w w w . a b a c u s n e w s . c o m / c h i n a - i n t e r n e t - r e p o r t
CHINA
INTERNET
REPORT
2 0 1 8
Table of Contents
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
2
11
21
2
Source: US Census Bureau, Pew Research, Newzoo, Statista, eMarketer, CNNIC, IMF
At a Glance: China vs. US Internet
Although China's internet penetration is just over 50%, its sheer scale means there are 3x the number of smartphone
users and 11x the number of mobile payment users in China than in the US.
3
Internet
Smartphone
Mobile Internet
Mobile Payment
China vs. US Top Players for Key Verticals
4
IN CHINA
IN US
Top Chinese Startup Cities
Beijing is the country's top startup city based on valuation, followed by Hangzhou, Shanghai and Shenzhen.
Source: China Money Network
Total Valuation ($B)
# of Unicorns
Beijing
305
61
Hangzhou
240
17
Shanghai
115
34
Shenzhen
61
11
Ningde
20
1
Guangzhou
7
2
Zhuhai
6
2
Suzhou
4
2
Tianjin
3
2
Nanjing
2
2
Wuhu
2
1
Guiyang
2
1
Hong Kong
2
2
Chongqing
2
1
Wuhan
2
1
Dongguan
1
1
Wuxi
1
1
Grand Total
773
142
5
Top Chinese Internet Players (1 of 2)
Company
CEO
Selected Investors
Listed on
Market Cap/
Valuation (US$)
1
Alibaba
Daniel ZHANG
G Squared, Vulcan Capital, Softbank, Goldman
Sachs
NYSE:
BABA
492.4B
2
Tencent
Pony MA
Naspers, IDG Capital Partners, PCCW
HKG:
0700
479.6B
3
Ant
Financial
Eric JING
Alibaba Group, NSSF, CDIB, CCB International
Private
150.0B
4
Baidu
Robin LI
ePlanet Capital, IDG Capital Partners, Google,
China Equity Venture TDF
NASDAQ:
BIDU
87.8B
5
Lufax
Gregory D GIBB CICC, COFCO, Arbor Ventures, BlackPine Private
Equity
Private
60.0B
6
JD
LIU Qiangdong
Hillhouse Capital Group, Capital Today, Tiger
Global Management
NASDAQ:
JD
56.6B
7
Didi
Chuxing
CHENG Wei
Alibaba Group, Softbank, Tencent Holdings,
Ping An
Private
55.0B
8
Xiaomi
LEI Jun
All-Start Investment, Morgan Stanley, Shunwei, YF
Capital, Qiming Ventures Partners
HKG:
1810
47.9B
9
NetEase
DING Lei
SoftBank Capital, Capital Today
NASDAQ:
NTES
34.3B
10
Qihoo
360
ZHOU Hongyi
Sequoia Capital, Matrix Partners, IDG Capital
Partners
SHA:
601360
28.7B
As of July 9, 2018
6
Source: Crunchbase, ITjuzi, Zero2IPO
Top Chinese Internet Players (2 of 2)
Company
CEO
Selected Investors
Listed on
Market Cap/
Valuation (US$)
11
Meituan
Dianping
WANG Xing
Sequoia Capital, Google, Tencent, IDG
Capital Partners
Private
31.8B
12
Toutiao
ZHANG Yiming
Sequoia Capital, SIG China, Sina Weibo
Private
28.6B
13
Tencent
Music Group
Cussion PANG
Tencent
Private
25.0B
14
TAL Group
ZHANG Bangxin
Tiger Global, KTB Ventures
NASDAQ:
TAL
21.6B
15
Sina Weibo
WANG Gaofei
Alibaba
NASDAQ:
WB
20.2B
16
Suning
ZHANG Jindong
Alibaba
SHE:
002024
18.5B
17
DJI
Frank WANG
Sequoia Capital, Accel Partners, LH Capital
Management
Private
15.0B
18
Momo
TANG Yan
Stonebridge Capital, Matrix Partners,
Alibaba
NASDAQ:
MOMO
9.5B
19
China
Literature
WU Wenhui
Tencent
HKG:
772
8.9B
20
Giant
Interactive Group
LIU Wei
SIG China
Private
7.7B
Source: Crunchbase, ITjuzi, Zero2IPO
As of July 9, 2018
7
Xiaomi Is The Largest Chinese Internet IPO Since 2017
Largest Company IPOs
CEO/Founder
Listed on
Date of IPO
Market Cap (US$)
at IPO
Xiaomi
LEI Jun
HKG: 1810
2018/7/9
47.9B
iQiyi
GONG Yu
NASDAQ: IQ
2018/3/29
13.5B
China Literature
WU Wenhui
HKG: 0772
2017/11/8
11.8B
ZhongAn
CHEN Jin
HKG: 6060
2017/9/28
11.0B
Qudian
LUO Min
NYSE: QD
2017/10/18
7.9B
Ping An Good Doctor
WANG Tao
HKG: 1833
2018/5/4
7.4B
Yixin Group
ZHANG Xu-An
HKG:2858
2017/11/16
6.5B
Sogou
WANG Xiaochuan
NYSE:SOGO
2017/11/9
5.1B
Best Express
ZHOU Shaoning
NYSE: BSTI
2017/9/20
4.2B
Paipaidai
ZHANG Jun
NYSE: PPDF
2017/11/10
3.9B
Jianpu.ai
YE Daqing
NYSE: JT
2017/11/17
3.3B
Bilibili
CHEN Rui
NASDAQ: BILI
2018/3/28
3.2B
Huya TV
LI Xueling
NYSE:HUYA
2018/5/11
2.4B
LEXIN
XIAO Wenjie
NASDAQ: LX
2017/12/21
1.8B
Rise Center
SUN Yiding
NASDAQ: REDU
2017/10/20
913M
G-bits
SU Huazhou
SHA: 603444
2017/1/4
870M
Longshine
XU Changjun
SSE:300682
2017/8/1
678M
hexindai.com
ZHOU Xinming
NASDAQ: HX
2017/11/4
500M
China Rapid Finance
WANG Zane
NYSE: XRF
2017//4/28
350M
SECOO
LI Rixue
NASDAQ: SECO
2017/9/22
333M
Source: Crunchbase, ITjuzi, Zero2IPO
8
Jan 2017
Jul 2018
Notable Acquisitions Of Chinese Start-ups Since 2017
9
Jan 2017
Jul 2018
(1)
$9.5B is the enterprise valuation of Ele.me; Alibaba and Ant Financial owned 43% with Alibaba acquiring the remaining shares.
Source: Crunchbase, ITjuzi, Zero2IPO
Notable Acquisitions
CEO/Founder
Acquired by
Amount of Acquisition (US$)
Ele.me
ZHANG Xuhao
Alibaba
9.5B(1)
Mobike
HU Weiwei
Meituan-Dianping
2.7B
Cheyipai
WANG Xuejian
Souche
1-2B
Dangdang
LI Guoqing
HNA Group
1.1B
Waimai(Baidu)
GONG Zhenbin
Ele.me
800M
Tantan
HAN Zhibai
Momo
600M
Tian Tian Express
XI Chunyang
Suning Commerce Group
472M
Lagou.com
MA Delong
51job
119M
Hellobike
YANG Lei
Youon Bike
Undisclosed
Maoyan
WANG Xing
Enlight Media
Undisclosed
Kanche.com
WEI Zheng
Yixin Group
Undisclosed
Bluegogo
HU Yufei
Didi
Undisclosed
FaceU
GUO Lie
Toutiao
Undisclosed
Most Active Chinese Venture Capital Firms
Venture Capital Firm
Selected Investments
Zhen Fund
Ofo, Mia.com, Zhaogang.com, Jumei.com, Meicai.cn, UR WORK, YITU, Vincross
Polly.ai, UMA, BeSound, EHANG, Mobnote, SUGR Cube, Vidoo
IDG Capital
Partners
Baidu, Xiaomi, SouFun, Ctrip, 360, Meitu, iQiyi, Sohu.com, Meituan, XPeng,
Pony.ai, NIO, Razer, SenseTime, Pingduoduo, LingoChamp(liulishuo)
Matrix Partners
Zhaogang.com, Babytree, Ofo, FUTUS.com, DIDI, 36kr, Lieping.com, MOMO,
Baofeng.com, Ele.me, Yuantiku, VIPKID, Qingting FM
Sequoia Capital
JD, 360, VIPKID, Toutiao, ThinkForce, Horizon Robotics, Versa
NIO, BGI, Dajiang, YITU, 100Credit, Ping++, Dianping
K2VC
Fenqile, Zhaogang.com, Mia.com, Jumei.com, Tiger Brokers, Qichacha, Duodian
Shunwei Capital
51talk, iQiyi, Kuaishou, Renrenche, Xiaomi, DXY.cn, Jimu, iKongjian.com, 17zuoye.com
Plum Ventures
Yiigoo, CHJ, mia.com, Huoqiu.cn, Qudian, 8btc, Changba, NIU
Legend Capital
Bilibili, Paipaidai, Ribo, Zuoyebang, Musical.ly, Damai.cn, BitAuto, Zhaopin.com
Sinovation Ventures
Zhihu, Jing Chi, Bitmain, BroadLink, ImbaTV, Meitu, Qingting.FM, URWork, Face++
Shenzhen
Capital Group
Maijing Gene, DidaTravel, Formlabs, Pagoda, Huada Empyrean Software,
Wetalk TV, Topline, Suning Finance
Fortune
Venture Capital
Shihou TV, CloudIn, aihuishou, YOHO, BlueFocus, Hua Shu, Huayou Cobalt,
COSHIP, Focus Media, NewRank, Yidou360
Qiming
Venture Partners
Mi, Face++, UBTECH, BingoBox, Tongdun.cn, Xueba100.com
igetget.com, Zhihu, Wacai, Mobike
Jan 2017
Jun 2018
10
Source: Crunchbase, ITjuzi, Zero2IPO
Table of Contents
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
2
11
21
11
Four Overarching Themes
Chinese Internet Companies
Embrace 'Social+'
Chinese Internet Giants
Are Doing Everything
Chinese Internet
Empowers Rural Population
Government Is
The Visible Hand
12
Chinese Internet Giants Are Doing Everything (1 of 2)
13
Whether it's building or investing/acquiring, Baidu, Alibaba and Tencent are present across the internet ecosystem.
Industry
Baidu
Alibaba
Tencent
Build
Invest/Acquire
Build
Invest/Acquire
Build
Invest/Acquire
Ecommerce /
O2O / Retail
-
Bitauto, Uxin
Taobao, Tmall, Hema,
Aliexpress
Ele.me, Xiaohongshu,
Yiguo, Sun Art, Suning
Lazada, Paytm
-
JD, Meitan Dianping,
Bitauto, Pinduoduo,
Xiaohongshu, Vipshop,
Meili Inc, MissFresh,
Yonghui
Content &
Media
Baidu News, Baidu
Tieba, Baidu Knows,
Baidu Wiki
iQiyi, PPS
Alibaba Music,
Alibaba Pictures
Youku Tudou,
Wanda Film,
Wasu Media
Tencent Video,
Tencent News,
Tencent Reading,
Tencent Music,
Tencent Pictures
Kuaishou, Bilibili,
China Literature,
Qutoutiao, Bona Film,
Huayi Brothers Media,
SoundHound
Messaging &
Social
-
-
Dingtalk
Weibo, Momo, Snap
Wechat, QQ
Zhihu, Snap
Sharing
Economy
-
Shouqi Limousine &
Chauffeur,
Uber
-
Didi, ofo, Lyft
-
Didi, Mobike, Uber, Lyft
AI
Baidu AI
SoundAI
Alibaba AI Lab
SenseTime
Tencent AI, Tencent
Youtu
ObEN
Smart Devices
-
Raven Tech
Tmall Genie
-
-
LeTV, Tile
Selected companies built or invested/acquired by BAT(1)
(1)
Investments by holding company only.

