Key takeaways: 1、China East Education’s revenue fell 6.1% in the first half of the year, as its new student enrollments dropped 14% due to Covid-related disruptions 2、Income fell 12% for the company’s cooking academies that account for 60% of its total revenue, reflecting soft demand from the struggling restaurant industry The latest results from vocational schools operator China East Education Holdings Ltd. (0667.HK) contain a few interesting lessons, including a growing preference from young Chinese adults for longer-term courses typically lasting three years or more. But the longer-term lesson remains relatively constant, namely that such vocational educators are well placed to benefit from Beijing’s drive to build up the country’s adult education sector, with the pr

Key takeaways: 1、Yalla generated record revenue in the second quarter despite a month-long Ramadan holiday, thanks to better user monetization and cost controls 2、Company bolstered its position in its home market with the naming of a former UAE telecoms chief as a new independent director After starting as a voice-focused social networking service, Yalla Group Ltd. (YALA.US) is trying to take itself to the next level by adding more diversified offerings like text, graphics, gaming and even a bit of the metaverse to its platform. The overhaul comes as the company seeks to reignite the explosive growth that briefly made it an investor darling, but has faded somewhat lately. That’s the big picture coming through in the company’s latest earnings report, which is filled with upda

Key takeaways: 1、Gene-edited lab mice provider Biocytogen has passed a listing hearing in Hong Kong, with plans to raise $50 million 2、The company operates RenMice, a proprietary platform for genetic mouse modification, and is expanding into antibody drug development They send most people scurrying, but mice have found an unlikely patron in China’s Biocytogen Pharmaceuticals (Beijing) Co. Ltd., which has passed a listing for a Hong Kong IPO. Though perhaps the furry little rodents wouldn’t see it that way. Biocytogen has made a small fortune by riding China’s boom in new drug development over the last few years. That’s driving up demand for lab animals such as rats and monkeys, as well as the mice that are the company’s bread-and-butter. Despite its relatively unusual business model,

Key takeaways: 1、GigaCloud’s shares quadrupled in their New York trading debut, as the company became the latest newly listed Chinese stock in the U.S. to post massive early gains 2、The B2B e-commerce company appears to be the latest meme stock on Wall Street, following an even more meteoric rise this month by the newly listed AMTD Digital Who says U.S.-listed China stocks have become investor pariahs? Not e-commerce site GigaCloud Technology Inc. (GCT.US), whose shares came roaring out of the gate with a 300% jump in their New York trading debut last Friday. The company sold IPO shares at $12.25, representing the upper end of their previously given range. Such strong pricing is always a good indicator of strong investor demand, though it’s unlikely anyone would have pr

Key takeaways: 1、Gogox warned that its loss grew sharply in the first half of the year, as its shares have lost more than two-thirds of their value since their June IPO 2、China’s Transport Ministry’s clampdown on fierce competition among freight transport platforms could hinder Gogox’s business expansion that relies on user subsidies Gogox Holdings Ltd. (2246.HK)sprinted out of the gate when the company, whose name means “quick dog,” became Hong Kong’s first publicly listed intra-city logistics platform in June. But just two months later, the company is quickly losing its wind after its shares fell into a downward spiral that saw them tumble as much as 80% from their IPO price. Each new trouble seems to come fast on the heels of the last. Last week the company warned it expe

Key takeaways: 1、Wuxin Technology is looking to raise up to $39 million in a New York IPO, joining a small group of Chinese companies still looking to tap U.S. markets despite frosty China-U.S. relations 2、The company is in a sector strongly supported by Beijing, but is also vulnerable to risk from China’s broader efforts to tighten regulation of tech companies Add Wuxin Technology Holdings Inc. (WXT.US) to a small group of Chinese companies that are still looking to tap the U.S. equity market, unfazed by frosty relations between Washington and Beijing. While the company may well deserve credit for its audacity, investors have lots of reasons to keep a wary eye on its stock – if it actually makes it to market. Some might argue the company, which makes chips used in internet-of-th

Key takeaways: 1、With no drug revenues and growing R&D costs, MingMed Biotechnology plans to feed its cash-burning machine with a Hong Kong IPO 2、Company has seven drugs in development, including six in the clinical stages Despite nary a penny to their top line, a steady string of money-hemorrhaging Chinese innovative drug makers have lined up to list in Hong Kong since the city permitted the unprofitable group to do so in 2018. The latest on the list is MingMed Biotechnology Co. Ltd., which filed a listing application in mid-August, naming CICC and Credit Suisse as co-sponsors. The company has seven drugs under development, six in the clinical stages. Since last year, MingMed has had three clinical trial applications approved by the U.S. Food and Drug Administration (FDA). It has

