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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Margins, Anyone? Yum China Wows Investors With Improved Efficiency

Operator of KFC and Pizza Hut chains in China reported its best restaurant margins in four years, lifted by a ‘perfect storm’ of factors, some temporary and others long-term Key Takeaways: Yum China reported its restaurant margin rose to 18.8% in the third quarter from 12.2% a year earlier, marking its best performance of that metric since 2018 The KFC and Pizza Hut operator for China reported a return to revenue growth in the third quarter, but cautioned the country’s Covid-controls intensified in October By Doug Young It may not…

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FAST NEWS: Yum China Soars as Quarterly Profit Doubles

The latest: Yum China Holdings, Inc. (YUMC.US; 9987.HK), operator of the KFC and Pizza Hut chains in China, on Tuesday reported its net profit rose 98% to $206 million in the third quarter, with adjusted profit up 117% to $208 million. Looking up: The company captured growing demand for delivery and takeaway during the period, which offset subdued volume for dine-in service at its restaurants. As a result, its total revenues increased 5% year-over-year to $2.68 billion in the quarter, outpacing the 2% average growth in the Chinese restaurant industry.…

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Domino’s China Operator Makes Second Toss at Hong Kong IPO

DPC Dash has filed an updated prospectus to float shares, showing its growth slowed in the first half of 2022 amid widespread Covid disruptions Key Takeaways: DPC Dash, operator of the Domino’s pizza chain in China, has filed an updated prospectus to list its shares in Hong Kong The company differs from larger rival Pizza Hut in China due to its bigger focus on delivery, and also due to its earlier stage of development By Doug Young Making a good meal is one thing, but serving it up is quite…

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FAST NEWS: Yum China Shifts Hong Kong Listing to Primary Status

The latest: Yum China Holdings, Inc. (YUMC.US; 9987.HK), operator of U.S. fast food giant Yum Brands Inc.’s (YUM.US) KFC and Pizza Hut chains in China, on Wednesday announced it will convert its secondary listing status in Hong Kong to primary status effective Oct. 24. Looking up: By obtaining primary status for its Hong Kong listing, Chinese mainland investors can eventually trade Yum China’s shares through a program linking Hong Kong and mainland Chinese stock exchanges, thereby expanding its investor base and trading volume. Take Note: Unlike the secondary listing status Yum China currently…

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Country Style Cooking Chain Joins Chinese Fast Food Listing Rush

Spicy Sichuan food server is one of three restaurant chains looking to become the first Chinese fast food stock with a Hong Kong IPO bid Key Takeaways: Chinese fast food chain Country Style Cooking Restaurant, which expanded rapidly in recent years, has filed to list on the Hong Kong Stock Exchange for a second time The company’s earnings have been shaken by the Covid pandemic and the Shanghai lockdown pushed it into the red for first the five months of this year By Ken Lo A restaurant chain selling the…

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Domino’s China Operator DPC Dash Delivers Hong Kong IPO

Chinese franchisee for world’s biggest pizza chain is growing rapidly in the underserved China market, with revenue up 46% last year Key takeaways: Domino’s China operator DPC Dash has filed for a Hong Kong IPO that could raise up to $100 million and value the company at around $500 million Company has cashed in on China’s recent shift to takeout dining, posting 18.7% same-store sales growth last year By Doug Young The local operator of the Domino’s (DPZ.US) pizza chain is baking up China’s latest IPO, showing that locally popular…

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FAST NEWS: SEC Names Five Chinese Stocks at Threat of Delisting

The latest: The U.S. Securities and Exchange Commission (SEC) announced Thursday that it has placed five Chinese companies on a list of companies that could face the threat of delisting under the Foreign Company Accountability Act, including BeiGene, Ltd. (BGNE.US; 6160.HK; 688235.SH), Zai Lab Ltd. (ZLAB.US; 9688.HK), Yum China Holdings Inc. (YUMC.US; 9987.HK HK), Hutchmed (China) Ltd. (HCM.US; 0013.HK) and ACM Research Inc. (ACMR:US). Looking up: There are currently more than 270 Chinese stocks listed in the U.S. The SEC has named only five this time, giving the others time…

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Restrictions Take Fourth-Quarter Bite Out of Rebounding Year for Yum China

Operator of KFC and Pizza Hut restaurants in China posted small revenue growth in fourth quarter as it continued to briskly open new stores despite Covid disruptions Key Takeaways: Yum China reported its revenue rose 1% in the fourth quarter, and managed to remain profitable despite tough Covid restrictions that led to weak consumption China’s biggest restaurant operator opened a record 1,806 stores during the year, bringing its total to 11,788, as it marches towards a goal of 20,000 stores By Doug Young “Staying the course” is fast emerging as…

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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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