Group 1 - The rumor of Alibaba acquiring Xiaohongshu has been denied by Xiaohongshu, which stated that the information is false and they will pursue accountability [2] - Xiaohongshu has previously faced similar acquisition rumors, with Alibaba's HRG having entered the company in 2019, but these were also denied [2] - Despite the acquisition rumors being false, Alibaba has invested in Xiaohongshu, leading rounds of financing and collaborating on initiatives like the "Red Cat Plan" to integrate content and e-commerce [2][3] Group 2 - Xiaohongshu is under commercial pressure, heavily relying on advertising revenue, with e-commerce contributing a smaller portion of income [2][3] - The "Red Cat Plan" represents Xiaohongshu's strategic move to monetize its traffic by partnering with Alibaba, even opting out of participating in this year's 618 shopping festival [3] - Xiaohongshu's attempts to create a closed e-commerce loop have faced challenges, leading to a shift towards open collaboration and a focus on lifestyle e-commerce [2][3] Group 3 - Xiaohongshu is considering an IPO as a necessary step for independent growth, with speculation about a potential listing in Hong Kong this year [5] - The company's valuation has seen significant increases, with estimates rising from $17 billion at the end of 2023 to $26 billion, and more recent reports suggesting a valuation of $35 billion [5][6] - The growing interest in Xiaohongshu's valuation indicates its increasing desirability in the capital market, with potential implications for its upcoming IPO [6]