Source: Crunchbase, media reports
Investments outside of Mainland China
*For the full list of 400+ companies that BAT have built/invested/acquired, visit: https://www.abacusnews.com/china-internet-report/full-list.html
Chinese Internet Giants Are Doing Everything (2 of 2)
14
Whether it's building or investing/acquiring, Baidu, Alibaba and Tencent are present across the internet ecosystem.
Industry
Baidu
Alibaba
Tencent
Build
Invest/Acquire
Build
Invest/Acquire
Build
Invest/Acquire
Autonomous Car
Apollo
Velodyne LiDAR
Alibaba(2)
-
Tencent(3)
Nio, Tesla, CYNGN
Blockchain
-
Circle
Alibaba and Ant
Financial
-
-
Webank, Blockstream
Fintech
Du Xiaoman Financial Yintai Capital, Zest
Finance
Ant Financial
ZhongAn
Tencent Financial
Technology
ZhongAn, Lufax,
Webank, CICC
Education
Baidu Jiaoyu
Hujiang Education
Taobao Jiaoyu
iTutor Group
Tencent Class
VIPKID
Gaming
Baidu Game
-
Ali Games
Ejoy Technology
Tencent Games
WeGame
Huya, Douyu,
Supercell , Riot Games,
Kakao Games
Esports
-
-
-
AGTech Holdings
Tencent Esports
VSPN
Others
Baidu Search, Baidu
Cloud, Baidu Map
China Unicom, Ctrip,
Qunar, Home Link, WM
Motor
AliCloud, Alimama,
Alibaba Health,
UCWeb, Fliggy (Alitrip)
China Unicom,
AutoNavi, Intime,
Cainiao Logistics,
Xiaopeng Motor, Magic
Leap, Softbank
Robotics
Tencent Cloud,
Tencent Map
China Unicom, Home
Link, Sogou, 58.com,
Manbang, WM Motor
Selected companies built or invested/acquired by BAT(1)
(1)
Investments by holding company only.
(2) AI Resarch Lab.
(3) Tencent Autonomous Vehicle Laboratory.
Source: Crunchbase, media reports
Investments outside of Mainland China
*For the full list of 400+ companies that BAT have built/invested/acquired, visit: https://www.abacusnews.com/china-internet-report/full-list.html
Chinese Internet Empowers Rural Population (1 of 2)
The number of rural internet users in China reached 209m in 2017 with a penetration rate of 35%.
53
85
107
125
136
156
177
178
195
201
209
7%
12%
16%
19%
21%
24%
28%
29%
32%
33%
35%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Internet users in rural China (M)
Internet penetration rate in rural China
Source: CNNIC, China National Bureau of Statistics
Annual per capita disposable
income of rural residents in China
is only US$1,870 in 2016, which
is already up 47% compared to
2012
15
Chinese Internet Empowers Rural Population (2 of 2)
The internet has contributed significantly to the development of ecommerce, education and media in rural China.
55M
The number of students in rural
schools that are reachable by
live-streaming classes
50%
The percentage of poor
villages that will be equipped
with ecommerce capabilities
by 2020
8%
The minimum of a local
government's annual budget that
must be spent on digitalization
of education
2,100+
The number of Taobao villages1 in
2017, accounting for 490,000
active online shops, US$19 billion
in annual sales and 1.3 m new
jobs created
78M
The number of rural users
who read news from the
three primary news apps at
least once a month
175M
The number of short video app
users from rural China
(1)
Any rural village where at least 10% of households sell goods online with annual sales of at least US$1.6M
Source: Alibaba, QuestMobile, State Council Leading Group Office of Poverty Alleviation and Development, Ministry of Education, Research Institute of Rural Education at Northeast Normal University
Education
Ecommerce
News & Entertainment
16
Chinese Internet Companies Embrace 'Social+' (1 of 2)
Chinese ecommerce companies have adopted a Social+ model where their business is anchored by a social pillar that
drives user engagement and growth.
Source: SCMP, 36kr
Social commerce app with 156M
monthly active users ("MAUs") at
the end of 2017

Discounts are offered if a user
successfully starts a "group buy"
by sharing the deal with friends
and encouraging them to also
make a purchase
Above robot vacuum normally
retails for 399 but a "group buy"
can bring the price down to 288
The app's main tab is a feed
featuring influencers with
product photos, videos,
reviews and tips
Social commerce platform which
operates like a combination of
Instagram, Pinterest and Amazon
with 30M MAUs in 2018

Users are encouraged to post
photos of themselves and tag
clothes, accessories, or make-up
products they use to the
corresponding ecommerce listings
within the platform
Xiaohongshu
Pinduoduo
17
Chinese Internet Companies Embrace 'Social+' (2 of 2)
Ecommerce platforms aren't the only ones who have adopted the Social+ model though other verticals such as
media and education have incorporated these social elements into their business model.
Source: SCMP, Nasdaq
Hulu-like online video platform with 126M+ DAUs
Launched its own social media platform iQiyi Paopao,
which has 46M+ DAUs
iQiyi
News app with 10M+ daily
active users (DAUs)
Uses financial incentives to
build followers, relying
heavily on users' existing
social networks
Offers cash when users and
their followers read news on
consecutive days.
Qutoutiao
English-learning app that
encourages users to share
their progress daily on their
WeChat Moments feed in
return for an incentive
If readers stick to the plan
and share their progress for
80 consecutive days, they
are rewarded with free
English books
Mint Reading
18
Government Is The Visible Hand (1 of 2)
Success or failure in China's internet landscape, especially fintech, is contingent upon government authority.
Source: SCMP, Abacus, Sina
19
Sept 2017: Cryptocurrency exchanges and
initial coin offering banned by the
government.
Dec 2017: China's central bank and regulatory commission
tightened rules around internet financing and peer-to-peer online
lending, wiping out smaller players. The last three years have seen
the number of P2P companies shrink from 6,000 to 2,000.
Government Is The Visible Hand (2 of 2)
Chinese content-driven internet companies are also closely monitored and faced restrictions from government.
Source: SCMP, Abacus, Sina
20
Feb 2018: 17 online quiz app makers were
halted by the State Administration of Press,
Publication, Radio, Film and Television and
told to clean up their act
April 2018: China's media regulator ordered news aggregator Toutiao and
live-streaming app Kuaishou to clean up content on their platforms, singling
out both platforms for disrupting order in the online media industry.
March 2018: Beijing cyberspace authorities ordered Zhihu,
'China's Quora,' to delist from all app stores from March 2
to March 9 due to their inefficiency in purging "illicit
information" on the platform.
Table of Contents
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
2
11
21
21
21
29
37
43
49
58
63
68
75
81
86
91
Alibaba And JD Still Dominate, But Social Commerce Is On The Rise
Source: QuestMobile, 36kr
In the past year, Pinduoduo has grown to become the 3rd most popular ecommerce platform in China.
0
100
200
300
400
500
600
Mar Apr May June
Jul
Aug Sep Oct Nov Dec
Jan
Feb Mar
Taobao
JD.com
Pinduoduo
VIPshop
China's Top Ecommerce Platforms By Monthly Active Users
m
2018
2017
Launched in 2015, Pinduoduo is a
social commerce platform that
allows users to participate in group
buying deals.
Last July, Pinduoduo surpassed
VIPshop to become the 3rd most
popular ecommerce platform.

