Still Set for High-Value Health IPO

Online medical services provider ClouDr is about to list on the Hong Kong Stock Exchange. Its losses over three years amount to 7.6 billion yuan, but its IPO valuation is still much higher than peers such as Ping An Healthcare and JD Health Key Takeaways: ClouDr’s big investments in marketing and R&D have turned rapidly growing revenues into mounting losses Although far from profitable, the company has been popular with investors, worth 14.6 billion yuan after the final round of financing and seeing its valuation rise to 15.4 billion yuan…

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Energy Monster Expands Its Reach, But Gets Bitten by Covid

The power bank operator formally known as Smart Share Global suffered a 13% decline in first-quarter revenue, and forecast a 30% decline in the second quarter Key Takeaways: •      Leading power bank provider Smart Share Global’s revenue fell 13% in the first quarter as it suffered from pandemic lockdowns •      Company hopes to improve performance with more efficient new power bank cabinet set to launch by the end of this year By Edith Terry When power bank operator Energy Monster (EM.US) made its Nasdaq market debut in April 2021, the…

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Despite iQiyi Denial, Is Baidu Set to Roll Credits on Its Video Affiliate?

Baidu is rumored to be seeking to sell its controlling stake in iQiyi, a video platform dubbed “China’s Netflix”. The report was denied by iQiyi, but Baidu’s silence is stoking market speculation Key Takeaways: A Reuters report says search engine giant Baidu is considering selling the recently profitable iQiyi platform with a target price of $7 billion iQiyi denied the report. But it could make sense for Baidu to divest from video streaming to sharpen its focus on cloud services, AI and self-driving products By Fai Pui Just as the video…

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ZhongAn Moves Further Out of Parental Shadow as Tencent Cuts Stake

Two of the digital insurer’s three big-name parents have trimmed their stakes recently, highlighting the need for company to grow independently Key takeaways: •      Tencent reduced its stake in ZhongAn to about 8% from 10%, less than six months after Alibaba-affiliated Ant Group also cut its stake in the online insurer •      ZhongAn’s net profit more than doubled last year, as reliance on its parents for business has decreased By Warren Yang By accident or design, it’s about time for ZhongAn Online P&C Insurance Co. Ltd. (6060.HK) to shine on…

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Is Koolearn’s Stock Surge on Boom in Livestreaming Business Just a Blip?

Gamble by tuition platform to transform into a livestreaming e-commerce business appears to have paid off, with sales booming and shares climbing more than sixfold in a week Key Takeaways: The company’s unique bilingual sales pitches by its anchors have drawn millions to the platform, which topped livestream e-commerce rankings for days But share price rise may have been due to frothy investor speculation in mainland stocks, as opposed to a broad positive long-term view of company fundamentals By Molly Wen If the recent sudden reversal of fortunes for shares…

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Macro Headwinds Accelerate Cango’s Drive to Car Trading from Auto Finance

Company’s revenue fell 30% in the first quarter and it forecast an even bigger decline in the current quarter as it took a major hit from China’s strict Covid control measures Key Takeaways: Cango’s revenue fell 30% in the first quarter, led by a 74% decline in its legacy auto financing business that the company is de-emphasizing in favor of broader auto trading services The company launched an app version of its Cango Haoche this month, expanding last year’s rollout of a WeChat mini-app that it is positioning at the…

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ATRenew ESG Report Shows Progress, But Still Work to Be Done

Smartphone recycler discloses more details about carbon emissions, steps to improve its governance in its second environmental, social and governance report Key Takeaways: ATRenew’s greenhouse emissions increased substantially last year due to expansion of the scope of reviews Company’s second ESG report also disclosed more details about new activities to improve governance, such as anti-corruption checks Company also introduced the framework of the Task Force on Climate-related Financial Disclosure for the first time while developing a methodology to measure its contribution to reductions in greenhouse gas emissions By Warren Yang…

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