Travel Restrictions Trip Up Tongcheng-Elong

Covid-19 flare-ups dampened tourism in the third quarter, leading to a 9.3% drop in the online travel agent’s latest quarterly revenue Key Takeaways: Following a weak third quarter, similar travel declines during China’s Oct. 1 ‘Golden Week’ make it difficult to be optimistic about Tongcheng-Elong’s fourth quarter Despite suffering from travel restrictions, Tongcheng-Elong’s position standing on shoulders of giants Tencent and Trip.com should help it over the longer term By Jony Ho Online travel agent Tongcheng-Elong Holdings Ltd.’s (0780.HK) third-quarter results announced this week were bumpy at best, hobbled by slumping tourism as…

Read More

360 DigiTech Earns ‘Survivor’ Title After Latest Regulatory Wave

After transforming from direct lender to loan facilitator, the fintech led by ‘internet bad boy’ Zhou Hongyi has found a way forward in the face of regulatory headwinds Key Takeaways: 360 DigiTech has reported strong third-quarter results, with both turnover and net income posting solid gains Investment banks are optimistic on the company, with Morgan Stanley raising its target price to $54 – nearly double the current share price By Fai Pui Following Beijing’s determination to clean up China’s fintech sector, “survival” has become the mantra for all companies in…

Read More

Battered Autohome Sees Light at End of Tunnel

One of China’s oldest online car specialists posts 24% revenue decline in third quarter on reduced industry spending, but sees relief next year Key Takeaways: Leading Chinese online auto company Autohome says its revenue fell 24% in the third quarter, dragged down by a 50% decline in spending by car manufacturers Company sees global auto sector returning to more normal conditions in second half of next year as chip shortages ease By Doug Young The darkest hour is upon us, but light at the end of the tunnel is also…

Read More

Dingdong Pulls Further Away From Old Opponent, But Profits Remain Far Off

Online grocery giant left its top rival Missfresh in the dust in terms of third-quarter revenue, but its losses keep growing as it pursues more customers Key points: Dingdong’s revenue doubled in the third quarter, but its loss grew even faster by 1.4 times as it become trapped in a cycle of ‘greater losses with more income’ The company’s management admitted returns on investment are still a long way off By Jony Ho Multiple Covid-19 outbreaks have made Chinese consumers increasingly accustomed to buying groceries online. The race for supremacy…

Read More

Hello Bike Back in Fundraising Fast Lane After Failed IPO Attempt

Shared bike operator raises $280 million from Alibaba and CATL, as it moves focus to becoming electric vehicle specialist Key points: Hello Inc. has raised a fresh $280 million from Alibaba and CATL, bringing its total fundraising this year to $500 million Fundraising follows failed U.S. IPO attempt earlier this year, and comes as company adds electric vehicle manufacturing and batter swapping services to its portfolio  By Doug Young Shared bike operator Hello Inc. may have said “goodbye” to Wall Street earlier this year, when it abruptly pulled its planned…

Read More

Yeahka in Acquisition to Boost In-Store E-commerce Business

Grappling with intense competition in the payment industry, company bets on technology-enabled services with potential to jumpstart growth Key Takeaways: Yeahka is paying 100 million yuan for 60% of consumer e-services provider Qianqianhui, aiming to boost its in-store e-commerce business Company’s in-store e-commerce business earned 45 million yuan in the first half of 2021, following launch last December By Fai Pui Chinese mobile payment services provider Yeahka Limited (9923.HK) said this week it has agreed to inject 100 million yuan ($15.6 million) into Qianqianhui, a provider of in-store e-commerce services.…

Read More

Nissin Outperforms in China’s Shrinking Instant Noodle Market

Company’s parent says it will use steady promotion to seize the huge business opportunities in China Key Takeaways: Nissin Foods’ revenue in China grows 10.3% in third quarter, as it outperforms market’s two leading instant noodle companies Company continues to strengthen its flagship products and expand its sales area in drive to boost market share By Jony Ho Mainland China- and Hong Kong-focused instant noodle maker Nissin Foods (1475.HK) announced last Friday that revenue for the first three quarters of this year reached HK$2.86 billion ($367 million), up 6.4% year-on-year.…

Read More

Nayuki Goes Upmarket in Search of Better Margins, Cooler Competition

Premium tea specialist says it will record an adjusted net loss for 2021, blaming Covid-related disruptions Key Takeaways: Nayuki said it expects to post an adjusted net loss for 2021 due to Covid-19 disruptions, reversing a profitable first half of the year Company is focusing on higher-end stores in bid to improve margins and lower dependence on highly competitive lower end of the market By James Dyson Bubble tea or tea bubble? The answer for Nayuki Holdings Ltd. (2150.HK), the Shenzhen-based new style tea retailer, is both. But it’s not…

Read More

Missfresh Boosts Direct Buying in Drive to Cut More Fat From Supply Chain

Online grocer’s shares rally after it announces signing up hundreds of new direct suppliers, even as its margins remain far below those of larger rival Dingdong Key takeaways: •      Online grocer Missfresh said it expanded its network of direct suppliers, aiming to improve margins that lag far below larger rival Dingdong •      Direct sourcing could help company lower procurement costs as it struggles to turn a profit By Warren Yang In its short life as a public company, Missfresh Ltd. (MF.US) has learned the hard way that it’s not easy…

Read More

Scandal-Ridden Luckin in Nascent Coffee Comeback. But Will Investors Take a Sip?

With strong first-half revenues and shares within striking distance of its $17 IPO price, Starbucks challenger could be positioning itself for a big-board relisting Key takeaways: Luckin Coffee’s latest post-scandal financial report shows revenue more than doubled in the first half of the year, as losses narrowed Reformed company’s shares have rebounded to just below their IPO price, as it moves to business model with new focus on franchising By Mia Shanley For better or worse, investors tend to have short memories. That’s especially the case with Luckin Coffee Inc.…

Read More