Foxconn Unit Planning $4 Billion Investment After IPO

Foxconn Industrial Internet Co., is seeking to use proceeds from an initial public offering in China to bankroll 27.3 billion yuan ($4.3 billion) investment in next generation projects.

A unit of Hon Hai Precision Industry Co., the Taiwanese manufacturing giant responsible for making Apple iPhones and Amazon fire tablets, Foxconn Industrial is looking to fund eight new technology projects, the firm said in an application prospectus on the China Securities Regulatory Commission website.

Led by billionaire Terry Gou, Hon Hai is moving into sectors beyond pure electronics assembly as growth in the global smartphone industry sputters. Floating Foxconn Industrial is one part of this strategy with proceeds to be used to support research into next-generation telecommunications and the Internet of Things. The firm is also building a $10 billion display factory in the U.S. that’s won endorsement from President Donald Trump.

Foxconn Industrial had sales of 354.5 billion yuan in 2017, up from 272.7 billion yuan a year earlier, according to the prospectus. Net income climbed to 15.9 billion yuan from 14.4 billion.

Industrial internet platforms, data centers, cloud computing, communications Internet and cloud service equipment, 5G and IoT solutions, artificial intelligence manufacturing and intelligent manufacturing capacity expansion are among projects Foxconn Industrial intends to fund, the prospectus said.

Foxconn said it will support the projects with bank loans if share proceeds aren’t sufficient. The prospectus didn’t disclose an issue price or the number of shares to be listed.

By –Bloomberg

Alibaba signs deal to offer Disney shows on video platforms

Alibaba Group Holding Ltd’s entertainment arm has signed a licensing agreement with Walt Disney Co in a deal that will provide the Chinese group’s Youku video streaming platform with the largest Disney animation collection in China.

Alibaba said in a press release on Monday that the multi-year licensing agreement signed between Alibaba Digital Media and Entertainment Group and Disney subsidiary Buena Vista International Inc will see more than 1,000 Disney episodes released on Alibaba platforms which include set-top boxes.

The deal comes as Disney has faced obstacles in getting digital television content into China. In 2016, its DisneyLife online content venture, which it launched with Alibaba, was shut down by Chinese regulators less than five months after operations began. The reason for the shutdown was not made public.

“The addition of Disney content greatly enriches the library of quality international content on Alibaba’s media and entertainment ecosystem, giving us a leading edge in foreign content distribution in China,” said Yang Weidong, president of Youku at Alibaba Digital Media and Entertainment Group.

Alibaba did not disclose the value of the deal.

Youku reaches 580 million devices and gets about 1.2 billion views each day, according to Alibaba’s news website Alizila. It said the platform already has similar licensing deals with Warner Bros., Paramount, Fox, NBCUniversal and Sony Pictures Television, among others.

By– Reuters

Porsche, Audi to develop joint electric car platform to save costs

Porsche and Audi, Volkswagen’s main luxury car divisions, plan to develop a joint platform for electric vehicles that will enable them significantly cut down on costs, German newspapers quoted their chief executives as saying.

“By 2025, we’re facing a low single-digit billion euro sum to develop the architecture,” Audi CEO Rupert Stadler told both the Stuttgarter Zeitung and StuttgarterNachrichten.

“If both would act on their own, costs would be 30 percent higher,” Porsche CEO Oliver Blume said, adding Audi was hiring 550 developers for the project and Porsche 300.

From 2021 onwards, both businesses want to bring several models to the streets based on the joint platform, with Stadler saying that would build two sedan cars in Neckarsulm and two sports utility models at its Ingolstadt base.

Porsche’s Blume said the sportscar maker could build its first model based on the joint architecture in Leipzig, where it is already assembling its Macan sport-utility model. “I currently see good chances for Leipzig,” Blume said.

From – Reuters

Alibaba kicks off sponsor deal in Pyeongchang

Alibaba Group Holding Ltd is launching a project that will create a “smarter” and more connected athletes’ village and stadia and make all Olympics stakeholders “more money”, its executives said on Saturday.

