FAST NEWS: Gogox appoints co-founder as new chairman
The latest: Online logistics services provider Gogox Holdings Ltd. (2246.HK) announced Thursday its executive director and co-CEO Lam Hoi Yuen has been appointed chairman by the board of directors with effect from Dec. 20, 2023.
Looking up: As one of the three key founders of the company when it was established in 2013, Lam has extensive knowledge and experience in the logistics industry and has led the company’s expansion into Singapore, Korea and India.
Take Note: Lam is replacing Chen Xiaohua who resigned four days ago. Gogox said that Chen resigned to take care of other matters, but as the company’s top decision-maker, his resignation may cause investor suspicion.
Digging Deeper: Founded in 2013 providing logistics service in Hong Kong, Gogox expanded its business to the Chinese mainland, Taiwan, India, Singapore and Korea in mid-2016. It attained unicorn status when its original GoGoVan service merged with 58 Freight in August 2017 at a valuation of $1 billion. The following year, the company changed its name to Gogox, covering more than 340 cities with a network of more than 5.2 million drivers, and listed in Hong Kong last June. However, the company had already warned before its IPO that it would be difficult to turn losses into profits in the near future, and its share price has fallen all the way down to more than 97% from the IPO price.
Market Reaction: Gogox shares fell on Friday, closing down 2% at HK$0.5 by the midday break. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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