Rising Losses, Intensifying Regulations Hobble ‘Fast Dog’ Gogox

The intra-city logistics provider warns of ballooning losses less than two months after its Hong Kong IPO Key Takeaways: Gogox warned that its loss grew sharply in the first half of the year, as its shares have lost more than two-thirds of their value since their June IPO China’s Transport Ministry’s clampdown on fierce competition among freight transport platforms could hinder Gogox’s business expansion that relies on user subsidies By Lau Ming Gogox Holdings Ltd. (2246.HK)sprinted out of the gate when the company, whose name means “quick dog,” became Hong…

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Secoo’s Online Luxury Dream Ends in Bankruptcy, Sea of Discontent

The former highflyer hoped to get rich on China’s booming appetite for luxury goods, but ended up sputtering due to a range of macro and company-specific issues Key Takeaways: Online luxury goods reseller Secoo has filed for bankruptcy after its business stumbled under Covid-related disruptions and internal missteps Company’s Nasdaq-listed shares now trade at around $0.24, a fraction of the $13 they sold for in better times at its 2017 IPO By Shirley Lau Talking big is second nature to many an ambitious Chinese company. But luxury e-commerce platform Secoo…

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Dingdong Rings Up First-Ever Profit. But Investors Don’t Buy It

Online grocer reports a 20.6 million yuan second-quarter non-GAAP profit, fueled by buying surge from Shanghai customers during city’s two-month lockdown Key Takeaways: Dingdong reported its first-ever non-GAAP profit in the second quarter, buoyed by strong demand during Shanghai’s two-month lockdown in April and May Company promises to achieve sustained profitability and stick to its super-fast delivery model despite recent woes of major rival By Trevor Mo The recent woes of Missfresh Ltd. (Nasdaq: MF) have cast an uneasy spotlight on the capital-intensive business model used by some of China’s…

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Autohome Weathers Covid Storm, Revs Up for Speedier Second Half

The Internet auto-sales platform’s revenue grew 17.7% sequentially in the second quarter, showing resilience in the face of China’s pandemic disruptions Key Takeaways: Autohome’s revenue rose strongly on a sequential basis in the second quarter despite a year-on-year decline, sparking a rally for its stock Company should benefit in the second half from new vehicle launches and government measures to stimulate vehicle consumption By Lau Ming What is it about an internet auto platform whose profits declined in the second quarter that has still managed to win over investors? For…

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Tim Hortons China Brews Up Explosive Growth Plan Using Tech and Localization

The soon-to-be U.S.-listed coffee chain is aiming for 2,750 Chinese stores by 2026, equal to nearly half of Starbuck’s current count Key Takeaways: Tim Hortons China is aiming to open nearly 3,000 stores in China over five years, banking on technology and localization to fuel its rapid expansion Company needs to be careful to avoid mistakes of chains like Costa and Krispy Kreme, which closed or sputtered after initially announcing similar major expansion plans By Doug Young Fasten your seat belts! Tim Hortons China, known locally as Tims China, is…

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No Good Times Here, as Gome Slashes ‘FUN’ E-Commerce Unit

Former retailing giant makes massive cuts at its recently launched service combining online shopping with social networking and entertainment Key Takeaways: Gome is scaling back its e-commerce push that was part of a drive to regain its former glory, making massive layoffs at its FUN online unit.  Company’s revenues stagnated last year as its transition to e-commerce stalled, similar to the fate of other older brick-and-mortar retailers like its former rival Suning By Trevor Mo In early 2021, former retailing magnate Huang Guangyu was unequivocal when asked about his next…

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Kingsoft Cloud Joins Chinese Companies Pivoting To Hong Kong as Delisting Risk Grows

Kingsoft Cloud seeks to list in Hong Kong after being placed on a long list of Chinese companies that can be delisted in the U.S. under a law that requires the sharing of audit data Key Takeaway: Kingsoft Cloud has joined more than 100 companies that can be delisted in the U.S. amid an impasse between Washington and Beijing over a U.S. law that requires Chinese companies listed in the country to share audit records The company’s stock has lost more than 95% of its value from its peak, hit…

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Nebula Brands Emerges as Star to Watch in Global Constellation of Amazon Aggregators

China-based buyer of Amazon brands on Amazon marketplaces announces major new funding, with more expected in the next three months Key Takeaways: Nebula Brands has announced a major new fundraising, bolstering its place as China’s top player in an emerging global group of Amazon aggregators Company has purchased a number of Chinese brands in Amazon marketplaces since last year, but is likely to sharply accelerate the pace in the run-up to a potential IPO as early as 2025 By Doug Young China may be the “workshop to the world,” but…

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Alibaba Eyes Hong Kong Primary Listing as Hedge to U.S. Delisting Threat

Primary listing in Hong Kong in addition to its New York listing could also make the e-commerce giant’s shares accessible to mainland China investors Key Takeaways: Alibaba said it expects the upgrade of its secondary Hong Kong listing to primary listing status to be complete by the end of 2022 The SEC has placed Alibaba on a list of Chinese firms facing potential delisting as the deadline nears for U.S.-listed Chinese firms to comply with American audit rules By Ken Lo Alibaba Group Holding Ltd. (BABA.US; 9988.HK) applied for a…

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Plus Digital Seeks to Ride a Boom on Software Services for Retailers

The provider of digital sales and marketing tools for fast-moving consumer goods brands is seeking to go public in Hong Kong as sales of its subscription-based services boom Key Takeaways: Plus Digital has filed for a Hong Kong IPO, reportedly seeking to raise about $150 million Subscription-based software services have emerged as the new growth driver for the company in the past few years By Tina Yip As the Hong Kong IPO market shows signs of revival, Plus Digital Technologies Inc. is wasting no time trying to capitalize on booming…

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