English | 简体中文 | 繁體中文 | 한국어 | 日本語
Wednesday, 17 April 2024, 20:06 HKT/SGT
Share:
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
https://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2025 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

Latest Press Releases
Winvest Group's IQI Media Gears Up for Q2 Beta Demos of AI & Blockchain-Powered Streaming Distribution Platform  
Mar 6, 2025 21:30 HKT/SGT
Exceptional Presence of 24 Hong Kong Innovators Mesmerised Mobile World Congress Audience  
Mar 6, 2025 20:11 HKT/SGT
General Atomics Introduces Quadratix Software Enterprise  
Mar 6, 2025 20:07 HKT/SGT
Chery Auto Launches an IPO on HKEX - Fundamentals Driving Long-term Value Growth  
Mar 6, 2025 16:33 HKT/SGT
General Atomics Acquires North Point Defense  
Mar 6, 2025 16:30 HKT/SGT
NEC improves the energy efficiency and floor space density of 5G Mobile Core systems  
Thursday, March 6, 2025 12:20:00 PM
The New Economics of Power Markets in a Low-Carbon World 2025  
Mar 6, 2025 10:44 HKT/SGT
Singapore to Host the 24th Cyber Security Summit: Addressing Emerging Threats and AI-Driven Security  
Mar 6, 2025 10:16 HKT/SGT
Doubleview Gold Corp Announces Collaboration with Her Excellency Sheikha Sara Nasser Al-Thani CEO of Qmission W.L.L. Qatar  
Mar 6, 2025 09:09 HKT/SGT
Register Now: analytica Vietnam's Largest Edition & Must-See Innovations!  
Mar 6, 2025 07:32 HKT/SGT
More Press release >>
 Events:
More events >>
Copyright © 2025 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 214 890 4418 | China: +86 181 2376 3721 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575