|Bid||9.100 x 0|
|Ask||9.110 x 0|
|Day's Range||9.100 - 9.280|
|52 Week Range||8.910 - 22.200|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||17.65|
China technology stocks Lenovo and Xiaomi are both popular with investors. But here are three reasons why I think Lenovo is the better pick.
China's Xiaomi Corp has taken a stake of roughly 6% in compatriot chip designer VeriSilicon Holdings Co Ltd, as the smartphone maker revamps its years-long pursuit of success in semiconductors which it sees as central to driving innovation. The investment comes as the government identifies chips as one of several sectors in which it wants the country to become more self-reliant under its "Made in China 2025" initiative. In a filing to the China Securities Regulatory Commission (CSRC) published online on Thursday, VeriSilicon revealed a fund run by Xiaomi became its second-largest external shareholder in June.
(Bloomberg Opinion) -- Anheuser-Busch InBev NV blamed market conditions for its decision to pull what would have been the world’s biggest initial public offering this year. Yet the brewer should take at least some responsibility. This concoction was far too frothy for investors when Asian economies face an array of sobering realities.AB InBev said it will no longer proceed with the IPO of its Asia-Pacific business, Budweiser Brewing Company APAC Ltd., which had been aiming to raise as much as $9.8 billion in Hong Kong. The company’s American depositary receipts fell as much as 4.9% in New York before closing down 3% on Friday.The offering valued Budweiser Brewing between 15.5 times and 18.2 times earnings before interest, tax, depreciation and amortization – well above the multiples for Carlsberg A/S and Heineken NV, and a premium to shares of the parent. The price range of HK$40 to HK$47 ($5.11 to $6.01) a share would have resulted in a market capitalization of $54.2 billion to $63.7 billion.You can hardly blame investors for wanting to sit this one out. The U.S.-China trade war is at an impasse and the ripples are widening. Singapore, a bellwether for global trade, on Friday posted its sharpest growth decline since 2012. While the Federal Reserve has signaled that interest rate cuts are coming, which has buoyed U.S. stocks, that's also driving a wedge between the world’s biggest economy and the rest.This split is perhaps nowhere more apparent than the IPO market. Listings in the U.S. are on track for their best year since 2014. Hong Kong, the top destination last year, is languishing by comparison, after a series of high-profile bloopers including smartphone maker Xiaomi Corp. in July 2018 and food-delivery giant Meituan Dianping in September. As I’ve argued, reclaiming that crown will be an uphill battle; and now Hong Kong is facing competition from Shanghai for tech IPOs. Alibaba Group Holding Ltd.’s secondary listing plan is a ray of light – but this latest kerfuffle could dim any optimism.Against this dismal backdrop, it’s little wonder things went south. Yet it’s a mistake to overlook AB InBev’s own missteps. For one thing, the company marketed itself as a purveyor of high-end beer, taking cues from Chinese consumers’ growing taste for foreign brands and craft labels. Perhaps its price range doesn’t look so out of whack when you consider the country's brewers trade anywhere between 15 times and 21 times, according to Bloomberg data. Yet investors just weren't convinced that demand would hold up in a slowing economy. The company’s China pitch also ignored mature markets like South Korea and Australia, which make up around half of Budweiser Brewing’s Ebitda, according to Bernstein Research. Then there’s the fact that growing a brand in Asia's fragmented market is easier said than done. India, where whiskey is the traditional tipple of choice, and Southeast Asia could have been fertile ground for expansion. One argument for an Asia IPO was that Budweiser Brewing would benefit from local tie-ups. Would the Thai tycoon who owns Vietnam’s top brewer, Sabeco Trading Corp., or the magnate that controls the Philippines’ San Miguel Corp. really cede control to the Belgian brewer for a piece of the Hong Kong listing? I’m unconvinced.The fatal flaw, however, may have been AB InBev’s hubris. In deciding against a cornerstone investor tranche, the company eschewed a fixture of Hong Kong’s IPO market. It turns out investors really do like the comfort of big names that pledge to hold stock – even if the practice ties up a lot of liquidity. Had Budweiser’s listing succeeded, it would have been a win for market reform, too. With such a bubbly valuation, AB InBev may have thought its investors were wearing beer goggles. Whether the brewer can make a dent in that $103 billion net debt from its purchase of SABMiller looks a lot less certain after a cold shower and pot of black coffee.To