Topsports Hamstrung by Foreign Brand Ties, Pandemic Controls
Key Takeaways:
Topsports’ revenue and net profit fell in the first half of its fiscal year on tight pandemic controls in China and ripple effects from a cotton sourcing controversy
Things Don’t Add Up Well in Used Computer Renter’s IPO Bid
Key Takeaways:
LX Technology, parent of Little Bear Rental, has been approved for a Hong Kong IPO, despite losing over 740 million yuan in the past three and a half years
Its major early shareholders, including Tencent, Lenovo and JD.com, have started cutting their ties with the company even before the IPO
By Tina Yip
Collectible Toy Maker Pop Mart Falls Out of Favor
Key Takeaways:
Pop Mart said its third-quarter revenue fell between 5% and 10% year-over-year, deteriorating from an already-weak first half of 2022
The company has launched a series of initiatives to jumpstart its growth, including a ramp-up in overseas development, though none have reaped significant success yet
By Trevor Mo
Former Retail Star Gome Hobbled by Declining Revenue, Heavy Debt
Key Takeaways:
Gome’s revenues are falling sharply despite gains for its online business, as tumbling sales at its brick-and-mortar stores lead to layoffs and closures
Li Ning Tripped Up by Chinese Nationalists
Key Takeaways:
Sportswear maker Li Ning’s shares took a beating after the company came under fire for new designs that resembled hats worn by Japanese soldiers during World War 2
Although such scandals are typically short-lived, they can have a big impact if handled improperly, experts say
By Jose Qian
New Oriental Emerges from Carnage of Education Cleanup
Key Takeaways:
New Oriental Education returned to profitability in its latest reporting quarter, as its revenue declines continued to ease
The company’s new business mix after China banned K-12 tutoring in core curriculum areas includes non-academic tutoring and study abroad services
By Doug Young
So-Young’s CEO-led Buyout Dissolves After Stock Plunge
Key Takeaways:
So-Young said a group led by its co-founder and CEO has withdrawn its earlier buyout offer made nearly a year ago
The withdrawal came as the company faces challenges from a regulatory crackdown on the medical aesthetics industry and a slowing Chinese economy
By Warren Yang
Pinduoduo Finds Early Success in U.S. E-Commerce. Now Comes the Hard Part
Key Takeaways:
Nearly two months after its launch, Pinduoduo’s cross-border e-commerce Temu app is among the top U.S. e-commerce apps based on new download rankings
Despite its early success, the app will face a series of challenges in its target U.S. market, including cutthroat competition and high marketing expenses
Huadi: Big News Coming, or Just Another China Meme Stock?
Key Takeaways:
Huadi International’s shares soared 90% on Friday despite a lack of news from the company, which hasn’t released any financial results since February
The company could sell up to $300 million in new shares, according to a June stock exchange filing, equal to nearly half of its market value after the Friday rally