BEIJING, July 17, 2020 — Tencent-backed Chinese short video platform Kuaishou has announced the agreement of a "strategic alliance" with Formula E, the FIA-backed single-seater motorsport championship.
The agreement will see Kuaishou take on several designations, including Formula E’s exclusive short-video content partner, exclusive live streaming short-video platform, and official promotional partner.
Kuaishou is China’s leading short video platform with over 300 million daily active users browsing a user-generated content archive of over 20 billion videos, according to the data announced by the company in January 2020.
Under the collaboration with Formula E, more exclusive content including race highlights, behind-the-scenes footage and driver profiles will be created on Kuaishou.
Kuaishou and Formula E said they will also be exploring jointly-created events, live streams, and the use of ‘multi-channel networks’ to attract a broader audience to the race series.
"We are glad to establish such win-win strategic cooperation with Formula E and looking forward to see Kuaishou’s coverage and penetration in China to effectively help global IPs such as Formula E to expand their brand influence in China," said Yan Qiang, senior vice-president of Kuaishou.
The video archive of the Kuaishou app has 35 categories of sports content, including basketball, football, table tennis, motorsport, as well as activities such as fishing, skateboarding and parkour. There are over 40,000 high-quality sports video creators and more than 1.2 billion sports activity browsers on the platform.
Chinese short-video giant Kuaishou reaches partnership with Formula E
"We hope that this collaboration with Kuaishou can push forward the domestication process of Formula E in China, not to mention the development of the Chinese racing culture," said Elms Wang, CEO of Enova Holdings, the exclusive organizer of Formula E in China.
Enova Holdings has the right to commercialize all rights relating to Formula E in Greater China, including sponsorship, ticketing, media rights, hospitality, gaming, and live performances and shows.
The 2019-20 Formula E season, which was cut short due to the Covid-19 pandemic, had two Chinese racing teams, NIO 333 FE Team and DS Techeetah; one Chinese driver, Ma Qinghua, racing for NIO 333 FE Team; and a Chinese Grand Prix, the Sanya ePrix, which was set for March 21 before it was canceled due to Covid-19.
About Kuaishou Technology
Kuaishou Technology, headquartered in Beijing, China, runs Kuaishou, one of the world’s leading short video social platforms since 2011, boasting more than 300 million daily active users so far. Users can use the platform to create and share videos with friends and their communities through posts, likes and comments. Known for its active and vibrant community with more than 20 billion daily views, the app is available on iOS and Android.
GUANGZHOU, China, July 17, 2020 — In 2020, ShopSave, the newest social sharing-oriented shopping guide e-commerce platform went live. It was launched by Ruiku Information Technology Co., Ltd. Terry Wang, CEO, says: "ShopSave seeks to satisfy consumer’s demand for cost-effective branded and high-quality products and strives to build ‘Buy to Save, Share to Earn‘ e-commerce ecosystem, in order to promote the optimization and upgrading of the mobile e-commerce industrial structure".
ShopSave brings huge amount of products with super discounts, high cashback and high commissions, so that you can save money and make money just by moving your finger! (Screenshot of interface of ShopSave APP)
Nowadays, the cost of traditional e-commerce customer acquisition is high, and the underlying purchasing power cannot be activated, but the network information channels are becoming more abundant, the trading information is becoming more symmetric and transparent. People begin to realize the limitations of traditional traffic channels, and the interest to flow of the Social platform users is rapidly increasing.
As AliExpress’s official cooperative cashback platform, ShopSave will immediately release the latest hidden coupons, as long as any of AliExpress’s products have promotions, and any user who downloads ShopSave can use it to buy the same product at a lower price. The certain percentage from the amount of money spent by user will be returned to them as a cashback, so they can withdraw it periodically. It is worth mentioning that the process of obtaining coupons from ShopSave is highly convenient. User only has to copy the link of the product he wants to buy on AliExpress and open ShopSave to automatically paste the searched coupon.
Exposure through advertising and improving ranks is no longer the only way for e-commerce to acquire customers, so getting more traffic through social channels has become another competition point for e-commerce merchants. Merchants are joining the promotional cashback activities, and ShopSave shares the most of this promotional commission to user, which is helping user to get more benefits and increasing the activity of their APP and users’ participation at the same time.
When user shares the goods with others to buy through ShopSave, it is equivalent to helping the merchant to promote their products, so the commission is the promotion fee paid to the user. In other words, the more they share, the more commissions they get. In order to involve more users, ShopSave provides an additional opportunity for each user to start their own business with 0 costs. The user invites others to register as members of ShopSave. Every time one of these persons makes a purchase through ShopSave, the user gets a substantial commission income, so, basically, it allows them to make money while doing nothing.