contact the author of this story: Nisha Gopalan at email@example.comTo contact the editor responsible for this story: Rachel Rosenthal at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Tencent Holdings Ltd. is pressing China’s top smartphone vendors and app stores to boost the cut of revenue it gets from games sold through their platforms, people familiar with the matter said, stepping up efforts to claw back profits as its business slows.The social media giant is seeking as much as 70% of the sales generated from its games, up from just 50% now, said the people, who requested anonymity discussing private negotiations. That would bring Tencent’s portion in line with the proportion shared with game publishers on other platforms, including Apple Inc.’s iOS store and Google Play, which each keep 30% of revenue that comes from apps. Negotiations vary from platform to platform, and Tencent may not be asking as much from each app store operator, the people said.Tencent is keen to shore up its bottom line as growth in China, the world’s No. 2 economy, decelerates, sapping consumer spending on entertainment and hurting advertising. The company’s gaming division -- its largest -- was battered in 2018 by a series of regulatory crackdowns and in May, Tencent reported the smallest increase in sales since going public in 2004.At the same time, Tencent has gained leverage in negotiations because the pipeline of new games has shrunk, the result of Beijing’s clampdown on what it views as gaming addiction among youths. Fewer than 5,000 new games will be approved this year, versus more than 8,500 in 2017, Asia-focused gaming researcher Niko Partners estimates.Tencent “is likely to gain stronger bargaining power against its distribution channels,” Citigroup analysts led by Alicia Yap wrote in a research note this week.The social media titan initiated talks in recent weeks with most of the country’s largest app stores, run by leading smartphone makers such as Oppo, Lenovo Group Ltd. and Xiaomi Corp., as well as internet outfits such as Baidu Inc. and 360, the people said. Tencent is focusing on only a subset of its games at present, they added. But if the 70-30 split becomes the standard, that could translate into billions of dollars of additional revenue annually.Tencent dominates the market thanks to its all-purpose WeChat app, which serves more than a billion people, and a development machine that consistently cranks out hits such as Honour of Kings and Peacekeeper Elite. Now, the company is taking advantage of its heft -- its closest rival is the much smaller NetEase Inc. -- to pressure app distributors to cough up more revenue, the people said.P.H. Cheung, a spokesman for Tencent, didn’t immediately respond to an email and text query on the company’s plans, which were previously reported by gaming industry media outlet Gamelook. Baidu and Oppo declined to comment.Those negotiations are by no means all one-sided. If anything, Tencent may have to work hard to change the status quo. The country’s four biggest smartphone names -- Oppo, Vivo, Huawei Technologies Co. and Xiaomi -- run app stores for their users that together account for about 40% of market share.Among the new titles Tencent wants a bigger revenue cut on is role-playing mainstay JX Online 3, developed by China’s Kingsoft Corp., and Crazyracing Kartrider, a mobile remake of a popular title from South Korea’s Nexon Co., one person said. As of now, neither title is available on stores operated by Oppo and Vivo, suggesting those two device-makers have yet to agree to Tencent’s proposal.App developers and publishers compete to get games listed on those stores, whose operators host in-game payments for things such as virtual goods, character skins and power-ups. In return, developers get a cut of that revenue. Unlike in the U.S. and Europe, where a 70-30 split is common, revenue-sharing varies hugely across different Chinese stores but is commonly pegged at 50%. Furthermore, that cut is usually negotiated directly with each of the stores, sometimes on a game-by-game basis.What’s in the app stores’ favor is the sheer volume of competition. While Google Play is blocked in China, there are approximately 400 Android app stores, though many have an extremely small number of mobile users. The country’s app stores focus especially heavily on games because that’s where the money is -- many don’t even levy a cut of revenue at all on non-gaming apps.\--With assistance from Lulu Yilun Chen.To contact Bloomberg News staff for this story: Zheping Huang in Hong Kong at email@example.com;Gao Yuan in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Tom Giles at email@example.com, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Every investor in Xiaomi Corporation (HKG:1810) should be aware of the most powerful shareholder groups. Insiders...
