Trip.com Gets Boost From Reopening Global Borders

China’s top online travel agent returned to profitability in the second quarter as a growing number of countries where it does business outside its home market lifted travel restrictions Key Takeaways: Strongly recovering business in the U.S. and Europe helped Trip.com return to the black with a 69 million yuan profit in the second quarter The company said outbound bookings from Hong Kong jumped nearly four times last week from the previous week as the city prepared to end its quarantine requirement By Ken Lo After two years in deep…

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A Year After Splashy IPO, Missfresh Looks Well Past Its ‘Sell Date’

The online grocer has just announced a major board reshuffle as it faces an existential crisis with ballooning losses and no relief in sight Key Takeaways: Missfresh announced a major reshuffle of its top ranks, including the resignation of both of its co-CFOs, one of whom was also among three board members to resign The changes came as the company faces a cash crunch caused by swelling losses, big debt and massive back wages owed to former employees By Warren Yang What a difference a year makes. It was just…

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Catching Listing Chill, Dingdang Health Slashes Hong Kong IPO

China’s third largest digital retail pharmacy has been approved for a Hong Kong IPO, but cut the size by 90% from an earlier target Key Takeaways: Dingdang Health has passed a listing hearing in its second try at a Hong Kong IPO, aiming to raise $100 million The company has shifted from its original asset-light to a more asset-intensive model to make good on its promise of faster deliveries By Emily Chan Hong Kong is finally opening the door for digital retail pharmacy Dingdang Health Technology Group Ltd., approving the…

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Is Tencent Winding Down Its Big Investments?

A report that the tech giant is looking to sell its Meituan stake is stoking concerns of more similar divestments to come Key Takeaways: Reuters reported Tencent might sell some or all of its Meituan holdings this year, though Tencent called the report ‘inaccurate’ Some think Tencent might sell other stakes in its more than 70 U.S.- and Hong Kong-listed portfolio companies to raise funds to buy back its shares By Fai Pui China’s anti-monopoly crackdown of more than a year has taken a toll on the nation’s private sector,…

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Dingdong Rings Up First-Ever Profit. But Investors Don’t Buy It

Online grocer reports a 20.6 million yuan second-quarter non-GAAP profit, fueled by buying surge from Shanghai customers during city’s two-month lockdown Key Takeaways: Dingdong reported its first-ever non-GAAP profit in the second quarter, buoyed by strong demand during Shanghai’s two-month lockdown in April and May Company promises to achieve sustained profitability and stick to its super-fast delivery model despite recent woes of major rival By Trevor Mo The recent woes of Missfresh Ltd. (Nasdaq: MF) have cast an uneasy spotlight on the capital-intensive business model used by some of China’s…

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Fresh Fines for Tech Giants: Another Regulatory Storm or Just a Flurry?

Chinese tech titans including Alibaba, Tencent and Bilibili have been fined for failing to disclose M&A dealings, sparking market fears of a return to tough regulation Key Takeaways: The Chinese market regulation authority listed 28 M&A deals that it said broke disclosure rules, slapping fines on a host of tech companies such as Alibaba, Tencent and Bilibili But market analysts say the risk of a renewed clampdown on the tech sector is limited in the face of a slowing economy By Fai Pui Worries about regulatory risk have once again…

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FAST NEWS: Waterdrop Flows to Profit After Cost-Control Measures

The latest: Online insurer Waterdrop Inc. (WDH.US) successfully turned a loss into a profit in the first quarter of the year, with a net profit of 105 million yuan ($15.6 million) from a net loss of 370 million yuan in the same period last year, according to its latest results published on Wednesday. Looking up: The company’s cost-control measures since the third quarter of last year have borne fruit, with operating costs and expenses dropping 60.4% to 532 million yuan in the first quarter – the main reason for the turnaround. Take Note: Its first-quarter…

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With DiDi Reprieve, Is China Taking the Handbrake off the Tech Sector?

Chinese regulators are reportedly poised to end a year-long cybersecurity probe into DiDi Global, allowing the ride-hailing giant to restore its apps and register new users Key takeaways: Along with DiDi, logistics matching platform Full Truck Alliance and online recruitment company Kanzhun are also likely to be allowed to sign up new users  Some analysts expect the Chinese authorities to gradually relax tough regulation of tech companies in order to spur economic growth, removing the biggest uncertainty in the market By Ken Lo The policy makers in charge of steering…

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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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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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