DJI denies rumored purchase of competitor in UAV industry: report

Updated 2017-08-04 11:59:28 Global Times

Chinese drone developer Dajiang Innovations Science and Technology Co, better known as DJI, has denied rumors about the purchase of rival ZEROTECH.

The rumors demonstrate that the drone market is slowing, media reports said on Thursday.

DJI, with a market share of 52 percent as of the third quarter of 2016, will not buy ZEROTECH, a Beijing-based developer of smart drones and smart unmanned aerial vehicles (UAVs), which had a 24.3 percent market share, domestic news site thepaper.cn reported.

If the deal did occur, DJI would account for 76.3 percent of China's drone market, which might spark antitrust investigations, the report noted.

There is zero possibility that ZEROTECH will be purchased by DJI, Yang Jianjun, the company's CEO, was quoted as saying in the media report.

New shareholders in ZEROTECH include Samsung Venture Investment Corp, a venture capital firm within the Samsung Group that focuses on early-stage start-ups. ZEROTECH has not disclosed the amount of this round of financing.

ZEROTECH has been facing managerial difficulties in recent years. In December 2016, it said that it would lay off 25 percent of the total staff.

Market speculation about a takeover reflects the sluggish drone sector, which has slowed markedly since the second half of 2016. Another domestic drone developer Ehang laid off 70 employees while foreign counterpart Lily has been shut down.

Recently, tightened regulation of UAVs has also affected the drone market, and DJI has said that its revenues fell slightly.

However, small drones are expected to become a major growth engine in the future, especially as they are customized. Subsidies may also play a major role.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58December 19 2017 04:31:13

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16December 19 2017 04:31:13

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18December 19 2017 04:31:13

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords