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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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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Shares of online fashion retailer Shein Global Holdings Ltd. (0625.HK) opened flat in their highly anticipated Hong Kong trading debut on Tuesday, then traded down during the morning to close at HK$46.62 by the midday trading break, 4% below the offer price.

Shein sold nearly 280 million shares for HK$48.56 each, representing the middle of their indicated range of HK$47.60 and HK$49.50, to raise net proceeds of HK$13.21 billion ($1.69 billion). The retail tranche for local Hong Kong investors was oversubscribed by 4.63 times, while the international tranche was oversubscribed by 1.6 times. Seven cornerstone investors purchased 61.89 million shares, representing 22.1% of the total offering.

Shein was active in 160 global markets at the end of last year, boasting 273 million active customers. Its average order frequency per customer was four times, with an average fulfillment expense per order of $17.70.

The company’s revenue rose from $32.1 billion in 2023 to $41.84 billion last year. Its revenue rose 1.1% year-over-year in the first quarter of 2026 to $9.05 billion. But its profitability has been more volatile, rising from $2.79 billion in 2023 to $3.37 billion in 2024, only to drop to $2.06 billion in 2025. The company recorded a net loss of $99 million in the first quarter of this year, primarily driven by changes in the fair value of its convertible redeemable preferred shares.

By Lau Chi Hang

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Discount e-commerce site operator Vipshop Holdings Ltd. (VIPS.US) reported on Tuesday its major operating metrics all fell in the second quarter, as it navigated a “challenging consumer environment.”

The company’s revenue fell 4.3% year-on-year during the quarter to 24.7 billion yuan ($3.67 million), while its gross merchandise value (GMV) fell 1.6% to 50.6 billion yuan. Its active customer base also dropped 2.8% to 42.3 million from 43.5 million a year earlier.

The company said it expects to report revenue of 20.3 billion yuan to 21.4 billion yuan in the third quarter, which would be flat to down 5% year-on-year.

The company’s net income jumped 189% to 4.3 billion yuan from 1.5 billion yuan a year earlier thanks to a big one-time investment gain related to the listing of its commercial real estate investment trust (REIT). Its non-GAAP net income fell to 392 million yuan from 2.1 billion yuan a year earlier due to a one-time withholding tax adjustment.

Vipshop’s stock fell 1.1% on Tuesday after the results announcement to close at $14.16. The stock is down 21.4% this year.

By Doug Young

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E-commerce company PDD Holdings Inc. (PDD.US) on Monday reported its revenue rose in the second quarter, but its profit fell, as it described “significant challenges” created by rapid changes in the global trade and regulatory landscapes.

The operator of the Pinduoduo site in China and Temu internationally said its revenue grew 8% year-on-year to 112.4 billion yuan ($16.7 billion) in the three months to June, but its profit dropped 12% to 27.2 billion yuan. Its revenue from online marketing services rose 3.4% year-on-year to 57.6 billion yuan, while its transaction services revenue rose 13% to 54.7 billion yuan.

The company and its peers are facing growing scrutiny from governments in Western markets where they do business over issues like data privacy, product quality and labor practices. They have also taken a hit from policy changes in the U.S. and Europe that require them to pay import duties on items mailed from abroad, reversing an earlier tax exemption for such goods.

PDD shares fell 1.5% on Monday to close at $87.07 after the results were published. The stock is down 23.5% this year.

By Doug Young

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The $35 billion to $40 billion the online fashion retailer is seeking is relatively modest compared with its global peers

By Teri Yu

Online fashion and lifestyle company Shein Global Holdings Ltd. is rumored to be targeting a valuation of $35 billion to $40 billion as it gets set to launch its Hong Kong IPO as soon as Aug. 19, according to a Reuters report.

Shein has built one of the world’s largest online fashion platforms by combining low prices, a vast assortment of products and rapid product turnover. But such a model has been harder to value, often viewed through the lens of ultra-fast fashion, leaving investors to question whether it deserves the kind of valuation awarded to established global apparel leaders.

The company, which serves customers across about 160 markets, has positioned itself as a global fashion business, with its diversified international customer base and broad product offerings set it apart from conventional fast-fashion peers.

A valuation of $35 billion to $40 billion would value Shein at roughly 14.6 to 19.4 times 2025 earnings, below the 25 times forward price-to-earnings (P/E) multiple for Zara owner Inditex (ITX.MC) and 20 times for H&M (HM-B.ST). Supporters of that range argue that Shein’s business has historically expanded faster than either rival, while its digitally coordinated supply chain is more efficient than conventional retailers.

Shein’s active-customer base rose to 273 million in 2025 from 186 million in 2023, representing 21.2% annual growth. Its revenue rose to $41.8 billion in 2025 from $32.1 billion in 2023, while its operating profit increased 76.7% to $1.71 billion last year from $966 million in 2024. The company’s operating margin rose to 4.1% in 2025 from 2.5% in 2024, helped by lower sales costs and a greater contribution from higher-margin service income.

Shein’s pitch centers on its “large-scale automated test and reorder,” or LATR model, which uses data-led demand forecasting, small initial production batches and digitally connected suppliers to identify winners before production is scaled up. The model is designed to solve a long-standing retail challenge: offering a wide selection of products and rapid design turnover without building up large unsold stock.

Shein’s inventory days stand at about 36 to 38 days, compared with 71 for Inditex, 114 for Fast Retailing and 164 for Adidas. Such lower inventory requirements can improve cash conversion and reduce the markdown risk that has historically weighed on fashion retailers.

The company had more than 2 million apparel styles at the end of 2025 and added about 4,700 products a day, underscoring the scale and responsiveness of its supply-chain network. Its total orders reached 1.09 billion in the 12 months to March 31, 2026.

Shein’s service income rose to 14.3% of revenue in the first quarter of 2026 from 2.7% in 2023, while non-apparel categories accounted for 38.6% of revenue, up from 31.2%.

Its Xcelerator program, upgraded in October 2025, offers partner brands access to Shein’s supply-chain tools. Leveraging the successful rollout of Shein’s Xcelerator brand incubation initiative, British fashion label Missguided, following its acquisition by Shein, posted over $210 million in annual revenue in 2025. Shein believes the company has big growth potential.

According to Morgan Stanley, Shein’s net profit is expected to grow about 12% annually between 2025 and 2028, compared with 9% for Inditex and 4% for H&M. With a stated commitment to distribute at least 50% of its profits as dividends after the listing, Shein argues it offers investors a combination of growth, cash returns and a platform model that could extend beyond its own brands.

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Livestreaming e-commerce and new media marketing company Be Friends Holding Ltd. (1450.HK) forecast on Wednesday it would report a net profit of 86 million yuan ($12.7 million) to 93 million yuan for the six months through June, up 52.6% to 65% from 56.4 million yuan a year earlier.

The company attributed the increase to ongoing development of its livestream e-commerce business during the period. It further expanded its multi-platform network of livestreaming channels and strengthened its capabilities in category-specific broadcasts.

Be Friends added that the ongoing rollout of an AI-powered livestreaming system across its entire operating process helped improve both content production and operational efficiency, driving the profit increase.

