Tag: tencent

  • Tencent Ordered to Restructure Financial Units

    Tencent Ordered to Restructure Financial Units

    Similar to rival Ant Group, Tencent has also been ordered to set up a holding company to contain its finance-related businesses.

    Regulators told Tencent to place its finance-related businesses into a new financial holdings company for better supervision, according to a Caixin report citing unnamed sources.

    This follows a report last month that said top financial regulators summoned 13 tech giants – including Tencent – to discuss tighter restrictions across various areas including payments linked to financial products, customer data collection, and credit scoring services.

    Tencent and its peers are following a similar path to that of Ant Group which was first to face restructuring to become a financial holding company after it was ordered to do so by China’s central bank.

  • Chinese Fintech Giants Join Efforts to Calm Markets

    Chinese Fintech Giants Join Efforts to Calm Markets

    Chinese fintech giants Ant Group and Tencent are the latest to attempt to inspire calm in markets after they told investors not to overreact to price swings and avoid making hasty decisions.

    Alipay, Ant Group’s payment arm, issued a letter earlier this week in its app to urge investors to take a longer-term view on the stock markets, which have seen turbulent swings erase $1.3 trillion from the CSI 300 index two weeks after reaching a 13-year high.

    According to the letter by a think tank under Ant Fortune – a wealth management platform within Alipay that provides access to over 6,000 funds – volatility is a natural characteristic and driver of returns for equities. Short-termism could result in investors «buying high and selling low», it said, adding that full panic in the market could signal that stocks have bottomed out.

    Earlier this month, Tencent’s wealth management platform also posted an article earlier this month, reminding investors that the majority of companies that generate high returns have previously seen a significant correction of share prices.

    The fintech duo’s warnings to investors coincide with efforts by Beijing to also inspire calm in markets.

    Chinese authorities are reportedly injecting funds to support the market via its so-called «national team» and censoring search phrases on social media.

  • Chinese shopping app Xingsheng Youxuan raises US$2 billion in funding

    Chinese shopping app Xingsheng Youxuan raises US$2 billion in funding

    Chinese community grocery shopping app Xingsheng Youxuan has raised about US$2 billion in a new funding round that values the company at US$6 billion prior to the fresh capital injection, three people with knowledge of the matter said.

    Private equity firms FountainVest Partners, Primavera Capital Group and KKR & Co are among investors in this round, two sources said. Internet and gaming giant Tencent Holdings, which is an early backer of Xingsheng Youxuan, also invested in this round, one of them said.

    The fundraising signed just before the Lunar New Year, was led by Sequoia Capital China and has also attracted property developer China Evergrande Group and Singapore’s sovereign wealth fund Temasek, said a separate person with direct knowledge.

    Xingsheng Youxuan’s spokesman Li Hao declined to comment when contacted by Reuters. Representatives for Sequoia China, FountainVest, Tencent and Temasek declined to comment.

  • Washington Mulls Alibaba and Tencent Ban

    Washington Mulls Alibaba and Tencent Ban

    Just weeks before the end of the current U.S. administration, authorities are reportedly discussing the expansion of a blacklist of companies linked to China’s military with the inclusion of major tech giants, Alibaba and Tencent.

    Discussions considering the inclusion have been underway for a few weeks amongst State and Defense Department officials, according to a report citing unnamed sources.

    The original blacklist was released in November with 31 companies including the likes of surveillance firm Hikvision and semiconductor maker SMIC.

    Most recently, the Chinese military investment ban also included an unusual case involving China Mobile, China Telecom and China Unicom Hong Kong. After an initial decision to delist the three Chinese telecommunication firms, the New York Stock Exchange (NYSE) reversed the call this Monday before making yet another reversal on Tuesday.

    Sources said that there was ambiguity about whether or not the aforementioned firms were subject to the bans which subsequently led U.S. Treasury Secretary Steven Mnuchin to phone NYSE president Stacey Cunningham to tell her he disagreed with the decision to reverse the delisting.

    The investment bans are part of a series of moves made by the Trump administration to drive decoupling between U.S. capital and the Chinese economy.

    In addition to military-linked companies, Washington also seeks to tighten on Chinese firms that fail to pass U.S. auditing standards, pressuring them with the prospects of delisting from American bourses.

    This follows a series of headline accounting scandals amongst U.S.-listed Chinese companies such as the $300 million inflation of sales figures at Luckin Coffee or 83 tons of collateralized fake gold bars at Kingold.

  • Tencent to Launch Regional Hub in Singapore

    Tencent to Launch Regional Hub in Singapore

    The Chinese technology conglomerate is pushing ahead with global expansion plans, despite recent app bans in India and the United States. Tencent is planning to open a new office in Singapore, which will be its regional hub for Southeast Asia, where it also has offices in Malaysia, Indonesia, and Thailand, the company said in a statement on Tuesday.

    The Singapore office will also enable us to capture potential from the rapid pace of digitization and meet the demand for internet-based services and solutions in Singapore, Tencent said in a statement. Tencent’s cloud computing arm, which seeks to tap into the demand for remote IT services for home-based workers, as well as its financial cloud platform that provides digital banking services to small and medium enterprises, have been growing in the region amid the coronavirus pandemic.

    The company had been discussing Singapore as a potential regional hub and geopolitical tensions accelerated its plans, according to a Bloomberg report. The company is already hiring for software engineers, data analysts, business development, and compliance roles in the city-state, according to its careers portal.

    Singapore, with its business-friendly policies, is benefitting from the growing hostility towards Chinese tech firms in the U.S. and other markets. Chinese tech start-up ByteDance, the owner of video-sharing app TikTok, are among those which are shoring up its presence in the country, where it is looking to spend several billion dollars and add hundreds of jobs here over the next three years.

    U.S. President Donald Trump has banned U.S. entities from dealing with Tencent’s super-app WeChat from September 20, while the company’s hit games PlayerUnknown’s Battlegrounds (PUBG) Mobile and Arena of Valor are banned in India.

  • Tencent profit beats expectations after strong demand for games

    Tencent profit beats expectations after strong demand for games

    Chinese gaming and social media giant Tencent Holdings said second-quarter net profit rose 37 percent, beating market estimates, on higher demand for its video games as coronavirus put a dent in other entertainment options.

    Revenue from online games, which accounts for one-third of total sales, jumped 40 percent in the quarter, primarily driven by smartphone games including Peacekeeper Elite and Honour of Kings. That offset a continued decline in desktop games.

    Social networks, fintech and business services, and social advertising revenues all grew by nearly 30 percent.

    Media advertising revenues fell by 25 percent however, “as a result of weak brand advertising demand amid the challenging macro environment”, and delayed content production and releases.

    The world’s largest gaming firm by revenue booked a US$4.8 billion profit for the three months through June. Revenue rose 29 percent to $16.5 billion.

    The results come a few days after the US said it would ban WeChat-related transactions in the country.

    Tencent, which owns the Chinese messaging app, is under pressure to address concerns about the impact of the ban and outline its plans to mitigate any fallout.

    The company has also postponed a blockbuster release of “Dungeon and Fighter Mobile” game planned for August 12, citing upgrades needed to the game’s addiction prevention system.

  • Burberry teams with Tencent to launch world-first social-retail store

    Burberry teams with Tencent to launch world-first social-retail store

    Luxury fashion label Burberry has teamed with technology giant Tencent to launch its first social retail store in Shenzhen, China. Located in the new Shenzhen Bay MixC development, the Burberry social store features a unique design with a variety of materials and textures ranging from plywood to mirror and high-gloss finishes. Occupying a 539sqm area, the storehouses 10 different rooms.

    The Burberry social store offers a wide range of items including the brand’s latest collections and pieces exclusive to the Shenzhen store. All the stock is labeled with QR codes which when scanned show information on the customer’s digital screen. This is the brand’s first store to have QR codes on product swing tags.

    When entering the store, customers are welcomed by an interactive window. Inspired by the brand’s mirrored runway, the window illustrates the visitors’ shape and response to body movement. The window changes through the seasons to reflect the latest collections and house codes.

    Burberry’s fitting rooms feature three different concepts reflecting the label’s house codes – the Burberry Animal Kingdom, Reflections, and the Thomas Burberry Monogram.

    Named after the fashion house’s founder, Thomas’s Cafe features a modern yet elegant design with high-gloss tones of beige, curtains, and chamfered mirroring. The cafe can be converted into a community space for social events such as workshops, exhibitions, and live performances.

    The social store also houses a Trench Experience space, designed with digital technology to “bring Burberry’s heritage of exploration to life and creating unique and personal content for the customer to share on social media”.

    “This store explores this relationship, blending the digital and the physical realms in an exciting new concept,” said Riccardo Tisci, chief creative officer at Burberry.

    “I wanted to bring this love of the outdoors to life through all the elements of the store, which can be seen in the Burberry Animal Kingdom prints in the cafe as well as in the fully immersive Trench Experience and even in the small details of the design materials. I really wanted to draw upon these familiar house codes to bring our community together in an interactive journey of discovery,” Tisci said.

    “When it came to innovating around social and retail, China was the obvious place to go to, as home to some of the most digitally savvy luxury customers,” said Marco Gobbetti, CEO at Burberry.

    The Burberry social retail store offers an interactive experience through Tencent’s WeChat mini program which allows customers to unlock exclusive content and personalized experiences.

    “… Burberry’s social retail store in Shenzhen is a place of discovery that connects and rewards customers as they explore online and in-store. It marks a shift in how we engage with our customers and we can’t wait to share this innovative experience with the world,” Gobbetti said.

    The mini-program also provides a platform where customers can explore the store and product, book in-store appointments, and reserve events or tables in the Thomas cafe and community space.

    The WeChat mini program also features a rewards program called “social currency” where customers are allocated characters and can engage with others. Customers can unlock exclusive content and personalized experiences by building their social currency. Rewards range from cafe menu items to mini-program content.

    The Burberry social retail store is a unique space to test and learn, and to trial innovation that can be expanded to the rest of the Burberry network in China, the company said in a statement.

    Burberry signed an exclusive partnership agreement with Tencent last year to develop social retail in China. The Shenzhen social store is the first step in the partnership, taking interactions from social media into a physical retail environment.

  • Tencent to help Tim Hortons China roll out over 1,000 outlets

    Tencent to help Tim Hortons China roll out over 1,000 outlets

    Chinese social networking and gaming giant Tencent is partnering with Tim Hortons China to expand the Canadian coffee house’s rollout.

    Tencent announced the partnership on its Chinese social media accounts without disclosing any financial details.

    Tim Hortons China has traded since early last year and is expected to use the new funding to set up a WeChat app as well as opening new physical locations outward from its highest concentration of stores in Shanghai. The firm has set a general initial target of 1500 outlets in the territory.

    The firm may be taking a leaf out of Starbucks’ former arch-rival Luckin Coffee’s playbook in focusing on digital business. Luckin expanded swiftly in China using the strategy before becoming embroiled in a financial fraud scandal.

  • Tencent costs surge as competition Bytes

    Tencent costs surge as competition Bytes

    Soaring costs saw Tencent Holdings report a net income of US$13 billion for last year, after a slow fourth quarter, which concerned analysts given the subsequent impact of the coronavirus crisis since January.

    Costs rose 20 percent last year as the social media and digital company spent money buying new content and securing new users to its WeChat and other platforms to protect itself from fast-growing rival ByteDance, parent of TikTok.

    Group revenue topped US$53.3 billion for the year but its cost of sales reached $29.7 billion.

    Tencent said its online gaming revenue grew by 25 percent, the fastest rate since the first quarter of 2018 and sales of smartphone games soared 37 percent.

