Top Page | English | 简体中文 | 繁體中文 | 한국어 | 日本語
Wednesday, 17 April 2024, 20:06 HKT/SGT
To acquire stake in Hangzhou Bizike, Phoenitron Holdings has eye on trillion-dollar e-commerce market

HONG KONG, Apr 17, 2024 - (ACN Newswire) - Beijing Tecsun Venus Technology Limited, an indirect wholly-owned subsidiary of Phoenitron Holdings Limited (8066.HK), has entered into a capital injection agreement with Hangzhou Bizike Intelligence Technology Company Limited, stating its intention to subscribe registered capital of Hangzhou Bizike. When the transaction is completed, Beijing Tecsun Venus will hold 20% of the enlarged registered capital of Hangzhou Bizike. It will mark the Group’s formal entry into the trillion-dollar e-commerce market in the PRC, as well as enable it to expand its business and broaden its income sources.

The e-commerce market in the PRC has continued to grow over the past few years. That and the outbreak of the COVID-19 pandemic have driven consumers to shop online and in turn speeded up growth of the country’s e-commerce market, short video platforms and live stream commerce, encouraging businesses to pursue offline-to-online transformation, with success hinging on online marketing and sales through online KOL livestreaming. According to the market research company eMarketer, the retail e-commerce market of the PRC is expected to continue its growth and reach approximately RMB28.8 trillion in 2027, indicative of its huge development potential.

To Phoenitron, the thriving e-commerce market presents it with an important opportunity that agrees with its growth strategy and aim to diversify business. Thus, the decision to acquire Hangzhou Bizike, which is in the e-commerce business, aims to support the Group in attaining strong growth of its business in the future and its ability to generate revenue. Hangzhou Bizike’s main business is to market and sell merchandises via livestreaming, and it also provides short video marketing and creates IP for KOLs. It started preparations for its livestreaming business at the end of 2022, focusing on three main highest ROI (Return-on-Investment) product categories, namely womenswear, health products and beauty products, and started to record revenue in 2023. In just 10 months between June 2023 and March 2024, the transaction value generated through livestreaming exceeded RMB90 million, which was rather remarkable.

At present, Hangzhou Bizike is serving a famous Chinese women's clothing brands, while also actively expanding its own brands and already has the brand LULU OCEAN registered. The brand specializes in women's sportswear for all seasons, such as yoga wear. Hangzhou Bizike plans to use funds from the transaction on livestreaming of its own proprietary brands to promote product sales. What’s noteworthy is the company’s senior management is made up of former senior personnel of e-commerce platforms such as “Alibaba” and the leading short-video platform “douyin”. Bringing with them profound relevant experience, they have seen Hangzhou Bizike claim the top spot among livestreaming platforms on the Tencent Video streaming website.

The capital injection will allow Phoenitron to make Hangzhou Bizike’s livestreaming capability its own, foray into e-commerce business, build its own proprietary brand and capitalize on the growth momentum of the retail e-commerce market of the PRC. It is clear that the Group, via pursuing its active business development plan, is continuously exploring growth opportunities in different fields and such efforts will open more room for growth to it in the future.

The Group has recently announced its 2023 results, with revenue up by a notable 35.3% to approximately HK$79.1 million, and turning around from net loss last year to net profit of approximately HK$4.3 million. Such results plus the capital injection will prompt the market to re-evaluate Phoenitron’s worth, acting as an important catalyst to the Group’s market performance in the short term. In the long run, at its continuous effort to expand business and enhance profitability, the Group will have a solid foundation for future development and its long-term value will continue to show and catch eyes.

Topic: Merger & Acquisition Sectors: Daily Finance, Daily News
From the Asia Corporate News Network

Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Latest Press Releases
Vietnam: International Dairy Product launches nutritious KUN milk with jelly pieces in SIG XSlimBloc carton packs  
May 20, 2024 19:30 HKT/SGT
InsureTech Connect Asia: Asia's Largest Insurance Ecosystem Conference  
May 20, 2024 18:08 HKT/SGT
BEAST (Bengkel Animasi Digital Arts & Creative Festival) 2024 goes back to Bandung  
May 20, 2024 18:00 HKT/SGT
Paw Pro GmbH Announces $1.5M Partnership with Health Reasoning to Launch Innovative Web3 Platform  
May 20, 2024 17:03 HKT/SGT
Response to Africa Intelligence Article  
May 20, 2024 17:00 HKT/SGT
Shaping a Green Future for Textile Industry- Aimer 2024 New Presentation of Seaweed Fiber Pajamas  
May 20, 2024 17:00 HKT/SGT
Raytech Holding: Making Nasdaq Debut as It Pioneers Personal Care Electrical Appliances in a Booming Market  
May 20, 2024 16:00 HKT/SGT
The cybersecurity capital of Philippines, PhilSec now an essential choice for critical infrastructure   
May 20, 2024 15:43 HKT/SGT
MHI Receives Order for Additional 12 Units of the Outer Vertical Target for the Divertor Used in the ITER in Southern France  
Monday, May 20, 2024 10:36:00 AM
REDEX to be an exclusive partner to TNBX in Malaysia to support the Malaysia Green Attribute Trading System (mGATS) platform  
May 20, 2024 10:00 HKT/SGT
More Press release >>
More >>
 News Alerts
Copyright © 2024 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Privacy Policy | Terms of Use | RSS
US: +1 214 890 4418 | Beijing: +86 400 879 3881 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575

Connect With us: