Gross gaming revenue in Macao totaled 18.06 patacas ($22.35 billion) in September, down 1.2% year-over-year, marking the fourth consecutive month of declines since May, the city’s Gaming Inspection and Coordination Bureau announced on Thursday.

Gaming revenue typically softens in September as tourist traffic tapers off with the end of the summer holidays. October often reverses the trend, as many tourists visit Macao during the Mainland’s weeklong National Day holiday that starts Oct. 1.

Macao's cumulative gaming revenue for the first nine months of the year totaled 187.12 billion patacas, up 3.2% year-over-year, reaching 79.3% of the government's full-year projection of 236 billion patacas. Typical strength in the fourth quarter, which includes both the National Day and Christmas holidays, means the city is almost certain to meet the government’s full-year target.

By Lau Chi Hang

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Hygiene products maker Hengan International Group Co. Ltd. (1044.HK) announced on Wednesday that its co-founder and executive Chairman Sze Man Bok passed away on Sept. 29. It did not give his age or a cause of his death.

Hengan noted that Sze had “devoted his full efforts” to directing the company until recently, but added the board believes his death won’t have any impact on operations. In another filing on Wednesday, it listed CEO Hui Ching Lau as its acting chairman.

Hengan, whose two main products are diapers and sanitary napkins, reported revenue of 11.1 billion yuan ($1.65 billion) for the first half of 2026, down 6.1% year-on-year. Its profit for the period fell 8.7% to 1.25 billion yuan.

The company’s stock rose 0.1% on Wednesday morning to close at HK$19.65 by the midday break. The stock is down about 30% this year.

By Doug Young

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ITC Neocloud Group Ltd. (0199.HK), formerly known as ITC Properties Group Ltd., announced on Tuesday that it plans to acquire 80% of Guangzhou Chaoqi Xiyang Technology Co. Ltd. for 83.6 million yuan ($12.47 million) to expand its AI computing power orchestration services.

Established in July this year, Chaoqi Xiyang has taken delivery of 26 high-performance servers and signed two computing power orchestration service contracts with a Shanghai-based AI infrastructure company, with aggregate service fees of approximately 649 million yuan. Service delivery and collection have commenced under the first contract. A deposit has been received under the second, while collection of the first monthly service fee remains pending while invoicing procedures are in progress.

Chaoqi Xinyang recorded revenue of approximately 3.41 million yuan and a loss of approximately 29 million yuan from the time of its establishment through the end of August, with the loss mainly attributable to one-off financing advisory fees. ITC said the acquisition would bring together equipment, customer contracts and financing arrangements to accelerate the development of its computing services business.

ITC’s original businesses included property development, sales and investment. The company recorded revenue of HK$413 million ($52.6 million) in its latest fiscal year through March. Its loss for the year totaled approximately HK$528 million, narrowing by 35% year on year. The company is expanding into AI infrastructure and cloud services and recently changed its name to ITC Neocloud.

Following the acquisition announcement, ITC Neocloud’s stock rose 7.29% to close at HK$2.795 on Tuesday, bringing its gains over the past six months to more than 190%.

By Lee Shih Ta

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Shares of robot vacuum component maker Shenzhen Camsense Technologies Co. Ltd. (6802.HK) soared in their Hong Kong trading debut on Wednesday, nearly doubling at the open and climbing during the morning to close at HK$173.60 by the midday break, up nearly 200%.

The company sold 11.6 million shares for HK$58.85 each, raising net proceeds of nearly HK$615 million ($78.85 million). The public offering for local investors was oversubscribed by 3,546 times, while the international offering was oversubscribed by 4.5 times. Two cornerstone investors purchased 1.87 million shares, accounting for 16.13% of the total being sold.

The company generated revenue of 196 million yuan ($29.2 million) in the first quarter of 2026, up about 49% year-over-year. It swung to a profit of 7.76 million yuan during the latest three-month period, reversing a loss of 6.67 million yuan a year earlier.

The company plans to use 65% of the IPO proceeds to enhance its R&D capabilities. Another 25% will go to upgrading its manufacturing capabilities, with the remaining 10% earmarked for general working capital.

By Lau Chi Hang

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AI technology company Nuobikan Artificial Intelligence Technology (Chengdu) Co. Ltd. (2635.HK) said on Tuesday it plans to place 16.49 million new shares, representing about 4.17% of its enlarged share capital. The placement price of HK$8.19 per share represents a 13.61% discount to Monday’s closing price of HK$9.48. The company expects to raise net proceeds of HK$131 million ($17 million).

Nuobikan plans to use 40% of the proceeds to develop AI operations and maintenance technology for large infrastructure projects, including railways, petrochemical facilities and airports. It will use another 20% for overseas expansion, 20% for potential acquisitions and the remaining 20% for working capital.

Nuobikan listed last December at HK$80 per share, raising net proceeds of about HK$257 million. It had used about HK$160 million of that by the end of August, leaving about HK$97 million unspent.

It made a 10-for-1 share split in March and was included in the Hong Kong Stock Connect program in April, making its stock accessible to Mainland-based investors. Its shares subsequently climbed as high as HK$83.20 on a post-split basis, more than 10 times the split-adjusted IPO price, before falling sharply. The stock is now down nearly 90% from that peak. It opened lower Tuesday and traded at HK$8.75 by the midday break, down 7.7% and hitting a new 52-week low.

By Lee Shih Ta

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Shares of new materials maker Red Avenue New Materials Group Co. Ltd. (9607.HK; 603650.SH) fell in their trading debut on Tuesday, as the company was one of four new listings on the Hong Kong Stock Exchange ahead of the Oct. 1 National Day holiday. Red Avenue’s shares closed at HK$40.14 by the midday break, down 8.8% from their IPO price of HK$44.

The company sold 68.1 million Hong Kong-listed H-shares, raising net proceeds of about HK$2.9 billion ($370 million). The Hong Kong portion of the listing for local investors was about 2.4 times oversubscribed, while the international portion was 1.75 times oversubscribed. Eight cornerstone investors bought 22.6 million shares, or about a third of the shares on offer.

Red Avenue’s three main product areas comprise rubber additives for tires, electronic materials and fully biodegradable materials. Its revenue rose 29% in the first half of this year to 2.13 billion yuan ($317 million) from 1.65 billion yuan a year earlier. Rubber additives accounted for 61.9% of total revenue in the latest six-month period, down from 70% a year earlier. Electronic materials rose to 32.5% of revenue in the latest period from 26.7% a year earlier, while fully biodegradable materials rose to 5.6% of revenue from 3.3%.

The company recorded a profit of 389 million yuan in the first half of the year, up 10.8% from 351 million yuan a year earlier.

By Doug Young   

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Printed circuit board (PCB) manufacturer Shenzhen Kinwong Electronic Co. Ltd. (3228.HK; 603228.SH) opened 7% lower in its Hong Kong trading debut on Tuesday, but then reversed course to close up 9.3% at HK$76.40 by the midday break.

The company sold 72.9 million shares for HK$69.88 each, raising net proceeds of nearly HK$4.96 billion ($636 million). The public offering for local investors was oversubscribed by nearly 93 times, while the international offering was oversubscribed by 9.6 times. A total of 14 cornerstone investors subscribed for 34.79 million shares, accounting for 47.69% of the offering.

