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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Vipshop Cultivates Its VIPs at Expense of Broader Growth

The discount e-commerce company’s profit grew strongly in the third quarter, but that came on cost controls, as its revenue fell 13% Key Takeaways: Vipshop’s non-GAAP profit rose more than 50% in the third quarter, but its top line revenue declined by 13% The company emphasized it will stick to its current cost control approach and continue to focus on profitability By Trevor Mo “Making profits in China’s competitive e-commerce market is tough, especially in the current environment. But we can not only do it, but do it better than…

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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: Dada’s Revenue Soars, But High Costs Lead to More Losses

The latest: Local on-demand delivery and retail platform Dada Nexus Ltd. (DADA.US) reported its revenue rose 41.1% to 2.38 billion yuan ($332 million) in the third quarter, while its gross merchandise volume (GMV) for the 12 months through Sept. 30 surged 58.3% to 58.9 billion yuan, according to its latest quarterly results released on Thursday after markets closed. Looking up: The company’s non-GAAP operating margin for the quarter improved to negative 12.6% from negative 28% a year earlier. Take Note: The company reported a net loss of 454 million yuan…

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No Happiness in ‘Double 11’ Shopping Fest for Depressed Alibaba

The e-commerce giant may record its first-ever sales decline in this year’s ‘Double 11’ online shopping extravaganza as its shares sink to their 2014 IPO level Key Takeaways: Alibaba’s merchandise sales for this year’s ‘Double 11’ festival, also known as ‘Singles’ Day,’ could drop 1.5% year-on-year, according to a Bloomberg forecast The company’s depressed stock has recently traded as low as $58.01, below the $68 price from its blockbuster New York IPO in 2014 By Fai Pui The shopping fest known as “Singles’ Day” in China has been a goldmine…

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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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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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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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