(Bloomberg) -- China went through a five-year surge in venture capital investment that fostered a new generation of startups from ride-hailing giant Didi Chuxing to TikTok-parent Bytedance Ltd. Now the boom may be over.Venture deals in China plummeted in the second quarter as investors pulled back amid unpredictable trade talks and growing concerns about startup valuations. The value of investments in the country tumbled 77% to $9.4 billion in the second quarter from a year earlier, while the number of deals roughly halved to 692, according to the market research firm Preqin.The second quarter of 2018 marked the peak for China venture deals with a total of $41.3 billion invested. That included a $14 billion round for digital payments giant Ant Financial, $3 billion for e-commerce upstart Pinduoduo Inc. and $1.9 billion for truck-sharing service Manbang Group (known also as Full Truck Alliance Group). By comparison, the largest venture deal in the second quarter of 2019 was a $1 billion investment in JD Health, the health care affiliate of e-commerce provider JD.com Inc.China has never been through a widespread bust like the U.S. did after the dotcom boom, in part because the country’s venture market is so new. Years of steady growth in tech investments resulted in predictable -- and enormous -- profits. Whether the current downturn becomes a painful crash depends in large part on how VCs, entrepreneurs and regulators navigate terrain they’ve never seen before.“We’re seeing real stress in the system for the first time,” said Gary Rieschel, a founding partner at Qiming Venture Partners who has worked in China and the U.S. “We have never seen a downturn in the China market. For 20 years, it’s been pretty much up and to the right.”China’s venture boom began in 2014 when Alibaba Group Holding Ltd. went public in the largest-ever initial public offering, making clear to investors the potential riches in the world’s most populous country. Venture deals tripled that year to more than $17 billion and proceeded to rise every year through 2018 when the total topped $105 billion, almost as much as in the U.S.Along the way, firms like Qiming, Sequoia China, Tiger Global Management and SoftBank Group Corp. fostered some of the most valuable startups in the world. Bytedance, the force behind short-video app TikTok and other addictive services, sports a valuation of $75 billion, the highest anywhere according to CB Insights. Didi, the ride-hailing service that ousted Uber Technologies Inc. from China, was last valued at $56 billion, the second highest.But the rise of China’s tech industry put it squarely in the crossfire of the trade war. The Trump administration has accused China of stealing intellectual property and unfairly subsidizing companies in strategic fields, including semiconductors, artificial intelligence and autonomous driving. In May, the U.S. blacklisted Huawei Technologies Co., preventing the telecom giant from buying American components, and is considering doing the same to a swath of startups.The trade war gives investors one more reason for caution. Valuations had already grown vertiginous. High-profile startups such as smartphone-maker Xiaomi Corp. and delivery giant Meituan Dianping saw their stocks tumble after they went public, reinforcing the impression that private-market valuations had gotten out of hand.So-called sharing economy startups have also tested the patience of their investors. Companies like Didi, Meituan and bike-sharing provider Ofo blitzed the market with heavy subsidies to grab market share from rivals, making up for their losses with venture money. Now there’s skepticism that many such companies will ever turn a profit.“You’re really reaching the end of the shared economy -- this idea of let’s give away services for free and make up for it in volume,” Rieschel said. “Some companies -- Didi is the classic case -- are just not showing any ability to become profitable.”A Didi representative didn’t respond to a message and email seeking comment.Valuations haven’t declined yet in China though. The country’s startups have resisted so-called down rounds, when they raise money at lower valuations than an earlier round. “China entrepreneurs, more than any on the planet, will do unnatural things to avoid a down round,” Rieschel said.Meanwhile, venture firms are pivoting to alternative business models, like enterprise software. Such startups are not only less capital intensive, they are at a stage of development where they require less money.This also may simply be a time when venture investors opt for caution. Given the volatile negotiations between Donald Trump and Xi Jinping, it’s not clear what kind of opportunities China’s tech startups will face in the years ahead or how capital markets will treat the next big IPO filing.“It won’t cost you that much to sit on your hands for a few months,” Rieschel said.