China’s Instagram-Style Xiaohongshu Crosses $1 Billion in Profit

Xiaohongshu, the Instagram-style app that took off among younger Chinese during the pandemic, is on track to double profits to more than $1 billion in 2024 ahead of a potential IPO.

Xiaohongshu Technology Co. has told investors its net income is on track to cross that milestone this year, people familiar with the matter said. That reflects a renewed focus on the bottom line over user growth, which has slowed in the years since its Covid-era heyday, the people said, asking not to be identified discussing confidential information.

The strong results are likely to revive speculation around the market debut ...