"#Laogao E-commerce Newsletter# [E-commerce Morning News on September 25]" JD Double 11 announced four new regulations to launch the first price force verification system; JD Logistics has achieved unmanned delivery trial operation project in Japan; Tencent Ren Yuxin: Will not give up short videos, Weishi will continue to do it; the official response to whether Alipay's "light membership" can call Pinduoduo: Of course welcome; Alibaba Cloud Qi Conference opened today...
E-commerce newsletter
1. Pinduoduo completed the pricing of US$875 million convertible bonds with "0% yield on maturity and 0% coupon".
On September 25, Pinduoduo announced that it had successfully completed the pricing of convertible bonds of a total of US$875 million with "0% yield on maturity and 0% coupon". The interest rate pricing range of this convertible bond is 0.00% - 0.25%, and the conversion premium pricing range is 32.5% - 37.5%. People close to this issuance investment bank said that due to the high multiple oversubscription of this issuance, the final price of Pinduoduo convertible bonds was 0.00%, setting a record for the first 0% yield of a Chinese technology company with a 0% maturity rate and 0% coupon issuance of convertible bonds in the past 15 years.
The final conversion premium of convertible bonds is priced at a maximum limit of 37.5%. Based on the company's closing price of US$30.99 on the Nasdaq market on September 24, 2019, the corresponding initial conversion price was approximately US$42.61. That is, the initial conversion ratio of this bond is for every $1,000 principal amount that can be converted into the company's 23.4680 ADS. Previously disclosed information shows that during this issuance, Pinduoduo has the "issuer's redemption right" (Issuer Call Option): "From October 1, 2022, if Pinduoduo's stock price reaches at least 130% of the effective conversion price of the convertible bond in any at least 20 trading days during any 30 consecutive trading days, Pinduoduo can redeem all or part of the convertible bonds issued this time in cash." In other words, if Pinduoduo's stock price remains above US$55.39 for a long time, the company can exercise the "issue redemption right." (Europe)
2. JD.com’s strategic investment Hu Ningfeng: I hope to see more independent IPOs from JD.com’s ecosystem companies
On September 24, Hu Ningfeng, vice president and head of strategic investment at JD Group, said in a media interview that in the past two years, the projects invested by JD.com will soon have some results in several companies outside the JD system but in the JD ecosystem, and will have the opportunity to IPO independently. And allowing more invested companies to IPO is also what JD.com strategic investment will do in the future.
In terms of specific investment ideas, Hu Ningfeng repeatedly emphasized "empowerment". For example, to provide minority equity financing for an external enterprise, empower it, and give it enough room for development after investment. At this time, "empowerment" does not mean gaining control. In his opinion, before investing, we must distinguish "financial financing" that only holds a minority stake from strategic investments such as mergers and acquisitions. (Europe)
3. JD.com Double 11 announced four new regulations to introduce the first price force verification system
According to September 24, JD.com recently announced the "2019 JD.com Open Platform 11.11 Activity Management Rules". This year, JD.com's 11.11 Shopping Carnival has been upgraded in four aspects: quality assurance, dispute handling, price setting, and after-sales service.
It is reported that among the four entry thresholds for merchants to participate in JD.com 11.11, in addition to the two items of store weather vane ranking in the top 80% and the illegal points do not exceed 25 points, the same as previous 11.11, the product quality index ranking has also been added. The product quality index combines data from multiple dimensions such as consumer reviews, return and exchange repairs, and customer complaints, and combines information such as random inspections of government competent departments, internal random inspections of JD.com, and gives quality scores and rankings to all products. Products with low rankings will be prohibited from participating in JD.com's 11.11 activities. (Yibang Power)
4. JD Logistics realizes trial operation project of unmanned delivery in Japan
Recently, Rakuten, Japan announced that it will use JD Logistics’ unmanned delivery equipment and smart solutions to carry out unmanned delivery services in central Japan cities. This is the first time since JD Logistics reached a strategic cooperation with Rakuten, it has provided unmanned delivery solutions to offline and online retailers in Japan, and it is also one of the first commercial autonomous vehicle delivery services in Japan. (Lianshang.com)
5. Tiantian Express will complete production of 20+ intelligent distribution centers in 2019
According to the on-site news on September 24, Tiantian Express officially started operation in 7 distribution centers in Changsha, Kunming, Shijiazhuang, Chongqing, Panyu, Bengbu and Xiangyang. Among them, the construction and operation of self-owned logistics bases such as Changsha, Kunming, and Shijiazhuang will further accelerate the integration of Suning Logistics and Tiantian Express in management, operation, and business.