\--With assistance from Lulu Yilun Chen.To contact the reporter on this story: Peter Elstrom in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- The world’s biggest brewer may be calling time on a long-established practice in Hong Kong’s stock market.The Asian unit of Anheuser-Busch InBev NV is aiming to raise as much as $9.8 billion in what’s poised to be the world’s biggest initial public offering so far this year. Unusually for a deal of this size, the company doesn’t plan to reserve a block of stock for so-called cornerstone investors. That’s good news for potential subscribers concerned that the business may lose its fizz after listing.Cornerstone investors are companies, institutions or wealthy individuals that commit to buying a chunk of stock at the IPO price and holding it for a minimum period, typically six months. The presence of such heavyweights helps to ensure the success of a sale by signaling confidence in the issuer’s prospects and enticing the wider investing public to climb on board. Associated mostly with Chinese state-owned firms in recent years, cornerstones have a long pedigree in Hong Kong, with billionaire tycoons such as Li Ka-shing, the city’s richest man, and Lee Shau-kee frequently called on to provide a seal of approval for key IPOs.The trouble with cornerstones is that they drain liquidity by tying up so much stock after listing. They’re disliked by bankers, lawyers and some investors. It’s debatable whether they even serve companies, beyond the immediate objective getting their offerings through the gate. If trading proves moribund once they’ve joined the market, the end-game can be a withdrawal of the listing.So market participants are watching Budweiser Brewing Company APAC Ltd. closely. The absence of cornerstones means there will be a battle of wills between believers who see the IPO as a chance to buy into a company in a high-growth region with a lock on China’s taste for premium beer, and skeptics who view the offering as overpriced. The valuation looks punchy, at 22 times estimated Ebitda for 2019 at the top of the mooted range, as my colleague Chris Hughes observed last week.The distorting effect of cornerstone investors has arguably grown bigger as Hong Kong tycoons have taken a back seat and Chinese state-owned enterprises, which may have a less commercial rationale for such purchases, have increased their presence. Out of 36 IPOs in the past five years that raised more than $1 billion, 33 had a cornerstone tranche, according to data compiled by Bloomberg. Postal Savings Bank of China Co., which raised $7.62 billion in 2016, sold almost 77% of its offering to cornerstones including China Great Wall Asset Management, China State Grid Corp. of China, and conglomerate HNA Group Co.All the top 10 biggest cornerstone tranches in that group were for Chinese government companies. In April, state-backed brokerage Shenwan Hongyuan Group Co. raised $1.15 billion, with 71% of the deal locked up. The company’s shares have fallen 27% since they started trading. Postal Savings has lost 1.5% since listing, versus a 22% gain for the benchmark Hang Seng Index.Private companies also use cornerstones, though they tend to allocate lower percentages. Smartphone maker Xiaomi Corp. earmarked 24% of its $5.4 billion IPO last year to 10 investors including Hillhouse Capital and Alibaba Group Holding Ltd. Xiaomi shares slumped on the day the six-month holding period ended, accelerating a decline that began when they started trading.Lack of liquidity may be an even bigger concern, and it isn’t confined to Chinese companies. Glencore International Plc, the world’s largest listed commodity trader, sold stock to cornerstone investors including BlackRock Inc. and Abu Dhabi’s Aabar Investments PJSC when it listed in London and Hong Kong in 2011. The company delisted from Hong Kong six years later, saying trading in the stock was a fraction of the U.K. equivalent.Singapore-based video-gaming firm Razer Inc. sold almost 30% of its 2018 offering to cornerstone investors. But other non-Chinese companies including Prada SpA, L’Occitane International SA and Samsonite International SA have eschewed the practice.A successful Budweiser sale would deal a further blow to the cornerstone custom. AB InBev executives and bankers said Thursday that they had enough investor demand just two days into the IPO roadshow. That should rouse a chorus of cheers from many in the Hong Kong market.\--With assistance from Zhen Hao Toh. To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Ever since the notch was first added to smartphones, everyone in the worldexcept the deeply deluded and my editor have wished it gone
(Bloomberg) -- After helping dozens of Chinese companies go public, dealmaker Calvin Choi’s AMTD International Inc. is roping in former clients as early investors before its own initial public offering. It’s an unusual tactic they like to call the “SpiderNet.”The former UBS Group AG veteran’s boutique investment bank sold pre-IPO stakes in recent months to several of its past underwriting clients including Chinese smartphone giant Xiaomi Corp., according to a regulatory filing last week. Online travel agency Tongcheng-Elong Holdings Ltd., ticketing app Maoyan Entertainment and digital advertising startup Mobvista Inc. also bought shares in AMTD ahead of its proposed IPO in New York.AMTD worked on the Hong Kong IPOs of all four companies in the past year, data compiled by Bloomberg show. The investments were disclosed in preliminary registration documents filed with the U.S. Securities and Exchange Commission ahead of AMTD’s planned share sale.The interlocking relationships are an intentional part of Hong Kong-based AMTD’s business model. In the IPO documents, AMTD describes building an “ever-extending network” dubbed the “SpiderNet ecosystem” which it says can foster “rapid multi-dimensional expansion.” The filing contains 62 arachnid references, at one point detailing an employee stock-option program called the “AMTD SpiderMan Share Incentive Plan.”