Sino Splendid’s revenues drop 59%

Hong Kong, 9th November: Earlier this week, Hong Kong-listed Sino Splendid (formerly China.com) announced its financial results for the nine months ended 30th September 2019. Revenues in the period were US$3.4 million, a 59% decrease compared with the same period in 2019. The company recorded a loss of US$1.5 million in the first nine months of 2020, compared with a loss of US$738,000 in the same period last year.

More than half of its total revenues were generated from Sino Splendid’s Travel Media Business, amounting to US$1.8 million. This represents a decrease of 70% compared to last year. The decrease was almost entirely due to the outbreak of COVID-19 and its impact on the travel industry.

The company also reported its financial results for the quarter ended 30th September. Revenues in the quarter dropped 59% year-on-year, down to US$897,000. The loss in the quarter was US$193,000, compared with the loss of US$102,000 in the third quarter of 2019.

Japan’s Uzabase sells Quartz

Japan, 9th November: Uzabase, a Japanese media company, announced plans to sell Quartz, U.S.-based online business news publisher, to its co-founder and editor-in-chief for an undisclosed amount.

Uzabase bought Quartz from Atlantic Media in 2018 in a deal valued at approximately US$110 million. Quartz’s operations were hard hit by the ongoing coronavirus pandemic. The company laid off about 80 employees earlier this year. According to media reports, Quartz had 188 staff at the end of last year.

Alibaba’s revenue up, profit down

Hangzhou, 5th November: Also last week, the Alibaba Group, released its financial results for the quarter ended 30th September 2020. The company recorded total revenues of US$22.8 billion, up 30% year-on-year. However, the group’s net income dropped 63% in the same quarter, down to US$3.9 billion.

Revenues from Alibaba’s B2B business in China, primarily generated through 1688.com, were US$536 million, an increase of 11% year-on-year. Revenues from its international B2B business, primarily operating through Alibaba.com, jumped 44%, reaching US$517 million.

The group also released its financial results for the six months ended 30tsh September, generating revenues of US$45.5 billion, an increase of 32% year-on-year. Net profit decreased 19% in the six-month period, down to US$10.7 billion. Diluted earnings per share in the first half of the financial year were RMB 27.83 (US$4.10).

Alibaba generates US$74 billion of GMV on Global Shopping Festival

Hangzhou, 12th November: The Alibaba Group, the largest e-commerce company in China, announced that the company generated US$74.1 billion of gross merchandise volume (GMV) during its 2020 11.11 Global Shopping Festival. The event is also known as “Singles Day.”

This year, the festival featured two shopping windows, the first running from 1st to 3rd and the second for 24 hours on 11th November. Total GMV was calculated from 1st to 11th November. The figure doubled last year’s record of US$38.4 billion.

Share price movement in B2B media companies involved in Asia

Figure 1: BSG B2B Media Index vs. All Tracked B2B Stocks (price movement over past 12 months)

Figure 2: BSG B2B Media Index vs. All Tracked B2B Stocks (price movement since January 2020)

Quick takes

Hannover Milano organises huge shows in Shanghai

It is encouraging to see Hannover Milano’s massive shows with over 190,000 m2 and more than 100,000 visitors onsite. It is, however, a bit premature (even in China) to call this the post-pandemic era!

Ant Group IPO delayed by Chinese regulators

Jack Ma has a legendary ability to navigate China’s minefield of politics and regulation.  See Alibaba’s uninterrupted rise from start-up to global e-commerce giant. It seems, however, that Jack finally made a misstep of sorts. Just hours before Ant Group’s record-setting IPO, Beijing held up its hand. Not a good look for both the company and Beijing.

UFI unveils its new board

Following the election earlier this year, UFI, the global association of the exhibition industry, has announced its new board of directors for 2020-2023. Asia is represented by a good cross-section of the industry in the region. 

Clarion announces a U.S.-based acquisition

This is a rare occurrence these days. Clarion has announced the acquisition of U.S.-based, Quartz Events which is an organiser of “invitation-only, executive summits.”

Informa Markets India to restart physical events in December

Mumbai, 27th October: Informa Markets, an international exhibition organiser, announced plans to host six physical B2B events in India in December. The events will be organised under the AllSecure standard which was created by Informa Markets to safeguard the health and safety of its stakeholders. AllSecure is also in line with the Indian government’s guidelines to ensure “a smooth, secured experience for exhibitors and visitors.”

The six events include: 8th Annual InnoPack F&B 2020 Confex (4th December in New Delhi), Fi India & Hi (8th to 10th December in New Delhi), ProPak India (8th to 10th December in New Delhi), Renewable Energy India Expo (10th to 12th December in Greater Noida), Delhi Jewellery & Gem Fair (12th to 14th December in New Delhi), and Hyderabad Jewellery Pearl & Gem Fair (18th to 20th December in Hyderabad).

