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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Vipshop Takes Defensive Posture as Headwinds Mount

Discount e-commerce veteran has launched a $1 billion share buyback and slashed its marketing spending as it forecast its revenue would decline up to 25% in the second quarter Key Takeaways: Vipshop’s revenue fell 11% in the first quarter, and it forecast the decline would accelerate to as much as 25% in the current quarter Company last month authorized a new $1 billion share repurchase program after buying back $500 million of shares over the previous year By Doug Young Prepare for some turbulence. That’s the message coming from discount…

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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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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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Vipshop Sputters, But Stays Focused on Brand-Name Discounts

E-commerce stalwart’s profit dived 42% in last year’s fourth quarter and revenue fell 5%, as it blamed Covid-19 and warm weather than dampened demand for winter wear Key takeaways: After years of steady growth, Vipshop posted a rare 5% revenue decline in its latest quarter, with profit down by an even sharper 42% The discount e-commerce company has rolled out a series of initiatives to jumpstart growth, including trying to convert more users into VIP members By Trevor Mo The word “focus” might best describe e-commerce stalwart Vipshop Holdings Ltd.…

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Huitongda Network Finds Big Bucks, But Thin Margins, in ‘Sunken Market’

E-commerce company’s shares rose in their Hong Kong trading debut as investors bought into China’s first rural-oriented e-commerce stock Key takeaways: Despite counting Alibaba as its second biggest shareholder, Huitongda’s Hong Kong IPO met with a tepid reception due to concerns about its thin margins Company appears overvalued compared with major competitor Pinduoduo, which spends far more on R&D By Ken Lo As the e-commerce market in China’s largest cities becomes saturated, many platforms have turned their attention to previously neglected markets in smaller townships and rural areas, sometimes called…

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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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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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