The latest: Online logistics services provider Gogox Holdings Ltd. (2246.HK) said last Friday it expects to report revenue of 696 million yuan ($101 million) to 796 million yuan for 2022, up 5.3% to 20.4% from 2021, while its net loss widened by 33.9% to 51.9%, to between 1.17 billion to 1.33 billion yuan.

Looking up: Excluding share-based compensation expenses of approximately 624 million yuan and 11.9 million yuan in expenses related to its IPO last year, Gogox’s adjusted net loss last year was between 222 million yuan and 255 million yuan, a decrease of 9.2% to 20% from 2021.

Take Note: Based on the high end of the company’s full-year revenue estimate, its revenue in the second half of 2022 will increase by up to 28% compared to the first half of the year. That implies the company’s business in the second half was stable and not greatly affected by Covid outbreaks and resulting control measures in many regions in China.

Digging Deeper: Founded in 2013 providing 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. The company said before the IPO that it would continue losing money for the near future, and its cumulative losses have exceeded 2.5 billion yuan over the past five years.

Market Reaction: Gogox shares tumbled on Monday, closing down 6% at HK$2.99 by the midday break. The stock has lost 86.2% of its value from its IPO price of HK$21.60 nine months ago.

Translation by Jony Ho

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