(Yicai Global) Aug. 11 -- As electricity bills and other costs increase in summer, many community group buying firms in China are struggling and starting to shrink their businesses.

Public data show that JD.com’s Jingxi Pinpin has closed its business in central Shanxi province. Another community group buying company Suzhou Fresh Orange Technology plans to file for bankruptcy.

Jingxi Pinpin users still can find Shanxi province in its wechat mini program, but commodity pages are now blank, Yicai Global found. But pages for Jiangsu province and Shanghai are still selling plenty of commodities and having sales promotions.

Jingxi Pinpin hasn’t commented on the matter so far. An informed source told Yicai Global that the firm was adjusting its business.

Fresh Orange Technology, operator of the community group buying app Tongcheng Shenghuo, announced last month that it will file for bankruptcy because of poor business performance.

Another community group buying firm Shixianghui has “cancelled” all its 15 branches, including the one in Chengdu, per the corporate information inquiry platform Qixinbao.

Didi Chuxing’s Chengxin Youxuan is said to have moved its headquarters to Beijing and Hangzhou, but Didi hasn’t responded to the rumor.

Electricity bills in summer are much higher than in winter, even fourfold higher, a person working in the community group buying field told Yicai Global. Also, reusable ice boxes are necessary to buy for transportation in summer while fresh food tend to rot easily.

High costs in summer are a major factor in the exit of many community group buying platforms because of the small profit margin and higher sensitivity to losses, He Yixuan, a senior analyst at Analysys Circulation Industry Center, told Yicai Global.

Competition pressure puts a crimp on companies’ profitability, and firms failing to have sustained fund supply or resolution to overcome the challenges gradually phase out, he added.

The industry is seeing an inflection point, He stated, noting that some community group buying giants are shifting their focus to the management quality of the stock market rather than just pursuing business expansion.

Editor: Peter Thomas