Kinwong Electronic is the world's largest automotive electronic PCB supplier with 10.6% of the market, based on 2025 revenue. In the broader global market, it ranks 11th with 2.5% share.

The company reported its revenue rose 18% year-over-year to 5.34 billion yuan in the first four months of this year. But its profit over that period declined 25.3% to 317 million yuan.

By Lau Chi Hang

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NEV brand ZO Future Group (2309.HK) said on Friday it expects to report a profit of up to HK$120 million ($15.3 million) for its fiscal year through June, reversing a loss of HK$314 million in the previous year. It attributed the return to profitability to a one-time gain of HK$357.8 million from the sale of a subsidiary.

ZO Future previously reported it was profitable in the six months to last December, the first half of its fiscal year, but only thanks to gains from offloading its debt-laden Birmingham City Football Club. Since then the company has pivoted to new energy vehicles (NEV). That business lost HK$49.3 million in the six months to December, more than double the HK$20.4 million it lost a year earlier.

ZO Future’s stock rose 1.2% on Monday to close at HK$2.10. The stock is down 1.4% this year.

By Doug Young

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Electric vehicle (EV) maker Nio Inc. (NIO.US; 9866.HK) announced on Monday that it has entered into definitive agreements with subsidiaries of Zhejiang Geely Holding Group Co. Ltd. covering the battery swapping and charging businesses. Upon completion, a Geely Holding subsidiary will own 30% of Nio Power.

Under the agreements, the Geely Holding subsidiary will contribute its entire stake in Yiyi Internet Technology (Chongqing) Co. Ltd., which provides battery swapping services for commercial vehicles, plus 640 million yuan ($95 million) in cash to subscribe for newly issued shares in Nio Energy Investment (Hubei) Co. Ltd., also known as Nio Power.

After completion, Nio Holding Co. Ltd., known as Nio China, will retain a controlling 63.6% stake in Nio Power, while an existing investor will hold the remaining 6.4%. The deal values Nio Power at approximately 16 billion yuan after the investment.

In a concurrent transaction, Nio China will subscribe for newly issued shares representing 10% of Zhejiang Haohan Energy Technology Co. Ltd., Geely Holding’s charging business. Haohan Energy will use the cash proceeds to buy certain charging assets from Nio. The companies have also drawn up preliminary plans to provide battery swapping technology and services for consumer vehicles and commercial mobility businesses affiliated with Geely Holding, subject to further discussions.

Nio said the transactions reflected industry recognition of its battery swapping technology, network and operating capabilities. It expects the collaboration to encourage wider adoption of battery swapping and support the growth of EV use.

Following the announcement, Nio’s shares opened higher on Monday in Hong Kong and traded at HK$28.44 by the midday break, up 1.35%. The stock is down 30.5% year to date. Shares of Geely Automobile (0175.HK), a separately listed company within the Geely group, rose 1.79% in morning trading to HK$15.88 and are down 11.2% year to date.

By Lee Shih Ta

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Solar and wind farm operator Xinyi Energy Holdings Ltd.(3868.HK) said on Sunday that it will spin off its XYE New Energy Fund for a separate listing on the Shenzhen Stock Exchange. The company submitted its application to the China Securities Regulatory Commission and the Shenzhen Stock Exchange last Monday, and the latter formally accepted the application.

The fund includes two utility-scale ground-mounted solar farms, one in the city of Wuhu and the other in the city of Lu’an, both in East China’s Anhui province. The pair of projects generated combined revenue of 40.42 million yuan ($6.02 million) and a net profit of 8.44 million yuan in the first quarter of this year.

The company noted that selling the projects will allow it to quickly monetize their economic value. Moving forward, Xinyi Energy can also generate recurring income by providing operation and management services.

The anticipated spinoff is expected to yield 1.62 billion yuan. Xinyi will use funds from the spinoff for new investment opportunities and general working capital, and also for construction of real estate projects

Shares of Xinyi Energy opened up 0.6% at HK$0.79 on Monday. The stock is down over 40% from its 52-week high.

By Lau Chi Hang

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The tie-up gives the dual -listed memory storage specialist a larger foothold in the emerging market for on-device AI, as its H-shares could soon qualify for the Stock Connect program

By Teri Yu

Memory products maker Shenzhen Longsys Electronics Co., Ltd. (9976.HK; 301308.SZ) said it has formed a partnership to run complex AI agent workflows directly on smartphones with U.S. chip giant Qualcomm, AI foundational model developer StepFun and on-device AI agent software provider InfrisAI, in a strategic move into the on-device AI market.

The partnership, unveiled this week during Qualcomm’s Snapdragon Summit 2026 in Hawaii, adapts StepFun’s StepEdge-Omni 30B-MoE model for Qualcomm’s sixth-generation Snapdragon 8 Elite mobile platform.

Longsys, which designs and sells memory storage products under brands including FORESEE and Lexar, is supplying the storage-management technology needed for smartphones to handle the large volumes of data needed to run AI models locally on devices rather than relying on the cloud.

The collaboration was demonstrated on a Qualcomm reference handset and showed an AI assistant carrying out multi-step office tasks on the device, from interpreting emails and planning an itinerary to syncing calendars.

The step highlights a widening effort to make AI features faster, more private and less dependent on remote computing infrastructure. While chip designers have focused on adding more computing power to handsets, Longsys is seeking to show that storage, usually treated as a largely standardized component, can also play a role.

Large models running on phones must continuously retrieve model parameters, temporary data and conversation history, placing pressure not only on processors and memory but also on device storage. Longsys said its solution allows model weights to be loaded more efficiently from flash storage, helping to reduce the amount of working memory that must remain occupied during inference.

Its system combines an intelligent storage-management engine, branded iSA, with UFS 4.1 storage chips using a controller developed by its Wisemem affiliate.

The product could give Longsys an edge as handset makers attempt to deploy increasingly sophisticated AI agents on devices. Instead of relying solely on more expensive processors or more DRAM, manufacturers may be able to improve performance through closer coordination between computing and storage.

For Longsys, the venture provides a high-profile showcase for technology it has already tested in AI personal computers and mobile workstations. The move could help differentiate Longsys in a crowded storage market where companies typically compete on price, capacity and transmission speed.

The partnership also comes just weeks after Longsys completed its Hong Kong IPO to complement its existing listing in Shenzhen, raising net proceeds of HK$6.8 billion ($867 million) in the process. The Hong Kong offer price was about 40% below Longsys’ A-share closing price at the time of pricing, underscoring the valuation gap that can arise when companies listed on Mainland markets seek to tap Hong Kong’s more international investor pool.

Longsys’ Hong Kong-listed shares are currently within their stabilization period. After that period expires, the shares will be eligible for review for inclusion in the Stock Connect program making them accessible to Mainland China-based buyers. That may bring a new pool of investors familiar with Longsys’ business to the Hong Kong stock and could reduce the big valuation gap between the two listings.

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Fabless integrated circuit designer Montage Technology Co. Ltd. (6809.HK; 688008.SH) said on Thursday it was notified that shareholder WLT Partners L.P. intends to reduce its holdings in the company's Shanghai-listed shares. The planned share reduction will involve up to 2.33 million shares, representing approximately 0.19% of the company's total share capital.

