Bottom line: Qihoo’s privatization is likely to succeed after shareholder approval of its buyout offer, though many similar pending deals could collapse and might consider strategic stake sales like the new one by LightInTheBox.
Shareholders approve Qihoo buyout
The volume of noise coming from Chinese companies privatizing from New York has dropped sharply in the last month, reflecting volatility in their home market where many hope to one day re-list. But 2 major new stories from that wave are back in the headlines, led by shareholder approval for what would be the biggest privatization so far for security software specialist Qihoo 360 (NYSE: QIHU).
At the same time, the much smaller e-commerce firm LightInTheBox (NYSE: LITB) has just closed another deal that looks less radical than an outright privatization and could provide an alternative template for companies seeking to attract more investor attention. That deal has the company selling 30 percent of itself to Hong Kong-listed Zall Development (HKEx: 2098), which paid a large premium for the stake. Read Full Post…
The following press releases and news reports about China companies were carried on March 31. To view a full article or story, click on the link next to the headline.
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Zheshang, Tianjin Banks Underwhelm in Hong Kong Debut (English article)
Midea (Shenzhen: 000333) Pays 53.7 Bln Yen for 80.1 Pct of Toshiba’s Appliance Unit (Chinese article)
ICBC (HKEx: 1398) Reports Annual Results for 2015 (HKEx announcement)
The following press releases and media reports about Chinese companies were carried on December 22. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Hires Ex-Apple Investigator for Global Anti-Piracy Fight (English article)
OnePlus Denies Merger Rumors with Oppo, Says Layoffs Part of Improvement Plan (Chinese article)
Suning (Shenzhen: 002024) Invests 523 Mln Yuan in Jiangsu Soccer Club (Chinese article)
SABMiller (London: SAB) China Partner Said to Pick Banks to Advise on Snow JV (English article)
Bottom line: 58.com’s buying binge and LightInTheBox’s cost-cutting drive are both risky strategies that could boost profits if they succeed, but also stand a sizable chance of backfiring if they become too excessive.
Buying binge pushed 58.com into the red
When the history books are written, “turbulence” and “volatility” are 2 words likely to get liberal usage when describing the second half of 2015 for Chinese companies. Two mid-sized Internet names are in the headlines this week as they face their own separate headwinds, pressuring the profits and stocks of leading online classified site 58.com (NYSE: WUBA) and struggling e-commerce company LightInTheBox (NYSE: LITB).
The first story quotes 58.com’s CEO saying he’s engaged in a buying spree this year that could result in $200 million in losses for his company. The news around LightInTheBox stems from reports saying the company has embarked on a major cost-cutting campaign that has seen numerous employees leave and also suppliers express dissatisfaction over slow bill payments. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 23. To view a full article or story, click on the link next to the headline.
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LSE’s Sale of Russell Investments to Citic Securities (HKEx: 6030) May Collapse (English article)
58.com (NYSE: WUBA) to Invest in 100 O2O Firms This Year, May Lose $200 Mln – CEO (Chinese article)
Boeing (NYSE: BA) Plans 737 Plant in China, Pledges No US Layoffs (English article)
LightInTheBox (NYSE: LITB) Caught in Whirlpool of Unpaid Bills (Chinese article)
China Three Gorges Weighs $2.3 Bln Wind Investments (English article)
The following press releases and media reports about Chinese companies were carried on September 17. To view a full article or story, click on the link next to the headline.
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CICC, China Reinsurance Prepare for HK IPO Hearings on Thursday – Source (Chinese article)
Uber Rival Lyft Teams With China’s Didi Kuaidi (English article)
Baidu (Nasdaq: BIDU) Could De-List From NY, Re-list in China – Chmn (Chinese article)
Xiaomi Rolls Out Trolley-Style Suitcase for 299 Yuan (Chinese article)
Bottom line: A new strategic investment in LightInTheBox by a major shoemaker is a vote of confidence in its turnaround story, while Bona Film’s buyout offer caps a week of record privatization activity for US-listed Chinese firms.
LightInTheBox gets new strategic partner
Last week’s privatization frenzy for US-listed Chinese firms saw one more company join the queue on the final day of the week, with movie maker Bona Film (Nasdaq: BONA) adding its name to the list of companies looking to end their relationship with fickle New York investors. That final offer brought the number of US-listed Chinese firms receiving buyout offers last week to 5, which must surely be a record for such bids in a single week.
Meantime, another interesting deal has seen underperforming e-commerce company LightInTheBox (NYSE: LITB) receive its own big new investment from one of China’s leading shoemakers. That deal saw Aokang Shoes (Shanghai: 603001) buy about a quarter of LightInTheBox’s shares, hinting at a major new direction for the foreign-focused e-commerce company and also implying it’s unlikely to de-list from New York anytime soon. Read Full Post…
Bottom line: China’s Internet companies are expecting a slowdown this year as the nation’s economy slows, but their shares could see some upside if the declines are less severe than many are forecasting.
Qihoo, Phoenix, LITB see slowing growth
It’s not often that we see any major macroeconomic trends when a diverse group of Internet companies all report results on the same day, since individual company and sector factors often have a big influence. But we’re seeing just such a trend emerge in the new results from the high-tech trio of software security specialist Qihoo 360 (NYSE: QIHU), e-commerce firm LightInTheBox (NYSE: LITB) and online media firm Phoenix New Media (NYSE: FENG), which all are forecasting a sharp slowdown in the first quarter of this year. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 10. To view a full article or story, click on the link next to the headline.
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GSK (London: GSK) Cuts China Staff, Ends Cash Awards For Sales Model (Chinese article)
LightInTheBox (NYSE: LITB) Reports Q4 And Full Year 2014 Financial Results (PRNewswire)
Tuniu (Nasdaq: TOUR) Announces The Acquisitions Of Two Travel Agencies (Globe Newswire)
Qihoo 360 (NYSE: QIHU), Xueda (NYSE: XUE) Form Internet Education JV (English article)
58.com (NYSE: WUBA) Acquires Minority Stake In Interior Decoration Service Platform (PRNewswire)
Bottom line: New global e-commerce moves by JD and LightInTheBox look well conceived and could yield some strong results, while Baidu’s new e-commerce investment reflects its lack of focus and broader strategy in the space.
LightInTheBox opens US warehouse
A flurry of e-commerce moves are in the headlines today, including new globalization steps by number-two player JD.com (Nasdaq: JD) and the struggling LightInTheBox (NYSE: LITB). Meantime, search leader Baidu (Nasdaq: BIDU) is also in the headlines as it searches for its own e-commerce business model, with reports it has made a major investment in a site being developed by PC giant Lenovo (HKEx: 992). The flurry of moves reflects the hyperactive state of competition in China’s e-commerce market, which requires constant innovation in order to survive. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 27-29. To view a full article or story, click on the link next to the headline.
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Intel (Nasdaq: INTC) Invests Up To $1.5 Bln In China Mobile Chip Venture (English article)
Hershey (NYSE: HSY) Completes Initial Purchase Of Shanghai Golden Monkey (Businesswire)
