First it was Baozun (BZUN.US; 9991.HK) that made a major strategic shift with a major move into brand management, launched by its 2022 purchase of U.S. retailer Gap’s (GPS.US) China operations. Now, China’s other major e-commerce services provider Weimob Inc. (2013.HK) is conducting its own major shakeup. But unlike Baozun, Weimob is thinking small with its newly announced plan to break itself up into its two major pieces.
Under the plan unveiled earlier this week, Weimob would hive off the domestic portion of its marketing services arm, Shanghai Weimob Culture Media Co. Ltd., with an aim of eventually listing the company on China’s domestic A-shares market, according to its announcement to the Hong Kong Stock Exchange.
Investors weren’t too impressed with the plan, hiving off nearly 12% of Weimob’s market value after the announcement. That continued a downward trend for the stock, which is now down 30% this year and has lost about two-thirds of its value over the last 52 weeks.