China Eastern, Qantas Set Up Budget Carrier
China Eastern Airlines Corp (NYSE: CEA, SHA: 600115, HKG: 0670) said it has signed a memorandum of understanding with Jetstar, a budget airline owned by Australia's Qantas Airways Ltd, to establish a 50:50 low-cost carrier based in Hong Kong and focused on the Asia Pacific. Jetstar Hong Kong, with $115 million in registered capital, will start operating in 2013 with three Airbus A320s before its fleet expands to 18 by 2015. Separately, China Eastern, the nation's second largest carrier by passenger traffic, posted ¥83.97 billion in revenues and ¥4.89 billion in net profits for 2011, compared with ¥73.8 billion in revenues and ¥5.38 billion in net profits a year earlier. Slower growth in passenger and cargo traffic and high fuel prices were blamed for the decline in net profit. Its passenger traffic rose 5.9% to 68.73 million people last year. 
Sinopec Profits ¥200m/Day
Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386) posted ¥2.51 trillion in revenues and ¥73.23 billion in net profits in 2011, up 31% and 2% respectively from the year before. The big increase in revenues was attributed to its oil exploration business and the slight increase in earnings to higher oil prices and fuel sales outperforming thinner refining profitability. Its average selling price of crude oil rose 38% to ¥4,621/ton in 2011. Sinopec said that this year it will step up crude oil and natural gas production, process 225 million tons of crude oil, up from 217 million tons last year, and set aside ¥172.9 billion for capital expenditure, up from ¥130.2 billion last year.

Yancoal Reports Worse Performance
Yanzhou Coal Mining Co (NYSE: YZC, SHA: 600188, HKG: 1171), China's fourth biggest coal producer, posted ¥48.77 billion in revenues and ¥8.62 billion in net profits for 2011, down 40% and 4.3% respectively from the year before. It did not elaborate on the declines given that its sales volume was up 29.5% to 64.25 million tons and coal prices gained in China last year.

Datang Power Net Profit Down 23%
Datang International Power Generation Co (SHA: 601991, HKG: 0991), one of the big five electricity producers in China, said its net profit slid 23% to ¥1.97 billion in 2011 as rising coal prices weighed on the benefits from increased demand for electricity. Its revenue was up 19% to ¥72.38 billion. Datang Power generated 203.72 billion kW hours of electricity last year, up 14% from 2010.

Shenhua Energy Sets Moderate Targets
China Shenhua Energy Co (SHA: 601088, HKG: 1088), the nation's biggest coal producer, said it expects to produce 289.9 million tons of coal and sell 410.5 million tons this year, up 2.8% and 6% respectively from 2011. Its capital expenditure will total ¥50 billion in 2012, up from ¥36.2 billion last year. Shenhua Energy posted ¥45.68 billion in revenues for 2011, up 18% from the year before.

Minsheng Bank Eyes $1.5b HK Offerings
China Minsheng Banking Co (SHA: 600016, HKG: 1988), the nation's first non-state lender, plans to raise $1.46 billion by offering additional shares in Hong Kong to ramp up loans to small and midsized firms.

CCB Earnings Up 25.5% Despite Cooled Property Market
China Construction Bank Corp (SHA: 601939, HKG: 0939) said its net profit climbed 25.5% to ¥169.26 billion in 2011 even as the government tightened policies aimed at curbing the property market. The bank predicted this year's loans will grow 12% fueled by the real estate, mining and infrastructure sectors.

BYD 2011 Net Profit Sags 45%
BYD Co (SHE: 002594, HKG: 1211), the Chinese electric car and battery maker backed by Warren Buffett, said its net profit sank 45% to ¥1.38 billion in 2011 amid stiffer competition and reduced auto-purchase incentives. Its revenue edged down 0.8% to ¥46.31 billion last year. BYD also forecast its Q1 2012 net profit to fall 65% to 95%, down from ¥266.74 million a year earlier.

$1 = ¥6.29

You are currently reading words of total words in this article.
To continue reading this article, you must be a subscriber. Log in now..

Finish this article for free.
Related Articles
@2015 China Economy @ China Perspective.
All Right Reserved.
Server SSL Certificate