‘SpiderNet’ Ecosystem“By embracing the ‘AMTD SpiderNet’ culture, we go beyond servicing one client offering one product at a time,” the firm wrote. “We believe that our ‘AMTD SpiderNet’ ecosystem is the bedrock of our success.”As an example, it touts how Xiaomi hired AMTD for its IPO, formed a virtual banking venture with AMTD’s parent company and invested in an online brokerage that’s an AMTD business partner. Xiaomi then ended up buying a stake in AMTD itself.AMTD details several other equity and debt underwriting clients that it has invested in or formed partnerships with. The filing didn’t mention AMTD had past advisory relationships with Tongcheng-Elong, Maoyan Entertainment or Mobvista. AMTD was a joint global coordinator on the $250 million Hong Kong IPO of Maoyan Entertainment, which started trading in February. It had more junior roles on the other deals, working as a joint bookrunner.Hotelier’s InvestmentThe companies were among 15 investors that bought stakes in AMTD between April and June, according to the regulatory filing. AMTD raised $53.5 million from the stake sales, which gave it a pre-money valuation of about $1.3 billion.AMTD’s pre-IPO investors also include other publicly traded companies like Sun Hung Kai & Co., owner of a Hong Kong consumer finance business, and the billionaire Lo family’s Regal Hotels International Holdings Ltd. George Chan, who’s well-known in the Hong Kong business world from his time running the city’s biggest phone company, was on the list along with former Citigroup Inc. banker Francis Leung and financier David Chiu.While it’s rare on Wall Street for an investment bank’s clients to become its owners, the setup isn’t totally unheard of in Chinese financial circles.Alibaba Group Holding Ltd., a serial dealmaker in the nation’s tech industry, owns a stake in homegrown investment bank China International Capital Corp. and has hired it for M&A deals. Alibaba’s finance affiliate was also a cornerstone investor in last year’s IPO of China Renaissance Holdings Ltd., which has previously advised Alibaba.Rejected ApplicationAMTD ranked 22nd among advisers on Hong Kong IPOs this year, according to data compiled by Bloomberg. That’s down from 19th place during all of 2018. It placed 59th on a ranking of advisers on Asian high-yield bond sales outside Japan this year, the data show.Choi, the firm’s chief executive officer and chairman, was a managing director on UBS’s investment banking team before joining AMTD in 2016. He previously did stints at Citigroup, PwC and Arthur Andersen. Choi is also a shareholder in the boutique advisory firm’s parent company, AMTD Group Co.This isn’t the first time AMTD Group has tried to tap the public markets: its insurance brokerage arm, AMTD Strategic Capital, filed for a Hong Kong IPO in 2017. The listing application was rejected by the Hong Kong bourse, which didn’t disclose the reasons at the time.\--With assistance from Crystal Tse, Benjamin Robertson and Fox Hu.To contact the reporter on this story: Ben Scent in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Scent at email@example.com, ;Philip Lagerkranser at firstname.lastname@example.org, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Earlier this month, Oppo teased its upcoming under-screen camera tech with aquick and dirty video, and Xiaomi was quick to announce that it was working onsomething similar
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.For years, companies like Oracle and International Business Machines invested heavily to build new markets in China for their industry-leading databases. Now, boosted in part by escalating U.S. tensions, one Chinese upstart is stepping in, winning over tech giants, startups and financial institutions to its enterprise software.Beijing-based PingCAP already counts more than 300 Chinese customers. Many, including food delivery giant Meituan, its bike-sharing service Mobike, video streaming site iQIYI Inc. and smartphone maker Xiaomi Corp. are migrating away from Oracle and IBM’s services toward PingCAP’s, encapsulating a nation’s resurgent desire to Buy China.PingCAP’s ascendancy comes as the U.S. cuts Huawei Technologies Co. off from key technology, sending chills through the country’s largest entities while raising questions about the security of foreign-made products. That’s a key concern as Chinese companies modernize systems in every industry from finance and manufacturing to healthcare by connecting them to the internet.“A lot of firms that used to resort to Oracle or IBM thought replacing them was a distant milestone, they never thought it would happen tomorrow,” said Huang Dongxu, PingCAP’s co-founder and chief technology officer. “But now they are looking at plan B very seriously.” IBM, which gets over a fifth of its revenue from Asia, declined to comment. Oracle, which gets about 16%, didn’t respond to requests for comment.China has long tried to replace foreign with homegrown technology, particularly in sensitive hardware -- it imports more semiconductors than oil. That imperative has birthed global names like Huawei and Oppo and even carried over into software in recent years, as Alibaba Group Holding Ltd. and Tencent Holdings Ltd. expand into cloud services. That effort has gained urgency since Washington and Beijing began to square off over technology.