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Jul 20, 2020 05:25 pm ·

Alibaba's Ant Group Seeks Dual Listing on Hong Kong and Shanghai Bourses

Ant Group (formerly Ant Financial) has announced that it plans a dual listing on the Hong Kong Exchange and the Shanghai Star Market. The fintech company is the parent company of China's largest mobile pay solution company AliPay. Ant Group was valued at USD 153 billion post its series D financing, and now the valuation is estimated at around USD 200 billion, making it the most valuable unicorn in the world. Founded in 2014, Ant Group has expanded its business from digital payment solutions to digital financial services, including wealth management, micro-financing and insurance. Meanwhile, the company has extended its reach to over nine regions worldwide – notably to Southeast Asia – by forming strategic partnerships. Alibaba reported a gain of USD 752 million from its equity investment in Ant Group in F2019. Estimated from its stake holder’s financials, the net profit of Ant Group was around USD 2,279 million in the past 12 months as of March 31, 2020. Worth mentioning is that digital financial services had contributed more than 50% of Ant Group’s overall revenues for the foregoing 12 months as of March 31, 2020. SMIC (688981:SH, 00981:HKEX) is currently the most valuable company in the Star Market, with a market cap of CNY 587 billion (USD 83 billion). With its current valuation, Ant Group’s size on the Star Market is tantamount to a cargo ship in a pond. Under Sino-American tensions, a dual-listing plan in Hong Kong and Shanghai is probably the best fit for the Chinese unicorn. Even with such an IPO plan, Ant Group may still create the largest IPO record on the young Star Market.

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Jul 16, 2020 03:22 pm ·

After Meituan, Alibaba Announces Entrance into Community Group Buying

According to 36kr, Alibaba’s retail department is currently preparing to set up a new community group purchasing department. The person in charge, P10-ranked Zou Zhijun, in place since not long ago, reports directly to Lin Xiaohai, General Manager of the Retail Department. A person close to Alibaba has said “Zou's team is still under construction.” It is worth noting that this is another giant that has entered the field after Meituan issued an organizational adjustment announcement, claiming that it will set up a ‘Youxuan Division,’ entering the community group buying track. With Chen Liang, the Senior Vice President and S-team member responsible. “Community group-buying is essentially a competition of goods and supply chain capabilities. Small shops are the main battlefield of community group buying. They have private domain traffic. How to help small shops make cash and increase revenue is a matter that the platform should consider. Retail has powerful goods and the abilities of the supply chain – so it is not surprising there is a drive to get involved in community group purchases,” said Zou Zhijun. Before joining Alibaba, Zou was the founder and CEO of the startup ‘Miao Sheng Huo’ (妙生活), an O2O platform established in 2015 focusing on fresh fruit. It not only supported consumers buying at the store but also provided a three-kilometer delivery service around the store. Due to high costs and difficulties in financing, the company was shut down at the end of 2019. The entry barrier to the track is low, but the barriers to competition are high. With the entry of Meituan and Alibaba, the community group buying competition is entering a new stage.

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Jun 30, 2020 12:06 pm ·

India Bans Chinese Apps: BAT and ByteDance Are Most Affected

As the Indian government’s further reaction to the border conflict between India and China on June 17 – which caused 20 fatalities among Indian soldiers – 59 Chinese apps have been banned by the Indian government. India claims the action is out of the concerns over cybersecurity and public order. Chinese companies along with capital have been rushing into India’s vast but unoccupied market since 2014. Within five years, Chinese vendors have taken over 60% of the smartphone market in India. TikTok, the pivotal product of Beijing-based software juggernaut ByteDance, activated approximately 200 million Indian users. Now, Chinese investments are deep-rooted in the Indian economy, with USD 6.2 billion in myriad sectors, including hardware, software and other tech-driven domains. This ban on Chinese apps on June 29 is mainly targeting three major Chinese tech giants – Baidu (BIDU:NASDAQ), Alibaba (BABA:NYSE) and Tencent (00700:HKEX), which are dubbed the 'BAT' companies – as well as the emerging giant ByteDance. Half of the banned apps are under the reign of BAT and ByteDance. Companies like Xiaomi, Meitu and Kingsoft have also been affected, too. Xiaomi, for instance, had planned to drive profits through Internet services rather than purely by selling hardware. The ban of the Mi Community and Mi Video Call will surely impede Xiaomi’s service delivery. For the Kingsoft group, Cheetah Browser comprised over 65% of the total revenue in 2019. These companies are apparently doomed to face significant user declines in the near future. Video platforms, including 'short' and 'long' videos, are the most banned apps, followed by online tools, cameras, browsers and social media. The categories indicate that India's concern may not be constrained in data security only. China's cultural and political influence in India almost definitely lies on the red lines. Businesses from China in the content-related area may not be a strong choice to back in the Indian market anymore, considering such policies. 

