China Market Pulse: Jiangxi Copper, Shandong Gold, Zijin Mining, SAIC

Jiangxi Copper Co (SHA: 600362, HKG: 0358), China's biggest producer of copper, posted ¥2.2 billion ($1 = ¥6.8) in net profit for 1H 2010, up 73% from the same period last year. The gain was buoyed by copper prices that have risen 85% in the country compared to a year ago. Its earnings were better than expected and 57% of the predicted year round profit for the entire industry.

Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, announced a stock incentive scheme to benefit 248 staff. The perks, which involve 84.7 million shares at ¥14.5 apiece, will ensue if the company's net income doubles within 4 years. The scheme aims to strengthen Suning's leadership over Gome. Suning eclipsed its competitor after posting ¥117 billion in sales last year, ahead of Gome's ¥106.8.

Sinolink Securities Co (SHA: 600109) said its operating revenue grew 41.6% year on year to ¥815 million in 1H 2010, fueled by the underwriting business that contributed ¥402 million, almost an 18-fold increase from a year ago. Net profit was up 46.2% to ¥296 million.

Shandong Gold Ming Co (SHA: 600547), one of China's biggest gold producers, posted ¥572 million in net earnings for 1H 2010, up 17.8% year on year, thanks to integration of mines and a reduction in operating costs. Revenue was up 67.9% to ¥17.4 billion.

Fujian province-based Industrial Bank Co (SHA: 601166) posted ¥8.8 billion in net profit in 1H 2010, up 40.8% from a year earlier. Earnings per share shot up 41.4% to ¥1.64. Total assets put on 28.7% more to ¥1.7 trillion compared to the beginning of the year. Its domestic and foreign currency-denominated deposits have for the first time cracked the ¥1 trillion mark.

Air China (SHA: 601111, HKG: 0753) posted ¥4.7 billion in net profit in 1H 2010, up 60.4% from a year earlier, although fuel cost made up 38.7% of total costs, compared to 32.1% a year earlier. A delay in the fuel surcharge than the rising oil price was blamed for the increase in the ratio.

China Life Insurance Co (NYSE: LFC, SHA: 601628, HKG: 2628), the nation's biggest insurer by market value, has released 1H figures:

Net profit: ¥18 billion, up 7.4% from 1H 2009

Premium income: ¥183.6 billion, up 13.3%, which was slower than industry average

Total assets: ¥1.32 trillion, up 7.7% from 2009 end

Zijin Mining Group Co (SHA: 601899, HKG: 2899), a leading miner and smelter in China, will not be able to resume production of a copper plant in Zijinshan, Fujian province this year following severe acidic waste leakages in July, local environment experts have concluded.

SAIC Motor Corp Ltd (SHA: 600104), China's number one carmaker, has reported rosy 1H figures thanks to a robust auto market:

Sales volume: 1.76 million, up 44.9% from 1H 2009, where passenger cars 1.05 million, up 55.8%; Shanghai GM sold 480,000 units and Shanghai VW 450,000

Revenue: ¥147.6 billion, up 139.7%

Net income: ¥5.9 billion, up 306%; it credits expansionary profits to the launch of new models.