The year 2012 will easily go down as the worst for New York IPOs by Chinese firms since the global financial crisis, though there’s still some hope we could see one or 2 offerings in the next couple of months by cash-starved Chinese firms. A social media website named YY surprised many when it made a preliminary New York IPO filing earlier this month (previous post), and now video and music sharing site Xunlei is also emitting signals that indicate a filing could be near for its own stalled public offering.
Tag Archives: Xunlei
News Digest: October 26 报摘： 2012年10月26日
The following press releases and media reports about Chinese companies were carried on October 26. To view a full article or story, click on the link next to the headline.
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- Bank of China (HKEx: 3988) Announces Q3 Results (HKEx announcement)
- China Telecom (HKEx: 728) Wins Online Video, IPTV Transmission Licenses (English article)
- Unicom (HKEx: 762) Removes Some Cisco (Nasdaq: CSCO) Gear Over Security Concerns (Chinese article)
- CITIC Securities (HKEx: 6030) Says to Buy Remainder of CLSA (English article)
- Xunlei CEO Says Reports of Bids for Company By Baidu, Qihoo Are Media Guesses (Chinese article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Xiaomi Explores Internet TV 小米开发电视盒
Homegrown smartphone sensation Xiaomi is looking more and more like a Chinese version of global tech giant Apple (Nasdaq: AAPL) these days, following the latest reports that the company is preparing to launch an Internet TV product. I’m sure that Xiaomi’s marketing-savvy founder Lei Jun loves the comparisons his company is getting to the world’s biggest tech company, which of course would include the inevitable comparisons to Apple co-founder Steve Jobs. Perhaps Lei will even change his company’s English name to “Little Rice”, which is what Xiaomi means in Chinese, to play on Apple’s own food-related associations.
Youku, Tudou: No Honeymoon Ahead 优酷与土豆“婚”後将无蜜月可度
The proposed marriage between Youku (NYSE: YOKU) and Tudou (Nasdaq: TUDO) looks like a done deal, with shareholders of both companies approving the union at separate meetings on the same day. (Youku announcement; Tudou announcement) So now the question becomes: what does the union mean for the longer term development of the new company, Youku Tudou, and also what does the formation of this new industry leader mean for other major players? In a nutshell, I honestly don’t think the future looks very bright for anyone, due to both individual company issues and broader industry issues as well.
Vancl: Sales Soar, But Where’s the IPO?
Leading online clothing retailer Vancl has held a high-profile press conference where its Chairman and CEO Chen Nian talked at length about his company’s latest developments, including its phenomenal growth since its founding as well as its missteps over the last year. But what’s perhaps most revealing is what he didn’t talk about, namely the company’s long-delayed IPO, reflecting the intense competition that has developed in online retailing over the last year that has perhaps caused Vancl to quietly slip into the red — if it was ever profitable to begin with. Chinese media reports cite Chen giving out a multitude of figures for his company in 2011, including 150 percent sales growth. (English article; Chinese article) The reports also cite Chen saying his company made some missteps last year, mostly due to management’s loss of strategic direction. That confession, combined with previous reports of layoffs amid a cash crunch (previous post) and no mention of profits at the press conference, all tell me that Vancl is losing money, possibly a lot of money, and may be coming under intense pressure to raise more funds or cut costs or both. Vancl reportedly completed all the necessary steps for a New York IPO last year and was waiting for the right time to make its offering, but ultimately had to scrap its plans when market sentiment toward Chinese companies — especially money-losing ones — tanked in the second half of the year. Online video site Xunlei sounded a cautiously positive note for the market last week when reports emerged that it was reactivating its own New York IPO, which it also had to scrap last year due to the weak market sentiment. (previous post) But unlike Vancl, Xunlei was already in the black as early as 2009, when it posted a profit of $5.5 million. When the US IPO market for Chinese companies finally does improve, profitable companies like Xunlei are much more likely to lead the next wave of new offerings than money-losers like Vancl and 360Buy, another money-losing candidate for a US IPO, which investors won’t embrace so easily. If that’s the case, look for more cost-cutting by Vancl in 2012, with an IPO unlikely before the second half of the year at earliest — if the company survives that long.
