China Tech Newsletter – April 15, 2015

Ninebot E Personal Transporter (image: Ninebot)
Ninebot E Personal Transporter (image: Ninebot)

Ninebot, Beijing- headquartered personal transportation device maker, announced the signing of an agreement to acquire its US-based competitor Segway. Financial terms of the acquisition were not disclosed.

Segway’s first two-wheeled battery-powered electrical vehicle was unveiled in 2001 and many latecomers to this industry including Ninebot (founded in 2012) are believed to have modelled Segway’s products. Through the acquisition Ninebot will obtain more than 400 Segway’s patents, according to the press release.

Ninebot also announced today a US$80 million round of funding raised from Xiaomi, Shunwei Capital Partners (the VC firm co-founded by Xiaomi CEO Lei Jun), Sequoia Capital and WestSummit Capital. It is expected Ninebot products will soon be available on Xiaomi’s online store as the fast-growing Chinese smartphone maker has been adding new gadgets produced by companies it has acquired or invested in onto its store. launches JD Worldwide, a cross-border e-commerce platform for international retailers to sell goods directly to Chinese consumers. 450 stores have been established on the platform offering goods from more than 1200 brands.

On the platform there’s also a “Best of eBay Deals” channel that features selected eBay sellers from the U.S.

The service is supported by favorable trade policies in China’s e-commerce free trade zones that JD “employs bonded warehouses to ensure the fastest times for customs clearance and delivery to consumers”, according to the company.

Alibaba Group announced to transfer the operating rights for Tmall online pharmacy business to its healthcare arm Ali Health (00241.HK) in exchange for shares and convertible debt. After the deal, which is expected to complete in the third quarter this year, Alibaba Group will hold 53% a stake in Ali Health, up from current 38%.

There are 186 Tmall shops selling over-the-counter drugs, medical devices, contact lenses and other healthcare products that are allowed to be sold online in China. The total sales revenue in the year ending March 2015 was RMB4.74 billion (about USD765m), according to the company.

Rongdu Science and Technology, peer-to-peer lending software developer, announced RMB66.25 million (about USD11m) financing from Hundsun Technologies Inc. (600570.SH), the developer of financial services software in which Alibaba’s Jack Ma has more than 20% a stake, and Yunhan Investment (our translation), the venture capital firm founded by core members of Hundsun. (announcement in Chinese)

Hundsun and Yunhan now hold a combined 46.9% stake in Rongdu.

Legend Holdings, the parent company of Lenovo Group, has reportedly filed for Hong Kong IPO to raise USD2-3 billion(source) .

Baidu has acquired enterprise security solution developer Anquanbao. Terms of the transaction were not disclosed.

Personal finance app Suishouji announced Series B+ round of funding led by Source Code Capital and participated by Fosun, claiming the amount is over USD10 million. The company announced Series B round of funding seven months ago. (source in Chinese).


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