Many of Alibaba’s plans are still concepts since it has not had enough time to implement its technology after signing a deal last year worth hundreds of millions of dollars as a cloud and e-commerce partner with the International Olympic Committee.

But IOC president Thomas Bach said some of Alibaba’s plans “can become operational pretty soon” while Alibaba founder Jack Ma said they expected to be realized at the next Winter Games in Beijing in 2022.

“We want to make the Olympic Games so everyone can make more money,” Ma said, adding that “everyone” meant groups such as host cities’ organizing committees, athletes and sponsors.

Alibaba is one of the few top Olympics sponsors signed with the IOC until 2028.

It has said it wants to upgrade the technology that keeps the Games running.

It also unveiled its “sports brain,” on Saturday, a suite of software products designed to improve the back office of how sports events are run.

Ma, who appeared onstage with Bach, said he was moved by North Korea and South Korea marching together in the opening ceremony on Friday since it reflected “peace and prosperity”.

Former NBA player Yao Ming was in the audience at the media conference, which featured an interpretive dancer and a magician pulling a bird out of a hat.

Alibaba has about 200 to 300 employees on the ground in Pyeongchang to study how the games run and help find ways to save future host countries money.

Alibaba’s Tmall and Taobao shopping platforms dominate online retail in China. But it is not well known in many parts of the world, including in the United States where Amazon.com Inc is the e-commerce leader.

It is using an international branding campaign focused on the Olympics to help introduce it to markets such as the United States and Great Britain.

From – Reuters

Car booking app expands out of Penang

PENANG-based car booking app Mula Car will be increasing its fleet of cars to 750 from 250 currently to expand its coverage outside of the state.The booking platform is owned by Mula Car International Sdn Bhd.

Its managing director Goh KokPeow says the new cars would be for its operations in Penang, Kuala Lumpur and Johor.According to Goh, there is growth potential in a new market like Johor due to the number of visitors from Singapore.Its car services should start in Johor by June.

“Subsequently, we will open in Malacca, Seremban, and Ipoh before the end of 2018. We will study the market in these states before investing in additional cars,” he says.

“Since we started last May, the growth is about 20% every month.

“For this reason, we expect to achieve about 160,000 rides provided by end-April. By April 2019, the number of rides should increase to 400,000,” he adds.

Apart from its car booking business, the company also intends to ramp up its courier services under Mula Parcel.

“We are also providing courier services for parcel and hamper delivery. This is targeted at those customers with parcels that need to be couriered in less than half a day.

“The normal time taken by our competitors to deliver a parcel is about eight hours. We can do it in less than half a day,” he added.

While there are many other car-hailing apps in town as well as other providers offering courier services, Goh says his company will compete and carve a niche for itself in the market on the safety front.

“We want to provide safe and reliable services, so we check the background of our drivers very carefully.

“Because we are very stringent with the process, it takes us a month just to engage 50 drivers.

“We check their financial background to make sure that the drivers don’t owe loan sharks any money, lest they are being chased and can’t execute their duties reliably.

“We screen their health status too to make sure they don’t have communicable diseases,” he explains.

After the medical and financial screening process, the drivers are required to attend workshops on ethics and advanced driving skills, according to Goh.Goh also says that Mula Car has just launched its Mula Pink ride, which is designed for female passengers who prefer female drivers.

“They can book such rides via the Mula application,” Goh says.

The app is also operating in China via a partnership with some local entrepreneurs. Its services were launched in November.“Our services are now found in Shenzhen and across 55 other cities in China.“We plan for Mula Car to start in Indonesia and Thailand in 2019,” he adds.

Goh says he embarked on the business because of the potential growth of Internet-based business.“If the right model is adopted, an Internet-based business could grow very fast,” he notes.Mula’s fleet comprises the Proton Ertiga, Proton Perdana, Hyundai Sonata and Starex cars.

The company plans to have 2,000 new cars on the road all across Malaysia by 2019 with the intention of providing safety and comfort to travellers, says Goh.

From – The Star

Potential Excelerate Group 9 Temasek Boulevard Suntec Tower 2 #09-01 Singapore 038989
+65 6407 1344