Bottom line: 2012 will be a tough year for cash-strapped money-losing Vancl, which won’t be able to make a long-delayed US IPO until the second half of the year at earliest.
Related postings 相关文章:
◙ Qihoo, Vancl Fend Off New Attacks 奇虎、凡客和人人承受压力
◙ Internet Investors Seek Refuge in Big Names 互联网投资者选择性支持中国市场领头羊
◙ China Internet Bubble Sees Vancl Dressing Down 中国互联网泡沫见证凡客裁员
Xunlei, Muddy Waters Sound Upbeat Notes 迅雷和Muddy Waters保持谨慎乐观
It’s the new year, and that means a time for new beginnings — or at least that’s what video sharing site Xunlei and infamous short-seller Muddy Waters are saying, as both sound notes of cautious optimism that the worst of the confidence crisis for US-listed Chinese stocks may be past. Let’s start with Xunlei, China’s seventh largest online video site, which is reportedly preparing to relaunch plans for a US initial public offering that it initially aimed to make last year. (English article) Readers will recall that Xunlei had planned to raise up to $200 million when it first announced its IPO plans last July, only to steadily scale back those plans as market sentiment plummeted due to a series of accounting scandals at US-listed Chinese companies. (previous post) It ultimately shelved the IPO, but has now completed preparations to restart the process, a company official said, without being more specific. Meantime, Carson Block, whose Muddy Waters research firm was behind several high-profile short selling attacks that helped to start the confidence crisis, is changing his tone slightly and saying he may actually buy some of the Chinese stocks whose shares took a beating last year. (English article; Chinese article) Block is still being quite cautious, saying only investors with the resources to conduct their own independent research should consider buying Chinese stocks at this point, implying we may still see yet another accounting scandal or 2 emerge before this latest confidence crisis ends, which I expect will be around the middle of this year. But the fact that he would even consider buying some of these companies — many of whose shares fell by half or more last year — indicates he thinks that valuations are probably in a more reasonable range now than they were a year ago. Industry watchers will no doubt be looking closely at Xunlei if it moves ahead with its IPO plan, as investor response could set the tone for the rest of the year, especially if the IPO is even moderately successful. I would expect Xunlei to move forward and take steps to keep expectations relatively low, with the result that it should be able to see modest success with an offering that will probably raise around $100 million in the first quarter.
Bottom line: Recent signals from Muddy Waters and Xunlei indicate the confidence crisis toward US-listed China stocks may be easing, with a sustained recovery likely in the second half of 2012.
Related postings 相关文章:
◙ Xunlei’s Shrinking IPO Disappears 迅雷无限期推迟IPO时间
◙ Cleanup Resumes, Facebook Sniffs Out China Investors 在美上市的中国企业将继续面临“大清洗”
◙ Short Sellers Target China in Year End Assault 做空抛盘年底将矛头对准在美上市中国企业
News Digest: January 13, 2012
The following press releases and media reports about Chinese companies were carried on January 13. To view a full article or story, click on the link next to the headline.
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◙ China’s Auto-Sales Growth Trails U.S. for First Time in At Least 14 Years (English article)
◙ Xunlei Prepares for Second IPO Attempt (English article)
◙ Tudou (Nasdaq: TUDO), Sohu (Nasdaq: SOHU) Block Youku (NYSE: YOKU) Search Engine (English article)
◙ Shanda Games (Nasdaq: GAME) Announces Date of January 23 for Special Cash Dividend (PRNewswire)
◙ China To Open Domestic Parcel Delivery Market to Foreign Investment in H1 (Chinese article)
News Digest: December 24-27, 2011
The following press releases and media reports about Chinese companies were carried on December 24-27. To view a full article or story, click on the link next to the headline.