“China has always wanted to use domestic tech and in areas like cloud, it’s been very successful,” said Julia Pan, a Shanghai-based analyst with UOB Kay Hian. “While it wants to use Chinese chips, its technology is just not there, but when it’s mature enough, they very likely will replace overseas chips with domestic ones.”Now, a coterie of up-and-coming startups are encouraging Chinese firms to go local. Customers use PingCAP to manage databases and improve efficiency, allowing them to store and locate data on everything from online banking transactions to the location of food delivery personnel.Backed by Matrix Partners China and Morningside Venture Capital, PingCAP is competing in a sector traditionally dominated by companies such as Oracle and IBM. The market is expected to grow an average 8% annually to $63 billion globally in the seven years through 2022.The startup is one of the newest members of a cohort of open-source database providers such as PostgreSQL and SQLite that are upending the market. Researcher Gartner forecasts that 70% of new, in-house applications worldwide will be developed on open-source database management systems by 2022.PingCAP -- mashing the term for verifying a web connection, ping, and the CAP computing theorem -- was founded by three programmers whose former employer, a mobile-apps company, was acquired by Alibaba. Inspired by Google’s Cloud Spanner, which pioneered the distributed database model, the trio -- Huang, Liu Qi and Cui Qiu -- began creating an open-source database management system that would allow companies to infinitely expand their data storage by simply linking more servers to existing ones.“Think of traditional database mangers like a fixed glass container, every time you run out of storage you have to get a bigger one,” said Huang. “What our system does is that you can link as many cups together as you want.”Their idea caught on with investors and venture fund hot shots including Matrix agreed to invest about 10 million yuan ($1.4 million) in 2015. To date the company has raised more than $71 million and has about 190 employees.PingCAP is working in a space where competition is fierce -- its database TiDB currently only ranks 121 among global peers, according to database rank compiler DB-Engines, which uses mostly mentions on social media and discussion forums as key metrics. Other open-source database managers such as PostgreSQL ranks 4th and its direct competitor CockroachDB, which also focuses on distributed database systems, leads PingCAP by 30 spots. The Chinese startup also operates in a market where it’s difficult to make money -- PingCAP only has a couple dozen paying customers in China and makes about 10 million yuan in revenue a year. Their best shot is to create successes that can be later replicated on a larger scale, said Owen Chen, an analyst with Gartner. “Work with the 10% early adopters free of charge, and make money off the 90% followers later,” he said.That’s why Huang is working with big names like the Bank of Beijing and Mobike -- so it can create templates for each sector. “Only one thing is certain, data will continue exploding,” said Richard Liu, a founding partner at Morningside Venture Capital. “We have the patience to wait before they figure out the best revenue model.”PingCAP has one thing going for it: Chinese customers are increasingly willing to experiment with technology. Data supplied by some 2,000 companies -- more than 300 in-production users and 1,500 who are testing its system -- will provide PingCAP with what Matrix Partner Kevin Xiong says is akin to a supply of ammunition.“You need bullets to train someone to become a stellar marksman, and PingCAP right now has a lot of bullets,” said Xiong, who invested in the company.Huang points to how PingCAP’s database helped tide over Chinese bike-sharing giant Mobike during stressful days when user and transaction numbers exploded on a daily basis -- at its peak in 2017 the company said it handled as many as 30 million rides a day.“It was a really challenging time for us, and [open-source database] MySQL was no longer able to meet our demands given the jump in data volume,” said Li Kai, a senior tech director at Mobike. “PingCAP really helped us big time.”Huang and his team also made it easy for IT departments to jump ship. With one key stroke, companies could export their entire database on MySQL over to PingCAP’s. Some are considering moving their most sensitive data including transactions and customer info over, Huang said without disclosing names.Yu Zhenhua, an IT manager at Bank of Beijing, said China is constantly trying to enhance information security while his industry wants to lower costs as it rapidly expands. “TiDB’s service meets the demands of what we want in a distributed database manager,” Yu said in a statement posted on PingCAP’s website. A representative for the lender didn’t respond to emailed queries about its collaboration.Longer term, PingCAP wants to venture beyond China -- but there, the geopolitical spat is proving an impediment. Earlier this year, PingCAP was ready to embark on an expansion into the U.S. and said it was already in discussions for getting some prominent tech startups to use its software. Now the prospects of winning over American clients are clouded.“We’re not seeing any immediate impact on our business in the U.S. but the trade war does force us to look at the long term uncertainties of getting important U.S. clients in finance or tech to move to our platform,” Huang said.\--With assistance from Olivia Carville, Nico Grant, Lucas Shaw and Gao Yuan.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Colum Murphy, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chinese manufacturer Xiaomi has struggled to sell phones recently , so now it's spreading its offerings to cater to specific sets of customers. In this case, it's targeting the younger generation with the launch of Mi CC, a new series of smartphones aiming to be "a trendy mobile phone for global young people."
