Evergrande Joins Forces with Tencent to Enter Internet Community Service Market

2015-08-01 07:04 3375

HONG KONG, Aug. 1, 2015 /PRNewswire/ -- On July 31, the Hong Kong listed company Mascotte (HK.0136) announced that Tencent Holdings (HK.0700) and Evergrande Real Estate (HK.3333), which had previously announced their intention to subscribe for 75% of the shares in Mascotte, would become the two largest shareholders of the company. Evergrande will hold 55% of the shares with a value of 550 million HKD; Tencent will hold 20% of the shares with a value of 200 million HKD; the remaining 25% are publicly tradable shares. An original report from Sina Leju follows:

It is learned that this is the first back-door listing of Tencent in Hong Kong, and Tencent will join forces with Evergrande to create an "internet + community service" ecosphere. The announcement shows that Tencent will leverage its internet scale and technological advantages, and Evergrande will leverage its community scale and property management service advantages, to jointly build an online platform for internet community service (ICS online platform) that will provide community users with O2O one-stop services such as ordering, logistics arrangement, and product or service delivery.

Relevant data shows that currently the property management area in China exceeds 20 billion square meters, the size of the internet community service market exceeds 1000 billion yuan, and 94% of the market space is yet to be integrated and developed. Based on the annual average compound growth rate over the past 3 years, the property management area in China will increase by 3.5 billion square meters in the next 3 years, and the market capacity keeps increasing.

It is learned that the cooperation between Tencent and Evergrande will result in cross-industry integration between Tencent's mobile internet, cloud computing and big data and Evergrande's traditional industries with extensive coverage. Such integration will completely change the face of traditional community service, create an innovative and integrated "internet + community service" platform, and will hopefully promote a blue ocean market with a size of 1000 billion yuan, and give birth to the next "BAT" giant. The market expects the share price of Mascotte to experience a sharp increase after resumption of trading on Monday, with highly promising market potential later on. 

Source: Sina Leju