Sinopec 1H Earnings Climb 24% as Refining Turns Around from Loss
Sinopec Corp (NYSE: SNP, HKG: 0386, SHA: 600028), Asia's biggest refiner, posted 1.41 trillion yuan in revenues and 30.28 billion yuan in net profits for 1H 2013, up 5% and 23.6% respectively from a year earlier. A profitable refining business, which posted a 210 million yuan profit versus a loss a year earlier due to strong sales and pricing deregulation, was credited for the jump in earnings. Sinopec processed 115 million tons of crude oil into 69.75 million tons of refined oil in 1H 2013, up 5.2% and 5.8% respectively from a year earlier. It produced 153.66 million barrels of crude oil and 324.14 billion cubic feet of natural gas in 1H 2013, up 1.1% and 11.8% respectively from a year earlier.
Jiangxi Copper Bids for Glencore's Peruvian Mine
Jiangxi Copper Co (HKG: 0358, SHA: 600362), China's biggest copper producer and smelter, has joined bidding for the purchase of a $5 billion Peruvian copper mine from Baar, Switzerland-based Glencore Xstrata Plc. The Peruvian copper mine known as Las Bambas is estimated to cost $5.2 billion to develop and to produce 400,000 tons of copper annually from 2015. Earlier this month, Chinalco Mining Corp International (HKG: 3668) was reportedly planning to hire Goldman Sachs Group Inc (NYSE: GS) and Morgan Stanley (NYSE: MS) to advise it on the deal. Chinalco Mining is the listed copper unit of Aluminum Corp of China Ltd (NYSE: ACH, HKG: 2600, SHA: 601600). Market watchers say it is likely that Jiangxi Copper, Chinalco Mining and Minmetals Resources Ltd (HKG: 1208) make a joint bid for Las Bambas. Jiangxi Copper already has an investment in Peru: a 40% stake in the Northern Peru mine that is expected to begin production by the end of 2014 at the earliest.
Online Ads Drive Up Qihoo Q2 Earnings by 372%
Qihoo 360 Technology Co (NYSE: QIHU), the developer of China's most popular antivirus, posted $152 million in revenues and $33 million in net profits for Q2 2013, up 108% and 372% respectively from a year earlier. The company attributed the strong growth to rising online ad revenues on more customers and Internet value-added services as well as better-than-expected performance of its search engine So.com. The number of monthly active users of its 360 antivirus reached 461 million, and the number of monthly active users of its 360 Browser was 330 million, with a market penetration rate of 69%. Qihoo 360 expected its revenue to grow 115% and 118% year on year to between $181 million and $183 million in Q3 2013.
Baidu Takes Stake in Nuomi
Baidu.com Inc (Nasdaq: BIDU), China's most used search engine, said it will buy 59% of Chinese deal-of-the-day site Nuomi.comm after more than 2 months of talks. Nuomi is currently owned by Renren Inc (NYSE: RENN), the operator of a namesake social networking site in China. Nuomi will solidify Baidu's location based services and mapping services, said Baidu chief financial officer Jennifer Li. Deutsche Bank expected Nuomi's gross merchandise value to top $480 million this year and expected it to post a $46 million loss.
CCB 1H Earnings Rise 13%
China Construction Bank Corp (HKG: 0939, SHA: 601939) posted 251.4 billion yuan in revenues and 119.96 billion yuan in net profits for 1H 2013, up 10.8% and 12.7% respectively from a year earlier. Higher interest income, which was up 10.6% year on year to 187.66 billion yuan, and higher income fees and commissions, which were up 12.8% year on year to 55.52 billion, pushed up revenue and profits. Outstanding nonperforming loans increased by 5.69 billion yuan to 80.31 billion yuan as of the end of June 2013, with the nonperforming loan ratio remaining unchanged at 0.99% compared with a year earlier.
Bad Assets Spinoff Boosts Baosteel Earnings
Baoshan Iron & steel Co (SHA: 600019), China's most profitable steel mill, posted 96.1 billion yuan in revenues and 3.7 billion yuan in net profits for 1H 2013, down 2% and up 377% respectively from a year earlier. The fall in revenue was due to a 7% decrease in shipments despite a 5% increase in average selling price. The surge in profit was attributable to the asset restructuring starting to pay off. Taking out the gains from selling unprofitable assets last year, Baosteel's earnings would have risen only 35% in 1H 2013, with a gross margin of 8%.
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