Core Viewpoint - Alibaba is rumored to be acquiring Xiaohongshu, but the company has denied these claims, stating they are rumors. The relationship between Alibaba and Xiaohongshu remains strong, with recent collaborations enhancing integration between their platforms [1][2][3]. Group 1: Company Valuation and Financial Performance - Xiaohongshu's valuation has increased to $26 billion (approximately 186.3 billion RMB), a rise of over 50% from the end of 2023 when it was valued at $17 billion, surpassing its previous peak of $20 billion in 2021 [1][3]. - In 2023, Xiaohongshu achieved a revenue growth of 85%, reaching $3.7 billion, and reported a net profit of $500 million [8]. - The company’s monthly active users reached 312 million in 2023, a 20% increase from 260 million in 2022 [8]. Group 2: Strategic Developments - Xiaohongshu and Alibaba's Taobao Tmall have announced further integration, allowing Xiaohongshu's content to link directly to the Taobao app, enhancing the shopping experience [1][3]. - The company is moving towards a "content + e-commerce" model, which is expected to improve brand advertising strategies and conversion rates [3]. Group 3: IPO Speculations - Xiaohongshu has been rumored to be preparing for an IPO since 2018, with previous plans delayed due to geopolitical and regulatory issues [5][6]. - The company has indicated it will maintain communication with the capital markets but has no immediate IPO plans [8]. - Recent reports suggest that Xiaohongshu is considering establishing an office in Hong Kong, reigniting speculation about a potential IPO [7][8].