BBW Weekly: SpaceSail seeks billions for China’s Starlink challenge, as revenue remains earthbound
SpaceSail seeks billions for China’s Starlink challenge, as revenue remains earthbound
The Shanghai-based satellite company is raising fresh capital for its Qianfan network in one of several Chinese efforts to build state-controlled low orbit broadband systems
- SpaceSail is seeking up to 15 billion yuan to expand its Qianfan constellation, with a structure that keeps the company in state control and excludes foreign investors
- The company has put 200 satellites into orbit and signed overseas deals, but remains light years behind Starlink in fleet size, users and revenue
By Hu Minghe
Shanghai SpaceSail Technologies may be a few years – and thousands of satellites – behind Starlink, Elon Musk’s company it hopes to one day imitate. But that hasn’t stopped the operator of a homegrown Chinese low Earth orbit satellite network from hitting up investors for cash.
SpaceSailis seeking up to 15 billion yuan ($2.2 billion) in a new funding round for its Qianfan satellite constellation, according to Chinese media reports, citing a public company disclosure. That disclosure came the same month as the record Nasdaq listing for Musk’s SpaceX (SPCX.US), whose assets include the Starlink service that accounted for about 60% of the company’s $18.67 billion in revenue last year. Starlink currently boasts about 10.3 million users and 9,600 satellites, dwarfing SpaceSail’s much smaller 200 satellites and almost no revenue.
SpaceSail’s new fundraising looks less like ordinary venture capital than...
A tale of two markets: DSC’s disastrous Nasdaq debut, and Nike’s distribution dilemma
DSC.US | Latest close: 7.71 | 52-week range: 4.52-16.35
“It’s the kind of market that has always promised better tomorrows but has never been able to deliver.” – on China’s used-car market
- DSC’s disastrous Nasdaq debut highlights the structural and economic challenges facing Chinese used-car platforms
- Rumors of Nike cutting online distributor ties in China reflect broader struggles by Western brands to adapt to shifting local consumer preferences
By Doug Young & Rene Vanguestaine
We’re currently witnessing a fascinating, albeit painful, recalibration of how companies navigate the Chinese consumer market. Wall Street recently hosted its first major Chinese IPO in over a year — a used-car platform whose disastrous debut underscores the deep vulnerabilities in China’s automotive sector. Meanwhile, rumors are swirling that global sportswear giant Nike (NKE.US) might be radically restructuring its online distribution networks in...
Ubtech charms investors with companion robots – until reality sinks in
9880.HK | Latest close: 108.9 | 52-week range: 75.5-161
The humanoid robot maker’s stock jumped as much as 18% the day it unveiled a new line of companion models, only to give back all the gains the next trading day
- Ubtech has unveiled a new line of companion robots aimed at the elderly and lonely, complementing its existing line of industrial-use humanoid models
- The company’s robot sales soared last year as its industrial-use robots went into mass production, but its models are generally more expensive than rival products
By Doug Young
It’s no secret that virtual companions have become all the rage lately, attracting people who like them for their empathy, positive comments, helpful suggestions and non-judgmental nature. But translating that to an emerging world of embodied robots has proven much more challenging, requiring far more complex...
Yuexiu Property acquires Guangzhou land site for $203 million
0123.HK | Latest close: 3.55 | 52-week range: 3.27-5.2539
Real-estate developer Yuexiu Property Co. Ltd. (0123.HK) said on Thursday that it acquired a land parcel in the Pazhou Middle and East Zone of the Haizhu district in Guangzhou via an open tender for 1.38 billion yuan ($203 million).
The site covers an area of approximately 20,415 square meters, offering a total buildable gross floor area of roughly 36,000 square meters zoned for residential use. Completed properties will be slated for sale.
The company said it is obligated to construct public infrastructure including roads, green spaces, and a river channel, which collectively encompass a construction area of about 11,355 square meters. Upon completion, that infrastructure must be handed over to the Guangzhou municipal government at no cost.
Shares of Yuexiu Property opened flat at HK$3.47 on Friday. The stock is...
Regina Miracle gets a profit uplift as Victoria’s Secret partner
2199.HK | Latest close: 1.79 | 52-week range: 1.6221-2.5646
The underwear maker defied a challenging market to post higher net profits, thanks to a tie-up with the U.S. underwear brand, but its overall business was under pressure
- The firm’s annual revenue slipped and operating profit tumbled, as garment orders were hit by trade frictions and weakening consumer demand
- Victoria’s Secret China enjoyed rising sales, but the overall underwear segment was still sluggish
By Lee Shih Ta
Clothing manufacturers have been feeling the chill from economic headwinds, buffeted by the impact of trade tariffs and weak consumer confidence.
But a Chinese supplier of lingerie and sports bras has managed to increase its annual profits by more than 50%, outperforming other firms in the sector.
So what was the secret of its earnings success? It largely came down to...
Trademark tussle could further dilute Helen’s incredible shrinking bar tab
9869.HK | Latest close: 2.02 | 52-week range: 0.7449-2.05
The operator of China’s largest bar chain lost a key trademark court battle, as it brought in two new co-CEOs to try to revive its sinking business
- Helens International replaced founder Xu Bingzhong with two new co-CEOs days after the company lost a case involving its namesake trademark
- The bar chain operator’s revenue fell 28% last year, while its adjusted profit was mostly stagnant
By Edith Terry
In September 2021, Helens International Holdings Co. Ltd. (9869.HK, HLS.SI) was riding high when it raised a foamy HK$2.51 billion ($320 million) in its Hong Kong IPO.
The leading bar operator had just become China’s first “pub stock,” and was a rising star soaking up money from a recently minted class of free-spending Chinese youth embracing Western bar culture. The company’s...