The share reduction will take place within a three-month period starting Nov. 2, with the final selling price determined by market rates.

WLT Partners L.P. currently holds 45 million shares of Montage Technology. Combined with the 25.68 million shares held by its affiliated Shanghai Rongying Enterprise, the two parties collectively own 5.79% of the company.

The company's Shanghai-listed shares fell 4% to 214.5 yuan on Thursday, while its Hong Kong shares opened nearly flat at HK$300 on Friday. The Hong Kong stock has surged 180% from its listing price this year.

By Lau Chi Hang

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Leading brokerage Citic Securities Co. Ltd. (6030.HK; 600030.SH) has set the stage for a leadership transition that will see the retirement of veteran Chairman Zhang Youjun, financial media Caixin reported on Wednesday.

Zou Yingguang, who currently serves as Citic Securities’ president and deputy party secretary, was named as its Communist Party secretary in an internal document on Tuesday, according to Caixin, citing knowledgeable sources. The party secretary typically also acts as a company’s chairman at most major state-owned enterprises, meaning Zou is likely to soon be named as Citic Securities’ new chairman as well.

Zhang, 61, joined the brokerage at its inception in 1995, and took over as party secretary and chairman in early 2016. Zou, 55, is a former surgeon who later transitioned into finance. He joined Citic Securities in 2017, and briefly left in 2023 before returning in 2024.

Citic Securities Hong Kong-listed stock fell 3.5% on Thursday to close at HK$24.44, while its Shanghai-listed shares fell 1.9% to close at 26.29 yuan. Both stocks are down around 10% this year.

By Doug Young

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Packaging paperboard products maker Nine Dragons Paper (Holdings) Ltd. (2689.HK) announced on Wednesday that its profit rose 102.6% year-on-year to 3.58 billion yuan ($534 million) for its fiscal year through June.

The company’s revenue for the year rose 18.6% to 75 billion yuan, driven by a 14% increase in sales volume to 24.5 million tons and a 4% rise in the average selling price. Its gross profit grew 50.8% to 10.93 billion yuan, while its gross margin rose to 14.6% from 11.5%.

The company attributed the strong profit growth mainly to cost advantages from the vertical integration of its raw-material supply chain, as well as a higher proportion of premium products that lifted its average selling price. Packaging paper accounted for 88.1% of total revenue, with the remaining 11.9% coming from printing and writing paper, high-value specialty paper and pulp products.

Nine Dragons produces linerboard, high-performance corrugating medium, white cardboard and printing and writing paper, and is one of China’s leading packaging paper producers. The company had total annual design capacity of about 24.8 million tons for papermaking and about 5.4 million tons for wood pulp at the end of June.

The company’s shares opened higher on Thursday and traded at HK$6.05 by the midday break, up 2.02%. The stock is down about 14.9% over the past six months.

By Lee Shih Ta

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The city of Hangzhou has proposed repealing a local policy providing financial support for the low-altitude economy, potentially ending a program originally set to expire at the end of 2027, the South China Morning Post reported on Monday. The change would come after a small plane crashed into Beijing’s tallest skyscraper in June, prompting Beijing last week to establish a 600-square-kilometer no-fly zone for small aircraft over the Chinese capital.

Hangzhou, a tech hub that is home to e-commerce and cloud computing giant Alibaba, first rolled out its policy to support the local low-altitude economy in 2024. The policy offered various types of financial incentives for things like enterprise establishment and infrastructure buildouts for companies developing low altitude-related products and services like tourist flights, aerial surveys and deliveries using drones and other aircraft.

But in a recent posting on its website, the Hangzhou Municipal Bureau of Finance said that “following internal review and consultations with relevant government departments,” it determined that “the document has grounds for repeal,” according to the South China Morning post report. A monthlong consultation period on the proposal will end on Oct. 7.

Low-altitude economy proponents said Hangzhou’s repeal of financial incentives may be part of a broader national push to unify standards and eliminate unfair advantages in individual markets, and shouldn’t necessarily be viewed as a setback.

Shares of EHang (EH.US), a maker of electric vertical take-off and landing (eVTOL) aircraft that is often seen as a barometer of sentiment towards the low altitude economy, have lost about a third of their value since the initial light aircraft crash in June.

By Doug Young

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Kanzhun Ltd. (BZ.US; 2076.HK), operator of China’s leading online recruitment platform Boss Zhipin, disclosed that its founder and Chairman Zhao Peng sold down some of his company shares on Monday for about HK$863 million ($110 million).

According to a filing submitted to the U.S. Securities and Exchange Commission (SEC), Zhao-controlled Techwolf Ltd. sold 15.17 million Class A ordinary shares in a block trade on the Hong Kong Stock Exchange for HK$56.90 per share, representing a discount of about 2.7% to that day’s closing price.

The transaction included 4.46 million existing Class A shares and 10.7 million Class B shares that were converted into Class A shares on a one-for-one basis at the time of the sale. Bloomberg, citing people familiar with the matter, reported that Zhao sold the shares to pay a new Chinese tax on offshore income, although the company has not publicly disclosed the reason for the sale.

Separately, the company announced on Tuesday that it would pay an annual cash dividend of $0.255 per ordinary share, or $0.51 per American depositary share (ADS), for a total payout of approximately $230 million. Starting in 2026, the company said it also plans to allocate at least 50% of its adjusted net income from the preceding year to dividends and share repurchases for three consecutive years.

Kanzhun’s Hong Kong-listed shares closed down 3.59% at HK$56.35 on Tuesday. The stock is down about 28% this year.

By Lee Shih Ta

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Alibaba on Monday pared its stake in logistics firm ZTO Express (Cayman) Inc. (2057.HK; ZTO.US), offloading 25 million American depositary shares (ADS) at $20.02 apiece in a transaction valued at $500 million.

The marketed price range for the sale was $20.02 to $20.22, according to foreign media reports, with the sale ultimately pricing at the bottom end. The final price represented a 4.5% discount to ZTO’s Friday closing price of $20.96.

ZTO's U.S.-listed ADSs fell 7% on Monday, the day of the Alibaba sale, before staging a 2% rebound on Tuesday. The company's Hong Kong-listed shares also shed 5% on Tuesday. The stock is down more than 20% from its peak in the past year.

By Lau Chi Hang

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Robot vacuum spatial perception component maker Shenzhen Camsense Technologies Co. Ltd. (6802.HK) launched its Hong Kong IPO on Tuesday, offering shares at HK$58.85 each. The company expects to raise net proceeds of approximately HK$615 million ($78 million), with trading scheduled to begin on Sept. 30.

Camsense is offering 11.59 million shares, with subscriptions closing at noon on Sept. 25. The IPO has attracted two cornerstone investors, BYD-owned Golden Link and Taiwan ZMAX Optec, which have collectively agreed to subscribe for a combined HK$110 million worth of shares, or about 16.13% of the offering. The company will use the funds mainly for product R&D, technology platform development, capacity expansion and general working capital.

Camsense produces LiDAR products and line laser sensors used for navigation, positioning and obstacle avoidance in robot vacuum cleaners. It ranked first in China’s robot vacuum spatial perception product market by revenue in 2025. Its revenue rose 41.6% last year to 614 million yuan ($91.7 million), while it swung to a net profit of 2.2 million yuan. Its first-quarter revenue increased another 48.7% to 196 million yuan, as its net profit reached 7.76 million yuan. Products used in robot vacuum cleaners accounted for 98.4% of its revenue.