Shares of the company opened higher on Thursday before reversing course, and traded at HK$0.93 by the midday break, down 2.11%. The stock has gained about 32.9% over the past month.

By Lee Shih Ta

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Cross-border e-commerce apparel seller Zibuyu Group Ltd. (2420.HK) said on Tuesday its profit rose more than 20% in the first half of 2026, fueled by strong performance for its business on several major platforms.

Zibuyu said it expects to report a net profit of 130 million yuan ($19.2 million) to 150 million yuan for the sixth-month period, up 23% to 42% from the 105.9 million yuan profit it reported a year earlier. It credited the gains to strong performance for its business on Amazon.com and TikTok, adding that increased use of AI also helped to improve its efficiency.

Last year, the company’s annual revenue grew 40% to 4.66 billion yuan, while its profit rose 78% to 269 million yuan.

Zibuyu’s stock is down about 3% this year, and currently trades at about half of its IPO price from 2022.

By Doug Young

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Merchant services provider Youzan Technology Ltd. (6051.HK) announced on Monday it expects to report revenue of 765 million yuan ($113 million) to 775 million yuan for the first half of this year, up 7.2% to 8.6% year-on-year. It said its net profit ranged between 65 million yuan and 72 million yuan, down by as much as 11% from about 73 million yuan a year earlier.

The company attributed the revenue growth to its efforts to attract more high-quality merchants, which drove a steady increase in revenue contribution per merchant, as well as initial progress in commercializing AI. But expansion of its sales talent pool and increased investment in AI-related projects during the period caused its expenses to rise alongside revenue and weighed on its profit.

The company’s shares opened higher on Tuesday before reversing course, falling 1.76% to HK$1.395 at the midday break. The stock has lost about 49% since the start of the year.

By Lee Shih Ta

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The online fashion retailer could launch its listing in the weeks ahead, as it continues its aggressive overseas expansion

By Teri Yu

Online fashion and lifestyle retailer Shein Global Holdings Ltd. has passed its listing hearing with the Hong Kong Stock Exchange, marking a key step toward launching an IPO likely to be one of the exchange’s largest this year.

The company cleared another important regulatory hurdle last month after securing approval for the listing from the China Securities Regulatory Commission (CSRC), while maintaining a confidential filing in Hong Kong. Shein plans to issue up to 341.6 million shares in its Hong Kong IPO, which could launch as early as this week.

According to its post-hearing information pack published on Sunday, Shein is the largest online fashion destination globally, with 273 million active customers last year. The company’s revenue grew at a brisk average rate of 14.2% annually from 2023 to 2025, reaching $41.8 billion in 2025, with apparel accounting for 63.8% of the total. Its net profit last year totalled $2.06 billion.

The company was founded in China in 2012 by entrepreneur Xu Yangtian and by 2018 it recorded 10 million annual active customers, establishing strong recognition as a go-to platform for fashionable apparel.

Shein said its business is built around its proprietary large-scale automated test and reorder (LATR) operating model that tests products in small batches, quickly gathers customer feedback, and restocks popular items fast, while balancing product variety, speed, and inventory.

Backed by an end-to-end intelligent supply chain and a global fulfilment network, the model helps Shein launch frequent new styles, respond to demand in days rather than weeks, and offer affordable fashion at scale. As of March this year, the company offered over 2 million apparel styles, with around 4,700 new styles added each day. It has also expanded beyond clothing into footwear, accessories, beauty, home and lifestyle products.

Shein says it works closely with brands and designers through its Xcelerator Programme, by combining their strengths with Shein’s operational capabilities.

The company largely sells its products overseas, with sales spanning approximately 160 markets with a heavy focus on Europe, the U.S., Australia and the Middle East. Shein has also moved to deepen its presence in Latin America.  The company said it worked with over 7,500 contract manufacturers last year.

Shein has attracted backing from an A-list of global investors over the years, including HSG, formerly known as Sequoia China, as well as IDG, Boyu, General Atlantic and Tiger Global, underscoring the strong institutional interest in its story. Leading global investment banks Goldman Sachs, Morgan Stanley and JPMorgan are underwriting the deal.

The IPO would be one of Hong Kong’s largest this year, and one of its most closely watched in recent years, gauging investor appetite for large consumer offerings. With the listing and the additional capital, Shein is expected to accelerate its global expansion and strengthen its position as a leading online fashion marketplace.

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Livestreaming e-commerce platform East Buy Holding Ltd. (1797.HK) said on Thursday it expects to report its revenue ranged from 5.6 billion ($827 million) to 5.8 billion yuan for its fiscal year through May, up 27.3% to 31.8% year-on-year. It projected its profit for the year would reach 520 million to 550 million yuan, representing a massive 85- to 90-fold surge year-on-year.

The big profit growth was driven by expansion of its private-label offerings, along with a more diversified selection of third-party products, which improved its overall product mix. During the period, several private-label items emerged as smash hits.

In line with its multi-channel growth strategy, the company launched a broader network of livestreaming accounts on Douyin, expanded its roster of livestream hosts and extended broadcasting hours, all of which bolstered its overall gross merchandise volume (GMV).

The company also credited an increase in paying members, higher user repurchase rates and steady revenue growth from its proprietary app, combined with an ongoing supply chain buildout and an upgraded, end-to-end quality control management system.

Shares of Easy Buy opened up 1.4% at HK$22.64 on Friday. The stock is down nearly 60% from its 52-week high

By Lau Chi Hang

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China’s securities regulator has registered the Hong Kong IPO plan from Shein Global Holdings Ltd., clearing a key regulatory hurdle for the fast-fashion company to list. The China Securities Regulatory Commission’s (CSRC) approval caps a drawn-out process that saw Shein first try to list in the New York and then in London, before abandoning both efforts after running into political resistance.

Shein plans to sell up to 342 million shares in the Hong Kong listing, according to the CSRC’s registration notice posted on its website Friday. Such registration means the regulator has vetted the plan and given its formal approval, as required for all Chinese companies listing overseas, including in Hong Kong.

Shein rose to fame by selling cheap Chinese-made clothing to mostly Western buyers at very low prices. But the company came under scrutiny over allegations of abusive labor practices at some of its factories, and also for exploiting a loophole in U.S. and European law that allowed low-value parcels mailed from abroad to enter those markets duty-free. The U.S. has closed that loophole, and the EU is in the process of taking similar steps.

Following the CSRC’s approval, Shein is likely to formally file a preliminary prospectus for its IPO with the Hong Kong Stock Exchange in the next few weeks. The company was valued at $66 billion at the time of its last funding in May 2023. But it may target a significantly lower valuation of $40 billion to $50 billion in the upcoming IPO, a knowledgeable source told Reuters, adding the deal could raise several billion dollars.

By Doug Young

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Lifestyle platform Xiaohongshu, also known as RedNote, is preparing to confidentially file for a Hong Kong listing by the end of this month, with an aim to completing the IPO this year, Bloomberg reported this week.

The company was worth $20 billion during a 2021 funding round, and the valuation further climbed to $31 billion last year. The report said the size of the IPO remains undetermined, but the company is expected to post a profit of $3 billion for 2026. Goldman Sachs and CICC are acting as underwriters.

Founded in 2013 by Mao Wenchao and Qu Fang, Xiaohongshu initially focused on sharing overseas shopping content. It has since evolved into one of China's most popular social media, short video, and e-commerce platforms. The company's backers include Hillhouse, Tencent and Alibaba.

Xiaohongshu reportedly filed a confidential application for a U.S. listing in 2021, but ultimately scrapped that plan due to concerns from Chinese regulators over the listing venue.

By Lau Chi Hang

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Hong Kong Technology Venture Company Ltd. (1137.HK), operator of the HKTVmall online shopping platform, on Thursday reported its monthly gross merchandise volume (GMV) reached HK$827 million ($106 million) in May, up 27% month-over-month and 21.1% year-over-year. Its average daily GMV stood at HK$26.7 million, up 23% month-over-month and 21.4% year-over-year.

Average daily orders hit 54,100 during the month, up 7.6% month-over-month and 13.7% year-over-year. And the average order value was HK$492, up 13.9% month-over-month and 6.3% year-over-year.

The company said that it ran a 15% discount campaign for a total of 10 days across multiple weekends and public holidays in May, helping to fuel the GMV growth. It added that April offered a lower base of comparison, as outbound travel over the Easter holiday that month weighed on local consumption.

Shares of Hong Kong Technology Venture opened higher on Friday and were up 5% at HK$1.05 by the midday break. The stock is down nearly 50% from its 52-week high.

By Lau Chi Hang

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B2B e-commerce platform operator HC Group Inc. (2280.HK) said last Friday that its Beijing Panpass subsidiary will apply to delist from the thinly traded NEEQ exchange in Beijing and will put the matter before a general shareholder meeting.

HC Group was the first Chinese B2B e-commerce platform to list in Hong Kong, and its early market prominence once rivaled that of Alibaba (9988.HK; BABA.US). The company debuted on Hong Kong's Growth Enterprise Market (GEM) in 2003 and transferred to the Main Board in 2014. But it has suffered from lackluster performance in recent years, as its business contracted.

The company changed its auditor in March amid auditing issues, triggering a suspension of its shares. As the auditing issues continue, the company has repeatedly delayed the release of its 2025 annual results.

HC Group's shares peaked at HK$23.58 in 2014, but have fallen ever since and last traded at just HK$0.206 before the trading suspension.

By Lau Chi Hang

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E-commerce company PDD Holdings Inc. (PDD.US) on Wednesday reported its revenue rose 11% year-on-year in the first quarter to 106.2 billion yuan ($15.7 billion). But its quarterly profit fell 15% year-on-year to 12.5 billion yuan, as Co-chairman Zhao Jiazhen said supply chain investments would be the company’s core strategic priority for the next decade.

PDD’s revenue from transaction services grew 20% year-on-year during the quarter to 56.3 billion yuan, overtaking online marketing services, whose revenue grew by a slower 2.5% to 49.9 billion yuan, according to its quarterly report.

PDD shares fell 10.4% to close at $86.61 on Wednesday after the announcement. The stock is down 24% this year, giving the company a price-to-earnings (P/E) ratio of just 9, well behind the 20 and 22 for rivals Alibaba (BABA.US; 9988.HK) and JD.com (JD.US; 9618.HK), respectively.

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E-commerce giant JD.com Inc. (JD.US; 9618.HK) is exploring a bid to acquire British peer The Very Group for about 2 billion pounds ($2.7 billion) from private equity giant Carlyle, its current owner, Sky News reported on Friday. The move marks the latest pursuit of both online and offline retail assets in Europe by JD.com, as it seeks to expand beyond its core market in China.

An auction of The Very Group is set to begin soon, following the company’s acquisition by Carlyle several months ago as part of a reorganization process, according to Sky News. Very Group sells fashion, toys and electronics, and has annual revenue of more than 2 billion pounds. Before Carlyle acquired the site The Very Group was part of the Barclay family business empire, which originally purchased the business in 2002.

JD.com previously tried to buy British general merchandise retailer Argos from supermarket chain Sainsbury last year, but that deal later collapsed. Last year JD.com also launched a $2.5 billion bid for German electronics retailer Ceconomy, though that deal is still being reviewed by European regulators. The Chinese company also previously explored a bid for British electronics and appliance retailer Currys in 2024, but ultimately abandoned that effort.

JD.com’s New York-listed shares fell 3% on Friday to close at $30.52. The stock is up 6.3% so far this year.

By Doug Young

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Brand manager and e-commerce services provider Baozun Inc. (BZUN.US; 9991.HK) announced on Wednesday that its revenue rose 15.3% year-on-year to 2.38 billion yuan ($350 million) in the first quarter, as its net loss narrowed to 7.5 million yuan from 63.08 million yuan a year earlier. On a non-GAAP basis, the company posted a first-quarter net profit of 1.4 million yuan, reversing a 57.17 million yuan loss a year ago.

The company’s operating profit for the quarter came in at 250,000 yuan, compared with an operating loss of 84 million yuan a year earlier. Its non-GAAP operating profit was 8.11 million yuan, reversing a loss of 66.91 million yuan in the prior-year period.

The company said its revenue growth was mainly driven by its core e-commerce and brand management businesses. E-commerce revenue increased 10.4% year-on-year, driven by continued growth in product sales and service fee-based models. Revenue from its brand management business jumped 38.8% to 538 million yuan, mainly driven by sales growth for its GAP brand stores in China, which totaled 176 at the end of March.

The company’s stock opened higher on Thursday in Hong Kong, closing at HK$6.74 by the midday break, up 0.15%.

By Lee Shih Ta

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Kanzhun Ltd. (2076.HK,BZ.US), operator of the Boss Zhipin online recruitment platform, on Wednesday reported its revenue rose 7.6% year-on-year to 2.07 billion yuan ($304 million) in the first quarter, while its net profit surged 120% to 1.13 billion yuan. Its adjusted net profit came in at 856 million yuan, up by a more modest 12.1% year-over-year.

Chairman and CEO Zhao Peng said the company's business momentum accelerated following the Chinese New Year holiday. He attributed the growth to improving spring recruitment demand and a sustained increase in users driven by deeper market penetration.

The company’s total paid enterprise customers reached 7.1 million during the 12 months through March this year, up 10.9% compared with the year-earlier 12 month period. Meanwhile, average monthly active users in the first quarter stood at 60.9 million, up 5.7% year-over-year.

Kanzhun’s New York-listed stock closed down 0.3% on Wednesday after the announcement. The stock is down 45% from its 52-week high.

By Lau Chi Hang

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Logistics company ZTO Express (Cayman) Inc. (2057.HK; ZTO.US) announced on Monday that its first-quarter net profit rose 6.28% year-on-year to 2.12 billion yuan ($311 million), supported by continued parcel volume growth and improved per-parcel pricing. Its adjusted net profit increased 5.2% to 2.38 billion yuan.

The company’s revenue grew 22% year-on-year during the quarter to 13.28 billion yuan, with core express delivery service revenue rising 22.5%, mainly driven by a 13.2% increase in parcel volume and an 8.2% increase in average parcel pricing. Total parcel volume reached 9.67 billion units, outpacing the average industry growth rate by 7.4 percentage points, the company said.

ZTO founder and Chairman Lai Meisong said the company continued to focus on service quality, customer satisfaction and fairness in network policies during the quarter. He added that strong growth in key account customers and faster expansion in non-e-commerce parcel business helped improve the company’s revenue mix and overall profitability.

During the period, the company’s transportation and sorting cost per parcel declined by 0.06 yuan year-on-year, benefiting from economies of scale and improved route planning efficiency. However, its gross margin edged down to 24.4% from 24.7% a year earlier, while operating profit rose 5.8% to 2.55 billion yuan.

ZTO’s stock opened higher on Wednesday in Hong Kong but later turned lower, closing at HK$168.4 by the midday break, down 6.44%. The stock has gained about 12% over the past six months.

By Lee Shih Ta

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Online fast fashion retailer Shein has agreed to buy U.S. peer Everlane from private equity firm L Catterton in a deal worth about $100 million, according to a report in Puck News. The deal would mark one of the first major purchases for Shein, whose plans for an IPO have come up against repeated obstacles over the last two years.

The sale would provide fresh funds for Everlane, which has accumulated $90 million in liabilities, including a $25 million loan and a $65 million revolving credit facility, according to the report. L Catterton and Everlane chief executive Alfred Chang had been exploring a number of options to relieve the debt situation, including the introduction of a new investor or a complete sale of the company.

Under the deal, Shein will take full ownership of the company, according to the report.

Everlane was established in the early 2010s with a focus on sustainability and “radical transparency” about its pricing and sourcing practices. That approach contrasts with Shein, whose lack of transparency around its labor and sourcing practices have forced the company to abandon previous plans to list in New York and London. The company is reportedly currently aiming to list in Hong Kong.

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E-commerce giant JD.com Inc. (9618.HK; JD.US) announced on Tuesday that its net profit for the first quarter fell 53.2% year-on-year to 5.1 billion yuan ($751 million), while its non-GAAP profit fell about 42% to 7.4 billion yuan.

The company’s total revenue for the quarter rose 4.9% year-on-year to 316 billion yuan. Revenue from its JD Retail division increased 1.8%, while JD Logistics (2618.HK) revenue jumped 29% and new businesses revenue rose 9.1%.

The company attributed the profit decline to heavy investment in new businesses, most notably its year-old JD Food Delivery service. Marketing expenses surged 45.8% year-on-year to 15.4 billion yuan due to higher promotional spending, while fulfillment expenses rose 18.5% to 23.4 billion yuan amid continued investment in logistics and labor.

JD said its food delivery business continues to improve since its launch a year ago, benefiting from higher operating efficiency and more diversified revenue streams. The company added that average order profitability continued to improve, while the overall scale of its investment narrowed significantly from the previous quarter.

JD.com CEO Sandy Xu said the company’s annual active customer accounts reached a record high during the quarter, with both user scale and shopping frequency posting strong growth, reflecting deeper synergies across JD’s ecosystem. She added that JD Retail achieved its highest-ever first-quarter profitability, while losses in new businesses improved significantly from the previous quarter.

JD’s stock opened higher on Wednesday in Hong Kong and closed at HK$126.7 by the midday break, up 7.01%. The stock is up about 13.9% year-to-date.

By Lee Shih Ta

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Boss Zhipin recruitment platform operator Kanzhun Ltd. (2076.HK; BZ.US) on Wednesday announced its revenue rose 12.4% last year to 8.27 billion yuan ($1.2 billion), while its net profit surged 72.6% to 2.74 billion yuan. The platform’s average monthly active users rose 14.5% during the year to 60.7 million.

The company attributed its improving profitability to stronger network effects on both the employer and job-seeker sides, as well as enhanced brand recognition, which improved its marketing efficiency.

The company said it expects its revenue to range between 2.05 billion yuan and 2.09 billion yuan in the first quarter of this year, up 6.6% to 8.8% year-on-year. Management also said it plans to allocate 50% or more of its adjusted profit annually to share buybacks and dividends over the next three years starting from 2026, and has raised its buyback cap to $400 million.

Kanzhun’s stock opened lower on Thursday in Hong Kong and closed down 5.48% at HK$53.5 at the midday break.

By Lee Shih Ta

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JD.com Inc. (JD.US; 9618.HK) received over 240 million orders in the first year after launching its takeout dining service, giving it more than 15% of the market, Caijing Tuya reported on Monday, citing an internal company letter issued on the service’s first anniversary. The company is aiming to double its market share to 30% by the end of this year, the report said.

JD.com has built up a network of 150,000 full-time drivers over the past year, and previously announced plans to invest 22 billion yuan ($3.2 billion) over the next five years to build affordable housing for them. As it heads into its second year, JD.com’s local delivery fleet will start to transition from a takeout dining focus to offer a wider range of catering services.

JD.com and Alibaba (BABA.US; 9988.HK) have shaken up China’s “instant commerce” sector over the last year by significantly building up their fleets of riders who typically deliver meals, groceries and other merchandise from local retailers to consumers and businesses. The pair and rival Meituan (3690.HK) have spent heavily to promote their instant commerce services, leading Meituan to announce last month that it expects to report a loss of up to 24.3 billion yuan for 2025.

JD.com’s stock is down 36% over the last 52 weeks, while Meituan’s is down 54%. But Alibaba’s Hong Kong-listed stock is up about 4% over that period.

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Local delivery company Hangzhou SF Intra-city Industrial Co. Ltd. (9699.HK) said on Sunday that it expects to report a profit of at least 238 million yuan ($34 million) for 2025, up 80% or more year-on-year.

On a non-IFRS basis, the company expects to report an adjusted profit for the year of at least 376 million yuan, up 158% or more compared with 2024. It expects to report that revenue over the same period rose at least 40% year-on-year to 22 billion yuan or more, reflecting continued growth in both order volume and its business scale.

The company said the big profit gains were mainly driven by sharply higher demand for instant retail delivery services, which led to growth in both orders and revenue. It also credited its neutral and open third-party platform positioning, combined with its all-day, all-category delivery services.

SF Intra-city’s stock opened lower on Monday and closed down 3.18% at HK$14.29 by the midday break.

By Lee Shih Ta

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Smart vending machine operator Qunabox Group Ltd. (0917.HK) said on Friday that it expects to report it returned to profitability in 2025, projecting a net annual profit of between 270 million yuan ($38.7 million) and 330 million yuan, reversing a net loss of 1.66 billion yuan in 2024.

The company said the turnaround was driven by two main factors. First, it has continued to ramp up long-term investment in R&D, particularly in AI applications and intelligent interaction technologies. As these capabilities have matured and been deployed commercially, they have helped improve operating efficiency and delivery capacity, while supporting business expansion and steady growth in revenue and profit.

In addition, the company did not record any one-off, non-cash fair value losses last year, compared with a loss of that nature totaling about 1.9 billion yuan that weighed on its 2024 results.

Qunabox provides AI interactive marketing services focused on the fast-moving consumer goods (FMCG) sector. Its core business centers on interactive smart vending machines, combined with online platforms, to offer brands integrated online-to-offline marketing solutions that allow consumers to engage with and buy products.

The company’s stock opened 8.5% higher on Monday and closed at HK$30.18 by the midday break, up 19.67%.

By Lee Shih Ta

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Thieves stole thousands of items worth millions of dollars from a Paris warehouse owned by e-commerce giant JD.com Inc. (JD.US; 9618.HK), Caixin reported on Wednesday.

JD.com confirmed the theft and said that police were investigating. It said a media report estimating the value of the stolen merchandise at more than 37 million euros ($44 million) was exaggerated. The break-in involved the theft of more than 50,000 items, including smartphones, laptops and tablet computers, French broadcaster RFI reported on Monday.

The robbed facility, launched in January 2024, is JD.com’s first self-operated procurement center in Paris, purchasing goods from France and other European markets. It is part of a growing global network of more than 130 overseas warehouses operated by JD.com, as the company expands its reach beyond China.

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Discount e-commerce company PDD Holdings Inc. (PDD.US) has fired several people from its government relations department who became involved in a physical altercation with government investigators earlier this month, Caixin reported on Wednesday.

The fight broke out on Dec. 3 between PDD workers and local government officials in Shanghai who went to the company’s office to conduct an investigation on a referral from the State Administration for Market Regulation (SAMR), sources familiar with the matter told Caixin.

The police were called after the fight broke out, and PDD, which operates the popular Pinduoduo app in China and Temu abroad, later penalized several of its workers for obstructing official duties. On Tuesday, a person who said he was a former PDD government relations worker claimed in a group chat that he was wrongfully dismissed, according to a screenshot seen by Caixin.

The incident occurred as Chinese regulators have repeatedly called on companies to rein in cutthroat competition that has ravaged a number of industries. PDD’s stock has fallen steadily since rumors of the altercation emerged, dropping about 7% over the last five trading days.

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Jingdong Industrials Inc. (7618.HK), the industrial supply chain services arm of JD.com (9618.HK; JD.US), launched its Hong Kong IPOon Wednesday, offering 211 million shares for HK$12.70 to HK$15.50 per share. The sale could raise up to HK$3.27 billion ($420 million), with a trading debut set for Dec. 11.

Jingdong Industrials provides industrial product supply and digitalized supply chain services using a maintenance, repair and operations (MRO) procurement platform that it began building in 2017. According to third-party market data in its prospectus, the company is currently the largest MRO procurement services provider in China based on 2024 gross merchandise value (GMV).

At the end of June this year, the company had a product catalogue covering around 81.1 million products across 80 categories. For the first half of 2025, its revenue from continuing operations reached 10.25 billion yuan, up 18.9% year-on-year, while its net profit climbed 55% to 451 million yuan.

Its listing will make Jingdong Industrials the fifth publicly traded company within the JD family, joining JD.com, JD Health (6618.HK), JD Logistics (2618.HK) and Deppon Logistics (603056.SH).

The company said proceeds from the IPO will be primarily used to further strengthen its industrial supply chain capabilities, expand its business footprint across new regions, pursue potential strategic investments or acquisitions, and supplement general working capital.

By Lee Shih Ta

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Shares of online consumer website operator Quantgroup Holding Ltd. (2685.HK) opened up 165% in their Hong Kong trading debut on Thursday, and held on to much of the gains to close up 89% at HK$18.50 at the end of their first trading day.

The company sold 13.35 million shares for HK$9.80 apiece, representing the top of their range. The public portion of the offering for local Hong Kong investors was 9,365 times oversubscribed, while the international tranche was 14 times oversubscribed.

Quantgroup operates two core businesses: its Yangxiaomie lifestyle platform, and its online-to-offline (O2O) auto retail Consumption Guide. Its net profit for 2024 surged nearly 40-fold year-on-year to 147 million yuan ($20.76 million), primarily driven by strong revenue growth from Yangxiaomie. For the first five months of this year, its profit jumped 170% year-on-year to 126 million yuan.

The company raised a modest HK$131 million in gross proceeds from the listing, but most of that was used to pay for listing expenses. After deducting such expenses, it generated just HK$12.37 million in net proceeds from the listing.

By Lau Chi Hang

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E-commerce software provider Baozun Inc. (BZUN.US; 9991.HK) on Tuesday reported its revenue rose in the third quarter, as its core e-commerce services returned to profitability and losses narrowed for its newer brand management business.

The company’s revenue rose 4.8% year-on-year in the three months to September to 2.16 billion yuan ($303 million), while its loss from operations narrowed to 25.6 million yuan from 115 million yuan a year earlier, the company said. Its non-GAAP net loss also narrowed to 40.2 million yuan from 66.8 million yuan in the year-ago period.

Baozun’s e-commerce business reported adjusted operating income of 28.1 million yuan for the quarter, reversing a loss of 29.8 million yuan a year earlier. The adjusted operating loss for its brand management business, which includes its operation of Gap clothing stores in China, narrowed to 38.7 million yuan from 55.3 million yuan a year earlier.

Baozun’s New York-listed shares fell 5.8% on Tuesday after the results announcement, while its Hong Kong-listed shares dropped 4.9% on Wednesday.

By Doug Young

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Logistics provider ZTO Express (Cayman) Inc. (ZTO.US; 2057.HK) reported on Wednesday that its revenue rose 11.1% year-on-year in the third quarter to 11.9 billion yuan ($1.67 billion), while its net profit rose 5.3% to 2.52 billion yuan.

For the first nine months of the year, its revenue increased 10.29% to 34.6 billion yuan, and its net profit edged up 0.33% to 6.455 billion yuan.

ZTO’s parcel volume in the latest quarter reached 9.57 billion pieces, up 9.8% from a year earlier. That volume growth, combined with a 1.7% increase in parcel unit prices, drove an 11.6% increase in the company’s core express service revenue. Revenue from direct-sales customers surged 141.2%, as the company benefitted from higher e-commerce returns. But its gross margin declined by 6.3 percentage points to 24.9%.

ZTO also lowered its full-year outlook to 38.2 billion to 38.7 billion pieces, down from a previous 38.8 billion to 40.1 billion pieces, representing year-on-year growth of 12.3% to 13.8%.

ZTO’s stock opened higher on Thursday in Hong Kong, closing up 0.61% at HK$148.4 by the midday break.

By Lee Shih Ta

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Boss Zhipin recruitment platform operator Kanzhun Ltd.  (2076.HK; BZ.US) reported strong third-quarter results on Tuesday, fueled by recovering hiring activity and improved commercialization efficiency. The company’s revenue for the three months through September rose 13.2% year-on-year to 2.16 billion yuan ($304 million), while its net profit jumped 67.2% to 775 million yuan.

Revenue from online recruitment services for enterprise customers grew 13.6% to 2.15 billion yuan, while income from other services, primarily paid value-added features for job seekers, fell 27% to 16.4 million yuan. The company said the decline was mainly due to the streamlining of certain features to enhance user engagement and long-term ecosystem development.

Paid enterprise customers reached 6.8 million in the 12 months through September, up 13.3% year-on-year, while average monthly active users (MAU) climbed 10% to 63.8 million.

Founder and CEO Zhao Peng said the company is accelerating its deployment of AI technologies across products and operations to enhance the experience for job seekers and employers, as well as exploring new models such as AI-powered recruitment outsourcing. Kanzhun expects its fourth-quarter revenue to come in between 2.05 billion yuan and 2.07 billion yuan, up 12.4% to 13.5% from a year earlier.

Kanzhun's stock closed up 1.32% at $20.79 on Tuesday in New York after the earnings announcement. The stock has gained around 52% this year.

By Lee Shih Ta

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Fast-fashion giant Shein opened its first physical store in Paris, located inside the BHV Marais department store, on Nov. 5 — the same day its website was threatened with suspension in France.

According to Caixin, France’s Ministry of Economy, Finance, Industry and Digital Sovereignty announced it had initiated proceedings to suspend Shein’s online operations until the company can prove that all its content conforms with French laws. Authorities are required to complete a preliminary review within 48 hours. Shein has voluntarily suspended its business in France over third-party platforms, though its self-operated business continues to function normally.

French media reported the investigation was triggered by allegations that Shein’s platform sold child-like sex dolls and prohibited weapons. The Paris prosecutor’s office also launched investigations into Alibaba’s (BABA.US; 9988.HK) AliExpress, Pinduoduo’s (PDD.US) Temu, and U.S.-based Wish, accusing them of failing to adequately monitor their product sources and content.

Shein’s Paris store opening has already sparked widespread backlash from local retailers and fashion associations. Critics argue that the company’s fast-fashion model runs counter to Paris’ values of sustainability and cultural integrity, undermining the local fashion industry’s social responsibility efforts. Paris Mayor Anne Hidalgo also condemned Shein’s entry into BHV, calling the move “contrary to the ecological and social vision of Paris.”

Despite the controversy, Chinese cross-border platforms continue to perform strongly in France. Data from the French Fashion Institute (IFM) shows that in the first half of 2025, Shein ranked fifth among France’s top 15 fashion retailers, while Temu was 15th.

By Lee Shih Ta

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The e-commerce giant will retire the meal delivery brand more than a decade after Ele.me revolutionized the sector using GPS location-based technology

By Doug Young

E-commerce giant Alibaba Group Holding Ltd. (BABA.US; 9988.HK) will retire the Ele.me brand, as it retools China’s earliest meal delivery giant for a new era of “instant retail,” Chinese media reported this week, without citing any named sources. According to one of those sources, Sina.com, Alibaba will officially rebrand Ele.me’s app as Taobao Instant Commerce starting on Dec. 1.

Ele.me’s huge fleet of drivers, whose blue helmets, uniforms and food delivery pouches are a fixture on the streets of most major Chinese cities, have already begun taking orders for Taobao Instant Commerce, according to Sina.com. Taobao also operates its own independent fleet of deliverymen, whose orange, racing-style uniforms are quickly becoming a fixture on the streets of major cities like Shanghai.

Alibaba hasn’t commented on plans to retire the Ele.me name, after acquiring the company in stages through 2018 in a series of purchases that valued it at nearly $10 billion. Since then, however, the brand has remained relatively quiet as it lost market share to more aggressive rival Meituan (3690.HK). JD.com (JD.US; 9618.HK) entered the arena this year.

The three companies have become embroiled in a stiff price war with JD.com’s entry to the market, prompting the government to try to intervene.

Founded more than a decade ago, Ele.me revolutionized China’s takeout dining scene by making takeout food delivery fast, efficient and cheap using global positioning technology that was in its infancy at that time. More recently, all three companies have been adding other locally sourced products to their services, competing with each other to see who can deliver such goods the fastest.

Alibaba launched Taobao Instant Commerce at the end of April this year, and appears to be rapidly expanding the service in recent weeks following an initial trial period. At the time of the launch, it said the service was meant to complement Ele.me’s core meal delivery services with similar quick deliveries for other products like groceries, snacks and daily essentials within 30 minutes to an hour.

Alibaba’s latest “instant retail” campaign resembles a similar effort about a decade ago, when founder Jack Ma launched a “new retail” drive that combined traditional brick-and-mortar retailing with online shopping. But that campaign ultimately yielded relatively few synergies, and Alibaba ended up selling many of the brick-and-mortar retailing assets it purchased at the time.

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E-commerce giant Alibaba Group Holding Ltd. (BABA.US; 9988.HK) and its financial affiliate, Ant Group Co. Ltd., announced they will acquire multiple floors in a prime office building in Hong Kong’s Causeway Bay district for HK$7.2 billion ($925 million). The deal represents the largest office property transaction in Hong Kong since 2021, the companies said in their Friday announcement.

Alibaba and Ant said they will use the floors at One Causeway Bay, being purchased from Mandarin Oriental International Group, for use as their Hong Kong headquarters. The purchase involves more than 300,000 square feet of space on the top 13 floors of the 24-story building, according to media reports.

Alibaba’s Hong Kong-listed shares rose nearly 5% on Monday. The stock has nearly doubled this year.

By Doug Young

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E-commerce enterprise resource planning (ERP) software provider JST Group Corp. Ltd. (6687.HK) launched its Hong Kong IPO on Monday, aiming to sell 68.17 million shares for HK$30.60 each to raise HK$2.09 billion ($267 million). Shares will be sold in lots of 100 shares, requiring a minimum investment of HK$3,090.85. Subscriptions will close on Thursday, with trading set to begin next Tuesday.

JST is China's largest e-commerce software as a service (SaaS) ERP provider, with a market share of 24.4%, according to third-party market data in its prospectus.

It plans to use 55% of net proceeds from the listing to strengthen R&D capabilities and expand its product portfolio over the next five years; 25% to enhance its sales and marketing efforts; 10% for strategic investments; and the remaining 10% for general corporate purposes.

By Lau Chi Hang

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Logistical services provider JD Logistics Inc. (2618.HK) said on Thursday it has agreed to buy two local on-demand delivery companies, Dasheng and Dajiang, from its parent, JD.com Inc. (JD.US; 9618.HK), for $270 million.

JD Logistics said the purchase will broaden its existing product mix and business footprint, and also strengthen its last-mile delivery capabilities. Dasheng and Dajiang recorded a combined net profit of 75.2 million yuan ($10.6 million) in the first half of this year, reversing a 161.2 million yuan loss in the year-ago period.

“In light of the performance of the target business in the past months, the company believes that there are business potential and opportunities for further business expansion in connection with the target business,” JD Logistics said.

JD Logistics’ stock rose 3.5% on Thursday after the announcement. The stock is up slightly this year.

By Doug Young

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Food delivery giant Meituan’s (3690.HK)Keeta international delivery brand officially launched in Dubai on Saturday, according to its official WeChat account. The move comes after Keeta entered Qatar in August and Kuwait in September, making the UAE its third new Middle Eastern market in the last 40 days. The move also makes the UAE Meituan’s fourth strategic foothold in the Persian Gulf region.

The company said that Keeta’s Dubai launch represents another milestone in its “Retail + Technology” strategy. Dubai has also become the first overseas hub for Keeta Drone, the company’s drone delivery service. Meituan said Keeta will leverage its accumulated technological capabilities and fulfillment network to build a dual model of “ground + low-altitude” delivery, driving the large-scale rollout of its on-demand retail services in the region.

Meituan launched Keeta in Hong Kong in May 2023, before expanding into Saudi Arabia in September last year, where the service now covers 20 cities. Meituan’s “New Initiatives” segment, which includes Keeta, recorded 26.5 billion yuan ($3.71 billion) in revenue during the second quarter, up 22.8% year-on-year, while its operating loss widened by 43.1% year-on-year to 1.9 billion yuan.

Meituan’s shares opened higher on Monday, closing at HK$102.4 by the midday break, up 1.79%.

By Lee Shih Ta

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Cross-border social e-commerce company Xiamen Jihong Technology Co. Ltd. (2603.HK; 002603.SZ) announced on Thursday that it expects to report a net profit of 257 million yuan ($36 million) to 270 million yuan for the first three quarters of 2025, representing a year-on-year increase of 95.1% to 105.3%.

The company said the strong results were driven by continued rapid growth in its cross-border social e-commerce business, along with a significant improvement in the profitability of its older paper-based fast-moving consumer goods packaging business. According to the announcement, the company’s net profit, excluding non-recurring items, is expected to reach 200.2 million yuan to 213.7 million yuan, up 65% to 76% from a year earlier.

Founded in 2003 and based in Xiamen, Jihong was listed on the Shenzhen Stock Exchange in 2016. The company began as paper packaging producer, focused on product design and marketing, which allowed it to accumulate experience in identifying consumer demand. It later expanded into cross-border social e-commerce, adopting a “content-to-user” promotion approach to build a “goods discovering people” e-commerce model.

Jihong listed on the Hong Kong Stock Exchange in May, and its stock has risen 63.2% from its IPO price. Following the profit alert, the company’s shares opened higher on Friday in Hong Kong, closing up 2.17% at HK$18.34 by the midday break.

By Lee Shih Ta

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Shares of Alibaba Group Holding Ltd. (9988.HK, BABA.US) have rallied to a nearly four-year high on media reports that Cathie Wood's Ark Invest recently repurchased $16.3 million worth of the stock, reinvesting in the company four years after liquidating its prior position.

Also fueling the rally was the e-commerce giant’s announcement at the AliCloud Apsara Conference of a collaboration with Nvidia. That partnership spans several areas, including synthetic data processing, simulated data generation, model training and reinforcement learning in simulated environments.

Speaking at the conference on the same day, Alibaba CEO Eddie Wu said the company is executing a 380 billion yuan（$53.28 billion）, three-year AI initiative. He also said that AliCloud's global data center energy consumption will be 10 times higher by 2032 compared with 2022.

Following the string of positive news, Alibaba's Hong Kong-listed stock on Wednesday surged 9% to close at HK$174. The stock has doubled since the beginning of this year.

By Lau Chi Hang

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E-commerce services provider Weimob Inc. (2013.HK) announced on Thursday that it will raise HK$1.56 billion ($201 million) through a placement of 688 million shares to Infini Capital, representing 16% of its enlarged share capital. The placement price is set at HK$2.26 per share, representing an 8.9% discount to the stock’s previous closing price.

Weimob said about 30% of the proceeds will be used to explore AI integration and applications in its SaaS products, with another 30% for expanding media channels and strengthening its precision marketing services. Another 10% will go for overseas business development, and the remaining 30% will be used for working capital and general corporate purposes.

Upon completion, Infini Capital will hold 16% of Weimob’s stock, becoming the company’s single largest shareholder. The current major shareholder group formed by Yomi Sun, Jeff Fang and Alter You will see its combined stake diluted from 8.1% to 6.8%.

Weimob’s shares opened higher on Thursday and closed at HK$2.61 by the midday break, up 5.24%. The stock is down 20.7% year-to-date.

By Lee Shih Ta

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E-commerce giant JD.com Inc. (9618.HK, JD.US) has been actively seeking acquisitions of brick-and-mortar retailers in Europe, but that expansion suffered a setback with the collapse of a deal in the U.K.

British supermarket chain J Sainsbury plc (SBRY.L) announced on Sunday that it has terminated discussions with JD.com regarding the potential sale of its general merchandise retailer Argos. Sansbury made the announcement after media reports revealed the talks, and JD.com significantly revised its acquisition terms. However, Sainsbury decided the new proposal was not in the best interests of its shareholders, employees and other stakeholders, leading it to withdraw from negotiations.

Argos is the second-largest general merchandise retailer in Britain, operating the country’s third most visited retail website and more than 1,100 collection points. It was acquired by Sainsbury in 2016 for 1.1 billion pounds.

In announcing an end of its talks with JD.com, Sainsbury said it expects to deliver around 1 billion pounds ($1.36 billion) in underlying retail operating profit companywide and more than 500 million pounds in retail free cash flow for its 2025/2026 financial year.

JD.com’s stock opened flat on Monday in Hong Kong, closing at HK$132.7 by the midday break, up 0.76%.

By Lee Shih Ta

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Marketing solutions provider Many Idea Cloud Holdings Ltd. (6696.HK) announced on Thursday that it plans to raise up to HK$274 million ($35 million) through a 1-for-6 rights issue. It set the subscription price at HK$0.4753 per share, representing a discount of about 22% to its last closing price.

The company will issue up to 576 million new shares, equivalent to approximately 85.7% of its enlarged share capital, or 600% of its currently issued shares. The rights issue will only be available to eligible shareholders. Controlling shareholders, who collectively hold about 16.9% of the company, have irrevocably committed to fully subscribing to their allocation of about 97.5 million rights shares.

Many Idea Cloud said around 92.3% of the proceeds will be used to develop an in-house AI model, including investments in AI-specific computing hardware to build an efficient and scalable internal computing platform. About 7.7% will go toward purchasing media resources, particularly online traffic from platforms such as Kuaishou, WeChat Channels, and RedNote, to help clients advertise across these networks.

The company noted it has recently secured first-tier agency partnerships with Douyin and Kuaishou, requiring significant prepayments that have increased its cash needs. The board said the proceeds from the rights issue will help ease the heavy cash flow requirements of such partnerships while also supplementing its working capital.

The company’s stock initially surged on Friday after the announcement, but later gave back some of the gains to close up 4.92% at HK$0.64 by the midday break.

By Lee Shih Ta

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The logistics company handled around 14 billion parcels in the first half of this year, with strong growth in Southeast Asia and new markets in South America, Africa and the Middle East

By Teri Yu

Global logistics services provider J&T Global Express Ltd. (1519.HK) said last Friday its adjusted net profit rose 147.1% to $156 million in the first half of the year from $31 million a year ago, lifted by strong results for its ongoing expansion into new markets.