It is precisely because this is a win-win strategy, it has quickly become an ancillary industry of e-commerce shopping APPs. With the rapid development of e-commerce, the content guide e-commerce platforms will increase their influence at market, so the cashback and coupons APP, such as ShopSave itself, has huge development prospects.
About ShopSave
ShopSave brings huge amounts of products with super discounts which have high cashback and high commissions. Here, you can get the coupons first, then save money on shopping and earn commissions by sharing goods. After your friend buys the products you have shared, ShopSave will reward you with some of the benefits. The more friends you shared with, the more benefits you get.
ShopSave utilizes Facebook, Instagram, Twitter and Whatsapp to create a Sales oriented and Sharing ecosystem: join as VIP member by purchasing any gift package, invite friends, Share the business can get a generous income. ShopSave provides highest quality service for everyone to join as entrepreneur and to achieve personal entrepreneurial goals. It helps all the members to buy cost-effective goods without leaving their homes and to gain the opportunity of starting business to realize their financial freedom!
ShopSave provides one-click pre-sale and after-sale customer service, logistics, as well as other services, without hoarding compaction. To provide VIP members with ZERO (0) risk of entrepreneurial opportunities.
BEIJING, July 17, 2020 — iQIYI, Inc. (NASDAQ: IQ) (“iQIYI” or the “Company”), an innovative market-leading online entertainment service in China, recently released multiple blockbuster drama series, including The Bad Kids (the “Show”), an iQIYI original suspense series which has become a hit sensation in China for its strong story narrative and production quality. The Show is released as part of iQIYI’s Mist Theater, a content section dedicated to original iQIYI suspense dramas, and tells the story of the consequences different families face after three children accidentally witness a murder. Aside from The Bad Kids, We are All Alone, TientsinMystic 2, and Kidnapping Game, are also the latest iQIYI original drama series to receive critical praise for their production quality, representing iQIYI’s dedication to advancing the Chinese entertainment industry’s production landscape.
Having received a rating of 9.0 on Douban, an influential Chinese social media platform known for its movie and TV show reviews, the Show represents the highest rated drama series produced in mainland China over the past 18 months. In addition to receiving critical acclaim, The Bad Kids has also sparked widespread discussion on Chinese social media. Hashtags related to the Show have appeared on Weibo’s trending topics list 51 times, of which five hashtags have been ranked number one on the list. The Show also topped Chinese micro-blogging site Weibo’s TV show ranking for a consecutive 23 days. In the last week, it ranked No.4 on iQIYI platform’s trending list in the US and No.2 in Canada.
The Bad Kids and other series such as We are All Alone, Tientsin Mystic 2, and Kidnapping Game represent iQIYI’s recent works that reflect the Company’s commitment to focusing on the quality of its story narratives, diversification of its content categories and exchange of cultural values. For example, We are All Alone‘s storyline and characters have been praised for its authentic depiction of the entertainment industry; The production of Tientsin Mystic 2 represents iQIYI’s determination to create high-quality IP franchise; Kidnapping Game is an adaptation of The Name of the Game is a Kidnapping, a mystery novel by the renowned Japanese author Higashino Keigo. This focus on high-quality production standards is the key driver behind not only the continuous success of iQIYI’s original productions but also the overall progression of Chinese entertainment productions.
“In recent years, iQIYI’s original productions have sparked heated discussion amongst domestic and overseas users,” said Wang Xiaohui, Chief Content Officer of iQIYI. “iQIYI has always valued the importance of having quality content and diversified content categories over elements such as the celebrity appeal of actors. We are glad to see that our adherence to this model has earned our brand the mark of great content that carries layers and meaning. We will continue to devote ourselves to these values and lead the way in letting the international community know that the Chinese entertainment industry is capable of producing world-class quality content.”
The Bad Kids marks the most recent of a string of iQIYI original productions that have achieved remarkable domestic and international popularity and received widespread critical acclaim. During the past two years, iQIYI has also introduced a variety of blockbuster original dramas such as Story of Yanxi Palace and The Thunder. For example, the Qing dynasty-based period drama Story of Yanxi Palace, known for its accurate and detailed portrayal of traditional Chinese culture, was released in 2018 to significant popularity and became the most viewed Chinese drama series for 40 consecutive days during its run, receiving 700 million daily views at one point and eventually becoming the most google drama series of 2018. VIP-member-only early access to the series’ finale attracted a total of 53 million views from iQIYI VIP members. The Thunder, an iQIYI original realism drama production that was released in 2019, topped China’s national TV ratings ranking for 22 consecutive days upon its release and received a Douban rating of 8.5.
