Alibaba Makes Major Investment Into Uniview
China's e-commerce and cloud services giant Alibaba has bought 15% of the shares of Uniview's parent company, TransInfo, in a deal worth ~$500 million.
The move means Uniview is now partly-owned by Alibaba, 'the Amazon of China' and the second-largest Chinese company by market cap (currently worth ~$400 billion). This comes at a time when Alibaba is expanding into the video surveillance / AI market.
In this note, we examine the deal and its impact on video surveillance, including:
- Deal and cloud partnership overviewed
- Uniview's financials examined
- How this can help Uniview
- What Alibaba is doing in security / video surveillance
- Why this is a challenge to Dahua and Hikvision
Deal ********
*** **** *** ********** ********* ** a********* ****** **** *********** *** **, ****, ****** **** Alibaba ****** ***,***,*** ****** ** * price ** **.** **** *** *****, totaling ***** $*** ******* (*.* ******* yuan).
** ***** ****,******* *** **** ***** ** ******* ****** **** **** Capital ***********, * ********-****** *** ***** ************** firm, *** $*** *******.
Cloud *********** *********
** *** **** ***, ******* *** TransInfo********* * ***** ***********. ******* *******'* *** ***** ****************, *** ********** ***************, ******* ** ****** *** ******** in *** **.
*** ************ ** ***** ** *********, stating ****:
*** *** ***** **** ****** ********* in *** ***** ** *********** ************** and **** *********, *** *** ******** cooperation ***** ******* *** *** *** limited **: *********** ************** - *** two ***** ******* ******* *********** *********** solutions *** *** ************** ********- *** in *** ***** ** *********, *** two ***** ******* ******* *** "***** + **** + ***" **** **** solution.
***** *** ************ ***** ** ******* of *******, *** '****/***' *********** ***** is ****** * ********* ** *******'* hardware ********.
Uniview ********** ********
*******, ************* ** *** *****-******* ***** ************ provider ** ***** *** *** ***** largest ********, **** "**** * ******* yuan" ** ******* *** ****, ********* to*********'* ****** ******,** **** $*** *******. ********* ** a ***** **** ***** $*.** ******* in ******* ** ****, ******* ******* brings ** **** **** *** *******. That **** ********* **** ***** $*** million ** *******; **** ******* **** not ********* *** *******.
Domestic ** ******** *******
***** ******* ** **** ***** ** the ******* ***** ** * ******** of ****** *********, ****** ** ***** it ** ** ********** ********.
*** *******, ******* *** * *********** presence ** ****** ****** ************ ********, with *** **** **** *** ******** ************ ********* ***** ** ***, ********* to *********'* **** ******.
Comparison ** *********/*****
***** *******'* ******** *** ***********, ******** to ********* ($* *******) *** ***** ($*.* *******), **** *** ***** **** **** than */*** ** ***** *** */**** of *********.
How **** *** **** *******
******* ** * **** *******, **** vastly **** ********* ********* **** ********* or ***** ($** ******* ** ******* and ****** $** ******* ** ****** for ********* ****** ****.) ** ** **** *** ********* subject ******* ** ********* **** ************* ************* ***** ****** ********* **** *********/*****. Backing **** * ******* **** ******* in ***** ** **** ***** ****** by ****** ** *** **.
**** **********, *** ********** ***** ******* gear **** ****** ** ******* *** any ******* ***** **** ********.**** ******, ******* ** ****** ** **** an ************ ********* **** ** *** PRC/global ***** **** ******, **** *** cloud ********'* "**** *****" ********.
Alibaba's ********/**** ***** **********
***** ** *** ********* **********, ******* did *** **** ****** ***** ************ industry ****. *** ***** ********-******* ******* is **** *****, ** ** ******** solution *** **** *********** ***** ***** aim ** *** *** **** ************ ******* ** ****** **********.
***** ******* ******** *********** ***** ************ its ******** ***:
**** ***** ** ** *** ** places ************(*** *** **** ***** *******, *****, and *********, ** **** ** *******, are *************) *** *** ********* ******* of***** ******.
******* ************** ********** ******* **** ***** *** "****** of ********" *********. ** ***** *** find * ************* ****, ** *** unable ** ****** **** *****, *** aside **** ******** *** ***** ****** the ****** *** **** ********* **:
- ******,* **** ** *.** **** ********, in ****
- *******,* *** ***** **** **** ******* established *** ********** ********, ****
- ********, * **** ** *.** **** Beijing, ****
- *****, *** ******** ******* ** *****, 2017
**** *** ****** ** **** *** City ***** ******** ********** ****** ******, so *** ******** *** ****** ** be ******** ****** **** ********-******* ** this *****. *** ***** ** *** projects ****** ** ****. ** ********, City ***** ******** ** ********** *** traffic ******/********** *** ******, ******* *****'* City ***** ******* ** **** **** expansive, ******** * ***** ********* ******, public ********* ******, *** **** *********** health *******.
Challenge ** ***** *** *********
**** ***** *** ********* **** ******** made ******* ***** ******* **** ******** markets/smart **** *********: ***** ******** ***"***** ** ****"******** *** ********* ***"** *****".*******'* ********* ********** *** ***** *********** present * ****** ****** ** ***** initiatives, *** ****** ** *******, *** threat ** *** **** ********/***** *** also *****'* **** ******** ******.
******* ** ******* **** *********** ********, *** ********* ********** ***** **** Alibaba "*** * **** ***** **** of *** ******** **** ********, ******* on ****** ******** ******** ** ***** their *** *********, ******* **** ********, and ****** * ****** *********."
"*** ******** ***** ********", ******** *****.
*****, ****** *** ****** ** ****, much ****** ****** ** ***** *** 'smart ****' / ****** ************ **** US ****** / *** / **** market *******. *** ******* ** **** stronger ****** ** ***** **** *** US.
** ***** ******, **** ***** ****** in **** ** ********* *** ************ it ******* ** ** ***** **** attractive ** ****** **** ************ ****** China.
*** *** **** ******* ******** *********** terms **** ** ******** ***** ************ company **** *** **** ** ******** for ****** **** ****'** ******* *** has *** ************ *** ******* *** in *** ****** ****. **** ***** they *** ** ****** ** ***** own, ** ******. ****'** **** *****, like ***** ***** ******* *********** ** attempt ********* ** *******...
** *** **** ******** **** *** and **, ********* ** ******* **** what **** ****** **** ***. ****** they ** * ***** *** *** become *** ***** ******* ******* ** actually ******* *** **** *** *** natural ********, *** *** **** **** them *** ******* *** ** ** with *** ***'* ****** ****.
****'** ** **** ** ***** **** their ******* *********, *** **** ***'* do **** **** **** ****** **** learn ** ** ****** *** ********* of ****** *** ********, ** **** truly **** ******** *** *** **** temporary ********* ***** **** ********* ***** in *** **** (**** **** **** the **** **** ** *** *** fell ****).
**** *** *** *** ******** **** this ****? ******* ******** ** ***'* click *** ******. ********, ****, *** should **** ****** ******* ***. **'** developing ******** **** **** ***** **** other ** **** ****, ******* ***** is * ***** ***** ** ** made ** ***. **** ** **** American ********.
**** *** *** *** ******** **** this ****? ******* ******** ** ***'* click *** ******.
* **** ********* **** **** *******. People *** **** '********' ******* ********** themselves. ****'* *** ***** ******* ** having * ******** ******.
***, *** **'* ** *********** ** know ***... *'* * *** *** of ******* *** *** ***, * might ** *** ** *** *** I *****...
********** ******* ** ** *** **** disagrees, * ****** ****** ***. ***'** basically **** **** * **** ** many ***** *** ** ** **** ways... **** ***** **** **** ********* to **.
* ***** * "****" ***'* *** it.
****; ****... ** **** ******** "*************" count ******* *** "******** ******* *******" ? **** ***** ** ** ***** layer ** *********** *** ****.
* *** *** ******** (*** *****) with **** ******** *******. * ********* with *** ***** **** "*** ****** **** ****** ******* ***". Not ******** ** ***** ** ******* why. *** ***** ** * *** place, ****** ** ****** ******** ******* explaining *** **** **** **** ******* **'* **********, *.*. *** ****.
****; ****... ** **** ******** "*************" count ******* *** "******** ******* *******" ?
********* **** ** ***** ** ****** / *******. *********** ****** +*, ***** and ***** +*, ******** *, ********* -1
****** **** * *********** *** ******* UNV *** *** ******.
**'** **** ******* ******* *** ******* low ****** **** *** **** ******* with ***** ******* *** *******.
***** ****** * ********* ****-***** *********** would ********* **** **** ***** (** less *** ***** ******) *** ** one ********** **** *'* *** *** that ** **** ** *** ****** don't ** ** *** ****.
...*** ***** ****** **** ** ** drastic *** **** ** *** ******* should **** ****** **** ******.
*********** ***********. * *** ****** ** the ****** ******* *** *******. **** seems **** ************ **** ******* ** me. ********** *** * ******* ***** called *** "****** ** *****"
******* *** "...$** ******* ** ******** and $** ******* ** ******* **** year...
*** ******* ****** **** ****** $* profit ** ***** $* ** *******?
*** ******** *** ***** ******* *** accounting ********* ** *****? ** * general *******; ** ***** **** ***** just **** ** **** *** ******* to **** ** *** *********** ******** of ******* ******* ******** ********. *** the ******** ****** ********* **** ******** than *** ******-***** ** **** **** the ******* ********** *** *** "*********"?
#*, ******. * ** *** **** about *** ** / ** *********. When ******* ** **** ******, ** will *******.
**** ******* **** ************* ***** ** * ********* ** their ****** *********:
**** **** **** ** ~** ******* and ~** *** ******.
*** ******** *** ***** ******* *** accounting ********* ** *****?
*****'* * **** ****** ** **********, to *** *** *****. ** ******, it ** **** ** *** *** off ******* ********** ** ******* ***. For *******, **** ********** ** *** believe *** ***' * *** ****** is *** *.*% **** ***** *** is ** *.*%, *.*%, *.*%, ***.?
**** ***** - *** ******* ** the **** *** *** ******* *** have **** *******. ***** ******* **** based ** ****** ******* ********** * ******** "***** ******" *** "net ******". ******, ******* *****'* ***** calendar ***** (*** * - *** 31) *** **** ** ****** **** (March ** - ***** **). ** for *** ****** ****** ****, *.*. March **, **** ** ***** **, 2019, *******'* ******* ***$56.125 *******, and its net income (profit) was $11.9 *******. So they are still highly profitable but definitely not as much as the post made it seem. (These ********** ********* ** ******* ******, *** ***** Finance.)
** *** **** ******* ***** *** figures *********** ***** ********** *** ** PRC ***** *********, ******* ********** *** *** **** ***** ********, so I ***** *** ******* *** ****** solid.
** ******* ****** **, **** ***** invest ** * **** ** ********* and ***** ******* ******* **** *** that ***** ** ** **** ****** with *****.