Chinese technology group Baidu on Monday posted a revenue of 26.33 billion yuan ($3.73 billion) for the quarter that ended in June, beating analysts’ estimates of 25.77 billion yuan ($3.65 billion) as its video streaming service iQiyi continues to see strong growth. The 19-year-old firm’s shares were up more than 9% in extended trading.
The company, which is often called the Google of China, said revenue of its core businesses grew 12% since the same period last year “despite the weak macro environment, our self-directed healthcare initiative, industry-specific policy changes and large influx of ad inventory.”
Net income for the second quarter dropped to 2.41 billion yuan ($344 million), down 62% compared to same period last year, but an improvement from the first quarter of this year when Baidu posted a net loss of 327 million yuan ($46.3 million).
“With Baidu traffic growing robustly and our mobile ecosystem continuing to expand, we are in a good position to focus on capitalizing monetization and ROI improvement opportunities to deliver shareholder value,” Herman Yu, CFO of Baidu, said in a statement.
Today’s results for Baidu, which has been struggling of late, should help calm investors’ worries. In recent years, as users move from desktop to mobile and rivals such as ByteDance win hundreds of millions of users through their mobile apps, many have cast serious doubts on Baidu’s ability to maintain its growth and hold onto its grip on advertising business. (On desktop, Baidu continues to command more than three quarters of the Chinese market share.)
In the quarter that ended in March this year, Baidu posted its first quarterly loss since 2015, the year it went public.
Baidu’s shares were trading at about $114 in extended hours, pushing its market cap to about $40 billion — still less …Read More
The new policy was announced just hours after the company identified an information operation involving hundreds of accounts linked to China as part of an effort to “sow political discord” around events in Hong Kong after weeks of protests in the region. Over the weekend more than 1 million Hong Kong residents took to the streets to protest what they see as an encroachment by the mainland Chinese government over their rights.
State-funded media enterprises that do not rely on taxpayer dollars for their financing and don’t operate independently of the governments that finance them will no longer be allowed to advertise on the platform, Twitter said in a statement. That leaves a big exception for outlets like the Associated Press, the British Broadcasting Corp., Public Broadcasting Service and National Public Radio, according to reporting from BBC reporter, Dave Lee.
The affected accounts will be able to use Twitter, but can’t access the company’s advertising products, Twitter said in a statement.
“We believe that there is a difference between engaging in conversation with accounts you choose to follow and the content you see from advertisers in your Twitter experience which may be from accounts you’re not currently following. We have policies for both but we have higher standards for our advertisers,” Twitter said in its statement.
The policy applies to news media outlets that are financially or editorially controlled by the state, Twitter said. The company said it will make its policy determinations on the basis of media freedom and independence, including editorial control over articles and video, the financial ownership of the publication, the influence or interference governments may exert over editors, …Read More
Twitter says a significant information operation involving hundreds of accounts linked to China were part of an effort to deliberately “sow political discord” in Hong Kong after weeks of protests in the region.
In a blog post, the social networking site said the 936 accounts it found tried to undermine “the legitimacy and political positions of the protest movement on the ground.”
More than a million protesters took to the streets this weekend to demonstrate peacefully against the Chinese government, which took over rule from the British government in 1997. Protests erupted months ago following a bid by Hong Kong leader Carrie Lam to push through a highly controversial bill that would allow criminal suspects to be extradited to mainland China for trial. The bill was suspended, effectively killing it from reaching the law books, but protests have continued, pushing back at claims that China is trying to meddle in Hong Kong’s affairs.
Although Twitter is banned in China, the social media giant says the latest onslaught of fake accounts is likely “a coordinated state-backed operation.”
“Specifically, we identified large clusters of accounts behaving in a coordinated manner to amplify messages related to the Hong Kong protests,” the statement said.
Twitter said many of the accounts are using virtual private networks — or VPNs — which can be used to tunnel through China’s vast domestic censorship system, known as the Great Firewall. The company added that the accounts it is sharing represent the “most active” portions of a wider spam campaign of about 200,000 accounts.
“Covert, manipulative behaviors have no place on our service — they violate the fundamental principles on which our company is built,” said Twitter.
News of the fake accounts comes days after Twitter user @Pinboard warned that …Read More
Twitter is being criticized for running promoted tweets by China’s largest state news agency that paint pro-democracy demonstrations in Hong Kong as violent, even though the rallies, including one that drew an estimated 1.7 million people this weekend, have been described as mostly peaceful by international media.