    The company said more gamers signed up to its services in January as the coronavirus crisis forced people to stay home, with schools, universities and workplaces closed for an extended period.

    Net fourth-quarter income was $3.1 billion.

  • Tencent’s WeBank to Power China’s Blockchain Network

    Tencent’s WeBank to Power China’s Blockchain Network

    The Shenzhen-based firm will provide the tech for the country’s national blockchain consortium. WeBank, China’s first digital bank, will provide the technical infrastructure for the country’s nationwide blockchain-based service network (BSN), according to a Chinese state media report.

    BSN plans to offer infrastructure services for any Chinese or international entity that uses blockchain. According to the agreement, BSN will use WeBank’s open-source FISCO BCOS blockchain application ecosystem, and WeBank will provide technical support and training for BSN developers, the report said.a

    China is attempting to build a nationwide blockchain network to serve a range of state-controlled public services across the country, including telecommunications and energy management.

    Users in various industries often face dilemmas such as high cost of forming a chain, heterogeneity of the underlying platform, and inability to interact with data. Promoting the construction of public infrastructure at the bottom of the blockchain has become the meaning of pursuing the development of the digital economy, the report said.

    Led by the State Information Center, a think tank affiliated with the National Development and Research Commission, China’s highest central planning agency, the BSN consortium includes firms like WeBank, Huobi China, UnionPay, China Mobile and China Telecom.

    The project has been tested in 25 cities across China as well as Hong Kong and Singapore. It is expected to be tried out in more than 200 cities by 2020.

  • Tencent launches first overseas video streaming in Thailand

    Tencent launches first overseas video streaming in Thailand

    Chinese tech giant Tencent Holdings Ltd launched its first overseas video streaming service in Thailand on Friday, as it ramps up its presence outside China.

    Tencent is diversifying from its core Chinese gaming business, which has been beset by regulatory problems, pushing revenue growth to its slowest-ever in the first quarter.

    Tencent’s existing Thai user base made the country a good first target for its push into Southeast Asia, said Jeff Han, Senior Vice President of Tencent Penguin Pictures, which produces original content for the streaming business.

    “This is the market we need to first enter to try to see whether an overseas launch could be a success for us, so we can continue the challenge,” Han told reporters in a group interview in Bangkok.

    “We have our priority markets… the Chinese-speaking markets, which will be more receptive to our offerings,” he said.

    In Thailand, Tencent Video will be called WeTV and feature original Chinese content from Tencent Penguin Pictures with Thai dubbing, and content created with local partners, Han said.

    He declined to comment how much the company was investing overseas.

    WeTV adds to Tencent’s music streaming service JOOX and the mobile version of PUBG games in Thailand.

    Tencent’s video streaming subscriptions increased 43% in the first quarter of 2019 on an annual basis, contributing to a growth in digital content revenue, according to its latest results.

    Tencent Video in China claims over 89 million subscribers and more than 200 million daily active users.

  • Amazon listed as most valuable brand

    Amazon listed as most valuable brand

    E-commerce giant Amazon has clinched the top spot in the world’s most valuable brand ranking, surpassing Google and Apple, according to a recently released ranking of global companies.

    The Seattle-based retailer has been valued at US$315.5 billion, up 52 per cent on last year with tech giant Apple coming in second, valued at $309.5 billion and Google in third place at $309 billion, Brand Z’s Top 100 Most Valuable Global Brand 2019 ranking (compiled by WPP research agency Kantar) revealed.

    Google and Apple had spent a combined 12 years at the top of Brand Z’s list, with Google taking the top spot last year.

    “Amazon’s smart acquisitions that have led to new revenue streams, excellent customer service provision and its ability to stay ahead of its competitors by offering a diverse ecosystem of products and services, have allowed Amazon to continuously accelerate its brand value growth,” Brand Z’s report indicated.

