Living in TikTok’s Shadow, Kuaishou Bleeds Red Ink and Cash

The short-video platform’s loss narrowed by 34% in the first quarter, as investors worry about how long its cash can last Key Takeaways: Kuaishou’s adjusted net loss narrowed in the first quarter, but its ad revenue came under pressure during China’s latest Covid containment measures The company’s user base is almost half as large as that for TikTok parent ByteDance, even though its operating revenue and gross profit are just one-third as big By Ken Lo  Shares of Kuaishou Technology (1024.HK) have come a long way since their trading debut in Hong Kong last…

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 »

TuSimple Looks to Decouple From China. Others to Follow?

Autonomous truck technology company is reportedly looking to sell its China business for about $1 billion Key Takeaways: Autonomous truck company TuSimple is reportedly looking to spin off its China business, leaving its more advanced U.S. business as its main asset Such a spinoff could provide upside for company’s stock by significantly reducing U.S. national security concerns By Doug Young Spring may finally be coming for U.S.-China stocks, following a nearly yearlong winter, with the latest signals that Beijing and Washington securities regulators are moving closer to an agreement that…

Read More »

Finding Middle Ground: Chinese Companies Need to Recalibrate Their Global Strategies

The world is a far different place from the one Chinese companies faced when they first began going out. They need to change their strategies to reflect that By Lub Bun Chong The U.S.-China decoupling shows no signs of abating anytime soon. That means that, like it or not, Chinese companies need to go back to the drawing board and recalibrate their international fundraising and growth strategies. In December 2021, the U.S. capital market regulator, the Securities and Exchange Commission, issued regulations threatening to delist U.S.-listed Chinese companies that do…

Read More »

‘Fun’ Drops Out of No. 2 News Aggregator Qutoutiao

Company, whose name means ‘fun headlines,’ discloses it may be unable to repay a $171 million loan coming due early next year Key Takeaways: Controlling cashflow will be crucial for Qutoutiao in coming months as it worries over its ability to repay a $171 million loan coming due early next year Company’s big user base in smaller Chinese cities could make it an attractive takeover target By Alice Leung Its name means “fun headlines,” but investors in Qutoutiao Inc. (Nasdaq: QTT) haven’t found much fun in this news and video…

Read More »

Baozun Aims to Ease Its Alibaba Addiction With New Growth Plan

Company aims to triple revenue and boost operating profit sixfold in next three to five years Key Takeaways Baozun’s new three- to five-year “profitable growth” strategy is designed to respond to rapid shifts in e-commerce buying habits Company’s diversification bid risks unsettling close ties with Alibaba and Tmall, which account for 75% of its business By Eric Auchard Alibaba may be a good business partner, but it’s nice to work with others as well – especially as Beijing cracks down on the e-commerce giant for its monopolistic practices. That’s the…

Read More »

Is Qutoutiao Yesterday’s News? Ask Founder Eric Tan

Investors flee the No. 2 news aggregator after its latest earnings show it shifting focus to cost control over money-losing growth By Doug Young The latest financials are out from news app aggregator Qutoutiao Inc. (Nasdaq: QTT), and while a few financial disciplinarians may like them, most people were far from pleased with what they saw. That’s the major takeaway from the company’s quarterly report released Thursday, sparking a massive selloff that saw Qutoutiao’s shares lose a quarter of their value. We’ll review the numbers shortly to see what exactly…

Read More »