In 2017, 2.5 years since Pinduoduo
launched, the company's Gross
Merchandise Value exceeded
RMB100B (US$15.6B) it took JD
10 years, VIPshop 8 years and
Taobao 5 years to achieve this
milestone.
22
Ecommerce Is Reshaping Grocery Shopping In China (1 of 3)
China's online grocery market is expected to reach US$30B this year.
Source: iResearch
2.0
4.3
7.8
13.6
21.7
30.4
2013
2014
2015
2016
2017
2018e
China's Online Grocery Market
US$ Billion
+73% p.a.
23
Ecommerce Is Reshaping Grocery Shopping In China (2 of 3)
New forms of online-to-offline (O2O) grocery stores have emerged across China.
Alibaba's Hema supermarket
spearheaded the new O2O grocery
shopping in China.
It features mobile app shopping and
payment, has in-store dining and also
serves as a warehouse with a ceiling
conveyor system.
Hema has 46 stores in 13 cities as of
May 2018 and recently announced 24-
hour delivery service for its stores in
Beijing and Shanghai.
Source: SCMP, Alizila
24
Ecommerce Is Reshaping Grocery Shopping In China (3 of 3)
New forms of online-to-offline (O2O) grocery stores have emerged across China.
Source: SCMP, Tencent, JD
JD launched its first offline fresh-food supermarket, called 7Fresh, in
Beijing in early Jan 2018.
The new store has 4,000 m2 of floor space and smart carts which
guide shoppers to their desired aisles.
It has cooked-food stalls, offers fresh food and provides delivery
within a 5 km radius so users receive groceries in 30 minutes.
Tencent has invested heavily in Super Species,
the fresh grocery store brand of Yonghui
Superstores.
Super Species employs a hybrid model of
"high-end supermarket + fresh food restaurant
+ O2O".
25
Digital Retail Has Transformed Mom & Pop Shops
Alibaba and JD aim to transform the six m convenience stores across China.
Source: Alizila, AB Bernstein
Before



Integrated Retail For China's Mom & Pop Convenience Stores
After
Alibaba and JD have launched 'Ling Shou Tong' and
'Zhang Gui Bao' initiatives aimed at integrating local
convenience stores into their ecosystem by providing
modern analytics and operations.
Ling Shou Tong offers a suite of digital services to
improve efficiency, including: store makeover, mobile
app to order inventory from a single source, consumer
analytics to determine highest selling goods and even
mobile/data top-up plans.



Number Of Mom & Pop Stores Enrolled In Alibaba & JD Initiatives
-
500
-
300
0
100
200
300
400
500
600
Jan 2017
Nov 2017
Alibaba
JD
Thousand
26
Meituan-Dianping Is The Most Funded Chinese Ecommerce Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
China Internet Plus
(Meituan-Dianping)
8,300
Tencent Holdings, DST, Capital Today, GIC, Baillie Gifford, Cananda Pension Plan
Investment Board, Trustbridge Partners
Pinduoduo
3,100
Tencent Holdings, Banyan Capital, Cathay Innovation, New Horizon Capital
Koubei
2,100
Alibaba, Silver Lake, CDH Investments , Yunfeng Capital, Primavera Capital
Guazi
1,700
Sequoia Capital, Dragoneer Investment Group,Matrix Partners, YF Capital, IDG Capital,
Capital Today
Uxin
960
Baidu, Tencent, TPG, Jeneration Capital, Warburg Pincus, Tiger Fund, Hillhouse Capital,
KKR,China Vision Capital, Huasheng Capital
RenRenChe
760
Tencent, Didi, Shunwei Capital, Redpoint, Ceyuan Ventures
Souche Holdings
635
Alibaba, Warburg Pincus, Primavera Capital, Cmb International, Morningside Ventures,
VMS Investment
Xiaohongshu
418
Zhen Fund, Tencent Holdings, Alibaba Group, GSR Ventures, Adrian Cheng, Genesis
Capital, Tiantu Capital, GGV Capital
Mogujie
412
MSA Capital, Ping An, Zhixin Capital, Hillhouse Capital, IDG Capital, Qiming Ventures,
HOPU Investment Management Company, Banyan Mezzanine Funds
Womai
330
Taikang Life Insurance, Baidu, IDG Capital, SAIF Partners China
As of June 2018
27
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Ecommerce Investors in China
Most Active Investors
Top Ecommerce Deals
IDG Capital
Xiaomi, FarFetch, Moncler, Yuantiku, Three Squirrels, Beibei.com, Mogu Street, Womai.com
Zhen Fund
Zhaogang.com, VIP.com, mia.com, Xiaohongshu, Lechun, ClubFactory, FlowerPlus
Matrix Capital
The Beast, Reflower, MSParis, MissPao, Udream
Tiantu Capital
mwee.cn, Pagoda.com, Mogu Street, Xiaohongshu
China Growth Capital
700Bike. MAGMODE, KLOOK, MissFresh, Xiachufang, smzdm.com, Tongbanjie.com
Susquehanna International
Group, LLP
Yitiao, FlashEX, Meiyou, Easyflower, Piaoniu.com, 51zhaoyou.com
FreeS Fund
Three Squirrels, Xinliangji, Uber, Tingjiandan, Club Factory
Bertelsmann Asia Investment Fund
SECOO, Mogu Street, Yijiupi.com. 352, Zaozuo
Vision Capital
MissFresh, Xingbianli, lif8.com, Hamo, Chemao, Zaozuo, Zhaomei.com, Champzee
Sequoia Capital
DJI, JD, VIP.com, Haocaitou, Liuliumei, Meituan-Dianping, Ele.me
Source: Crunchbase, ITjuzi, Zero2IPO
As of June 2018
28
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
29
2017 Was The Year Of Short Video



Source: QuestMobile
Although messaging remains the dominant mobile activity, users have more than tripled the amount of time they
spend watching short videos in the last year.
37.9%
10.0%
1.3%
2.6%
2.2%
0.8%
0.6%
32.0%
10.1%
5.5%
3.1%
1.8%
0.8%
0.6%
Messaging
Online Video
Short Video
Weibo
Online Music
Live-Streaming Game-Streaming
Dec-16
Dec-17
Percentage of Time on Spent on Mobile Internet by Activity
-15.6%
+323%
The number of monthly active users for
short video apps in China doubled in 2017,
from 203M at the beginning of the year to
414M at year end.
%
30
Short Video Users Have Grown At An Exceptional Pace (1 of 2)
As of March 2018, there are nearly 600M users in China who are actively using short video apps.
Source: QuestMobile, SensorTower, SCMP
204
52
78
82
230
124
114
113
0
50
100
150
200
250
Kuaishou
Douyin (Tik Tok)
Huoshan
Xigua
Dec-17
Mar-18
Number of Monthly Active Users Across China's Top-4 Short Video Apps
m
31
Owned by Toutiao
Short Video Users Have Grown At An Exceptional Pace (2 of 2)
Kuaishou and Douyin (Tik Tok) are the two leading short video apps.
Source: QuestMobile, SensorTower, SCMP
Launched in 2011, Kuaishou
is the current leader of short
video apps, capturing more
than 50% market share.
The majority of its users are
from 2nd to 4th-tier cities.
Kuaishou has more than 10M
daily active users outside of
China.
Only launched in Sep
2017, Douyin (Tik Tok)
has nearly tripled its
monthly active users in Q1
this year.

It was the most
downloaded iOS app
(45M+ downloads) in Q1
of 2018 globally, beating
out YouTube, WhatsApp
and Facebook.
32
Online Video Is Also A Game Of Three Giants
China's online video market is dominated by three players: Tencent Video, iQiyi (owned by Baidu) and Youku (owned
by Alibaba).
604
584
450
96
66
55
53
52
40
10
Tencent
iQiyi
Youku MangoTV Bilbili
Letv
PPTV
Fun.tv
Sohu
BesTV
Monthly Active Users On China's Top Online Video Apps as of May 2018
m
Source: iResearch, Tencent, Baidu, Nasdaq
Tencent
Video
iQiyi Youku Mango
TV
Bilibili
Letv
PPTV Fun.tv Sohu BesTV
Launched in 2010 by Baidu
Listed in Mar 2018 raising $2.3B
Has 60m paying subscribers as of Feb
2018
Launched in 2006 and acquired by
Alibaba in 2015 for $3.7B
Merged with Tudou but remained
separate brands
Youku streams hit shows and dramas
while Tudou focuses on user-generated
content
Launched in 2011
Has 63m paying subscribers as of Feb
2018
Quick Facts
33
Tencent and Toutiao Lead The Way For News In China
Tencent News has the largest user base while Toutiao has the longest user time spent.
Top 5 News Apps By MAU (Apr 2018)
80
95
118
212
259
Tencent Reading
NetEase News
Sina News
Toutiao
Tencent News
Source: iResearch, QuestMobile, SCMP calculation
Top 5 News Apps By Average Time Spent (Dec 2017)
31
32
55
60
73
Tencent Reading
Sina News
Tencent News
NetEase News
Toutiao
m
Minutes
34
Toutiao Is The Most Funded Chinese Content & Media Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
TouTiao
3,100
SIG, DST, General Atlantic, Sina Weibo
Ximalaya
450
SIG, KPCB, Sierra Ventures, WestSummit Capital, Mi, Puhua Capital, China
Creation Ventures, China Broadband Capital
Qingting.fm
230
Sinovation Capital, Baidu, CMIG, Shenzhen Guozhong Venture Capital
Qutoutiao
200
China Innovision Capital, Advantech Capital, Tencent, XiaoMi, Chuangban
Investment, Lighthouse Capital
Zhihu
185
Tencent Holdings, Sinovation Ventures, Capital Today, SAIF Partners, Sogou,
Qiming Ventures Partners
Yidian Zixun
178
Phoenix New Media, Xiaomi, OPPO
igetget.com
170
Sequoia Capital, Qiming Ventures Partners, Tencent Holdings, Youku, Shunwei
Capital, Zhen Fund
MobiExchanger
72
PreAngel, New Margin Capital, Envision Capital, Mytech China
ZMT
70
Kinzon Capital, IDG, Fosun Kinzon Capital, YF Capital
NewsDog
50
Tencent Holdings, Legend Capital, Dotc United Group, Danhua Capital
35
As of June 2018
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Content & Media Investors In China
Most Active Investors
Top Content & Media Deals
Tencent Holdings
Qutoutiao, Jike, NewRank, Weimob, NewsDog, SNM
IDG Capital
ZMT, huoxing24.com, Vzan.com, xmt.cn
Zhen Fund
Papi, Mianbao Xiaoke, New Rank, Jike, WeSee, News Break
Matrix Partners
Weiboyi, Adsame, Focus Media, data100
Sequoia Capital
Mianbao Xiaoke, igetget.com, zongheng.com, Toutiao
Plum Ventures
youshu, tingwen.me, MKIT, palmax, Mena
Shenzhen
Capital Group
Infinitas Interactive Media, ipinyou, dodoca.com, Naqu
Fortune Venture Capital
Focus Media, NewRank, yidou360
Qiming Venture Partners
Zaojiu, Zhihu, igetget.com
Hongtai Capital
Nanyouquan, Happy Juzi, baozouribao.com
Source: Crunchbase, ITjuzi, Zero2IPO
As of June 2018
36
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
37
WeChat and Weibo Among the World's Largest Services
WeChat MAUs have crossed 1 billion as of February 2018.
Source: Company filings
Weibo's MAUs grew 20.5% between Q1 2017 and 2018
WeChat's MAUs grew 10.9% between Q1 2017 and 2018
341
411
Q1 2017
Q1 2018
938
1040
Q1 2017
Q1 2018
Million
Million
38
Mini-Programs Have Burst Onto The Scene This Past Year
In the beginning of 2018, 50% of WeChat's MAUs (472M) were using mini-programs.
1
1
8
28
32
34
61 75
96 116 111
193
472 444 405
1% 1% 1% 3% 4% 4%
7% 9%
11% 13% 13%
22%
52%
49%
44%
Jan Feb Mar Apr May
Jun
Jul
Aug Sep Oct Nov Dec
Jan Feb Mar
WeChat Mini-Program MAUs (M)
Percentage of Overall WeChat MAUs
2017
2018



What is a Mini Program?

