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Tag Archives: JD.com
Jingdong (jd.com) latest Business & Financial news from Doug Young, the Expert on Chinese High Tech Market, (former Journalist and Chief editor at Reuters)
Bottom line: 58.com’s new Ganji tie-up looks like a smart partnership that should create a clear industry leader with a strong strategic partner in Tencent, though the stock could be set for a short-term correction due to overvaulation.
58.com buys 42 pct of Ganji
China’s Internet has just gained a major new player through the combination of online classified sites 58.com (NYSE: WUBA) and Ganji, which together will have a market value approaching the $10 billion level. Few companies outside the “Big 3” of Baidu (Nasdaq: BIDU), Tencent (HKEx: 700) and Alibaba (NYSE: BABA) can boast such valuations, and this particular deal seems to mark the emergence of a new sector leader that could even become an acquirer on the global stage.
Of course it’s easy to talk about going global, but actually doing that has been far more problematic for China’s booming field of Internet players. Still, this latest deal appears to show that 58.com may have the savvy that some of its larger rivals lack to make the global push, perhaps using this Gangji deal as a template for more strategic acquisitions in developing markets similar to China. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 16. To view a full article or story, click on the link next to the headline.
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Legend Group Files For Hong Kong IPO, 2014 Profit Reaches 4.1 Bln Yuan (Chinese article)
Alibaba Injects $2.5 Bln Online Pharmacy Business Into Alibaba Health (HKEx: 241) (English article)
Bottom line: Poorly run traditional supermarkets like Lianhua are destined for extinction in the next 5-10 years as they get overtaken by the rapidly rising e-commerce names like Yihaodian and JD.com.
Tired Lianhua sells stake to Yonghui
A couple of supermarket headlines are casting a spotlight on a Chinese market that is rapidly transforming, putting pressure on traditional stores operated by domestic players like Sun Art (HKEx: 6808) and global chains like Carrefour (Paris: CA). The first headline has Shanghai-based operator Lianhua (HKEx: 980) selling a major stake of itself to smaller but more nimble rival Yonghui (Shanghai: 601933) in a $120 million deal. The second has Yihaodian becoming the first online grocer to break into an important annual industry ranking list, underscoring the rapid rise of Internet-based supermarkets. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 10. To view a full article or story, click on the link next to the headline.
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Bottom line: Dangdang’s growth is likely to slow rapidly over the next 2 years as it gets marginalized by larger rivals, putting pressure on its owners to sell the company before it sinks back into the red.
Dangdang posts strong profit growth
Investors were breathing a big sigh of relief after reading the latest quarterly results from Dangdang (NYSE: DANG), as an ongoing turnaround at the former e-commerce leader boosted both its top and bottom lines. The news erased concerns that sparked a sell-off just a couple of weeks earlier, after the company unexpectedly announced a last-minute delay in the release of earnings report for unspecified scheduling reasons.
While the Dangdang fears were ultimately unfounded, the same hasn’t been true for former online video high-flyer Youku Tudou (NYSE: YOKU). In that instance, Youku Tudou played a similar scheduling trick for the release of its earnings report around the same time, and ultimately served up gloomy results. It also disclosed it was being probed by the US securities regulator for aggressive accounting that may have been illegal. (previous post) Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 1. To view a full article or story, click on the link next to the headline.
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China To Delay Bank Tech Restrictions, US Treasury Official Says (English article)
Merged Didi, Kuadi Taxi App Value Could Reach $8.75 Bln After New Stake Sale (Chinese article)
Bottom line: Apple Watch should debut strongly in China thanks to extensive partnerships with top Chinese retailers and app makers, giving the product instant relevance in the local market.
Apple Watch coming to China
Global gadget leader Apple (Nasdaq: AAPL) has been in the local tech headlines nonstop these last few days, wowing Chinese fans with a customized version of its new Apple Watch that will debut in China next month as part of its global launch. Pundits are mixed on how the watch will fare in China, but I expect it should do quite well thanks to inclusion of China’s hottest apps together with the company’s own strong reputation for well-designed, cutting-edge products.
In a separate but probably related Apple headline, media are also reporting a new smart air conditioner that the company has developed with local appliance leader Haier (HKEx: 1169) will also debut in April. Apple first announced this alliance last June as part of a broader smart device alliance under the name of HomeKit, and I suspect the Apple Watch will be usable with these new air conditioners. Read Full Post…
Bottom line: Carrefour’s new China strategy ends a period of uncertainty about its commitment to the market, though its move into e-commerce is long overdue and could fail due to its lateness.
Carrefour decides to stay in China
After sending a stream of mixed signals over the last 2 years about its commitment to China, global retailing giant Carrefour (Paris: CA) has finally decided it will stay in the market for now, but only after overhauling its operations. The decision will see the company do a major consolidation of its procurement centers, and also push into convenience stores and e-commerce. The signals seem to imply that the days of rapid expansion for its core chain of superstores is probably finished, with e-commerce and smaller stores likely to form the bulk of its China expansion going forward. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 7-9. To view a full article or story, click on the link next to the headline.
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Amazon (Nasdaq: AMZN) China Opens Store on Alibaba (NYSE: BABA) Tmall (English article)
Momo (Nasdaq: MOMO) Announces Q4, Full Year Financial Results (Globe Newswire)
JD.com (Nasdaq: JD), iFlytek (Shenzhen: 002230) In Smart Home Products JV (English article)
The following press releases and media reports about Chinese companies were carried on March 4. To view a full article or story, click on the link next to the headline.
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Obama Sharply Criticizes China’s Plans For New Technology Rules (English article)
ZTE (HKEx: 763) Doubled 4G Shipments, Global Share Exceeded 25 Pct In 2014 (Businesswire)
JD.com (Nasdaq: JD) Announces Q4 And Full Year 2014 Results (Globe Newswire)
China Overtakes US At The Box Office In February (English article)
Li Dongsheng Becomes Biggest TCL (Shenzhen: 000100) Shareholder After New Placement (Chinese article)
Bottom line: China’s Internet companies should create a code of conduct to ensure fair competition, and the regulator should step in when they abuse their market dominance to promote their other products.
WeChat freezes out Alibaba
Internet giant Tencent (HKEx: 700) was in the headlines for much last week, as reports circulated that it had cleansed its popular WeChat mobile messaging platform of several services from rival Alipay, the popular electronic payments unit of rival Alibaba (NYSE: BABA). Tencent certainly isn’t alone in this kind of “freeze out” behavior, which has become a unique characteristic in China’s brutally competitive Internet landscape. Read Full Post…