Huawei may be on the ropes as it battles sanctions from the U.S. government, but fellow Chinese smartphone rival Xiaomi is in expansion mode with the launch of a new brand that's aimed at winning friends (and sales) among the young and fashionable. "Mi CC" is the newest brand from Xiaomi. Essentially, what Xiaomi is doing here is breaking out a dedicated set of phones for those who care more about aesthetics than performance.
(Bloomberg) -- Xiaomi Corp. aims to spend an additional 5 billion yuan ($725 million) expanding its Chinese retail network over the next three years, anticipating a re-doubled effort by Huawei Technologies Co. to grow its domestic market share.The smartphone maker will spend the money on expanding distribution channels and on reward programs for its partners and sales employees, a person familiar with the matter said, citing an internal meeting convened by billionaire co-founder Lei Jun Tuesday. That spending comes on top of an existing budget for building up its retail operations. Chinese media outlet Caixin reported on the investment earlier.Huawei is said to be preparing for a drop in international smartphone shipments of 40% to 60% as the Trump administration bars its access to American components and software. That means Google will cut off popular apps like YouTube and stop providing updates for the Android system that powers all of Huawei’s devices abroad. It wants to grab as much as half of the smartphone market in China in 2019 to offset that decline overseas, people familiar with the matter have said, citing internal discussions about year-end goals. It hopes to get there also by investing in marketing and expanding distribution channels.Xiaomi aims to become the country’s top vendor but its priority is to at least become No. 3, the person said, asking not to be identified discussing internal goals. The company currently ranks fourth. It sees the roll-out of next-generation 5G mobile networks in coming years as a golden opportunity to boost sales on its home turf, the person added.Hong Kong-listed Xiaomi now commands about 12% of the Chinese smartphone market versus Huawei’s 34%, Canalys estimates. Its shipments slid 13% in the first quarter while its rivals’ soared 41%, the research outfit estimated.To contact Bloomberg News staff for this story: Gao Yuan in Beijing at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Xiamoi recently discovered a safety issue with the M365 electric scooter wherea screw could become loose in the folding apparatus
* * *The next innovation in mobile is peeking its head for all to see today afterChinese companies Oppo and Xiaomi both showed off under-screen cameras
Samsung Electronics aims to double its online smartphone sales in India this year to $1 billion, driven largely by a new budget range of devices, the head of its mobile business for the country said on Wednesday. Smartphones and fashion are among the most popular purchases in India's fast-growing e-commerce market, which Deloitte expects to more than treble between 2017 and 2021 to $84 billion. The South Korean tech giant in February launched its M-series phones in India, which are sold only through Samsung's website and Amazon.com's local unit.
Gartner also said Huawei continued to reduce the gap with Samsung, but warned that growth could be limited in the near term. The United States on May 15 blocked Huawei from buying U.S. goods saying the company was involved in activities contrary to national security. The Trump administration softened its stance last week by granting Huawei a licence to buy U.S. goods until Aug. 19.
It's been a busy couple of months for Bytedance, one of the world's mostvaluable startups and the operator of globally popular video app TikTok
"It's not just network providers and tech giants who are turning their backs on Huawei," said Vanessa Katsapa, UK and Ireland country manager at PriceSpy. "Over the last four days, Huawei handsets have slumped in popularity – receiving almost half as many clicks as they did last week in the UK and 26% less on the global stage," Katsapa said. PriceSpy compiles data from customers in Finland, France, Ireland, Italy, New Zealand, Norway, Sweden and the UK.