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E.g., 2021-01-27
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    Fathom China

    The State Of China’s VOD Industry

    In this special issue of China VOD, we take a step back and examine the state of the China’s video-on-demand industry. We look especially at political pressures on the big-three companies, and conclude that they have figured out how to satisfy censors while still producing content that viewers want to see. Government exhortations to take positive messages about China to overseas audiences have not yet translated into major expansion abroad,...

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    East Money Information

    East Money Information (“East Money”) is China’s biggest online brokerage—like E-Trade but with more functions. It earns commissions through trades and the sale of fund products.

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    Double Medical Technology

    Double Medical Technology (“Double Medical”) is a leading maker of orthopedic devices, including implants like nails and locking plates used in trauma, spine and joint surgeries.

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    Haier Smart Home

    Haier Smart Home (“Haier”) is a leading maker of home appliances. It operates three selfdeveloped brands, includingmain brand“Haier,”and has acquired four overseas peers, including GE Appliances.

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    Fathom China

    Targeting US Firms For Retaliation

    In this issue • Huawei calls for protection. Huawei’s chairman says if the US tightens sanctions on Huawei, then Beijing should retaliate against US companies, and Qualcomm seems like the number-one candidate. • Unisoc receives state financing. The government increases its investment in China’s biggest non-Huawei maker of mobile SoCs. • More hints that Huawei will sell chips. A senior executive at Xiaomi says Huawei sounded him out about buying...

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    Hongfa Technology

    Hongfa Technology (“Hongfa”) makes relays—electromagnetic switches that control circuits — for industries including cars, home appliances and telecoms.

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    Fathom China

    JD: Seeking A Growth Strategy

    China’s number-two e-commerce company is known for quick deliveries of genuine products, especially electronics. Yet JD’s traditional strengths provide fewer advantages today. Competitors who operate third-party platforms, like Alibaba Group Holding (“Alibaba”), provide more products, deliver almost as fast and have earned consumers’ trust. In response, JD wants to expand toward lower-income users in the countryside, and to promote its own third...

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    Proya Cosmetics

    Proya Cosmetics (“Proya”) develops and sells cosmetics, including skincare and makeup products. It operates several brands, including itsmain brand“Proya.”

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    Tech Semiconductors

    Tech Semiconductors (“Techsem”) makes power semiconductor devices including thyristors and power modules. The company in 2016 entered internet film production.

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    Fathom China

    Aiming Local In SoCs, DRAM, NAND

    In this issue • Unisoc goes high-end. China’s best hope for making mobile SoCs says its new mobile chip could help break reliance on US suppliers like Qualcomm. • Xiaomi hedges its chip bets. Handset maker Xiaomi says it cannot break its reliance on US technology at the same time that it invests in its Chinabased suppliers. • China enters the DRAM fray. The first batch of chips made by Changxin Memory Technologies have hit the market. •...

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    AmoyDiagnostics

    Amoy Diagnostics (“AmoyDx”) is a leading provider of molecular diagnostic products and services. It tests tissues, blood and other human biological samples to diagnose cancer and assess patients’ compatibility for tumor treatment (known as “companion diagnosis” or “CDx”).

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    Gree Electronic Appliances, Inc. of Zhuhai

    Gree Electronic Appliances, Inc. of Zhuhai (“Gree”) is a leading maker of home appliance products. It derives more than 80% of revenue from air conditioners.

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    Fathom China

    Yonghui Superstores

    Yonghui Superstores (“Yonghui”) is a leading supermarket chain operator. It has more than 1,100 stores across China and derives about half of its revenues from perishables.

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    Fujian Anjoy Foods

    Fujian Anjoy Foods (“Anjoy”)makes and sells more than 300 kinds of quick-frozen packaged foods. Its main products are frozen fish and meatballs, often used in hot pot.

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    Jiangsu Hengrui Medicine

    Jiangsu Hengrui Medicine (“Hengrui”) is one of China’s leading pharmaceutical companies. It derives an estimated 70% of revenue from generic drugs, especially ones that fight cancer.

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    Fathom China

    Oppo Confirms SoC Effort

    A leading Chinese handset maker has confirmed that it is working on a mobile SoC. The goal of Guangdong Oppo Mobile Telecommunications “(Oppo”), is presumably to replace chips made by MediaTek and Qualcomm. This is the first confirmation that Oppo is moving into chip making. Close readers of this Chips Watch series will have seen the development coming.

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    Fathom China

    YMTC Says No Virus Impact

    In this issue • YMTC says no virus impact. The company says its operations are unaffected but that is frankly hard to believe. • Rumor: Oppo sets up a chip design company in Taiwan. Information is scant but Oppo earlier set up a chip-design subsidiary in Shanghai. • Konka unveils its maiden chip. The appliance maker’s first chip is a memory controller. • Smartphone shipments plunge. Chinese smartphone shipments in the first three months of 2020...

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    Fathom China

    VOD Firms Are Anti-Fragile

    In this issue • VOD industry benefits from the corona virus. Chinese people are staying home, watching TV and probably subscribing to VOD packages. • Dispute between cinemas and VOD firms. As cinemas are quarantined, film producers forge closer ties with VOD firms. • New vice minister of NRTA. China’s film and VOD regulator has a new vice minister but the change seems normal.

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    Haitian Food: Tight Channels Impede Growth

    Several online sources of varying reliability have indicated that Foshan Haitian Flavoring and Food (“Haitian”), a maker of condiments that include soy sauce, oyster sauce and sesame oil, has sold more product to its distributors than its distributors can sell to retailers—a practice known as “stuffing the channels.” Such practices would enable Haitian to hit revenue targets in the short term but would cause long-terms sales declines as...

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    Angel Yeast

    Angel Yeast (“Angel”) is a world-class producer of yeast and yeast derivatives. Its products are distributed in more than 150 countries and widely used by bakeries and breweries, among others.

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    Fathom China

    HiSilicon Sells Chips To Replace US Wares

    In this issue • HiSilicon becomes a supplier. Huawei’s chip subsidiary is for the first time selling chips to third parties, creating the possibility that its mobile SoCs could come into competition with Qualcomm’s. • Leading EDA firm shows China commitment. Synopsys is bucking the “decoupling” trend by opening a major research center in Wuhan. • China’s access to steppers looks less secure. Reports say the US has successfully lobbied the Dutch...

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    Yixintang Pharmaceutical Group

    Yixintang Pharmaceutical Group (“Yixintang”) is a leading operator of discount pharmacy chains selling over-the-counter and prescription drugs. It is headquartered in Yunnan province and derives the bulk of its revenue fromSouthwest China.

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    Fathom China

    New Propaganda Guidelines, iQiyi Pushes Into Thailand

    In this issue • New propaganda guidelines. The Communist Party wants Chinese VOD companies to produce more dramas that show a “well-off society,” then sell those dramas abroad. • New executive leads iQiyi push into Thailand. A former BBC executive will oversee iQiyi’s expansion in to Thailand, where Tencent Video enjoys early-mover advantage. • New Netflix home for popular Chinese drama. The sequel to a wildly popular Chinese imperial-court...

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    Fathom China

    Baozun: Dominating A Low-Margin Industry

    Baozun is China’s biggest provider of end-to-end e-commerce services for major brands. It does everything companies need to run online stores—warehousing, marketing, call centers, web-page design and more. Baozun’s leading position looks secure as big foreign companies, which constitute most of its customers, appear pleased with its services.

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    Fathom China

    Local Chip Projects Fail

    In this issue • China’s local semiconductor projects fail. National-level chip projects are going strong but man local-level projects are dying, and the latest to drop is the Tacoma project in Nanjing. • Huawei seeks solution to Google Mobile Services. Huawei’s problem is much deeper than access to the Android operating system. • Oppo registers IP for a new chip. Chinese handset makers want to break their reliance on Qualcomm. • Huawei under...

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    Fathom China

    iQiyi To Raise Subscription Rates, Positions Itself To Expand Abroad

    In this issue • iQiyi to raise rates at home, challenge Netflix abroad. iQiyi says it will finally raise prices in China to continue its lavish spending on content, yet will hold prices low overseas to build an audience and challenge Netflix. • Party-owned media scolds VOD industry. Communist Party-owned media accuse VOD companies of bilking subscribers. • NRTA plans monthly reviews of VOD shows. Reviews could exert even more pressure on VOD...

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    Jonjee Hi-Tech Industrial And Commercial Holding

    Jonjee Hi-Tech Industrial and Commercial Holding (“Jonjee”) makes and sells condiments that are essential to Chinese cuisine, including soy sauce and chicken-flavored powder. It also engages in real estate development and auto parts manufacturing.

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    Fathom China

    Alibaba: Making Nice With The State

    Many observers of China’s internet companies have a perception that Alibaba Group Holding (“Alibaba”) is in trouble with the government. We have heard concerns that Alibaba is too big to control, too rich at a time of looming economic hardship, and that now-retired founder Jack Ma is too powerful. Two developments support that theory: Ma’s resignation, and a new e-commerce law that took effect in January 2019. Yet Fathom China disagrees. We see...

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    Yixintang Pharmacy Chain

    Yixintang Pharmacy Chain (“Yixintang”) is a regional discount pharmacy chain selling over-thecounter (“OTC”) and prescription drugs. It derives all revenue fromone province.

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    Fathom China

    Baidu: Falling From The Ranks

    Baidu is falling from the ranks of the great powers. Unlike the other BAT companies, Alibaba Group Holding (“Alibaba”) and Tencent Holdings (“Tencent”), Baidu has not thrived on mobile phones or in markets outside its core search business. Instead, Baidu’s effort to scrape more income from search has alienated users, who increasingly find Baidu’s results irrelevant or even dangerous. Baidu has good prospects in the booming market of cloud...

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    Topchoice Medical Corporation

    Topchoice Medical (“Topchoice”) operates dental hospitals and fertility treatment centers. It earns the bulk of its revenue from East China’s Zhejiang province.

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    Fathom China

    New National IC Fund, Vivo Teams Up With Samsung

    In this issue • New chip fund with new goals. Beijing has launched the second iteration of its National IC Fund with a different set of target recipients. • Vivo seeks to reduce reliance on US chips. Chinese handset maker Vivo has unveiled a 5G chip for mobile handsets that it designed jointly with Samsung in an apparent effort to break its reliance on Qualcomm. • YMTC memory chips find in-house buyers. Tsinghua Unigroup subsidiary YMTC is...

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    Fathom China

    Chinese VOD Firms Moving Abroad

    In this issue • VOD companies take Chinese content abroad. With government support, Chinese VOD companies are setting up overseas, especially in Southeast Asia. • iQiyi spends big, others cut back. Despite growing net losses, iQiyi is budgeting huge sums on new content even as its competitors slash their content budgets. • Netflix production flops in China. Chinese viewers like a new HBO series but not a new Netflix one. • Western stars at Youku...

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    Foshan Haitian Flavoring And Food Company

    Foshan Haitian Flavoring and Food (“Haitian”) makes and sells condiments that are essential to Chinese cuisine, including soy sauce, oyster sauce and soybean paste.

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    Goertek

    Goertek is a manufacturer and assembler of acoustic components and products for consumer electronics makers. Its main products are MEMS microphones, wireless earphones and intelligent speaker boxes. It has also expanded into smart hardware, including augmented reality/virtual reality (“AR/VR”) goggles and smart wearables.

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    LONGi Green Technology

    LONGi Green Technology (“LONGi”) makes and sells mono-crystalline silicon (“mono-si”) wafers, battery chips and modules for the photovoltaic (“PV”) industry.

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    Fathom China

    How VOD Companies Help Make Better Propaganda

    In this issue • VOD firms make propaganda better. The government is improving the quality of its propaganda by pushing “media integration.” • NBA ban great for Tencent Video. With CCTV refusing to show NBA games, Tencent Video looks set to gain a bigger audience for its rebroadcasts. • NRTA official moves to Hunan. China’s top state-owned VOD site has a new leader. • New film festival for online movies. China’s VOD firms want to take another...

