Jack Ma Steps Down as Director of Alibaba Group
According to the announcement of the Alibaba Group's annual shareholders meeting, Jack Ma will no longer serve as a director of Alibaba Group from now on in accordance with a series of inheritance arrangements two years ago.
China's E-Commerce Giants Announce Record Sales on Singles' Day 2020
The turnover on Alibaba's e-commerce platform Tmall, in the first 30 minutes of 2020's 'Singles' Day' shopping holiday (November 11) exceeded CNY 372.3 billion, surpassing the 2019 figure. After 35 minutes on November 11, Tmall had more than 300 brands with transaction volumes that broke 100 million. Meanwhile, Apple, Huawei, Midea Haier and other brands exceeded CNY 1 billion. As of 12 AM on November 12, the whole-day turnover of Tmall reached CNY 498.2 billion, an increase of 85.62% compared with 2019's CNY 268.4 billion.
The Taobao nemesis JD.com (JD:NASDAQ) announced that, as of 0:09 AM on November 11, the cumulative amount of orders had exceeded CNY 200 billion. The final turnover of JD.com on this year's Single's Day reached CNY 271.5 billion.
Private retailer Suning.com (002024:SZ) also made great progress this time, with the online sales growing by 75% between November 1 and November 11.
Pinduoduo (PDD:NASDAQ), one of the hottest Chinese stocks this year, has decided not to announce its sales data. The firm's officials said they focus more on whether their consumers enjoy the shopping process than transaction data.
Above all, the Single's Day festival this year is about more than surprising figures. From businesses to consumers, from foreign factories to fields, from live broadcast ecology to logistics systems, from offline commerce to technical support, from home to overseas, people are feeling the heat and power of consumption under the special background of COVID-19, which is adding more layers of meaning to this year's Single's Day.
China's Tech Titans Suppressed by New Antitrust Guideline
On 10 November, the Chinese State Administration for Market Regulation published the draft version of 'Antitrust Guidelines on the Platform Economy,' targeting the largest Chinese tech titans like Alibaba, Tencent, Meituan's market power in some areas.
The guideline is to curb monopolistic behaviors in the field of the Internet platform economy. It set out unregulated conducts, for example, unfair prices, lower than the cost selling, deal decline and different treatment to consumers. Behavior such as WeChat (from Tencent) banning Tik Tok's or Taobao's links may be illegal, according to the draft.
The guideline has resulted in BABA declining by around 9.5%, Tencent dropping by about 9.4%, Meituan and JD.com sinking by 9%, 7.3% respectively within two days from the time of the report.
Alibaba and Meituan are the 'victims' because of their incredible market shares and power. According to Equalocean's research, Alibaba owned 50.1% cake of China's E-commerce business in 2019. Based on Trustdata, Meituan grabbed the lion's share of 65% in the Chinese delivery food area over the same period.
Alternatively, CITIC Securities' analysts believe that the announcement harms Tencent the least as its market shares in related sectors have not let the company reach significant monopolistic positions. It may affect WeChat, but in gaming, advertisement, and finance landscapes, the social media giant hasn't dominated these spaces.
Alibaba: Solid 2Q 2020 Results as Stock Price Slips
Alibaba (09988:HK, BABA:NYSE) revealed its 2Q financials ending on 30 September, including revenue increased by 30% to CNY 155.10 billion, year-on-year. The primary growth consists of 26% and 60% rises in the core commerce business and cloud division.
Apart from the topline, BABA showed decent profitability, hitting CNY 47.53 billion Adjust EBITDA. Under the GAAP rule, the net income was down by 63% to CNY 26.5 billion, which is topped by 44% based on the non-GAAP standard.
The stock price slid by 4.34% in Hong Kong's Friday trading session on the news. It was also dragged down by Ant's stalled IPO two days ago.
Alibaba continues to expand all business lines. Core commerce revenue grew by 29% to CNY 130.92 billion, indicating many improvements. For example, the key performance indicator comprised of annual active consumers was 757 million by the end of Q3 2020, a net increase of 15 million. Tmall platform's gross merchandise value (GMV) grew 21% year-over-year. Besides, GMV generated by its live streaming portal 'Taobao Live' exceeded CNY 350 billion.
