vie-structure

#vie-structure

@SoonCrush: Xiaohongshu's Hong Kong IPO will most likely not fall through, but the timing and valuation will be heavily discounted. But this whole thing is truly entertaining—kept me laughing till late at night. The problem with the VIE structure is that when companies want to show off their strength, they say they are one with their domestic company. When they want to avoid risks, they say the domestic company has nothing to do with them...

X AI KOLs Timeline ↗ · 2026-07-06 Cached

Due to malicious layoffs and stock option cancellation disputes under its VIE structure, Xiaohongshu may see its Hong Kong IPO process affected, resulting in significant discounts in valuation and delays in listing timeline.

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#vie-structure

@chaozuoye: This is hilarious — Xiaohongshu's IPO failed because of layoffs. To make its financials look good for the IPO, Xiaohongshu saved costs by laying off dozens of employees who had stock options. One of them filed for labor arbitration. Xiaohongshu's legal department essentially said: The options were issued by an overseas company, not related to the domestic company. If you want to sue, sue the overseas company. In other words: You sue Lu Xun, what does that have to do with me, Zhou Shuren?...

X AI KOLs Timeline ↗ · 2026-07-06 Cached

Xiaohongshu laid off employees to cut costs for its IPO, triggering option disputes and labor arbitration, which led to Hong Kong Stock Exchange questioning its VIE structure, ultimately resulting in IPO failure.

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vie-structure

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