Zhihu Reaps Rewards from Commercializing Its Services

Commercial content solutions revenue for the company sometimes called the ‘Quora of China’ rose fivefold in the third quarter, becoming its strongest growth engine Key Takeaways: Zhihu’s revenue doubled in the third quarter on strong performance of its ‘three revenue engines’ Management is targeting fourth-quarter revenue of a record 1.03 billion yuan, up more than 20% from previous quarter By Wut Yee Zhihu Inc. (ZH.US), an information platform sometimes called the “Quora of China,” is challenging market doubters about its ability to commercialize its business, with its latest quarterly results.…

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Dada’s Record ‘Single’s Day’ Performance Fails to Hide Yawning Losses

Company reported its loss widened to 543 million yuan in the third quarter, following record sales and deliveries on China’s top shopping festival earlier in November Key Takeaways: Dada’s net loss widened to 543 million yuan in the third quarter from 434 million yuan a year earlier The company’s autonomous delivery operation system participated in China’s ‘Double Eleven’ shopping fest for first time on Nov. 11   By James Dyson As the U.S. heads into the original “Black Friday” on the day after Thanksgiving, short-distance delivery specialist Dada Nexus Ltd.…

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Tuya Focuses on Staying the Course in the Face of Global Turbulence

IoT platform as a service (PaaS) company blames inflation, chip shortage on bumpy demand from its core IoT device customers Key Takeaways: Tuya reports its revenue grew 44.9% in the third quarter, as factors like high shipping prices and global inflation affected demand for smart internet-connected products Company’s shares look undervalued compared to peers, possibly due to political factors that look overblown By Doug Young We can’t control the global situation, but we’re working to improve our own shop. That’s the key takeaway coming from IoT platform as a service…

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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…

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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…

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Xiaohongshu’s Soaring Valuation: a Final Tango Before Listing?

A new funding for the company sometimes called ‘China’s Instagram’ has valued it at $20 billion Key takeaways: Xiaohongshu has completed a new funding round that has doubled its value from just 3 months earlier Some analysts believe such aggressive valuation increases often come ahead of IPOs, though the company has yet to announce any such plans By Jony Ho Chinese online social and shopping platform Xiaohongshu has completed a new financing round, providing a major boost to its valuation. The funding announced last week has lifted the company’s market…

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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.…

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TuSimple Stuck in Low Revenue, Loss-Making Zone as It Eyes First Driverless Truck Trips

Company aims for first fully autonomous journeys before the end of the year but faces stiff competition and an uphill battle to commercialize Key takeaways: TuSimple’s third-quarter loss widened as it forecast its expenses for 2021 will come in at upper end of previous guidance Severe driver shortage and high fuel costs play in company’s favor, but regulatory risk amid U.S.-China tensions remains a concern By Mia Shanley At first glance, self-driving trucking firm TuSimple Holdings Inc. (TSP.US) appears to be sitting pretty. A global supply chain breakdown, a driver…

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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…

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Xiaobai Maimai Eyes Cancer Treatment as E-Commerce Pivot Sputters

Former P2P lender’s stock soared up to tenfold after announcement of latest shift, but later gave up much of the gains Key Takeaways: Xiaobai Maimai, the former P2P lender known as Hexindai, is making a radical move into cancer treatment in the U.S. The shift comes after the company struggled to generate revenue from social e-commerce By Warren Yang What do you do when your original peer-to-peer (P2P) lending business becomes the subject of an intense government clampdown? Turn to the less controversial e-commerce sector. And when you discover that’s…

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