Key takeaways: 1、The company reported a year-on-year revenue fall of just under 9% in the first half and posted a net loss of 78.7 million yuan 2、With rising receivables in its commodity trading business, the company needed to borrow more to bolster liquidity, swelling its total liability by nearly 42% in six months to 22.46 billion yuan and almost doubling its financial costs Why would a company that produces gearboxes for wind turbines make a major sideways move into the volatile world of commodity trading, generating financial turbulence for its business? That’s a question arising out of the latest earnings report from China High Speed Transmission Equipment Group Co. Ltd. (0658.HK), a maker of heavy duty gears for industries such as wind power and transport. Citing lower pric

The latest: Chinese vocational educator Minsheng Education Group Co. Ltd. (1569.HK) announced on Wednesday that its net profit fell 12% in the first half of the year to 339 million yuan ($50 million), and added it won’t distribute an interim dividend. Looking up: Despite the challenges of disruptive Covid control measures throughout the reporting period, the group still managed to post 2.9% year-on-year revenue growth to 1.27 billion yuan, benefiting from higher tuition and boarding fee income. Take Note: The profit decline was mainly due to an increase of over 10% in administrative, selling and distribution expenses, as well as a 22% increase in financing costs. Digging Deeper: China’s private education sector has suffered a major blow under the gov

Key takeaways: 1、Having reached a tentative deal that could remove the delisting threat for U.S.-traded Chinese stocks, China and the U.S. will conduct a trial period through the end of this year 2、Different interpretations on reciprocity and cooperation could become stumbling blocks that ultimately derail the deal – following the failure of two previous agreements Will the third time be the charm? That’s the question on everyone’s minds these last few days, or at least everyone from the world of U.S.-listed Chinese stocks, including ourselves at Bamboo Works, as well as the more than 200 Chinese companies listed in New York and their many investors. Following months of negotiations, the U.S. and China on Friday announced a breakthrough agreement allowing U.S. regulators to inspect the wor

Key takeaways: 1、InnoCare Pharma’s revenue surged 142% in the first half of the year, but the company still lost money due to soaring R&D expenses and foreign exchange losses 2、The company will use 4 billion yuan from a Shanghai STAR Market IPO to boost production and accelerate its product commercialization Chinese drug stocks have cooled noticeably in the past year, as investors grow impatient for the dozens of listed startups to show progress in their march toward profitability. But InnoCare Pharma Ltd. (9969.HK) has bucked that trend, becoming an investor darling in its class. While sitting comfortably on 6.5 billion yuan ($950 million) in cash reserves, the company is set to raise another 4 billion yuan with a new IPO on Shanghai’s Nasdaq-style STAR Market. Its 2022

Key takeaways: 1、VNET has slashed its plans for new cabinet installations this year by 30% and lowered its revenue outlook by a more modest 2.6% 2、The company has hired Citigroup to advise it on a buyout offer led by Hina Group from April this year One has to wonder what Samuel Shen, CEO of data center operator VNET Group Inc. (VNET.US), was thinking exactly when he called his company “the industry frontrunner” on his latest earnings call last week. Perhaps he used the characterization because VNET is the most likely to be acquired in the near-term of China’s three major independent data center operators. Or perhaps he was referring to his company’s huge downgrade to its plans for new cabinet installations this year, which the company announced on the earnings call following the

Key takeaways: 1、China’s largest private auto group may acquire TuSimple’s Asia-Pacific business, allowing it to cut its China ties and alleviate U.S. national security concerns 2、The company’s commercialization timeline has been thrown into doubt following an April accident that raised safety concerns Autonomous trucking startup TuSimple Holdings Inc. (TSP.US) may have finally found a suitor for its China-based unit, five months after reports emerged that it was looking to sell the business. That suitor is Geely, China’s leading automaker whose past acquisitions include its 2010 landmark purchase of Swedish automaker Volvo, according to recent local media reports. Such a deal would help TuSimple, which has major operations in the U.S. and China, drive out of a tig

Key takeaways: 1、Viva Biotech’s eked out a scant 5% revenue growth in the first half of the year and fell into the red, even as other peers in China’s CXO sector performed much better 2、Changing values of the company’s investments are largely behind big fluctuations in its performance in recent years Despite broader malaise for Hong Kong’s bustling field of pharma stocks, one group that’s feeling quite strong these days are Contract X Organizations (CXO), companies that help drug makers do everything from R&D to sales and marketing on a contract basis. A case in point is Joinn Laboratories (6127.HK; 603127.SH), which expects its first-half profit to grow up to 161.8% year-on-year. Then there’s Asymchem Laboratories (6821.HK; 002821. SZ), which is estimating eve