Find out what moves China tech with us. We round up what you need to know about the local venture scene every Thursday at 8:00 a.m. (GMT +8), covering major investment stories, MNC partnerships, noteworthy startups, industries with the most investments for the week, and more.
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MNCs
On December 1, Munich-based luxury sports fashion brand Willy Bogner GmbH & Co. KG a.A. entered into a joint venture with a subsidiary of Bosideng International Holdings, a major Chinese apparel group. With this partnership, both companies aim to bolster sales for the Bogner and Fire+Ice brands in Greater China.
Notably, the partnership was forged ahead of the 2022 Winter Olympic Games in Beijing. Cashing in on China’s fast-growing snow sports market, the collaboration is expected to enhance the omni-channel retail and management capabilities of both companies. Over the next five years, Bogner plans to establish an extensive digital presence in China and open around 80 retail stores in well-known luxury malls, such as Plaza 66 in Shanghai and WF Central in Beijing.
Going Public: IPOs
Leading drug developer Asymchem was valued at above HKD 97 billion (USD 12.4 billion) after its December 10 debut on the Hong Kong Stock Exchange. It raised around HKD 7.15 billion (USD 920 million) for this IPO, making it the biggest listing in Hong Kong since Dongguan Rural Commercial Bank’s USD 1.2 billion deal in September.
Founded in 1999, Asymchem is a contract development and manufacturing organization (CDMO), providing R&D and one-stop production services to the world’s top pharmaceutical companies. This includes Merck Sharp & Dohme, Pfizer, Bristol Myers Squibb, Fosun Pharma, and more.
Asymchem’s revenue trajectory consistently moves up. The company raked in RMB 1.82 billion (USD 290 million) in 2018, RMB 2.45 billion (USD 380 million) in 2019, and RMB 3.14 billion (USD 490 million) in 2020, with a CAGR of 31.2%. To limit its reliance on large orders, Asymchem plans to develop production capabilities in new drug categories, such as polypeptide antibiotics, monoclonal antibodies, and mRNA.
KrASIA News Picks
China’s tightened regulations and new policies now define a time of uncertainty for many internet companies. As companies attempt to cope with the continued crackdown, there is a bigger question here: how will these developments affect China’s internet culture and the lives that are dependent on it?
Read more about these issues in this week’s News Picks featuring Douban’s removal from China’s app stores, Alibaba’s bet on Jack Ma’s protégé, and the continued uncertainty around gig workers’ improved labor conditions.