China Frontier Tech Trends 2017 D.LIVE ASIA Presentation by: Jenny Lee Managing Partner GGV Capital
13 th 5 Year Plan Puts Internet, AI, Big data as Priorities China sets aggressive targets to become an innovation driven country by 2020 Source: China Gov t 13 th 5 year plan, 2017 China Gov t work report, GGV research GGV CONFIDENTIAL Slide 2
Frontier Tech Trends in China Smart Transportation Robotics Innovation Age of Intelligence Smart, Green & Autonomous Human Machine Interaction Human Machine Integration GGV CONFIDENTIAL Slide 3
Chinese Government Highly Motivated Greener, smarter transportation will elevate pressure Environmental Pressure Natural Resource Constraints Consumer Upgrade Source: China 13 th 5-year plan, National Bureau of Statistics of China, GGV research GGV CONFIDENTIAL Slide 4
Chinese Ambitions for Smart Transportation Total Government Pledged Investment $16 Billion Policy Support Free License Plates 20-60K RMB Subsidy/Vehicle 2020 Targets 5M EV Car Lots 3.1K Charging Stations 500K Charging Piles Notes: 2014-2020 pledged amount Source: www.gov.cn, GGV research GGV CONFIDENTIAL Slide 5
2017 Chinese EV Market Statistics New EV ownership exceeds 1 million units in 2016, expected to exceed 5 million units in 2020 2016 Q1 2017 Consumer (Units) YOY (Units) YOY Full EV 263K 73% 64K 67% Hybrid 81K 30% 14K -32% Total 344K 60% 78K 31% Source: auto.sohu.com, www.chinaev.net, ResearchInChina: 2016-2020 China EV report GGV CONFIDENTIAL Slide 6
Local OEMs Transitioning to Smart, Green & Autonomous BYD GEELY BAIC SAIC JAC Source: Company Website, GGV research GGV CONFIDENTIAL Slide 7
Emerging EV Startups for Different Consumer Needs Including the trending bike sharing wave hitting all China cities BIKE SHARING NINEBOT NIU CHEHEJIA NEXTEV LETV FARADAY Source: Company Website, GGV research GGV CONFIDENTIAL Slide 8
Move to Autonomous; Startups with Chinese Founders.. Raised $5.5Bn for Frontier Tech and Globalization Established Apollo Project, an Open Source Ecosystem on Self-Driving AI + Self-driving R&D Set up Silicon Valley AI Lab Baidu WuZhen Fleet Demo Baidu L4 in Beijing Source: finance.sina.com, it.sohu.com GGV research GGV CONFIDENTIAL Slide 9
Chinese Robotics Market Set to Grow Chinese Robotics Market ($Bn) In 2016, China is about 30% of global markets share, US about 14%, by shipment Source: www.robot-china.com, iresearch, GGV research GGV CONFIDENTIAL Slide 10
Chinese Targets for the Robotics Industry 2015 2020 Robotics R&D Investment by Revenue IP per 100Mn revenue Units of Local Brand Production Sales of Consumer/Service Robots 0.95% 0.44 n/a $1.2Bn 1.26% 0.70 100K $4.3Bn Source: www.miit.gov.cn, China Smart Manufacturing Plan 2025, GGV research GGV CONFIDENTIAL Slide 11
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 Average Robot Density in 2016 Unit per 10K employees Global Average at 69 Source: IFR, China Robotics Industry Development Plan, Company Website, GGV research GGV CONFIDENTIAL Slide 12
Examples of Chinese Industrial Robots Manufacturers Industrial Production Warehousing/Logistics Warehousing (AMR)/ Picking SINSUN E-Deodar Sorting Systems Source: Company Website, GGV research GGV CONFIDENTIAL Slide 13
Examples of Chinese Service Robots Startups Restaurants KEENON YUNJI Hotels Medical Public Security NUDT MICROHAND A TINAVI Source: Company Websites, GGV research GGV CONFIDENTIAL Slide 14
Examples of Chinese Consumer Robots Startups From household chores, entertainment, Devices personal for the assistant Home to education robots Source: Company Websites, GGV research GGV CONFIDENTIAL Slide 15
Next Priority for Chinese Development: AI+ Chinese government positions AI as the next priority for development 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
AI Infrastructure, Talent, Data: China is Ready Computing Infrastructure China expected to generate 15% of global data in 2017, growing to over 21% in 2020 Algorithm Data 21% 15% Source: World Bank, CNNIC, US Office of Science and Technology Policy, GGV research GGV CONFIDENTIAL Slide 17
Well Funded Chinese Startups in Computer Vision Facial and Image Recognition API for Different Applications Raised ~ $120M in 2017 Raised ~ $100M in 2017 Source: Company Websites, GGV research GGV CONFIDENTIAL Slide 18
Chinese Startups in Natural Language Processing Speech Recognition Semantics Comprehension Input Voice Assistant Voice Touch Dictation Ticwatch, NLP enabled for consumers 97% accuracy for Chinese language Supports 40+ dialects Realtime speech2text translation Ticmirror, NLP enabled for cars Source: Company Websites, GGV research GGV CONFIDENTIAL Slide 19
Emerging AI+ Chinese Startups Across Industry Verticals China is leveraging AI + Education AI capabilities to build up next gen applications AI + Security across industries AI + Medical AI + Finance AI + Surveillance AI + Customer Service Source: Company Websites, GGV research GGV CONFIDENTIAL Slide 20
Towards a Technology and Innovation Driven China GOVERNMENT SUPPORT China State Council 13 th fiveyear 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 GGV CONFIDENTIAL Slide 21
EXCITING JOURNEY AHEAD.. Jlee@ggvc.com