Tech Insider: Fast-Fashion Retailer Shein Buys U.K. Rival, Huawei Profits Soar
Three major Chinese carmakers subject to EU anti-subsidy probe, iPhone 15’s lackluster China sales, BYD posts record profit
Huawei mobile phones on display at a store in Shanghai on Oct. 26. Photo: VCG
Fast-fashion retailer Shein buys British rival Missguided
Chinese-founded fast-fashion retailer Shein has acquired British online fashion brand Missguided from Frasers Group Plc as part of its overseas expansion.
Under the deal, Shein and Missguided’s founder Nitin Passi have formed a joint venture to manage the brand and access its intellectual property under a licensing agreement. Shein will also manufacture Missguided’s products through its on-demand production model, and sell on both companies’ websites, Shein said in a statement.
Founded in 2009, Missguided was on the brink of bankruptcy in 2022 due to a debt crisis and was acquired by Frasers for £20 million ($24.3 million).
Shein’s executive chairman Donald Tang said in the statement that the company aims to reignite the Missguided brand and fuel its global growth through Shein’s on-demand production model, proven online experience and global reach.
The financial terms of the deal were not disclosed.
Three Chinese automakers identified as targets of EU anti-subsidy probe
Three of China’s biggest automakers have been picked as the sampled companies subject to an anti-subsidy probe that the European Union is launching into new electric cars imported from China, according to a European Commission document seen by Caixin.
Multiple entities tied to BYD Co. Ltd., Zhejiang Geely Holding Group Co. Ltd. and SAIC Motor Corp. Ltd. were placed on the sample list after the European Commission analyzed information received from manufacturers that export Chinese-made electric vehicles to the EU, said the document, which was dated Wednesday.
The probe will mainly involve companies answering questionnaires, as well as on-site inspections, if the firms are willing to cooperate, said Yong Bai, a partner of law firm Clifford Chance LLP.
Companies will have until Nov. 17 to submit their answers, while on-site investigations will be conducted from December 2023 to January 2024, with the final verdict announced by November next year, according to Eric Jiang, a partner at Beijing-based Jingtian & Gongcheng in an analysis.
Huawei doubles third-quarter profit as it pushes for chip self-sufficiency
Huawei Technologies Co. Ltd.’s profit more than doubled during the quarter when it revealed the new Mate 60 Pro handset boasting made-in-China chip technology, adding to signs the Chinese tech giant is steadying a business rocked by U.S. sanctions.
The Shenzhen-based company reported a 118% surge in net profit to 26.4 billion yuan ($3.6 billion) in the September quarter, and a slight rise in sales to 145.7 billion yuan, according to Bloomberg News calculations from nine-month results released Friday. Those numbers included initial sales of the vastly popular Mate 60 Pro, which began shipping in late August.
In the run-up to the Mate 60 Pro’s debut, Huawei shored up its margins through a series of cost-cutting efforts.
“We continue to optimize our management systems, improve the efficiency and quality of our operations, and refine our sales strategy and product mix,” Huawei said in a statement. “These actions have had a very positive impact on our profit margin.”
New iPhone takes China sales hit as Huawei mounts comeback
Apple Inc.’s latest iPhone 15 series saw a 6% year-on-year decline in sales in China in its launch month, according to data from market researcher GfK that covers end-consumer sales for all channels. Mobile industry tracker IDC estimates Apple’s shipments in the country were down 4% in the third quarter.
Both identified Huawei Technologies Co. Ltd.’ return to the mobile arena spotlight as a key event in the period. Huawei’s Mate 60 series recorded sales of close to 1.5 million in its launch month, more than doubling from a year ago, GfK said, despite facing supply constraints.
Shenzhen-based Huawei abruptly released its Mate 60 and 60 Pro smartphones in the weeks leading up to the latest iPhone’s launch, drawing buyers and attention with its made-in-China Kirin processor, an apparent breakthrough in its fight to overcome U.S. trade sanctions.
Counterpoint Research and Jefferies analysts released preliminary sales figures for China earlier this month, indicating the slump for Apple could be as big as a double-digit percentage as the country’s economic challenges hit consumer demand.
BYD reports record quarterly profit
BYD, China’s top-selling car brand, reported a record quarterly profit Monday, rounding out its best period ever for electric vehicle (EV) sales despite a slowdown in the sector.
Net income grew 82% year-on-year to 10.4 billion yuan in the three months through September, in line with the company’s preliminary guidance earlier in October. Revenue rose 38% to 162 billion yuan.
Net income for the first nine months of the year reached 21.4 billion yuan, higher than its full-year figure of 16.6 billion yuan for 2022.
BYD sold almost as many pure EVs as Tesla Inc. in the third quarter, falling just 3,456 short. Including hybrids, BYD sold a total of 822,094 vehicles during the three-month period.