Regarded as milestones of Chinese TV production, these shows are representative of iQIYI’s emphasis on its progression in producing high-quality and diversified content. Going forward, iQIYI will continue fulfilling its commitment of producing only content of the highest quality by placing narratives and values at the center of its productions, and continue to produce breakthrough content that leads the production standard of Chinese entertainment content.
About iQIYI, Inc.
iQIYI, Inc. is an innovative market-leading online entertainment service in China. Its corporate DNA combines creative talent with technology, fostering an environment for continuous innovation and the production of blockbuster content. iQIYI’s platform features highly popular original content, as well as a comprehensive library of other professionally-produced content, partner-generated content and user generated content. The Company distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. iQIYI attracts a massive user base with tremendous user engagement, and has developed a diversified monetization model including membership services, online advertising services, content distribution, live broadcasting, online games, IP licensing, online literature and e-commerce.
XIAMEN, China, July 17, 2020 — Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT), a producer, developer and operator of augmented reality (“AR”) interactive entertainment games, toys and educational materials in China, today announced the closing on July 15, 2020 of its previously announced sale of $3,262,000 of senior secured convertible notes in a private placement to two accredited institutional investors, together with the issuance of warrants to acquire up to 784,000 ordinary shares of the Company, for an aggregate cash purchase price of $2,800,000 (reflecting an original issue discount of $462,000).
“We are pleased to announce the closing of the transaction previously announced on July 9, 2020,” said Mr. Xiaodong Chen, Chief Executive Officer of Blue Hat. “We believe this investment helps strengthen our financial position and provides the Company with the resources to grow its business. As a consumer-centric company, we are committed to providing our users with an engaging and interactive experience.”
FT Global Capital, Inc. acted as exclusive placement agent for the transaction.
Further details regarding the transaction can be found in the Company’s Reports on Form 6-K filed with the Securities and Exchange Commission on July 9, 2020 and the date hereof.
About Blue Hat
Blue Hat Interactive Entertainment Technology is a producer, developer and operator of AR interactive entertainment games and toys in China, including interactive educational materials, mobile games, and toys with mobile game features. The Company’s interactive entertainment platform creates unique user experiences by connecting physical items to mobile devices, which creates a rich visual and interactive environment for users through the integration of real objects and virtual scenery. Distinguished by its own proprietary technology, Blue Hat aims to create an engaging, interactive and immersive community for its users. For more information, please visit the Company’s investor relations website at http://ir.bluehatgroup.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements.
Contacts:
Lexie Zhang Blue Hat Interactive Entertainment Technology Phone: +86 (592) 228-0010 Email: ir@bluehatgroup.net
Blockbuster mobile game PUBG MOBILE is launching social responsibility campaign “Play As One” with in-game challenge and community fundraiser to support the humanitarian aid organization Direct Relief on the COVID-19 global response project
LOS ANGELES, July 17, 2020 — PUBG MOBILE, the worldwide popular mobile game, has partnered with Direct Relief, the humanitarian aid organization, in responding to the COVID-19 pandemic by supplying medical aid to frontline healthcare workers. Starting today, the #PUBGMPlayAsOne campaign is launched with the PUBG MOBILE in-game challenge and community fundraiser for individual players to support and participate and directly in Direct Relief‘s COVID-19 response.
PUBG Mobile Teams up With Direct Relief for COVID-19 Global Emergency Response
Under the global pandemic situation, with the “play for good” initiative of bringing positive impact on society and helping more people, PUBG MOBILE is taking the social responsibility in a worldwide brand perspective and encouraging community members to contribute their own efforts, moreover, in gamer’s way. The campaign is calling out a slogan of “Play As One” to encourage the 600 million PUBG MOBILE players worldwide to team up and play for the same goal for one world, facing the global challenge together.
Starting with the official effort in game, PUBG MOBILE launches the in-game “Running Challenge For Donation” event from July 15 to 28 to engage all players for support. Players’ sprinting distance in-game will be added to the server milestone corresponding to a dollar donation by PUBG MOBILE. A server-wide milestone tracker starting with PUBG MOBILE‘s official donation of $1 million USD, will be increasing incrementally as players running more distance in game. The final amount of donation is to be revealed once reaching the final server-wide milestones.