By Lee Shih Ta

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Online game operator Boyaa Interactive International Ltd. (0434.HK) said on Monday it has continued to acquire bitcoin, including its acquisition of 152 units of the virtual currency over the past week for HK$90.63 million ($11.62 million), at an average cost of $75,899 per coin.

The purchases bring Boyaa’s current bitcoin holdings to 4,468, with an average cost of approximately $68,543 per coin. Bitcoin prices have trended higher recently, reaching $85,000 per coin.

Boyaa said that it began to actively position itself within the Web3 gaming ecosystem in 2024. In addition to significant investments in Web3 games and infrastructure R&D, the company has also acquired related strategic assets, mostly bitcoin. Boyaa says it has created a business framework of “gaming applications + ecosystem development + value storage.”

Shares of Boyaa opened up 4% at HK$3.245 on Tuesday. The stock is down nearly 60% from its 52-week high.

By Lau Chi Hang

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Online loan facilitator Qfin Holdings Inc. (QFIN.US; 3660.HK) said on Sunday that Wu Haisheng will resign as the company’s CEO to focus on developing its international business. In his place, the company named chief risk officer Zheng Yan as its new CEO.

Zheng has been a vice president of Qfin since 2017, and became its chief risk officer in 2020. His positions before that included work in the risk management department of China Merchants Bank.

Wu’s focus on development of the international business comes as private fintech lenders and loan facilitators like Qfin face an increasingly difficult environment in their home China market. In addition to tightening regulation, all the companies are facing difficulty maintaining their loan quality in a slowing Chinese economy.

As that happens, Qfin’s loan facilitation and origination volume sank 25% year-on-year to 63.4 billion yuan ($9.46 billion) in the second quarter, as its total outstanding loan balance sank 23% to 108 billion yuan.   

Qfin’s stock was unchanged in Monday pre-market trading in New York after it announced the CEO change. The stock is down nearly 60% this year, and currently trades near an all-time low.

By Doug Young

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AI infrastructure software provider Transwarp Technology (Shanghai) Co. Ltd. (6727.HK) opened flat in its Hong Kong trading debut on Monday, then edged slightly lower to end the morning session at HK$47.82, down 2.4% from its listing price.

The company sold 14.01 million shares for HK$49 each, raising net proceeds of nearly HK$630 million ($80.77 million). The public offering for local investors was oversubscribed by nearly 73 times, while the international offering was oversubscribed by 0.42 times. Two cornerstone investors subscribed for 1.51 million shares, accounting for 10.75% of the offering.

Transwarp's revenue rose 20.6% year-over-year to 447 million yuan in 2025, while its loss narrowed by 28.6% to 245 million yuan. The company recorded revenue of 174 million yuan in the first half of this year, up 14.1% year-over-year, while its loss narrowed to 113 million yuan from 143 million yuan a year earlier.

The company will use 30% of the IPO proceeds for R&D, 20% to upgrade and expand its products and solutions, 15% to strengthen its sales channels and team building, 5% to enhance its commercialization capabilities and brand influence, and 20% on strategic investments. The remaining 10% will be used as working capital.

By Lau Chi Hang

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Drug seller 111 Inc. (YI.US) on Thursday announced its revenue contracted and its loss widened in the second quarter as it transitions to a new asset-light business model. The same day, it also separately disclosed it received a management-led offer to privatize the company.

111 reported second-quarter revenue of 2.3 billion yuan ($343 million), down 28.3% from 3.2 billion yuan a year earlier. Product sales for the company’s core B2B business fell 28.9% year-on-year to 2.22 billion yuan, while product sales for its smaller B2C business fell 7.3% to 55.2 million yuan.

The company reported a net loss of 39.1 million yuan in the second quarter, widening from a 19.5 million yuan loss a year earlier.

In a separate announcement, the company said it received a proposal from a group including its two founders and co-chairmen, Yu Gang and Liu Junling, to take the company private. The group offered $4.52 per American depositary share (ADS), representing a 33.7% premium to its closing price of $3.38 the previous day.

The company’s shares rose 7.3% on Thursday to close at $3.54, still 21.7% below the buyout price.

111 went public in 2018 at a price of $14 per ADS, hoping to lure investors with the big potential of China’s drug market. But its positioning as a middleman drug seller resulted in very low margins and annual losses every year since its listing, and investors never embraced the stock.  

By Doug Young

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Pearlescent pigment maker Global New Material International Holdings Ltd. (6616.HK) said on Friday it plans to issue Hong Kong dollar-settled 3.25% convertible bonds with an aggregate principal amount of 1.3 billion yuan ($194 million), due in September 2027. The initial conversion price is HK$10.93 per share, representing a 15.05% premium to the Sept. 17 closing price of HK$9.50.

Assuming full conversion, the bonds would be exchanged for about 139.1 million shares, representing 10% of the company’s enlarged share capital. Global New Material expects to receive net proceeds of about 1.28 billion yuan, equivalent to about HK$1.5 billion ($191 million). It plans to use 95% of the proceeds to refinance existing indebtedness, including funding a concurrent repurchase of existing convertible bonds. The remaining 5% is earmarked for working capital and general corporate purposes.

The company plans to repurchase its 4.25% convertible bonds issued in January this year at 103% of their principal amount plus accrued interest. As of the announcement date, eligible bondholders had committed to sell about HK$990 million in aggregate principal of those bonds, leaving about HK$10 million outstanding.

Global New Material’s shares opened higher on Friday and traded at HK$9.565 by the midday break, up 0.68%. The stock is up 17.6% over the past six months.

By Lee Shih Ta

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E-commerce platform operator Quantgroup Holding Ltd. (2685.HK) said on Wednesday it plans to place up to 48.53 million new shares at HK$3.40 each, representing a 15.32% discount to the previous day’s closing price of HK$4.015. The new shares will account for about 8.54% of its enlarged issued share capital, with net proceeds expected to total about HK$162.6 million ($20.7 million).

The company plans to use 55% of the proceeds for its e-commerce business, including traffic acquisition, user operations and supply-chain payments. Another 15% will go toward R&D, with the remaining 30% for general working capital. The company said proceeds from its IPO latest last year were relatively limited, and the latest placement would help replenish its working capital and strengthen its financial position.

Quantgroup’s revenue fell 14% year-on-year to 437 million yuan in the first half of this year, while its net profit plunged 78.5% to 29.52 million yuan. Its cash stood at about 123 million yuan at the end of the period, down from 524 million yuan at the end of last year, while its net cash used in operating activities totaled 423 million yuan.

The company completed another new share placement in July, raising about HK$59.7 million. About HK$56.7 million of that remained unused at the end of August.

Quantgroup’s shares opened lower on Thursday and traded at HK$3.935 by the midday break, down 1.99%. The stock has fallen 85% so far this year.

By Lee Shih Ta

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New energy vehicle (NEV) maker Seres Group Co. Ltd. (9927.HK; 601127.SH) has taken full control of its Aito brand from partner Huawei, the pair announced on Tuesday. The move sharply curtails Huawei’s influence in an alliance dating back to 2021, when it signed up Seres as the first partner for its new smart car business.

