1. Tencent Music appoints new CEO and Chairman
Tencent Music Entertainment Group on Thursday appointed Zhu Liang as the new CEO and Cussion Kar Shun Pang as the new executive chairman of the board, effective immediately. Zhu previously served as the vice-chairman of Chinese tech giant Tencent Holdings, which controls Tencent Music. The Chinese music streaming platform announced that Tong Tao Sang, the company's current chairman, will step down from all his posts. This change is not unexpected, as there have been increased adverse reports in recent months, and the share price had plummeted in March.
2. Logistics service provider STO Express publishes weak 2020 figures
STO Express has released its financial figures for 2020. The company has generated revenue of CNY 21.56 billion (YoY -6.60%). The net profit was CNY 37 million last year (YoY -97.36%). The reason for the poor result is said to be more severe competition, which causes the market price for deliveries to fall. Consequently, it has also raised more debt capital to improve the customer expansion and service capabilities of its franchise stores.
3. Retail giant Suning delivers excellent Q1 figures
Suning has announced that it expects to post a net profit of CNY 450-550 million for the first quarter of 2021. Last year, the company posted a loss of CNY 550 million in the same period. In the first quarter of 2021, the company focused on its main retail business and fast-growing retail e-commerce business. It also cut many costs by reducing staff and marketing. It is also trying to optimize its express delivery business, which is still losing money.
4. Tencent to raise USD 4 billion through a bond deal
Sources say that Tencent aims to raise USD 4 billion from a bond deal, which would be its second major fundraising deal in a year. According to a term sheet that could be viewed, the contract was issued with 10/20/30/40-year tranches, though it did not give an exact figure for the deal. Tencent raised USD 6 billion last May and issued a 40-year bond for the first time. The company intends to use the proceeds from the capital increase for general corporate purposes.
5. WM Motor postpones IPO due to problems in listing materials
It was announced today that WM Motors had suspended its IPO application with the Shanghai Stock Exchange. People from State Investment Corporation said that many problems were found during the review of WM Motor's listing materials. WM Motor has already responded to the rumors, saying that there were new tightening policies while waiting for the IPO. As a consequence, it is not possible to define the exact IPO at the moment.