Asia Business Media: e-commerce

Showing posts with label e-commerce. Show all posts

Friday, June 12, 2015

Alibaba signs strategic agreement with Shanghai Media Group

News this week: China’s largest e-commerce company, Alibaba Group, has signed a strategic agreement with Shanghai Media Group (SMG) to serve China’s financial information services industry through their Internet technology and media resources.

Under the agreement, Alibaba will invest RMB 1.2 billion (US$194 million) into China Business News (CBN), a Chinese financial media company under SMG, and launch a financial data and information service company. The two companies will also jointly develop a comprehensive financial data and information platform to provide users, especially small- and medium-sized enterprises, with financial news and information. CBN’s wealth management information product will launch on Mobile Taobao in the near future.

Alibaba Group founder and executive chairman, Jack Ma, said, “The era of Data Technology is here and it will surpass the Information Technology era. The DT era is about transparency, sharing of information and enabling others. Alibaba is excited about the possibilities of the DT era and how it can bring value to society.”

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Friday, May 29, 2015

Alibaba launches Korea Pavilion on Tmall.com

News this week: China’s largest e-commerce company, Alibaba Group, has announced the launch of a Korea Pavilion on its Tmall.com platform. Tmall.com’s Korea Pavilion opened on 18^th May and allows any Korean retail goods to be listed.

Tmall.com’s Korea Pavilion was introduced in a ceremony at the aT Center by Jack Ma, founder and executive chairman of Alibaba Group, and Choi Kyunghwan, Deputy Prime Minister of Korea. The Korean Pavilion has partnered with Korea Agro-Fisheries & Food Trade Corporation (aT) and Korea International Trade Association (KITA). According to Alibaba, a Korean herbal cosmetics brand was among their best-selling item during China’s Singles’ Day in November last year.

Jack Ma was quoted saying, “The Korea Pavilion is Alibaba Group’s first official country pavilion and we will continue to work with governments of other countries to launch similar pavilions in the future in order to satisfy the needs of our Chinese consumers. Korean made products have always been popular in China and we are excited to bring these products onto Tmall.com.”

Japanese tax amendments to impact B2B online transactions

News this week: According to media reports, Japanese lawmakers are edging closer to amending the nation’s Consumption Tax Act, which taxes the majority of imported goods and domestic transactions. Currently, e-commerce transactions originating from companies registered outside of Japan are not subjected to this tax.

Lawmakers are seeking amendments to include cross-border transactions and have reportedly been passed by Japan’s National Diet. The legislation will come into effect on 1^st October this year. While there will be no levy imposed on the service provider, the buyer will instead be taxed by the National Tax Agency (NTA) – but commercial buyers will be eligible to obtain a tax credit for the fee paid.

The amended law will require e-commerce operators based outside of Japan to collect a tax from Japanese buyers on behalf of the NTA. E-commerce businesses will be required to register as an offshore service provider by July 2015 and indicate their operating capacity as either B2B or a mix of B2B and B2C similar to current regulations of the European Union.

Friday, May 22, 2015

Alibaba Group acquires stake in Chinese logistics company

News this week: New York-listed Alibaba Group announced the acquisition of a minority stake in the Shanghai YTO Express (Logistics) Company. Financial details were not disclosed. Both companies plan to cooperate in developing logistics solutions to improve efficiency of China’s logistics industry.

YTO Express will work closely with Alibaba’s logistics subsidiary Cainiao to enhance the industry’s logistics management capabilities as well as international and rural delivery services. Cainiao was founded by Alibaba in 2013 in partnership with a consortium of logistics companies with the aim of building a nationwide logistics platform.

Judy Tong, senior vice president of Alibaba Group and president of Cainiao, said, “The strategic investment in YTO Express reflects our commitment to improving quality and service standards in China’s logistics industry. As a platform, we look forward to working closer with partners who share our vision to develop more efficient logistic infrastructure and solutions that will drive development of China’s logistics sector in order to fully satisfy our customers’ needs.”

HC International’s revenue and profit down in Q1

News this week: Last week, Hong Kong-listed HC International announced its results for the quarter ended 31^st March 2015. Revenues were US$34 million, a decrease of 5.5% compared with the same quarter last year. Profit in the quarter also recorded a drop falling 41% down to US$4.0 million. Diluted earnings per share in the period were RMB 0.0365 (US$0.0059).

Almost 80% of the Beijing-based company’s revenues were generated from online services amounting to US$27 million. This represents a year-on-year decrease of 12%. The second largest business segment was seminars and other services, which increased by 8.7% to US$4.4 million and accounted for 13% of total revenues. The remaining revenues were generated from the newly acquired “digital identity management business”, anti-counterfeiting products and services (US$1.8 million), and the trade catalogues and yellow page directories segment (US$718,000).

