Biz scene

MARKET

HK share sale

Honghua Group Ltd, the world's second largest maker of onshore oil rigs, plans to raise as much as HK$3.75 billion in a Hong Kong initial public offering of about 833.4 million shares.

About 750 million shares will be sold in an international offering and 83.3 million in a public offering priced between HK$3.16 to HK$4.5 per share, the Chengdu-based company said in a statement to the Hong Kong stock exchange yesterday.

Stock options

Jiangxi Copper Co, China's second largest producer of the metal, granted stock options to seven senior executives to spur performance.

The metals producer awarded 509,900 stock options, equal to 0.0168 percent of the outstanding shares, to Chairman Li Yihuang and six other executives, the Guixi, Jiangxi province-based company said yesterday in a statement.

Fuyao earnings

Fuyao Group Glass Industries Co, China's biggest windshield maker, boosted 2007 profit 49 percent on increased demand in the world's second largest auto market. The company plans to raise 3.1 billion yuan to boost production.

Net income rose to 917 million yuan, or 0.92 yuan a share, from an adjusted 614 million yuan, or 0.61 yuan, a year earlier, the company, based in Fujian province, said in a Shanghai Stock Exchange statement yesterday. Sales rose 33 percent to 5.2 billion yuan.

The company plans to give investors 10 bonus shares and a 5 yuan cash dividend for every 10 shares they hold, it said.

BIZ MOVES

Acting CFO

The9 Ltd, a leading online game operator in China, said it will appoint He Xudong (left), vice-president of the company since 2000, to serve as acting chief financial officer, effective March 1.

During his time with the company, He has held a number of positions including financial controller and chief operating officer. Prior to joining the company, he served with PricewaterhouseCoopers in China as senior consultant and auditor.

New GM steps in

Boston-based athletic footwear manufacturer New Balance said Michael Wellman has been named general manager for China. In this position, Wellman will be responsible for all aspects of the company's China operations.

Wellman has more than 16 years of experience working in Asia, specifically in the sporting goods industry, including his most recent role as managing director for Adidas Taiwan Ltd.

Brand Union hire

The Brand Union China recently appointed Edwin Ma as managing director to strengthen its brand consulting business in China.

Ma started his career in advertising and has more than 22 years' experience in advertising, marketing and brand strategy. He has worked for Nestle, Olympus and Nippon Paint and has solid experience developing international brands in China. Ma also assisted the overseas expansion of local brands such as Netease.com and China Eastern Airlines.

GRAPEVINE

Environmental snag

China Petroleum & Chemical Corp and Kuwait Petroleum Corp's $5 billion oil refinery and chemical project in southern China has met opposition because of environmental concerns, the Economic Observer said.

The project, approved by the government in December, hasn't received environmental assessment and shouldn't be allowed to start, the newspaper said, citing Liu Yiling, a Guangzhou city lawmaker. Liu is among 14 city legislators that submitted a proposal for the project to be delayed, the newspaper said.

The Nansha plant would worsen air pollution problems in Guangzhou, Liu said. It will have adverse impact on the air quality of cities including Hong Kong and Shenzhen, she said.

BIZ UNUSUAL

Carbon neutral hotel

China's first carbon neutral hotel has been launched in Shanghai. The hotel uses recycled materials and renewable power sources such as wind, solar, biofuels, and hydro.

The hotel will calculate the carbon footprint of energy consumed, including staff commutes, food and beverage deliveries and the energy used by each guest, and then neutralize carbon emissions by investing in "green" energy development and emissions reduction projects in China.

Hotel guests can also purchase carbon credits to offset the environmental impact of their air travel.

Funky threads

Beijing University graduate Kong Lingbo says his musical T-shirts have earned him more than 100,000 yuan in just six months.

The T-shirts emit musical beats and are popular with music fans, concert organizers and pubs. Kong's clients include firms like Huayi Brothers Group, one of China's most influential media companies, and Universal Music Group.

Kong sells the T-shirts for 100 yuan a pop and customers are invited to provide their own designs.

No ordinary cuppa

Several exclusive teahouses have opened in Hangzhou recently, where the price of a pot of tea ranges from several hundred yuan to several thousand.

The most expensive tea on offer is usually pu'er, a broad-leafed tea from Yunnan province. Top quality pu'er is sold for around 9,000 yuan per pot.

Tea drinkers can enjoy professional tea-brewing services in a plush environment. Tea cocktails - a mixture of tea and wine - are also available at the upmarket teahouses.

LOCAL

Taiwan backing

There were 4,551 Taiwan-backed companies in Shenzhen by the end of 2007 with a combined investment of $5.7 billion, the Shenzhen bureau of trade and industry said.

Over 90 percent of capital from Taiwan province is invested in the manufacturing industry, while the rest goes to agriculture, tourism, entertainment and catering. Main products include computers and appliances, consumer electronics, fine chemicals and medical equipments.

Wind farm

A total of 90 billion yuan will be invested by 2020 in a 4-gigawatt wind farm in Dongtai city, Jiangsu province, on China's east coast, according to a recent agreement between Guohua Energy Investment Corp and the government of Dongtai.

First-phase construction of the wind farm started in 2006, with a planned annual electric generating capacity of 420 million kwh. Under the new deal, the capacity will be expanded to 13 billion kwh by 2020.

Power projects

Six 500-KV electric transmission and distribution projects in the Inner Mongolia autonomous region have been approved by the National Development and Reform Commission.

Two projects in eastern Hohhot and northern Baotou will increase the power grid's transmission capacity in Inner Mongolia from 200 million KW to 400 million KW. The other four projects will help ease the power shortage in Hohhot, Ordos and Ulanqab.

(China Daily 02/26/2008 page15)