Hi folks, we are back with our weekly edition of China’s Digital Digest, wherein we bring you weekly updates on China’s digital space. The report takes a quick glance at China’s complex and rapidly evolving social media landscape by providing updates on the latest happenings across the social media industry. Here are the major highlights of the report.
1. Tencent Profit Jumps 82% on The Back of Strong Video Gaming, Ad Growth
Tencent Holdings saw profits jump 82 percent in the second quarter, beating analyst estimates, on the back of new video gaming growth and improved advertising performance.
Profit reached 47.6 billion yuan (US$6.6 billion) for the quarter ended June, up from 26.2 billion yuan in the same period a year ago. Total revenue for the Hong Kong-listed firm reached 161.1 billion yuan, up 8 percent year on year from 149 billion yuan. Analysts expected 40.3 billion yuan in profit and 161.3 billion yuan in revenue for the quarter. Video gaming sales, traditionally Tencent’s strongest revenue driver, grew 9 percent in both domestic and international markets, reaching 34.6 billion yuan at home and 13.9 billion yuan overseas.
2. ByteDance Cracks Down on Corruption And Bribery Cases in The First Half of 2024
Social media giant ByteDance has reported 125 internal misconduct cases on the mainland, including bribery and misappropriation of company property, during the first half of this year, which resulted in either the dismissal or arrest of the offending employees.
About 88 ByteDance employees were sacked, while 17 others were taken into custody by public security authorities for the reported offenses, according to a statement by the company’s Douyin business unit. ByteDance’s peers have conducted similar actions. Tencent Holdings last year reported 70 internal misconduct cases that resulted in the dismissal of more than 120 employees, while nearly 20 others were referred to the police.
3. China's JD.Com Nearly Doubles Profits From a Year Ago
Chinese online shopping giant JD.com reported a 92 percent year-on-year jump in quarterly net income to 12.6 billion yuan (US$1.7 billion), despite a flattish revenue, as better operational efficiencies helped the company navigate intensifying competition in the domestic e-commerce industry.
During the quarter that ended June 30, the company achieved “growing economies of scale and procurement efficiencies” that allowed it to “bring users everyday low prices without sacrificing quality”, said chief executive Sandy Xu Ran in a statement. Net revenues rose 1.2 percent to 291.4 billion yuan from the same period a year ago.
4. Walmart Sells JD.Com Stake for US$3.6 Billion, Ending Relationship Since 2016
Walmart is raising about US$3.6 billion by selling its stake in e-commerce firm JD.com, winding down an eight-year partnership that appears to be paying diminishing returns amid a challenging landscape for Chinese tech giants.
The US retailing giant sold 144.5 million shares for US$24.95 apiece, according to people familiar with the matter, who asked not to be identified because the information is private. Morgan Stanley is the broker-dealer handling the JD.com offering, according to people familiar with the situation. JD.com also bought back US$390 million worth of its shares. The US firm has built a mature e-commerce and delivery system in mainland China for both Sam’s Club and its hypermarkets business and is focusing on its own offerings, a person familiar with the matter said, speaking on condition of anonymity.
5. AI Makes Alibaba Cloud Company’s Shining Star in June Quarter
Alibaba Group Holding’s big investment in artificial intelligence (AI) is already bearing fruit, as the company’s cloud computing business emerged as the shining star in its latest quarterly earnings while e-commerce missed expectations.
Alibaba Group has reported a 6% year-over-year (YoY) increase in its cloud business revenue for the quarter ending June 30, reaching RMB 26.5 billion ($3.65 billion). This growth marks the segment’s strongest performance since the September 2022 quarter, signaling a potential turnaround after several periods of single-digit growth.
6. Study Reveals That TikTok Use Could Put Women at Higher Risk of Eating Disorders
Exposure to certain videos on TikTok could put women at a higher risk of developing eating disorders, a study has suggested.
For the study, some 273 female TikTok users aged 18 to 28 were given questionnaires that measured disordered eating behavior, such as binge eating and self-induced vomiting, as well as body satisfaction and internalization of societal beauty standards. The majority were from Australia, with 71 percent reporting that they spent up to two hours a day on TikTok. Of the group, 126 were shown TikTok videos about disordered eating, such as young women restricting food intake and sharing weight loss tips, as well as videos of slim women showing off cinched waists and content about working out and juice cleanses. The remainder of the group was shown videos about nature, cooking, comedy, and animals.
Researchers warned there must be “effective controls” put in place on the platform to stop what they describe as “pro-anorexia” content circulating, or risk users experiencing “detrimental consequences”.
7. TikTok Adds Group Chats and Stickers in DMs
TikTok is adding stickers in its DMs, including video stickers comprising of TikTok clips, and user-created sticker sets that others can share in the app.
TikTok has also created a new sticker management platform, where you can upload your sticker creations, and see how much they’ve been used by others in the app. That could provide a new form of creative expression, while also giving artists another way to engage and spark new trends in the app.
TikTok is also adding its variation of group chats, with users now able to create chat groups of up to 32 participants. Available in your DM options menu, users can now select up to 31 friends that they want to include in a group discussion. You can also create a group chat direct from a video in the app, by tapping the “Share” button and selecting “Create group chat with friends.”
8. TikTok Tests Amber Alerts in User Feeds
TikTok has launched a new pilot program, in partnership with NCMEC, that will see Amber Alerts displayed directly within the For You feed, providing more coverage in cases of missing people in the app.
Initially beginning in Texas, the new program could be a significant help in boosting awareness of missing persons and getting more eyeballs looking for these people. And with TikTok’s younger audience skew, that could also be especially valuable, as many of the reports relate to missing teens, who could move in similar social circles. It’s another way that TikTok is looking to provide utility, in addition to entertainment, working with relevant organizations to deliver help and assistance in times of crisis.
Wrapping Up
The vast and diverse nature of the Chinese Social Media space makes it incredibly challenging to keep a tab on the rapid developments taking place. However, China’s Digital Digest brings you all the latest updates from there to keep you abreast of all the evolving trends.
To delve deeper into the findings of our latest report, click here.
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