Tuesday Tech Briefing: iFlytek, JD.com, WeChat

BIG TECH COMPANIES

1. iFlytek Accused of Giving Its AI Program Credit for Translations Done by Humans

What: Shenzhen-based translation software company iFlytek Co., Ltd. has denied misleading the public by crediting its artificial intelligence technology for translation work done by human staff.

The company’s CEO took to Weibo over the weekend to deny accusations that iFlytek lied about using its language software to translate speakers in real time at Thursday’s 2018 International Forum on Innovation and Emerging Industries Development in Shanghai.

Why it’s important: A sales representative for iFlytek told Caixin that while its machines can translate English into Chinese, Chinese into English still relies on manual translation. It charges around 20,000 yuan ($2,900) for a half day of its Chinese to English service. (Caixin)

2. New WeChat Messages Surface in Rape Case Involving JD.com Founder

What: A lawyer for the University of Minnesota student and alleged rape victim of JD.com Inc. founder Richard Liu has confirmed the contents of WeChat messages sent by the 21-year-old woman on the night of the incident, Reuters reports.

“I was not willing,” the student wrote to a friend in Chinese before dawn on Aug. 31 in messages that had previously not been made public. “Tomorrow I will think of a way to escape.”

Big picture: Richard Liu, also known as Liu Qiangdong, founder of Chinese e-commerce giant JD.com, was arrested on suspicion of rape on Aug. 31 in Minnesota. He was then released without being charged and has denied any wrongdoing through a lawyer. Shares of the second-largest ecommerce website in China have fallen as much as 50% since January. (Reuters)

3. Haidilao Prices Shares at Top of Range Before Wednesday's IPO

What: Haidilao has confirmed its initial public offering (IPO) pricing of HK$17.80 a share in a filing with the Hong Kong stock exchange. This puts Haidilao on course to raise about HK$7.27 billion ($930.4 million) when its shares begin trading Wednesday, giving the company a valuation of around $12 billion, greater than all other Hong Kong-listed restaurants combined.

Why it’s important：Haidilao’s restaurants are known for serving spicy broths and providing attentive customer service, which includes giving free manicures, shoulder massages and dance performances. It ratcheted up revenues of 7.3 billion yuan in the first half of 2018, a year-on-year increase of 54.4%. Profits attributable to major shareholders were 647 million yuan in the same period, a year-on-year increase of 17%.

Big picture: At present, analysts generally think the company’s IPO and expected profits will give Haidilao a price-to-earnings ratio of around 30. That would put it roughly in line with the average ratio of 37 for major international chain restaurants such as McDonald's, Starbucks, and Yum! China. (Caixin)

POLICY

4. China Plans to Outlaw Foreign TV Shows in Prime Time

What: China’s government plans to outlaw foreign TV shows in prime time and to limit imported content in fast-growing streaming platforms. The National Radio and Television Administration proposal will also limit air time for foreign content and cap the participation of talent from outside the country.

Why it’s important: The government has sought to limit foreign TV programs as President Xi Jinping strengthens the state’s control of media and make it easier for Chinese content producers to compete. Under new rules, foreign content would also be limited to 30% of that available on streaming platforms. (Caixin)

PRODUCTS

5. Tencent Launches WeChatPay HK on Guangzhou-Shenzhen-Hong Kong High-Speed Train

What: Tencent has announced it has enabled WeChat Pay and WeChat Pay HK for purchases of tickets for the Guangzhou-Shenzhen-Hong Kong high-speed train using either the yuan or Hong Kong dollars.

The ticket office of Hong Kong’s West Kowloon station now supports both payment methods.

Why it’s important: WeChatPay HK was specially designed for Hong Kong users. Tencent is accelerating its efforts to connect the Chinese Mainland and Hong Kong. (Tencent Tech, link in Chinese)

6. Beijing Pilots Online Bus-Hailing Service

What: The Beijing Public Transport Group is piloting an online bus-hailing service at the Beijing South Railway Station that allows passengers to select a destination and departure time ahead of their journey. The bus departs when it has reached the minimum number of passengers.

Why it‘s important： Online bus-hailing is intended to link up passengers who have similar journeys and travel times. The expected per-person fee of this mode of travel is higher than that of regular bus routes, but cheaper than taxi rides. (Economic Observer Online, link in Chinese)

Compiled by Shen Xinyue