Besides an in-game event offering official donations, PUBG MOBILE and Direct Relief have developed the dedicated channel here for community members to support the fundraiser by making their voluntary donations. All donations will directly contribute to support Direct Relief‘s emergency response to COVID-19 around the world.
Through the shared love of games, PUBG MOBILE enables the connection with players worldwide and supports the society in the gaming ways. Today’s #PUBGMPlayAsOne campaign is another meaningful effort following the previous #ChickenDinnerAtHome campaign launched during the earlier pandemic period, which encouraged all PUBG MOBILE players to safeguard their health by staying in the safe zone and enjoying chicken dinner at home. By supporting WHO‘s global #PlayApartTogether movement among the games industry, PUBG MOBILE encourages all community members to show team spirit by continuing to enjoy the game in a fun and healthy way.
Players can now support the #PUBGMPlayAsOne campaign by playing in game and can donate directly to Direct Relief at www.directrelief.org/pubgmobile.
Join PUBG MOBILE and Direct Relief in the vital fight to protect the lives of healthcare workers on the frontline, and our friends and communities across the world.
About Direct Relief
Direct Relief is a humanitarian aid organization with a mission to improve the health and lives of people affected by poverty or emergencies — without regard to politics, religion or ability to pay. Direct Relief is responding to COVID-19 globally by providing personal protective equipment (PPE) for health workers; building a medication stockpile to assist with anticipated spike in ICU patients; and boosting support to safety-net facilities to address existing chronic gaps that are likely to grow.
Since January 2020, Direct Relief has rapidly deployed medical aid to support health workers during the COVID-19 pandemic.
For more detail on Direct Relief‘s response around the world, clickhere.
ABOUT PUBG MOBILE
PUBG MOBILE is based on PLAYERUNKNOWN’S BATTLEGROUNDS, the phenomenon that took the world of interactive entertainment by storm in 2017. Up to 100 players parachute onto a remote island to battle in a winner-takes-all showdown. Players must locate and scavenge their own weapons, vehicles and supplies, and defeat every player in a visually and tactically rich battleground that forces players into a shrinking play zone.
For more information, please visit the official PUBG MOBILE accounts on Facebook, Twitter and YouTube.
SHENZHEN, China, July 17, 2020 — ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today announced that it has hosted a live-streaming global 5G SA webinar in partnership with Omdia, a global leading technology research powerhouse.
At this webinar, experts from Omdia and ZTE have shared their insights on the global industry trends of 5G SA, and explored the various 5G SA deployment practices in China.
“56% of telecommunications service providers are preparing to deploy 5G core networks and 5G SA networks in the next 24 months,” said Dario Talmesio, Research Director of Service Providers Strategy at Omdia. “For that, China provides important learning opportunities from real-life implementations, as Chinese telcos are pioneering in 5G SA now.”
Jason Tu, Principle Scientist of NFV/SDN Products at ZTE, has elaborated the benefits of deploying 5G SA networks as well. “NSA/SA dual-mode terminals are now very popular in the market. The large -scale deployments of 5G SA networks in Chinese market have successfully verified the 5G SA end-to-end solutions,” said Jason.
“As the target architecture of 5G networks, 5G SA networks will help operators open a new 2B market. By selling different SLA-guaranteed network slicing to vertical industries, operators will obtain a new revenue source,” Jason added. He believed that speeding up the evolution to SA networks and even hopping directly to them seems to be a reasonable option now.
“With extensive experience in deploying 5G SA solutions in China, Asia and Europe, ZTE is well positioned to work with global operators and provide them with 5G common Core, SA radio networks or hybrid SA/NSA radio networks,” said Alex Wang, Managing Director of 5G RAN Solutions at ZTE.
ZTE has increased the coverage and capacity of 5G SA networks through FAST (FDD Assisted Super TDD), and has further enhanced the capability by virtue of low latency, mobile edge computing, network slicing and network sharing, according to Alex Wang.
ZTE is a provider of advanced telecommunications systems, mobile devices and enterprise technology solutions to consumers, operators, companies and public sector customers. The company has been committed to providing customers with integrated end-to-end innovations to deliver excellence and value as the telecommunications and information technology sectors converge. Listed in the stock exchanges of Hong Kong and Shenzhen (H share stock code: 0763.HK / A share stock code: 000063.SZ), ZTE sells its products and services in more than 160 countries.
Media Contacts:
Margaret Ma ZTE Corporation Tel: +86 755 26775189 Email: ma.gaili@zte.com.cn
Lemon Clove unveils next-gen Virtual Private Network service with speeds up to 118 Mbps, for more secure, faster browsing and increased productivity for offices.