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    Handset Makers Want In-House Chip Capabilities

    In this issue • Big Chinese handset makers want chip capabilities. Oppo and Vivo want to design chips; unclear is whether the goal is to replace Qualcomm. • Samsung boosts investment in China fab. Samsung will invest another US$4bn in its NAND fab in Xi’an city. • AMD sales pitch in Beijing. AMD held a big sales meeting to pitch is CPUs and GPUs. • Chengdu city selling fab cheap. Chengdu is putting GlobalFoundries’ abandoned fab on the block at...

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    ADAMA

    Adama is the world’s 6th largest agrochemical firm. Its main products are off-patent pesticides, which are pesticide products made from active ingredients with expired patents. Most of its sales are earned from overseas markets.

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    Centre Testing International Group

    Centre Testing International Group (“CTI”) provides independent testing services for product quality, safety and performance, on everything from toy cars to real cars.

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    Lepu Medical Technology (Beijing)

    Lepu Medical Technology (Beijing) (“Lepu”) is a leading provider of medical equipment, drugs and medical consulting services, with a focus on cardiovascular (“CV”) diseases.

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    Meinian Onehealth Healthcare Holdings

    Meinian Onehealth Healthcare Holdings (“Meinian”) is China’s largest private operator of health screening clinics. It serves individual customers and corporate clients that provide health checkups as staff benefits.

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    Big Week For Memory, And For Huawei

    In this issue • 3D NAND breakthrough. China’s national memory champion, Yangtze Memory Technologies, says it is launching mass production of 3D NAND, and its parent company says it is moving into DRAM. • DRAM breakthrough. China’s national DRAM champion, YMTC, says it too is almost ready for mass production. • Arm resumes licensing to Huawei. Top Arm executives say their chip architecture is unaffected by US export sanctions. • Apple under fire...

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    VOD Industry Faces Lockdown

    In this issue • Welcome to high political season. Censorship and “media integration” rise to new heights as the Communist Party prepares to celebrate 70 years in power. • Youku launches a new marketing campaign. Youku has paired with China’s version of Twitter to promote new shows. • The NRTA wants shorter dramas. The regulator thinks long drama series are boring. • Youku and Intel promote AI. A co-produced series explains that artificial...

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    Dingli: Poised For A Lift

    Zhejiang Dingli Machinery (“Dingli”) enjoyed first-mover advantage in China’s soaring market for aerial work platforms—machinery like cherry pickers that allow workers to operate safely from several stories high. Dingli started early, built a technology advantage and has a strong distribution network. Although it is considered expensive in China, its equipment still sells at 20% less than that of foreign competitors. Dingli is poised to benefit...

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    Beijing Shiji Information Technology

    Beijing Shiji Information Technology (“Shiji”) provides the hospitality and other industries with information management solutions like point-of-sale software and hotel front-desk systems. It also distributes third-party hardware like point-of-sale machines and printers.

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    Dian Diagnostics Group

    Dian Diagnostics Group (“Dian”) provides hospitals and medical institutions with diagnostic products, and also outsourced diagnostic testing including genome sequencing and cancer.

    0
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    Zhejiang Weixing New Building Materials

    Zhejiang Weixing New Building Materials (“Weixing”) makes mainly high-end plastic pipes for water, gas and sewage in buildings ranging from private homes to Beijing’s Olympic stadium.

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    Han’s Laser: A Story With More Holes Than Swiss Cheese

    Han’s Laser Technology Industry Group (“Han’s Laser”) misled shareholders about a huge real-estate investment in Switzerland. The company bought a property in the ski village of Engelberg and called it a research center. As the small renovation budget swelled to US$140mn, Han’s Laser told a series of half-truths to hide its real plan: owning a tourism hotel. The investment creates manifold opportunities for undisclosed related-party transactions...

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    Beijing Hints At VOD Market Opening

    In this issue • Beijing mulls foreign ownership of VOD sites. Statements from Beijing city officials suggest that reforms under consideration include allowing the likes of Netflix into China. • Government restrictions on TV stations affect VOD sites. It is high political season, and VOD sites are looking for cover. • Big Map Attack. A Chinese production company joins the list of foreign airlines and travel agencies that have fallen afoul of the...

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