Launched in Jan 2017, mini-programs are
sub-applications smaller than 10 megabytes
within the WeChat ecosystem.
WeChat has more than 580,000 mini-
programs after just one year of development.



Number of WeChat Mini-Program Users
Source: QuestMobile, SCMP
39
Mini-Programs Have Created An Ecosystem Within WeChat
Mini-programs are enabling WeChat to be the dominant all-in-one application on mobile.
28
13
12
9
8
7
5
4
4
3
3
1
1
1
1
Top 100 Mini-Programs By Type As Of March 2018
Source: QuestMobile, SCMP
More than half of China's leading ecommerce platforms
have launched a mini-program. Pinduoduo now has more
than 233 m users on its mini-programs.
The Jump Jump mobile game attracted 400 m
players in China in less than three days.
A number of international brands,
including McDonalds, KFC, Coach
and Tesla released mini-programs
for WeChat in the past year.
40
Most Funded Chinese Social & Messaging Startups
Company
Total Funding(1)
(US$ m)
Selected Investors
Kuaishou
1,350
Tencent Holdings, DCM, Sequoia Capital, Baidu, Morningside Venture Capital
Miaopai
775
Sequoia Capital, Shanghai Media Group, Kleiner Perkins Caufield & Byers, iDreamsky
Technology, Morningside Group, StarVC, Weibo, New Industry Investment Fund,
Axiom Asia Private Capital
Huajiao
215
Tiange.com, Mango investment, CIC, CDI Fund, 360.cn
Zhihu
185
Tencent Holdings, Sinovation Ventures, Capital Today, SAIF Partners, Sogou, Qiming
Ventures Partners
Blued
132
UG Capital, CDH Investment, Vision Knight Capital, Ventech China, Shunwei Capital,
DCM Ventures, Zhonglu Capital, Crystal Stream Capital
Maimai
100
IDG Capital, DCM Ventures, Morningside Ventures Capital
Douban
59
Sequoia Capital, Ceyuan Ventures, BAI Fund, Trustbridge Partners
Yalla
30
Orchid Asia, SIG, Hongfan Capital
Same
23
Tencent Holdings, Trustbridge Partners
Zuiyou
18
SIG, Qiming Ventures
41
As of June 2018
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Investors
Top Social & Messaging Deals
IDG Capital
Maimai, Microvcard, SegmentFault, Echo, Faceu, Huoliao APP, Zuoyou,
Tencent
Matrix Partners
Highing, in APP, Shudong, Nice, Momo, ZANK, Lookle
Tencent Holdings
Kuaishou, Zhihu, 17Paipai, Snapchat, Hike Mesenger, Kik, Kakao Talk, Same
Zhen Fund
Microvcard, Weilian, Nice, Jiayuan
Sequoia Capital
Kuaishou, Miaopai, Momo, Douban
Morningside Capital
ShareChat, Maimai, Nice, Taoyou, time2plato
Alibaba Group
Snapchat, Weibo, Momo, Tango, Xiaoshengshuo
Shunwei Capital
Myhug.cn, ShareChat, Paime, Renmaitong
Qiming Venture Partners
Zuiyou, Jiayuan, Kaixin001.com
GGV Capital
Myhug.cn, Verlocal, HOLLA, Wiselike
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Social & Messaging Investors In China
As of June 2018
42
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
43
Three New Players Enter China's Ride-Sharing Battlefield
Market giant DiDi sees new competition coming from Meituan Dianping, Ctrip and Alibaba's AutoNavi unit.
Source: SCMP, Nasdaq, China Money Network
US$80B estimated valuation
450M+ users
Meituan Dianping
Ctrip
AutoNavi Holdings

Leading provider of on-demand online services with a private valuation of
US$30B as of 2017

Rolled out its own ride sharing services in Dec 2017 and has since expanded its
service to seven cities in China
One week after Meituan was launched in Shanghai, it achieved 300K active users

China's leading travel services platform with a
market cap of $25B as of end of May 2018
Obtained a ride hailing license from Tianjin
Municipal Transportation Commission to
operate ride hailing business nationwide

Alibaba's mapping unit, AutoNavi
Holdings Ltd. (Gaode Map), launched its
own carpooling business starting in
Chengdu and Wuhan with plans to roll
out nationally in 2018

AutoNavi has 700M+ users
44
China's Bike-Sharing Industry Has Consolidated To Three Players
Ofo and Mobike command over 90% of the market; Hellobike surging quickly in third place.



Before
More than 40 bike-sharing services
have sprouted in China since 2016.
The bike-sharing market in China
has undergone significant
consolidation, with more than 20
start-ups going bust as of Feb 2018.



Today

In March 2018, ofo secured US$866M in a new round of financing
led by Alibaba.
Ofo has more than 200M users in China, 26M MAUs and 32M rides
per day.

In April 2018, Mobike was acquired by Meituan Dianping, China's
largest provider of on-demand online services, at a valuation of
US$3.7B.
Mobike has more than 200M users, 22M MAUs and 30M rides per
day.

Founded in 2016 and became the fastest-growing bike-sharing
company in 2017
Hellobike has approximately 100M users and 10M rides per day.
Hellobike
ofo
Mobike
Source: QuestMobile, SCMP, Mobike
45
China's Sharing Economy Expands Overseas
China's leading co-working, home-sharing and bike-sharing companies are now looking for success abroad.
Bike-Sharing
As of Dec 2017, ofo has covered
50 cities across 20 countries.
Mobike has expanded to 11
international cities.
Co-Working
China's URWork opened its first overseas location in
Singapore in June 2017 and formed a JV partnership with
New York's Serendipity Labs. URWork also made a strategic
investment in Sept 2017 in Rework, a co-working provider in
Indonesia, to strengthen its network in SE Asia.
Home-Sharing
Xiaozhu, China's Airbnb, now has
listings in over 100 overseas cities
and entered a strategic partnership
with global online booking
platform, Agoda, a member of
Booking Holdings.
Source: SCMP, Serendipity Labs, 36kr
46
Didi Is The Most Funded Chinese Sharing Economy Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
Didi
20,100
Mirae Asset Financial Group, GSR Ventures, Tencent Holdings, Alibaba, Ping An, China Investment
Corporation, Sailing Capital, GGV Capital, DST Global
ofo
2,200
GSR Ventures, Hongdao Capital, Zhen Fund, Vision Plus Capital, Matrix Partners China, CITIC PE,
Xiaomi, Shunwei Capital, DST Global, Didi, Alibaba
BAIC BJEV
1,660
Daimler, China Cinda Asset Management, Zhongji Investment
Tujia
755
All-Stars Investment, G Street Capital, Ctrip, HomeAway, Lightspeed China Partners, MSA, Qiming
Ventures, CBC Capital, CDH Investment
WiFi Skeleton
Key
652
Haitong Internation Securities Group, Northern Light Venture Capital,
Eight Roads Ventures
Zhubajie
431
Chongqing New North Zone Government Investment Fund, IDG Capital, Cybernaut Venture
Capital
Caocao
Zhuanche
380
Zhejiang Geely Holding Group
Xiaozhu
272
Joy Capital, YF Capital, Legend Capital, Morningside Venture Capital, MSA, BAI, Capital Today,
CITIC Capital Holdings, Heyu Capital, YF Capital
Shouqi Limousine
& Chauffeur
229
NIO Capital, Baidu, Harvest Capital, China Jianyin Investment, Oceanwide Holdings, Silk Road Hua
Chuang
Dian
120
Sequoia Capital, Tencent Holdings, InCapital, GSR Ventures, Vision Plus Capital, DT Capital
Partners, CDH Investments, Banyan Capital
As of June 2018
47
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Investors
Top Sharing Economy Deals
Matrix Partners China
Didi, ofo, Yunniao, zuzuche.com, Huangbaoche
Sequoia Capital
ymm56.com, Dian, Mobike, Xingbianli
Zhen Fund
Ofo, TOGO, YCLOSET, First Class, Hami
CDH Investment
Didi, FlashEx, Tujia, Dian, Grab
GSR Ventures
Didi, ofo, YCLOSET, Dian
Lightspeed
China Partners
xingren.com, ymm56.com, Tujia, fangdd.com
Joy Capital
UCAR Inc, Mobike, xiaozhu.com
Vision Plus Capital
Ofo, Dian, Xingbianli
Qiming Ventures
Tujia, Mobike
Panda Capital
Mobike, atzuche.com
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Sharing Economy Investors
As of June 2018
48
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
49
China's AI Development Still Lags Behind The US
As of June 2017, the US was home to the most AI startups in the world at 1,078 with China in second at 591.
1078
591
138
74
70
666
USA
China
UK
Israel
Canada
Other
Number of AI Startups By Country as of June 2017
000s
488
586
33
304
273
14
A
B
Other
US
China
US vs. China: Number of AI Startups By Sector
000s
Machine Learning,
Robotics, &
Autonomous Vehicles
Computer Vision &
Language
Infrasructure
Source: Tencent Research Institute
50
But The Chinese Government Has Ambitious Plans To Catch Up
Baidu's focuses autonomous driving.
Baidu, Alibaba, Tencent and iFlyTek have been a driving force behind China's AI advancement.
AI Strategic
Plan
Leading
Chinese
Companies
In AI
In July 2017, China's State Council released its roadmap to create a domestic 1 trillion yuan (US$148B) AI industry and
leapfrog the US to be the global leader in the field of AI by 2030.
Keep pace with leading AI technology and applications in general by 2020
Make major breakthroughs by 2025
Be the world leader in the field by 2030
The cloud computing division of Alibaba is working on a project called "city brains", a set of AI solutions to
improve urban life, including smart transport.
Tencent focuses on computer vision for medical diagnosis.
Shenzhen-listed iFlyTek, a dominant player in voice recognition, specializes in voice intelligence.
Investment
and
Training

In Jan 2018, the government announced that it would spend US$2.1B to build an AI industrial park in the suburbs of
Beijing.

