Pandaily's Digest #20210825
Collapse of Chinese tutoring sector impacts business, Skyworth Digital shows revenue growth as it plans future split and public listing, US reportedly allowed sale of auto chips to Huawei, and more.
The Collapse of Chinese Tutoring Industry Sends Businesses Scrambling
Investors in the Chinese ed-tech industry are now on the edge of their seats. On July 24, Chinese authorities introduced a sweeping new set of guidelines, dubbed a “double reduction” policy, to ease the burden of excessive homework and off-campus tutoring for students undergoing compulsory education. The policy, interpreted as China’s crackdown on the private tutoring industry, has plunged the entire sector into an existential crisis.
Skyworth Digital’s H1 2021 Revenue Increased by 23% Year-on-Year, Plans to Split Into Two Listed Firms
Shenzhen-based high-tech enterprise Skyworth Digital Co., Ltd. released its semi-annual report for 2021 on Tuesday. During the reporting period, the company achieved operating income of 4.575 billion yuan ($707 million), a year-on-year increase of 23.37%.
US May Have Approved Sale of Auto Chips to Huawei
Reuters reported on Wednesday that the United States had approved license applications worth hundreds of millions of dollars from suppliers, allowing them to sell chips for auto components to Huawei, citing two individuals familiar with the matter.
Universal Beijing Resort to Initiate Trial Operations on September 1
As its three-month internal stress test draws to a close, the Universal Beijing Resort (UBR) announced on Tuesday it will officially start trial operations on September 1.
First Apple Store in Changsha, Hunan Province Set to Open
Apple published the official webpage of its first retail store in China’s central province of Hunan on Wednesday. According to the page, the new facility is located in the Changsha International Financial Center, No.188 Jiefang West Road, Furong District, Changsha. The center is a local landmark in the business district with a huge flow of people.
Tesla Brakes Became Trending Topic on Weibo 130 Times in First Half of 2021
On Tuesday, Chinese Twitter-like social media platform Weibo published its “Trending Topic Report” for the first half of this year. Regarding the trending topics that appeared over 100 times, #TeslaBrakes ranked fifth among all social events in the first half of 2021, trending 130 separate times during the period.
Nio Releases Assisted Driving Safety Tests to Car Owners
Electric car firm Nio Inc. has sent a “Nio Pilot exam” through its official app, which includes a six-minute video and ten Q&As, Chinese media Kuaikeji reported on Tuesday. Users are awarded 200 points for correct answers, which can be exchanged for goods or discounts in the Nio app, worth about 20 yuan ($3.09).
Hong Kong Bourse Publicly Censures Six Former Executives of Smartphone Maker Coolpad Group
The Hong Kong Stock Exchange on Tuesday publicly censured Chinese business tycoon Jia Yueting, two former CEOs named Jiang Chao and Liu Jiangfeng, as well as three ex-directors of domestic smartphone maker Coolpad Group.
Livecast #8: VC Ray Hu of Blue Lake Capital on China SaaS
Check out the transcript for this edition of Tech Buzz China livecasts, with Ray Hu of Blue Lake Capital on China.
Pinduoduo Says Slower User Growth Inevitable and Inroads by Short-Video Platforms Show Market Dynamism
Pinduoduo, the e-commerce upstart that has ascended at meteoric speed to challenge the market incumbents, may be starting to feel the effects of gravity. In the firm’s results announcement for the quarter ended June, the company reported annual active buyers rose to 850 million, marking the smallest number of new users since 2019.
China’s Critical Data Rules Not Aimed at Firms Planning Foreign IPOs: National Network Information Office
Sheng Ronghua, deputy director of the National Network Information Office, told attendees at a press conference that China’s forthcoming rules for protecting critical information infrastructure are not aimed at firms planning overseas listings. Instead, the focus is on ensuring the security of key information infrastructure and maintaining overall network security.
FF 91 Completes Longest Road-Test Among the Global Ultra-Luxury EV Class
Faraday Future Intelligent Electric Inc. (FF) announced on Monday that it had recently completed a 3,653 km long-distance road test following the historic US Route 66. The completion of the real-world long-distance road test and the durability test of the vehicle’s battery and propulsion components further progresses FF 91 production timeline.
Pinduoduo Q2 Sales Miss Estimates, User Growth Slowest Since 2019
Pinduoduo reported second-quarter revenue that missed analyst estimates as the e-commerce company added the fewest number of new buyers since 2019.
