wsj converge 2017 final: china frontier tech trends

China Frontier Tech Trends

2017 WSJ Converge

Presentation by:Jenny LeeManaging Partner, GGV Capital

Strong support from Chinese government will help this sector flourish

Source: China Gov’t 13th 5 year plan, 2017 China Gov’t work report, GGV research

13th 5 Year Plan Puts Internet, AI, Big data as Priorities

China sets aggressive targets to become an innovation driven country by 2020

18 15

2015 2020

$3.1T $4.8T

15% 20%

48 60

Country innovation ranks

High tech Co. revenue

Percentage of GDP by high tech Co.

R&D talents per 10k labor

GGV CONFIDENTIAL Slide 2

Frontier Tech Trends in China

SmartTransportation

Robotics Innovation

Age of Intelligence

Smart, Green & Autonomous

Human Machine Interaction

Human Machine Integration


Environmental Pressure Natural Resource Constraints Consumer Upgrade

Source: China 13th 5-year plan, National Bureau of Statistics of China, GGV research

Chinese Government Highly Motivated


Greener, smarter transportation will elevate pressure

Total Government Pledged Investment

$16 Billion

Policy Support 2020 Targets

Free License Plates

20-60K RMB Subsidy/Vehicle

5M EV Car Lots3.1K Charging Stations

500K Charging Piles

Source: www.gov.cn, GGV research

Chinese Ambitions for Smart Transportation

Notes: 2014-2020 pledged amount


Full EV

Hybrid

Total

(Units) YOY

263K

81K

344K

73%

30%

60%

(Units) YOY

Q1 2017

64K

14K

78K

67%

-32%

31%

2017 Chinese EV Market Statistics

Source: auto.sohu.com, www.chinaev.net, ResearchInChina: 2016-2020 China EV report, GGV research

Consumer

2016


New EV ownership exceeds 1 million units in 2016, expected to exceed 5 million units in 2020

http://www.chinaev.net/

BYD

SAIC

GEELY

JAC

BAIC

Local OEMs Transitioning to Smart, Green & Autonomous

Source: Company Website, GGV research GGV CONFIDENTIAL Slide 7

NINEBOT

NEXTEV LETV FARADAY

NIU

Emerging EV Startups for Different Consumer Needs

Source: Company Website, GGV research GGV CONFIDENTIAL Slide 8

CHEHEJIA

BIKE SHARING

Including the trending bike sharing wave hitting all China cities

Raised $5.5Bn for Frontier Techand Globalization

Established Apollo Project, an Open Source Ecosystem on Self-Driving

AI + Self-driving R&D Set up Silicon Valley AI Lab

Baidu WuZhen Fleet Demo

Baidu L4 in Beijing

More Autonomous; Startups with Chinese Founders ..

Source: finance.sina.com, it.sohu.com GGV research GGV CONFIDENTIAL Slide 9

Chinese Robotics Market ($Bn)

Chinese Robotics Market Set to Grow

Source: www.robot-china.com, iResearch, GGV research GGV CONFIDENTIAL Slide 10

http://www.robot-china.com/

Robotics R&D Investment by Revenue

IP per ￥100Mn revenue

Units of Local Brand Production

Sales of Consumer/Service Robots

2015 2020

0.95%

0.44

n/a

$1.2Bn

1.26%

0.70

100K

$4.3Bn

Chinese Targets for the Robotics Industry

Source: www.miit.gov.cn, China Smart Manufacturing Plan 2025, GGV research GGV CONFIDENTIAL Slide 11

Source: IFR, China Robotics Industry Development Plan, Company Website, GGV research

Fast Growing Chinese Industrial Robots Market


Global stock of operational robots expected to increase from 1.6m units in 2015 to 2.6m by 2019

China expected to lead purchase of robots at 40%(160k units) of global supply in 2019 (from 27% in 2016)• China domestic technology still lags behind foreign players and needs to catch up• Policies look to support R&D and startups through investment. Set targets of 100k Made-In-China

industrial robots, 500k robots with six axis and sales to exceed 30Bn yuan by 2020

0

20

40

60

80

100

120

140

160

2014 2015 2016 2017 E 2018 E 2019 E

Thou

sand

s

Annual Supply of Industrial Robots (Units)

China Asia/Australia Europe USA

Average Robot Density in 2016 Unit per 10K employees

Global Average at 69

Industrial Production Warehousing/Logistics

Warehousing/ Picking

Sorting Systems

Source: IFR, China Robotics Industry Development Plan, Company Website, GGV research

Examples of Chinese Industrial Robots Manufacturers


E-DeodarSINSUN

Restaurants

KEENON YUNJI

MICROHAND ATINAVI

NUDT

Hotels Medical Public Security

Examples of Chinese Service Robots Startups

Source: Company Websites, GGV research GGV CONFIDENTIAL Slide 14

Devices for the Home

Examples of Chinese Consumer Robots Startups


Chinese government positions AI as the next priority for development

Next Priority for Chinese Development: AI+

Premier Li included AI in 2017 Government Work Report

• Build up AI ecosystem, industrial standard and public service platform

• Support AI R&D and commercialization

• Build up IP and talent education system

Government released ‘16-’18 Internet and AI 3-year plan

NDRC initiated a National Deep Learning Lab, led by Baidu in 2017

Government plans to invest $15Bn to develop AI industry

Source: 2017 China Gov’t Work Plan, www.gov.cn, GGV research GGV CONFIDENTIAL Slide 16

Computing Infrastructure

Algorithm Data

AI Infrastructure, Talent, Data: China is Ready

Source: World Bank, CNNIC, US Office of Science and Technology Policy, GGV research

21%

15%

Note: China expected to generate 15% of global data in 2017, growing to over 21% in 2020


Chinese Startups in Computer Vision

Facial and Image Recognition API for Different Applications

Raised ~ $120M in 2017 Raised ~ $100M in 2017


Chinese Startups in Natural Language Processing

Speech Recognition Semantics Comprehension

Ticmirror, NLP enabled for cars

Ticwatch, NLP enabled for consumers

Input Voice Assistant

Voice Touch Dictation

• 97% accuracy for Chinese language• Supports 40+ dialects• Realtime speech2text translation


China is leveraging AI capabilities to build up next gen applications across industriesAI + Education

AI + Surveillance

AI + Medical

AI + Security

AI + Customer Service

AI + Finance

Emerging AI+ Chinese Startups Across Industry Verticals


Government Support Rising Innovation

Towards a Technology and Innovation Driven China

GOVERNMENT SUPPORT

China State Council 13th

five-year plan to accelerate dev. of high tech industry by 2020

BUDDING TALENT

By 2030, 27% of all 25-34 years with a degree will be in China, and more overseas talents will return

RISING INNOVATION

Since 2014, China has outstripped both US and Japan in number of global patent filing at 34% market share (wipo.int)

LARGE DATA SET

China is expected to have 772Mn internet users, generating 15~20% of global online data by 2020

HUGE MARKET

China has a population of 1.4Bn, 30Mn enterprises, 290Mn vehicles, and 1.1Bn smart phones


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EXCITING JOURNEY AHEAD ..