Baidu Found Guilty of Offering Free Mobile Games
A Chinese court has ordered Baidu Inc (Nasdaq: BIDU), the dominant search engine in China, to pay Dalian Alioth Technology Consulting Co ¥7,000 over a copyright dispute. More than 20 Chinese mobile game developers represented by the Content Provider Union, the industry association, sued Baidu late last year, accusing it of illegally providing free downloads of titles developed by CPU members. The plaintiff said they would appeal the ruling as they consider ¥80,000 to ¥100,000 to be a fair amount of compensation.
Competition Sends Jiayuan Q1 Earnings Plunging
Jiayuan.com International Ltd (Nasdaq: DATE), a leading Chinese matchmaking site, posted $13.9 million in revenues and $831,000 in net profits for Q1 2012, up 27.8% and down 57% respectively from the same quarter a year ago. Stiffer competition was blamed for the decline in earnings. It had 62.6 million registered users as of the end of March, including 6.7 million that joined during Q1 2012.
China Telecom Launches Services in Britain
China Telecom Corp's (NYSE: CHA, HKG: 0728) European unit has launched its CTExcelbiz service in Britain to serve local Chinese, becoming the first Chinese wireless carrier to offer service overseas. Joining forces with Everything Everywhere Ltd, a British mobile network operator, China Telecom will provide bilingual mobile services to Chinese people living, studying, traveling and doing business in Britain.
China Auto Rental Aborts Nasdaq Float
China Auto Rental Holdings Inc, which calls itself the nation's first and largest car rental provider, has decided to withdraw its Nasdaq listing application, without providing an explanation. Last month it postponed the initial stock sale after struggling to attract investors. It is argued that the company called off the IPO because it did not want its shares to be undervalued and feared shares falling below issue price would undermine its future fundraising plans. Insufficient subscription in its shares may have also played a part in the scuttling of the IPO.
Shenhua to Buy Coal Firms from Parent
China Shenhua Energy Co (SHA: 601088, HKG: 1088), the nation's biggest coal producer, said it plans to acquire stakes or assets of China Shenhua Coal Liquefaction and Chemical Co and Shaanxi Shenyan Coal Co from its parent. Shenhua said it just started work on the acquisitions and declined to disclose financial details. Shenhua will use the money raised from its IPO for the deals.
Lenovo Net Profit Jumps 73% in 2011/12
Lenovo Group Ltd (HKG: 0992), China's biggest personal computer maker, posted $29.6 billion in revenues and $473 million in net profits for 2011/12, up 37% and 73% respectively from its previous fiscal year. China contributed 42% of its total revenue, and the developed world's share has for the first time exceeded 10%. Lenovo said its performance in emerging markets as a whole improved but still has not turned around from losses.
State Construction Seals ¥37b Deals
China State Construction Engineering Corp (SHA: 601668) said it recently signed ¥36.72 billion worth contracts. The amount is equivalent to 7.6% of its revenue in 2011.
$1 = ¥6.34