It is understood that the next step for Tiantian Express will launch distribution projects in Fuzhou, Changchun, Zhengzhou, Wuhu, Taiyuan, Xuzhou and other places in the fourth quarter. As of the end of 2019, Tiantian Express plans to complete the construction, relocation and operation of new sites of more than 20 distribution centers, improve operational capabilities, and achieve comprehensive radiation to major provinces, cities, districts and counties across the country. (Europe)
Internet news
6. Hema announced the initial completion of national layout
On September 25, Hema President Hou Yi disclosed at the Alibaba Investors Conference held a few days ago that as of August 31, 2019, Hema has opened 171 stores in 22 cities across the country, initially completing the national layout, and at the same time, the national lively cold chain network has been basically completed. This is the first time that Hema has published information publicly since becoming Alibaba's independent business group. (Beijing Daily)
7. Tencent Ren Yuxin: I won’t give up on short videos, Weishi will continue to do it
On September 24, Ren Yuxin, COO of Tencent Group, President of Platform and Content Business Group (PCG), and President of Interactive Entertainment Business Group (IEG), clearly told Titanium Media in an exclusive interview that Tencent will never give up on short videos, and Weishi will continue to do it. "We have formed a lot of consensus on this topic. From the perspective of users and market, short videos are an inevitable trend, and this trend cannot be ignored. If you do content, short videos must be done."
But Ren Yuxin also said that Weishi will not be regarded as the key to determining Tencent’s success or failure in the short video track, or PCG’s strategy. "If a company has a strong competitive driving force, it will cause overreaction when it encounters competition, and many strategies and resources will be invested in the field of competition. In this way, many resources will become following others and chasing others, consuming a lot of their resources and causing waste."
Ren Yuxin said that Tencent only looks at whether short videos are needed from a user-driven perspective. Because from the feedback of internal data, many users on Tencent News have begun to consume short video content. (Titanium Media)
8. Official response to whether Alipay’s “light membership” can call Pinduoduo: Of course, welcome
On September 24, Alipay announced that it would open the "light membership" capability for free for all online and offline business scenarios, striving to solve the trust problem of merchants and consumers in the matter of membership. At the press conference, when asked, "If Pinduoduo wants to use it, will you open up 'light membership'?" Wang Xi, head of Huabei Innovation Marketing Department, replied: Of course, we welcome. We look forward to different partners calling light membership capabilities to provide better services for consumption. (Titanium Media)
9. Alibaba Yunqi Conference opened today
The top cloud computing industry summit - Yunqi Conference, hosted by Alibaba Group, will open in Hangzhou on the 25th. The agenda includes the Artificial Intelligence Laboratory Summit, Machine Intelligence Summit, Digital Government Summit, 5G Edge Computing Special Session, etc. (Science and Technology Innovation Board Daily)
Cross-border newsletter
10. Daraz and Alibaba cooperate to launch DExports plan
It is reported that Daraz has partnered with Alibaba to launch DExports, a program that will give local Pakistani sellers the opportunity to sell their products on Alibaba's B2B website, allowing them to reach a larger global customer base. Daraz is supporting local exporters to help them profit from it by leveraging free training, knowledge sharing, and providing a complete payment ecosystem and logistical support. (Hugo.com)
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