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:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Redfin Corporation (NASDAQ: RDFN), which also belongs to the Technology sector as the Company JD.com. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=RDFN

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:

www.active-investors.com/registration-sg/?symbol=JD

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.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors