Rebuilt in 1948.
Past: Bank of Communications (took over from Deutsch-Asiatische Bank in in 1919; Deutsch-Asiatische Bank 德华银行 was formed with the participation of Deutsche Bank)
Now: 上海市总工会
Built in 1902.
Past: Russo-Chinese Bank
Now: 上海黄金交易所，中国外汇交易中心，全国银行间同业拆借中心
In-between: In 1926 the bank went bankrupt and was purchased by the newly founded Central Bank of China (Taiwan)
Built in 1923, the largest bank building in the Far East at that time
Past: The Hongkong and Shanghai Banking Corporation (HSBC, purchased No. 12 in 1874, then No. 10 & 11 in 1912)
Now: Shanghai Pudong Development Bank
In-between: Japanese Yokohama Specie Bank, Shanghai Municipal Government (市政府)
Built in 1927, the clock and bell was built in England and in imitation of Big Ben; it has the largest clock in Asia
Originally opened in 1847. Currently the fourth rebuilt.
From Mogujie (NYSE: MOGU) to Ruhan (NASDAQ: RUHN) to Yunji (NASDAQ: YJ), a series of second-tier (in terms of size at least) Chinese e-commerce companies has filed with SEC and raised $66.5 million, $125 million, $121 million respectively (excluding any over-allotment option).
The interests were stirred by (at least) the capital market success of Pinduoduo.
In its IPO, Pinduoduo was valued at $23.8 billion including all outstanding share options, compared with a valuation of $15 billion following a funding round in April, 2018. (Reuters)
Following the IPO in July last year, Pinduoduo raised another $1,375 million in February at $25 per ADS (IPO priced at $19 for ~$1.6 billion).
However, it seems that only Pinduoduo could maintain a high valuation.
Partially due to a bad timing, Mogu, valued at $3 billion in 2016 and seeking a valuation of $4 billion in early 2018, reduced its target and was priced at the lower end for $1.3 billion. The previous valuation was derived from a merger tho.
Mogu Inc. ended its New York debut at the same price as its initial public offering $14, after dipping as much as 15% during the day. [Caixing]
As of May 17, 2019, Mogu closed at $5.4 per ADS, down more than 61% from the IPO price of $14.
Ruhan, or Ruhhn, slipped 37% below its IPO price on the first day of trading following a $125 million NASDAQ offering. [AVCJ]
As of May 17, 2019, it closed at $4.25 per ADS, down more than 66% from the IPO price of $12.5.
Yunji, debuted this month, has maintained $0.01 above its IPO price of $11 as of May 17, 2019. Yunji’s valuation is more supported by its revenue (EV/revenue multiple is close to 1).
And a roundup of multiples at IPO, using an exchange ratio of 6.8
| EV/GMV | EV/Revenue | |
| PDD | 0.28 | 10.19 |
| MOGU | 0.43 | 7.06 |
| RUHN | 2.34 | 5.72 |
| YJ | 0.56 | 0.98 |
Rebuilt in 1907.
Past: Danish Great Northern Telegraph Company, the earliest commercial telegraph services provider in China
Now: Bangkok Bank, the largest commercial banks in Thailand (since 1995)
In-between: Commercial Bank of China (No.6 on the Bund), 长江航运管理局 (later split into 长江航务管理局 and 长江轮船总公司, more on the reformation)
Built in 1901.
Past: China Shipping Merchant Company (bought in 1891)
Now: China Merchants Group (parent group of companies including China Merchants Bank)
As in previous eras, there is today a division of labor between the elite and the masses. In medieval Europe, aristocrats spent their money carelessly on extravagant luxuries, whereas peasants lived frugally, minding every penny. Today, the tables have turned. The rich take great care managing their assets and investments, while the less well heeled go into debt buying cars and televisions they don’t really need.
Built in 1916.
Past: a group of insurance companies (including Union Insurance Society of Canton，于仁洋面保安行/保安保险公司/友宁保险) -> Mercantile Bank of India, London and China (有利银行，purchased for £80k in 1937)
Now: Three on the Bund. In 2004, House of Three Ltd. under Giti Group established Three on the Bund which opened to public in September same year. Giti Group is controlled by the Nursalim family (Cheri Nursalim is the daughter of Sjamsul Nursalim)
In-between: Japanese control, Shanghai Civil Architecture and Design Institute
Built in 1925
Past: Japanese shipping company Nisshin Kisen Kaisha Shipping Co.
