China Corporate News: China Life 1H Profit Dips 26%; Evergrande Eclipses Vanke in 1H Revenue

China Life 1H Profit Dips 26%
China Life Insurance Co (NYSE: LFC, SHA: 601628, HKG: 2628), the nation's biggest insurer by premium income, said its 1H net profit dropped 25.7% year on year to ¥9.64 billion as dire economic conditions and the insurance regulator's policies crimped demand for financial products. Revenue was down 2.9% to ¥225.26 billion. The company said it had captured a leading 32.4% share of China's life insurance market as of the end of June, down 0.9 percentage points from six months earlier.

Evergrande Eclipses Vanke in 1H Revenue
Evergrande Real Estate Group Ltd (HKG: 3333), a major low-end residential property developer, said its 1H revenue grew 15.5% year on year to ¥37.04 billion, overtaking China Vanke Co's (SHE: 000002) ¥35.04 billion to become the nation's number one. Net profit was up 1.1% to ¥5.66 billion. Evergrande sold 5.77 million m2 in floor space between January and June at an average price half that was half of Vanke's, buoying its sales volume and revenue.

Air China 1H Profit Plummets 74%
Air China Ltd (SHA: 601111, HKG: 0753), the nation's third biggest carrier by passenger traffic, said its net profit plunged 73.9% year on year to ¥1.06 billion due largely to rising aviation fuel prices and foreign exchange exposure. Revenue was up 5.4% to ¥47.56 billion between January and June, when its passenger traffic rose 3.3% to 34.74 million people.

Shenhua Launches First Gas Station
China Shenhua Energy Co (SHA: 601088, HKG: 1088), the nation's biggest coal producer, has opened its first gas station in China in Inner Mongolia, pitting itself against the country's three largest oil makers. Shenhua operates a ¥12.6 billion plant in Inner Mongolia that is capable of producing one million tons of coal-made oil per year. Its coal-made oil division profited ¥270 million in 1H 2012.

ZTE to Double Smartphone, Tablet Shipments
ZTE Corp (SHE: 000063, HKG: 0763), China's second largest telecom device maker, said it aims to more than double its shipments of smartphones and tablet computers this year. The company hopes to sell 40 million smartphones and one million tablet computers this year. Over half of its smartphone shipments are expected to end up in China. Vice president Zhang Jun said the company has achieved decent sales of smartphones in developed markets, including Japan, the US, Europe and Australia.

Geely Eyes 80,000 Vehicle Exports in 2012
Geely Automobile Holdings Ltd (HKG: 0175), China's largest privately-owned carmaker, expects to export over 80,000 vehicles this year as its overseas business begins to take off, vice president Zhang Lin said. Emerging markets will continue to be Geely's major export destinations during the next five years, and the company has no plans to tap into Europe and the US. Compared to a slack performance in the domestic market, Geely's exports in 1H 2012 almost doubled from the same time last year to over 40,000 vehicles, which represented 18% of its total shipments, up substantially from 6.7% in 1H 2011.

Scandal-Hit Mengniu Posts 18% Fall in 1H Profit
China Mengniu Dairy Co (HKG: 2319), a leading Chinese dairy maker, said its 1H net profit fell 18.4% year on year to ¥644.7 million as the company was caught in a spate of contamination scandals. Revenue was down 1.2% to ¥18.36 billion.

Zhongjin Gold 1H Profit Down 3% on Cheaper Copper
Zhongjin Gold Co (SHA: 600489) said its 1H net profit declined 3.1% year on year to ¥824 million as a result of a 20% decrease in international copper prices. Revenue was up 27.3% to ¥16.25 billion. The company produced 11,672kg of gold and 8,657 tons of copper between January and June, up from 10,554kg of gold and down from 8,868 tons of copper respectively in the same period a year ago.

Weak Trade Dents Shanghai Int'l Port Profit
Shanghai International Port Group Co (SHA: 600018), the operator of China's largest port, said its 1H net profit declined 9.6% year on year to ¥2.25 billion as international trade fell due to global economic uncertainties. Revenue was up 29% to ¥13.65 billion. China's exports and imports grew just 9.2% and 8.8% respectively in 1H 2012, well below the paces recorded in the same time a year ago.

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