China Corporate News: Sinopec, Saudi Oil to Build Joint Refinery; Baosteel Earnings Plunge 43%

Sinopec, Saudi Oil to Build Joint Refinery
China Petrochemical Corporation, the nation's biggest refiner and the parent of Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386), signed a deal with Saudi Arabian Oil Co to build a refinery in the Middle Eastern country. Sinopec will hold a 37.5% stake in the joint project known as Yasref, which is expected to process 400,000 barrels of crude oil per day once operational by 2014.

Citic Securities Profit Rises 11% Despite Falling Revenue
Citic Securities Co (SHA: 600030), China's biggest brokerage by assets, said its net profit rose 11% to ¥12.6 billion in 2011 despite its revenue dropping 10% to ¥25 billion. The figures were unaudited. Analysts say the earnings had probably been lifted by Citic's sale of 51% of China Asset Management Co in 2H 2011, fetching ¥8.34 billion.

Huadian Power's Generation Up 11%
Huadian Power International Co (SHA: 600027, HKG: 1071), China's third largest power producer by capacity, said it generated 150.76 billion kW hours of electricity in 2011, up 16% from the year before.

Baosteel Earnings Plunge 43%
Baoshan Iron & Steel Co (SHA: 600019), China's most profitable steelmaker, posted ¥223.12 billion in revenues and ¥7.3 billion in net profits in 2011, up 10.2% and down 43% respectively from the year before. It did not give reasons for the decrease in net profits. The figures were unaudited. Baosteel is the second biggest mill in China by output.

Sany Becomes China's No1 Excavator Seller
Sany Heavy Industry Co (SHA: 600031), a leading Chinese engineering machine manufacturer, said it sold 20,614 excavators in 2011, capturing the largest market share, of 11.56%, in China, according to figures from the China Construction Machinery Association. The rate was up more than three percentage points from 2010.

Hubei Energy's ¥3b Rights Offer Approved
Hubei Energy Group Co (SHE: 000883) said it has received regulatory approval for its ¥3.11 billion private placement plan to fund a natural gas project and a wind farm in Sichuan province. The company said last week that it expected its net profit to tumble 37.3% to 46% to between ¥560 million and ¥650 million in 2011 because of rising coal prices.

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