Net Advertising Group Co., Ltd. is set to acquire two Chinese subsidiaries to expand its presence in the rapidly growing e-commerce market.

Target Information

The target of this acquisition is Net Advertising Group Co., Ltd. (Ticker: 9235), a leading player in the internet advertising sector in Japan. The company has announced plans to acquire two subsidiaries in China, enhancing its operations in the fast-growing e-commerce market. This strategic move aligns with the company's objective to expand its live commerce presence and achieve robust growth in the cross-border e-commerce space.

The two subsidiaries being acquired are Aitwei Advertising (Shanghai) Co., Ltd. and ADWAYS ASIA HOLDINGS Limited, both of which have established networks in the Chinese market. Aitwei Advertising has reported annual sales of 459 million JPY and an operating loss of 79 million JPY, while ADWAYS ASIA has annual sales of 30.9 million JPY with an operating loss of 73 million JPY. These figures illustrate the current challenges these firms face, but also their potential within China's vast e-commerce landscape.

Industry Overview in China

China boasts the largest e-commerce market globally, which presents significant opportunities for growth in various sectors, including advertising and live commerce. The rapid ado