Biz scene

GRAPEVINE

Property IPO

Chinese property developer Evergrande Real Estate Group Ltd plans to raise up to $2.1 billion from its Hong Kong initial public offering, Reuters reported yesterday, citing sources.

Evergrande, which has land bank reserves in 22 Chinese cities, kicked off a marketing roadshow for its IPO yesterday. It is offering 2.96 billion shares, comprising 2.85 billion new shares, with a price range of HK$3.5-HK$5.6 each, the report said.

Goldman Sachs, Credit Suisse and Merrill Lynch are sponsoring the deal.

MARKET

Loss reported

Gushan Environmental Energy Ltd, China's largest biodiesel producer, reported a fourth-quarter loss on higher spending for research and labor.

The net loss was $2.72 million, or 4 US cents for each American depositary receipt, compared with a profit of $6.64 million, or 10 US cents, a year earlier, the company said in a statement.

The cost of sales jumped 37 percent to $21 million because of higher production volumes and labor and transportation costs. The company increased its research and development spending by 44 percent.

Offer price

Honghua Group Ltd, the world's second largest maker of onshore oil rigs, set the offer price in a Hong Kong initial public offering at HK$3.83 a share.

The Chengdu-based company said net proceeds from the share sale will be about HK$2.97 billion, according to a statement to the Hong Kong stock exchange yesterday.

BIZ MOVES

Chief executive

Chinese digital media company Focus Media Holding Ltd has promoted former president Tan Zhi to the post of chief executive.

Tan succeeds Jason Jiang, who will remain executive chairman and continue to be responsible for the company's Internet advertising, mobile handset advertising and new media opportunities.

Prior to joining Focus Media, Tan served as chief executive of Framedia, a residential poster frame advertising business, from 2004 to 2005.

Goldman China

Goldman Sachs Group Inc named Cai Jinyong, an eight-year veteran of the firm, as chief executive of its Chinese securities joint venture and head of Goldman's China investment banking business.

Cai, who joined Goldman Sachs in 2000, was named a managing director in 2001 and a partner in 2006. He earned a doctorate degree in economics from Boston University and was formerly with China International Capital Corp.

At Goldman, he specialized in privatizations, financing deals and mergers and acquisitions in China, particularly in the natural resources industry.

Regent director

Deborah English has been appointed the new director of marketing and sales at The Regent Shanghai.

English has more than 20 years of hospitality experience in sales and marketing expertise from international hotel brands. She has worked in numerous multinational five-star and luxury hotel groups in Canada, Asia and Australia, including Accor, Le Meridien and Four Seasons. From 1992 to 1998, she was director of marketing and sales at Four Seasons and Regent Hotels in Toronto and Kuala Lumpur.

BIZ UNUSUAL

DIY workshop

When she found out there are few venues in Chongqing where parents can spend quality time with their children, Chen Hong started a DIY workshop where people can enjoy themselves making handicrafts such as toys, pottery and candles.

After Chen realized that many of her customers come regularly to the workshop, she started a membership system, with fees ranging from 100 yuan to 300 yuan. There are more than 100 members at the workshop now.

Diet restaurant

A restaurant catering to those on a diet? Yes, that's what this eatery in Taiyuan promises. All items in this special restaurant are low on calories and fat, but not on taste. The restaurant also provides free consulting services offering magic recipes to those who want to lose weight.

As the health fad's caught on, so has the restaurant, which makes an annual profit of more than 200,000 yuan.

Sweet potato

More and more farmers in Guangxi are growing mini sweet potatoes as the price has continued to rise for three years. With a soft and sweet taste, the tuber is popular among urban residents.

Mao Caiyou, a farmer who grows sweet potatoes, said his products have been booked out by dealers in Shanghai and Hangzhou even before the harvest. He earned 350,000 yuan last year.

LOCAL

HK jewelry exports

Jewelry exports in Hong Kong, the world's fourth largest fine jewelry exporter, have grown 17 percent in 2007, according to Hong Kong Trade Development Council's Jewelry Advisory Committee.

Hong Kong jewelry exports jumped to $4.3 billion in 2007, said Charles Chan, chairman of the committee.

The US, the UK and Switzerland are the major markets for Hong Kong's jewelry exports, with market shares of 44.6 percent, 23.5 percent and 7.6 percent respectively in January-November 2007.

Xinjiang plan

Xinjiang Production and Construction Corps is planning to connect two existing shelter forest systems at the Gurbantunggut Desert in the Junggar Basin of northern Xinjiang, and the expansion of the Taklimakan Desert in the Tarim Basin in the south of the region.

Once completed, it will form a 1,000-km long and 1-2-km wide green belt.

It is also going to build shelterbelts along rail tracks and roads.

Green drive

An energy-saving and emissions reduction campaign has been launched for the retail sector in Henan province, according to the provincial department of commerce.

Retail enterprises will be asked to simplify packaging and save energy at the markets and department stores, hoping to reduce the amount of energy consumption per unit of GDP by 4 percent year-on-year.

The campaign will also extend to catering and lodging businesses in the province.

(China Daily 03/07/2008 page15)