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China Business News (2021-03-25)



1.Former Xiaomi VP becomes the new CFO of ByteDance.


Chew Shou Zi, the former president of Xiaomi International Department, will join ByteDance as its CFO. This comes as a relative surprise, as Chew Shou Zi had just announced his retirement from Xiaomi. ByteDance's creation of the CFO role signals that it is moving towards a much-anticipated initial public offering.


Source: https://36kr.com/newsflashes/1151977349891461



2. Baidu chip division valued at CNY 13B in external investment.


Legend Capital has made an external investment in Baidu's chip subsidiary. The investment took place at a valuation of CNY 13 billion. Legend Capital has long focused on investments in the semiconductor and chip sector. The Baidu Kunlun Chip is a general cloud AI chip independently developed by Baidu. Baidu Kunlun-1 was successfully tested in 2019 and put into mass production in 2020. The Baidu Kunlun-2, which is under development, will reach mass production in the second half of 2021.


Source: https://mp.weixin.qq.com/s/ZVbx2Rc3JTC285KSEjposQ

3. ERP company Kingdee publishes disappointing figures.


Kingdee managed to achieve almost no growth and accordingly increased its revenue by only 0.9% to CNY 3.45 billion. This was justified by its cloud transformation strategy, with revenue in the cloud services business also increasing by 45.6%. The loss in 2020 was CNY 335 million, compared to the three-digit million profit last year. Kingdee is a Chinese company that is currently number one in cloud ERP systems in China.


Source: https://app.irlink.com.hk/api/companyDocument/605b1e584ce08a7ac3d76dd9/download

4. Tencent meets high Q4 expectations.


Tencent had revenue that amounted to USD 20,486 million (26% YoY) in the last quarter of 2020. Profit for the same quarter was USD 5.089 million (30% YoY). Compared to other technology companies, Tencent also invests a lot of its cash in startups. Still, total cash at the end of the quarter was USD 39,772 million. The revenue is mainly generated in 3 areas, which are Gaming (28% YoY), Online Advertising (22% YoY), and FinTech and Business Services (29% YoY). With WeChat, they now have over 1.2 billion users.

Source: https://finance.yahoo.com/news/tencent-announces-2020-fourth-quarter-092300911.html

5. ZTE announces ineffectiveness of US sanctions on their business.


On March 12, the US Federal Communications Commission (FCC) published a list of prohibited companies from operating in particular infrastructure. Now, ZTE from China has released a statement that the FCC's actions will only focus on replacing the devices and services on a list in local infrastructure in the US (rural areas and public facilities). The company claims that they will not be affected by a greater extent here and can continue to operate internationally inspite of these restrictions.


Source: http://www.egsea.com/news/detail/841071.html

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