    Chinese e-commerce company Alibaba has overtaken Tencent for the first time to become the most valuable Chinese brand, moving up two places to number seven, growing 16 per cent to $131.2 billion.

    Tencent dropped three places to number eight, declining by 27 per cent to $130.9 billion year-on-year.
    Social media platform Facebook has retained its sixth spot while Instagram, at number 44, was named as this year’s fastest riser, climbing 47 places with a massive 95 per cent growth in brand value with $28.2 billion.

    Athleisure retailer Lululemon was named the second fastest riser, showing a 77 per cent growth year-on-year to $6.92 billion.

    “We’re seeing a move from individual product and service brands to a new era of highly-disruptive ecosystems,” said David Roth, CEO of The Store WPP EMEA and Asia and chairman of Brand Z.

    “Brands need to understand the value this type of model can create and should embrace its approach to be successful in the future,” Roth said.

  • Tencent-backed AI startup checks students’ math homework

    Tencent-backed AI startup checks students’ math homework

    In China, there is a big culture of ‘practice makes perfect’. As such, school homework is a battlefield not only for Chinese children, but also for their parents, and teachers, who have the task of reviewing assignments. Technology is increasingly lending a helping hand, though, and now, a Beijing-based online education startup has developed an artificial intelligence-powered math app that can check children’s arithmetic problems through a simple snap of a photo. Based on the image and its internal database, the app automatically checks whether the answers are right or wrong.

    Known as Xiaoyuan Kousuan, the free app launched by the Tencent Holdings-backed online education firm, has gained increasing popularity in China since its launch a year ago. It claims to have checked an average of 70 million arithmetic problems per day, saving users around 40,000 hours of time in total.

    Yuanfudao is also trying to build the country’s biggest education-related database generated from the everyday experiences of real students. Using this, the six-year-old company, which has a long line of big-name investors, including Warburg Pincus, IDG Capital, and Matrix Partners China, aims to reinvent how children are taught in China.

    “By checking nearly 100 million problems every day, we have developed a deep understanding of the kind of mistakes students make when facing certain problems,” said Li Xin, co-founder of Yuanfudao (which means “ape tutor” in Chinese) in a recent interview. “The data gathered through the app can serve as a pillar for us to provide better online education courses.”

    Yuanfudao is China’s second largest online education unicorn by valuation, according to CB Insights. It is behind VipKid, which uses an online platform to connect Chinese students with North America-based teachers to learn English via livestreaming.

    Yuanfudao’s flagship app covers different subjects including math, English, and chemistry. Li said the firm has built a database with student answers to 6 billion questions. He said this know-how has enabled Yuanfudao to better analyze individual students, helping it towards the ultimate goal of providing tailor-made courses and homework.

    Li said the company’s aim is to “dramatically improve education efficiency in China.”

    “Giving different homework to different students even if they study in the same class is even more difficult than providing different news to different readers based on their individual interests and tastes,” said Li. “What we do requires a more accurate profiling of students.”

    Li said that the company’s flagship online tutoring app can produce a basic profile of a student’s strengths and weaknesses based on their answers to three to five questions.

    Founded in 2012, Yuanfudao, which has 200 million users (2 million of whom are paid users) bagged US$300 million in a round of funding in late December, valuing the company at more than US$3 billion. The Chinese online education market is hot, attracting increased interest from technology giants such as Tencent, Baidu, and NetEase in recent years.

    “We don’t really need money, but investors insist […] [on offering more funds]. We still had US$100 million in our bank account before landing this round,” said Li. He said the company was immune to the so-called tech winter, which has seen the venture capital pool almost dry up in China recently.

    Despite a recent slowing of China’s economy, the country’s online education market – covering children from kindergarten age to high school – is set to triple to 150 billion yuan (US$22.33 billion) by 2022, according to data from iResearch, fueled by ambitious “tiger” parents who are prepared to invest heavily in their children’s after-school education.

    Li said it was not his intention to make children work harder.