Changan Automobile’s Avatar Technology Unveils First New Car E11
At the Changan Automobile Technology Ecological Conference held on August 24, Zhu Huarong, Chairman of Changan Automobile, Yu Chengdong, CEO of Huawei Intelligent Automotive Solutions BU, and Zeng Yuqun, Chairman of CATL announced a new high-end intelligent mid-sized all-electric SUV built by Avatar Technology.
Smart Share Global Limited Releases Q2 Financial Report: Total Revenue Tops 972.4 Million Yuan, A Year-on-Year Increase of 52.9%
China’s largest provider of mobile charging devices Smart Share Global Limited (“Energy Monster”) released on Monday its unaudited financial report for the second quarter ending June 30, 2021.
Allsaints Music Group Raises $60 Million in Series B1 Round
Hong Kong-based Allsaints Music Group announced on Tuesday that it had raised $60 million in a Series B1 round of financing. CMB International and OPPO led the round, followed by Xiaomi and Huiyou Capital. Lighthouse Capital is currently acting as the company’s exclusive financial consultant.
Nayuki’s Tea Apologizes for Recent Food Safety Issues
Nayuki’s tea issued an apology on the morning of August 24 in response to recent concerns about their establishment’s food safety. One such issue was raised by regulatory authorities when, during a store inspection, a label was seen to have fallen into mango puree during production.
AI Computer Chip Startup Pingxin Technology Receives $10 Million in Pre-A Financing Round
Chinese domestic media outlet 36Kr reported on Tuesday that Beijing-based artificial intelligence (AI) computer chip startup Pingxin Technology has completed a pre-A round of financing worth nearly $10 million, amid a global push to enhance chip technology and an ongoing semiconductor shortage.
Former Mayor of China’s Largest Municipality Huang Qifan Interprets Why Beijing Scrutinized the Internet Industry
China-cer reported that the 2021 (20th) China Internet Conference organized by the Internet Society of China was held in Beijing from July 13 to 15. Huang Qifan, former mayor of Chongqing and Director of Industry Transformation Consultation Committee of the Internet Industy Institute under Tsinghua University, spoke at the event.
JD.com’s Q2 Revenue Reaches 253.8 Billion Yuan, Higher than Market Expectations
JD.com, a Chinese e-commerce platform, released its Q2 financial report on Monday. Its net revenue in the second quarter was 253.8 billion yuan ($139.3 billion), a year-on-year increase of 26.2%.
Model Ys Produced by Tesla’s Shanghai Factory Officially Delivered in Europe
As of August 23rd, Tesla has officially started to deliver to Europe the Model Ys produced in its Giga Shanghai factory.
OPPO Unveils MagVOOC Magnetic Flash Charger
Today, Chinese smartphone maker OPPO unveiled its MagVOOC magnetic flash charging technology at the China International Smart Industry Expo 2021. Three new devices were launched including a power bank, a charger and a charger pedestal.
Tesla Model S Suspected of Spontaneous Combustion in Underground Garage in Guangzhou
At about 2 p.m. on August 22, a Tesla Model S was suspected to have spontaneously combusted in the underground garage of a residential area in Guangzhou. The accident also affected other cars parked near the Tesla vehicle.
Alibaba Cloud Told to Rectify Information Leak Without User Consent
Recently, a letter from Zhejiang Communications Administration to the complainant on July 5 shows, on November 11, 2019, Alibaba Cloud Computing Co., Ltd. disclosed the registration information retained by the user to a third-party partner without the user’s consent.
Xiaomi to Found Mi Apartment as Employee Dormitory for 700 Million Yuan
On Monday, according to Tianyancha App, Mi Apartment (Beijing) Commercial Operation Management Co., Ltd. was established with a registered capital of 700 million yuan ($108 million). The entity is wholly-owned by Xiaomi Communications Co., Ltd.
China VC Weekly: Drugs, Semiconductors, and Self-Driving Cars
In last week’s VC news, drug research firm XtalPi raised a massive $400 million to bring it to a new lofty valuation, prominent LiDAR company Innovusion closed a $66 million Series B round, semiconductor upstart Southchip secured $46 million in its latest funding round, while autonomous driving startup QCraft secured backing from Meituan and $100 million in its latest inflow of funding from investors.