The shift will end Huawei’s dominant role in the Aito brand’s product design, development, marketing and sales, financial media Caixin reported. The partnership was one of the most successful for Huawei under its Harmony Intelligent Mobility Alliance (HIMA), which saw the company provide smart car design and technology services to other brand owners.

Other brands operating under the alliance include Chery Auto and SAIC.   

But those brands have faced growing profitability challenges while working within Huawei’s smartcar ecosystem. Despite the change, Seres will remain a member of HIMA, with Huawei transitioning to a supporting role. That will give Seres more flexibility to choose its own component suppliers, which could help to reduce its costs, a source familiar with the matter told Caixin.

Seres reported its revenue fell 7.9% in the first half of 2026 to 57.4 billion yuan ($8.55 billion) from 62.4 billion yuan a year earlier. It swung into the red with a loss of 1.72 billion yuan in the latest six-month period from a profit of 2.94 billion yuan a year earlier.

Seres’ Hong Kong listed stock was up 4.3% at HK$34.94 in late Thursday morning trading, while its Shanghai-listed shares were up 3.7% at 47.18 yuan. Both stocks are down more than 60% this year.

By Doug Young

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Cancer treatment maker Legend Biotech Corp. (LEGN.US) announced its appointment of a new CEO on Tuesday, a month and a half after the sudden departure of its longtime chief executive caused its shares to tumble.

The company named Ingrid Zhang as its new chief executive, replacing Alan Bash, who was filling the position on an interim basis after the late July resignation of Huang Ying. Before his departure, Huang had served as Legend’s CEO since September 2020. Bash is president of the unit that oversees the company’s blockbuster cancer treatment, Carvykti.

Zhang most recently served as chief commercial officer for the international division of drug giant Novartis (NOVN.SW). Before that she held leadership positions at other major drug companies, including AstraZeneca (AZN.L) and Pfizer (PFE.US).

Legend Biotech’s revenue rose 52% to $387.5 million in the second quarter from $255.1 million a year earlier. It recorded a net profit of $33.2 million in the latest three-month period, reversing a loss of $125.4 million a year earlier.

Legend Biotech’s stock fell 4.6% to close at $17.67 on Tuesday after the announcement. The stock is down about 20% since the company announced Huang Ying’s departure in July.

By Doug Young

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Online travel agent Trip.com Group Ltd. (9961.HK; TCOM.US) said on Wednesday its second-quarter revenue rose 6% year-on-year to 15.66 billion yuan ($2.3 billion). But it posted a net loss of 2.46 billion yuan for the period, reversing a net profit of 4.85 billion yuan in the year-ago period.

The company attributed its revenue growth mainly to rebounding travel demand, while its swing to the red owed to a 5.18 billion yuan antitrust penalty imposed by China’s State Administration for Market Regulation. Excluding the penalty, the company earned second-quarter net income of 2.7 billion yuan.

By segment, the company’s accommodation reservation revenue rose 6% year-on-year to 6.58 billion yuan, while transportation ticketing revenue fell 1% to 5.35 billion yuan. Package-tour revenue increased 8% to 1.16 billion yuan, and corporate travel revenue grew 11% to 771 million yuan. Revenue from Trip.com’s international platform rose more than 50% in the quarter, while inbound travel revenue grew at a high double-digit rate.

For the first half of the year, Trip.com reported revenue of 31.87 billion yuan, up about 11.2% year-on-year, while its net income was 41 million yuan. On a non-GAAP basis, its first-half net income was 8.7 billion yuan, compared with 9.2 billion yuan a year earlier.

Trip.com’s stock opened lower on Wednesday in Hong Kong, but later reversed course and closed at HK$319.4 by the midday break, up 2.63%. The stock is down about 42% this year.

By Lee Shih Ta

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Surgical robot maker Shenzhen Edge Medical Co. Ltd. (2675.HK) announced last Friday that it is exploring a second listing on China’s domestic A-share markets in Shanghai and Shenzhen, just months after listing in Hong Kong. The company said it has appointed a pre-listing tutoring institution and submitted its registration for listing guidance on Sept. 11.

Edge Medical said the proposed A-share listing remains subject to market conditions, as well as approvals from its board, shareholders and regulators.

Shenzhen Edge Medical listed in Hong Kong in January this year. Its revenue rose 113.8% year-on-year to 319 million yuan ($48 million) in the first half of the year, mainly driven by increased sales of its surgical robots. Its loss for the six-month period narrowed 78.4% to 19.25 million yuan from 89.1 million yuan a year earlier.

Following the announcement, Shenzhen Edge Medical shares fell 7.5% on Monday to close at HK$34.24, about 21% below the company’s IPO price of HK$43.24.

By Lee Shih Ta

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Digital invoice and tax services provider Baiwang Co. Ltd. (6657.HK) said on Monday it has agreed to form a joint venture engaged in enterprise credit technology and services with three other partners.

The venture will have registered capital of 15 million yuan ($2.23 million), with Baiwang contributing 3 million yuan for a 20% stake. Qichacha Technology will provide 7.65 million yuan for 51% of the venture, while Yancheng Hongqiao and Suzhou Baisheng will hold 13.3% and 15.7%, respectively.

The venture, to be based in Shanghai or Suzhou, will initially engage in a wide range of data-and AI-related services, including data processing and storage, as well as AI application software development.

Baiwang’s revenue fell 14.4% year-on-year to 348 million yuan in the first half of this year. It reported a net loss of 43.8 million yuan for the six-month period, reversing a profit of 3.6 million yuan in the year-ago period.

Baiwang’s stock opened flat on Tuesday after the announcement, but then moved higher during the morning to close up 7.6% at HK$12.54 by the midday break. The stock is down 37.3% this year.

By Doug Young

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Optical communications product maker Ligent Technologies Inc. (9856.HK) launched its Hong Kong IPO on Monday, aiming to raise about HK$5.45 billion ($695 million) by selling 172 million shares to investors for HK$32.96 each. Subscriptions for the offering will close on Sept. 17, with a trading debut set for Sept. 22.

Founded in the early 2000s as an optical communications company, Ligent’s revenue rose 27.7% in the first half of 2026 to 5.39 billion yuan ($803 million) from 4.22 billion yuan a year earlier. About 70% of its revenue comes from datacom transceivers. Its profit rose 29.6% to 661 million yuan in the first half of this year from 510 million yuan a year earlier.

Nearly 30 cornerstone investors, including Primavera, Mirae Asset Securities and Barings, have agreed to collectively buy about 47% of the shares being sold.

By Doug Young

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AI large-model developer Z.AI Co. Ltd. (2513.HK), also known as Zhipu, announced on Sunday it plans to concurrently place new shares and issue convertible bonds to raise combined net proceeds of up to about HK$39.27 billion ($5 billion), mainly to fund model development, computing infrastructure and business expansion.

The company plans to place up to 22 million new Hong Kong-listed H shares at HK$714 each, representing a 9.96% discount to last Friday’s closing price of HK$793, generating net proceeds of about HK$15.66 billion. It will also issue 20.14 billion yuan ($3 billion) of U.S. dollar-settled zero-coupon convertible bonds due in 2027, with an initial conversion price of HK$892.50 per share, raising net proceeds of about HK$23.61 billion.