SINGAPORE, July 17, 2020 – During the circuit breaker, people are not able to travel, but they can travel virtually with access to content across the world using Virtual Private Network Proxy Master – at lightning speed. With internet users at an all-time high due to COVID-19, internet security has been critically undermined, despite a rise in demand for streaming services. To meet this demand, Singapore-based Virtual Private Network Proxy Master recently launched its latest update with a new customer support feature to enhance the streaming and browsing experience, keeping customer and user data security for millions across the region.
The service will be offered for free on singular devices with no need to register, while premium users can connect up to 5 devices simultaneously.
Greater Browsing Opportunities
Challenging times often unveil unique businesses who can offer real solutions to the greater public. Virtual Private Network Proxy Master is a free-to-use virtual private network server that acts to mask IP addresses to help the average internet user bypass firewalls and access content.
The free Virtual Private Network service allows for unlimited streaming regardless of location. Users can enjoy renewed access to international film, television, and gaming content without their IP address being tracked or sold for marketing purposes. For example, city-state internet users can pose online as accessing sites and content from another country.
Run singlehandedly by Singapore-based company Lemon Clove, the highly acclaimed Virtual Private Network service has served the needs of over 150 million users in 137 countries to date. Boasting unlimited speed and high encryption bandwidth, this is done through rerouting a user’s internet connection across 6000 fast servers in 40 locations around the world.
The Hidden Benefits of Virtual Private Network
Perhaps a lesser-known benefit of a Virtual Private Network is that it protects internet users from vulnerabilities in public WIFI network connections, such as malware, hacking and viruses. The last thing a user needs during a cliff-hanging action scene is the blinking pop-up reminding them of that shopping cart they laid to rest a month ago.
For businesses, there are additional benefits, with secured browsing, including the freedom to access online resources and secure financial, user customer and business partner data – Adding an extra layer of security to business partnerships.
With privacy hanging onto a thin thread in the digital space, the lesser the footprint, the more one can navigate in the World Wide Web. This benefit is doubled when using a Virtual Private Network that can potentially unlock geo-restricted content, protect users’ identity, and speed up streaming all at once. By masking IP addresses, users can also avoid unnecessary price hikes by global e-commerce and online booking platforms which charge based on location.
Secured with Kill Switch, DNS Leak Protection, IP Address Leak Protection, no-log function and AES256 encryption – Virtual Private Network Proxy Master guarantees a safe and secure environment even with public Wi-Fi networks. For users who heavily rely on such services, the product offers a paid-for VIP premium version which allows connection to up to 5 devices simultaneously. This is compatible with iOS, Android (Only Virtual Private Network Proxy Master Pro), Windows and macOS.
Partnership With Codashop
Parent company Lemon Clove has also recently partnered with Singapore-based company Codashop, a gaming and entertainment top-up platform. Codashop is one of the largest and most trusted top-up websites for games and online entertainment in Asia and beyond. Targeting the million-dollar gaming market in Singapore, local gamers can now rejoice at increased access in the gaming world coupled with reduced lag and pings.
Virtual Private Network Proxy Master is listed under the General Data Protection Regulation (GDPR EU) and protected under the Personal Data Protection Act (PDPC Singapore).
About Virtual Private Network Proxy Master
Virtual Private Network Proxy Master is one of many cutting-edge Virtual Private Network brands under parent company Lemon Clove. Virtual Private Network Proxy Master is using the industry-leading AES256 encryption method which provides a secure tunnel between users’ devices and the internet to protect online privacy and security. Virtual Private Network Proxy Master is compatible with iOS, Android (Only Virtual Private Network Proxy Master Pro), Windows and macOS.
Download V(irtual) P(rivate) N(etwork) Proxy Master on AppStore, Google Play, macOS, Windows and Chrome! For more information, please email business@inconnecting.com.
BEIJING, July 17, 2020 — Jianpu Technology Inc. (“Jianpu,” or the “Company”) (NYSE: JT), a leading independent open platform for the discovery and recommendation of financial products in China, today announced that it has completed its registration and the required information filing for its mobile application, Rong360, with the National Internet Finance Association of China (“NIFA”), the national self-regulatory body for China’s internet finance industry that is backed by the People’s Bank of China (“PBOC”).
