China Tech Newsletter – April 23, 2015

Alibaba Pictures Group (01060.HK) has acquired YKSE, cinema management software and ticketing app developer, for RMB830 million (about US$134m).

Fenghuang Jiaying of YKSE is one of the six cinema management systems that holds a license granted by the Chinese authorities, as pointed out by

YKSE provides ticketing system and operational support to major Chinese mobile ticketing services, including Tencent’s on QQ and WeChat, Alipay’s, Meituan’s CatEye Movies (our translation), Gewara, Mtime, China Mobile’s and China Telecom’s.

The company recorded RMB52 million (about US$8.4m) in revenues in 2014 with RMB11 million (about US$1.8m) in net profit.

WeChat released an API to enable businesses to transfer money to users. Currently users are able to send money to WeChat accounts of either individuals’ or businesses’.

The total assets under management of Yu’e Bao, an online investment fund for Alibaba’s Alipay users, reached RMB711.7 billion (about US$115b) as of the first quarter, a 23% quarter-on-quarter increase.

Yu’e Bao was launched in June 2013 jointly by Alipay and Alibaba’s majority controlled Tianhong Asset Management. 185 million Alipay users purchased the fund as of the end of 2014.

Baidu Wallet (our translation), the online payment service of Baidu, will reportedly go live on Uber tomorrow. (via Sina Tech)

But it is believed China’s mobile payments market is dominated by Alibaba’s Alipay and WeChat Payment.

Ganji Haoche, the customer-to-customer used car marketplace launched in late 2014, has expanded to 22 cities. Ganji provides valuation experts and takes a 3% transaction fee. Its parent company plans to invest US$200 million into the project this year. (via Tencent Tech)

Alibaba Literature (our translation) launched today. Similar to other online reading platforms in China, Alibaba’s will introduce authors, publishers and copyright holders.


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