Sinopec Sales to Cooperate with Tencent to Diversify Service and Marketing Channels
Sinopec Sales Co., Ltd. (the “Sales Company”), a wholly-owned subsidiary of Sinopec, signed a business cooperation framework agreement with Tencent, Inc. (“Tencent”), to establish a strategic long-term partnership to provide consumers with new integrated lifestyle services through multiple channels and further address the needs of the general public.
Under the terms of the agreement, Sinopec EasyJoy Sales Co. (“EasyJoy”), a subsidiary of Sinopec Sales Co., Ltd, will cooperate with Tencent to explore business development, mobile payment, brand promotion, online to offline, map navigation, customer loyalty management, big data application and cross marketing opportunities. The two parties will utilize Tencent’s social platforms such as QQ Instant Messenger (“QQ IM”) and WeChat to develop innovative online-offline services, enhance Sinopec and EasyJoy’s brand awareness. The partnership will also improve Sinopec Sales’ points system and customer loyalty management with the help of big data technology to increase synergies between Sinopec’s oil and non-oil services.
Fu Chengyu, Chairman of Sinopec, noted in the Company’s interim earnings conference, “The non-oil business of Sinopec Sales has huge potential. Sinopec aims to provide comprehensive and integrated services in the future. While still continuing to develop its refined oil product business, Sinopec Sales will leverage its existing platforms and expand into new businesses including convenience retailing, car services, O2O, financial services, environmental protection and advertising.
EasyJoy’s network of 23,000 convenience stores across China generated RMB13.3 billion in revenue in 2013 and has forecast that the number will increase to RMB15 billion in 2014.
Sinopec Sales Co., Ltd. has the most comprehensive refined oil sales network and storage and transportation facilities in China. It is the largest provider of refined oil in terms of number of gas stations in China and the second largest in the world. As of the end of 2013, the Sales Company has over 30,000 self-operated gas stations and 80 million gas-card holders. It took over 60% share of China’s refined oil market in 2013.
Tencent, Inc. is one of China’s largest and most used Internet service portals. Tencent’s leading Internet platforms – QQ IM, WeChat, QQ.com, QQ Games, and other services – have brought together China’s largest Internet community, with the QQ IM and WeChat boasting 800 million and 400 million user accounts, respectively. Tencent Holdings Limited (SEHK 700) is listed on the main board of the Hong Kong Stock Exchange.