BABA's other commerce businesses like wholesale, international commerce, logistics and local consumer services all saw decent expansions.
Another key growth for the world's biggest online commerce company: Alibaba Cloud's revenue was up by 60%, hitting CNY 14.90 billion in this quarter, 10% of its total revenue. The company stated that it kept gaining traction from clients in the Internet, finance and retail sectors. By the end of Q3 2020, about 60% of public enterprises in A-share were using Alibaba Cloud.
In addition, Alibaba's digital media and entertainment topline lifted 8% to CNY 8.07 billion; innovation initiatives and others also jumped by 10%.
Alibaba Loses Nearly USD 70 Bn as Ant Group Postpones IPO
On the eve of its behemoth IPO, on November 3, the listing plans of Ant Group (688688:SH, 06688:HK) were put on hold on both Shanghai’s Star Market and Hong Kong bourse. Also, it is said that Ant CreditPay (Chinese: 花呗) and Ant Cash Now (Chinese: 借呗) are being divested from the group due to the requirement of 're-valuation of value.'
Late on November 2, a press release from China Security Regulatory Commission (CSRC) released the info that several state administratiors had interviewed the executives of Ant Group, including the actual controller, Jack Ma, the CEO Jing Xiandong and the president Hu Xiaоming, to discuss regulatory issues.
This might also be the reason for putting off the massive IPO. As an Internet company that deploys in the financial service industry, Ant Group's debut brings complex problems around supervision. Also, if the company goes public at the current valuation, the stock price will possibly drop, as stricter regulations are being put onto Internet fintech firms, something which ties up retail investors. It might be best, in the eyes of regulatory authorities, to postpone the plans so as to protect small investors.
The sudden news comes as a surprise, nonetheless. Alibaba (BABA:NYSE) opened 8% lower on Tuesday and it is actively running down, with around USD 67 billion in market capitalization lost.
Alibaba's 'Spring Thunder Plan' Helps Sell 800,000 Agricultural Products
Alibaba: 832 Counties Have Exceeded CNY 310 Billion in Sales in the Past 5 Years
Tmall: Hour-Delivery Service Has Covered 483 Cities Nationwide
Alibaba International Station: GMV in September Increases by 133% YoY
Du Haitao, Manager of Tmall's Marketing Division to Leave
China's Fourth Telecom Operator Established, Alibaba as Second Shareholder
Having been long dominated by the three major telecom operators – China Mobile (CHL:NYSE, 00941:HK), China Unicom (CHU:NYSE, 00762:HK), and China Telecom (CHA:NYSE, 00728:HK), the Chinese telecom operator industry now has another player on the table, namely the China Broadcasting Network International. The company is partly state-backed and partly held by private companies such as Alibaba – that company's (BABA:NYSE, 09988:HK) investment arm, with equity percentage at 9.88% , constitutes the second-largest shareholder.
Before the company's official establishment, the China Radio and Broadcasting group has already received the 5G network operation license from China's Ministry of Information and Technology (MIIT) in late 2019. The entrance of radio and broadcasting company into the telecom operator realm is inevitable, as the TV programs are transitioning from the local radio signal delivered to Internet-based. After the China Broadcasting participating in the operator business, it can be expected that the TV network in China can be the same as the mobile phone network, which breaks the current geographic constrains.
The company will release SIM card numbers that start with '192' to the Chinese consumers soon. As part of the strategic agreement that the China Broadcasting reached with China Mobile, the users of the former, which currently only have the 5G network services provided, can also access the 4G network provided by China Mobile.
Dada Break Its Record of Daily Order
Pinduoduo to Cultivate 50 New Cosmetics Brands in the Next Two Years
JD.com: Turnover Up 90% YoY on Double Eleven Day
JD: Air-Conditioning Orders Up 5 Times YoY During 'Double 11' Presale Period
Fruit Tea Drink Brand Sweet7 Nabs CNY 150 Million in Series A Round
JD.com: The Number of PLUS Members Exceeds 20 Million
Suning: Net Profit for the First Three Quarters to be CNY 503-753 Million
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