Now: high-end restaurants, e.g. Ruth’s Chris Steak House, M on the Bund, etc.
In-between: China Merchants Steam Navigation Company, Shanghai Maritime Bureau, the Bund branch of Huaxia Bank
Built in 1907
Past: Imperial Bank of China, first Chinese-owned bank modelled on Western banks and banking practices, founded by Mr. Sheng Xuanhuai in 1897; later changed its name into Commercial Bank of China
Now: high-end restaurants, e.g. 东京和食 SUN with AQUA Japanese Dining & Bar, 御锦天, etc.
In-between: Shanghai Changjiang Navigation Company (长江轮船公司)
A roundup of those historically unique buildings.
Built in 1916.
Past: Asiatic Petroleum Company (oil & gas), a joint venture between the Shell and Royal Dutch oil companies founded in 1903 (Royal Dutch and Shell merged into The Royal Dutch Shell Group in April 1907)
Now: Japanese control, East China Petroleum Company, China Pacific Insurance Company (insurance)
Rebuilt in 1909.
Past: The Shanghai Club, the principal men’s club for British residents of Shanghai, founded in 1861. The club was originally named “The Correspondent’s Club”.
Now: leased by the Hilton group in 2009 and converted to become the Waldorf Astoria Shanghai on the Bund, a luxury hotel. The new hotel opened in 2011.
In between: Japanese Navy Base, International Seamen Club, Dongfeng Hotel, from 1990 to 1996 for hosting the first KFC restaurant in Shanghai.
While Starbucks is probably the No.1 coffee brand in China, its position has constantly been challenged. Luckin Coffee, (briefly covered in a previous post) is cutting into the mass market with lower pricing.
Many people are eyeing on China’s growing coffee market, which will be huge and many are betting on the growth in average coffee consumption.
On the global capital market, Starbucks’ China push and Blue Bottle’s exciting/interesting movements (Jun 2015 $70 million series C; Sep 2017 acquired by Nestle, $425 million for ~68%) may as well push Chinese counter-parties to think about aggressive expansion or building boutique brands.
Listed here are 3 shops I visited recently. Will add more during the summer.
Costa is in direct competition with Starbucks, pricing its coffee at exactly the same level – grande latte @ ¥32.
Started in 2014 in Kyoto, Japan, % arabica is a young brand. It opened the first store in China in Shanghai in Feb 2018 in a trendy (网红) way. It already has opened 4 store in Shanghai alone, including a roastery at the Bund (7 in mainland China and 4 in Hong Kong as of May 2019).
% arabica is a premium brand with latte price starting @ ¥35 (but in short size), @ ¥45 for a tall size (or a little bigger than tall.. cant’ tell exactly), @ ¥40 for tall ice latte.
A trendy (网红) brand, 鹰集 is a little pricer than Starbucks, with its flagship store opened in January 2017 at Xintiandi, Shanghai.
While its office website only lists 3 locations right now, its has 6 places listed on Meituan in Shanghai. Growing very fast.
Pricing is in line with (or a little lower than) boutique coffee shops. Americano @ ¥28 and latte @ ¥36 (¥38 for ice latte). There is only one size (tall); a fair amount of cups are served in reusable cups.
When Tesla said “Deliveries were approximately 63,000 vehicles, which was 110% more than the same quarter last year, but 31% less than last quarter”, NIO wanted to say something similar.
The 2019 Q1 deliveries number was approximately half of that in 2018 Q4. (Still a good job in ramping up production fast)
To compare in numbers:
NIO said ES6 (to start deliveries in June) should have more than 10,000 pre-orders before deliveries.
Back in October 2018, HBO and DIAGEO unveiled 9 GOT co-branded whiskies – the new White Walker by Johnnie Walker Blended Scotch Whisky and The Game of Thrones Single Malt Scotch Whisky Collection (8).
Let’s look into some of those whiskies…
White Walker by Johnnie Walker SRP: $36 for 750ml; ABV 41.7%
Game of Thrones House Stark – Dalwhinnie Winter’s Frost; SRP: $39.99 for 750ml; ABV 43%
Game of Thrones House Targaryen – Cardhu Gold Reserve; SRP: $39.99 for 750ml; ABV 40%
Game of Thrones House Lannister – Lagavulin 9 Year Old; SRP: $64.99 for 750ml; ABV 46%