China Eastern's Liu Urges Govt Injection into Airlines
China's top three carriers, Southern Airlines Ltd (NYSE: ZNH, SHA: 600029, HKG: 1055), China Eastern Airlines Corp (NYSE: CEA, SHA: 600115, HKG: 0670) and Air China Ltd (SHA: 601111, HKG: 0753), paid a combined ¥15 billion in taxes in 2011, an amount almost equal to their combined gross profits, China Eastern Airlines Corp chairman Liu Shaoyong said on the sidelines of the ongoing annual parliamentary sessions. He said the tax burdens have undermined the three airlines' global competitiveness and called on the government to inject $18 billion to $20 billion into them to shore up their competitiveness.
China Mobile May Take a Stake in Cable TV Operator
China Mobile Ltd (NYSE: CHL, HKG: 0941) plans to purchase a stake in China Radio and Television Network, a national cable TV operator, according to a well-informed person. Senior China Mobile executives have been in talks with China Radio and Television Network's management since last year, the source said. An employee of China Mobile's Guangzhou subsidiary revealed that the two companies have already reached a three-year framework deal about cooperation in cable broadband services.
Huaneng Power to Invest ¥45b in Xinjiang
China Huaneng Group, the parent of Huaneng Power International Inc (NYSE: HNP, SHA: 600011, HKG: 0902), plans to invest ¥45 billion in Xinjiang boosting local power generation capacity to 5,000MW, local annual coal output to 30 million tons and local annual coal gas output to four billion m3 by the end of 2015, Huaneng Power International Inc chairman Cao Peixi said on the sidelines of the ongoing annual parliamentary sessions.
Expansion Eats into Hanting's Q4 Profit
China Lodging Group Ltd (NASDAQ: HTHT), a budget hotel operator commonly known as Hanting Inns, posted ¥689.9 million in revenues and ¥30.3 million in net profits for Q4 2011, up 44.2% and down 13.2% year on year respectively. Fees incurred from rapid expansion were blamed for the decline in earnings.
Sinopec-ENN's China Gas Deal in Antitrust Review
Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386) and ENN Energy Holdings Ltd (HKG: 2688) said their joint takeover bid of China Gas Holdings Ltd (HKG: 0384) is currently under antitrust review by the Ministry of Commerce. ENN Energy's chairman denied that the company would raise its offer price. The two prospective buyers offered a total of $2.15 billion in December targeting China Gas's extensive network nationwide.
Yanhua Smartech, Honeywell Form Partnership
Shanghai Yanhua Smartech Co (SHE: 002178), which is engaged in the intelligent architecture industry, said it has signed a memorandum of understanding with Shanghai Shengwei Electronics Technologies Ltd, a surveillance camera maker jointly founded by Honeywell International Inc (NYSE: HON). The deal involves the two sides co-developing and marketing security products.
Wuhan Steel to Invest in Farming
Wuhan Iron & Steel Co (SHA: 600005), China's fourth largest steelmaker, plans to invest ¥39 billion raising pigs and planting vegetables, general manager Deng Qilin said, highlighting that a kilogram of rebar is now worth just a quarter kilogram of pork. The steelmaker reaped over 60% of its earnings from non-steel businesses last year. Deng has been blasted for being shortsighted amid tough times and using the government's money to compete with privately-owned businesses, and has been urged to use the money to upgrade steel technology.
Tencent, Kingsoft Reportedly in Partnership for Gaming
Tencent Holdings Ltd (HKG: 0700), one of China's largest internet companies, and Kingsoft Corp (HKG: 3888), a leading Chinese application developer, will cooperate in the gaming business, people familiar with matter said. Kingsoft will be developing games and Tencent operating them, the source added. Tencent is said to be in corporate restructuring, including its gaming division.
Faw 2011 Net Profit Slips 88%
Faw Car Co (SHE: 000800), the subsidiary of Faw, one of China's biggest automakers, posted ¥32.65 billion in revenues and ¥217 million in net profits for 2011, down 12.5% and 88.3% respectively from the year before. The company blamed the scrapped policies aimed at spurring sales, rising oil prices and fiercer competition for the slump in earnings. The figures were unaudited.
Brokerages Profit ¥1.8b in Feb
China's 18 listed securities brokerages posted ¥4.54 billion in revenues and ¥1.77 billion in net profits in February, up 54% and 177% from the previous month as the stock market rallied after heavy losses last year.
$1 = ¥6.32