According to Bloomberg, Xiaohongshu (Little Red Book) is expected to double its overall profit to over $1 billion in 2024, possibly preparing for a potential initial public offering (IPO). This reflects a strategic shift from focusing on user growth to prioritizing profitability. As reported by the Financial Times, Xiaohongshu’s sales in Q1 2024 slightly surpassed $1 billion, with a net profit of $200 million. The company achieved profitability for the first time in 2023, with a revenue of nearly $3.7 billion and a net profit of $500 million. In contrast, it posted a $200 million loss in 2022 with around $2 billion in revenue. Such strong performance may once again fuel market speculation about Xiaohongshu’s listing. The company was valued at $20 billion in its last funding round in 2021, and this year, it completed a secondary share transaction, reaching a valuation of $17 billion.