In April 2018, the Ministry of Education launched a five-year AI talent training program, where 500 teachers and 5,000
students would train at top universities.
Source: SCMP
51
Facial Recognition Technology Is A Leading AI Application in China
Major Chinese cities are employing facial recognition to improve transportation and security.


Facial recognition systems are being
tested in major train stations like Wuhan.
China's Spring Festival this year saw over
400 m people traveling by train.
Source: SCMP
In Shenzhen, AI-firm Intellifusion works with local
police to display the faces of jaywalkers on large
LED screens at intersections. It is now
collaborating with local mobile phone carriers and
social media platforms such as WeChat to develop
a system where offenders will receive personal
text messages as soon as they violate the rules.
Police arrested a fugitive in southeast China
after facial recognition technology helped
identify him in a crowd of about 50,000
people attending a pop concert.
52
Use of Big Data Continues To Grow And Is Being Applied To Farming
Farms are leveraging AI technologies to enhance efficiency, yields and income.



JD launched its AI chicken project called "running chicken"
in 2018.
With the help of AI, the chicken farm is monitored 24/7
with functions including automatic feeding, cleaning and
health diagnose.
Source: SCMP, JD
Alibaba uses AI to raise pigs by using a digital ID for each pig,
which can help track vital signs, pregnancy, sickness, sleeping
and eating schedule and their mood.
This has helped Tequ Group, a Sichuan-based pig farming
enterprise, to raise more newborn pigs, reduce death rates and
increase income by 10 percent.

53
Robotics Is An Area Of Major Development In China
Intelligent service robots continue to upgrade across industries, including ecommerce and healthcare.
Cainiao x Tmall's warehouse is powered by delivery self-
charging robots; each robot can carry up to 500 kilograms.
The robots save time by three-fold for warehouse clerks.
Source: SCMP, Alizila, Statista

In September 2017, a robot dentist in China became the world's
first to perform 3D-printed teeth implants in a patient's mouth
without any human involvement.
54
China's intelligent service robots market will reach US$2.4 Billion by 2019
Voice and Language Applications Are Seeing Greater Adoption
Chinese consumers are increasingly using AI for translation and voice command.
The Sogou Travel Translator receives over
200M daily voice requests, approximately
240,000 hours of data with 97% translation
accuracy.
Source: Sogou, Technology Review
Over 500M Chinese use iFlytek voice
input via its 400,000 developers in
various industries such as smart home
and mobile internet.
55
SenseTime Is The Most Funded Chinese AI Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
SenseTime
1,600
Morningside Venture Capital, Sailing Capital, CICC, Co-Stone Capital
Alibaba, IDG, TCL Capital, StarVC, WANDA Group, CDH Investment
Megvii
607
Sunshine Insurance, Sinovation Ventures, Ant Financial
Foxconn Technology Group, China State-Owned Assets Venture Investment Fund,
CCB International, SK Group, Qiming Venture Partners
United Imaging
530
China Life Insurance, SDIC Fund, China International Capital,
CITIC Securities, CMB International
CloudWalk
397
Shunwei Capital, Oriza Holdings, Puhua Capital
Wecash
328
IDG, Lingfeng Capital, Sea Limited,
China Merchants Innovation Investment ManagementSIG Ventures,
Hongdao Capital, Forebright Capital, ORIX Asia Capital Ltd
Mobvoi
253
Volkswagen China, Google, Sequoia Capital, Zhen Fund, SIG China
Unisound
211
Hanfor Holdings, China Electronics Health Fund, Qihoo 360 Technology, Zhongdian Health Fund,
Qiming Venture Partners, Qianhai Wutong Mergers and Acquisitions Funds
CloudMinds
131
SoftBank, Foxconn, Keynote Ventures, Walden International, Bojiang Capital, Shenzhen Capital Group,
Qiming Ventures
Horizon Robotics
100
Intel Capital, Sinovation Ventures, Morningside Capital, Hillhouse Capital, Linear Venture, Harvest
Investment, Wu Capital, Tsing Capital
Cambricon
100
Yonghua Capital, SDIC Chuangye Investment Management, Alibaba, Lenovo, CAS Investment
Management, Turing, Oriza Seed Capital, Lenovo Capital
As of June 2018
56
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Investors
Top AI Deals
Sequoia Capital
JD, 360, Mobvoi, Toutiao, ThinkForce
Horizon Robotics, Versa, NIO, BGI, Dajiang, YITU, 100Credit
Tencent Holdings
Yonghong Tech, JD, Sougou, iCarbonX, UBTECH, NIO
IDG Capital
Baidu, Mi, SenseTime, 100Credit, Liulishuo, Rokid, APEAKIN
Matrix Partners
Yonghong Tec, Mobile, 360, 12Sigma, Sensing Tech, ccint.com
GGV Capital
Momenta, Liulishuo, Zhuiyi, EHANG, Deepinfar, binguohezi
YF Capital
Sougou, Mi, ThinkForce, YITU, Video++, Alibaba
Qiming Ventures
Xiaomi, Face++, UBTECH, binguohezi, tongdun
Morningside Ventures
Xiaomi, SenseTime, Horizon Robotics, Zhuiyi
Oriental
Fortune Capital
Hydata, Geetest, Quant Group, Yonghong Tech, Learnta
Sinovation Ventures
Dorabot Inc., ImageDT, class100, STEM Cloud
Pine Ventures
SenseTime, BGI, UBTECH, Gaomuxuexi
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active AI Investors In China
As of June 2018
57
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
58
Smart Speakers Are Still Nascent In China But Quickly Growing
JD, Xiaomi and Alibaba are the current leaders in China's small but growing smart speaker market.
10
60
350
1,200
4,400
2015
2016
2017
2018E
Source: GfK, Canalys, SCMP
Number of Smart Speakers Sold in China
000s
Smart Speaker Sales Share By Manufacturer For 2017
% of total units sold
38%
32%
15%
Other
15%
By comparison, shipments of
smart speakers in the US totaled
25m in 2017
59
LingLong DingDong
Tmall Genie X1
Mi AI Speaker
Raven H
Little Fish VS1 &
Sengled Smart Lamp
Speaker
US$126
US$76
US$47
US$256
N/A
Nov 2016
July 2017
July 2017
Nov 2017(1)
N/A
The Battlefield For Smart Speakers Is Intensifying In China
The market is overcrowded with more than 100 smart speaker developers and Baidu is the latest entrant.
(1)
Raven H production reported to have stopped in June as only 10K units were manufactured.
Source: SCMP, Press Research
Selected Speakers
60
Xiaomi Is The Most Funded Chinese Smart Device Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
Xiaomi(1)
3,400
All-Stars Investment, Shunwei Capital, Green Bay Ventures, Morningside Group, GIC, YF Capital, DST
Global, Ratan Tata, Qiming Venture Partners, NGP Capital
Royole
1,100
Shenzhen Capital Group, Shanghai Pudong Development Bank, IDG Capital Partners, Tanshi Capital,
Green Pine Capital, Hanfor Capital Management, Warmsun Holding Group, Zhongtai Chuanghui
Equity Investment Fund
UBTECH
940
CITIC Securities, Tencent Holdings, CDH Investment, Qiming Venture Partners
Meizu
890
Alibaba, Haitong Kaiyuan Investment
Smartisan
234
PurpleSky Capital
XGIMI
160
CDF Capital, Sailing Capital, Lucion Venture Capital, Matrix Partners China, Baidu, Bojiang Capital,
Pan-Lin Asset Management
Rokid
158
Credit Suisse, M Fund, IDG Capital Partners, Advantech Capital, Temasek Holdings, Linear Ventures,
Walden International, CDIB Capital
JMGo
125
Golden Brick Capital, SkyChee Ventures
Codoon
111
Susquehanna International Group, Shenzhen Capital Group, FountainVest Partners, SBCVC Fund III
Company, CITIC Capital Holding, SBCVC, Focus Media, Advanced Power Electronics Corp
DJI
111
Sequoia Capital, Accel Partners, LH Capital Management
As of June 2018
61
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here. (2) Xiaomi listed in HKEX on Jul 9, 2018; funding amount is before IPO.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Investors
Top Smart Devices Deals
Zhen Fund
Vincross, Polly.ai, UMA, BeSound, EHANG, Mobnote, SUGR Cube,
Vidoo, YOGO, FLEXIV, IMIO
Sequoia Capital
Pony.ai, LinkedSee AR, Horizon Robotics, Huami, Viomi, DJI, iRay,
Microduino, Janez T, ChargeDot
IDG
RDA, Montage, ISSC, Sane Chips, MUCH, YOGO, TMiRob, DKVision
PreAngel
Mech-Mind, Dobot, EHANG, LYRobotix, Aeris Aura
Northen Light Venture
Leishen Lidar, Shenzhen Smart Drone, Casun
Legend Star
OneSpace, CarRobot, LisaWatch, TONY watch
Matrix Partners China
AutoBot, GLXSS, MaxStone, Vidoo, Convenient Power
Sinovation Ventures
Wonder Workshop, AINemo, Dorabot, Goluk, Fineck, Mobnote
Qiming Ventures
VINNO, Convenient Power, Xiaomi, UBTECH
Tencent
Pacewear, Meta, Moon Express, Whaley, PICOOC, Tile
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Smart Devices Investors In China
As of June 2018
62
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
63
China vs. US In Autonomous Cars
China is formulating technology standards and industry guidelines to close the gap with the US.
Source: SCMP, McKinsey
2019 and beyond
2018
2017
The US Transportation Department plans to unveil revised
self-driving car guidelines this year.
In March, Shanghai issued licenses for
self-driving cars from NIO and SAIC.
In April, China's Ministry of Industry and
Information Technology released national
guidelines for smart internet connected cars,
giving local authorities a freer hand to arrange
road tests for autonomous vehicles.
China is likely to emerge as
the world's largest market for
autonomous vehicles and
mobility services, worth more
than US$500 billion by 2030.
In December, the National Development
and Reform Commission, China's top
economic planning agency, unveiled a
three-year plan making the development
of smart cars a national priority.

