Huazhu Founder Steps Down as CEO a Third Time, as Hotelier Bounces Back from Covid

Ji Qi’s resignation as CEO comes as leading Chinese hotel operator reports strong rebound in first half of 2021 Key Takeaways: Huazhu founder Ji Qi is stepping down as the company’s CEO for the third time, following its latest period of adjustment Observers believe that despite relinquishing the CEO title, Ji will continue to call the shots from behind the scenes in his remaining role as chairman By M.C. Ho With its Covid-19 outbreak under control, China’s hotel industry has largely recovered on a steady track. Against a backdrop of…

Read MORE »

Gaotu Urges Investors to See Education Cleanup as ‘New Beginning’

Company says it will focus on professional education and more holistic learning courses going forward Key takeaways: Gaotu discloses K-12 education services targeted in government education cleanup accounted for 94% of its revenue in three months through June Company says it will focus on education for adults, test preparation and holistic-oriented ‘STEAM’ learning in the future By Doug Young Think of it as a new beginning, rather than the end, of an era. That was the message coming from former education powerhouse Gaotu Techedu Inc. (GOTU.US) in its latest financial…

Read MORE »

Early JW Therapeutics Backer Ruins Regulatory Breakthrough Party With Stake Sale

The Chinese cancer drug maker’s shares surged on news of approval for its core product, only to return to earth after early investor Temasek exited Key takeaways: •      Less than two weeks after JW Therapeutics received regulatory approval to commercialize its core product in China, key early investor Temasek sold all of its stake •      JW Therapeutics’ stock now trades nearly 30% below its IPO price, as numerous obstacles remain in the march to commercialize its cutting-edge cancer treatment By Warren Yang It seems a major breakthrough for JW (Cayman)…

Read MORE »

Everest Joins Race to Make mRNA Covid Vaccines for China

Company’s move comes as Beijing shows growing signs of approving the new type of high-tech vaccination Key takeaways: Everest will pay up to $150 million or more to potentially bring an mRNA vaccine being developed by Canada’s Providence Therapeutics to China Deal comes as Beijing appears increasingly receptive to mRNA vaccines, even though Providence’s jabs have yet to be approved in its home Canada market By Richard Barbarossa China may still be without a Covid-19 vaccine based on messenger RNA (mRNA) technology, generally considered the most effective for preventing infections.…

Read MORE »

Podcast Leader Ximalaya Mounts New IPO Bid Closer to Home in Hong Kong

Company could be valued at around $3 billion when it floats shares, following the official scrapping of its original New York listing plan Key points: Ximalaya’s ditching of its New York listing plan in favor of Hong Kong could mark the start of a new trend for Chinese tech firms that previously favored the U.S. Company could be valued at a relatively high level due to its dominant position with more than two-thirds of the Chinese podcast market By Doug Young What will happen to the roughly half-dozen Chinese IPOs…

Read MORE »

Solid Earnings, Modest Buyback Fail to Boost Drug Seller 111 Inc.

Profitability is now in focus at online drug company, as it seeks to breathe life into its shares that are down 10% this year Key takeaways: 111’s revenue grew 87% in second quarter, generally outpacing its peers, as it aims to more than double its fulfillment capacity this year Company’s shares now trade around $6.50, well off a $23 high reached in February, as investors worry about regulatory wave for broader tech sector By Mia Shanley With massive revenue growth and market share gains in the bag, online drug seller…

Read MORE »

Waterdrop Stock Splashes to New Depths in Summer of Regulatory Cleanups

Company’s shares are down 22% since release of its latest results showed a swing back to an operating loss as marketing costs soared Key Takeaways: •      Waterdrop posted healthy gains in revenue and paying customers in the second quarter, but swung back to an operating loss as sales and marketing costs soared •      Company’s shares are down more than 75% since their April IPO due to a combination of widening losses and regulatory concerns By Thomas Zhang Nobody wants to see their investment evaporate more than 75% in just four…

Read MORE »

Yuzhou Slims Down Under State-Mandated Credit Diet for Property Firms

The mid-sized developer’s shares are down more than 50% this year as Beijing restricts the sector’s ability to borrow Key Takeways: •      Yuzhou Group has breached one of China’s “three red lines” for real estate builders, which will limit its annual debt growth to 10% •      The borrowing constraint will make it more difficult for the company to refinance maturing debt and develop new projects By Warren Yang For smaller Chinese property developer Yuzhou Group Holdings Co. Ltd. (1628.HK), bulking up its business while trying to slim down debt seems…

Read MORE »

Regulatory Wrinkles Spoil So-Young’s Latest Results

Despite posting solid second-quarter growth, cosmetic surgery platform spends much of its earnings call trying to ease investor concerns over a regulatory crackdown Key takeaways: So-Young International devotes much of its second-quarter results trying to ease investor concerns over a potential crackdown on China’s cosmetic surgery industry Company’s revenue rises 37% and profit jumps sharply in latest quarter as business rebounds from year-ago pandemic-induced slowdown By Doug Young The superficial story in the latest results for plastic surgery platform operator So-Young International Inc. (SY.US) was strong growth for top-line revenue…

Read MORE »

Tuya’s Stock Gets Lift From Share Buyback, FTSE Inclusion

Company’s shares surge 25% in the two weeks since announcing a buyback, halting an unexplained selloff Key points: Tuya’s shares have rallied 25% in the nine trading days since it announced a share buyback, but are still well below their levels prior to a recent unexplained selloff Company posted triple-digit revenue growth in the second quarter, banking on its leading position as operator of a platform for internet of things (IoT) developers By Doug Young There’s nothing like a good share buyback to rescue your stock in times of unexplained…

Read MORE »