Meituan Delivers Tasty Profit but Predicts Tougher Times Ahead

Thanks to cost controls, online food delivery giant Meituan turned a profit in the third quarter after languishing in the red for nearly two years. But it warned that the pandemic would take a heavier toll on its results in the last three months of the year Key Takeaways: Meituan beat market expectations for third-quarter earnings, posting 1.22 billion yuan in net profit and 3.53 billion yuan in adjusted net profit, helped by a stronger performance in its core local commerce business and narrower losses on new ventures Tencent’s biggest…

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If JD Tech Is Getting Back on IPO Track, Could Ant Group Be Next?

China’s securities regulator is reported to be taking another look at JD Technology’s IPO application and might approve the listing at the end of the year. The market thinks Alibaba’s Ant Group may also be getting close to reviving its IPO Key Takeaways: Reports are circulating that Chinese securities regulators are reviewing JD Technology’s IPO application, and that the firm’s investment bankers have resumed work on the listing Meanwhile, Ant Group has taken a potential step towards a revived IPO after boosting the registered capital of its consumer finance arm…

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FAST NEWS: PCAOB Completes Chinese Stock Audits Ahead of Schedule in Hong Kong

The latest: Officials from the U.S. Public Company Accounting Oversight Board (PCAOB) in Hong Kong have completed their first on-site audits of Chinese stocks ahead of schedule and may submit preliminary reports to the U.S. securities regulator in the coming weeks, according to a report from Bloomberg last Friday. Looking up: Bloomberg indicated that dozens of PCAOB inspectors may have left Hong Kong over the past weekend. Their audit work of U.S.-listed Chinese companies was originally scheduled to continue until mid-November, but its early completion may reflect that things went…

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Could ‘Double 11’ Festival Players Post Their First-Ever Sales Declines?

A combination of macro headwinds and cutthroat competition could make it difficult to achieve another year of substantial growth By Chan Ka Po Now in its 14th year, the Nov. 11 online shopping extravaganza known as “Double 11,” or “Single’s Day,” has always been regarded as a showcase of Chinese consumers’ buying power. This year’s event will undoubtedly be overshadowed by a number of macro challenges as organizers try to post more growth. So, are there early signs that consumer enthusiasm will continue to be high, or will it show…

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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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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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Cross-Border E-commerce Trader Zibuyu Files for IPO Despite Sinking Profits

The company is making a third attempt at a Hong Kong listing, but its heavy reliance on the U.S. and Amazon led to a 46% profit plunge in the first half of this year Key Takeaways: Cross-border e-commerce company Zibuyu has filed for a Hong Kong IPO, but could be undermined by its heavy reliance on Amazon and the U.S. market The company’s first-half profit plunged 46% as its merchandise return rates and costs both rose sharply By Stone Shek Making it big in the U.S. may be one thing,…

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TikTok-ing Off High Valuation, ByteDance Offers to Buy Out Early Investors

The TikTok parent will buy back up to $3 billion of its own shares at a valuation of about $300 billion, even as China’s second largest internet company also faces major geopolitical headwinds Key Takeaways: Data security concerns have stalled an overseas IPO plan by TikTok parent ByteDance, prompting it to offer to buy out shares from some early investors The company is valued higher than social media giants Alphabet, Meta and Tencent on a price-to-sales (P/S) basis By Ken Lo What’s the best way to quiet noisy shareholders clamoring…

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