Margins, Anyone? Yum China Wows Investors With Improved Efficiency

Operator of KFC and Pizza Hut chains in China reported its best restaurant margins in four years, lifted by a ‘perfect storm’ of factors, some temporary and others long-term Key Takeaways: Yum China reported its restaurant margin rose to 18.8% in the third quarter from 12.2% a year earlier, marking its best performance of that metric since 2018 The KFC and Pizza Hut operator for China reported a return to revenue growth in the third quarter, but cautioned the country’s Covid-controls intensified in October By Doug Young It may not…

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Things Don’t Add Up Well in Used Computer Renter’s IPO Bid

LX Technology Group, parent of ‘Little Bear Rental,’ has been approved for a Hong Kong listing, despite losing more than $100 million over the last three years Key Takeaways: LX Technology, parent of Little Bear Rental, has been approved for a Hong Kong IPO, despite losing over 740 million yuan in the past three and a half years Its major early shareholders, including Tencent, Lenovo and JD.com, have started cutting their ties with the company even before the IPO By Tina Yip These are not the best of times for…

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Li Ning Tripped Up by Chinese Nationalists

The sportswear brand apologized after one of its new designs was accused of recalling a humiliating period for China, but its stock still suffered Key Takeaways: Sportswear maker Li Ning’s shares took a beating after the company came under fire for new designs that resembled hats worn by Japanese soldiers during World War 2 Although such scandals are typically short-lived, they can have a big impact if handled improperly, experts say By Jose Qian When Li Ning Co. Ltd. (2331.HK) held a fashion show in September, the leading sportswear brand…

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New Oriental Emerges from Carnage of Education Cleanup

Leading education services provider returned to profitability in its latest reporting quarter, drawing on new focuses in overseas study and non-academic tutoring Key Takeaways: New Oriental Education returned to profitability in its latest reporting quarter, as its revenue declines continued to ease The company’s new business mix after China banned K-12 tutoring in core curriculum areas includes non-academic tutoring and study abroad services By Doug Young Despite making earlier headlines with its creative new foray into livestreaming e-commerce, the latest quarterly results from New Oriental Education and Technology Group Inc.…

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Former Retail Star Gome Hobbled by Declining Revenue, Heavy Debt

The household appliance seller warned its revenue fell as much as 60% year-on-year in the first three quarters, and added some of its loans are overdue Key Takeaways: Gome’s revenues are falling sharply despite gains for its online business, as tumbling sales at its brick-and-mortar stores lead to layoffs and closures The company is staring at a potential debt crisis as it owes 22.9 billion yuan in bank loans despite having only 2.41 billion yuan in its coffers By Ken Lo Chinese poems like to lament how fleeting beauty is.…

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Pinduoduo Finds Early Success in U.S. E-Commerce. Now Comes the Hard Part

The Chinese company’s Temu was among the top 10 iPhone and Android e-commerce apps in the U.S. in mid-October following its launch less than two months earlier Key Takeaways: Nearly two months after its launch, Pinduoduo’s cross-border e-commerce Temu app is among the top U.S. e-commerce apps based on new download rankings Despite its early success, the app will face a series of challenges in its target U.S. market, including cutthroat competition and high marketing expenses By Trevor Mo Chinese internet giants have been busy trying to expand overseas lately…

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Newly profitable Kanzhun Steps Aboard Hong Kong’s Dual Listing Train

China’s leading online recruiter has filed for a dual primary listing in Hong Kong after cutting its costs and getting approval to register new users Key Takeaways: Having finally turned a profit, Kanzhun has filed for a dual primary listing on the Hong Kong Stock Exchange to insure against its shares being pulled from New York A ban on registering new users on its employment platform has been lifted, but the company’s profit outlook is clouded by China’s economic downturn and reduced job vacancies  By Fai Pui Hong Kong’s dual…

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Food Giant Meituan Mulls Plans to Go Global, with Hong Kong as Gateway

The online food delivery giant is said to be looking to expand into markets outside mainland China, starting with Hong Kong Key Takeaways: Meituan poached Tony Qiu, head of international business at Kuaishou Technology, in July this year to pave the way for overseas expansion, and Hong Kong seems the best starting point DBS projects an adjusted annual net profit of around 3 billion yuan for the company this year, but investors are still worried about the impact of China’s zero-Covid policy on third-quarter revenue By Ken Lo With challenges…

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E-House Foundation Shudders as It Scrambles to Finalize Debt Restructuring

The real estate services provider filed for Chapter 15 bankruptcy protection in New York after delaying a meeting with creditors to vote on a debt restructuring plan Key Takeaways: E-House is seeking protection against possible asset seizure in the U.S. under Chapter 15 bankruptcy about six months after defaulting on nearly $298 million in dollar bonds Implementation of the company’s debt restructuring plan, set for a vote by creditors early next month, hinges on the status of convertible bonds issued to Alibaba By Warren Yang Time is ticking down for…

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Brighter Times Could Beckon for JD.com after Stormy Spell

Among the top five Chinese tech stocks listed in Hong Kong, JD.com has fallen the least in the past year and the relatively resilient stock could be set for a rebound Key Takeaways: Key factors in a JD share-price rally would be the results of a U.S. regulatory review of Chinese stocks and the expected launch next year of a scheme to promote dual-currency share trading in Hong Kong A settlement in a sexual assault case against company founder Richard Liu has also removed a shadow over the share price…

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