HONG KONG, April 17, 2024 – (ACN Newswire) – Beijing Texan Venus Technology Limited, an indirect wholly owned subsidiary of Fenitron Holdings (8066.HK), has entered into a capital injection agreement with Hangzhou Bizike Intelligent Technology Co., Ltd. and intends to take over Hangzhou Bizike's registered capital. expressed. Once the transaction is completed, Beijing Texan Venus will hold 20% of Hangzhou Bizike's expanded registered capital. This marks the group's formal entry into China's multi-trillion dollar e-commerce market and allows it to expand its operations and expand its revenue streams.
China's e-commerce market has continued to grow in recent years. That and the outbreak of the COVID-19 pandemic have pushed consumers to shop online, resulting in accelerated growth in the country's e-commerce market, short video platforms, livestream commerce, and businesses. were inspired to pursue the transformation from offline to online. Success depends on his marketing and sales online through online KOL live streaming. According to market research firm eMarketer, China's retail e-commerce market continues to grow and is expected to reach approximately RMB 28.8 trillion in 2027, indicating its great development potential.
For Fenitron, the thriving e-commerce market presents significant opportunities for the company's growth strategy and diversification of its business. Therefore, the group decided to acquire Hangzhou Bizike, an e-commerce business, to support greater business growth and revenue generation in the future. Hangzhou Bizike's main business is marketing and selling products through live streaming, and also provides short video marketing and creating IP for his KOLs. The company will start preparing its live streaming business at the end of 2022 and start recording revenue in 2023, focusing on three major product categories with the highest ROI (return on investment): women's wear, health products, and beauty products. Ta. From June 2023 to March 2024, the transaction value generated through live streaming exceeded RMB 90 million, which is quite remarkable.
Currently, Hangzhou Bike is not only providing services to famous Chinese women's clothing brands, but also actively developing its own brand, and has already registered the brand “LULU OCEAN.'' A brand that specializes in women's sportswear for all seasons, including yoga wear. Hangzhou Bike plans to use the proceeds from the transaction to livestream its brand to promote product sales. Notably, the company's management team is made up of former executives from e-commerce platforms such as Alibaba and Douyin, a leading short video platform. Leveraging the relevant deep experience, we have seen Hangzhou Bizike's Tencent Video streaming website take the top spot among his live streaming platforms.
This capital injection will enable Fenitron to take Hangzhou Bike's live streaming capabilities into its own, expand into the e-commerce business, build its own brand, and capitalize on the growth momentum of China's retail e-commerce market. becomes. It is clear that the Group continues to explore growth opportunities in a variety of sectors by pursuing an aggressive business development plan, and these efforts will help us achieve even greater growth in the future. It will open up space.
The group recently announced its 2023 results, with sales increasing significantly by 35.3% to approximately HK$79.1 million, turning last year's net loss into a net profit of approximately HK$4.3 million. These results and the capital injection will prompt the market to reassess Fenitron's value and will act as an important catalyst for the group's market performance in the short term. In the long term, with continued efforts to expand business and improve profitability, the group will lay a solid foundation for future development, and its long-term value will continue to attract attention. .
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