Mr. David Ye, Co-founder, Chairman and Chief Executive Officer of Jianpu, commented, “In our almost nine years of operations, Rong360 | Jianpu Technology has long been cultivating a strong track-record when it comes to user privacy protection, data encryption and information safety, treating the security and protection of user data as a critical component and highest priority of our business. We are pleased that the Rong 360 App is included amongst the select accredited list for registration with NIFA. It demonstrates the recognition by government authorities of our secure and reliable operation and service. We will continue to work directly alongside NIFA as we promote intelligent financial services, advance financial inclusion, reduce the barrier and cost of financial services and finally, ensure and encourage consumer rights protection and education.
“As mobile internet continues its expansion as an integral part of our daily lives, cybersecurity is more critical than ever. We will continue to embrace regulatory compliance and collaborate closely with regulators to promote the healthy and sustainable development of the digital finance service industry. With our proprietary technology capabilities and a strict user privacy protection mechanism in place, we remain dedicated to being everyone’s financial partner, providing personalized and convenient financial services to our users while firmly safeguarding their personal information,” Mr. Ye concluded.
PBOC has been tightening its oversight of financial mobile applications to reduce information-associated financial risks and protect user data privacy. In September 2019, it issued financial mobile application software security management specifications, and tasked NIFA to execute the mobile app registration process. Financial institutions, such as banks, brokerage houses, fund managers, insurance companies, payment service providers, and other ecosystem participants including FinTech companies, are encouraged to submit application and self-inspection reports on their financial services apps. NIFA is responsible for the registration and filing process, and publishes the list of accredited mobile applications accordingly.
About Jianpu Technology Inc.
Jianpu Technology Inc. is a leading independent open platform for discovery and recommendation of financial products in China. By leveraging its deep data insights and proprietary technology, Jianpu provides users with personalized search results and recommendations that are tailored to each user’s particular financial needs and credit profile. The Company also enables financial service providers with sales and marketing solutions to reach and serve their target customers more effectively through online and mobile channels and enhance their competitiveness by providing them with tailored data, risk management and end-to-end solutions. The Company is committed to maintaining an independent open platform, which allows it to serve the needs of users and financial service providers impartially. For more information, please visit http://ir.jianpu.ai.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s goal and strategies; the Company’s future business development, financial condition and results of operations; the Company’s expectations regarding demand for, and market acceptance of, its solutions and services; the Company’s expectations regarding keeping and strengthening its relationships with users, financial service providers and other parties it collaborate with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China: Jianpu Technology Inc. Oscar Chen Tel: +86 (10) 6242-7068 E-mail: IR@rong360.com
The Piacente Group, Inc. Jenny Cai Tel: +86 (10) 6508-0677 E-mail: jianpu@tpg-ir.com
In the United States: The Piacente Group, Inc. Brandi Piacente Tel: +1-212-481-2050 E-mail: jianpu@tpg-ir.com
STOCKHOLM, July 17, 2020 — The comments and figures in this report refer to continuing operations unless otherwise stated
Highlights of the second quarter of 2020
Net sales amounted to SEK 23,476m (29,232). Organic sales declined by 16.6%, due to lower volumes. The development of the coronavirus pandemic impacted market demand significantly in our main markets and also resulted in supply constraints in North America.
Operating income amounted to SEK -62m (1,219), corresponding to a margin of -0.3% (4.2).
Comprehensive cost measures executed to mitigate the effects from the pandemic on earnings.
Negative currency impact on operating income of approximately SEK 360m.
Income for the period amounted to SEK -141m (1,006), and earnings per share was SEK -0.49 (3.50).
Operating cash flow after investments was SEK 122m (-25).
President and CEO Jonas Samuelson’s comment
The coronavirus pandemic affects all of us, personally and professionally. Our top priority is to safeguard the health and safety of our employees and to ensure business continuity as household appliances are essential for consumers’ daily life.
During the months of March through May, we experienced significant volume drops across most of our regions due to the pandemic. As restrictions were eased or removed, demand picked up in June, even if the pace of recovery varies greatly between regions. In some markets, such as many European countries, the recovery pace in the latter part of the quarter has been faster than predicted. It was therefore encouraging that we in June had an organic growth of 3%. I am also pleased that despite challenging conditions we improved our mix this quarter as well. A good example is Australia where newly launched products continue to gain good traction.
We have also delivered on the temporary cost and cash mitigation actions initiated in March; well above our expectations. This shows that both agility and cost focus are part of our DNA. We continue to follow through on our re-engineering and streamlining initiatives, yielding further structural efficiencies to strengthen our cost competitiveness also longer term. As we earlier announced, the coronavirus situation leads to delays in some of our strategic investments of up to half a year and has also impacted the ramp-up of our new Anderson factory in the U.S. due to supply disruptions from Mexico and shutdowns/ absenteeism, which also have impacted all our North American plants. This of course pushes cost savings from these investments forward, but I want to emphasize that we still expect our re-engineering and streamlining initiatives to generate approximately SEK 3.5bn of annual cost savings, with full effect from 2024.