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◙ Sina (Nasdaq: SINA) Weibo Accepts US$200 Mln Digital Sky Investment – Source (English article)
◙ Xinhua Website Planning $158 Million IPO: Sources (English article)
◙ Foxconn (Taipei: 2354) Solar-Module Entry May Cut Margins for Chinese Makers (English article)
◙ Sinopec (HKEx: 386) Completes Purchase of Canada’s Daylight Energy (Toronto: DAY) (English article)
◙ Xunlei to Sue Youku (NYSE: YOKU) for IPR Infringement (English article)
2011 Limps Out With Haitong IPO Withdrawal 海通证券推迟IPO 2011以市场疲弱状态落幕
2011 could well go down as one of the most schizophrenic years for IPOs in recent memory, with the latest pulling of a mega-offering by Haitong Securities (Shanghai: 600837) symbolizing the dismal sentiment that has set in over the last 6 months after a strong start to the year. According to foreign media reports, Haitong, which is already listed in Shanghai, has decided to scrap its Hong Kong offering that would have seen it raise up to $1.7 billion due to dismal market sentiment. The decision comes after a steady string of other deals that were either scrapped or went forward with weak results. One of the biggest, a Hong Kong offering by Haitong rival CITIC Securities (HKEx: 6030; Shanghai: 600030) had to be scaled back but still went ahead despite the weak sentiment. Since then, the company’s shares have sunk about 3 percent from their IPO price in September, despite its premier status as China’s biggest brokerage. Other smaller offerings by online video site Xunlei and Shanda‘s (Nasdaq: SNDA) online literature unit Cloudary had to be were pulled as well, again due to weak investor sentiment. These smaller US companies have been hit not only by that weak broader sentiment, but also by more specific concerns about Chinese firms’ accounting practices following a series of accounting scandals earlier in the year. Companies that have gone forward with offerings this year have hardly offered any reassurance. Shares of Renren (NYSE: RENN), a leading Chinese social networking site, now trade at about a quarter of their IPO price since their May offering; while shares of video sharing site Tudou (Nasdaq: TUDO), which made its IPO in August when sentiment was already weak, have sunk by more than half from their IPO price even after the company reported a surprise third-quarter profit. The combination of confidence crisis and broader weak market sentiment is no doubt behind the huge losses for US-listed China stocks. That said, investor sentiment is notoriously cyclical, and I would expect people to rediscover the big potential of China stocks sometime next year, probably around the second quarter, at which time we should see names like Haitong and perhaps even Cloudary or Xunlei make a second try at an IPO. In the meantime, braver investors with money to spare could position themselves for some nice returns by buying shares now ahead of the next uptick.
Bottom line: Haitong Securities’ pulling of its IPO reflects a dismal IPO environment that should be near bottom, with sentiment likely to pick up for China plays around the second quarter of 2012.
Related postings 相关文章:
◙ Internet Investors Seek Refuge in Big Names 互联网投资者选择性支持中国市场领头羊
◙ Shanda Moves Ahead With Privatization 投资者对盛大私有化仍持保留态度
◙ Year End Brings Problematic New IPO Wave 中国新一波IPO潮或无法达预期效果
55tuan: A Company in Denial 窝窝团拒不接受现实
Despite turmoil in US markets that has put a halt on most IPO activity, struggling group buying site 55tuan has come out very publicly and said it is aiming to list on the Nasdaq by the end of this year, a goal that probably reflects more on its critical cash situation than any basis in reality. At the same time, another company in need of cash, video-sharing site Xunlei, has officially withdrawn its application for a US listing after demand for the offering dried up back in July. First let’s look at 55tuan, as clearly the company is going through a crisis in the ultra-competitive group buying space. After reports emerged last month that the company had become the latest group buying site to make mass layoffs, 55tuan finally came out last week and admitted making major cuts at many of its offices, particularly in smaller cities. (previous post) Now 55tuan CEO Xu Maodong has come out and reassured the world that his company, which previously had difficulty finding an investment bank to underwrite an IPO, is moving ahead with the offering and expects to make it by the end of the year. (Chinese article) The only problem in all this is that I suspect Mr. Xu and his money-losing company will find little or no demand for their shares from Western investors. That same lack of demand for money-losing Web firms, combined with broader weak sentiment towards US-listed China companies, also caused Xunlei to scale back its plans for an IPO to raise up to $200 million in July, before finally suspending the offering altogether. (previous post) Its latest filing to the US securities regulator indicates it has given up on the deal for now. (Chinese article) But I suspect that unlike 55tuan and rival group buying site Lashou, Xunlei still has sufficient cash to survive for a while longer, and we’ll see it return to market once the current turbulence and negative sentiment toward China stocks subside.
