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China Business News (2021-04-09)

1. Meitu invests USD 10 million in bitcoin

Meitu announced that it would spend USD 10 million to buy bitcoin. This means the company has then bought Bitcoin for a net purchase value of about USD 100 million. The market responded positively to the news, with Meitu's stock rising more than 7%. Meitu is a Chinese mobile photography and video app company, including proprietary facial recognition and virtual makeup try-on technologies.


2. Internet logistics specialist about to go public in the US

The Manbang Group is about to go public in the United States. The company is looking to raise more than USD 1 billion, with a market value of USD 22 billion to USD 30 billion. Industry experts expect Manbang to make its ambitions public soon. The IPO is scheduled to take place in late April or early May. Manbang is currently the largest intercity vehicle logistics and vehicle-to-cargo information matching service provider in China. Manbang Group is a merged company between Chinese Uber-like truck logistics unicorns Yunmanman and Huocheban.


3. Logistics giant S.F. Express surprisingly warns about Q1 losses

S.F. Express had earned a net profit of CNY 907 million in Q1 last year and has now announced that they expect a net loss in Q1 between CNY 900 million to 1.1 billion. Reasons for this enormous loss are mainly expansion and growth requirements that have now been moved to the current year due to last year's pandemic and the intense competition for orders, which currently result in a price war. The news has caused a 10% drop in their share price.


4. U.S. lawsuit against Baidu over Chinese internet laws is dismissed

A U.S. judge has dismissed a lawsuit accusing Baidu of deceiving its shareholders about its compliance with Chinese Internet content regulations. The case was filed last April, shortly after the Cyberspace Administration of China, China's Internet regulator, ordered Baidu to stop distributing "substandard content." The class-action lawsuit stems from Baidu's allegedly false and misleading statements to drive up its stock price. During the investigation, no evidence of intent to defraud was found.


5. ByteDance further attacks eCommerce companies Alibaba, JD, PDD

ByteDance is developing an independent eCommerce app to attack the existing eCommerce market further. The company has a long history with eCommerce as they established their first eCommerce business called "Today's Sale" back in 2014. The user traffic that ByteDance has through Tiktok and Douyin at present could be monetized even more while also expanding their customer relationships even better.


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