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China Business News Tuesday (2021-03-23)




News

1. Tencent Music Entertainment Group shows strong growth numbers.

As the leading online music entertainment platform (including QQ Music, Kugou Music) in China, Tencent Music Entertainment had 56.0 million (40.4% YoY) paying customers in Q4 2020. The payment rate increased to 9.0%, up from 8.0% in Q3 last year. Total revenues were USD 1.28 billion (14.3% YoY) with a net income of USD 183 million. Warner Music, the third of the three major global labels, has also signed a deal with Tencent Music Entertainment to enter into the fast-growing Asian market successfully.

Source: ·https://www.bbc.com/news/business-56479710, https://finance.yahoo.com/news/tencent-music-entertainment-group-announces-200500682.html

2. Baidu had its second listing in Hong Kong.

In its first ten years, Baidu was primarily a search engine. Now, however, the company has switched its focus to AI, such as deep learning, the operating system for artificial intelligence, automated driving, and AI chips. Through the IPO, Baidu raised USD 3.1 billion, which is needed to develop the AI businesses to market maturity. Though recently it has shown a fall in its price.

Source: https://36kr.com/newsflashes/1150037959624072

3. JD invests USD 800 million in Dada Nexus.

China's eCommerce company JD.com has made a significant USD 800 million investment in a complementary company. The company has bought shares of Chinese on-demand delivery service Dada Nexus, giving it a slim majority (51%) stake in Dada. This move is one of several to strengthen its position in the logistics industry, such as the planned JD Logistics unit IPO or the purchase of a majority stake in third-party logistics company Kuayue-Express Group.

Source: http://www.egsea.com/news/detail/838103.html

4. Powerbank rental service ahead of US IPO next week.

Powerbank rental service Energy Monster will have its initial public offering on Nasdaq on April 2 and is expected to rise to USD 500 million. The securities symbol will be "EM". Before the IPO, the founding team held a total of 12.4% of its shares. Given the share structure, the founding team still has the majority of voting rights and control. As of December 31, 2020, Energy Monster has more than 664,000 Operation Stations and more than 5 million mobile power banks in use all over China.

Source: https://mp.weixin.qq.com/s/-P853tfC0kdNesDh4HZH-w

5. ByteDance continues to acquire in the video game space.

ByteDance acquires Tencent competitor Moonton in a USD 4 billion deal. Nuverse, the video game unit of ByteDance (BDNCE), will acquire Chinese game studio Moonton Technology to increase its competitiveness against gaming giant Tencent. Moonton was founded by a former Tencent employee and is primarily known for multiplayer online battle arena gaming. Tencent reportedly made an offer to Moonton, but ByteDance outbid the offer.

Source: https://seekingalpha.com/news/3674754-bytedance-acquires-tencent-competitor-moonton-in-4b-deal

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