Z.AI will use about 60% of the proceeds for R&D of next-generation GLM foundation models, training and inference computing resources and related infrastructure; 15% for business expansion, strategic investments and potential acquisitions; and 25% for working capital and other general corporate purposes.

This marks Z.AI’s second share placement since its IPO earlier this year. The company placed 19.78 million shares at HK$1,588 each in July, raising net proceeds of HK$31.37 billion. As of the end of August, it had used HK$10.95 billion of that, leaving HK$20.42 billion unutilized. Including the latest placement, the two placements will raise about HK$47.04 billion in net proceeds.

Z.AI’s revenue surged 400% year-on-year to 954 million yuan in the first half of this year, while it posted a loss of 2.07 billion yuan for the period. It had 3.99 billion yuan in cash and cash equivalents at the end of June.

The company’s shares opened lower on Monday and were trading at HK$735.5 at the midday break, down 7.25%.

By Lee Shih Ta

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Cancer testing company Burning Rock Biotech Ltd. (BNR.US) on Thursday reported its revenue fell 9.3% year-on-year to 135 million yuan ($20.1 million) in the second quarter, as an increase for its in-hospital business failed to offset declines for its central laboratory and R&D businesses.

The company’s central laboratory business fell 10% year-on-year to 36.8 million yuan, accounting for about 27% of its total revenue. Its in-hospital business rose 7.4% to 67.1 million yuan, accounting for about half of its revenue. The remainder came from pharma R&D services, which fell 31.8% year-on-year to 30.8 million yuan.

The company’s gross margin fell slightly to 72.6% in the latest reporting period from 72.8% a year earlier, while its operating expenses fell 3.2% to 116 million yuan. On its bottom line, Burning Rock’s net loss widened to 18.4 million yuan from 9.7 million yuan a year earlier.

Burning Rock’s stock fell 3.1% on Thursday to close at $11.62 after the results were announced. The stock is up 31% over the last 52 weeks.

By Doug Young

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Camera module maker Q Technology (Group) Co. Ltd. (1478.HK) announced on Thursday that sales of its camera modules for mobile products fell 14.9% year-on-year to 37.85 million units in August. Sales of its biological recognition modules for the month totaled about 13.31 million units, up 25% from July but down 35.3% from a year earlier. Overall sales of mobile products dropped 21.3% year-on-year to about 51.15 million units.

The company blamed the year-on-year decline in mobile product sales on weak smartphone demand amid rising memory prices. By comparison, automotive and internet of things (IoT) products performed better, with August sales reaching about 890,000 units and 2.37 million units, respectively, up 33% and 20.7% year-on-year. The gains were mainly driven by a significant increase in sales of LiDAR products used in smart vehicles and embodied robots, as well as satisfactory sales of products used in handheld imaging terminals.

Q Technology sold about 423.5 million units of mobile products in the first eight months of the year, 5.72 million units of automotive products and 12.94 million units of IoT products. Its India unit sold about 10.3 million camera modules in August, up 130.4% year-on-year, while sales of biological recognition modules fell 39.4% to about 1.69 million units.

Shares of Q Technology opened lower on Friday and traded at HK$5.46 by the midday break, down 2.06%. The stock is down about 34% over the past six months.

By Lee Shih Ta

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AI infrastructure software provider Transwarp Technology (Shanghai) Co. Ltd. (6727.HK) launched its public offering on Friday, aiming to sell about 14 million shares for HK$49 to HK$61 apiece. The listing would raise up to HK$850 million ($109 million) at the top of that range, with the subscriptions closing on Sept. 16 and a trading debut set for Sept. 21.

Transwarp supplies corporate and government clients with AI and big data infrastructure software products and related services. Measured by revenue, the company is China's fifth-largest provider of AI infrastructure software, capturing 2.7% of the market last year. It currently serves more than 1,800 clients.

The company generated 447 million yuan ($66.6 million) in revenue last year, up 20.6% from a year earlier, though it still posted a loss of 245 million yuan. Its revenue climbed 26.5% year-over-year in the first quarter of this year to 81.24 million yuan, as its loss for the period narrowed by 33% to 56 million yuan.

By Lau Chi Hang

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Restaurant operator Haidilao International Holding Ltd. (6862.HK) said on Wednesday that its founder and Chairman Zhang Yong and his wife Shu Ping sold down their holdings in the company to raise cash for their own needs.

The pair, who owned about half of Haidilao’s shares before the sale, sold 259 million shares, equal to 4.65% of the company’s share capital, through a block trade at a price of HK$10.62 per share, according to the announcement. The actual shares were sold by ZY NP Ltd. and SP NP Ltd., which are both controlled by Zhang and Su.

Based on the information given, the share sale would have raised about HK$2.75 billion ($351 million). Following the sale, Zhang and Shu’s stake in the company dropped to about 45.5%, according to the announcement.

Haidilao’s stock fell 4.1% to close at HK$9.915 on Thursday. The stock is down about 30% this year.

By Doug Young

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Apparel brand JNBY Design Ltd. (3306.HK) on Wednesday reported its revenue rose 9% year-over-year to 6.05 billion yuan ($901 million) in its fiscal year through June 30, as its profit rose 11.7% to 997 million yuan. Its gross margin for the year stood at 66.6%, up by 1 percentage point from a year earlier.

JNBY's global retail network totaled 2,118 stores by the end of the latest fiscal year, a slight increase of one store from the previous year, while same-store sales grew 2.4% year-over-year. Revenue from its flagship JNBY brand rose 7.6% from a year earlier to 3.24 billion yuan.

Going forward, the company said it will further optimize its portfolio of designer brands and product categories through in-house incubation and acquisitions. Meanwhile, the company will keep leveraging an internet-driven mindset and AI technology to further bolster its retail networks both domestically and abroad.

Shares of JNBY opened up 7.2% at HK$21 on Thursday. The stock is down 8% from its 52-week high.

By Lau Chi Hang

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Chinese cloud services provider Beijing Xunzhong Communication Technology Co. Ltd. (2597.HK) said on Thursday it plans to place 11.19 million new shares at HK$28.20 apiece, representing a 19.43% discount to Wednesday’s closing price of HK$35. The placement is expected to raise net proceeds of about HK$314 million ($46.8 million), with the new shares representing about 8.42% of the company’s enlarged share capital.

Xunzhong plans to use about 90% of the proceeds to develop its newly established computing power operations business, including the purchase of AI training and inference servers, development of computing power platforms and products, procurement of flexible computing capacity, recruitment and market expansion. The remaining 10% will be used for general working capital.

Xunzhong Communications listed in Hong Kong in July last year at HK$13.55 per share, raising HK$367.5 million. As of the end of June, it had used 328.8 million yuan of the IPO proceeds, leaving only about 5.71 million yuan left.

The company’s revenue rose 19.1% year-on-year to 326 million yuan in the first half of this year, but its net profit fell 48.2% to 13.27 million yuan. Its gross margin declined by 1.62 percentage points to 20.13%. The company recorded a net operating cash outflow of 191 million yuan during the period, while its cash and cash equivalents stood at about 29.55 million yuan at the end of June.

Shares of the company opened higher on Thursday and were up 21.4% at HK$42.5 by the midday break.

By Lee Shih Ta

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The company’s core e-commerce profits grew faster than its revenue, while its Gap China unit showed sales momentum and value as a strategic testing ground

By Da Cheung

Baozun Inc. (BZUN.US; 9991.HK) reported sharply improved profitability in the second quarter, as stronger earnings from its core e-commerce business and continued growth at its brand-management unit prompted the company to raise its long-term profit target.

The company’s revenue rose 7.5% year-on-year to 2.74 billion yuan ($404 million) for the three months through June, while its non-GAAP operating profit climbed to 74.3 million yuan from 6.1 million yuan a year earlier.

The improvement was led by Baozun’s traditional e-commerce business, as the unit’s adjusted operating profit for the quarter more than doubled to 107.1 million yuan from 41.1 million yuan year-on-year, its strongest second-quarter result since 2022. Its e-commerce revenue rose by a more modest 4.6% to 2.3 billion yuan.

Baozun said the gap between profit and revenue growth reflects efforts to scale back its lower-margin distribution business and focus more on higher-value services and products.

Meanwhile, its newer brand management business became a more important growth contributor, as revenue from the unit rose 21.9% to 485.6 million yuan, led largely by its Gap China operation.

Baozun took over Gap’s Greater China business after agreeing to acquire it in 2022, expanding beyond its core e-commerce services for brand partners to directly managing merchandise, inventory, stores and marketing.

Gap China’s omni-channel same-store sales grew in the 20% range for a second consecutive quarter in the three months to June. That compares with 6.7% growth in Chinese clothing retail sales in the first half of 2026, suggesting Gap’s recent momentum has outperformed the broader market.

Gap China’s profitability has also improved. It recorded its first quarterly non-GAAP operating profit in the fourth quarter of 2025 and remained profitable on the same basis in the first quarter of 2026. Management has also set a target of full-year operating breakeven for 2026, signaling confidence in the brand’s longer-term operating trajectory.

Baozun said it is increasingly using Gap as a testing ground for tools and operating methods that could also benefit its core e-commerce business. The company says the two businesses can reinforce each other, with e-commerce capabilities supporting brand operations and lessons from direct brand management feeding back into services for other clients.

Management also says early AI and automation pilots are improving productivity. Baozun recently raised its 2028 annual non-GAAP operating-profit target by more than 27%, from 550 million yuan to at least 700 million yuan, citing better e-commerce margins, greater operating leverage in brand management and deeper cooperation between the two units.

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Insurance services provider Waterdrop Inc. (WDH.US) on Tuesday reported its revenue jumped 72.8% year-on-year to 1.45 billion yuan ($216 million) in the second quarter, driven by improvements in its risk assessment service capabilities and increased first-year premiums.

Revenue from the company’s core insurance services rose 80.5% year-on-year to 1.33 billion yuan from 739 million yuan. Within that total, revenue from technical services tripled to 488 million yuan from 161 million yuan a year earlier. The company’s smaller healthcare services, mostly fees from crowdfunding, fell 5.7% year-on-year to 63.6 million yuan.

But Waterdrop’s sales and marketing expenses more than tripled to 638 million in the latest quarter, equal to 44% of its revenue,  from 199 million yuan a year ago, when the figure was equal to 24% of revenue. As a result, the company’s net profit fell 10% to 126 million yuan from 140 million yuan a year earlier.

Waterdrop shares rose 4.9% to close at $1.07 on Tuesday after the results were announced. The stock is down about 41% over the last 52 weeks.

By Doug Young

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Property developer KWG Group Holdings Ltd. (1813.HK) said on Tuesday that presales by the company, its joint ventures and associates fell 73.6% year-on-year to 161 million yuan ($24 million) in August. Its presold gross floor area dropped 62.9% to about 9,200 square meters, underscoring continued weakness in China’s property market.

On the debt front, KWG said on Monday that its offshore debt restructuring was making further progress. As of Sept. 7, about 75.47% of its creditors had joined or agreed to join its restructuring agreement. The company also extended its basic consent fee deadline to Sept. 28 to give remaining creditors more time to complete internal approval procedures.

The company’s revenue fell 50.4% year-on-year to 1.88 billion yuan in the first half of this year, while its loss widened 24.5% to 2.56 billion yuan. Revenue from property development fell about 60% to 1.23 billion yuan, mainly due to a decline in delivered gross floor area.

The company’s shares opened flat on Wednesday and were unchanged at HK$0.096 by the midday break. The stock has fallen 35.57% so far this year.

By Lee Shih Ta

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Shares of robotics manufacturer Excelland Robotics (Wuxi) Co. Ltd. (3231.HK) opened 142% above their IPO price in their trading debut on Wednesday, and climbed through the morning session to end at HK$37.50 by the midday break, up 159%.

The company sold 45 million shares for HK$14.45 each, raising net proceeds of HK$577 million ($73.97 million). The public offering for local investors was 139 times oversubscribed. But the international placement, which typically goes mostly to global institutional investors, failed to be fully subscribed, with an overall subscription rate of about 94%. Two cornerstone investors subscribed to a total of 1.63 million shares, accounting for 3.63% of the total offering.

The company's revenue last year rose 19% to 318 million yuan ($47.4 million), while its net loss for the period narrowed 27% year-over-year to 110 million yuan. In the first quarter of this year, its revenue increased 5.7% from a year earlier to 76.51 million yuan. However, the company still recorded a loss of 31.22 million yuan for the three-month period, up 20% year-over-year.

By Lau Chi Hang

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Car sales in China fell 23.7% in August, as manufacturers continued to aggressively sell their vehicles abroad to offset the weakness at home. Chinese carmakers sold 1.55 million vehicles during the month domestically, Reuters reported, citing data published on Tuesday by the China Passenger Car Association.

Domestic sales of new energy vehicles (NEVs) fell 10.1% in August, accounting for 64.7% of cars sold domestically during the month.

Meanwhile, China’s passenger vehicle exports in August jumped 77.5% year-on-year to about 894,000 units, slowing from an 88.2% increase in July. Among major manufacturers, BYD (1211.HK; 002594.SZ) and Geely (0175.HK) both recorded record monthly car exports last month.

Chinese vehicle exports are expected to reach 12 million units this year, and continue growing to between 18 million and 20 million annually by 2030, according to the China Passenger Car Association.

By Doug Young

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Smart cockpit and connected-vehicle solutions provider Pateo Connect Technology (Shanghai) Corp. (2889.HK) announced on Tuesday it plans to place up to 4.89 million new shares to raise about HK$578 million ($74.6 million), in its third such placement this year.

The shares will be sold for HK$120.28 apiece, representing a 14.39% discount to the previous day’s closing price of HK$140.50. They will be purchased by at least six independent investors and represent about 5.57% of the company’s enlarged issued H-share capital.

Pateo plans to use 40% of the net proceeds for strategic mergers, acquisitions and investments in areas including AI, optical communications, chips and semiconductors. The remaining 60% will be used for working capital, share repurchases, repayment of bank debt and general corporate purposes.

The company raised combined net proceeds of about HK$495 million through a share subscription in May and a placement in June. Only about 5.58 million yuan of those proceeds remained unused as of the latest announcement date.

Pateo’s revenue rose 105.1% year-on-year to 2.23 billion yuan ($332 million) in the first half of the year, while its net loss widened 35.1% to 307 million yuan. The company had cash and cash equivalents of 1.54 billion yuan at the end of June.

Shares of Pateo Connect opened lower on Tuesday and closed at HK$114.5 by the midday break, down 18.51%. The stock has fallen about 47.6% year-to-date.

By Lee Shih Ta

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Property developer Longfor Group Holdings Ltd. (0960.HK) on Monday reported it logged 20.84 billion yuan ($3.1 billion) in contracted sales during the first eight months of the year, plunging 54% from 45.74 billion yuan a year earlier. The transactions this year covered a gross floor area of 2.24 million square meters, down nearly 36% year-on-year.

The company’s contracted sales in August totaled just 2.2 billion yuan, down 53% year-over-year, while the corresponding floor area fell nearly 40% to 250,000 square meters. Compared with July, however, the August sales value edged up by 5% and the transacted floor area increased by 4.6%.

The company generated about 9.73 billion yuan in operating income and roughly 8.45 billion yuan in service revenue in the first eight months of the year, for a combined total of 18.18 billion yuan.

Shares of Longfor opened flat at HK$6.015 on Tuesday. The stock is down 50% from its 52-week high.

By Lau Chi Hang

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Online content community operator Zhihu Inc. (ZH.US; 2390.HK) said on Sunday it has agreed to invest 1.5 billion yuan ($223 million) in Tianjin Lisi Xingshen Equity Investment Partnership, a fund that will invest in early- to mid-stage companies in AI and related technologies. The investment is still subject to shareholder approval.

The investment will give Zhihu up to 30% of the fund. Zhihu said it believes the investment will enable it to leverage the fund manager’s sector expertise, industry resources and investment capabilities to broaden the company’s access to high-quality AI and technology investment opportunities.

Zhihu is making the investment as large language models undermine its own business, which traditionally centered on knowledge-sharing between its members. Its revenue has been falling in the face of that challenge, including a 3.8% decline to 690 million yuan in the second quarter of this year from 717 million yuan a year earlier.

The company is looking to focus more heavily on leading-edge topics and offline events to remain relevant to its users in the face of the AI challenge.

Zhihu’s shares fell 2% to close at HK$6.80 on Monday in Hong Kong after the announcement. The stock is down about 20.5% this year.

By Doug Young

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Internet insurance technology services provider Baige Online Digital Technology Co. Ltd. (2672.HK) announced on Sunday that revenue from its Model-as-a-Service (MaaS) business reached about 47.4 million yuan ($7.06 million) in the first eight months of this year, up 579.8% from just 7 million yuan a year earlier, as commercialization of the service accelerated.

The company says its MaaS platform is built on a self-developed AI risk control and decision-making large model. It packages capabilities including risk identification, precise pricing, intelligent underwriting and claims risk control into standardized services, charging enterprise customers based on usage. The services are designed to help customers achieve digital transformation, reduce costs and improve efficiency.

Customer coverage continued to expand during the period, while delivery capabilities of its model services improved. Its service invocation volume exceeded 7.5 million during the eight-month period.

Baige Online said the rapid growth in revenue and invocation volume reflected stronger usage of its model services among enterprise customers. It added that the business had moved from the pilot validation phase into large-scale commercialization.

Baige Online’s shares opened higher on Monday before reversing course and falling more than 35% at one point in morning trade. The stock closed at HK$37.3 by the midday break, down 34.45%, but still more than double its June IPO price.

By Lee Shih Ta

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Medical device maker Shenzhen Medcaptain Technology Co. Ltd. (2041.HK) plunged in its Hong Kong trading debut on Monday, opening 35% lower before stabilizing to close at HK$10.10 by the midday break, down 34.5%.

The company sold 38.91 million shares for HK$15.42 each, raising net proceeds of HK$496 million ($63.59million). The retail tranche for local investors was oversubscribed by 435.4 times, while the international placement was oversubscribed by just 1.4 times.

Medcaptain's revenue rose 15.7% last year to 1.62 billion yuan ($241 million), as the company swung to a profit of 48.89 million yuan for the year. Its revenue increased 19% year-over-year to 420 million yuan in the first quarter of this year, but it swung to a net loss of 3.1 million yuan, reversing a profit of 5.02 million yuan a year earlier.

The company will use 35% of its IPO proceeds for R&D, 20% to develop manufacturing centers to expand its production capacity, 20% to enhance its sales and marketing, 10% for strategic investments and acquisitions, 5% to upgrade its IT infrastructure, and the remaining 10% for general working capital.

By Lau Chi Hang

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Online music platform Tencent Music Entertainment Group (TME.US; 1698.HK) said on Friday it plans to issue $1 billion in senior unsecured notes, consisting of $500 million of 5.05% notes due in 2031 and $500 million of 5.65% notes due in 2036.

The company plans to complete the offering on or around Sept. 10, and list the notes on the Hong Kong Stock Exchange.

After deducting underwriting discounts and commissions and estimated offering expenses, Tencent Music expects to receive net proceeds of about $991.9 million from the issuance. It will use the funds for general corporate purposes, including refinancing offshore debt and repurchasing shares.

Tencent Music’s Hong Kong-listed shares opened flat on Friday and closed at HK$32.88 by the midday break, up 1.04%.

By Lee Shih Ta

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Hong Kong wireless carrier SmarTone Telecommunications Holdings Ltd. (0315.HK) on Thursday announced its revenue rose 6% year-over-year to HK$6.6 billion ($846 million) in its fiscal year through June, while its profit climbed 10% to HK$525 million.

Revenue from services and other related segments declined, with average revenue per user (ARPU) for monthly mobile service plans slipping to HK$220 from HK$222 a year earlier. But rising handset and accessory sales offset the decline. Meanwhile, stringent cost controls and improving operational efficiencies helped drive down staff costs and other operating expenses by 8% and 4% year-over-year, respectively.

But the true driver behind the company's earnings growth didn’t stem from its core operations. Instead, it owed primarily to the absence of expected credit losses on financial assets at amortized cost, compared with a loss of HK$50 million in the prior year.

Shares of SmarTone opened down 0.2% at HK$4.80 on Friday. The stock is down about 10% from its 52-week high.

By Lau Chi Hang

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Yatsen Holding Ltd. (YSG.US) on Wednesday reported its revenue rose 5.1% year-on-year in the second quarter to 1.14 billion yuan ($170 million), as strong double-digit gains for its skincare products offset a sharp decline for its color cosmetics.

The company, which operates the Perfect Diary chain of stores in China, said sales of its skincare products jumped 40.4% to 816 million yuan in the three months to June, rising to 71.5% of total revenue from 53.5% a year earlier. But its color cosmetics sales fell 35.8% year-on-year, as it blamed heightened competition.

Despite the revenue gain, the company’s operating loss more than doubled on heavy marketing spending, which rose to 70.7% of revenue in the second quarter from 66.5% a year earlier. As that happened, the company’s net loss for the latest quarter also widened to 90.8 million yuan from a 19.5 million yuan loss a year earlier.

The company said it expects its revenue to fall between 0% and 10% year-on-year in the third quarter.

Yatsen’s shares fell 4.9% on Wednesday in New York after the announcement. The stock is down about 36% this year.

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