Friday, May 08, 2015

Made-in-China.com’s profit up 31% in Q1

News this week: Shenzhen-listed Focus Technology, the operator of Made-in-China.com, released its financial results for the quarter ended 31^st March 2015. Revenues dropped 15% year-on-year, down to US$17 million. The company’s management did not comment on the decline. Net income in the first quarter jumped 31%, amounting to US$3.8 million. Diluted earnings per share in the quarter were RMB 0.20 (US$0.032).

As of 31^st March, Made-in-China.com had a total of 12,674 registered members. Majority of them were registered on its flagship English language site, which had 12,120 members and just 554 members were registered on its Chinese language site.

Alibaba’s revenue up 45% in FY2015

News this week: Yesterday, China’s largest e-commerce company, Alibaba Group, announced its results for the quarter and the fiscal year ended 31^st March 2015. For the quarter ended 31^st March, the company recorded revenues of US$2.8 billion, up 45% over same period in 2014. However, net income in the period was down 49% year-on-year, to US$463 million.

Revenues from Alibaba’s China B2B business, primarily generated from 1688.com, grew by 42% to US$136 million. The company’s international B2B business, primarily from Alibaba.com, generated revenues of US$194 million. This represents a 19% increase from the same quarter in 2014. In total, B2B revenues for the quarter amounted to US$330 million or 12% of overall revenues.

For the year ended 31^st March 2015, revenues were US$12 billion, a jump of 45% from the previous year. Net income was up by 4% in 2015, reaching US$3.9 billion. Diluted earnings per share in the fiscal year were RMB 9.70 (US$1.56).

The company also disclosed in its financial announcement the appointment of its current COO, Daniel Zhang, as CEO effective 10^th May 2015. Alibaba Group’s current CEO, Jonathan Lu, will remain on the company’s board of directors as vice chairman.

Thursday, April 30, 2015

Netsun’s Q1 revenue down 18%, 2014 revenue down 20%

News this week: Shenzhen-listed online sourcing platform, Zhejiang Netsun, released its financial results for the quarter ended 31^st March 2015. The company reported revenues of US$5.7 million, down 18% from the same quarter of last year. The company did not comment on the decrease in revenue. Net profit attributable to shareholders in the quarter dropped 19% year-on-year, to US$1.4 million. Earnings per share in the period were RMB 0.04 (US$0.0065).

For the financial year ended 31st December 2014, the Hangzhou-based company generated revenues of US$25.8 million, down 20% compared with 2013. Net profit attributable to shareholders in the year was US$5.4 million, up 1.3% from the previous year. Earnings per share in 2014 were RMB 0.16 (US$0.0258).

Friday, April 17, 2015

Made-in-China.com’s profit down 14% in 2014

News this week: Earlier this week, Shenzhen-listed Focus Technology, the operator of Made-in-China.com, released its financial results for the year ended 31^st December 2014. Revenues were US$82 million, nearly flat with the previous year. Net income in the year dropped 14%, down to US$19 million. Diluted earnings per share were RMB 1.02 (US$0.16) in 2014.

The Nanjing-based company generated the majority of its revenues through its online sourcing platform, Made-in-China.com. Membership fees generated 47% of total revenues, amounting to US$39 million. The company’s “Audited Supplier Services” generated 17% of total revenues, or US$14 million, while their other value-added services generated US$13 million – 16% of total revenues.

As of 31^st December 2014, Made-in-China.com had 13,457 registered members. The majority of them (12,795) were registered on its flagship English-language site compared with only 662 members on its Chinese site.

Friday, April 10, 2015

China’s e-commerce market up 31% in 2014

News this week: According to the latest data published by the China E-Commerce Research Center (CECRC), China’s e-commerce market grew by 31.4% in 2014 to reach a total market value of US$2.2 trillion. In particular, online B2B trading grew 21.9% year-on-year and accounted for around US$1.6 trillion – close to 75% of the total.

Online B2C trade reached US$450 billion and was up by 50% over 2013. The consumer sector was boosted by transactions on platforms including JD.com, and Alibaba group’s consumer-focused arms Taobao and Tmall – where Tmall’s trade was valued at US$123 billion in 2014.

The report also highlighted the growth in mobile usage as online transactions via mobile devices were up 240% reaching US$150 billion.

