Meituan Delivers Tasty Profit but Predicts Tougher Times Ahead

Thanks to cost controls, online food delivery giant Meituan turned a profit in the third quarter after languishing in the red for nearly two years. But it warned that the pandemic would take a heavier toll on its results in the last three months of the year Key Takeaways: Meituan beat market expectations for third-quarter earnings, posting 1.22 billion yuan in net profit and 3.53 billion yuan in adjusted net profit, helped by a stronger performance in its core local commerce business and narrower losses on new ventures Tencent’s biggest…

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Full Speed Ahead? Xiaomi’s Soaring EV Costs Raise Red Flag

The smartphone maker has posted lower revenue and adjusted profit in the third quarter, hit by falling product sales and prices. But its spending on a move into EV production keeps rising Key Takeaways: Xiaomi’s revenue fell nearly 10% in the third quarter and its adjusted net profit tumbled 59% to 2.1 billion yuan Market analysts think profits from the smartphone business could have peaked and may not be enough to sustain a concerted push into electric vehicles  By Ken Lo China’s Xiaomi Corporation (1810.HK) is branching out from handsets…

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ATRenew Grows Outside the Smartphone Box with Luxury Bags, Watches and Liquor

The recycler that spent its first decade in electronics is finding early strong results with its recent expansion into new consumer categories Key Takeaways: ATRenew’s sales from non-smartphone categories are showing initial success, accounting for an extra 300,000 yuan in monthly sales per store and 0.5% of transaction volume The smartphone recycler reported its first non-GAAP net profit in the third quarter as its margins improved on cost controls and growing focus on direct sales to consumers By Doug Young In these increasingly difficult times, who needs an overpriced new…

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Sagging Profits Take the Shine off Beauty Farm’s IPO

Earnings at the beauty and health company were badly hit by Covid disruption in the first half of the year Key Takeaways: Beauty Farm Medical and Health had to shut many of its salons in Chinese cities when Covid struck in the first half of the year, sending its net profit plunging nearly 80% With its valuation squeezed, the company might struggle to hit a $300 million fundraising target By Emily Chan Beauty may be big business in China, as incomes rise and social media puts an added premium on…

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Baozun Emerges from E-Commerce Shadows with Gap China Purchase

The provider of e-commerce tools with close ties to Alibaba hopes its acquisition of the U.S. retailing giant’s China operations can revive its stalling growth Key Takeaways: Baozun’s newly purchased Gap Greater China operation will become the cornerstone for its new brand management unit The Alibaba-backed company is looking for new growth venues as its core business as an e-commerce tools provider stalls By Shirley Lau Baozun Inc. (BZUN.US; 9991.HK), a sort of “Shopify of China,” raised eyebrows earlier this month when it announced it would acquire U.S. clothing retailer…

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Dingdong Sticks to Profit Delivery Promise by Year End

The online grocer trimmed its non-GAAP net loss by 86% in the third quarter, but also reported its first-ever revenue decline as it focused on cost controls and higher-margin products Key Takeaways: Dingdong’s non-GAAP net loss narrowed by 86% in the third quarter, as it reiterated its goal of achieving breakeven on that basis by year-end The company’s gross margin improved markedly on strong cost controls and a focus on higher-margin products By Trevor Mo Ever since leading online grocer Dingdong Cayman Ltd. (DDL.US) reported its first ever non-GAAP profit…

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Nissin Foods Serves Up Investor Comfort Food in Cups of Noodles

The premium noodle maker returned to profit growth in the third quarter, following a decline in the first half of the year, as it raised prices and brought rising ingredient costs under control Key Takeaways: Nissin Foods’ profit grew 20% in the third quarter, returning to a growth track after the figure fell 3.5% in the first half of the year The company’s stock has become a safe haven for investors during current market turbulence, with its shares up 30% since May By Doug Young In noodles we trust. Or…

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Auto Financer XXF Group Revs Up IPO Engine but Hits Another Speed Bump

The auto finance and leasing company has made another run at an IPO on the Hong Stock Exchange after three earlier bids stalled. But its latest effort has already hit an obstacle Key Takeaways: After filing its fourth IPO application, XXF Group pulled its preliminary prospectus from the exchange’s website just a few days later The company will have to repay more than 50 million yuan on a loan from a Didi subsidiary by next June. The need for a cash injection may help explain its eagerness to pursue a…

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No Happiness in ‘Double 11’ Shopping Fest for Depressed Alibaba

The e-commerce giant may record its first-ever sales decline in this year’s ‘Double 11’ online shopping extravaganza as its shares sink to their 2014 IPO level Key Takeaways: Alibaba’s merchandise sales for this year’s ‘Double 11’ festival, also known as ‘Singles’ Day,’ could drop 1.5% year-on-year, according to a Bloomberg forecast The company’s depressed stock has recently traded as low as $58.01, below the $68 price from its blockbuster New York IPO in 2014 By Fai Pui The shopping fest known as “Singles’ Day” in China has been a goldmine…

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Autohome Rides Government-Fueled Boom in Car Sales That May Prove Temporary

The internet auto trader benefitted nicely from a recovery in car sales in the third quarter, powered by various government incentives Key Takeaways: Autohome’s revenue increased 4.5% year-on-year in the third quarter, representing the first growth since the start of 2021 China’s car sales recovered strongly in the third quarter, but the momentum may not last as the effect of government sweeteners that helped to fuel the rebound start to fade By Warren Yang Online car trader Autohome Inc. (ATHM.US; 2518.HK) is riding a recovery in China’s car market, fueled…

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