Cloopen: A Clean Cloud, or Still Under Stormy Skies?

Cloud services provider’s investigation confirms revenue inflation last year, while separate, but similar, investigation by retailer Miniso finds no evidence of misleading claims involving its franchise model Key Takeaways: An internal investigation by cloud services provider Cloopen found the company inflated its revenue by about 5% in last year’s second and third quarters The new China-U.S. information-sharing agreement could help restore investor confidence in such U.S.-listed Chinese companies By Doug Young A couple of new announcements involving internal investigations results for two U.S.-listed Chinese companies are showing why we need…

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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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Hongjiu Fruit Gets IPO Go-ahead but Cash Flow Concerns May Bite

Hongjiu Fruit has gained approval to list its shares in Hong Kong but soaring levels of customer credit could curb investors’ appetite Key Takeaways: Hongjiu Fruit specializes in high-value fruit and was the biggest distributor of branded fresh fruit in China last year in revenue terms The company’s rapid expansion of new retail channels has raised cash flow risks, with trade receivables surging above 5.9 billion yuan in the first five months of the year By Emily Chan A company that serves the top end of China’s fruit market is…

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Dingdong, Missfresh Surge on Booming Business During Covid Lockdowns

Shares of nation’s two leading online grocers rose sharply on Tuesday, propelled by buying from nearly 200 million Chinese currently confined to their homes Key Takeaways: Investors may be growing more bullish on Dingdong and Missfresh as recent Covid-related lockdowns drive more consumers to buy groceries online Both companies trade at relatively low valuations, even after big stock gains this week, as analysts remain bullish on the pair By Doug Young It’s not often that we write about companies purely based on big stock movements with no company-specific news in…

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Dingdong Slows Down Spending, Dangles Prospect of Profits

Leading online grocer’s new focus on cost controls helped it pare its losses in the fourth quarter Key Takeaways: Dingdong’s revenue growth slowed to 72% in the fourth quarter, down from 111% and 78% in the third and second quarters, respectively Leading online grocer also reined in its spending, helping pare its quarterly net loss by 12% as it talked of profitability ‘soon’. By Doug Young After years of spending on breakneck growth, leading online grocer Dingdong Cayman Ltd. (DDL.US) finally appears to be slowing down in response to investor…

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Missfresh Tries to Tempt Investors with Value-Added Offerings

Recent announcements show online grocer is adding higher-margin products and services to its lineup like ready-to-cook meals and prepackaged seasoning blends Key takeaways: •      Missfresh has launched a series of value-added initiatives in its bid to achieve profitability by selling more higher-margin products outside its core online grocery business •      Company’s stock is down more than 70% since its debut in the U.S. last June By Trevor Mo We may be losing money, but we’re working hard to find a recipe for success. That’s a key message in the latest…

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Dingdong Pulls Further Away From Old Opponent, But Profits Remain Far Off

Online grocery giant left its top rival Missfresh in the dust in terms of third-quarter revenue, but its losses keep growing as it pursues more customers Key points: Dingdong’s revenue doubled in the third quarter, but its loss grew even faster by 1.4 times as it become trapped in a cycle of ‘greater losses with more income’ The company’s management admitted returns on investment are still a long way off By Jony Ho Multiple Covid-19 outbreaks have made Chinese consumers increasingly accustomed to buying groceries online. The race for supremacy…

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Missfresh Boosts Direct Buying in Drive to Cut More Fat From Supply Chain

Online grocer’s shares rally after it announces signing up hundreds of new direct suppliers, even as its margins remain far below those of larger rival Dingdong Key takeaways: •      Online grocer Missfresh said it expanded its network of direct suppliers, aiming to improve margins that lag far below larger rival Dingdong •      Direct sourcing could help company lower procurement costs as it struggles to turn a profit By Warren Yang In its short life as a public company, Missfresh Ltd. (MF.US) has learned the hard way that it’s not easy…

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Dingdong Boosts Lead Over Older Rival for High-End Grocery Delivery

4-year-old company posts 80% revenue growth in its first quarterly earnings report, double the rate for its 7-year-old rival Missfresh Key points: Online grocer Dingdong boosted its edge over older rival Missfresh by posting sharply stronger revenue growth in the second quarter The two companies could be well positioned to avoid a recent wave of regulatory scrutiny due to their relatively small size

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Wall Street Gives Thumbs Down to Online Grocers’ Business Model

Direct sales model used by Dingdong and Missfresh could put them at a disadvantage to Pinduoduo, Meituan Key points: Dingdong and Missfresh use a centralized direct sales model, compared with a less costly model used by newer rivals Pinduoduo and Meituan Dingdong and Missfresh may soon be forced into cash-conservation mode due to their limited funds and heavy losses By Wang Chuan U.S. investors have given a chilly reception to newly listed online grocers Missfresh Ltd. (MF.US) and Dingdong Ltd. (DDL.US), worried about both companies’ continued losses in the face…

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