Transitioning Auto Specialist Cango Can’t Outrace Macro Challenges

Company blames regulation, auto chip shortage for its stalling revenues, as it continues to ramp up car-trading services   Key Points: Cango has improved its overall performance with a timely shift toward auto trading to complement its struggling auto financing business Company blames regulatory challenges at home and global chip shortage for stalling revenue growth By Eric Auchard China’s race to create a successful car trading and financing platform blending online and offline services has become a game of business-model bumper cars, and an auto graveyard for some. The result…

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Shared Powerbank Specialist Energy Monster De-Fanged by Competition

Company’s operating profit tumbles by half in latest quarterly results on heavy promotional spending as shares trade near post-IPO lows Key points: Smart Share Global, better known as Energy Monster, is suffering sharply eroding margins due to stiff competition in China’s powerbank rental market Company’s shares now trade near post-IPO lows, and look undervalued compared to similar shared economy companies By Doug Young Investors may be bullish on the sharing economy in the West, but they’re far less certain about the situation in China. That’s one of the key messages…

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AiHuiShou’s Q2 Revenue Rises 56%, Fueled by Growing Electronics Recycling Network

Company releases first ESG report alongside its maiden earnings, aiming to spotlight its role in achieving China’s carbon-reduction goals Key points: AiHuiShou posts 56% revenue growth in its latest reporting quarter while continuing to operate in the red Company simultaneously released first ESG report highlighting its role in helping China to achieve its carbon-reduction goals By Doug Young Sometimes your best asset isn’t in your financial statements. That seems to be the message coming from electronics recycling specialist AiHuiShou International Co. Ltd. (RERE.US), which has just conveniently released its first…

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360 DigiTech’s Lending App Returns to China Stores, But Investors Unimpressed

Fintech company’s shares jump after announcement of return of its Jietiao app to Chinese app stores, but later give back all those gains and more Key Takeaways: Fintech loan facilitator 360 DigiTech says its main app was restored to Chinese app stores after its earlier removal for data collection violations Company’s stock initially rallied after news, but failed to recover to pre-crisis levels and later gave back all the gains amid a flood of shareholder lawsuits By Thomas Zhang Investors in Chinese fintech companies have had a few rollercoaster months…

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FAST NEWS: Niu Technologies Q2 Profit Rises 62%

The latest: Electric scooter maker Niu Technologies reported its second-quarter revenue rose 46.5% to 944.7 million yuan ($146 million) year-on-year, while its profit rose 61.6% to 91.8 million yuan, according to its latest quarterly report. Upside: The company expects to post similarly strong revenue growth of 40% to 62% in the third quarter. Downside: Niu Technologies’ revenue per scooter fell 7.3% year-on-year, with the company blaming a “change in product mix.” Digging Deeper: Like many other companies, Niu is bouncing back from a sharp downturn a year earlier during the…

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Clubhouse Tech Partner Agora Gets Wings Clipped in China Crossfire

Company’s shares have tumbled more than two-thirds from a February high on concerns related to its China roots Key Takeaways: Agora’s latest quarterly results show shortfalls in its earnings and margins due to rising expenses A year after a sparkling IPO, company’s stock has been hobbled by high-profile setbacks related to audio chat app Clubhouse and education giant New Oriental By Eric Auchard Agora Inc. (API.US), the Silicon Valley-based interactive video toolmaker with Chinese roots, was riding high, growing in myriad markets that powered a quadrupling of its stock between…

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Pop Retailer Miniso Sees Riches in Vending Machines, ‘Blind Boxes’

Company rolls out its first vending machines in Singapore, following rival Pop Mart into lucrative niche for trendy collectible toys Key points: Miniso is moving into sales using vending machines and product lines based on third party-licensed IP Company’s stock is highly valued compared with traditional retailers, but its PE is just half that of domestic collectible toy rival Pop Mart By Doug Young It started out as a miniature, low-cost knockoff of trendy Japanese retailer Muji, known for its brightly lit stores featuring a wide array of daily household…

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Trucking Specialist TuSimple’s Latest Report Is Hardly Simple

Second-quarter results show company in rapid expansion mode, and increasingly placing its bets on U.S. market for self-driving trucks Key points: TuSimple’s recent hiring spree and growing stable of major trucking partners show its autonomous driving technology is moving closer to commercialization Company’s highlighting of U.S. developments and muted discussion on China show it is rapidly moving its focus to the U.S. By Doug Young On the surface at least, autonomous truck driving specialist TuSimple Holdings Inc’.s (TSP.US) latest earnings report looks a lot like its name: quite simple. That…

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Teahouse Operator Nayuki Gets Scalded in Food Safety Scandal

Premium tea seller’s shares sink 10% after report finds cockroaches at two shops, but then bounce back in following session Key points: Shares of premium tea seller Nayuki plunged after state media report found cockroaches, other violations at two Beijing shops Rebound in shares a day later shows how such investigative scandals, while often exposing real problems, are relatively common and reflect latest government priorities By Doug Young Move over, Boston Tea Party. The historic event at Boston Harbor is getting some 21st century competition from China, where the recently…

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Despite Good News, ‘Sauerkraut Fish’ Specialist Jiumaojiu Leaves Investors Hungry

Restaurant operator says it returned to profitability in the first half of 2021 as it resumed an aggressive expansion for its popular Tai Er chain Key Takeaways: Jiumaojiu has resumed an aggressive expansion of its popular Tai Er restaurant chain as it returned to profitability in the first half of the year from a year-ago loss. While the entire sector suffered during the pandemic, Jiumaojiu appears to be more favored by investors due to its big post-pandemic growth. By Thomas Zhang “Sauerkraut fish” may be pleasing Chinese pallets these days…

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