Despite the strong cost reduction execution in the quarter, it was not possible to offset both the 17% organic sales drop and a significant currency headwind and, as we have previously communicated, the quarter was slightly loss-making.
The pandemic situation remains fluid, creating an extraordinary degree of uncertainty over what the full global impact on demand will be for the second half of the year. It depends on several factors such as virus resurgences, the extent of additional restrictive measures and the effectiveness of the massive stimulus packages on consumer confidence and demand. In the near term, we see good demand, partially driven by pent-up demand from April/May and the strong stimulus programs. However, for the full year 2020 we continue to expect negative demand in most of our main markets. Hence, as previously communicated, we expect a material financial impact related to the pandemic for the full year 2020, primarily due to the impact in the second quarter.
The increased time spent at home due to the pandemic has quickly changed consumer behavior. The importance of high-quality appliances with relevant features and benefits become more apparent. On the same note, we see consumers paying more attention to health and hygiene; meaning there is an increasing need for products that can boost wellbeing such as vacuum cleaners, air and water purifiers, dish washers and washing machines. Finally, consumers have become more digital and online purchases are growing significantly. These changes in consumer behavior reinforce our strategy and we keep accelerating innovation to deliver relevant products and services, including further development of our e-commerce capabilities.
Our strong commitment to sustainability remains unchanged and we see an opportunity to increase sustainable efforts as people change their behaviors due to the crisis.
Although we are experiencing a challenging time, I am confident that Electrolux remains well positioned to create value. I especially want to thank my colleagues for their great commitment as we continue to execute on our strategy.
Telephone conference 09.00 CET
A telephone conference is held at 09.00 CET today, July 17. Jonas Samuelson, President and CEO and Therese Friberg, CFO will comment on the report.
Details for participation by telephone are as follows:
This is information that AB Electrolux is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 0800 CET on July 17, 2020.
Sales were SEK 55.6(54.8) b. Sales adjusted for comparable units and currency were flat YoY.
Gross margin excluding restructuring charges improved to 38.2% (36.7%), including the earlier communicated inventory write-down related to Mainland China (SEK -0.9 b., which equals to -1.6 percentage points).
Operating income excluding restructuring charges improved to SEK 4.5 b. (8.2% operating margin) from SEK 3.9 b. (7.0% operating margin) driven by improvements in segment Digital Services.
Networks sales[1] increased by 4% YoY. Networks operating margin excluding restructuring charges was 14.1% (15.0%) impacted by strategic contracts and the inventory write-down, partly compensated by operational leverage and a favorable business mix.
Digital Services operating income excluding restructuring charges was SEK -0.7(-1.3) b. Gross margin improved driven mainly by higher software sales while sales1 declined by -5%.
Net income was SEK 2.6(1.8) b.
Free cash flow before M&A was SEK 3.2(1.6) b. Net cash June 30, 2020, was SEK 37.5(33.8) b.
The Covid-19 pandemic had a limited impact on operating income and cash flow in the quarter.
1 Adjusted for comparable units and currency.
Planning assumptions highlights (please see the quarterly report for complete planning assumptions)
With current visibility Group financial targets for 2020 and 2022 are maintained.
R&D investments in Digital Services are accelerated to capture additional business opportunities. In combination with lower sales, this will likely cause a delay of some quarters in reaching the 2020 financial target. 2022 operating margin target of 10-12% remains firm.
SEK b.
Q2 2020
Q2 2019
YoY change
Q1 2020
QoQ change
Jan-Jun 2020
Jan-Jun 2019
YoY change
Net sales
55.6
54.8
1%
49.8
12%
105.3
103.7
2%
Sales growth adj. for comparable units and currency
Gross margin
–
37.6%
–
36.6%
0%
–
39.8%
–
38.6%
37.5%
-1%
–
Operating income
Operating margin
3.9
6.9%
3.7
6.8%
3%
–
4.3
8.7%
-11%
–
8.2
7.7%
8.6
8.3%
-6%
–
Net income
2.6
1.8
40%
2.3
13%
4.9
4.3
14%
Measures excl. restructuring charges and other items affecting comparability1
Gross margin excluding restructuring charges
38.2%
36.7%
–
40.4%
–
39.3%
37.5%
–
Operating income excl. restr. charges & items affecting comparability in 20192
1 Non-IFRS financial measures are reconciled to the most directly reconcilable line items in the financial statements at the end of this report.
