Lanvin Nears Completion of U.S. SPAC Listing. Now the Work Begins

The luxury arm of debt-challenged financial conglomerate Fosun looks set to complete its New York listing by year-end, with an aim of breaking even by 2024 Key Takeaways: Lanvin Group’s plan for a SPAC listing has moved a step closer to completion with the setting of a Dec. 9 vote on the deal by the SPAC’s shareholders The company recorded impressive overall revenue growth in the first half of this year, but results were less stellar for the important Greater China market By Trevor Mo As the debt-strapped Fosun International…

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Margins, Anyone? Yum China Wows Investors With Improved Efficiency

Operator of KFC and Pizza Hut chains in China reported its best restaurant margins in four years, lifted by a ‘perfect storm’ of factors, some temporary and others long-term Key Takeaways: Yum China reported its restaurant margin rose to 18.8% in the third quarter from 12.2% a year earlier, marking its best performance of that metric since 2018 The KFC and Pizza Hut operator for China reported a return to revenue growth in the third quarter, but cautioned the country’s Covid-controls intensified in October By Doug Young It may not…

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Lockdown Food Supplier Pang Pang Xiang puts IPO Back on the Menu

The food processing company that helped to feed Shanghai residents during the city’s two-month lockdown has refiled to list on the Hong Kong Stock Exchange Key Takeaways: Bucking the Covid downturn, Pang Pang Xiang’s profits jumped in the first five months of the year after it provided Shanghai with lockdown food supplies The IPO-bound company is a family business, wholly owned by Chairman Huang Jianyi and his relatives By Stone Shek One man’s meat is another man’s poison, so an old saying goes. And even the Covid pandemic has brought…

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Lots of Room at the Inn: Hotelier H World Bunkers Down for Another Loss

The company’s key performance indicators are approaching pre-pandemic levels, but Covid-related restrictions in China continue to hamper its return to profitability Key Takeaways •      H World said its revpar is at 90% of 2019 levels, and occupancy rates are rising across its 8,402 hotels •      The company remains bearish for the near-term due to the threat of further Covid restrictions that are discouraging travel in China By Andrew Curran Did rising room rates propel hotelier H World Group Ltd. (HTHT.US; 1179.HK) back into the black in this year’s third quarter?…

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Topsports Hamstrung by Foreign Brand Ties, Pandemic Controls

The major distributor for Nike and Adidas in China is struggling with lingering consumer boycotts for some of its goods and Covid-related store closures Key Takeaways: Topsports’ revenue and net profit fell in the first half of its fiscal year on tight pandemic controls in China and ripple effects from a cotton sourcing controversy Some analysts believe that the company will continue to clear its inventory in the latter half of its fiscal year, though such efforts would pressure its gross margin By Fai Pui Anyone notice that some international…

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Collectible Toy Maker Pop Mart Falls Out of Favor

The company that shot to success selling trendy toys from ‘blind boxes’ said its revenue fell 5% to 10% in the third quarter, reversing several years of explosive growth Key Takeaways: Pop Mart said its third-quarter revenue fell between 5% and 10% year-over-year, deteriorating from an already-weak first half of 2022 The company has launched a series of initiatives to jumpstart its growth, including a ramp-up in overseas development, though none have reaped significant success yet By Trevor Mo When you’re hot, you’re hot. And when you’re not, you’re not.…

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Li Ning Tripped Up by Chinese Nationalists

The sportswear brand apologized after one of its new designs was accused of recalling a humiliating period for China, but its stock still suffered Key Takeaways: Sportswear maker Li Ning’s shares took a beating after the company came under fire for new designs that resembled hats worn by Japanese soldiers during World War 2 Although such scandals are typically short-lived, they can have a big impact if handled improperly, experts say By Jose Qian When Li Ning Co. Ltd. (2331.HK) held a fashion show in September, the leading sportswear brand…

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Former Retail Star Gome Hobbled by Declining Revenue, Heavy Debt

The household appliance seller warned its revenue fell as much as 60% year-on-year in the first three quarters, and added some of its loans are overdue Key Takeaways: Gome’s revenues are falling sharply despite gains for its online business, as tumbling sales at its brick-and-mortar stores lead to layoffs and closures The company is staring at a potential debt crisis as it owes 22.9 billion yuan in bank loans despite having only 2.41 billion yuan in its coffers By Ken Lo Chinese poems like to lament how fleeting beauty is.…

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Milk Producer AustAsia Makes Fresh IPO Pitch, with Client Backing

The dairy and cattle farm operator has applied to list on the Hong Kong Stock Exchange for a second time with key clients on board as stakeholders Key Takeaways: AustAsia has tweaked the wording of its profile in the new IPO prospectus, dropping the phrase “largest independent” dairy producer from its description With milk production costs rising and prices falling, the company is projecting a drop in annual profit By Emily Chan In a lengthy IPO prospectus, just a few words can say a lot about a business. Such is…

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So-Young’s CEO-led Buyout Dissolves After Stock Plunge

The popular cosmetic surgery app operator’s shares have dived amid a crackdown on China’s medical aesthetics industry, an economic slowdown and strict Covid-control policies Key Takeaways: So-Young said a group led by its co-founder and CEO has withdrawn its earlier buyout offer made nearly a year ago The withdrawal came as the company faces challenges from a regulatory crackdown on the medical aesthetics industry and a slowing Chinese economy By Warren Yang For So-Young International Inc. (SY.US) investors, a management-led buyout offer floated nearly a year ago must feel like…

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