Saturday, April 04, 2015

HC International’s profits up 22% in 2014

News this week: Earlier this week, Hong Kong-listed HC International released its financial results for the year ended 31^st December 2014. Revenues in the year were US$156 million, up 15% compared with 2013. Net income for the year was US$30 million – representing year-on-year growth of 22%. Dilute earnings per share in 2014 were RMB 0.2729 (US$0.044).

HC’s largest business segment, online services, generated 84% of total revenues which amounted to US$131 million. This represents 17% year-on-year growth. The remaining revenues were generated from HC’s seminars & other services (US$16 million), trade catalogues & yellow page directories (US$5.7 million) and anti-counterfeiting products & services (US$2.6 million).

Separately, HC International announced the resignation of Mr. Yang Ning, executive director and president of the company. Effective 30^th March 2015, Mr. Yang resigned from his position for personal reasons.

Friday, February 27, 2015

Alibaba Group restructures loans division

News this week: New York-listed Alibaba Group has announced the company’s completed restructured relationship with Zhejiang Ant Small and Micro Financial Services (Ant Financial) – now officially parent company of Alipay and Alibaba’s small- and medium-sized enterprise (SME) loan business.

Alibaba Group and Ant Financial first agreed on a purchase agreement prior to Alibaba’s IPO in September 2014. The restructuring sees Alibaba reduce its risks involved with the loan business and refocus on the e-commerce sector. According to Alibaba, Alipay has more than 300 million registered users and processes more than 80 million transactions per day as of December 2014.

The Alibaba Group will no longer consolidate the financial results of the SME loan business in its future financial filings. Ant Financial’s businesses portfolio offers a range of services complimentary to Alibaba’s “e-commerce ecosystem” including Alipay, Alipay Wallet, Yu'e Bao, Zhao Cai Bao, Ant Micro Loan and Sesame Credit.

Friday, February 13, 2015

Alibaba to invest in handset manufacturer, Meizu

News this week: China’s leading e-commerce company, Alibaba Group, announced it invested US$590 million in exchange for a minority stake in Meizu, a smartphone manufacturer based in China.

Under the terms of the deal, Alibaba and Meizu will cooperate to develop Meizu’s hardware and Alibaba’s mobile operating system. Alibaba will provide Meizu with resources and support in e-commerce, mobile Internet, mobile operating system and data analysis for developing Meizu’s smartphone ecosystem, while Alibaba’s online shopping marketplaces will become distribution channels for Meizu’s smartphones and other devices.

Jian Wang, chief technology officer of Alibaba Group, said, “The investment in Meizu represents a significant expansion of the Alibaba Group ecosystem and an important step in our overall mobile strategy as we strive to bring users a wider array of mobile offerings and experiences.”

Friday, February 06, 2015

Alibaba.com partners to offer loans in U.S.

News this week: The Alibaba Group’s B2B e-commerce arm, Alibaba.com, announced the formation of a partnership with the Lending Club, a San Francisco-based lending company listed on the New York Stock Exchange, to provide credit loans to small- and medium-sized businesses (SMEs) in the U.S.

U.S.-based SMEs can now apply for credit lines from US$5,000 to US$300,000 through Alibaba.com to finance purchases of goods from Chinese suppliers. Named Alibaba.com e-Credit Line, the new service is provided by Lending Club and aims to provide efficient supply-chain financing at lower costs than banks and conventional lenders.

Lending Club’s founder and CEO, Renaud Laplanche, said, “The hope is over time, as we continue to work together, we will collect more and more data on the Alibaba marketplace and on transactions between specific suppliers in China and buyers in the U.S. This will enhance underwriting and help us make decisions faster, at lower risk, and at lower interest rates.”

Friday, January 30, 2015

Alibaba results surprise markets & Beijing criticises Alibaba for counterfeits

News this week: Yesterday, Alibaba Group announced its financial results for the quarter ended 31^st December 2014. Revenues in the period were US$4.2 billion, a year-on-year 40% growth, but this missed the average analyst estimate of US$4.4 billion. In addition, net income dropped 28% to US$964 million, and diluted earnings per share were RMB 2.29 (US$0.37).

Revenues from the China commerce retail business in the three-month period were US$3.4 billion, up 32% year-on-year, due to growth in commission revenue and online marketing services revenue. Mobile revenues from the China commerce retail business grew surprisingly by 448%, amounting at US$1.04 billion, caused by a greater proportion of GMV generated on mobile devices and an increase in the mobile monetization rate.

Separately, on Wednesday, Beijing released a report criticising Alibaba for the number of counterfeit goods available on its e-commerce platforms. The State Administration of Industry and Commerce (SAIC) reportedly wrote the sternly worded report in July, but held back releasing the report until after Alibaba’s September IPO.

