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Shares in Hong Kong democracy paper quadruple as suspension ends

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Shares in the parent company of Hong Kong’s pro-democracy Apple Daily newspaper quadrupled on Thursday as trading in them resumed following an eight day suspension.

Dealing in Next Digital was halted last week after city authorities said they were freezing the assets of its jailed owner Jimmy Lai, using a sweeping new national security law.

But when trading resumed Thursday the share price skyrocketed from its previous close of HK$0.19 to hit HK$0.80 before paring the gains to HK$0.36 mid-morning.

The group saw a similar — and volatile — surge in its share price in August when police first arrested Lai, as ordinary Hong Kongers snapped up the firm to show support for the embattled Apple Daily.

The 73-year-old media tycoon has long been a thorn in Beijing’s side for his caustic newspaper and unapologetic support for democracy.

Apple Daily, the city’s most popular tabloid, has staunchly backed Hong Kong’s pro-democracy cause, including the huge and often violent protests that swept the international financial hub in 2019.

In a filing on Wednesday announcing its plan to start trading again the following day, Next Digital said some HK$500 million (US$65 million) of Lai’s assets had been frozen, including his 71 percent stake in the company.

The freeze did not extend to Next Digital itself or its subsidiaries, the company said.

It was the first time Hong Kong authorities have used the national security law to freeze shares of a listed company’s majority shareholder — a step that could cause further jitters for investor sentiment in the city.

Next Digital said its unaudited bank and cash balances were approximately HK$521.4 million at the end of March.

“Existing working capital of the group will remain sufficient for at least 18 months from April 1 2021 without additional funding from Mr Lai,” the filing said.

The asset freeze comes as Chinese authorities roll out a relentless and successful campaign to silence dissent in Hong Kong.

Lai is currently serving a 14-month jail sentence for taking part in two of the 2019 protests.

He is also charged with “colluding with foreign forces” — one of the new national security crimes — for allegedly advocating for foreign sanctions.

More than 100 people — including some of the city’s most prominent democracy activists — have been arrested under the law.

Most of those charged are refused bail and those who are convicted face up to life in jail.

— AFP

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Up to 200 athletes tested for doping so far at Asian Games

Between 150 and 200 Asian Games athletes tested for doping, yielding no positive results. Anti-doping efforts emphasized for a clean event, focusing on record-breakers.

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HANGZHOU, CHINA — Between 150 and 200 Asian Games athletes have already been tested for doping, the Olympic Council of Asia said on Monday, with no positive results so far.

Speaking at an anti-doping press conference on the second full day of the Games in the Chinese city of Hangzhou, the OCA said dope-testing was “gaining momentum” at the event.

Mani Jegathesan, an adviser to the OCA anti-doping committee, warned that drug cheats would be rooted out.

Up to 200 athletes have been tested so far, he said, but any positive results will take several days to come through.

“Every athlete participating in these Games must understand that they could be picked at any time,” Jegathesan warned.

“That is the best step to ensuring we have a clean event.”

There are about 12,000 athletes at the 19th Asian Games, more competitors than the Olympics, and Jegathesan admitted it would be impossible to test them all.

Instead, they will prioritise, including picking out those who break world or Asian records.

— AFP

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Foodpanda’s restructuring amid sale speculations

Food delivery giant Foodpanda, a subsidiary of Delivery Hero, announces staff layoffs in the Asia-Pacific region, aiming for increased efficiency. This move coincides with ongoing talks about potentially selling parts of its 11-year-old business.

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Foodpanda, a subsidiary of Delivery Hero, is initiating undisclosed staff reductions in the Asia-Pacific region, as discussions continue regarding the potential sale of a portion of its 11-year-old food delivery business.

In a memorandum circulated to employees on 21 September, Foodpanda CEO Jakob Angele conveyed the company’s intent to become more streamlined, efficient, and agile.

Although the exact number of affected employees was not disclosed, the emphasis was on enhancing operational efficiency for the future.

No mention was made in the memo regarding the reports of Foodpanda’s potential sale in Singapore and six other Southeast Asian markets, possibly to Grab or other interested buyers.

Foodpanda had previously conducted staff layoffs in February and September 2022. These actions come as the company faces mounting pressure to achieve profitability, particularly in challenging economic conditions.

The regulatory filings of Foodpanda’s Singapore entity for the fiscal year 2022, ending on 31 Dec, indicated a loss of S$42.7 million despite generating revenue of S$256.7 million.

Angele further explained that Foodpanda intends to review its organizational structure, including both regional and country teams, with some reporting lines being reassigned to different leaders. Additionally, certain functions will be consolidated into regional teams.

Expressing regret over the challenging decisions, Angele assured affected employees of a severance package, paid gardening leave, and extended medical insurance coverage where feasible.

Foodpanda will also forego the usual waiting period for long-term incentive plan grants, and vesting will continue until the last employment date. Employees will retain all vested shares as of their last day of employment.

Foodpanda, established in 2012 and headquartered in Singapore, became a part of Delivery Hero in 2016. The company operates in 11 markets across the Asia-Pacific region, excluding its exit from the Japanese market last year.

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