Promoted tweets from China Xinhua News, the official mouthpiece of the Chinese Communist Party, were spotted and shared by the Twitter account of Pinboard, the bookmarking service founded by Maciej Ceglowski, and other users.
Every day I go out and see stuff with my own eyes, and then I go to report it on Twitter and see promoted tweets saying the opposite of what I saw. Twitter is taking money from Chinese propaganda outfits and running these promoted tweets against the top Hong Kong protest hashtags pic.twitter.com/6Wb0Km6GOb
— Pinboard (@Pinboard) August 17, 2019
I just came home from a completely peaceful march where possibly a million Hong Kong residents came out, with no police in sight, to call for basic democratic rights. What greets me is straight up lies from Xinhua about “bands of thugs”, courtesy of Twitter advertising. pic.twitter.com/pUTsnqZ5oN
— Pinboard (@Pinboard) August 18, 2019
The demonstrations began in March to protest a now-suspended extradition bill, but have grown to encompass other demands including the release of imprisoned protestors, inquiries into police conduct, the resignation of current Chief Executive of Hong Kong Carrie Lam and a more democratic process for electing Legislative Council members and the Chief Executive.
While China Xinhua News has repeatedly described demonstrators as violent, international observers have criticized the Hong Kong police’s use of excessive force against peaceful protestors, including incidents documented in footage verified by Amnesty International.
The irony of China Xinhua News’ tweets is that they let the Chinese Communist Party …Read More
Hey. This is Week-in-Review, where I give a heavy amount of analysis and/or rambling thoughts on one story while scouring the rest of the hundreds of stories that emerged on TechCrunch this week to surface my favorites for your reading pleasure.
Last week, I talked about how Netflix might have some rough times ahead as Disney barrels towards it.
There is plenty to be said about the potential of smart glasses. I write about them at length for TechCrunch and I’ve talked to a lot of founders doing cool stuff. That being said, I don’t have any idea what Snap is doing with the introduction of a third-generation of its Spectacles video sunglasses.
The first-gen were a marketing smash hit, their sales proved to be a major failure for the company which bet big and seemingly walked away with a landfill’s worth of the glasses.
Snap’s latest version of Spectacles were announced in Vogue this week, they are much more expensive at $380 and their main feature is that they have two cameras which capture images in light depth which can lead to these cute little 3D boomerangs. One one hand, it’s nice to see the company showing perseverance with a tough market, on the other it’s kind of funny to see them push the same rock up the hill again.
Snap is having an awesome 2019 after a laughably bad 2018, the stock has recovered from record lows and is trading in its IPO price wheelhouse. It seems like they’re ripe for something new and exciting, not beautiful yet iterative.
The $150 Spectacles 2 are still for sale, though they seem quite a bit dated-looking at this point. Spectacles 3 seem to …Read More
Headquartered in Shenzhen, Transsion is a top-seller of smartphones in Africa that recently confirmed its imminent IPO. In 2019 it opened and financed Future Hub, an incubator and seed fund for African startups.
Wapi Capital is the venture fund of Kenyan fintech startup Wapi Pay — a Nairobi-based company that facilitates digital payments between African and Asia via mobile money or bank accounts.
Starting in September 2019, Transsion Future Hub will work with Wapi Capital to select early-stage African fintech companies for equity-based investments of up to $100,000, Transsion Future Hub Senior Investor Laura Li told TechCrunch via email.
Wapi Capital won’t contribute funds to Future Hub’s Africa investments, but will help determine the viability and scale of the startups, including due diligence and deal flow, according to Wapi Pay co-founder Eddie Ndichu.
Wapi Pay and Transsion Future Hub will consider ventures from all 54 African countries; interested startups can reach out directly to either organization, Ndichu and Li confirmed.
The Wapi Capital fintech partnership is not Transsion’s sole VC activity in Africa. Though an exact fund size hasn’t been disclosed, the Transsion Future Hub will also make startup investments on the continent in adtech, fintech, e-commerce, logistics and media and entertainment, according to Li.
Future Hub’s existing portfolio includes Africa-focused browser company Phoenix, content aggregator Scoop and music service Boomplay.
Wapi Capital adds to the list of African-located and run venture funds — which have been growing in recent years — according to a 2018 study by TechCrunch and Crunchbase. Wapi Capital will …Read More
Update: Trump confirmed to reporters that the delay is due to timing for the holiday shopping season. “We’re doing this for the Christmas season,” he said. “Just in case some of the tariffs would have an impact on U.S. customers.”
