Embattled U.S.-listed Chinese Firms Find Safer Harbor in Hong Kong

Second listings in Hong Kong help U.S.-listed Chinese companies diversify political risk as rivalry between Beijing and Washington grows Key takeaways: A second listing in Hong Kong can help U.S.-listed Chinese companies increase trading volumes and stabilize prices A more diverse investor pool can help companies recoup lost value from recent U.S. selloffs By Fai Pui Nov. 26, 2019 will go down as a landmark day for the Hong Kong Stock Exchange, drawing droves of reporters from the world’s leading financial news outlets to watch history unfold. A who’s-who of…

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Chindata Learns Investor Relations Lesson After Keeping CEO Departure a Mystery

Shares in the datacenter operator plunged by a third after it announced the sudden departure of its top executive without explanation Key takeaways: •      Last Friday, Chindata abruptly announced founder Jing Ju had resigned as CEO without saying why, sparking a massive selloff in its stock •      The data center operator hosted a conference call several days later to explain Ju’s departure was because of disagreement on strategy By Warren Yang Bad communication with investors can cost a company hundreds of millions of dollars in market value. Data center operator…

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After Roller Coaster Year, Yidu Stock Settles Down Post-IPO

Big-data healthcare services provider’s operating loss widened in its latest reporting period as revenue grew 62% Key Takeaways: Yidu’s revenue rose 62% in the six months through September Company’s health management platform and solutions business grew 6.4 times in the period, becoming its biggest breadwinner By Liu Ming A “fall to earth” may best describe the ride that healthcare big data specialist Yidu Tech Inc. (2158.HK) has taken since its IPO at the start of this year. The company started the year on a turbocharged note with a 165% stock…

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Waterdrop Goes Back to the Well, Cutting Losses by Lowering Costs

The online insurer slashed spending by 26.4% in the third quarter and will keep up its cost-trimming exercise Key takeaways: Waterdrop Inc. reported a net loss of 477 million yuan in the third quarter, narrowing 27.3% quarter-on-quarter Company’s stock has fallen around 90% since its IPO, but its valuation still isn’t low By Fai Pui Cherish “water resources” for a sustainable future. That maxim applies not only to ordinary folks in their everyday lives, but also to online insurer Waterdrop Inc. (WDH.US) in its daily operations, since, “water” is also…

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Recovery Signals Surface, But in Short Supply, for Cango Stuck in Global Auto Storm

Auto finance and trading specialist expects its revenue to return to growth track in fourth quarter, but remains hobbled by global sector slowdown Key takeaways: Cango reported its revenue fell in the third quarter from the second, but forecast the figure would return to sequential growth in the fourth quarter Company looks undervalued compared with domestic peers as it diversifies beyond its older car finance business into auto trading By Doug Young Spots of light in a sea of darkness. That could best describe the broader view from the dashboard…

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With Profitability in Sight, Smartphone Recycler ATRenew Goes Local

Company targets tripling of gross merchandise volume over the next four years as it aggressively expands a new city-based recycling model Recycling specialist ATRenew is aiming for more than 100 billion yuan in GMV by 2025, roughly tripling from this year’s level Company said it expects to become profitable on a non-GAAP basis next year By Doug Young Hold on to your hats. Electronics recycling specialist ATRenew Inc. (RERE.US), until recently known as AiHuiShou, is telling the world it’s aiming to sharply boost the gross merchandise value (GMV) of used…

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Long-Time Money-Losing AI Giant SenseTime Seeks High Valuation Listing

The controversial unicorn has lost 24.2 billion yuan in the last three and a half years, as it plans to raise up to $2 billion in a Hong Kong IPO Key Takeaways: SenseTime, whose core competitiveness is in facial recognition, has been approved for a listing in Hong Kong HSBC, one of the sponsors, values SenseTime between $26.5 billion and $36.4 billion, significantly higher than other AI startups By Fai Pui AI unicorn SenseTime Group Inc., invested by Alibaba (9988.HK; BABA.US), will soon be listed in Hong Kong, after being…

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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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