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Jun 22, 2020 11:31 am ·

Alibaba and JD.com Hit Record-high Sales During the ‘618 Shopping Festival’

► Alibaba achieved CNY 698.2 billion sales on June 18; 3C and home appliances are the most popular categories. ► JD.com reached CNY 269.1 million sales, and more than 91% of orders are same-day deliveries or next-day deliveries conducted by JD Logistics. The annual ‘618 Shopping Festival’ from June 1 to June 18 came to an end, signaling China’s economic recovery. Alibaba and JD.com hit new record-high sales volumes of CNY 698.2 billion and CNY 269.1 billion, respectively.   Alibaba announced that the platform, local governments and merchants issued a total of CNY 14 billion coupons and subsidies during ‘618.’ Taobao’s small and medium-sized merchants received a total of 1 billion more orders compared to the same period last year, benefiting from Alibaba’s ‘Spring Thunder Plan’ which aims to support small and medium businesses.   On Tmall platform, one hour after the pre-sale, the transaction amount has reached five times over a year ago. Home appliances are one of the hottest product categories. Gree topped the list with 1.36 billion units sold, followed by Haier and Midea. Two overseas brands, Siemens and A.O. Smith squeezed in on the top 10 list, indicating Chinese brands have managed to gain mindshare in the domestic market. Smart TVs, air conditioners, gas stoves, water purifiers, and cooker hoods are customers’ favorites. For Gree, air conditioners are winning sales victories thanks to a high reputation. Washing machines, water heaters and refrigerators are the three best-selling home appliances in Haier. Midea is outstanding in small household appliances such as electric fans, kettles, vacuum cleaners and humidifiers.   As for JD.com, although sales were not as high as Alibaba, it increased by 33.6% compared to the previous year. JD.com said that the sales of 187 brands exceeded CNY 100 million. The sales of fresh agricultural products, health care medical products and kitchenware increased the fastest. Food and beverage, baby products, beauty and skincare were consumed most. Consumers preferred to spend more on mobile phones, household appliances, and computers, digital products in the shopping festival. The cities with the highest enthusiasm for consumption were Beijing, Shanghai, and Guangzhou.   Moreover, JD Logistics, with the advantage of self-operating, further has upgraded the ‘front warehouse’ and realized the ‘minute delivery.’ Urumqi’s first order took only 8 minutes and 21 seconds to complete the delivery. More than 91% of orders are same-day delivery or next-day deliveries, conducted by JD Logistics.

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Jun 16, 2020 11:36 am ·

Alibaba-backed Qiniu Cloud Completes CNY 1 Billion Series F

Qiniu Cloud (七牛云), an independent cloud computing and data service provider, has raised CNY 1 billion in its Series F. The round saw participation from the China Structural Reform Fund, financial service supermarket BOCOM International and venture capital firm Hongzhao Fund. In 2017, the company received over CNY 1 billion in its Series E (in Chinese) from tech behemoth Alibaba (BABA:NYSE) and private equity player Yunfeng Fund. At present, more than 1 million corporate customers and developers, including some well-known enterprises, are using the company's cloud and data services.  Qiniu is planning to integrate the existing knowledge and industrial capabilities of its partner network to build a solid, multidimensional data ecosystem. As many traditional companies have opted for digital transformation, the data pools are getting boosted. Consequently, more firms are trying to leverage cloud services in their quest for higher industrial efficiency and innovation. To attract and serve more customers, cloud computing providers need to hire talents and invest in core equipment and related technologies. Relying on the Series F funds, Qiniu can improve their business, connecting the upstream and the downstream. China, which has become a prominent tech hub in the last decade, now presents multiple opportunities to the local cloud computing companies across a handful of industries.

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Jun 13, 2020 01:06 pm · news.qq

Alibaba Rents More Office Space in Hong Kong

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Jun 13, 2020 12:57 pm · sina

Haikou Qiongshan District Signs with Alibaba Group

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Jun 12, 2020 11:31 am · linkshop

Alibaba is incubating ‘Weiya’ overseas

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Jun 12, 2020 12:05 am · Chinastock

Alibaba Internet Fair Announces First Day Data

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