Meorient’s revenues and profits down in Q3

Hangzhou, 23rd October: Meorient, a Shenzhen-listed exhibition organiser, has announced its financial results for the quarter ended 30th September 2020. The group’s revenues were US$6.6 million, down 51% year-on-year. The company’s net profit in the quarter fell 66%, down to just US$481,000.

The company also reported its financial results for the nine months ended 30th September. Revenues in the nine-month period were US$9.3 million, a decrease of 76% year-on-year. Meorient recorded a net loss of US$7.5 million compared with a profit of US$3.7 million in the same period in 2019.

ICC Sydney generates economic impact of US$362m

Sydney, 26th October: International Convention Centre Sydney (ICC Sydney) has released its Annual Performance Review for the financial year 2019/20. According to it report, the venue generated A$510 million (US$362 million) in direct expenditure for New South Wales (NSW). This was down from A$896 million (US$629 million) in the previous year.

A total of over 70,000 international visitors generated 73% of the venue’s total expenditure, amounting to A$375 million (US$266 million) which also contributed to the more than 981,000 overnight stays in Sydney. According to the report, the venue created more than 2,800 local jobs during the year.

Netsun’s revenues drop 31% in Q3

Hangzhou, 28th October: Zhejiang Netsun, a Chinese B2B online platform, recently announced its financial results for the quarter ended 30th September 2020. Netsun generated revenues of US$13 million in the third quarter, a decrease of 31% compared with the same quarter last year. Net income in the quarter was also down falling 52% to US$886,000.

For the nine months ended 30th September, Shenzhen-listed Netsun reported revenues of US$35 million, down 20% compared to the same period in 2019. Net income was also significantly down posting a decrease of 37%, amounting to US$2.8 million. Netsun’s earnings per share for the nine-month period were RMB 0.08 (US$0.012).

Quick takes

MCH shareholders approve Murdoch investment

The MCH Group has reached a settlement with one of its major shareholders, Erhard Lee, who objected to MCH’s tentative agreement to accept an investment from James Murdoch’s Lupa Systems. Now that the deal has been confirmed, Lupa will eventually own between 30% and 44% depending on the participation of existing shareholders.

Cathay Pacific makes moves to survive pandemic

Nearly all of Cathay Dragon’s 5,900 staff lost their jobs this week as part of Cathay’s restructuring in its attempt to survive the pandemic. Such developments are worth monitoring because the state of the airline industry (as well as hotels) will have a direct impact on recovery of business events in Asia.

Japan to allow some business visitors entry without quarantine

Beginning in November, Japan is planning to allow short-term business visitors from some 30 countries to entry the country without undergoing a quarantine period. Visitors will need to submit a negative COVID-19 test result, provide their itinerary and avoid using public transport.

Ant Group’s IPO sends clear message

The Ant Group’s IPO will raise US$34.5 billion making it the largest IPO in history. The dual listing will raise an equal amount in Shanghai and Hong Kong. Jack Ma, who owns one third of the business, seems to be sending a clear message about his view of Shanghai’s future as a global financial centre. It is also somewhat of a vote of confidence in the outlook of Hong Kong.

Quick takes

Revenue at Reed Exhibitions down 70%

RELX announced this week that revenues from its exhibition business fell 70% in the first nine months of the year. The full year loss from exhibitions is expected to be between £170 million and £210 million. On the plus side, exhibitions account for just 5% of RELX’s revenues.

Alibaba buys stake in Chinese supermarket

The Alibaba Group does so many deals that is it often easy to overlook them – even deals worth US$3.6 billion.

Nancy Walsh shares views on digital fashion platform

Informa Market’s Nancy Walsh provides some interesting details and statistics on the launch of their digital platform for Coterie.

Chinese hotel occupancy nearly at pre-pandemic levels

A good, long-ish article from McKinsey on the impressive rebound of domestic travel in China. A mostly optimistic, encouraging story.

UFI and Explori publish Global Recovery Insights report

London/Paris, 20th October: Earlier this week, UFI, the Global Association of Exhibition Industry, and Explori, a live events research specialist, published the first edition of the “Global Recovery Insights 2020” report.

Insights were gathered from more than 9,000 respondents in 30 countries. Unsurprisingly, both visitors and exhibitors prefer live events. The respondents maintain that the social aspect of events cannot be effectively replicated by digital events.

Other conclusions included the clear, strong preference for exhibitor and visitor quality over quantity. In terms of budget, although funds allocated to live events have been put on hold, marketing budgets have yet to record severe cuts.

TCEB unveils its plan for 2021

Thailand, 7th October: Thailand Convention and Exhibition Bureau (TCEB) has unveiled its operational plan for the fiscal year 2021 (October 2020 – September 2021), with the core aim of lifting the Thai MICE industry out of crisis, while strengthening the sustainability fundamentals of the industry.

The plan, named “New Normal MICE – Sustainable Growth,” features four strategic elements: 1) Promoting the domestic MICE industry, 2) Harnessing innovation, 3) Attracting international events, and 4) Further developing the MICE ecosystem.