Alebund soars in Hong Kong debut on kidney treatment hopes
9637.HK
The drug developer stood out from the IPO crowd of unprofitable biotechs due to its existing revenue stream and a focus on novel remedies for renal disease
- Alebund plans to prioritize getting Chinese approval next year for its core product and is aiming for a U.S. launch in 2029
- The IPO drew 11 cornerstone backers including prominent names in global finance and biopharma investment
By Molly Wen
A host of pre-profit biotechs have listed in Hong Kong this year, taking advantage of relaxed rules for budding pharmaceutical pioneers, but the latest entrant has made a particularly big splash.
Alebund Pharmaceuticals (Jiangsu) Ltd. (9637.HK), which is developing a range of drugs to treat kidney disease, doubled its share price on the first day of trade, outperforming the seven previous...
Where China’s AI models make their money
Unlike overseas rivals that rely on subscriptions and APIs, Chinese AI vendors are monetizing through cloud platforms, project contracts and compute usage
By LeadLeo Research Institute
As commercialization of large AI models accelerates globally, overseas and Chinese markets have begun to diverge structurally in usage patterns, competitive dynamics and how value is distributed. Overseas markets are built mainly around mature subscription models and direct API payments. China’s market, in contrast, is dominated by enterprise usage, platform-based delivery and free or low-cost customer acquisition. The gap reflects different choices between open-source and closed-source models, and is also shaped by policy, supply concentration and payment culture. The situation is unlikely to reverse in the near term.
Overseas markets start with cases like ChatGPT’s roughly 700 million weekly active users and extend into...
Citic Bank breezes into China’s insular tobacco sector with new investment
0998.HK | Latest close: 6.7 | 52-week range: 6.1682-8.3688
The bank seized on a local government debt crunch to buy a stake in regional lender Hongta Bank, providing a conduit into China’s recession-proof cigarette monopoly
- Citic Bank will acquire 14.5% of Yunnan Hongta Bank, which is closely connected to China’s tobacco monopoly
- The move could give Citic Bank, one of China’s more entrepreneurial national lenders, a conduit into supply chain finance across the country’s vast tobacco ecosystem
By Warren Yang
There’s an old saying that where there’s smoke, there’s fire. In the case of China Citic Bank Corp. Ltd. (0998.HK; 601998.SH), where there’s smoke, there may also be a recession-proof, perpetually flowing wellspring of money.
In a filing with the Hong Kong Stock Exchange last Friday, Citic Bank said it received the green light from the Yunnan...
China’s baby bust drives Kidswant pivot to scalp care
301078.SHE | Latest close: 6.91 | 52-week range: 6.46-14.8789
The company has filed for a Hong Kong IPO, cultivating a second growth curve in high-margin areas like scalp care, as its core maternal and infant products business stagnates
- Kidswant has filed to list in Hong Kong, reporting its revenue rose above 10 billion yuan last year, even as growth for its core maternal and infant business slows
- The company is looking for new growth engines in high-margin businesses such as scalp care and marketing services
By Lee Shih Ta
China’s fertility rate continues to sink as a growing number of people opt out of parenthood. And yet the market for maternal and infant products will always be lucrative for companies that provide items desired by remaining parents, who are often willing to spend lavishly on their children....
JBM Healthcare gets bitter pill from investors on anemic performance
2161.HK | Latest close: 1.97 | 52-week range: 1.84-3.1104
Shares of the over-the-counter traditional Chinese medicine company tumbled after it reported sequential revenue and profit declines in the second half of its fiscal year
- JBM Healthcare’s profit edged up 1.9% in its latest fiscal year through March
- The over-the-counter traditional Chinese medicine company’s full-year dividend payout ratio reached a generous 70%.
By Lau Chi Hang
It’s safe to say that most ordinary consumers have never heard of JBM (Healthcare) Ltd. (2161.HK). But the brands from its proprietary cabinet of over-the-counter (OTC) traditional Chinese medicines (TCM), like Po Chai Pills, Ho Chai Kung, Flying Eagle Woodlok Medicated Oil, and Tong Tai Chung Woodlok Oil, are household names in Hong Kong, as well as adjacent Guangdong province.
JBM Healthcare was spun off from Jacobson Pharma (2633.HK) in February 2021...
Xunlei charms market with share buyback, as global business faces slowdown
XNET.US | Latest close: 5.84 | 52-week range: 4.14-11.03
The online video company will repurchase up to $20 million worth of its shares, as it sits on a cash pile and a major investment that combined are worth more than twice its market value
- Xunlei announced it will repurchase up to $20 million worth of its stock, sparking a one-day rally for the shares
- The company has found a major new engine in international livestreaming services, but warned that growth is likely to slow after a period of rapid expansion
By Doug Young
It’s not often that you see investors get too excited about share buyback programs, even though they’re meant to be confidence boosters when management thinks a company’s stock is undervalued. But at least in one case, a newly announced $20 million share repurchase plan...
Its losses widening and margins shrinking, can DataStory tell an attractive tale?
The AI company, whose shareholders include Xiaomi, plans to list in Hong Kong, delivering a story of strong revenue growth but eroding profitability
- DataStory has applied to list in Hong Kong, reporting its revenue surged nearly 54% in the first quarter as its net loss widened
- The company, which helps businesses grow using enterprise-level large model applications, reported its gross margins continued to decline in the latest quarter
By Bai Xin Rui
The AI sector’s transition from an early phase of technological R&D to a more practical era of commercial application is boosting a new generation of companies, many now selling their AI 2.0 stories to investors. One of those, DataStory Artificial Intelligence Technology Co. Ltd., threw its hat into the IPO ring late last month, pitching itself...
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