2 Excludes restructuring charges in all periods. No other adjustments made in 2020. Jan-Jun 2019 excludes a capital gain related to the divestment of 51% of MediaKind (SEK 0.7 b.), divestment of certain assets in Red Bee Media (SEK 0.1 b.) and a reversal of an earlier provision for impairment of trade receivables following customer payment (SEK 0.7 b.).
Comments from Borje Ekholm, President and CEO of Ericsson (NASDAQ:ERIC)
The human toll caused by Covid-19, directly and indirectly through a weak economy, is increasingly clear. We continue to put safety of our people as first priority, and more than 80% of our employees are currently working from home. Despite the difficult environment we delivered a solid result. Q2 organic1 sales were flat and gross margin[2] improved to 38.2% (36.7%) YoY, including negative effects from strategic contracts. Free cash flow before M&A improved to SEK 3.2(1.6) b. While the effects of Covid-19 create uncertainties, with current visibility we maintain the full-year targets for the Group.
Networks grew by 4% organically1 and the gross margin[2] was 40.5% (41.4%), absorbing a larger share of strategic contracts including 5G volumes in Mainland China where we also took an inventory write-down. The strengthened market position in Mainland China is strategically important as this market is expected to be a driver of critical future requirements and provide us with important scale. The Chinese 5G contracts are expected to be profitable over the life cycle, but had a negative contribution to gross margin in Q2.
Investments in R&D have established us as a leader in 5G, with proven performance and cost of ownership benefits for our customers. We have continued to increase our market share in several markets by leveraging our competitive product portfolio. Profitability in earlier awarded strategic contracts has improved according to plan. We consider strategic contracts to be a natural part of the business and we will stop our forward looking commentary unless there is an extraordinary impact.
Digital Services continues to execute on its turnaround plan with continuous improvements in the underlying business, and a Q2 gross margin2 reaching 43.6% (37.1%), supported by increased software sales. Sales is being impacted by the declining legacy portfolio and Covid-19-related market uncertainty and we expect this negative impact to continue throughout the year. There is however a strong demand for our cloud-native and 5G portfolio, and we have recorded several important tier 1 customer wins in 5G Core that will generate revenues in 2021 and beyond. Encouraged by the success of our offering, we have decided to accelerate R&D investments. These investments have a positive long-term value but will result in increased R&D costs. We are for this reason, in combination with the lower sales, likely to see a delay of some quarters in reaching the 2020 target of low single-digit margin for Digital Services, however, we are staying firm on our 2022 operating margin2 target of 10-12%.
Our patent licensing business continues to perform well due to our strong IPR portfolio. Licensing agreements are often multi-year and term-based and renewals normally require negotiations, particularly in conjunction with introducing new standards such as 5G. Next year, certain agreements are up for renewal and royalty payments can be temporarily affected. The inclusion of 5G patents is expected to strengthen our IPR business further.
At Ericsson, we are committed to conducting business responsibly and with integrity. We continue our efforts to strengthen and improve our Ethics and Compliance program. In the quarter, the three-year term of the monitorship under the resolution with the U.S. authorities started. We look forward to working together with the independent compliance monitor and to benefit from his extensive experience. We fully believe this will help us reach our ambitions.
As we prepare to exit the crisis caused by Covid-19, there is a need to restart economies and make strategic, forward looking investments which we suggest must include the future digital infrastructure. We see many regions around the world increasing investments in this space and as a European company we are concerned that Europe will fall behind. As critical national infrastructure, 5G will be a key determinant for long-term competitiveness of the general economy, and act as a stimulant to accelerate economic growth, attract future investments and speed up technology innovation. I believe Europe must prioritize actions to incentivize investments in the digital infrastructure, to include lowering the cost and speeding up the availability of spectrum.
We are ready to deliver on the promises of 5G, based on our strong 5G portfolio and a resilient balance sheet. We remain positive on the longer-term outlook. Some customers are accelerating their investments while others are temporarily cautious. With current visibility we maintain the Group targets for 2020 and 2022.
Stay healthy and well.
Borje Ekholm
President and CEO
1 Sales adjusted for comparable units and currency 2 Excluding restructuring charges
Conference call for analysts, investors and journalists
President and CEO Borje Ekholm and CFO Carl Mellander will comment on the report and take questions. The conference call will begin at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT New York).
To join the conference call, please phone one of the following numbers:
This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on July 17, 2020.
