Oil Makers to Benefit from Higher Windfall Tax Threshold
China raised the threshold on a resource tax paid by oil makers, which may stimulate exploration of energy resources in the country. The higher threshold of $55 a barrel, up from $40, is expected to boost the performances of PetroChina Co (NYSE: PTR, SHA: 601857, HKG: 0857) and Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386). Securities analysts estimated the move would save the oil duopolies ¥39.2 billion in 2012. The tax was introduced six years ago.
Sinopec Plans to Double Offshore Output
China Petrochemical Corporation, Asia's largest oil refiner and the parent of Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386), said it plans to more than double its offshore oil production to 50 million tons per year, or one million barrels per day, by the end of 2015. Its subsidiary, Sinopec International Exploration and Production Corp, was operating 47 projects across 23 countries as of the end of 2011 and is expected to produce 27 million tons of oil in 2012.
China Unicom Unveils iPhone 4S Service Packages
China Unicom Ltd (NYSE: CHU, SHA: 600050, HKG: 0762), the nation's only authorized retailer of the iPhone series, said it will start selling the iPhone 4S January 13. The offer will come with a string of packages, including a three-year ¥286/month plan with a free 16GB or 32GB handset and a two-year ¥386/month plan with a free 16GB handset.
LDK Solar Gets $64 Million Funding for US Projects
LDK Solar Co (NYSE: LDK), China's second largest solar panel maker, got $64 million in construction financing facilities from the China Development Bank for American projects, Bloomberg reported. California-based SPI Solar, which is 70% owned by LDK, got $44 million for projects in New Jersey. LDK got $20 million for two projects that SPI will develop and build in California. SPI and LDK agreed in June to provide construction financing for $750 million in solar projects as part of a three-year preferred partnership agreement with New Jersey-based KDC Solar. The pact established a minimum commitment of 150MW with a goal of building 300MW of projects in New Jersey and New York.
Lenovo to Restructure Regional Business
Lenovo Group Ltd (HKG: 0992), China's biggest personal computer maker, said it is seeking to bolster growth by tailoring its strategies for different markets and reorganizing its geographical business units, the Wall Street Journal reported. Lenovo also said it will tap Gianfranco Lanci, a Lenovo consultant who formerly ran rival Acer Inc, to head its new Europe, Middle East and Africa division.
CNR Expects Net Profit to Jump 50%
China CNR Corp (SHA: 601299), one of China's top two railway equipment manufacturers, expected its net profit to jump 50% in 2011, up from ¥1.91 billion a year earlier, thanks to the nation's steady growth of rail projects. CSR Corp (SHA: 601766, HKG: 1766), the country's other top manufacturer, expected the same increase in net profit for the past year. The Chinese government has injected ¥2 billion into each of their parents to buy shares of the listed units, according to Yicai.com.
Gemdale Sales Revenue Rises Despite Fall in Volume
Gemdale Corp (SHA: 600383), a Shenzhen-based property developer, said it sold 2.24 million m2 in floor space valued at ¥30.92 billion in 2011, down 2.4% and up 9.1% respectively from the year before.
Greentown Sells 51% Stake in Wuxi Block
Greentown China Holdings Ltd (HKG: 3900), a property developer based in Hangzhou, Zhejiang province, said it agreed to sell 51% of a land plot to Sunac China Holdings Ltd (HKG: 1918) for ¥51 million. Greentown said it has been seeking a cash-rich partner to develop the 222,617m2 block in Wuxi, Jiangsu province for commercial and residential purposes. Sunac is also a property developer.
Wuhan Steel Cuts Earnings Target
Wuhan Iron & Steel Group Corp, the parent of China's fourth largest steelmaker Wuhan Iron & Steel Co (SHA: 600005), expected its profit for 2012 to decline to ¥3 billion, down from ¥3.5 billion estimated for the past year, due to foreseen iron ore shortages and higher logistical expenses in the next 12 months.
$1 = ¥6.32