Alibaba’s stock dropped 8.8% to close at a three month low of US$89.81 on Thursday. The controversy may also have implications for Yahoo which announced this week it has plans to spin off its US$40 billion Alibaba shares into a new company – primarily to avoid paying taxes on the eventual sale of those shares.

Friday, January 23, 2015

Alibaba signs MOU with CII

News this week: China’s largest e-commerce company, Alibaba Group, has signed an MOU with the Confederation of Indian Industry (CII) to collaborate on trade and e-commerce opportunities between Indian and Chinese small and medium-sized enterprises (SMEs) through its B2B arm – Alibaba.com.

Under the MOU, Alibaba will work with CII to run e-certificates programmes in India and help Indian SMEs to develop their business by engaging in partnerships with overseas businesses. The MOU will also help Indian SMEs to build brand image at both B2B and B2C levels through collaborations on promotional, training and educational activities.

Head of Global Business Development for Alibaba, Timothy Leung, said, “India is one of the key markets for Alibaba.com. We are confident that the CII and Alibaba.com partnership will support greater business engagement between Indian SMEs to the rest of the world.”

Friday, December 05, 2014

Alibaba Group looks to the Indian market

News this week: The Alibaba Group is turning its sights on the Indian market. The group’s founder and chairman visited India in late November, leading a large Chinese delegation.

In October, one of Alibaba’s largest shareholders, Japan’s Softbank, invested more than US$800 million in two Indian e-commerce companies (Snapdeal.com and Ola Cabs). Snapdeal has a similar model to Alibaba’s which aims to connect small businesses directly to buyers. The e-commerce market in India remains small. In 2013, it was valued at US$2 billion compared with US$300 billion in China.

Indian businesses are active on Alibaba’s network of e-commerce platforms. Indian businesses are second only to Chinese business on Alibaba’s sites. Approximately 400,000 consumers in China bought from Indian businesses last year according to Alibaba. While in India, Ma commented, “We will invest more in India, we will work with the Indian entrepreneurs going forward.”

Friday, November 28, 2014

Alibaba to focus on e-commerce in rural China

News this week: The Alibaba Group announced this week that it has signed agreements with provincial governments in China’s western region, Xinjiang and Gansu, to promote the use of e-commerce amongst small- and medium-sized businesses.

Alibaba will work with local authorities to assist with the digitisation of government and public service sectors there. The group will also set-up verticals on some of its key platforms, 1688.com and Taobao.com, to promote products from the two countries.

In the company press release, Jack Ma was quoted, “We hope to use the Internet to spread knowledge to people in the countryside, and to make available the special products from these regions to consumers all over China.”

Friday, November 21, 2014

Online B2B apparel marketplace ordre.com launched

News this week: A new international B2B e-commerce platform, Ordre.com, was recently launched by Hong Kong-based The Lock Group featuring ready-to-wear apparel collections. Participation as a retail buyer on Ordre.com is by invitation only. The platform does not publically list its buyer network.

The Lock Group was founded in Australia in 1989. The company’s business portfolio includes organising annual apparel industry events in Australia and around the Asia-Pacific region. The sourcing platform currently features apparel from more than 20 fashion designers, including Chalayan, Emilia Wickstead, House and Holland and Jason Wu. The platform expects to feature apparel from around 60 designers in the near-term future.

Ordre.com is reportedly backed financially by a team of early-stage investors led by Michael Alexander, CEO of investment firm Jefferies Hong Kong Ltd. The investors are expected to contribute a total of US$10 million in this round of funding.

Friday, November 14, 2014

HC International’s revenue and profit both rise

News this week: Earlier this week, Hong Kong-listed HC International reported its results for the nine months ended 30^th September 2014. Revenues in the period were US$118 million, a year-on-year growth of 21%. Profit attributable to equity holders in the nine-month period was US$26 million, a jump of 63% over the first nine months of 2013. The management attributed the growth in profit to the improvement in online revenues and better control of the company’s costs and expenses. Diluted earnings per share in the first nine months were RMB 0.2329 (US$0.0379).

The company’s largest business segment, online services, generated 85% of total revenues (US$100 million) – up 24% over the first nine months in 2013. The seminars & other services segment generated revenues of US$14 million or about 12% of the company’s overall – up 9% year-on-year. The remaining 3% of revenues were generated from the trade catalogues & yellow page directories business segment, and were down 15% compared with last year.

HC International also released its results for the quarter ended 30^th September. Revenues in the quarter were US$42 million, up 6% over the same quarter of 2013. The company posted a jump of 92% in profit attributable to equity holders during the quarter, which amounted to US$15 million.