Luckin 2.0? Freefalling Cloopen Flags Potential Irregularities, Spooking Investors

The provider of cloud-based services said it will start an internal probe into employee misconduct and transaction irregularities, following the recent resignation of its auditor Key takeaways: •      Cloopen said it formed an independent special committee to look into employee misconduct and transaction irregularities discovered by auditor KPMG •      Even before the disclosure, the company’s stock was freefalling amid U.S. law firm allegations that the company made false or misleading statements By Warren Yang An association with anything fraudulent can send a stock into freefall – a lesson that cloud-based…

Read More »

Oriental Culture Builds Up Lively Business on Art, Wine and Tea Traders

Young company has carved out a comfortable niche in C2C e-commerce, fueling triple-digit growth in both revenue and profits last year Key Takeaways: Oriental Culture’s revenue doubled last year to $37.6 million, while its profit soared more fivefold to $11.4 million on a post-Covid rebound Company is trying to create more digital products and services with recent initiatives in blockchain, the metaverse and non-fungible tokens By Doug Young When it comes to the latest high-tech buzzwords, it seems investors like blockchain and the metaverse, but are less excited about non-fungible…

Read More »

China’s Self-Dubbed ‘Fruit McDonalds’ Seeks Juice from Hong Kong IPO

Shenzhen Pagoda reportedly hopes to raise $500 million, aiming to attract investors with its booming online business Key takeaways: China’s biggest fruit retailer Shenzhen Pagoda has filed for a Hong Kong IPO, following two previous failed attempts to list in Hong Kong and on the mainland’s A-share market Company’s online retail sales have helped keep revenue growing despite pandemic store closures, but are also dragging on profits By Li Yaoyao and Jony Ho Online distribution channels can help traditional retailers boost their revenues. But getting a similar boost for their…

Read More »

De Well Files for Hong Kong IPO, Flush With New Ties to Cainiao

International logistics firm could be valued at around $300 million, following $67 million investment from Alibaba’s logistics arm last September Key Takeaways: •      Global logistics services provider De Well has filed for a Hong Kong IPO, aiming to boost its footprint on booming demand for cross-border e-commerce •      Filing comes eight months after company sold 29.5% of its shares to Alibaba’s Cainiao logistics arm for $67 million By Carol Yang When it comes to logistics, China-focused investors already have plenty to choose from in a crowded field filled with names…

Read More »

Full Truck Alliance Shifts Up a Gear on Regulatory Easing Reports

Trucking app operator’s shares have surged 32% over the last two trading days, even as it forecast Omicron disruptions could cause its business to contract in the second quarter Key Takeways: Full Truck Alliance shares are up 60% from a mid-March low, including a 32% gain since Friday, on reports that Beijing may ease its regulatory oversight of big tech companies Company is currently undergoing a data security review and said its business could contract in the second quarter due to Omicron-related disruptions By Doug Young When are mass disruptions…

Read More »

E-House Comes Unhinged in China’s Real Estate Crash, Joining List of Victims

Property services provider’s shares are nearly worthless after it became the latest from its sector to default on debt Key takeaways: •      E-House defaulted on $298 million worth of bonds that matured April 18, though it said this week that bondholders had agreed on a restructuring plan •      The company’s default adds to a string of similar missed payments by Chinese developers amid a deepening slump in the nation’s property market By Warren Yang China’s deepening real estate crash is generating a fast-growing cluster of fallen stars. The latest casualty…

Read More »

DiDi’s Delisting Plan Just the Start of a Tough Road Ahead

The company often called China’s Uber will convene a shareholder meeting on May 23 to vote on a plan to delist from New York less than a year after its IPO Key Takeaways: DiDi shareholders are likely to approve a plan to delist the company from New York since major investors who hold more than 45% of its shares are likely to vote in favor After an exit, the company must still find ways to comply with China’s Cybersecurity Law and find a way to become profitable to survive over…

Read More »

Qudian Sees Food for Growth in Prepared Meals, Weighs Exit of Core Lending Business

The former fintech pioneer’s stock fell more than 10% after it announced a potential wind down of its original credit business as well as a new foray into ready-made meal kits Key Takeaways •      Qudian said it has started trial operations for QD Food, which sells ready-to-cook meal kits through a WeChat mini app •      The move comes as company says it may wind down its original credit business due to challenging regulatory environment By Warren Yang Some China fintech companies seem to know no bounds when it comes to…

Read More »

Me-ow! Pet Community Operator Boqii Faces Delisting Due to Shriveling Valuation

Company says it could be forced off the New York Stock Exchange after its market cap fell below $50 million for 30 days Key Takeaways: Boqii could face delisting from the NYSE after its market valuation fell out of compliance with NYSE rules Company could delist through a management-led buyout and is likely to disappear from the NYSE main board within the next year  By Doug Young Call it the incredible shrinking pet. Online pet community operator Boqii Holding Ltd. (BQ.US) is facing an existential crisis, at least in terms…

Read More »

With Founder Fading Out, JD.com Moves to Collective Leadership

E-commerce giant’s founder Richard Liu is stepping-down as CEO, joining the ranks of Internet entrepreneurs stepping back from their companies Key takeaways: JD.com’s founder Richard Liu is stepping down from his CEO role but will remain as the company’s chairman focused on long-term strategy Some analysts believe China internet companies face greater risk from regulation at home and abroad than from changes in their top ranks By Ken Lo Another strongman from the China internet realm has turned in his high-tech keys. But does it really matter? JD.com Inc. (JD.US;…

Read More »