Beijing also became China's first city to
green light open road tests for
autonomous cars.
In September, the US approved a bill that laid out a
framework for federal autonomous vehicle regulation,
speeding up deployment of self-driving cars in the country.
64
The Last Year Has Seen Major Development In Autonomous Cars
Leading Chinese internet companies and automakers are making headway, with Baidu leading the pack.


Chinese
Internet
companies
Chinese
Auto Manu-
facturers

Identified by China's Ministry of Science & Technology as national champion in self-driving cars

Announced plans to commence mass production of an L4 autonomous driving bus with King Long
Motor Group in July 2018, L3 passenger vehicles with JAC Motor and BAIC Motor in 2019, L3 vehicles
with Chery in 2020 and L4 vehicles in 20211
(1)
The Society of Automotive Engineers have defined six levels (0-5): L3 = cars safely control all aspects of driving in mapped environment, L4 = no driver interaction needed, L5 = completely autonomous
Source: Alibaba, SCMP

Now running road tests of autonomous cars on a regular basis and has the capabilities for open road
trials with the goal is to achieve L4 autonomous capability

Partnered with SAIC Motor to launch internet-connected cars powered by Alibaba's AliOS

Has partnered with six Chinese automakers GAC, Changan, Geely, BYD, Dongfeng, FAW since 2017

Received its first license to conduct open-road tests for its autonomous cars in Shenzhen in May 2018

Electric vehicle start-up NIO, backed by Tencent, Baidu and Xiaomi, received a license to road test
autonomous driving in Shanghai for its 7-seater sport utility vehicle

Partnered with Intel in the beginning of 2018 to develop Level 3, 4 and 5 autonomous vehicles

Also awarded licenses to road test autonomous driving in Shanghai for two models of its smart car
Company
Development
65
Nio Is The Most Funded Chinese Autonomous Car Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
NIO
2,100
Tencent Holdings, Baillie Gifford, Lone Pine, Sequoia Capital, IDG,
China Asset Management Co, GIC, CITIC Capital, TPG, MSA, Baidu, Hillhouse Capital
WM Motor
1,200
Susquehanan International Group, Sequoia Capital, Amiba Capital, Tencent Holdings, Baidu Capital,
Minmentals Development, Zhejiang Geely Holding Group
Xiaopeng Motors
706
CICC, Kinzon Capital, Alibaba, Shunwei Capital, GWC Innovator Fund, IDG Capital Partners, UCAR,
Matrix Partners China, Morningside Venture Capital, Lightspeed Venture, YF capital, GGV Capital,
Foxconn Group
CHJ Automotive
594
Yintai Group, SourceCode Capital, Future Capital AG, Matrix Partners China, LEO Group, Funcity
Capital, Plum Ventures, BlueRun Ventures
Zhiche Auto
580
Intel Capital, GX Capital, One Capital, NetPosa
Roadstar.ai
128
Shenzhen Capital Group, Wu Capital, China Vision Capital, Yunqi Partners,
CMBI International Capital, Glory Ventures, Green Pine Capital
JingChi
120
China Growth Capital, Nvidia GPU Ventures, Qiming Venture Partners
Pony.ai
112
Sequoia Capital, Legend Capital, Puhua Capital, IDG Capital Partners, DCM Ventures, Silicon Valley
Future Capital, Morningside Venture Capital, Legend Star, Polaris Capital Group
TuSimple
83
Fuhe Capital, Sina, Zhiping Capital, Nvidia, Composite Capital Management
Momenta.ai
51
Shunwei Capital, Zhen Fund, Sinovation Ventures, Unity Ventures, Daimler,
NIO Capital, Blue Lake Capital AG
As of June 2018
66
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Investors
Top Autonomous Car Deals
Sequoia Capital
NIO, Lingyun, NIU, Ninebot, WM Motor, LingYun Technology
IDG Capital
Carsmart, CloudCar, Navya, Commsigna, SINGULATO
Zhen Fund
Hyperloop Technologies, Lingyun, Momenta.ai
Tencent Holdings
WM Motor, NIO, Tesla, Yixin Group
Matrix Partners
Xiaopeng Motors, CHJ Automotive
Morningside Ventures
Xiaopeng Motors, Pony.ai
SourceCode Capital
CHJ Automotive, DeepMotion
Qiming Ventures
JingChi
GGV Capital
Xiaopeng Motors
YF Capital
Xiaopeng Motors
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Autonomous Cars Investor In China
As of June 2018
67
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
68
Chinese Consumers Are Crazy About Cryptocurrency



A few Chinese cryptocurrencies have reached over
$1 billion in market cap



Binance, OKex, Huobi are the top 3 crypto exchanges in the
world with over $1 billion in daily trading volume
There are multiple cryptocurrencies and exchanges in China with huge scale.
Source: Coin Market Cap
69
China Says 'No' To Cryptocurrency But 'Yes' To Blockchain
China wants to be a frontrunner in blockchain technology even if the ban on crypto remains.
Source: SCMP, ITjuzi



No To Cryptocurrency



But Yes To Blockchain
Domestic closure: In September 2017, China ordered
the closure of all cryptocurrency exchanges and
pronounced all initial coin offerings (ICOs) illegal,
marking the start of the official crackdown on the
digital currency that saw a number of bitcoin traders
relocate to other countries.
Funding halted: In January 2018, the People's Bank
of China ordered financial institutions to stop
providing funding to any activity related to
cryptocurrencies.
Foreign platforms banned: In February 2018, China
blocked all overseas websites related to
cryptocurrency trading and ICOs as well.
Local support: Shanghai, Shanxi, Henan, Guangzhou, Guiyang
and Hangzhou have all issued policies to encourage blockchain
development.
New funding: Shenzhen established a 500 m yuan fund focused
on blockchain investments. Hangzhou announced its plan to
invest 10 billion yuan in a blockchain fund, which officials
claimed as the world's biggest fund investing in blockchain
projects.
Central government support: The master plan for the Xiongan
New Area economic zone, created under the direct order from
President Xi Jinping, highlights the use of blockchain
technologies to create a smart city.
Startups on the rise: 41% of startups that received funding in
China in the first quarter of 2017 were blockchain-related.
70
China's 'No' To Cryptocurrency Can Be Illustrated With Bitcoin
CNY-denominated Bitcoin trading volume plummeted in early 2017 and ultimately ceased by Oct 2017.
Source: Bitcoinity, SCMP
CNY
EUR
GBP
USD
JPY
Other
Government warns investors about
the risk controls of China's largest
bitcoin exchanges, which
temporarily suspend withdrawals
Chinese
exchanges lift
suspension on
withdrawals
China deems initial coin offerings
illegal, orders mainland
exchanges to shut down
71
Blockchain Will Have Many Business Use Cases In China
Although still in its infancy, blockchain technology can be applied across industries.
Source: xxx
Healthcare Patient
Records
Identity
Management
Supply Chain
Digital Asset
Tracking
Logistics
Luxury Goods
Tracking
IoT Message and
Asset Tracking
Money Remittance
Alibaba partnered with the city of
Changzhou in August 17 to launch
China's first application of Blockchain
technology in the medical sector.
Tencent partnered with China
Federation of Logistics & Purchasing
in Mar-18 to develop an industry
application based on Tencent
blockchain-TrustSQL, including
platforms for e-waybill service,
transportation management system
and warehouse management system.
The Hong Kong Monetary Authority
went live with its Trade Finance
Platform, built on blockchain
technology in September 2017.
72
Bitmain Is The Most Funded Chinese Blockchain Startups
Company
Total Funding(1)
(US$ m)
Selected Investors
Bitmain
450
Sequoia Capital, IDG Capital Partners, GIC, DST Global
Hyperchain
230
Xinghu Zhongbao, China Gaoxin Investment Group
Canaan
47
Baopu Investment, Jin Jiang Group, Tunlan Capital
OKCoin
47
Giant Network, Ceyuan Ventures, Mandra Capital, Sinovation Ventures Lab
PreAngel
Shuidihuzhu
33
IDG, Gaorong Capital, Tencent, Zhen Fund
Jinghang Blockchain
31
Tunlan Capital
TokenClub
30
INBlockchain, Shunwei Capital
HOTchain
24
Qtum Capital, Qtum Foundation, Bitcoin Faith, IBT Ventures, Arrival Capital,
IPTChain, FBTC,Genesis Capital
BKBT
20
JRR Crypto
8btc
16
Puhua Capital, QF CapitalFuncity CapitalBitmain
As of June 2018
73
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Blockchain Investors In China
Investor
Top Blockchain Deals
Fenbushi Capital
Stream, TenX, Zcash, GEM, ABRA, TIERION, Everledger, Symbiont, CIRCLE, Factom,
OTONOMOS, biTSE, POE, soc
Qianfang Capital
Genaro, Bytom, Delphy, Primas, Cybex, Vechain, Loopring, ATMatrix, IOTA, Tezos
INBlockchain
Stream, InkChain, EOS, BOTTOS, BigONE, sia, QTUM, Maggie, ITC, WanChain, Oracle Chain, Insurance,
uip, Decentraland, hot, iost, dta
Node Capital
Huobi, Coldar, Bochen Inc, Fengwo, Jinse Finance, Chainup, Dochain, soc
LinkVC
sosobtc, AICoin, QUOINE, Ripio, Genaro, Tenx, Measurable, Blockv, Raiden, BBEX, Cybermiles,
Maggie, IOT Chain, Pro Chain
Danhua Capital
Meta, aelf, theat, data, bat, IOST
Sequoia Capital
Huobi, IOST, ugc, filecoin, orchid
Zhen Fund
Lino, IOST, data, yee, HOT, GXB, EDU
IDG Capital
Ripple, Coinbase, Cirlce, Bitmain, Bitkan
Funcity Capital
8btc, IOST, Binance, huoxing24.com
Source: Block Data
74
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
75
Chinese Internet Companies Play Across The Fintech Value Chain
For these five major players, their fintech businesses serve to strengthen their core business.
Source: Press research
Online Payment
Financing & Lending
Investment
QQ Wallet
Baidu Wallet
JD Pay
Ping An E-wallet
Tencent Welfare
Licaitong
UMoney
Baidu Loan
Xiaojinku
Baidu Wealth Mgmt
Baizhong
76
Mobile Payments Continue To Surge With Alipay and WeChat Pay
China's mobile payment transaction volume hit US$15 trillion in 2017 with the duopoly taking 92% of the market.
Source: iResearch, Analysys
0.8
1.3
1.9
3.1
4.1
5.0
1.9
9.2
15.4
25.9
1.0
2.2
3.8
12.3
19.5
30.9
2013
2014
2015
2016
2017
2018e
PC
Mobile
China's Total Transaction Value Via 3rd Party Online Payments
US$ Trillion
69% p.a.
54%
38%
8%
Others
China's Mobile Payment Market Split, 2017
%
77
Regulation Will Shape China's Fintech Landscape
Tighter regulation and consolidation of regulatory bodies point to tougher fintech environment in the short-term.
Source: SCMP, PwC
In addition, China's financial regulatory bodies are being
consolidated to reduce financial risk.
Regulatory Body
People's Bank of China
(PBoC)
Securities Regulatory
Commission (CSRC)
Banking Regulatory
Commission (CBRC)
Insurance Regulatory
Commission (CIRC)

