Biz Scene

MARKET

Loan agreement

CITIC Resources Holdings Ltd, China's fourth largest oil producer, said it had entered into a $280 million term loan facility agreement with 10 financial institutions.

The loan has a tenure of five years, starting Jan 23, the firm said, and will be applied toward refinancing the existing facility of $150 million as well as corporate funding requirements.

Lenders could require the loan to be repaid if the firm's State-backed parent, CITIC Group, ceases to hold at least 40 percent of the firm's issued share capital.

Coal offering

China Coal Energy Co, the country's second biggest coal miner, said yesterday it could raise as much as 25.67 billion yuan in its initial public offering in Shanghai. That is down from the more than 30 billion yuan for which the company was aiming earlier this month, reflecting the plunge of the mainland and Hong Kong stock markets over the past week, but would still make it one of China's 10 biggest IPOs.

The company set an indicative price range of 16 to 16.83 yuan for its offer of up to 1.525 billion new A shares, or 11.51 percent of its expanded share capital.

Profit up

COSCO Shipping Co said yesterday that its net profit jumped 84 percent last year. The firm also said it was offering 1.05 billion yuan of convertible bonds with detachable warrants. The six-year bonds will carry a coupon of between 0.8 and 1.3 percent.

Net profit climbed to 1.07 billion yuan last year from 583 million yuan in 2006, COSCO Shipping said.

COSCO Shipping said it would use about 370 million yuan of the funds raised by its convertible bond issue to buy four 27,000-ton multipurpose carriers through a Hong Kong subsidiary, and the rest to buy two 50,000-ton vessels.

GRAPEVINE

Share sale obstacle

Ping An Insurance (Group) Co may face obstacles from Chinese regulators in getting a planned share sale approved, International Finance News reported, citing unidentified sources.

The authorities will not approve Ping An's proposal even if the insurer's shareholders give it the nod since regulators are aware of the plan's market impact, the newspaper cited the sources as saying.

Shenzhen-based Ping An announced after Jan 18's market close that it plans to issue a maximum of 1.2 billion new shares to replenish its capital, after investing 1.81 billion euros in Belgium's Fortis.

Fuel oil venture

A China Petrochemical Corp unit and several oil companies have set up a fuel oil venture to manage supplies to independent refiners in Shandong province, Shanghai Securities News said, citing an unnamed source.

The association, set up by Shandong Zhonglian Petrochemical Industry Co, will coordinate the supply of fuel oil and crude oil from China Petrochemical, said the report. Sinopec Group, as China Petrochemical is known, has a 40 percent stake in Shandong Zhonglian.

BIZ UNUSUAL

Ostrich farming

They look just as good in zoos as on the dinner table. Unlike wild ostriches, those raised for the purpose of eating are not legally protected. Raising ostriches can be a good business. A kilogram of ostrich meat sells for 40 yuan. An ostrich also lays 60 to 100 eggs a year, each of which can sell for more than 60 yuan. The fur of an adult ostrich also fetches a profit of about 1,000 yuan.

Ostriches are not difficult to raise either, as long as clean water, proper lighting and disease prevention systems are in place, according to Wang Chao, an ostrich raiser in Shijiazhuang.

Magic rose

A rose that stays fresh for three years without water, soil or fertilizer? A specially processed variety that exhibits such longevity has become the flavor of the month at the flower market in Shanghai. It's French technology that lends it the unusually long life.

Within a month of the flower entering the market, it has become a hit among buyers. "It's a nice gift for the upcoming festival," said Xie Lu, a flower shop owner at Caojiadu flower market.

But the flower, imported from Japan, doesn't come cheap, with each priced at 30 to 50 yuan.

BIZ MOVES

CFO quits

Li Qiaoen, chief financial officer of online gaming company The9, has resigned because of personal reasons, sina.com reported. The resignation will take effect at the end of February.

Li, who joined The9 before the company listed on the NASDAQ in 2004, has made a significant contribution to the company, said Zhao Yurun, public relations director of the company. Zhao also said the company is looking for a replacement.

Board chairman

China Electronics Corporation Holdings Co Ltd appointed Xiong Qunli as its board chairman and non-executive director this week.

Xiong was chairman of China Electronics Corp (CEC), the controlling shareholder of China Electronics Corporation Holdings. He has wide experience in strategic planning, research and corporate management in the IT sector.

Chrysler GM

Yang Lin has been appointed general manager of the sales and marketing department of Chrysler by Beijing Benz-DaimlerChrysler Automotive Co Ltd.

This appointment is aimed at restructuring Beijing Automobile Holdings Company in order to promote sales of Chrysler products.

LOCAL

Green awareness

Tianjin 12315 complaints center recently provided specialized advisory services to spread awareness about organic food, about which there are a lot of misgivings that could help unscrupulous businesspeople take advantage of consumers.

Market hours

Mega shopping centers and markets in Beijing may be asked to change their opening hours during the Olympic Games. The plan, still under discussion, is intended to avoid crowds in peak hours. Regulations on sales promotion will also be published to create a favorable environment for the Games.

(China Daily 01/25/2008 page15)