LDK Loses ¥1.2b in 1H
LDK Solar Co (NYSE: LDK), a leading Chinese photovoltaic manufacturer, posted a ¥1.2 billion loss for 1H 2012 as industry-wide overcapacity deflated prices while operating expenses rose. The heavily leveraged company reported an 80% debt to asset ratio, putting it on the brink of bankruptcy. There were reports that LDK would be nationalized after government cash injections but company's spokesman Li Longji denied that.
7 Days Q2 Profit Rises 23%
7 Days Group Holdings Ltd (NYSE: SVN), a leading Chinese economy hotel chain, posted ¥633 million in revenues and ¥55.6 million in net profits for Q2 2012, up 27.3% and 23.3% respectively from Q2 2011. The hotelier was operating 1,132 hotels with 112,631 rooms across 168 cities and had 43.8 million members as of the end of June.
51job Q2 Profit Rises 37%
51job Inc (Nasdaq: JOBS), China's biggest online human resource service provider, posted ¥360.4 million in revenues and ¥114.6 million in net profits for Q2 2012, up 8.4% and 37.3% respectively from Q2 2011. The strong growth in earnings was attributed to more employers going digital to hire people. The figures were unaudited.
Ping An Sets Up ¥1b Innovation Fund
Ping An Insurance Group Co of China (SHA: 601318, HKG: 2318), the nation's second biggest insurer, founded the Ping An Innovation Center in late July, raising a ¥1 billion fund that will invest in the Internet, mobile, data and audio recognition technologies to strengthen its role in the insurance and banking sector, James Chen, who created the fund, told Dow Jones Newswires. The Ping An Innovation Center is the first fund established by a major financial institution in China. The fund will also keep an eye on the healthcare industry for possible acquisitions, Chen added.
State Construction to Offer ¥3b Bonds
China State Construction Engineering Co (SHA: 601668) said it will issue ¥3 billion worth of one-year debenture bonds on August 17. The money will be used to replenish operating capital at its subsidiary. The company posted ¥104.34 billion in revenues and ¥2.56 billion in net profits for Q1 2012.
Industrial Bank 1H Profit Up 40%
Industrial Bank Co (SHA: 601166) said its net profit climbed 39.8% year on year to ¥17.1 billion in 1H 2012 as stable growths were seen in all its businesses. The lender's capital adequacy ratio stood at 11.25% as of the end of June, up 0.21 percentage points from six month earlier.
$1 = ¥6.36