Blog Exposure – Ecommerce Giant, JD.com, and Internet Company, Tencent, Acquire 10% Stake in Chinese Retail Chain, Better Life Commercial Chain Share Co.

Stock Monitor: Redfin Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 27, 2018 / Active-Investors.com has just released a free research report on JD.com, Inc. (NASDAQ: JD). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=JD as the Company’s latest news hit the wire. On February 23, 2018, Better Life Commercial Chain Share Co., Ltd (“Better Life”)in a filing with the Shenzhen Stock Exchange disclosed that the subsidiaries of Chinese ecommerce giant JD.com and Chinese internet Company and operator of media platform WeChat, Tencent Holdings Limited, have together acquired nearly 11% of the Company’s shares from its existing shareholders. The 11% stake in Better Life is valued CNY1.63 billion (approximately $258 million). Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, JD.com most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Details of the deal

As per the details disclosed in the filing with the Shenzhen Stock Exchange, Better Life’s shareholders have agreed to sell 6% stake to an affiliate of Tencent while they have agreed to sell 5% stake to an affiliate of JD.com. The shareholders had entered into the stock sale agreement with JD.com and Tencent in February 14, 2018. The deal values Better life at CNY 17.11 per share. Better Life shares have been suspended from trading on the stock exchange since January 22, 2018, and are expected to resume trading on the bourse as from February 26, 2018. Better Life shares closed at CNY 19.01 on January 19, 2018, the last day of trading before the stock was suspended for trading.

JD.com and Tencent plan to work with Better Life to offer “smart” and “borderless” retailing. They aim to build a digitized ecosystem to realize their plans.

About Better Life Commercial Chain Share Co., Ltd

Better Life is a Chinese retailer operating supermarket and department stores. The Company has 592 physical stores, spread over Hunan, Jiangxi, Sichuan and Guangxi provinces in China. In FY16, the Company’s revenues were CNY37 billion. The Company has over 60,000 employees across its locations.

Chinese ecommerce giants enter physical retail market

JD.com and Tencent have been investing in the Chinese retail sector. China is still dependent on the conventional retail sector which account for approximately 85% of the total retail sales. Hence, these companies have been investing in Chinese retail stores in the last few months. Tencent has invested over CNY 20 billion in retail Companies like Heilan Home Co. (clothing retailer), Yonghui Superstores (supermarket chain), and Carrefour (French Retail chain). On the other hand, JD.com in early February 2018 partnered with Hong Kong-based Fung Retailing. Fung Retailing runs thousands of stores globally, including Toys R Us stores in Asia. JD.com also opened its first physical fresh food supermarket in Beijing named 7Fresh. 7Fresh is a 4,000 square meter supermarket in southern Beijing

In late January 2018, Tencent and JD.com along with other investors acquired 14% stake in Dalian Wanda Commercial Properties Co. (Wanda Commercial) one of the world’s biggest commercial property Company. In December 2017 JD.com and Tencent also jointly invested approximately $863 million in Vipshop Holdings Ltd, a leading online discount retailer for brands in China.

The sudden interest in physicalretail sector by these internet majors should not be surprising. The key attraction is in the data generated from the retail arena, the access to payment systems, logistics, and distribution network and other ancillary services. For instance, Tencent does not directly profit from retail but gains access to precious data from the retail sector which it can use to improve its tech service offerings. it can gain tremendous insight about consumer behavior, influencers. The Company can then develop apps that offer location and user-based promotions which can translate into visits to partner stores.

Tencent has partnered with JD.com to compete with Chinese ecommerce giant Alibaba Group Holdings Ltd (NYSE: BABA), to get a share in China’s $4.9 trillion retail sector. Alibaba has been investing strategically in physical retail stores and chains, and the company even started its retail chain of fresh food supermarkets – Hema in 2016. In February 2018, Alibaba had announced the acquisition of 15% stake in China’s leading traditional home improvement chains, Beijing Easyhome Furnishing Chain Store Group Co.

Alibaba also has invested heavily in retail companies like Suning.com, Intime Retail, Sanjiang Shopping Club, Lianhua Supermarket, Wanda Film, and home improvement store Easyhome. Since technology plays a key role in improving efficiencies in the retail sector, the interest shown by Tencent and Alibaba is relatable. Both tech giants aim to leverage their tech expertise to improve sales and revenues.

About JD.com

JD.com is the largest retailer by revenue in China and is a leader in ecommerce, logistics, technology, and finance sectors. It was the first Chinese internet company to make the Fortune Global 500 List. The Company strives to offer consumers the best online shopping experience via its user-friendly website, native mobile apps, and WeChat and Mobile QQ entry points. The Company operated 7 fulfillment centers and 405 warehouses covering 2,830 counties and districts across China as on September 30, 2017.

About Tencent Holdings Ltd

Founded in 1998 Tencent is a leading provider of Internet value added services in China. The Company aims to cater to the needs of Internet users by providing platforms for communication, information, entertainment, financial services, etc.

Tencent provides social platforms and digital content services under brands like QQ (QQ Instant Messenger), Weixin/WeChat, QQ.com, QQ Games, Qzone, and Tenpay. The monthly active user (MAU) accounts for QQ was 861 million and combined MAU accounts of Weixin and WeChat was 938 million as on March 31, 2017.

Stock Performance Snapshot

February 26, 2018 – At Monday’s closing bell, JD.com’s stock slightly climbed 0.93%, ending the trading session at $48.80.

Volume traded for the day: 9.12 million shares.

Stock performance in the last month – up 3.00%; previous three-month period – up 22.64%; past twelve-month period – up 61.22%; and year-to-date – up 17.82%

After yesterday’s close, JD.com’s market cap was at $68.71 billion.

The stock is part of the Technology sector, categorized under the Internet Information Providers industry. This sector was up 1.2% at the end of the session.

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