Tuya Seeks Hong Kong IPO to Hedge U.S. Delisting Risk, But Investors Are Wary

With the possibility of being forced to delist from the U.S. market by the SEC, Tuya is primarily seeking a safe harbor and only aims to raise a conservative HK$140 million Key takeaways: Tuya’s failure to turn a profit and a lackluster performance of the overall share market in Hong Kong has dampened investor interest The first-quarter loss of the internet of things company widened by 35.6% year-on-year as a result of rising R&D and operational costs By Fai Pui As the diplomatic and economic showdown between Beijing and Washington…

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Despite iQiyi Denial, Is Baidu Set to Roll Credits on Its Video Affiliate?

Baidu is rumored to be seeking to sell its controlling stake in iQiyi, a video platform dubbed “China’s Netflix”. The report was denied by iQiyi, but Baidu’s silence is stoking market speculation Key Takeaways: A Reuters report says search engine giant Baidu is considering selling the recently profitable iQiyi platform with a target price of $7 billion iQiyi denied the report. But it could make sense for Baidu to divest from video streaming to sharpen its focus on cloud services, AI and self-driving products By Fai Pui Just as the video…

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With DiDi Reprieve, Is China Taking the Handbrake off the Tech Sector?

Chinese regulators are reportedly poised to end a year-long cybersecurity probe into DiDi Global, allowing the ride-hailing giant to restore its apps and register new users Key takeaways: Along with DiDi, logistics matching platform Full Truck Alliance and online recruitment company Kanzhun are also likely to be allowed to sign up new users  Some analysts expect the Chinese authorities to gradually relax tough regulation of tech companies in order to spur economic growth, removing the biggest uncertainty in the market By Ken Lo The policy makers in charge of steering…

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FAST NEWS: SPAC with Alibaba Former CEO Ties Oversubscribed

The latest: Vision Deal HK Acquisition Corp. (7827.HK), the second listed special purpose acquisition company (SPAC) on the Hong Kong stock market, announced Thursday its offering of 100 million shares was slightly oversubscribed and will be listed on Friday. Looking up: The investors participating in this subscription include 94 professional investors, of which 24 are institutional professional investors, who will hold 75.71% of the shares in the offer, respectively. Take Note: The shares of this company will be offered only to professional and institutional investors, and the admission fee of…

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Vending Machine Leader Ubox Spits Out Big Losses During Pandemic

The company backed by Ant Financial has filed for a Hong Kong IPO, despite logging nearly 1.4 billion yuan in losses over the past two years due to pandemic-related disruptions Key takeaways: Ubox has filed for a Hong Kong IPO despite reporting losses in the past two years due to pandemic-related disruptions to its core vending machine business The company’s backers include Alibaba’s Ant Financial, which led a 1.6 billion yuan investment in the company in 2019 By Ken Lo Perhaps it hoped a star-studded investor lineup and use of…

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FAST NEWS: Maturing Pinduoduo Posts Single-Digit Revenue, User Growth

The latest: E-commerce company Pinduoduo Inc. (PDD.US) said on Friday its revenue rose 7% year-on-year to 23.8 billion yuan ($3.6 billion) in the first quarter. The company, which specializes in sales to China’s smaller cities, reported a first-quarter profit of 2.6 billion yuan, compared with a 2.9 billion yuan loss a year earlier. Looking Up: Excluding merchandise sales, which fell 99% during the quarter, the company’s revenue rose 39% in the first quarter to 23.7 billion yuan. Take Note: The company’s average monthly active users (MAUs) rose just 4% year-on-year to 751.3 million during the…

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FAST NEWS: Baozun’s Profit Plunges as Alibaba Reliance Eases

The latest: E-commerce software as a service (SaaS) provider Baozun Inc. (BZUN.US; 9991.HK) said its revenue fell 1.8% year-on-year in the first quarter to 1.98 billion yuan ($294 million), while its non-GAAP operating profit fell 93.8% to 4.7 million yuan, according to its latest results published on Thursday. Looking up: The company’s gross merchandise value (GMV) for the period reached 17 billion yuan, an increase of 28.4%, mainly benefiting from an 86.1% jump in GMV for its service fee model. Take Note: Electronics and appliance sales slowed as the company optimized its distribution business,…

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FAST NEWS: U.S. Warns of ‘Significant Issues,’ ‘Time Running Out’ to Reach Securities Deal With China

The latest: Despite recent progress in negotiations for an information-sharing agreement between U.S. and Chinese securities regulators, “significant issues remain and time is quickly running out” to reach such an agreement, a U.S. Securities and Exchange Commission (SEC) official said. Looking Up: Recent talks with the China Securities Regulatory Commission (CSRC) have been “productive” and “constructive,” Y.J. Fischer, director of the SEC’s Office of International Affairs, said in remarks published online on Tuesday. Take Note: Fischer warned that even if an agreement is reached, more time will be needed to…

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Vipshop Takes Defensive Posture as Headwinds Mount

Discount e-commerce veteran has launched a $1 billion share buyback and slashed its marketing spending as it forecast its revenue would decline up to 25% in the second quarter Key Takeaways: Vipshop’s revenue fell 11% in the first quarter, and it forecast the decline would accelerate to as much as 25% in the current quarter Company last month authorized a new $1 billion share repurchase program after buying back $500 million of shares over the previous year By Doug Young Prepare for some turbulence. That’s the message coming from discount…

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