    “We don’t want children to drown in a sea of homework,” he said. “In the old days, you needed to put in lots of work and practice to stand out. But now technology can make a change.”

    Using AI technologies, the company has already made it possible to recommend different courses to students based on their individual progress on a certain subject. Li said the company can even help to close the educational gap between developed and underdeveloped regions in China through a deep analysis of students’ homework.

    The company has another popular homework assistant app, Xiaoyuan Souti, which uses similar image recognition technology to find answers to student questions across a range of subjects, guiding them through the steps needed to solve particular problems.

    “Through the app, we know exactly what kind of questions teachers in Shanghai assign as homework to students,” Li said. “By collecting the information and studying it, we can enable students in the rest of China to have access to Shanghai’s education resources, in the long run [providing] a fair education environment for all children.”

    “At the end of the day, the only thing that matters in education is one’s curiosity and cognitive ability,” he said.

  • Chow Tai Fook Jewellery Group, WeChat signed agreement deal

    Chow Tai Fook Jewellery Group, WeChat signed agreement deal

    Chow Tai Fook Jewellery Group has signed a memorandum of understanding with Chinese online platform Tencent to allow jewellery purchases using WeChat Pay. In a move to promote “seamless cross-border intelligent consumption”, the agreement allows Hong Kong WeChat users to use the platform’s digital payment solution to make purchases at specified Chow Tai Fook jewellery stores in Mainland China.

    The group is planning steps to activate WeChat Pay HK within more Chow Tai Fook Jewellery stores in the Greater Bay Area, as well as other cities throughout Mainland China. It is also seeking to extend the payment agreement to its other brands.

    “Striving for innovations and breakthroughs, we are committed to providing seamless and exceptional consumer experience through a wide range of innovative projects,” said Chow Tai Fook executive director Bobby Liu. “The introduction of advanced technology has made the convenience in offering cross-border consumption, online payments and an integrated online-to-offline shopping experience available to customers from Hong Kong.”

    Tencent Financial Technology VP Royal Chen said the collaboration with Chow Tai Fook Jewellery Group will fully make use of the available mobile payment technology.

    “Tencent Technology will vigorously promote cross-border financial cooperation. Leveraging financial and technological advancements, we aim to build a truly integrated service platform for those living in both Hong Kong and Mainland China.”

    Tencent Fin-Tech and Chow Tai Fook will also jointly explore and research proposals for ID verification in order to ease the flow of capital and manpower resources across the border.

  • Macy’s, Tmall contract completely over

    Macy’s, Tmall contract completely over

    Macy’s China stopped taking orders on Tmall this week and will close its operations by the end of the month. The US department store business said it chose not to renew the contract with Alibaba’s Tmall which ends on December 31. “We sincerely thank you for your support and love of Macy’s, and we will continue to provide services to you through the American website Macys.com,” the US retailer said in a statement.

    Just two years ago, in an interview, Macy’s China president Dustin Jones assured customers that the company would not leave China. “We will become [a] Chinese Macy’s,” he said.

    That comment followed the closure of the company’s brick-and-mortar stores in Mainland China. Macy’s subsequently closed its own China website last June.

    Since 2015, the Macy’s China business has been operated in partnership with Hong Kong-based Fung Retailing.

    Beijing-based retail analyst Liu Dingding said that Macy’s China failed because it could not keep up with the fast-changing and diversified demands of Chinese consumers.

    “The market in China is changing much faster than those in the US and Europe. These Western giants seem to react a bit slower than their Chinese counterparts,” said Liu.

    Securing a local partner was one way of ensuring success in the market – as WalMart and Carrefour’s partnerships with Tencent have shown, said Liu. That way they can localise their offer and learn from Chinese experience.

    “[Western retailers] have built up operating experience with years of success back home. But before applying this experience in their Chinese operations [they should] respect Chinese culture, hire more Chinese executives and try to adjust the way that they have operated for years back home.

    “That’s the first step to gaining a foothold in the Chinese market,” Liu said.