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Equity Investment Buoys Sina Q2 Profit
Sina Corp (Nasdaq: SINA), a leading Chinese portal and the operator of the nation's most popular Weibo microblogging service, said its Q2 net profit rocketed 232% year on year to $33.2 million fueled by a $32.8 million net return from equity investments in China Real Estate Information Corp (Nasdaq: CRIC) and E-House China Holdings Ltd (NYSE: EJ), two real estate service providers. Sina did not elaborate on financial details on its promising Weibo division, but analysts say its spending on the business would not see significant increases, which had been seen over the past two years, as it has already developed advantages over competitors.
Chalco May Call Off SouthGobi Bid
Aluminum Corp of China Ltd (NYSE: ACH, SHA: 601600, HKG: 2600), the nation's largest aluminum producer, also known as Chalco, is likely to withdraw from its $920 million offer for a 60% stake in Canada-based, Mongolia-focused SouthGobi Resources Ltd (HKG: 1878) after the Mongolian government toughened laws on foreign ownership in resources firms, SouthGobi CEO Alex Molyneux said. Molyneux added that the recent actions taken by the Mongolian government were exactly aimed at scuppering the deal, whose finalization has been postponed for 60 days, and that the deal was probably to fail at the end of day. SouthGobi produces coking and thermal coals.
China Mobile 1H Profit Misses Expectation
China Mobile Ltd (NYSE: CHL, HKG: 0941) said its 1H net profit grew just 1.5% year on year to ¥62.2 billion as stiffer competition and the spread of smartphones hit revenue from 3G mobile services. The figures were worse than the market had expected. The company's revenue was up 6.6% to ¥266.63 billion between January and July.
NetEase Q2 Profit Up 13%
NetEase.com Inc (Nasdaq: NTES), a Chinese web portal and online game operator, posted ¥2 billion in revenues and ¥875 million in net profits for Q2 2012, up 11% and 13% respectively from Q2 2011. However, net profit was down 7% compared to a quarter earlier due largely to a 5% decrease in online gaming revenues after less time spent by players on World of Warcraft.
Tencent Q2 Profit Rises 33%
Tencent Holdings Ltd (HKG: 0700), one of China's largest internet companies, posted ¥10.53 billion in revenues and ¥3.11 billion in net profits for Q2 2012, up 56.2% and 32.7% respectively from Q2 2011. The strong figures were credited to its social networking platforms for both computers and cellphones. The number of users of its QQ instant messaging service, the most popular in China, increased 11.6% to 783.6 million.
Lenovo Quarterly Profit Up 30%
Lenovo Group Ltd (HKG: 0992), China's biggest personal computer maker, posted $8 billion in revenues and $141 million in net profits for its fiscal quarter ending June 30 2012, up 35% and 30% year on year respectively. A 24.4% growth in personal computer sales in China (against a 2% decrease in global sales during the same period) was attributed to the increase in profit.
Tsingtao Beer 1H Profit Up 1.8%
Tsingtao Brewery Co (SHA: 600600, HKG: 0168), China's second largest brewer by capacity, posted ¥13.41 billion in revenues and ¥1.01 billion in net profits for 1H 2012, up 11.2% and 1.8% respectively from 1H 2011 thanks to strong beer sales.
$1 = ¥6.38
@2011 China Economy @ The China Perspective.
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