KrASIA weekly: ZTE in state of shock after US ban; DJI ditching traditional fundraising

Here are some stories and ideas from the past week that you shouldn’t miss.

Photo credit: KrAsia

Good Sunday afternoon. This is Xiaochun.

After the US banned American companies from selling components to ZTE, the Chinese telecom equipment manufacturer said last week that the company is in a “state of shock”.

Previously in 2017, ZTE pledged guilty for shipping US equipment to Iran and North Korea and agreed to pay $1.19 billion in penalties. But the US government said ZTE made false statements regarding reprimanding employees involved.

The US ban triggered a discussion in China about lowering dependence on US parts suppliers. Under the circumstances, Alibaba announced on Friday it has fully acquired C-SKY, a Chinese company that claims to be the country’s only chip maker that mass-produces integrated CPU IP cores.

While ZTE is struggling to survive, DJI, the world’s largest consumer drone maker, is boldly ditching the traditional way of fundraising. Instead of employing a financial advisor, the company is selecting investors through a bidding process for its $1 billion round at a $15 billion valuation.

Over 100 investors have propelled the total sum for the round to over 30 times oversubscribed. Investors have high expectations for the company’s future growth, in part because of its excellent profit-making performance. In the past three consecutive years, the company’s net profit surged 200% from RMB 1.42 billion (around US$225.6 million) in 2015 to RMB 4.3 billion (around US$683.1 million) in 2017, according to local media All Weather TMT.

With the fresh funds, DJI is likely to expand to the drone market that targets enterprise clients, making its future even more brighter.

Here are some stories and ideas from last week that you shouldn’t miss.

CHINA

World’s Largest Commercial Drone Maker DJI Boldly Let Enthusiastic Investors Bid for Financing

Alibaba Acquires Chinese Chip Maker to Lower Dependence on Outside Suppliers

Tencent Invests $98M in News Video App to Compete with Toutiao’s Video App Matrix

China’s Ofo plans to take over running of Hong Kong’s GoBee Bike

ZTE chairman appeals for calm amid US ban ‘crisis’

Tesla Gets Edge Under China’s Relaxed Rules for Foreign Automakers

Ant Financial, Xiaomi, and Saudi Aramco Highly Likely to List in Hong Kong, Says HKEX Chief Executive

Tencent Launches Google Docs-Like Tool to Rival Alibaba and Toutiao in Enterprise Services

Southeast Asia

Is Ofo Backing up Singapore’s GSELab Just a Rumour?

Alibaba Invests $352M in Thailand to Brace for Upcoming Competition with Tencent and JD.com

Singapore ComfortDelGro Acquires London Taxi Operator for UK Expedition

Singapore’s competition watchdog sets interim terms for Uber-Grab deal

Singapore to test facial recognition on lampposts, stoking privacy fears

Singapore’s Temasek expresses interest in buying HNA’s Hong Kong airlines stake

Xiaomi Just Made the Third Attempt at Blockchain 

Baidu Ties up with Meituan on Driverless Food Delivery in Xiong’an New Area

UOB Setting up Fintech JV to Tackle SEA Unbanked Market

Noteworthy Startups

Ant Financial Invests in Gadget Rental Startup Neisha’s Tens of Millions of Yuan Financing Round

Tencent Invests $4.8M in Gaming Influencer Agency, Completing its Game-Streaming Matrix

Healthcare Service Provider HyTriage Scores US$4 Million in New Funding Round to Fuel Market Expansion

IDC Predicts the Chinese Robot Market to Grow Twice its Size by 2020; Robot Manufacturer X Robot Raises US$1.5 million