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: 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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As Omicron Subsides, Dada Nexus Could Be Riding Into E-Commerce Gilded Era

The company should benefit from growing demand for local delivery services as consumers become accustomed to receiving goods at home during Covid-19 lockdowns Key takeaways: •      Dada Nexus’ revenue grew strongly in the first quarter, after excluding the impact of a change to the way it pays riders for certain delivery services •      Omicron outbreaks are accelerating drive to online shopping, which should help companies like Dada even as lockdowns and other restrictions start to ease By Warren Yang There’s no shortage of downbeat headlines about the Chinese economy nowadays.…

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FAST NEWS: JD.com Swings to Red as Revenue Growth Slows

The latest: E-commerce giant JD.com Inc. (JD.US; 9618.HK) reported a net loss of 3 billion yuan ($4.44 billion) for the first quarter, reversing a 3.6 billion yuan profit in the same period a year earlier. The company’s revenue rose 18 % to 239.7 billion yuan for the period, according to its announcement on Tuesday. Looking up: The company’s non-GAAP net income for the period was 4 billion yuan, flat compared to the same period last year and better than the 24% to 31% decline expected by major investment banks, mainly due to revenue growth in its logistics and retail…

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China’s Self-Dubbed ‘Fruit McDonalds’ Seeks Juice from Hong Kong IPO

Shenzhen Pagoda reportedly hopes to raise $500 million, aiming to attract investors with its booming online business Key takeaways: China’s biggest fruit retailer Shenzhen Pagoda has filed for a Hong Kong IPO, following two previous failed attempts to list in Hong Kong and on the mainland’s A-share market Company’s online retail sales have helped keep revenue growing despite pandemic store closures, but are also dragging on profits By Li Yaoyao and Jony Ho Online distribution channels can help traditional retailers boost their revenues. But getting a similar boost for their…

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Mass Layoffs at ‘China’s Instagram’: Tough Times or Primping for IPO?

Xiaohongshu confirms cutting 9% of its staff amid similar layoffs at other big internet companies. But some suspect the move may be aimed at improving its financials for an IPO Key takeaways: Xiaohongshu’s recent major layoffs could reflect a tough advertising market, even as it framed the move as normal workforce turnover Others reportedly laying off large numbers of workers include top livestream gaming platforms Huya and DouYu, whose planned merger was nixed by regulators last year By Ken Lo China’s internet realm has become the land of massive layoffs…

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China New Higher Education Thrives on Strong Record, Government Support

Vocational educator placed 98% of its graduates last year, giving it leverage to raise tuitions that powered a 31% revenue jump in its latest financial report Key Takeaways: China New Higher Education placed 98% of its graduates last year, much higher than the industry average, allowing it to raise tuitions Company should benefit from a slew of government policies supporting the sector, including continued involvement by private players By Fai Pui It’s graduation season again, which means a record 10 million students will be hitting the Chinese workforce this year,…

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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;…

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JD.com Pays Big Premium for Majority Control of Dada Nexus

E-commerce giant said it has boosted its stake in the local delivery company to 52% from 46%, after getting regulatory approval for a deal first announced a year ago Key Takeaways: JD.com will take majority control of Dada Nexus for a big premium, completing a deal the two first announced a year ago Deal may have been delayed by Beijing regulators, who are wary of the growing influence of China’s biggest technology companies By Doug Young There’s nothing like having a rich parent who doesn’t mind overpaying to indulge you.…

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