J&T has rapidly expanded its international reach in recent years, extending beyond its initial focus on Southeast Asia and China to include new locations in Saudi Arabia, the UAE, Mexico, Brazil and Egypt.

Its overall revenue rose 13.1% year-on-year to $5.5 billion in the six months to June, with revenue from express delivery services accounting for 97.1% of the total on strong gains for its parcel volume in Southeast Asia, China and new markets in Latin America and the Middle East. Its profitability improved significantly, with adjusted EBITDA rising 24.2% year-on-year to $436 million, primarily due to business growth in Southeast Asia.

“Our leading position in Southeast Asia is more solid than ever while we have maintained growth and resilience amidst fierce competition in the China market, and our new markets have reached a turning point towards profitability,” said Vice President Charles Hou.

J&T handled 13.99 billion parcels in the first half of the year, up 27% from 11 billion in the same period last year. Southeast Asia, where J&T holds a strong position, saw the largest growth of 57.9% to 3.23 billion parcels, driven by booming e-commerce and diversification beyond e-commerce through competitive pricing. That growth increased J&T’s market share by 5.4 percentage points year-on-year to 32.8%, solidifying its position as the industry leader for the sixth consecutive year, according to Frost & Sullivan. The company said its cost per parcel in the region decreased by 16.7% year-on-year, enhancing its competitiveness.

In China, the company’s largest market, J&T handled 10.6 billion parcels in the first half of the year, up 20% year-on-year, giving it 11.1% of the market. Despite intense price competition, the company lowered its unit parcel cost by 10.3% on increased operational efficiencies.

In its new markets, the company’s parcel volume grew to 170 million pieces in the first half of the year, up 21.7% year-on-year, with South America as an especially strong performer. As the company gains traction in those markets, their revenue contribution grew to $360 million and they achieved positive adjusted EBITDA of $1.57 million for the first time, compared to a loss of $7.84 million in the same period last year.

The company had 6,900 network partners as of June 30, down by 100 from the end of 2024. Its number of service points rose by 100 to 19,200, while the number of sorting centers stood at 239.

J&T Global started in Indonesia in 2015 and has since grown to become the leading express delivery company in Southeast Asia. It entered the China market in 2020 and now operates in 13 countries, with an ongoing expansion in Latin America and the Middle East.

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Discount e-commerce company Vipshop Holdings Ltd. (VIPS.US) last Thursday reported a fifth consecutive quarter of falling revenue, as it moved to reassure investors by saying its situation was stabilizing and it could soon return to revenue growth.

The company reported 25.8 billion yuan ($3.6 billion) in revenue for the quarter, down 4% from the 26.9 billion yuan it reported a year earlier. Its net income also fell 21% to 1.5 billion yuan from 1.9 billion yuan a year ago. The company’s active customers and total orders also both fell year-on-year during the quarter, though its gross merchandise value (GMV) rose 1.7%.

As its situation stabilizes, the company forecast it could return to revenue growth in the third quarter. It forecast revenue of 20.7 billion yuan to 21.7 billion yuan for the three months to September, which would represent growth of between 0% and 5%.

Vipshop’s shares rose 5.9% on Thursday after the publication of its latest results, but gave back some of those gains on Friday. The stock is up about 28% year-to-date.

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Cross-border e-commerce company Zibuyu Group Ltd. (2420.HK) said on Tuesday its revenue rose 30% or more in the first half of the year, as its brand gained traction and it improved its operating efficiency.

The company said it expects to report revenue of 1.9 billion yuan ($264 million) to 2.05 billion yuan for the first six months of the year, up between 30% and 40% from the 1.46 billion yuan it reported in the year-ago period. It said it expects to report a profit of 100 million yuan to 110 million yuan for the latest period, up between 10% and 20% from its profit of 91.4 million yuan a year earlier.

The company attributed the strong revenue growth to “deepening branding and channel development,” and said its profits also benefitted from improved efficiency in its operations.

Zibuyu’s stock was unchanged at HK$3.51 in early trade on Wednesday. The stock is down about 30% this year.

By Doug Young

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German electronics retailer Ceconomy (CECG.DE) confirmed on Thursday that it is in talks to be acquired by Chinese e-commerce giant JD.com Inc. (9618.HK, JD.US). According to Reuters, JD.com has offered 4.60 euros per share, representing a 23% premium over Ceconomy’s Wednesday’s closing price, valuing the deal at around 2.2 billion euros ($2.59 billion).

Ceconomy is the largest consumer electronics retailer in Europe, with brands including the MediaMarkt and Saturn chains. The company operates around 1,000 stores across several European countries and employs approximately 50,000 people. In its 2023/24 fiscal year, Ceconomy reported sales of 22.4 billion euros, with 5.1 billion euros from online sales.

If completed, the deal would mark a major advance in JD.com’s expansion into the European market, leveraging Ceconomy’s extensive online and offline retail networks to strengthen its regional e-commerce footprint. JD.com previously explored acquiring British electronics retailer Currys last year, but the talks ultimately fell through.

JD.com’s shares fell 1.36% to close at $33.47 in New York on Thursday. In Hong Kong, the stock opened lower on Friday and closed at HK$130.2 by the midday break, down 2.33%.

By Lee Shih Ta

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Vending machine operator Qunabox Group Ltd. (0917.HK) said on Wednesday it placed 3 million new shares at a price of HK$106.60 per share, equal to about 1.14% of its currently issued shares. The placement price represented a 17.04% discount to its July 15 closing price of HK$128.50, generating proceeds of nearly HK$320 million（$41 million）.

Quanbox said the placement will strengthen its liquidity and financial position, broaden its shareholder base and improve its capital structure.

About 50% of the proceeds will be used for the company’s domestic and overseas business operations and development, about 10% will go to R&D, and about 40% will be used to improve its capital structure and for general corporate purposes.

Shares of Qunabox opened down 1.2% at HK$127 on Wednesday, and fell rapidly after that. They were down more than 15% shortly after the market opened.

By Lau Chi Hang

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E-commerce giant Alibaba (BABA.US; 9988.HK) announced on Wednesday that its Taobao Flash Sale instant retail platform has launched a 50 billion yuan ($6.97 billion) subsidy program that will run for the next 12 months. The program aims to benefit both consumers and merchants, while accelerating the development of its large-scale consumption platform, the company said in a WeChat statement.

On the merchant side, Taobao will offer store, product and delivery subsidies, as well as commission waivers or reductions to help sellers preserve their profit margins and fill more orders. For consumers, the platform will distribute large discount coupons, "free order" cards, and official fixed-price subsidies to boost shopping incentives.

Taobao Flash Sale has grown rapidly since its launch in May. According to data released by Taobao, daily order volume for Taobao Flash Sale in collaboration with Ele.me has exceeded 60 million, with nationwide merchant order volume more than doubling month-on-month. Overall daily order volume in the instant retail market has grown from 100 million to 160 million since May, highlighting the sector’s explosive growth and increasingly fierce competition.

Alibaba‘s share closed lower on Wednesday, down 0.4% in Hong Kong at HK$109.4 and down 2.86% in New York at $110.71.

By Lee Shih Ta

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