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…

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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…

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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…

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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…

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Online Travel Agent Tongcheng-Elong Gets Lift from T. Rowe Price

Company reports second-quarter revenue rose 78% year-on-year, as US fund manager separately discloses its purchase of a 5% stake Key Takeaways: Tongcheng-Elong has rebounded from the pandemic more quickly than the larger Trip.com due to its focus on domestic China market Company’s shares look modestly valued compared to domestic and global peers due to its stronger growth potential over next one to two years  By Doug Young Online travel agent Tongcheng-Elong Holdings Ltd. (0780.HK) looks like a company on the move, with a name change on the horizon and a…

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China Logistics Property Heading for Listed Company Exit Door?

Logistics warehouse operator’s chairman to sell most of his 28% stake to JD Logistics, paving the way for a possible buyout Key takeaways: JD Logistics has offered to buy an additional 26% of China Logistics Property’s shares for $515 million, raising its stake to 37% If that purchase is completed, JD Logistics could offer to buy out China Logistics’ remaining shares at a 9% premium to their pre-announcement price levels By Doug Young Logistics has become a hot topic in China these days, forming a crucial plank in the herculean…

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Dingdong Boosts Lead Over Older Rival for High-End Grocery Delivery

4-year-old company posts 80% revenue growth in its first quarterly earnings report, double the rate for its 7-year-old rival Missfresh Key points: Online grocer Dingdong boosted its edge over older rival Missfresh by posting sharply stronger revenue growth in the second quarter The two companies could be well positioned to avoid a recent wave of regulatory scrutiny due to their relatively small size

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Lexin Slows Down Lending as Latest Regulatory Wave Rocks Fintechs

Company scales back 2021 loan facilitation goals amid latest talk that Beijing could sharply lower interest rate cap for personal loans Key Takeaways: •      LexinFintech is voluntarily slowing down its lending activity while it awaits the next major move in China’s rapidly evolving regulatory environment •      Company’s shares tumbled after its latest quarterly results announcement, despite reporting 10% revenue growth and 88% profit growth By Thomas Zhang Solid growth is the gold standard for investors, even though such growth may not guarantee a stock will rise. That lesson is on…

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Investors Cheer ZhongAn’s Insurance Milestone. But Only Briefly

Online insurer backed by Alibaba, Tencent and Ping An posts first-ever profit for its underwriting business in first half of 2021 Key takeaways: •   Online-only insurer ZhongAn made a profit from underwriting insurance for the first time in the first half of 2021, helping its net profit jump 54% •   Company’s shares still trade far below their IPO price, underscoring soured investor sentiment after years of losses By Warren Yang It’s been a long time coming for ZhongAn Online P&C Insurance Co. Ltd. (6060.HK), the online insurer that made a splash in…

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Employment Specialist Kanzhun Shows It’s Down, But Not Out, With First-Ever Profit

Company posts 174% revenue jump in second quarter, but warns an ongoing cybersecurity review is likely to continue through at least the end of September Key takeaways: Kanzhun has posted its first-ever quarterly profit, fueled by a 174% jump in revenue Company warns that a cybersecurity review and concurrent freeze on new user signups is affecting its business, and could last through at least the end of September By Doug Young The maiden quarterly earnings report from leading online jobs specialist Kanzhun Ltd. (BZ.US), best known in China for its…

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