China Mobile Earnings Beat Forecasts
China Mobile Ltd (NYSE: CHL, HKG: 0941), the world's biggest wireless carrier by subscribers, posted net profit up 1.5% year on year to 63.1 billion yuan for 1H 2013, slightly beating expectations. Revenue was up 10.4% to 303.1 billion yuan. China Mobile is the only one of the 3 Chinese carriers that has not sealed an iPhone deal as its 3G network is not compatible with existing iPhone chips. Talks with Apple Inc (Nasdaq: AAPL) are underway and both sides are eager to reach an agreement on the iPhone, China Mobile chairman Xi Guohua said, declining to reveal details. China Mobile's capital expenditure was 57 billion yuan in 1H 2013, less than 1/3 of its annual budget of 190.2 billion yuan, China Mobile vice president Liu Aili said, adding that the majority of the money will go to the construction of the 4G network in 2H 2013.
Chinalco to Buy Peruvian Mine from Glencore
Chinalco Mining Corp International (HKG: 3668) is close to hiring Goldman Sachs Group Inc (NYSE: GS) and Morgan Stanley (NYSE: MS) to advise it on buying the Peruvian copper mine from Glencore Xstrata Plc, the Wall Street Journal reported, citing people with knowledge of the matter. The deal could be worth about $5 billion, according to the sources. Goldman Sachs and Morgan Stanley declined to comment. Baar, Switzerland-based Glencore said it hired BMO Capital Markets Ltd and Credit Suisse Group AG (NYSE: CS) as financial advisers. It also said the Peruvian copper mine known as Las Bambas will cost $5.2 billion to develop and that it is scheduled to produce 400,000 tons of copper annually from 2015. The people with knowledge of the deal said Chinalco Mining, which had a debt-to-equity ratio of 77% at the end of June 2013, might seek bank loans should it go ahead with a bid. Chinalco Mining is the listed copper unit of Aluminum Corp of China Ltd (NYSE: ACH, HKG: 2600, SHA: 601600).
Dangdang's Loss Keeps Shrinking
E Commerce China Dangdang Inc (NYSE: DANG), a Chinese B2C e-tailer that operates Dangdang.com, posted $243.3 million in revenues and $10.4 million in net losses for Q2 2013. Revenue was up 24% from a year earlier, and the loss almost halved from a year earlier. It was the 5th straight quarter of contracting loss as sales rose stably on more customers. Dangdang reported 7.6 million active users as of the end of June 2013, including 2.4 million added in the past quarter.
Lenovo Earnings Top Expectations
Lenovo Group Ltd (HKG: 0992), a Chinese computer and phone maker, posted $8.8 billion in revenues and $174 million in net profits for Q2 2013, up 10% and 23% respectively from a year earlier. The company sold 12.6 million personal computers in Q2 2013, making it the world's number one personal computer maker with a 16.7% global market share. Sales of its mobile devices like smartphones and tablets more than doubled from a year earlier to $1.2 billion, which represented 14% of total revenue.
Gome Steps Up Expansion in Smaller Cities
Gome Electrical Appliances Holding Ltd (HKG: 0493), China's second largest consumer electronics retailer by revenue, said it plans to have 80% of its new openings in 2013 take place in tier-2 and tier-3 cities. Revenue from these cities have grown 40% annually in recent years and currently account for 20-30% of Gome's total revenue. Half of revenue and half of revenue growth in China's home appliances sales are expected to stem from tier-2 and tier-3 cities in the next 5 years.
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