In March, China merged its banking (CBRC) and insurance (CIRC)
regulators to heed President Xi's calls to reduce financial risk.
Legislative powers would be transferred and centralized with the
People's Bank of China.

Responsible areas of fintech
Third-party fund payments and transfer
Crowdfunding and online fund products
P2P online lending, online trust products and
online consumer finance
Internet insurance
There has been tightened regulation in China's
internet financing and online lending segments.
New rules

In Nov 2017, China issued an administrative order
ceasing the issuance of new online peer-to-peer
(P2P) company licenses.

In Dec 2017, China's central bank and banking
regulatory commission jointly ordered that all
organizations and individuals must obtain a
license and operate with strict requirements.
Regulators set high capital requirements, a rule
mandating the appointment of a custodian bank,
full disclosure of fund information and a ban on
unsecured cash loans.
78
Ant Financial Is The Most Funded Chinese Fintech Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
Ant Financial
14,500
China Development Industrial Bank, Alibaba Group, National Social Security Fund, CCB
International, Primavera Capital Group, China Investment Corporation
JD Finance
3,000
CICC, Sequoia Capital, China Taiping Insurance, Oils and Foodstuffs Corporation, China
Creation Ventures, Harvest Global Investments, China National Cereals
Lufax
1,700
CICC, COFCO, CDH Investments, China MinSheng Bank, Guotai Junan Securities,
Arbor Ventures, BLackPine Private Equity Partners
U51.com
825
Yintai Group, Shunwei Capital, JD, Meridian Capital China, Xinhu Zhongbao,
Tiantu Capital, GGV Capital, Harvest Capital
Jiedaibao
694
JD Capital
OneConnect
650
SBIIDG Ventures, Ping An
CGTZ
521
Geo- Jade Petroleum, China Media Capital, Guangzhou YUEXIU Industrial Investment Fund,
Shunwei Capital
Dianrong
509
Standard Chartered Bank, EG Capital Advisors, CITIC Securities, Max Giant Capital, GIC, Bohai
Leasing, Sun Hung Kai Properties, China Fintech Fund, Cross Pacific Capital Partners, Norther
Light Venture Capital, GMIC Leasingm Simone Investment Mangers, ORIX Asia Capital Ltd,
MindWorks Ventures, FinSight Ventures, Tiger Global Management
WeBank
450
WI Harper Group, Temasek
Dashu
Finance
211
PAG, Primavera Capital Group, Sequoia Capital
As of June 2018
79
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Investors
Top Fintech Deals
Source Code Capital
Qudian, Smart Finance Group, INK, feidee.com, Nongfenqi, Huifenqi, zichan360, licai.com,
Lantouzi, Xiao Hu Group, juaicai.com, BMQB.com, ABC Fintech, Lean Work
IDG
China UMS, Qingsongchou, Shuidihuzhu, EasyTransfer, Tongdun, Qiandai,
Tongbanjie, wacai.com, Wecash, 100credit.com, Yixin, Formax, TransferEasy
Sequoia Capital
ddjf.com, Shoujidai, Xiaoyusan Insurance, Zhongan, Pai Pai Dai
Jinfuzi, feidee.com, 19pay, rong360.com
BANYAN Capital
Zhongrongjin, Qiandai, Shuidihuzhu, Yuanbaopu, Qianbao, QuantGroup, Jcaimao
BAI
Yixin Group, Fenqile, Nongfenqi, Meixin Global, Bigo Live, Baca, Linklogis
Marathon
Venture Partners
Baozhunniu, Knowlegene, ejsino.com, Cihon, gevent.com, au23.cn, Totodi
Bluerun Ventures
Qudian, Shuidihuzhu, au23.cn, 51dang, Zhimahezi
Qiming Ventures
ABC Fintech, wacai.com, SequoiaDB
China Creation Ventures
id5.cn, Yixin, Sinowel, rong360.com
Vertex Ventures
InstaReM, Turnkey Lender, Maxent
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Fintech Investors In China
As of June 2018
80
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
81
Top Online English-Learning
Platform
Overseas Teachers Network
Over 40,000 teachers in the US
and Canada
14,800 teachers in the
Philippines and the US
Teachers in the UK, the US,
Australia and Canada
Over 20,000 teachers from 80
countries
Teachers from North America
and Europe
Online Education Connects Students In China With Int'l Resources
Top online English-learning platforms are all leveraging videoconferencing technology to connect students in China
with teachers overseas for real-time one-on-one lessons.
Source: GETChina Insights, VIPKid, 51Talk, DaDaABC, vipabc,
VIPKid, one of the top players in
the industry, follows an Uber-
like model that connects
overseas teachers with parents
& students.
There are online tutorials on
how to become a teacher on
platforms such as VIPKid.
VIPKid is also expanding the
business model overseas
i.e. connecting overseas
students with teachers in
China for Chinese-learning.
82
Online Education Is Empowering Students In Rural China
Online education could be the answer to the challenges students face in rural China.
Source: SCMP, VIPKid
Challenges
Shortage of teachers
not enough qualified
teachers willing to take
up jobs in remote and
impoverished areas.

Outdated textbooks
rural students often use
textbooks more than a
decade old.
Solutions
Live-streamed classes -
enable educators in cities
to reach out to students
in rural areas with
updated teaching
resources.

AI-enabled education
frees up teachers' capacity
and leads to more
personalized education
based on individual
students' needs.
Examples
Government policy -
China's Education Ministry has required governments at
all levels to spend a minimum of 8% of their funding on
digitalization of education.
87% of primary and middle schools in mainland China
had access to the internet by 2016, according to the
ministry.

Ed tech companies -
VIPKid x Jack Ma Charity Foundation launched the
Rural Education Project in 2017, which aims to bring
online education to 10,000 classrooms.
CCtalk (online learning platform from Hujiang EdTech)
offers free online lessons taught by experienced
teachers based in cities on a voluntary basis.
83
VIPKID Is The Most Funded Chinese Education Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
VIPKID
825
Sequoia Capital, Zhen Fund, Tencent Holdings, Sinovation Ventures, Bryant Stibel
Investments, Learn Capital, Matrix Partners China, Northern Light Ventures Capital,
YF Capital
Yuantiku
244
New Horizon Capital, IDG Capital Partners, Tencent Holdings, Matrix Partners China,
Warburg Pincus, China Media Capital
Zuoyebang
235
Sequoia Capital, H Capital, Legend Capital, GGV Capital, Xianghe Capital, Tiger
Global Mauritius Fund
Qingting.fm
230
Sinovation Capital, Baidu, CMIG, Shenzhen Guozhong Venture Capital
Zhangmen
200
Warburg Pincus, Genesis Capital, StarVC, Shunwei Capital
Qingqing Jiajiao
188
Sequoia Capital, IDG Capital, FREES Fund, TAL Education Group, ClearVue Partners,
Trustbridge Partners
Hujiang EdTech
187
Wanxin Media, China Minsheng Investment Group, Baidu
Zhihu
185
Tencent Holdings, Sinovation Ventures, Capital Today, SAIF Partners, Sogou, Qiming
Ventures Partners
igetget.com
170
Sequoia Capital, Qiming Ventures Partners, Tencent Holdings, Youku, Shunwei
Capital, Zhen Fund
Xueba100.com
121
Anhui Xinhua Media, M Fund, Grand Fight Investment, China Wisdom, Yada
Education, Vertex Ventures, Qiming Ventures Partners, China Merchants Capital,
Trustbridge Partners
As of June 2018
84
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Investors
Top Online Education Deals
Zhen Fund
VIPKID, igetget.com, VIPCODE, ToDoEN, LiveEdu.tv, Duia.com, Koala Reading
Shunwei Capital
Zhangmen, Hujiang EduTech, igetget.com, Qingting.fm, 17Zuoye, zhan.com
Matrix Partners China
VIPKID, BBTree, Yuantiku, Qingting.fm, Baicizhan
Sequoia Capital
VIPKID, Qingqing Jiajiao, igetget.com, Zuoyebang, Baicizhan
IDG Capital
Qingqing Jiajiao, Yuantiku, LingoChamp (liulishuo) , MSSVOCAL
Sinovation Ventures
VIPKID, Zhihu, Qingting.fm, VIPCODE, Waijiaoyi
Trustbridge Partners
xueba100.com, Qingqing Jiajiao, LingoChamp (liulishuo)
GGV Capital
Zuoyebang, LingoChamp (liulishuo) , Koala Reading
Qiming Ventures
Xueba100.com, igetget.com, Zhihu
Warburg Pincus
Yuantiku, Zhangmen
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Education Investors In China
As of June 2018
85
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
86
26.1
30.8
37.9
25.1
28.1
30.4
55.3
62.9
69.6
106.5
121.7
137.9
2016
2017
2018e
China
US
RoW
China Further Solidifies Its Place As The Largest Gaming Market
Most of China's growth comes from mobile gaming with Tencent and NetEase leading the way.
%
China
(1)
Consumer revenues generated by companies in the global games industry, excluding hardware sales, tax, business-to-business services and online betting.
Source: Newzoo, iResearch, askci consulting
0%
20%
40%
60%
80%
100%
2016
2017
2018Q1



