China Business News (2021-03-24)

1.Tencent Music with the next important global partnership.

Following yesterday's deal with Warner Music, now major Korea's record label JYP Entertainment has signed a partnership with Tencent Music Entertainment. This will allow JYP Entertainment artists to distribute their music on Tencent Music's platform in the future. This will include joint marketing, live stream events, and other promotional materials. Through this, K-Pop greats such as 2PM, J.Y. Park, DAY6, TWICE, Stray Kids and ITZY, expand their influence in China.


2. Kuaishou publishes rather disappointing full-year 2020 results.

The average daily active users continued to grow and are now 264.6 million (+50.7% YoY). The expectations in terms of revenue were not meet because they only achieved revenue of CNY 58.8 billion (YoY 50.2%). The net loss has now increased by a factor of five toCNY CNY 103.2 billion in 2020. The reason is an increase in the fair value of "convertible and redeemable preferred shares". Also interesting to see is that the revenue drivers clearly shifted from live streaming to online marketing services. In Q4, online marketing services were the largest revenue driver for the first time.


3. BiliBili has an insane run on its secondary listing.

Video platform Bilibili will have its secondary listing on March 29 with the stock symbol 09626.HK. In the process, BiliBili has now been oversubscribed more than 170 times, making it one of the companies with the highest subscription multiples at its secondary listing. BiliBili's current stock market valuation at theNasdaq is USD 37.34 billion, although the company still has negative earnings and is betting heavily on growth.The secondary listing will provide the liquidity required for the expansion.


4. Dalian Wanda Group plans to go public in Hong Kong.

Dalian Wanda Group is a Chinese multinational conglomerate and one of China's largest private real estate developers. They also own the cinema chainWanda Cinemas. Its real estate development business is primarily focused on developing commercial properties, including shopping malls, urban pedestrian malls, hotels, office buildings, and apartments. Dalian Wanda has attracted international attention with their investment and disinvestment in the largest American cinema chain AMC Theatres.


5. Cancer cell therapy company raised CNY 500 million in D round.

The Shanghai Cell Therapy Group has raised CNY 500 million in a funding round which is jointly made by Jiuzhou Venture, Haier Capital, and CCB International. The capital will be used for further product research and development. The company is a cellular diagnostic center provider combining cellular research and treatment services. The company engages in cellular cold storage, cellular pharmaceuticals, antibody research. According to the Fiormarkets Report, the global cell therapy technology market exceeds USD 34 billion by 2025.


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