China’s Economic Slump Leaves Internet Lenders Battling Bad Loans

360 DigiTech, FinVolution and Lexin all reported first-quarter net profit declines and growing delinquent loans, amid a grim outlook for China’s economy Key takeaways: •      360 DigiTech and FinVolution posted 12% and 9% profit declines in the first quarter, respectively, while Lexin’s profit plunged by 89% •      Delinquent loans rose for all three lending platforms, forcing them to increase loan-loss provisions By Warren Yang The fortunes of consumer lenders are a good proxy for the state of an economy. When times get rough, individuals with shaky income are often among…

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Jiumaojiu Tastes Success in 2021 on Fast Growth for Its ‘Sauerkraut Fish’ Chain

Restaurant operator says its profit rose at least 166% last year on strong performance for its popular hotpot format, even as rival Haidilao moved in the opposite direction Key Takeaways: Jiumaojiu said its revenue and profit rose at least 50% and 166% last year, respectively, as diners flocked to its popular Tai Er ‘sauerkraut fish’ restaurants Rival Haidilao said it will report a 3.8 billion yuan to 4.5 billion yuan loss for 2021, its first-ever loss since its 2018 IPO, following an overly aggressive expansion By Shirley Lau When restaurant…

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FAST NEWS: Instant Noodle Maker Nissin Boosts Stake in Hong Kong Distributor

The latest: Instant noodle maker Nissin Foods Co. Ltd. (1475.HK) said it will pay HK$13.7 million ($1.76 million) to boost its stake in its Hong Kong and Macau distributor MCMS to 81% from a previous 51%, according to a Thursday announcement. Looking Up: Nissin said its greater control of MCMS will allow it to boost its distribution network in Hong Kong and Macau. The company currently derives about a third of its revenue from the Hong Kong market, while the rest comes from the Chinese mainland. Take Note: MCMS’s after-tax…

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‘Sauerkraut Fish’ Specialist Serves Up Appetizing Earnings Report

Shares of Jiumaojiu initially jumped 6% after company reported healthy growth in second half of last year on ‘revenge dining,’ as life largely returned to normal in China Key takeaways: Jiumaojiu’s strong performance in the second half of last year partly reflects “revenge dining,” as people spent more on eating out after widespread lockdowns in the first half of 2020. The company’s focus on its trendier Tai Er brand and rollout of a new hot pot chain could help to maintain its growth, even as its valuation remains extremely high.…

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