China captures more than a quarter of
global gaming software revenue1



primarily driven by mobile gaming



which is dominated by two players:
Tencent and NetEase
24%
25%
28%
$B
46%
53%
58%
54%
47%
42%
24.4
27.5
37.9
2016
2017
2018e
Mobile
Other
Tencent market share
NetEase market share
87
Others
Battle Royale Is All The Rage
Survival and shooter games have evolved into a new genre of battle royale which is sweeping mobile gaming. Chinese
developers are capitalizing and have developed multiple versions globally.
Source: Newzoo, SCMP, Abacus
NetEase
Tencent
NetEase had first mover advantage, launching Knives Out and Rules
of Survival in November 2017 in Chinese, English and Japanese.
Normally, NetEase works to establish games in China before
releasing them overseas but this time they changed their strategy.

Knives Out
50 m monthly active users as of Jan 2018
Rules of Survival
25 m monthly active users as of Jan 2018
Shortly after in Feb 2018, Tencent launched two different versions
of PUBG (PlayerUnknown's Battlegrounds, the overnight success
originally launched in March 2017 for PC) in China.
The international mobile version of PUBG was launched in March.

PUBG: Exhilarating Battlefield
7.3 m downloads in China on iOS in debut
month (#1 mobile game)
10 m daily active players (outside of China)
as of May 2018
PUBG: Army Attack
2.9 m downloads in China on iOS in debut
month (#2 mobile game)
88
Zeus Interactive Is The Most Funded Chinese Gaming Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
Zeus Interactive
410
Legend Capital, ENLIGHT MEDIA
iDreamsky
Technology
356
Hwa Xiu Investment Group, Legend Capital, Legend Star, Redpoint
Linekong
228
IDG Capital Partners, New Enterprise Associates, SAIF Partners, Orchid Asia Group
Management, Starwish Global Limited, Northern Light Venture Capital, Profitable
Century International Limited
Forgame
150
Qiming Venture Partners, Kongzhong, TA Associates
Mokylin Group
92
Pine Capital Partners, Cowin Capital, DELI Group
FunPlus
87
Signia Venture Partners, GSR Ventures, Orchid Asia Group Management, Steamboat
Ventures
Laoyuegou
70
Tiantu Capital
Cheng Guang
55
Greenwoods Investment, Atlas Capital LLC, Guojin Capital
Hoolai Games
38
Sequoia Capital, Zero2IPO Capital, CyberAgent Ventures, Greylock Partners, BAI,
Tencent, Wanda
EGLS Technology
23
Matrix Partners, Yinxinggu Capital, IFG, Galaxy Internet
89
As of June 2018
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Investors
Top Gaming Deals
Tencent Win-Win fund
Kamcord, Tianfeng, Pocket Gems, Heijing, Fireforge Games, Grinding Gear Games, VSPN
IDG
PlaySimple, Banana Culture, flamingo-inc.com, FUZE GAME, Sevenga
Sinovation Ventures
limboworks, iLongyuan, ENJOYGAME, 5EPlay, ImbaTV, Kamcord
Sequoia Capital
Zenjoy, Capstone Gaming, shiwan.com, BlingStorm, MYBO, CocoaChina
Matrix Venture Partners
mofang.com, Ismole, Kaiqigu, EGLS Technology, Forever Game
Zhen Fund
Jindouyun, Haichuan Game,Dreamobi, Taiyouxi, OtakuGames
Fortune
Venture Capital
is-vr.com, iDreamSky, Miqtech, aiyounet.com, freeg.cn
Green Pine Capital Partners
Mokylin Group, Youzu Interactive, Niuqu Internet, HuoYoo
Prometheus Capital
Palmstar Game, Lanyou Culture, Forgame, iDreamsky Technology
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Gaming Investors In China
90
As of June 2018
Table of Contents
Ecommerce
Content & Media
Social & Messaging
Sharing Economy
Artificial Intelligence
Smart Devices
Blockchain
Fintech
Education
Gaming
Esports
Autonomous Car
China at a Glance
1
Four Overarching Themes
2
Deep-dive by Sector
3
21
29
37
43
49
58
63
68
75
81
86
91
91
Live Streaming Of Esports Remains Dominated By Two Players
In China, more than 200M viewers tune in to Esports via live streaming each year, mostly on Huya and Douyu.
Rank
Video
Platform
May 2017 MAU
(app only)
1
18.0M
2
16.2M
3
8.6M
4
7.8M
5
4.5M
Source: Abacus, CNNIC, iResearch
More than 126 m people in China tuned in to
watch the finals of the League of Legends
tournament, Mid-Season Invitational (MSI). The
viewing audience in China alone is equivalent
to the entire population of Japan.
As of Q4 2017, Huya
had 610K monthly
active streamers
(desktop and mobile),
more than that of
Twitch which had
551K in Dec 2017.
92
Mobile Is The Main Growth Engine For Esports in China
Mobile Esports revenue surpassed PC Esports in 2017 and is expected to outpace it.
3.8
4.3
4.7
5.0
0.8
1.8
4.7
7.1
0.8
1.3
4.8
6.4
10.2
13.5
PC client
Mobile
PC browser
China's Esports Market
(1)
Esports revenue defined by desktop, mobile and ecosystem revenue, which includes sale of sponsorship, media rights, advertising, publisher fees and tickets and merchandising.
Source: iResearch, Esports Charts
100
130
260
320
2015
2016
2017
2018e
Market
Size
(US$B)
Audience
Size (M)
Many top mobile titles have
professional leagues, live stadium
events and ms of viewers
Tencent's "Honor of Kings" has over
200 m users and drew 20m viewers for
its King Pro League Fall tournament.
93
Douyu TV Is The Most Funded Chinese Esports Startup
Company
Total Funding(1)
(US$ m)
Selected Investors
Douyu TV
1,130
Tencent holdings, Cmb International, Sequoia Capital, Phoenix Capital
Hero Entertainment
560
Sequoia Capital, Zhen Fund, Huayi Brothers, Pusi Capital
Panda.tv
260
Lighthouse Capital, Hanfor Holdings, Zhen Fund, 360.com, Autobot Capital
Partners
ImbaTV
230
Cowin Capital, Sinovation Ventures, Suzhou International Development Venture,
Addor Capital, Pusi Capital
Chushou
57
Alpha X Capital, Shunwei Capital, Google, Feidian Capital,
Qiming Venture Partners, GGV Capital
Wangyu Master
50
Zhejiang Jinkong Capital Management, Mishuo Fund, Shenzhen Capital Group
Longzhu TV
43
SoftBank, Tencent Holdings
Banana Culture
36
Wargaming, IDG Capital Partners, Seeinfront Capital, Matrix Partners China, Esport
Capital
HK Esports
30
Autobot Capital Partners
XianyuGame
28
Yao, Huayi Brothers, Jinke Holdings
As of June 2018
94
(1)
Total funding amount highly depends on company disclosure and may vary by sources. Best estimates apply here.
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Investors
Top Esports Deals
Tencent Win-Win Fund
Douyu TV, Xishanju, tthl.qq.com, Gameley, Jingle Game, Kamcord, eeyy.com,
iDreamsky Technology, Longzhu TV
Zhen Fund
Hero Entertainment, Panda TV, Wangyu Master, Kaiheikeji
Sequoia Capital
Douyu TV, Hero Entertainment, Kaiheikeji, 5EPlay, Cyphytech
Matrix Venture Partners
Kuka Shuzi, Mofang, Ismole, EGLS
Autobot Capital Partners
Panda TV, Kaiheikeji, HK Esports, Zhangmeng
Prometheus Capital
ImbaTV, Hero Entertainment, PentaQ
Fortune Venture Capital
dj.sina.com, YOOZOO, sqage.com
Source: Crunchbase, ITjuzi, Zero2IPO
Most Active Esports Investors In China
95
As of June 2018
Table of Contents
Acknowledgement
Abacus News
Ravi Hiranand, Xinmei Shen, Andrew Barclay


500 Startups
Edith Yeung, Stella Zheng, Bonnie Cheung


South China Morning Post
Chua Kong Ho, Ang Jin, Yifei Shao, Joey Liu, Pablo Robles, Zen Soo, Sarah Dai, Celia Chen




For any questions or comments regarding the report, please email: report@abacusnews.com
96
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