Bottom line: 55tuan’s determination to make an IPO by year end reflect its dire cash situation, with such an offering likely to find little or no demand if it really moves forward.
Related postings 相关文章:
◙ Group Buying Turmoil Grows With 55tuan Layoffs 窝窝团撤站裁员 团购业整合在即
Youku’s New Formula: Sponsored Programs 优酷“新配方”：赞助项目
At first glance, video sharing site Youku’s (NYSE: YOKU) new announcement regarding the creation of a new video series together with Dutch electronics giant Philips (Amsterdam: PHG) looks like little more than PR, which led me to pay little attention when it landed in my email box. (company announcement) But closer inspection reveals a more innovative tie-up, which has Philips essentially paying for the creation of an exclusive new video series for Youku in exchange for sponsorship rights, much the way advertisers pay for traditional TV series with their advertising dollars. According to Youku, the first episode of the series, about a young designer trying to win back his girlfriend from a wealthy man, was viewed 2 million times in its first 24 hours — numbers that would make most TV channels envious. While I’m still not completely convinced about Youku’s long-term viability as a stand-alone online video provider, initiatives like this, which are costing it nothing and bringing in millions of viewers, look like a smart formula for success as the money-losing company seeks ways to turn a profit. This latest effort follows another Youku initiative back in June, when it became China’s first big portal to sign a licensing deal with a major Hollywood studio, in this case offering content from Warner Brothers (NYSE: TWX) to its premium subscribers. (pervious posting) These kind of initiatives are exactly the kind of thing that Youku and video- and music-sharing rivals like Tudou (Nasdaq: TUDO), Xunlei and even Baidu (Nasdaq: BIDU) need to be doing in order to ensure their long-term viability. Recent talk that Youku may be in talks with for an equity tie-up with China Internet leader Tencent (HKEx: 700) (previous post) are making this company look like an even stronger bet to maintain its position as China’s leading online video site, and potentially even a profitable one in the near future!
Bottom line: Youku’s foray into sponsored video series looks like a good move with strong future potential as it weans itself from pirated content.
乍看起来，中国视频分享网站优酷(YOKU.N)与荷兰电子厂商飞利浦(PHG.AS)联合出品系列网络电影的新项目不过是公司公关而已，所以一开始邮箱里出现这条消息时，我并未在意。但是进一步的观察发现，其实这一合作还有着非常创新的一面：飞利浦其实通过出资为优酷创作独家网络电影，以换取赞助权。据优酷介绍，系列电影第一支短片《爱有多久》首映24小时内，点播量高达200万，这一数字足以让多数电视频道感到眼红。短片讲述一名年轻设计师如何从一名富翁手中赢回自己的女朋友。虽然我对优酷能否长期扮演在线视频提供者的角色还存有质疑，但此类创意举措，用不着优酷花钱，还能吸引数以百万计的观众，看起来像是优酷寻求扭亏为盈的“巧妙配方”。此前，优酷6月份宣布与华纳兄弟(TWX.N)合作，由优酷通过视频付费点播服务，向高端用户提供450部华纳影片，并成为第一家赢得好莱坞主流片商授权的中国大型门户网站。此类做法正是优酷、土豆(TUDO.O)、迅雷，甚至百度(BIDU.O)等类音乐与视频分享网站需要去做的事情，因为这样可以保证他们的长久生命力。而且最近还有传言称优酷可能正在与腾讯(0700.HK)洽谈股权合作事宜，似乎意味着优酷保持国内在线视频网站领头羊的机率更高，甚至有可能近期扭亏为盈。
一句话：优酷涉足有赞助的网络电影项目看似是明智之举，未来颇为看好，有助于其摆脱盗版内容。
Related postings 相关文章:
◙ Video Sharing: Let the Tie-Ups Begin
◙ Tudou IPO Set to Stumble Out of the Gate 土豆上市首日难有精彩表现
◙ Youku, TCL Discover Hollywood in New Tie-Ups 优酷、TCL双双联手好莱坞大品牌