Electronics manufacturers are no doubt breathing a collective sigh of relief this morning at the news that the United States Trade Representative (USTR) has delayed tariffs on a number of categories.
A long list of exports, including livestock, foodstuff and clothing will have the additional 10% tariff imposed on September 1. Others, including “cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing” have simply been delayed until December 15.
It seems the fees are an inevitability, but many might be able to scrape through just in time for the holidays.
“Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent,” the USTR writes. “Further, as part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles.”
That list includes a wide range of electronics, from “telephones for cellular networks or for other wireless networks” to “telephone answering machines” and “cassette players (non‐recording) designed exclusively for motor‐vehicle installation.”
Stock prices for companies like Apple have already seen a positive bump following the news. The White House is expected to have additional trade talks with China next month in Washington, though President Trump has since cast some doubt.
Asked by reporters whether he might cancel the talks, the president answered, “Maybe. We’ll see what happens.”Read More
Zhihu, the largest question and answer platform in China, has raised a $434 million Series F. This is not only the company’s biggest round since it launched in 2011, but also one of the largest secured over the past two years by a Chinese internet culture and entertainment company, said China Renaissance, which served as the funding’s financial advisor.
The Series F was led by Beijing Kuaishou, the video and live-streaming app, with participation from Baidu . Existing investors Tencent and CapitalToday also returned for the round, which Zhihu will use for technology and product development. Baidu told Bloomberg that it will add 100 million Zhihu posts to its main app.
While Zhihu has downplayed reports that it is planning an IPO, it embarked on plans to hire a CFO and restructure last year.
Zhihu users tend to be educated with relatively high incomes and the platform has developed a reputation for hosting experts and organizations that are knowledgeable in tech, marketing and professional services like education. Like Quora and other Q&A platforms, Zhihu lets users post and answer text-based questions. But it also has other features, including discussion forums, a publishing platform and live videos for brands and companies to answer questions in real time. Instead of making its streaming video feature, called Zhihu Live, open to all users, it is available only to experts and organizations, differentiating it from other streaming apps like Douyin, the domestic version of TikTok (ByteDance is an investor in Zhihu but did not participate in this round).
In a post about the round on his Zhihu page, founder and CEO Victor Zhou wrote the company plans to keep up with rapid changes in China’s media and internet landscape. “Over the past 8 years, users have gone from expecting simple entertainment to …Read More
Nio delivered just 837 electric vehicles in July, a nearly 38% drop from the previous month that was largely caused by a voluntary recall of its high-performance ES8 SUV.
The Chinese automotive startup issued a voluntary recall in June of nearly 5,000 ES8 SUVs after a series of battery fires in China and a subsequent investigation revealed a vulnerability in the design of the battery pack that could cause a short circuit. The recall affected a quarter of the ES8 vehicles sold since they went on sale in June 2018.
Nio was able to complete its recall for the 4,803 ES8s by prioritizing battery manufacturing capacity for this effort, which significantly affected production and delivery results, NIO founder, chairman and CEO William Li said Monday in a statement.
“On the positive side, we completed the ES8 battery recall in approximately half the time compared to our original timeline,” Li said, adding that the customer confidence is returning. “Looking ahead, with battery capacity allocation back to normal, we will accelerate deliveries and make up for the delivery loss impacted by the recall.”
Nio expects August to be a “much stronger month” with a target to deliver between 2,000 and 2,500 vehicles, according to Li. That’s a considerable jump from what Nio has been able to achieve in the past several months, even without the added battery recall problem.
Nio delivered 1,340 vehicles in June, 1,089 in May and 1,124 in April. As of July 31, 2019, aggregate deliveries of the company’s ES8 and ES6 reached 19,727 vehicles, of which 8,379 vehicles were delivered in 2019.
Deliveries of the ES8 initially surpassed expectations, but they have since slowed in 2019. Now, Nio will have to double deliveries in August to meet its target.
Other factors, and ones that might prove more …Read More
If making an Android alternative was easy, we’d have a lot more of them. Huawei’s HarmonyOS won’t be replacing the mobile operating system for the company anytime soon, and Huawei has made it pretty clear that it would much rather go back to working with Google than go it alone.
Of course, that might not be an option.
The truth is that Huawei and Google were actually getting pretty chummy. They’d worked together plenty, and according to recent rumors, were getting ready to release a smart speaker in a partnership akin to what Google’s been doing with Lenovo in recent years. That was, of course, before Huawei was added to a U.S. “entity list” that ground those plans to a halt.